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Evaluation of the Effectiveness of BMW Branding Strategy in the UK Market

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Added on 2024/06/28

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This report evaluates the effectiveness of BMW's branding strategy in the UK market. It investigates the phenomenon of building the BMW brand through different generations, identifies factors that contributed to its solid brand despite poor advertising, analyzes its segmentation, targeting, and positioning in the UK market, and examines the methodology used to achieve greater economic success. The report concludes that BMW's strong brand image, quality products, and effective market strategies have contributed to its success in the UK.

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Evaluation of the Effectiveness of BMW
Branding Strategy in the UK Market

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Table of Contents
Introduction......................................................................................................................................3
Investigate the Phenomenon of Building the BMW Brand through Boomers, Gen X, Gen Y and
Gen Z............................................................................................................................................... 4
Identify the Factors that made BMW Company to build up a Solid Brand when the Advertising
was Poor...........................................................................................................................................5
Analyzing the BMW Segmentation, Targeting and Positioning in the UK Market........................6
The Main Methodology Used by BMW to Achieve Greater Economy of UK Market..................7
Conclusion....................................................................................................................................... 8
Reference......................................................................................................................................... 9

Introduction
In the vast market of globalization, the companies emerging need to have a strong base of
marketing and focus on the strategy of branding (Baumeister et al., 2015). Strategies are crucial
ways of determining the methods and techniques of sustainability of a company. A branding
strategy is essential for a company in order to sustain for a long period in the market. This
strategy is effective for a long time sustainability of the emerging company or for a well-
established company to thrive in the market to achieve higher goals of accomplishment (Keller,
2017). This report is regarding the evaluation of the effectiveness of BMW branding strategy in
the UK market. The report sheds variable information regarding the factors that made the
company of BMW to build a solid brand during its period of relatively poor advertising (Atwal
and Williams, 2017). The significant analysis regarding the segmentation, targeting and
positioning of the brand in the UK market has been provided, along with proper insight on the
company’s prime methodology to acquire greater economy in the UK market.
Company Background
The luxury automotive company Bayerische Motoren Werke AG was established on March 6,
1916 with it’s headquarter office situated at Munich, Germany. The automotive company has
been experienced in manufacturing different automotive segments of cars and motorcycle along
with off road vehicles that has extended the company status globally and internationally. The
multinational German company has mostly focused on manufacturing automotive vehicles,
which are of premium range (Kapferer, 2016). There is no range of vehicle under BMW that
belongs to a mediocre range. The range of production under BMW has been luxurious and
magnifies the prospect of pricing for several years since its inception. The brand has been
considered as a leading brand of automotive industry that mainly targets customers from a
extensive career with high income. The potential range of customers is from the age group of 35
to 50 years. The factor of cost makes this brand an exclusive in the range of automotive industry.

Investigate the Phenomenon of Building the BMW Brand through Boomers, Gen X, Gen Y
and Gen Z
The range of generations is a series of timeline that records the demographic cohort of various
brands and emerging business industries (Okonkwo, 2016). This list of generations has started
from the lost generation, followed by greatest generation, silent generation, and baby boomers,
Generation X, Generation Y and Generation Z. The magnificent brand of BMW has started its
journey in 1916 and has started its journey as a luxurious brand around 1945.
This distinction lists the brand under Baby boomers, which has started its journey within the
period of 1946 and 1964 (Jelinek, 2018). However, the company of BMW has started its journey
from the 1920s by manufacturing aircraft engine for German companies and gained recognition
in the market. From the period of 1923 to 1939, BMW has specialized its brand as manufacturing
automotive vehicles of mostly cars and motorcycle. The company started its journey as a car
manufacturing brand with its first vehicle of BMW model 3/15 PS and started its motorcycle
manufacturing withR32 model. During the period of World War II, from 1939 to 1945 the
company started its journey through the generation Baby boomer. The company has
manufactured model of aircraft engine for Luftwaffe, an aircraft company of Germany (Uggla,
2017). The famous world wear engines manufactured by the company include BMW 132 AND
BMW 801 radial engine along with BMW 003 axial flow turbo jet. This period of boomers
where BMW thrived includes a dynamic definition and recognition of traditional values. The
significance and reflection of this redefinition has provoked the growth of BMW as a brand. This
was a period for BMW that included huge areas of peak in their career and establishment of
various luxurious brands. Along with huge contribution of manufacturing high scale engines for
the aircraft companies in Germany, BMW as an automotive brand has emerged as a huge brand
for cars and motorcycles as well. The post war era for BMW has been hard for the brand to live
on automotive industry. The manufactures of BMW in East Germany was highly banned by
Soviet Union and the remaining production of automobiles like cars and motorcycles were
banned later. Thus, the later period of the brand in the baby boomer generation has not thrived
well. The generation X period extends from mid 1960s to early 1980s. The beginning of the
BMW brand in the generation X has not thrived well since the company lost most of its shares
and was running under s huge loss. The motorcycle series was terminated in Germany with a
new inclination towards cars. However, the company started with another range of cars that has

