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

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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
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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.
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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
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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
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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
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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.
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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.
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