1.Ms.

Truc Tran (Tuk), ID:

587-2004
2.Ms. Kamonchat Mukda
(Syne), ID: 587-2005
3.Mr. Wanchalerm Srirattana
(Lek), ID: 587-2007
4.Mr. Peerah Hantham (Pock),
ID: 587-2015
5.Ms. Thidarat
Tangthaweetham (Nancy), ID:
587-2016
6.Ms. Anchanok Saengjang
(An), ID: 587-2021
1.Ms. Truc Tran (Tuk), ID:
587-2004
2.Ms. Kamonchat Mukda
(Syne), ID: 587-2005
3.Mr. Wanchalerm Srirattana
(Lek), ID: 587-2007
4.Mr. Peerah Hantham (Pock),
ID: 587-2015
5.Ms. Thidarat
Tangthaweetham (Nancy), ID:
587-2016
6.Ms. Anchanok Saengjang
(An), ID: 587-2021
Assumption University of Thailand
Graduate school of eLearning
Master of Science in Management
 Course Title: MS6402 Advance Marketing
Management
Group case study No.3 (12-1) "BMW"
Lecturer: A.Bhumiphat Gilitwala
Group Members

1. Ms. Truc Tran (Tuk), ID: 587-2004

2. Ms. Kamonchat Mukda (Syne), ID: 587-2005
3. Mr. Wanchalerm Srirattana (Lek), ID: 587-2007
4. Mr. Peerah Hantham (Pock), ID: 587-2015
5. Ms. Thidarat Tangthaweetham (Nancy), ID: 587-2016
6. Ms. Anchanok Saengjang (An), ID: 587-2021

Introduction
History
BMW was established as a business entity following a restructuring of
the Rapp Motorenwerke aircraft manufacturing firm in 1917. After the end
of World War I in 1918, BMW was forced to cease aircraft-engine production
by the terms of the Versailles Armistice Treaty. The company consequently
shifted to motorcycle production as the restrictions of the treaty started to be
lifted in 1923, followed by automobiles in 1928–29.
The first car which BMW successfully produced and the car which launched
BMW on the road to automobile production was the Dixi, based on the Austin
7 and licensed from theAustin Motor Company in Birmingham, England.
Jim McDowell vice president of marketing at BMW said that "We're fortune
right now at BMW in that all of our products are new and competitive." as he
explains BMW's product life cycle "You have to introduce new models over
time, so you're not changing a whole model range at the same time you're not
changing another model range." BMW's strategy is to keep its products in the
introduction and growth stages by periodically 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.
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 and the new 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 will begin selling Rolls Royce vehicles in 2003. BMW get a high-
profile image campaigns and the award-winning BMW website 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" that make
BMW often sees its best sales numbers in either the sixth or seventh year after
the production introduction.

Branding

"BMW is fortunate - We don't have too much of 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.
The BMW branding strategy is quite simple, unlike the evocative names many
car manufacturers choose to garner excitement for their new models.

Managing the product through the web-the wave of the future

One of the best ways BMW is improving its product offerings even
further is through its innovative Web site (www.bmwusa.com). On the web
site customers can learn and get the car's information also they can do a test-
drives from their local BMW dealership.

Carol Burrows, product communications manager of BMW said "The

BMW web site is an integrated part of the overall marketing strategy for
BMW."

Customer can go to their local dealership via web site to further discuss
costs for purchase of a car and it is a distribution channel for information that
allows people access to the information 24 hours a day at their convenience.

1. Compare the product life cycle described by BMW for its cars to the
product life cycle shown in Figure 12-1. How are they (a) similar and (b)
dissimilar?
 The product life cycle has four very clearly defined stages, each with its
own characteristics that mean different things for business that are trying to
manage the life cycle of their particular products.

Introduction Stage -This stage of the cycle could be the most expensive for a
company launching a new product. The size of the market for the product is
small, which means sales are low, although they will be increasing. On the
other hand, the cost of things like research and development, consumer
testing, and the marketing needed to launch the product can be very high,
especially if it’s a competitive sector.

Growth Stage -The growth stage is typically characterized by a strong growth

in sales and profits, and because the company can start to benefit from
economies of scale in production, the profit margins, as well as the overall
amount of profit, will increase. This makes it possible for businesses to invest
more money in the promotional activity to maximize the potential of this
growth stage.