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helped them in distinguishing themselves as an automotive brand (Kim and Joung, 2016). The
generation Y or millennial generation was a new period for BMW that has introduced the world
with a huge range of sports car. This generation was a game changer for the brand that has
provided the world with a new range of sports car from BMW M1 with first mid engine sports
car and was manufactured in connection with Lamborghini range of automobiles (Fournier and
Srinivasan, 2018). The range of automobile that occupied the brands manufacturing in the
Generation y included luxurious car brands from BMW M That includes a huge range of series
from E12 to M5 that was created based on E28 base. The generation has created greatest ranges
of cars from M60 to E36 and E34. The Z series of the brand was also established in this period
(Loureiro et al, 2017). This is how the multinational automotive brand thrives through the three
significant generations of its business phase.
Identify the Factors that made BMW Company to build up a Solid Brand when the
Advertising was Poor
The BMW brand has gone through a huge phase of alteration when it comes to their impact of
brand due to advertising. The brand was highly known for its extremely classic and dynamic
nature of advertising. This used to showcase the brand in a different way broadcasting the
features of the multinational brand (Grassi et al., 2018). The advertisements showed on television
used to attract the potential costumers and the viewers by engaging them in making the luxurious
car attractive. This way of advertising the brand created a huge chaos and positivity in the market
regarding the comfort of cars and brand image. People were more attracted towards the brand as
a whole due to its attractive features and limitless pricing strategy. However, at the early or
middle period of 1920s, the nature of advertising implemented by the luxurious automotive
brand changed drastically. The generation of baby boomers took with itself the ideology of
creating advertisements to showcase the brand product. The new technique through which BMW
escalated its poor advertising nature of advertisements started with reflecting more fame through
an ad, than highlighting the company automobile. The steady and slow merging of various
industries through an automobile advertisement, was considered a great source of diversion for
the viewers. This immediately resulted in lowering the popularization of the BMW automobiles
within the customers. The market reach through television ad or through newspaper
advertisements became gradually narrower. Therefore it is due to poor advertising methods and
techniques that the company’s brand strategy of advertisement failed miserably. Moreover, the

evolving structure and feature of a luxurious car has started giving the audience more interest to
its additional features than the prime driving force of a car. The evolving luxurious cars of BMW
is thus an ever evolving automobile that has shifted its focus from magnifying the car features to
more towards celebrities and recognized personalities who has stolen the limelight of the
luxurious car itself.
In spite of all this hustle and diversion from poor advertising strategies of the luxurious
automotive brand BMW, it is the ultimate power of the brand in terms of quality automobile
manufacturing company that kept the company going through poor phases, still standing strong
in the current generation. The comfort and magnificence of the luxury cars have always attracted
people to the brand as a whole. The brand is especially famous within European market that
points towards its potential customers as the upper rich class of society. Germany already has
been known as an automobile manufacturing hub for BMW as the company’s headquarter is
situated there (Amatulli et al., 2017). Throughout the years and past generations, BMW has been
evolved as a brand and has established a strong reputation for itself that hardly gets detained due
to poor advertising strategy. Even though there has been poor methods of advertising, the
pervious ads created such a deep effect and awe within the viewer’s regarding the luxury of the
brand, that the people hardly wants to rely of the diversion created in the ad. The faithful and
loyal customer base of the company keeps the consumers of upper class hooked to the brand.
Thus creates a great strength for the company that needs no specific advertising strategy as such
to prove its worth. People are so much in awe of its features, that they themselves are eager to
gain knowledge about the luxurious automotive brand.
Analyzing the BMW Segmentation, Targeting and Positioning in the UK Market
Segmentation Targeting and Positioning (STP) can be considered as one of the most significant
and useful marketing strategy. Moreover, BMW can become more capable to segment, target and
position the market of United Kingdom by using the STP analysis. Apart from that, this can be
seen that STP are carried out by considering three major aspects such as segment the market,
target the best consumers and position the offering.
SEGMENTATION

