BMW and Audi are premium German automobile brands with similar business strategies. Both focus on premium quality vehicles across their model lines. They target high-income consumers seeking luxury, technology, and driving performance. While their target demographics and brand images are largely similar, BMW focuses more on driving dynamics while Audi emphasizes comfort and technology. Their direct competitors include each other and Mercedes. Both have well-established brands and concentrate entirely on their premium segments without licensing to other companies.

1. Fair competition:
WIPO-US Advanced Summer School on Trademarks
Group # 2: Branding
Coordinator: Ms. Deli Yang

3. 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.

4. AUDI AG is able to look back on an exciting and varied past – It all began with August
Horch, one of Germany's 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.

5. 1.
2.

6. 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)

7. Mission statement:
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
BMW Commercial

9. Target consumers
BMW AUDI
25-40, Young adults, city-dwellers Adults, mostly city-dwellers
Bachelors, families with 1 or 2 children Bachelors, families with 1 or 2 children
CEOs, new generation of self-made people Executives, professionals
Comfort lovers, innovation savvy Sophisticated, design & style addicts, tech
savvy
Self-driving consumers Self-driving consumers / with drivers

10. Direct competitors
BMW AUDI
Mercedes BMW
AUDI Mercedes
Porsche Acura
Infinity

11. Key differences (according to the self-brand positioning)
BMW AUDI
Fuel efficient Comfort
Better engines Sophistication
Driving-dynamics Better accident-prevention system
Youth-oriented design Conservative and professional
Model and pricing diversity

12. Consumer’s perception
BMW AUDI
Powerful Reliable
Innovative Stable
Driving-dynamics Comfort
Secure Secure
Reliable Reliable

13. Key differences (Media&Marketing campains)*
*http://adage.com/article/media/advertising-bmw-audi-media-plan/145990/
BMW AUDI
Sponsoring events (Olympic Games - 2012) Product Placement (Iron Man-2, Knight &Day)
Online and mobile medias
Broadcast, online and mobile video programs
Magazines Video placements on major sports events
(SuperBowl)
Online& Social ads Comparative advertising
Creative concern Buzz-advertising

14. Brands mantras
BMW AUDI
"Cheer driving pleasure Advantage through Technology
Joy of driving Truth in Engineering
The Ultimate Driving Machine Truth in Motion
Cultural insight Green Police

15. (Focus on Korea luxury car market)

16. [Korean Luxury Car Market]
Genesis Kia BMW AUDI
Hyundai K9 BMW528i(3.0l) AUDI A6
Compare Main Reasonable Reasonable TECH-ORIENTED SOPHISTACED
Consume Target consumer consumer CONSUMERS CONSUMERS
rs
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 consumer
Differe Slogan New Thinking, The power to Sheer for driving Lead of technology
nces 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

17.  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

18. Tineke Van Hoey
Vivian Silva
José Roberto de Almeida Jr.
Pandit Rommel
Dwi Elfrida
Mario Pozzi
Minkuy Kim
Aiden Ung Choi
Anders Karlsson
Melanie Jezler
Olga Frolova
Tetiana Romat
WIPO-US Advanced Summer School on Trademarks
Group # 2: Branding
Coordinator: Ms. Deli Yang