BMW Brand Audit

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Presentation for a group assignment when completing my masters at the University of Queensland.

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  • people think they know how to drive, so they always ignore the directions, so we using one on one driving instructors to learn more special points about BMW.
  • To improve the BMW ’ s performance and durability, we will hold the long way around compaign, to make a reality TV about BMW car trip around the world. Co-operate with the best reality TV editor-
  • Because BMW already become the police car in a number of countries, We also will make the documentary of the BMW police to show the durability and excellent performance of BMW.
  • To appeal female consumers we will launch the print ad BMW In Bloom at the high end fashion magezines like vogue , o magazine, to build the BMW is important identity for females like your harme ’ s
  • BMW Brand Audit

    1. 1. <ul><ul><ul><ul><li>Presentation slides designed by Lindsey Sun </li></ul></ul></ul></ul><ul><ul><ul><ul><li>3 June 2010 </li></ul></ul></ul></ul>
    2. 2. Before we start… Will multi-segment strategy hurt a luxury brand’s image and customer loyalty in the long run?
    3. 3. Contents of Presentation Recommendations for Brand Strategy Issues and Problems A Health Check on BMW Current Brand Strategy BMW Brand Inventory
    4. 4. BMW Group <ul><li>All brands under BMW </li></ul>Focus of our brand audit BMW-Brand Motorcycle Rolls Royce CAR MINI CAR BMW-Brand CAR
    5. 5. Brand Inventory <ul><li>Brand Name: BMW </li></ul><ul><li>Brand Slogan: </li></ul><ul><li>‘ The Ultimate Driving Machine’ </li></ul><ul><li>(USA, Australia, UK) </li></ul><ul><li>‘ Sheer Driving Pleasure ’ </li></ul><ul><li>(International official website and many other counties) </li></ul><ul><ul><li>It is the 15 th top brand in the world in terms of brand equity, according to BusinessWeek (2009). </li></ul></ul><ul><ul><li>Luxury Institute : BMW is ‘the most admired car company in the world’. </li></ul></ul>
    6. 6. Brand Inventory <ul><li>BMW car models at a glance </li></ul><ul><li>BMW AG is the best automaker for adopting innovations into vehicles </li></ul><ul><li> - 2009 J.D. Power and Associates </li></ul>
    7. 7. Current Brand Strategy <ul><li>Major competitors </li></ul>Overall brand position: Luxury performance car Performance Design & Style Innovation Luxury High quality Social status Point of difference Point of parity Mercedez-Benz Audi
    8. 8. <ul><li>The BMW “Joy” Campagin </li></ul><ul><ul><li>The core message of BMW’s current brand strategy is “ joy ”, which is the centre of its worldwide marketing campaign. </li></ul></ul>Current Brand Strategy
    9. 9. Current Brand Strategy <ul><li>The BMW “Joy” Campaign </li></ul><ul><ul><li>Link “joy” with BMW brand/product attributes </li></ul></ul><ul><ul><li>Appeal to multi-segments </li></ul></ul>“ Joy” covers: car performance; reliability; driving pleasure; fuel efficiency; new models etc. Family; senior; women; young
    10. 10. Current Brand Strategy <ul><li>Current strategy reflects on CBBE model </li></ul>Keller (2008): Customer-Based Brand Equity Model (CBBE) Marketing through various advertisement media Appeal to both genders; senior & young Driving pleasure “Joy follows heart” Encourage family use; commute (company car) Car performance:”Joy is rewarding” New designs “Joy is the new X1…” Ad image of family caregiver; joygiver “ Joy wants to be tested”
    11. 11. Current Brand Strategy <ul><li>Performance of current brand strategy </li></ul><ul><ul><li>According to BMW 2009 Group Management Report, </li></ul></ul><ul><ul><li>“… the new (‘joy’) campaign’s messages are being well received and enriching the image of the BMW brand.” </li></ul></ul>We will prove if the statement tells the whole story, and if not, we will find out what needs to be improved.
    12. 12. A Health Check on BMW Brand 1 <ul><li>Brand Salience </li></ul><ul><li>Brand Image </li></ul><ul><li>Brand Performance </li></ul><ul><li>Brand Judgment </li></ul><ul><li>Brand Feelings </li></ul><ul><li>Brand Resonance </li></ul><ul><li>Based on Keller (2008)’s </li></ul><ul><li>CBBE model </li></ul>2 <ul><li>Assess consumer perceptions of BMW’s current marketing program </li></ul><ul><li>Brand Elements </li></ul><ul><li>Brand Advertising </li></ul>
    13. 13. A Health Check on BMW Brand <ul><li>Brand Salience </li></ul><ul><ul><li>Depth of brand awareness </li></ul></ul>BMW has got top-of-mind brand awareness in car category BMW is ranked at top place in consumers’ consideration set Category brand awareness Purchase consideration
    14. 14. A Health Check on BMW Brand <ul><li>Brand Salience </li></ul><ul><ul><li>Breadth of brand awareness (BMW brand awareness in various car usage situations) </li></ul></ul>ranking ranking ranking ranking Commuting Familiy outing Friends get-together Upper-class occasions BMW Brand awareness in family usage is low.