BMW can be considered as one of the most popular automotive company in all over the world.
In this regard, this can be revealed that the main reason behind the popularity of BMW is their
series. As stated by BMW can achieve a lot of success in the Market of United Kingdom with the
assistance of segmenting the market based on their three very well-known series (Porkodi and
Valarmathi, 2015). Those series are BMW 3 series, BMW 5 series and BMW 7 series. This can
be revealed that for the BMW 3 series, one would make the segmentation based on the age
between 30 to 35 year old, young professional (Korobkov et al., 2015). After that BMW 7 can be
possible to segment the 55 to 65 years old people, mainly who are the CEO or any other high
management people in their organizations.
TARGETING
Targeting of BMW is done with the help of BMW short film series. In order to make them
different from other in United Kingdom, this can be found that BMW needs to be made a better
identity of their brand UK. In this regard, BMW released a series of short films and the name of
this series is Hire (Barreiros and de Mira, 2015). The download speeds of the series were very
slow and take a time of more than 2 to 3 hours. BMW needs to be targeted the young people in
the United Kingdom. This can be found that no other car manufacture are targeted this segment.
Moreover, if this can be seen that BMW make two segment A and Segment B and the company
get more profit from segment B comparing to segment A then they must target the Segment B
for more profit.
POSITIONING
Positioning is another very important part of the STP analysis and BMW needs to be position the
market of UK very carefully to develop their business in that nation. In this regard, BMW needs
to be developed their technology along with update those to attract more consumers toward them
(Vecchi, 2016). This can be beneficial for them as well to get competitive advantages from the
UK market. In order to position the market, BMW can use the social media, which can assist
them to promote their brand properly.

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The Main Methodology Used by BMW to Achieve Greater Economy of UK Market
The prime area of contributing and attributing to economy of UK mainly comprises of choosing
a market that is more industrialized and educated in terms of knowledge and wealth (Cini and
Farrugia, 2016). It then focuses on attributing the areas of requirement of the upper class people
with higher degree of technology and modernization. More than 70% of the brand’s sale of
luxurious cars are recorded to be in UK. This evidently contributes to the country’s economy
along with narrower scope of losing the brand image. The customers buying these luxurious
brands are enriching the economy of the whole country by show casing this wonder luxurious
brand in their mode of transporting. The higher level of customer satisfaction in the market of
UK has provided the chance for BMW to thrive into the market and establish higher level of
globalization and internationalization for the automotive brand. The high competitive advantage
of BMW automotive brand in the market of UK, has helped the company thrive there with
greater rate of economic stability that the brand is earning due to the market’s global economy.
This in turn, increases UK to have greater economic stability as the brand is thriving well in their
soil.
Conclusion
From the discussion, it can conclude that a branding strategy is very important for a company in
order to sustain for a long period in the market. This strategy is effective for a long time
sustainability of the emerging company or for a well-established company to thrive in the market
to achieve higher goals of accomplishment. This report is regarding the evaluation of the
effectiveness of BMW branding strategy in the UK market. The report sheds variable
information regarding the factors that made the company of BMW to build a solid brand during
its period of relatively poor advertising. The manufactures of BMW in East Germany was highly
banned by Soviet Union and the remaining production of automobiles like cars and motorcycles
were banned later. Therefore, this can be concluded that the later period of the brand in the baby
boomer generation has not thrived well. The generation X period expands from mid 1960s to
early 1980s. The establishment of the BMW brand in the generation X has not thrived well since
the company lost most of its shares and was running under s huge loss. The series of motorcycle
was terminated in Germany with a new inclination towards cars. The download speeds of the
series were very slow and take a time of more than 2 to 3 hours. BMW have to be targeted the
young people in the United Kingdom. This can be found that no other car manufacture are

