Measuring Brands' Viewpoint of a worldwide automotive industry leader'

1
Measuring Brands.Viewpoint of a worldwide
automotive industry leader.

2
Agenda.

• The BMW Group Brand Strategy.
• Brand Monitor.

3
The BMW Brand Starting Point.The white-and-blue
logo as trademark.

• Registration of the white-and-blue logo as the
  Company's official trademark. Production of the
  first aircraft engine the BMW IIIa power unit.

4
Consistent Brand Representation. Ongoing
Development of the Brand.

• The BMW 303 combines two traditional features
  essential to BMW to this very day
• The double kidney grille so typical of the marque
  and the straight-six power unit
• within the engine bay.

5
Consistent Brand Representation.Worldwide
consistent and authentic local representation of
the brands at the dealership.
6
BMW Group multi-brand strategy.Clear and
authentic brands.
Rolls-Royce Positioning for traditional value
worldLegend, Tradition, Dignity, Preservation
of values.
BMW Positioning for traditional and modern value
worldsStatus symbol, Polarising exclusivity,
Success-oriented, Timeless and elegant.
MINI Positioning for modern and postmodern value
worldsLifestyle object, Classless acceptance,
Joie de vivre, Trendy and chic.
7
Produktportfolio
Expansion of the Product Portfolio.Brands help
to cover this expansion.
Segment Saloon Coupé
Touring Convertible Roadster
Off-Road Van MPV
Super Luxury
Luxury
Upper Midrange
Midrange
Compact
Small
Micro
8
MINI.Re-introducing the original.

• Retaining the charm and compact dimensions of the
  classic Mini and at the same time achieving the
  latest standards in safety, driving dynamics,
  flexibility and customisation this was the
  challenge to the designers and engineers
  responsible for the MINI.

9
Concentration on Premium Segments.Polarisation
of demand.

Premium segments
Premium segments
Price
Price
Base segments
Base segments
traditionalmarket structure
todaysmarket structure
10
Concentration on Premium Segments.Premium and
base brands grow (G6 markets).
100 1990
MINI
271
PORSCHE
108
MERCEDES-BENZ
84
76
BMW
64
AUDI
SAAB
39
VW
15
RENAULT
15
12
VOLVO
-3
PEUGEOT
OPEL/VAUXHALL
-12
FORD
-15
Stuck in the Middle
FIAT
-43
MAZDA
-18
NISSAN
-11
CHEVROLET
-10
SEAT
-1
MITSUBISHI
8
TOYOTA
18
30
CITROEN
DAIHATSU
43
93
SUZUKI
260
HYUNDAI
Quelle Global Insight 2004, data basis 2003 D,
F, GB, I, J and USA
834
SKODA
11
Brand Positioning by Social Milieus. The social
milieus in Europe in 2004.
traditional
postmodern
modern
Value orientation
12
Distinctive target group positioning. Growth
through clearly defined customer focus.
high
Upper Conservative
Upper Liberal
Postmodern
Socio Critical
Social Climber
Traditional Mainstream
ConventionalModern Mainstream
ProgressiveModern Mainstream
Social Status
CounterCulture
Tradi-tional Rural
Underprivileged
low
traditional
postmodern
modern
Value orientation
13
The Brand is the Basis for Marketing.Brand
Identity Model for BMW, MINIand Rolls-Royce.
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Agenda.

• The BMW Group Brand Strategy.
• Brand Monitor.

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Brand identity Brand image.
BRAND IDENTITY(Ideal perception) How we would
wish the brand to be perceived
BRAND IMAGE(Actual perception) How the brand is
currently perceived
? defined by the brand strategy
? measured by image research
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The brand monitor depicts the buying decision
process through to purchase.
Sources
Buying decision process
Brand awareness
Brand Monitor
Perception of the brand and product
characteristics
Relevance of the brand and product characteristics
Preference
Car purchase
OtherStudies
Customer satisfaction
Loyalty
17
Unaided Brand Awareness.Competitors.
Unaided Brand Awareness
Top of Mind
18
The brands of the BMW Group.Fulfilment of brand
identity.
Facet 2
þ
Facet 3
Facet 1
p
p
Value 1
þ
Facet 9
Facet 4
þ
þ
þ
Core
Value 3
Value 2
Facet 8
Facet 5
þ
þ
þ
p
Facet 6
Facet 7
þ
þ
ý
better
worse
equal
p
19
Brand Strength.Brand Strength contains eight
items.
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Relevance Studies.Relevance of Brand and Product
Characteristics.
21
Brand Affinity.Awareness, Image and First Choice.
22
Strategic Impact on Brand Development.Increasing
Brand Strength based on Knowers or Considerers.
100
UKL Segment
x
Brand Knowers
Brand Strength
ý
Considerers
y
Brand Strength
þ
FirstChoice
z
23
Impact of Brand Research on Communication.Differe
nces between Image and Satisfaction.
Image
Customer Satisfaction
Gap
ý
Image Item X
Car Attribute X
24
Brands, Products, Customers and Markets.Thank
you for your attention.
25
What is a brand?More than a name plus logo plus
product.
consumer need forfunctional benefit
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The MINI Family.

• Currently four models (MINI One, MINI Cooper,
  MINI Cooper Convertible and
• MINI Cooper S) are in production.

MINI Cooper Convertible
MINI Cooper
MINI One
MINI Cooper S
Tradition
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Strong brands are important for BMW
GroupRelevance of brands.
Strong brands differentiate from
competition. Strong brands are desirable and
createcustomer loyalty. Strong brands allow a
premium price and thus increase the contribution
margin. Strong brands are less sensitive to
economic cycles. Strong brands have a high
financial value.
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as well as for the customer.Relevance of
brands.
Strong brands give orientation. Strong brands
create confidence. Strong brands support self
expression. Strong brands create a sense of
belonging together.
29
Concentration on Premium Segments. Polarisation
of demand in many industries (examples).
cars
hotels
groceries
30
Concentration on Premium Segments.What means
premium in the car industry?

• Price premium due to
• differentiation concerning
• product substance
• innovations
• production quality
• brand image
• sales network
• service

Premium segments
Base segments
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Concentration on premium segments. Strong growth
perspective.
48
Premium segments
36
Basis segments
world passengercar market
2003
2015
The premium segments have higher long-termgrowth
rates.
Strategic market forecast, Global Insight
32
Distinctive target group positioning. Growth
through brand stretching?
Upper Conservative
Upper Liberal
Postmodern
Socio Critical
Social Climber
Traditional Mainstream
ConventionalModern Mainstream
ProgressiveModern Mainstream
Traditional Working Class
CounterCulture
Tradi-tional Rural
Underprivileged
traditional
postmodern
modern
Value orientation
33
Relevance Studies.Relevance of Brand and Product
Characteristics.
This is a car model (which) ....
Brand Strength Item 1
Brand Strength Item 2
Success Factor 1
Brand Strength Item 3
Brand Strength min1, max 5
Success Factor 2
Brand Strength Item 4
Success Factor 3
Brand Strength Item 5
Brand Strength Item 6
Success Factor 4
Brand Strength Item 7
Success Factor 5
Brand Strength Item 8
. . .