Maturity Stage - During the maturity stage, the product is established and the
aim for the manufacturer is now to maintain the market share they have built
up. This is probably the most competitive time for most products and
businesses need to invest wisely in any marketing they undertake. They also
need to consider any product modifications or improvements to the
production process which might give them a competitive advantage.

Decline Stage -Eventually, the market for a product will start to shrink, and this
is what’s known as the decline stage. This shrinkage could be due to the
market becoming saturated (i.e. all the customers who will buy the product
have already purchased it), or because the consumers are switching to a
different type of product. While this decline may be inevitable, it may still be
possible for companies to make some profit by switching to less-expensive
production methods and cheaper markets.

As seen in Figure 12-1, the shape curve start increasing from the
introduction stage to Growth and Maturity state gradually. According to Jim
McDowell BMW has half shape life cycle at the stage of introduction and
growth. There significant aspects of similarity and dissimilarity between the
product life cycle explained by BMW for its cars and the product life cycle.

(a) similar

In figure 12-1, products are shown, started to rise up from introduction

stage to growth, maturity accordingly then drop down at decline stage, point
at maturity stage BMW earned the maximum profit.

Generally, BMW's strategy is similar to figure 12-1 in that it strives to

keep the products in the first two stages at all before they are taken off the
market as per Jim McDowell has mentioned, BMW's strategy is to keep and
maintain the products in the stage of introduction and growth by periodically
introducing new models in each of its product lines. In fact, BMW does not
want the product to be in maturity and declining stage of product life cycle due
to the bad image of the luxury car brand. However, BMW wants to increase
the primary demand for the product class and gain customer awareness during
introduction and growth stages and have limited paces of distribution. In
addition, BMW offers full line of different models during these two stages to
maintain brand loyalty and maintain the impression of having new classic
product at all time.

(b) dissimilar
 Referring to Jim McDowell, even though BMW cars have seven years of
product life cycles, the company constantly tries and makes the car
meaningfully different and renew about every three years. In term of adding
new features and other capabilities to the car feature. Jim McDowell also
mentioned that BMW often seen its best sales number in either the sixth and
seventh years in the car market industry after launched the product at
introduction stage. When BMW is going to drop into declining stage as per Jim
McDowell, BMW will create the new strategy by innovation market plan to
maintain the product stay in the growth stage. As it showed on the figure 12-1
that the revenue is peak in the growth stage and maturity stage BMW earned
the maximum profit, obviously dissimilar from Jim said. However, BMW has
become aware of some international product life cycle differences. For
example, it has discovered that some competitive products have life cycles that
either shorter or longer than seven years. In Sweden and Britain automotive
product life cycle are eight years, while in Japan they are four years only.
Hence, pricing strategy and dealership play a very important role in terms of
gaining the sale.

2. Based on BMW's typical product life cycle, what marketing strategies are
appropriate for the 3 series? The X5?

As far as we known that BMW is strive to improve its product to remain

the product cycle sustain in the market. Also BMW hardly attempted to keeps
its product to sustain of marketing strategy in the introductory and growth
stages, that it made BMW regularly introduces new models for vary series. For
instance, with the 3 series, it will introduce the new sedan model one year, the
new coup, 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.

How well does this strategy work?

To sustain this Marketing strategy is work well in the Growth stage, we

then decide to sustain some of strategy alive and it would affect with product
life cycle.

Prices remain where they are or fall slightly, depending on how fast
demand increase, Companies maintain their promotional expenditure at the
same or at a slightly increased level to meet competition and to continue to
educate the market. Sales rise much faster than promotional expenditures,
causing a welcome decline in the promotional in the promotion-sales ratio.
Profits increase during this stage as promotion costs are spread over a larger
volume and unit manufacturing costs fall faster than price declines owing to
the producer learning effect. BMW has to watch for a change from an
accelerating to a decelerating rate of growth to prepare new strategies.

During this stage, BMW uses several strategies to sustain rapid market
growth;

BMW 3 Series

This is to show that BMW 3 series is sustain the product life cycle

 It improves product quality and adds new product features and

improved styling.

