Fair competition: WIPO-US Advanced Summer School on Trademarks Group # 2: Branding Coordinator: Ms. Deli Yang
BMW (Bavarian Motor Works) was founded in 1917 by Franz Josef Popp.After the end of World War I in 1918, BMW was the aircraft engine producer.The BMW Group is now one of the ten largest car manufacturers in the world with its BMW, MINI and Rolls-Royce brands.The BMW Group is the only manufacturer of automobiles and motorcycles worldwide that concentrates entirely on premium standards and outstanding quality for all its brands and across all relevant segments.
AUDI AG is able to look back on an exciting and varied past – It all began with August Horch, one of Germanys pioneering personalities automobile engineers.He set up business on his own in 1899, establishing Horch & Cie. Motorwagen Werke in Cologne on November 14 of that year. Horch moved to Saxony in 1902, first to Reichenbach then in 1904 to Zwickau, where the company was transformed into a joint-stock corporation.Following differences of opinion with the Board of Management and Supervisory Board, August Horch left the company in 1909 and immediately established a second car company in Zwickau. Because his surname was already in use and was protected by trademark, he chose its Latin translation for the new company. So "horch!" – or "hark" – became "audi!". Audi Automobilwerke GmbH itself became a joint-stock company in December 1914.The Audi brand established a tradition of sporting achievement from the very outset. Thanks to his victorious involvement in the Austrian Alpine Runs between 1911 and 1914, August Horch succeeded in making Audi internationally known within just a few years. After the First World War August Horch withdrew from the company and moved to Berlin to work as an independent automotive expert.
Similarities in BMW and AUDI business strategies Premium segment brands Well known trademarks Pricing diversity Top-rated companies Target consumers – high-level social status Big, structured businesses No licensing or franchising options Innovative Universality (contemporary/classic, city/highway, bachelors/families)
Mission statement:The mission statement up to the year 2020 is clearly defined:the BMW Group is the worlds leading provider of premium products andpremium services for individual mobilityBMW Commercial
Target consumersBMW AUDI25-40, Young adults, city-dwellers Adults, mostly city-dwellersBachelors, families with 1 or 2 children Bachelors, families with 1 or 2 childrenCEOs, new generation of self-made people Executives, professionalsComfort lovers, innovation savvy Sophisticated, design & style addicts, tech savvySelf-driving consumers Self-driving consumers / with drivers
Direct competitorsBMW AUDIMercedes BMWAUDI MercedesPorsche Acura Infinity
Key differences (according to the self-brand positioning)BMW AUDIFuel efficient ComfortBetter engines SophisticationDriving-dynamics Better accident-prevention systemYouth-oriented design Conservative and professional Model and pricing diversity
Key differences (Media&Marketing campains)* *http://adage.com/article/media/advertising-bmw-audi-media-plan/145990/BMW AUDISponsoring events (Olympic Games - 2012) Product Placement (Iron Man-2, Knight &Day)Online and mobile medias Broadcast, online and mobile video programsMagazines Video placements on major sports events (SuperBowl)Online& Social ads Comparative advertisingCreative concern Buzz-advertising
Brands mantrasBMW AUDI"Cheer driving pleasure Advantage through TechnologyJoy of driving Truth in EngineeringThe Ultimate Driving Machine Truth in MotionCultural insight Green Police
(Focus on Korea luxury car market)
[Korean Luxury Car Market] Genesis Kia BMW AUDI Hyundai K9 BMW528i(3.0l) AUDI A6Compare Main Reasonable Reasonable TECH-ORIENTED SOPHISTACEDConsume Target consumer consumer CONSUMERS CONSUMERSrs age Middle and old Middle and old age 25-34 years old 18% Young- professional age people people 45-54 years old 69% people Gender Man Man 38%-42% are - women Similarities Function, Size, target consumerDiffere Slogan New Thinking, The power to Sheer for driving Lead of technologynces New possibilities surprise price $43,358 $54,166 $57,000 $57,333 Post sale Convenient Convenient Expensive to fix, Expensive to fix service Post sale service Post sale service Not convenient Not convenient Post sale service Post sale service Brand Middle upper Middle upper High High Value
Strong high-end focus Pricing diversification Model portfolio diversification Continuing focus on luxury, the exclusiveness among brand-aware Koreans. Further positioning through innovative and new channels
Tineke Van HoeyVivian SilvaJosé Roberto de Almeida Jr.Pandit RommelDwi ElfridaMario PozziMinkuy KimAiden Ung ChoiAnders KarlssonMelanie JezlerOlga FrolovaTetiana Romat WIPO-US Advanced Summer School on Trademarks Group # 2: Branding Coordinator: Ms. Deli Yang