Bmw : Redefining Premium Brand

When a certain point is reached regarding a company’s success, a set of different opportunities arise and partnerships may unfold. However, with every possible strategy available, risks and benefits also come into play; without discarding any of them beforehand, every option is a strong candidate until a final decision is made. In this case study we will analyze the current business strategy pertaining

Discuss the strategic decisions that firms in this sector may be facing. What future strategies can firms pursue to try to secure their competitive advantage and long term survival?

Q.1 What are the causes and consequences of BMW’s quality problems with newly launched products? What should be done to improve “launch quality”? (583 words)

The branded product at the heart of the SLP is the Ford Mustang. The Mustang was first introduced in 1964 and has become one of Ford's most iconic brands (Damian, 2006). Automobiles in general are a good subject for the study of branding because the car itself changes every year, but the brand does not. Over time, specific brands become associated with particular attributes, in terms of product category, positioning, price, and in the case of cars their styling, design and the lifestyle attributes that are associated with that vehicle. The Mustang has gone through roughly five iterations, and is currently in its fifth generation (Markus, 2010).

Mercedes-Benz operates on the differentiation strategy. Luxury, prestige and technological innovations drive the company 's production from the high quality small cars and e-bikes of the smart brand, to the premium automobiles of the global corporation.

|the industry and its challenges it is important to understand its various phases of growth so far. |

BMW begins its long history, which stretches for almost a hundred years, in Germany. BMW had a major impact on the manufacturing of cars. Rapp needed a financial backer to do this and in 1916 he renamed the Bayerische Motoren Werke (Bavarian Motor Works). After a financial problem with the company Rapp left. When Rapp left the company Franz Josef Popp took over. He set up BMW as we know it today("BMW Early History ).

This Case study is intended to provide strategic analysis for Emaar properties and providing it with

BMW Group is one of the largest and most successful multi-brand automobile manufacturers in the world, headquartered in Munich, Germany. Just like many other

Bayerische Moteren Werke AG (Bavarian Motor Works), or BMW, is a German luxury vehicle, motorcycle, and engine manufacturing company founded in 1916. The company has its headquarter in Germany, but also has an American facility in Spartanburg, South Carolina. In addition, BMW is celebrating its 100-year anniversary this year. Being in the automotive industry, one would be surprised at how a company values sustainability, especially when it focuses on the interrelationship between the triple bottom line. However, the BMW Group has been named the world’s most sustainable automotive company again by the Dow Jones Sustainability Indexes (DJSI). The head of Sustainability and Environmental Protection, Ursula Mathar, stated, “For us, sustainability is an important part of our identity and our strategy. We have accomplished a great deal in recent years and continue to set ourselves concrete goals for the future … This shows that our activities continue to have an impact and we are on the right track” (The BMW Group). This company defines its sustainable operations by taking social and environmental responsibility for everything they do. The BMW Group has extensive initiatives that affect the planet by reducing its carbon footprint, their profits by effectively utilizing renewable resources, and their people by providing diverse opportunities and protecting self-wellbeing.

The first four steps in the marketing process involve building customer relationships. The final step involves capturing value in return

BMW marketing veers towards standardization rather than towards adaptation although it has a combination of both. The aesthetics for instance on its websites and the rest of its marketing mix are similar on all its material reflecting standardization. The classic design accords with the image of the company and does not differentiate according to specific country. So, for instance, users switching from the Taiwanese website to the American one will find the same design. The dominant colors of BMW, too - blue, black, silver and grey- remained the same regardless of country, and the pictures are the same too

"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world 's leading provider of premium products and premium services for individual mobility."

Initially, the company distributed free cases to college students across the country in an attempt to get their product in the hands of its consumers. This campaign became very successful and rapid proliferation of sales became the norm. The company continued to tailor their advertising to appeal to their target audience by sponsoring extreme sports, events, teams, and athletes. They sponsor athletes in the BMX, skiing, rally car, MLS Soccer, and many other sports industries (Red Bull). By sponsoring athletes such as Travis Pastrana and Shaun White, their “double bull” logo is never out of the spotlight, and constantly seen by the consumer.

However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.