It BMW’s 3 Series is one of those cars that changed the motoring

industry.It phenomenal success meant that everyone wanted one, every
manufacturer, from Audi and Mercedes to Volvo and VW, strived to find a
model that would stand up to it in the showrooms and to own one was a sign
that you had made it.
It offered drivers a reliable car that was exciting, good-looking and yet
within their price range.
 All of that means refreshing and upgrading it is something of a tricky
business because BMW have to tread carefully – appealing to new customers
without alienating existing ones.And, so far, BMW have managed to do this
with aplomb.Their 3 Series is still their most successful car and an international
bestseller.
The latest tweak makes it even more dynamic looking due to subtle but
significant changes.
The headlights are further apart but integrated into the signature kidney
grille and there are broader air intakes in the re-sculpted bumpers, giving the
car a broader, sportier presence on the road.
At the rear, the lights’ shape is more distinctive and there are new twin
exhaust tailpipes.

 It adds new models and flanker products (i.e., products of different size,
flavors, and so forth that protect the main product)
 The new engines, coupled with retuned suspension and either the six-
speed manual or the new eight-speed automatic transmission, provide the
kind of immediate and thrilling driving that BMW is renowned for.
The new 3 Series is agile, powerful and incredibly willing to perform.And
there is now a hybrid option, the BMW 330e plug-in hybrid, using Munich’s
fantastic e-technology.It will do an astonishing 148mpg and offer CO2 figures
of just 44g/km.It combines a 2.0-litre petrol engine with an electric motor,
giving a combined output of 252hp, a top speed of 140mph and 0-62mph in
just 6.1 seconds.
The new 3 Series is available now from £25,160 for the entry-level 318i
model – which is a great price for such a quality car.
Fact file:
Model: BMW 318i SE
Engine: 1.5-litre petrol
Power: 136hp
Top speed: 130mph
0-62mph: 8.9 seconds
Average mpg: 52.3mpg
CO2 emissions: 124g/km
Warranty: Three years/unlimited mileage
Price: £25,160
 It enters new market segments.

The BMW 3 Series: Advertising and Marketing 3 Series Target Market

BMW’s target market for the 3 Series sports sedan consists of well-educated,
relatively affluent males seeking an automobile to satisfy their need for
excitement and luxury. In some cases, these men are also looking for a
performance car that can serve as a practical family vehicle, offering sufficient
space and safety features. While there are some women driving the 3 Series
model, the target market is approximately 70 to 80 percent male. BMW also
targets a rather wide age group: males anywhere between the ages of 25-55
are candidates to purchase this car. The 3 Series is well- suited for
sophisticated consumers deliberately searching for a refined car with a sporty
ride. 3 Series Specific advertising The 3 Series is a well-established leader in the
mid-level luxury performance sedan market, and BMW promotes the model
aggressively with clever advertising. Recent advertisements have shown how
the 3 Series has developed throughout the years, including one spot that
shows the changes the vehicle has undergone as it speeds around a track.
Another spot, which can be found on BMW’s North American website, explains
how the 3 Series has grown to become a cultural icon and has obtained a loyal
following.

 It increases its distribution coverage and enters new distribution

channels.

The BMW 3 Series The 3 Series Brand of The BMW 3 Series is often
bought as a performance vehicle, more so than many of its top competitors.
Whereas the TL, CTS, and G35 are larger and associated with a slightly more
mature audience, the 3 Series is seen as a sportier vehicle with luxurious
features. A BMW is a statement of the person who drives it more so than an
Acura, Cadillac, or Infiniti. It is clearly a neck-tie brand, offering its owners an
association with a confident and edgy product. The 3 Series has a vivacious and
flashy personality, a reflection of the automaker and its customers. Like other
BMW models, the 3 Series undergoes a restyling and re-imaging every seven
years. BMW prefers to keep its models in the introductory and growth stages,
rather than let them slip into maturity or declining stages. BMW names all of
its models according to series number and the engine type; thus, the 328i is a 3
Series model with a 2.8 liter engine. Unlike most car companies, BMW deviates
from giving its models new names to generate publicity. The BMW 3 Series is
often seen as an authoritative product in the mid-level luxury performance
sedan market. In its 2008 Facts Guide, Acura states that “the TL is engineered…
to take on icons of performance and luxury such as the BMW 3 Series and
Lexus ES 350.” Many consumers are under the impression that the 3 Series is a
prestigious automobile, still superior to most of its competition. Their buying
habits are a reflection of this image: the BMW 3 Series sold 96,358 units in
2005, which accounted for approximately 40 percent of all BMW sales for that
year. The industry is also impressed with the BMW 3 Series. On its website, Car
and Driver identifies this vehicle as a segment leader. “The Benchmark for
sports sedans,” the website states, “the 3 Series blends comfort, luxury, speed,
and handling in a way that escapes other carmakers.” CNET.com, a product-
review website, notes that the 3 Series is “quite an ego boost,” a reference to
the psychological attraction of the car. Edmunds.com further praises the 3
Series, stating “[The 3 Series] is endowed with world-class suspension, steering
and brake components, [and] these cars have an ability to communicate with
their drivers that is unmatched in the entry-level luxury class, and indeed
unmatched by most cars at any price.” Edmunds.com awarded the 2007 BMW
3 Series the “Editors Most Wanted Sedan Under $35,000.”

