LUXURY BRANDS
Name
Roll No.
Manoj Gupta
21
Fauzia Hasan
22
Vinod Iyer
23
Pramod Jadhav
24
Sameer Jadhav
25
Nilesh Jain
26
Rajesh Jain
27
Fazeel Kazi
29
Prashant Kokare
31
Luxury Brands – A Life Well lived
“Luxury brands are more than the goods. They give people the opportunity
to live a dream. The goods are secondary because first of all you buy into a
brand, then you buy the products.” Robert Polet - CEO of Gucci
Everyone wants but nobody needs, Huge Comfort, Best of the Best
Global Market Size =
$1.6Tn
growing 7.9%
Indian Luxury Market =
growing 20%
$20Bn
US market for luxury cars
SUCCESS STORY
BMW
Bayerische Motoren Werke GmbH
The BMW Group is the leading provider of premium products
and premium services for individual mobility
BMW – The Company
1916
RMW (Rapp Motoren
Werke ) is founded as an
aircraft-engine factory in
Munich. In 1917, Changed
to BMW.
1923
The first BMW motorcycle
leaves the Munich
production site.
1928
The first BMW automobile,
the Dixi 3/15, developed in
Munich.
1955
The BMW 503 and 507
sports cars are today’s
'golden oldies'.
1962
The 1500 model establishes the
trend for the "new class" of
sporty compact touring cars.
2008
More than 140 countries, 28
plants
1.5Mn cars, 107,593 employees
$70Bn revenue
$2.2Bn Net Profit
1981
BMW becomes the first
European carmaker to
establish a subsidiary in
Japan.
1977
BMW introduces the first 7 Series
car. The 733i sets new standards
in technology, design and
equipment.
Brand Identity - Logo
The blue & white circular logo BMW still uses alludes to the blue & white
checkered flag of Bavaria and also indicates a spinning white propeller on a
blue-sky background.
Three Authentic Premium Brands
Sheer driving pleasure
Customer
Deliveries
2008
1.3 Mn
Units
Brand Extension
Vehicle related Products
•Car Finance
•Lease
•Fleet Management & Consulting
Most exciting premium small car brand
•Automotive Insurance
•Extended & Used Car Warranties
200k
Units
Non Vehicle related Products
•Real Estate Loans
•Credit Cards
The pinnacle of automobile luxury
•Fixed-Term Deposits
1000
Units
Brand Positioning strategies
THE ULTIMATE DRIVING MACHINE
Product
Differentiation


communicate valued
differences and distinguished
by image (premium brand)
quality (cutting edge
technology) & design (sleek
and unique)
Brand Leadership
Positioning


BMW- maintained leadership
for many years
consistent strategy
Head-On Positioning
(comparative positioning)


BMW - Little comparison between BMW
and Mercedes
Comparison only in customers mind
Innovation Positioning
Residual Value


Practices continuous innovation.
Eg :redesigned 3-series model with better
power , stiffer suspension, taillight lenses.
Brand Positioning strategies
Price Positioning
Lifestyle Positioning
Caters to high end customers
Young urban professionals (YUP)
“status” associated with it.
High price supreme quality
Range:Rs. 2.6Mn to Rs. 70Mn (RR Phantom Coupé)
Brand Promise:
Overall Strategy
Respect for the individual
One Word Equity (O.W.E)
– Saatchi & Saatchi
BMW – Driving pleasure
Volvo – Safety
Ferrari – Living-on-the-edge
Lexus – Perfection
Any road, any conditions, any time
More than just a luxury car
Brand Identity Prism
• Sleek
• Exclusive
• Sporty
•Brings ‘excitement’
to life
Physique
Personality
Culture
Relationship
• Young
• Fun to drive
• Desirable
• German – Competent &
Serious , Quality
• International
mindset
• Cars for man's
pleasure
• Prestige
Consumer
selfprojection
Consumer
reflection
• Status
• Esteem
Brand Values
Rational
Sensory
Efficient
Stylish,
Attractive
Emotional
Exciting,
Trendy
Symbolic
Aspirational,
Status-conscious
Brand POP & POD
Point of Parity

Point of Difference
Associations that are shared with other
brands - Luxury
Types:
Types:


Category: attributes to include BMW as a
member of Luxury Brand
Competitive: POP that negate competitors
PODs – Affluence, Fun to drive
1971
Strong, favorable, unique brand associations
- Exclusivity
1975
Attribute Based - Performance
Image Based - Affective, experiential, brand
image
1985
1991
Luxury prestige
Affluence
• International
• Desirability
•Economical
•Excitement to life
Exclusivity
Fun to drive
BMW– “Always Compete & Perform”
BMW MENTAL MAP
PERCEPTUAL MAP
Élégance
A financially effective car
A car prestigious to own
Opulence
Efficiency
High
* Jaguar
* Alfa
Toyota(Lexus)
*
* Mercedes
BMW
*
Low
* Audi
Honda(legend)*
High price
High
Comfort
Prestige
*Saab
Volvo
*
Quality
Engineering
Low
BMW Fuel Economy
Perform
Fuel consumption [Ltr./ 100 km]
6.4 Ltrs
Competitors
Stylish
8 Ltrs
Élite
dealership
Sophisticated
Resale value
Brand Resonance Pyramid
Dominates the luxury car category
Resonance
Elegance
Enhances the joy of
driving
Judgments
Feelings
Compete &
Perform
Fun to Drive
Has superior
handling
Exhilarating
driving experience
Performance
Imagery
Any road in any condition
Dependable,
Luxurious
Understands
high
performance
Best Performance
Salience
Innovative
Innovation Engineering & Technology
Ad Wars
Brand Failures The Edsel
Biggest Luxury Car failure
in American history
Introduced in 1957 by Ford Motor Company
Produced in 4 models, Ford’s investment of $400m
in its development
Innovations:" rolling dome" speedometer, selfadjusting brakes
Aggressively marketed and hyped: “Edsel Show",
teaser advertisements
Sold through a new network of 1,500 dealers
EDSEL backronym: "Every Day Something Else Leaks!
Why it failed:
Hyping untested product:
“Never build up enthusiasm for unseen,
unproven product” - PR Director Edsel
Name matters:
•Named after Henry Fords son
•Sounded like Edson- an unpopular tractor
•Weasel(mammals)
•Dead cell
Looks count:
•Ugly ducklings don’t always become swans
•Nothing uniquely different
•Cultural issue with grill
Why it failed:
: High price not justified in public’s mind
Pricing
: Competing against its own sister divisions
: Priced within Mercury’s market price
segment
Right research important
:Little market research
: Huge sums to decide name instead( poets hired)
Product Quality : Bad quality control
: Parts missing when reached dealers
Recession
:Too big when small was in, not fuel efficient
Internal politics
:Robert McNamara new Boss
: Cost cutting and cost containment ideas
: Saved Ford but Edsel discontinued
: High price not justified in public’s mind
Pricing
: Competing against its own sister divisions
: Priced within Mercury’s market price
segment
Right research important
:Little market research
: Huge sums to decide name instead( poets hired)
Product Quality : Bad quality control
: Parts missing when reached dealers
Recession
:Too big when small was in, not fuel efficient
Internal politics
:Robert McNamara new Boss
: Cost cutting and cost containment ideas
: Saved Ford but Edsel discontinued