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BMW Brand Study – A look at how BMW
structures its branded house
A Quick BMW Brand Study on its Branded House
By Tom Dougherty
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(Read Stealing Share’s New Global Automobile
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Market Study here)
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“We’re fortunate right now at BMW in that all of our
products are new and competitive,” said Jim
McDowell, vice president of marketing at BMW
(McDowell, whose formal title now is Vice President
MINI of the Americas), as he explains BMW’s
product life cycle. “Now, how do you do that? You
have to introduce new models over time. You have
to logically plan out the introductions over time, so
you’re not changing a whole model range at the
same time you’re changing another model range.”
BMW’s strategy is to keep its products in the
introduction and growth stages by periodically
The BMW Logo hints at its early aviation business
introducing new models in each of its product
lines. In fact, BMW does not like to have any products in the maturity or decline stage of the
product life cycle.
Explains McDowell, “If a product is declining, we would prefer to
withdraw it from the market, as opposed to having a strategy for dealing
with the declining product. We’re kind of a progressive, go get ’em
company, and we don’t think it does our brand image any good to have
any declining products out there. So that’s why we work so hard at
managing the growth aspect.”
Jim McDowell
BMW Brand Study- The Company and products
BMW is one of the preeminent luxury car manufacturers in Europe, North
America, and the world today. BMW produces several lines of cars, including the 3 series, the 5
series, the 7 series, the Z line (driven by Pierce Brosnan as James Bond in Goldeneye and a Z4
roadster in the zombie film “Warm Bodies”), and the X line, BMW’s “sport activity” vehicle line. In
addition, BMW is now selling Rovers, a British car line anchored by the internationally popular
Land Rover sport utility vehicle, and began selling Rolls Royce vehicles in 2003. Sales of all the
BMW, Rover, and Land Rover vehicles have been on the rise globally. High-profile image
campaigns (such as the James Bond promotion and movie placements) and the award-winning
BMW website (where users can design their own car) continue to increase the popularity of BMW’s
products. PRODUCT LIFE CYCLE BMW cars typically have a product life cycle of seven years.
To keep products in the introductory and growth stages, BMW regularly introduces new models
for each of its series to keep the entire series “new.” For instance, with the 3 series, it will
introduce the new sedan model one year, the new coupe the next year,
then the convertible, then the station wagon, and then the sport hatchback. That’s a new product
introduction for five of the seven years of the product life cycle. McDowell explains, “So, even
though we have seven-year life cycles, we constantly try and make the cars meaningfully different
and new about every three years. And that involves adding features and other capabilities to the
cars as well.” How well does this strategy work? BMW often sees its best sales numbers in either
the sixth or seventh year after the product introduction. As global sales have increased, BMW has
become aware of some international product life-cycle differences. For example, it has discovered
that some competitive products have life cycles that are shorter or longer than seven years.
In Sweden and Britain automotive product life cycles are eight years, while in Japan they are
typically only four years long.
BRANDING “BMW is fortunate-we don’t have too much of a dilemma as to what we’re going to call
our cars.” McDowell is referring to BMW’s trademark naming system that consists of the product
line number and the motor type. For example, the designation “328” tells you the car is in the 3
The BMW Branded House is easy for customers and owners to understand
Click here: BMW has its own YourTube Channel
series and the engine is 2.8 liters in size. BMW has found this naming system to be clear and
logical and can be easily understood around the world.
The Z and X series don’t quite fit in with this system. BMW had a tradition of building
experimental, open-air cars and calling them Z’s, and hence when the prototype for the Z3 was
built, BMW decided to continue with the Z name. For the sport activity vehicle, BMW also used a
letter name-the X series-since the four-wheel drive vehicle didn’t fit with the sedan-oriented 3,
5, and 7 series. Other than the Z3 (the third in the Z series) and the X5 (named 5 to symbolize its
mid-sized status within that series), the BMW branding strategy is quite simple, unlike the
evocative names many car manufacturers choose to garner excitement for their new models.
BMW brand study. Managing The Product Through the web –
Rebranding For the Future
Customers find their self-identification in the models and move up a model every 7 years
One of the ways BMW is improving its product offering seven further is through its innovative
website (www.bmwusa.com). At the site, customers can learn about the particular models, e-mail
questions, and request literature or test-drives from their local BMW dealership. What really sets
BMW’s website apart from other car manufacturers, though, is the ability for customers to
configure a car to their own specifications (interior choices, exterior choices, engine, packages,
and options) and then transfer that information to their local dealer.
As Carol Burrows, Consumer Research
Manager at BMW of North America,
explains, “The BMW website is an
integrated part of the overall
marketing strategy for BMW. The full
range of products can be seen and
interacted with online. We offer
pricing options online. Customers can
go to their local dealership via the
website to further discuss costs for
purchase of a car. And it is a
distribution channel for information
The BMW web site is organized and clean
that allows people access to the
information 24 hours a day at their convenience.” This concise BMW brand study wants to point
out that the web presence is not just a retail site for BMW. It is a vehicle to position the brand and
satisfies both goals with aplomb.
Download File
BMW Home Page
BMW enters the electronic car world
BMW is still the ultimate driving machine
Are you a branded house or a house of brands?
No automobile company has a REAL brand
How to build a global brand like BMW
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