A survey was conducted to analyse the brand BMW and the companies branding strategy. The survez indicated the following: Since the functional luxury market’s traditional male domination is lessening, the target market for BMW consists of both genders. Citizenship or ethnicity is unimportant. As an exporter, BMW goal is to appeal to all people regardless of ethnicity. BMW believes the positive associations (country of origin) for their brand assist them in their export markets. The survey results indicate that the BMW message is reaching their target market. Of the survey respondents, more then two thirds recalled BMW as a luxury car, nearly all recalled BMW as a foreign car, and all respondents recognized the BMW name.
BMW produces models targeting the singles market as well as models for families. The survey data indicates the attributes relating to associations with the singles market to be far weaker then those focused on the family market. BMW realizes that their target market’s financial status requires them to focus on a more educated customer, one that has completed college, and survey results confirm their success. The price segmentation BMW chooses limits its target market to individuals at higher levels of income. The market segmentation requires income levels corresponding to educated individuals and professionals. Professions of survey participants included managers and other professional’s BMW targets.
The survey also indicated respondents not targeted by BMW are interested their products. This is a result of BMW’s association as a status symbol. Our survey resulted in a score of 4.1 and 4.6 (5 maximum possible) when participants were asked to indicate agreement with the words ‘prestigious car’ and ‘status symbol’, respectively. Some of those not targeted yet interested in BMW could move into the target market through graduation from college or increasing levels of corporate responsibility.
Table of Contents
Introduction
General
Survey
Target Market
Brand Positioning
Tools
Brand Elements
Secondary Associations
Current Marketing Program
New Marketing Approaches
Product
Price
Place
Promotion
Effects of Current Marketing Program
Implementing Branding Strategies
Brand-Product Matrix
Brand Hierarchy
Knowledge Structure
Brand Awareness
Brand Image
Brand Outcomes
Suggestions and Recommendations
Research Objectives and Focus
The primary objective of this study is to conduct a comprehensive brand audit of BMW to evaluate its current brand equity, market positioning, and the effectiveness of its marketing communication strategies. The research explores how BMW maintains its status as a "Ultimate Driving Machine" while navigating luxury market competition and adapting to shifting consumer demographics.
- Analysis of BMW’s brand positioning and pricing strategy.
- Evaluation of the effectiveness of BMW's brand elements and marketing programs.
- Investigation of consumer knowledge structures and brand loyalty.
- Development of strategic recommendations for future growth and market reach.
Excerpt from the Book
Brand Elements
BMW utilizes most of the brand elements in building its brand image. Assessment of the brand elements that helped BMW build brand equity revealed that the name is simple and easy to remember. Although very few in our survey new what BMW meant, all recognized the name BMW, and over eighty percent recalled they were in the luxury car market. The BMW logo is simple with blue and white background colors (which are the colors of the Bavarian flag). The slogan is the most important element due to its relevance. None of the survey questions allow us to quantitatively judge the effectiveness of the logo or slogan. In the strict context, packaging as a brand element doesn’t apply to cars since they are not sold with any extraneous protective or packaging material. A case can be made many consider the automotive body as a form of packaging surrounding occupants. As packaging, the body is also important since looks are quite important to consumers in this market. The survey results indicate brand judgments based on packaging to be in agreement with some terms such as stylish looking, but weaker on more youthful terms such as sexy and magnificent.
Summary of Chapters
Introduction: Provides a general overview of BMW as a global luxury automotive manufacturer and defines the scope of the target market analysis.
Tools: Examines the specific brand elements, such as the logo and slogan, and analyzes how secondary associations influence brand equity.
Current Marketing Program: Details BMW's innovative marketing strategies, including experimental and one-to-one marketing, and assesses the impact of their promotional activities.
Implementing Branding Strategies: Discusses the brand-product matrix and the BMW brand hierarchy, explaining how the company manages its diverse portfolio.
Knowledge Structure: Analyzes the consumer brand awareness and brand image based on survey data, highlighting perceptions of reliability and luxury.
Brand Outcomes: Evaluates the consequences of BMW's brand strategy, specifically focusing on customer loyalty and the potential for increased margins.
Suggestions and Recommendations: Proposes strategic adjustments, including the potential for hybrid vehicle integration and more targeted marketing towards female demographics.
Keywords
BMW, Brand Audit, Brand Equity, Luxury Car, Marketing Strategy, Brand Positioning, Consumer Awareness, Brand Loyalty, Automotive Industry, Brand Hierarchy, Brand Elements, Experimental Marketing, Product Differentiation.
Frequently Asked Questions
What is the core purpose of this brand audit?
The work aims to assess the strength and equity of the BMW brand through a systematic analysis of its marketing programs, consumer perceptions, and market position relative to competitors.
Which key thematic areas are covered in the report?
The analysis spans brand elements, current marketing programs, brand-product matrices, brand hierarchy, consumer knowledge structures, and strategic recommendations for improvement.
What is the primary research goal?
The primary goal is to determine how effective BMW’s brand image and marketing communications are in maintaining its status as a premium luxury car manufacturer while reaching its specific target audience.
Which scientific method is utilized in the study?
The study employs a primary research method consisting of a survey conducted with 25 respondents, complemented by a qualitative analysis of BMW’s branding strategies and marketing collateral.
What topics does the main body explore?
The main body investigates the effectiveness of BMW's "Ultimate Driving Machine" messaging, the impact of non-traditional media, and the strategic implications of brand extensions.
What defining keywords characterize this research?
Key terms include brand equity, brand positioning, customer loyalty, luxury market segment, and strategic brand management.
How does BMW manage its brand hierarchy across different series?
The study notes that BMW uses a family branding approach, where the corporate brand (BMW) is central, and specific series (e.g., 3-series, 5-series) are positioned according to price and demographic segmentations.
What are the primary recommendations regarding BMW's future marketing?
The author suggests expanding product offerings to include hybrid vehicles, targeting female demographics more aggressively, and potentially divesting motorcycle operations into a separate brand to improve focus.
- Quote paper
- Marion Maguire (Author), 2004, BMW Brand Audit, Munich, GRIN Verlag, https://www.grin.com/document/35478