    15. 15. A Health Check on BMW Brand <ul><li>Brand Image </li></ul>1 3 5 Expensive Social status Sports car Style & design Luxury -‘ Performance ’ didn’t make it to top 5. Core Brand Associations 4 2
    16. 16. A Health Check on BMW Brand <ul><li>Brand Image </li></ul><ul><ul><li>User profile (Image of BMW owner in mind of respondents) </li></ul></ul><ul><ul><ul><li>30 to 50 years old (80.5%) </li></ul></ul></ul><ul><ul><ul><li>male (82.6%) </li></ul></ul></ul><ul><ul><ul><li>higher middle-class and high class (97.8%) </li></ul></ul></ul><ul><ul><ul><li>Like showing off, sophisticated, fashionable, sporty & aggressive </li></ul></ul></ul><ul><ul><li>Brand personality (If BMW comes alive as a person) </li></ul></ul><ul><ul><ul><li>20 to 40 years old (80.4%) </li></ul></ul></ul><ul><ul><ul><li>male (91.3%) </li></ul></ul></ul><ul><ul><ul><li>higher middle-class and high class (97.8%) </li></ul></ul></ul><ul><ul><ul><li>Fashionable; sophisticated, like showing off, sporty & aggressive </li></ul></ul></ul>BMW = man’s car? BMW = senior’s car?
    17. 17. A Health Check on BMW Brand <ul><li>Brand Performance and Judgement </li></ul><ul><ul><li>BMW’s ranking on top 5 most important attributes when consumers choose a car </li></ul></ul>Rankings on BMW’s performance and durability are far weaker than competitors. 3 = strongly agree -3 = strongly disagree
    18. 18. A Health Check on BMW Brand <ul><li>Brand Feelings </li></ul>Warmth, which associates to ‘caring’, ‘cozy’ and ‘family’, is the weakest feeling BMW gives to the consumers. social
    19. 19. A Health Check on BMW Brand <ul><li>Brand Resonance </li></ul><ul><ul><li>Fact: automobile market has very low customer loyalty in general, even when satisfaction with a brand is high (Kotler et al 2007). </li></ul></ul><ul><ul><ul><li>People like changing cars ! </li></ul></ul></ul><ul><ul><li>Our brand audit reveals that… </li></ul></ul><ul><ul><ul><li>“ Good previous brand experience ” and “ new and attractive model ”are ranked as the two strongest factors, that motivate a consumer to buy another car of the same brand . </li></ul></ul></ul>
    20. 20. A Health Check on BMW Brand Recommendation Intention 7.69 / 10 Overall Attitude 8.34 /10
    21. 21. A Health Check on BMW Brand <ul><li>Current Marketing Programs </li></ul><ul><ul><li>Brand name and logo (overall attitude: very positive) </li></ul></ul><ul><ul><li>Vast majoritiey of respondents strongly agree that brand name and logo are: easy to remember; conveys social status; prestigious; fun & exciting; sophisticated & trendy </li></ul></ul><ul><ul><li>Brand slogan </li></ul></ul><ul><ul><ul><li>“ The Ultimate Driving Machine ” </li></ul></ul></ul><ul><ul><ul><li>Powerful (82.2%) and masculine (77.3%) </li></ul></ul></ul><ul><ul><ul><li>“ Sheer Driving Pleasure ” </li></ul></ul></ul><ul><ul><ul><li>Powerful (68.9%) and appropriate for all genders (73.4%) </li></ul></ul></ul><ul><ul><ul><li>46.7% prefer the former, while 31.1% prefer the latter. </li></ul></ul></ul>The former slogan is more powerful; the latter is more appropriate for both genders and reflects on current “joy” campaign; attitudes towards the two slogans are not widely divided… we leave the slogans the way they are.