targeted this segment. Moreover, if this can be seen that BMW make two segment A and
Segment B and the company get more profit from segment B comparing to segment A then they
must target the Segment B for more profit.

References
Amatulli, C., Costabile, M., De Angelis, M. and Guido, G., 2017. Inside luxury: Main features,
evolving trends, and marketing paradoxes. In Sustainable Luxury Brands (pp. 7-34). Palgrave
Macmillan, London.
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in luxury brand management (pp. 43-57). Palgrave Macmillan, Cham.
Barreiros, J.M.A. and de Mira, O., 2015. BMW Motorrad Portugal, location of a new dealership:
a case on industry analysis and location and pricing strategies (Doctoral dissertation).
Baumeister, C., Scherer, A. and Wangenheim, F.V., 2015. Branding access offers: the
importance of product brands, ownership status, and spillover effects to parent brands. Journal of
the Academy of Marketing Science, 43(5), pp.574-588.
Cini, M. and Farrugia, P., 2016. A semiotic integrated product development framework for
integrating branding in automotive product design. In DS 84: Proceedings of the DESIGN 2016
14th International Design Conference (pp. 1243-1252).
Kapferer, J.N., 2016. The challenges of luxury branding. The Routledge Companion to
Contemporary Brand Management, pp.473-491.
Keller, K.L., 2017. Managing the growth tradeoff: Challenges and opportunities in luxury
branding. In Advances in Luxury Brand Management (pp. 179-198). Palgrave Macmillan, Cham.
Fournier, S. and Srinivasan, S., 2018. Branding and the Risk Management Imperative. GfK
Marketing Intelligence Review, 10(1), pp.10-17.
Grassi, A., Cassidy, T. and Wigley, S., 2018. Luxury fashion brands ownership of private art
foundations: A new way of conceiving marketing. Journal of Marketing Trends, 4(2), pp.15-24.
Jelinek, J.S., 2018. Art as strategic branding tool for luxury fashion brands. Journal of Product &
Brand Management, 27(3), pp.294-307.

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Korobkov, I., Podgornova, E., Raszhivin, D., Olenev, V. and Lavrovskaya, I., 2015, April.
Scheduling mechanisms for spacewire networks. In 2015 17th Conference of Open Innovations
Association (FRUCT) (pp. 82-88). IEEE.
Porkodi, S. and Valarmathi, S., 2015. Environmental Impact Assessment for Infrastructure
Development project in Chennai. International Research journal of Engineering and Technology
(IRJET) volume, 2, pp.2395-0056.
Vecchi, A.,
2016. An analysis of Chinese acquisitions of Italian firms in the manufacturing sector.
International Journal of Business and Emerging Markets, 8(3), pp.276-306.
Kim, J. and Joung, H.M., 2016. Psychological underpinnings of luxury brand goods repurchase
intentions: Brand–self congruity, emotional attachment, and perceived level of investment
made. Journal of Global Scholars of Marketing Science, 26(3), pp.284-299.
Loureiro, S.M.C., Maximiano, M. and Panchapakesan, P., 2017, June. Exploring Drivers to
Engage in Fashion Luxury Consumption. In 5 th International Conference on Contemporary
Marketing Issues ICCMI June 21-23, 2017 Thessaloniki, Greece (p. 91).
Okonkwo, U., 2016. Luxury fashion branding: trends, tactics, techniques. Springer.
Uggla, H., 2017. The Price of Luxury. IUP Journal of Brand Management, 14(2).

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Evaluation of the Effectiveness of BMW Branding Strategy in the UK Market

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