 It shifts from product-awareness advertising to product-preference

advertising.

Advertising and Marketing BMW’s Aggressive Advertising BMW has

always promoted its products as superior vehicles, confidently asserting its
position as an industry leader. The company has associated its brand with class
and prestige and has established its models as benchmarks in their respective
segments. BMW labels itself “The Ultimate Driving Machine,” further
suggesting its eminence as an automobile maker. With the help of Austin-
based advertising agency GSD&M, BMW launched an alternatively designed
campaign in 2006. Rather than focusing on automobile specification and
design, this series of print and television advertisements labels BMW as a
“company of ideas.” The advertisements portray the company as a cutting-
edge, idea-generating company that takes risks and enjoys its freedom as an
independently-held company. The television ads focus on stereotypical
bureaucrats who neglect or reject ideas and separates BMW as a company that
“makes sure great ideas live on to become Ultimate Driving Machines.” The
print ads follow similar themes of BMW’s freedom as an independent
carmaker and the risks this allows them to take. One particular print
advertisement in this campaign challenges the viewer to match several other
carmakers with their respective parent companies, and it lists competitors
such as Lexus, Infiniti, Mercedes, Audi, and Volvo on the left-hand side and
their parent companies (Toyota Motor Corporation, Nissan Motor Corporation,
Ltd., DaimlerChrysler AG, Volkswagen AG, and Ford Motor Company,
respectively) on the right-hand side. The copy of the advertisement explains
“BMW has the autonomy to build cars the way [they] want to build them,”
further suggesting that other automakers may not be able to justify novel risks
to their parent companies, limiting their creativity and production potential.
BMW has also attacked other carmakers. For instance, BMW recently ran a
separate aggressive campaign pitting itself against Audi Motor Corporation,
owned by Volkswagen Worldwide AG. BMW, promoting its 3 Series line of cars,
sarcastically congratulates Audi for winning the “South African Car of the Year
2006,” then closes the advertisement by noting that the 3 Series was named
“World Car of the Year 2006.” Audi ran advertisements responding to BMW’s
offensive promotional strategy. Audi responded with an advertisement
congratulating BMW and noting that its A4 model was the winner of six
consecutive Le Mans 24 Hour Races. The A4, however, has not reached the
sales or consumer satisfaction level as many of its competitors, including the 3
Series.

 It lowers prices to attract the next layer of price-sensitive buyers.

The BMW 3 Series Specifications and Pricing the BMW 3 Series is

available in several different models: the 328i, 328xi, 335i, and 335xi. The ‘xi’
models come standard with all-wheel drive, while the ‘i’ models are rear-wheel
drive. BMW’s most prevalent model, the 328i, offers a 3.0 liter, inline six-
cylinder engine that pumps 230 horsepower. The 335 models are more
powerful, with turbo-charged engines that offer 300 horsepower. The base
price for a BMW 328i is as low as $32,400, but starting prices may be as high as
$40,000 for the 335 models. The BMW 3 Series is the smallest vehicle out of its
top competition, offering only 93 cubic feet of interior room, and the
wheelbase is longer than only that of the Acura TL. However, its four-star
front-end crash rating suggests that it is a rather safe vehicle, despite its
performance attributes and relatively small size. Other safety features include
a rollover protection system and crash-sensor system that automatically
unlocks doors and switches on hazard lights. The 3 Series is also considerably
fuel-efficient, offering an estimated 20 miles per gallon city and 29 miles per
gallon highway.

BMW X5 Series

This is to show that BMW X5 series is sustain the product life cycle

 It improves product quality and adds new product features and

improved styling.