    22. 22. A Health Check on BMW <ul><li>Current Marketing Program </li></ul><ul><ul><li>The current BMW “ joy ” campaign </li></ul></ul><ul><ul><li>Our survey results show that… </li></ul></ul><ul><ul><ul><li>Perceptions on BMW ’ s family usage (being a ‘ caring brand ’ ) and appeal to senior have significantly improved after the audiences were exposed to a selection of promotional materials used in “ joy ” campaign. </li></ul></ul></ul><ul><ul><ul><li>Lack of emphasis on product performance and durability. </li></ul></ul></ul><ul><ul><ul><li>Appeals to women and young people remain weak . </li></ul></ul></ul><ul><ul><ul><li>The ‘ joy ’ message is well-received. </li></ul></ul></ul>
    23. 23. Problems and Issues <ul><li>Performance and durability </li></ul><ul><li>Appealing to women and young people </li></ul><ul><li>Low brand loyalty in car market </li></ul>Now we’ve got a list of problems…
    24. 24. Recommendations <ul><li>Performance </li></ul><ul><ul><li>1. Re-examine product performance and make improvements if necessary </li></ul></ul><ul><ul><li>2. ‘ Test Drive at Your Doorstep ’ </li></ul></ul><ul><ul><ul><li>‘ Bundling’ BMW performance centre with luxury hotels (Hyatt AU) </li></ul></ul></ul><ul><ul><ul><li>Hotel tenants get free test drive as a part of their travel experience </li></ul></ul></ul><ul><ul><li>Increase test drive booking by making it convenient and desirable, so more people get to experience BMW’s performance </li></ul></ul><ul><ul><li>Improve perceptions of BMW’s performance by using one-on-one driving instructors in all BMW test drives </li></ul></ul>
    25. 25. Recommendations <ul><li>Performance + Durability </li></ul><ul><ul><li>1. Re-examine product attributes and make improvements if necessary </li></ul></ul><ul><ul><li>2 . The‘ Long Way Around ’ campaign/competition </li></ul></ul><ul><li>( Idea originates from the documentary </li></ul><ul><li>“ Long way around”, where participants </li></ul><ul><li>riding a BMW motorcycle around the world.) </li></ul><ul><ul><li>Drive a BMW car around the world </li></ul></ul><ul><ul><li>Reality TV </li></ul></ul>
    26. 26. Recommendations <ul><li>Performance + Durability </li></ul><ul><ul><li>Documentary - ‘ The BMW Police ’. </li></ul></ul><ul><ul><ul><li>The documentary will feature BMW poilce cars used in a number of countries </li></ul></ul></ul><ul><ul><ul><li>Deomonstrate the performance and durability of BMW cars when helping local police chase and catch bad guys </li></ul></ul></ul><ul><li>Broadcasting media : </li></ul><ul><ul><li>TV, DVD (regionally) </li></ul></ul><ul><ul><li>& Internet (globally) </li></ul></ul>China Taiwan Germany Dubai Netherlands
    27. 27. Recommendations <ul><li>Appealing to women: </li></ul><ul><ul><li>Campaign message: ‘ BMW. In bloom .’ </li></ul></ul><ul><ul><li>Communication platform: High-end fashion magazines for women </li></ul></ul>
    28. 28. Recommendations <ul><li>Appealing to young people </li></ul><ul><ul><li>Campagin message: </li></ul></ul><ul><li>‘ Beyond the metal. BMW .’ </li></ul><ul><ul><li>Communication platforms: </li></ul></ul><ul><ul><li>Internet short films; online-gaming and yuppy magazines, all featuring </li></ul></ul><ul><ul><li>BMW transformers. </li></ul></ul>
    29. 29. Recommendations <ul><li>Customer loyalty </li></ul><ul><ul><li>Enhance brand experience by keeping promises. </li></ul></ul><ul><ul><li>Innovation: keep new and better car models coming! </li></ul></ul>And above all…
    30. 30. Hope this answers your question 1. Let’s clarify the problem first: appealing to multi-segments is NOT the opposite to being a prestigious and luxury brand. Because… The problem with the current “joy” campaign that potentially lowers its image (5% respondents mentioned it), is because it makes BMW look like it’s for EVERYONE . But BMW is not for everyone.The ‘multi-segments’ (family, female, young and senior) BMW targets at are still those among high income and social status. The challenge is how can BMW appeal to each segment skillfully so that it maintains its exclusivity to its existing customers. Will multi-segment targeting hurt BMW’s brand image and brand loyalty in the long run?
    31. 31. <ul><li>2. Strategic adjustment to communication theme and style </li></ul><ul><ul><li>Re-define the ‘ joy ’ in its current ‘ joy ’ campaign. </li></ul></ul><ul><ul><li>Make more tailored strategies for targeted segments using exclusive communication channels, instead of mass targeting like what it has been doing presently. </li></ul></ul><ul><ul><li>Promoting specific models to targeted segment: </li></ul></ul><ul><ul><ul><li>E.g. 1 Series for women, X series for familiy </li></ul></ul></ul>Solution Joy (for all) Joy of individual luxury
    32. 32. Solution <ul><li>3. Dare to make trade-offs </li></ul><ul><li>If two segments simply </li></ul><ul><li>can ’ t be targeted together, </li></ul><ul><li>keep the more lucrative </li></ul><ul><li>one. </li></ul>
    33. 33. Limitations and References <ul><li>Limitation </li></ul><ul><ul><li>The major limitation of our brand audit is the size and the composition of the sample . </li></ul></ul><ul><li>References </li></ul><ul><li>BusinessWeek 2009, The 100 top brands , BusinessWeek, viewed 15 May 2010, </li></ul><ul><li><http://images.businessweek.com/ss/06/07/top_brands/source/15.htm>. </li></ul><ul><li>BMW 2009, BMW group management report , BMW Group, viewed 10 May 2010, </li></ul><ul><li><http://www.bmwgroup.com>. </li></ul><ul><li>Keller, K & Lewi, G 2008, Strategic brand management: building, measuring and managing , New Jersey: Pearson Prentice Hall. </li></ul><ul><li>Kotler 2007, Marketing , Pearson, Australia </li></ul>
    34. 34. Thank You !

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