BMW Case Study V13


BMW (Bavarian Motor Works) is an independent German automobile manufacturer founded in 1913.

Initially, it concentrated on the development and production of the aircraft engines but later; it changed its

business strategy and entered into the new era of the automobile industry. BMW is a worldwide

manufacturer of high performance and luxury automobiles and motorcycles and is the parent organization

of MINI and Rolls Royce car brands. Along with its automotive concerns, the BMW group's activities

comprise the development, production, and marketing of motorcycles, as well as comprehensive financial

services for private and business customers. The BMW logo is now ranked among the top ten of the world’s

most recognized commercial logos and is an iconic symbol in its own right. The original design, in its

simplicity and symbolism, has stood the test of time.

BMW is not only selling automobiles to its customers; but also dreams and hopes to distinguish themselves

from the others. Owning a BMW is considered a status symbol since the organization is a class apart. The

BMW organization is a perfect example of emotional branding; it believes that an automobile’s brand has to

do a lot of things to offer than just the car. For example, the brand exhibits technology, sportiness,

innovation, and style. On the other hand; Rolls Royce signifies luxury with elegance and style. Many of their

customers admit that they don’t get the same performance and safety from any other car organization, also;

driving a BMW makes them feel younger from inside.

In a press conference; one of the board members; Helmet Panke advocated this strategy saying “We offer our

customers emotional products which through the strength of the brand and the substance of the product

fulfill the customers wish for individualization and differentiation. The BMW group will never build boring


According to BMW; it never creates cars for individuals; neither does it try to fulfill all the needs of each and

every customer; what BMW does is; that it generates an idea of the status of owning a BMW differentiates

that it is built for the customer’s own comfort, design, and security which creates a special bond between

BMW and its customers. It is this strong feeling associated with driving a BMW that car lovers find it

extremely difficult to switch to a different brand after driving a BMW machine. Brands like Mercedes have

been associated with luxury, quality and precision engineering. BMW has gone a step ahead and established

itself as a brand associated with the above-mentioned qualities; all packed into a power-packed vehicle full

of performance.

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. It

is the only multi-brand automaker that utilizes a pure, premium brand strategy. The objective of this

strategy is to generate higher income per vehicle on the basis of products with a high intrinsic value and a

strong brand image.

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