The image that BMW has positioned its self as is exclusivity, 

performance, technologically advanced, quality automobile producer. 
The markets BMW position them in are very competitive. This is 
due to the number of other automobile manufacturers that produce cars 
of a similar quality, price, and image. The main manufacturers that 
BMW compete with are Mercedes, Jaguar, Audi, VW, Alfa Romeo, Lexus, 
Ford, Range Rover, Porsche, TVR and Opel (Vauxhall in the UK). Most of 
these manufacturers use differentiated strategies to produce large 
ranges of cars as well. The difference is that each of the companies 
relies on different brand images to sell their cars. E.g. Mercedes is 
seen as a luxury, reliable and quality producer but does not have the 
'performance factor' that BMW does but on the other hand Alfa Romeo is 
renowned for being stylish and performance breed but unreliable car. 
The positioning of these companies and their brands has been built up 
over many years but BMW has stamped their mark upon the public in a 
positive way. This has led to continuing sales growth throughout the 
international car markets. This has also allowed them to move into new 
markets to challenge the market leaders. E.g. Range Rover and the BMW 
X5(4X4).

 It adds new models and flanker products (i.e., products of different size,
flavors, and so forth that protect the main product)

Chassis dynamics are disappointing, but fine diesel engines in the latest X5
offer a combination of efficiency and refinement

The original BMW X5 introduced sporty handling on the road to the 4x4
sector, but the definition of how an SUV should drive has changed recently.
Now, the best cars in this class blend sharp handling and excellent off-road
ability with refinement to rival that of the top luxury saloons.

Yet even if you specify the X5 with the Adaptive Dynamic suspension,
which some owners may find over-complicated, it can’t match the current class
leaders for all-round driver appeal.

While body roll is well controlled, the BMW rides too firmly in the
sportier settings, making Comfort the mode you’ll want to stick to. As a result,
you wonder whether the car really needs so many different settings.

Even in Comfort, the X5 tends to follow cambers in the road and never
feels settled or relaxed like its rivals. This is a problem compounded by the
strangely numb and inconsistent steering. Overall, the car has neither the
composure nor sharp reactions of the Porsche Cayenne nor the refinement
and lightness of touch of the Range Rover Sport.

If it's crushing performance you're after, though, the X5 M is top of the

tree – this is a truly ballistic SUV. It leaves the Porsche Cayenne Turbo and
Range Rover Sport SVR trailing in its wake with a 0-62mph time of 4.2 seconds,
while firmer suspension keeps the body even flatter in corners and makes the
most of the immense grip.

 It enters new market segments.

BMW use a differentiated strategy, this means that they target 

specific automobile markets. These markets suit different people 
within the segmentation stratosphere. 

The markets that BMW actually target are Sports Convertibles (Z3, 3 
series, and new Z4), Executive (3 series, 5 series), Super Executive 
(7 series), Touring / Estate (3 series, 5 series), Grand Tourers (Z5), 
Super sports (M series), and 4X4 (X5). 

 It increases its distribution coverage and enters new distribution

channels.

BMW use upper market Dealerships & Imports for non-dealer

networked countries they have four car manufacturing plants in the UK these
are Bracknell in Berkshire, Oxford Plant, Oxford Hams Hall Plant, and 
Goodwood in West Sussex. They also supply financial services based in 
Hook - Hampshire, Swindon Pressings Ltd - Swindon and Wiltshire. They 
have 156 dealers in the UK who are franchised to sell BMW cars, 
additionally 148 dealers are franchised to sell Minis. Worldwide BMW 
operate in 100 different countries with over 4,400 dealers which are 
authorized to sell both new and used cars, parts and after sales 
service products.  There is also sustain of the old distribution of its, but also it is
looking for new distribution channel such as young graduate market who ably
to spending of its car.

 It shifts from product-awareness advertising to product-preference

advertising.
- Leveraging the updated and innovative technology to persuade new
customers.
- Increasing per capital income and purchasing capability of potential
customer base.
- Good brand equity in the luxury SUV segment
- Increasing manufacturing capabilities.
- Augmenting the distribution and service network in various countries.

 It lowers prices to attract the next layer of price-sensitive buyers.

To Maintain Premium Luxury Car Image & Maximize Profits Reduce Mfg.
Costs by Technological Innovation Expansion into Emerging & Developing
Countries Don’t Reduce funding for R&D Add more smaller/cheaper cars like
MINI Cooper

• Pricing should remain Premium for High-end Models

• R&D will help in developing further automation that can reduce Mfg. costs,
Investment in Emission Reduction Technology

• To support local manufacturing initiatives of countries like India

• India, China, African Fuel producing Countries, Australia etc.

BMW As global sales have increasingly, 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 7 years. In Sweden and Britain, automotive product life cycles are 8
years, while in Japan they are typically only 4 years long. BMW strategies seem
to be correct due to continued and growing marketshare, high profitability,
and increasing brand.

3. Which of the three ways to manage the product life cycle does BMW
utilize with its products-modifying the product, modifying the market, or
repositioning the product?

In general, there are three ways to manage product through stages of its
life cycle that most marketers rely on.

Modifying the product: product modification that involves altering of a

product’s characteristics such as its unique design, superior quality, better
performance, or/and appearance, which leads to the increasing of sales.

Modifying the market: market modification strategies, the firm usually tries to
do three things; 1) finding new users or new target market, 2) increasing
usages by promoting during the low seasons (lower sales in particular period of
the year), and 3) creating new situation of usage such as identifying new
applications.

Reposition the product: product repositioning is changing the place a product

occupies in customer’s mind relatively to competitive / alternative products. In
order to reposition, it is likely to increase the sales by changing one or more of
the four marketing mix elements as below.
 Reacting to competitors’ positions
 Reaching a new market
 Catching a rising trend
 Changing the values that offered
- Trading up by adding values through additional features or higher
quality materials used or introducing new technologies.
- Trading down by reducing the features, quality or price.
According to BMW’s case, my point of view is BMW applies all these
three ways to manage its product life cycle but what BMW utilizes the most is
‘modification of the product’. If we take BMW 3 series as an example, we can
see that the firm has the way to modify or redesign within the series itself
starting from Sedan, Coupe, Convertible, Station Wagon, and Sport Hatch-
Back. BMW has successfully applied this modification method since 1998, even
though the 3 Series had been launch in the US market in early 1970s. From
1998 – present, over 17 years that BMW keeps modifying its product, not just
the design but others as well; engines, rear-wheel drive, xDrive (all-wheel
drive), push-button ignition, run-flat tires, iDrive (navigation system control),
fuel economy (E85, E90, Diesel or Hybrid), and etc.

The BMW 3 Series Generatio

Although, the latest generation of BMW 3 Series debuted in 2012, the
firm has later decided to reclassify the vehicles in their line-up in 2014, which
results the 3 series exists only a four-door sedan; whereas, the coupe becomes
in the 4 series.

The BMW 3 Series, A Four-Door Sedan Model Line Up

The BMW 4 Series, Coupe Model Line Up (Former 3 Series)

4. How would you describe BMW's branding strategy (manufacturer

branding, private branding, or mixed branding)? Why?
 A Brand is more than a logo, name or slogan. It is the entire experience
and prospects that customers have with the company, products or services.
Branding strategydefines what you stand for, a promise you make, to
whom you plan on communicating your product or service and the personality
you project. It includes logo, color palette and slogan, those are creative
elements that convey your brand.

Branding is crucial for products and services sold in huge consumer

markets. It helps company stand out from other competitions. Successful
branding also creates “brand equity” the amount of money that customers are
willing to pay just because it is your brand. In addition to generating revenue,
brand equity makes company itself more valuable over the long term.

Manufacturer Branding
Manufacturer Brand also called producer brand or national brand is one
of the two types of the brand. When manufacturer market goods under its
own name that brand is known as Manufacturer Brand. Manufacturers opt this
branding to attract existing loyal and satisfied customers by transferring their
loyalty to manufacturer’s other products also. Marketing and distribution
responsibility is carried by manufacturer. Mostly manufacturer brands are
supported by huge advertising budgets. Brand identity is linked with
manufacturer’s image. Manufacturers opt for this kind of brands when
manufacturer has strong and positive image.

Customers usually believe that manufacturer brands are of better quality

than retailer brands because of the low prices offered by retailer brands.
Reason of high cost of manufacturer brand is due to cost incurred due to
distribution channel. To fight with low price retailer brands many producer
brands have launched low price alternatives. For example, Mercedes Benz,
Chanel or Louis Vuitton, etc.

Private Branding
Private branding is also called private labeling. It is product that is
controlled and marketed by retailers. Most of the times they carry the name of
the retailer on the products. This brand is generally created by a huge
manufacturer who supplies to a retailer who puts his name on it before selling
the final product.A brand placed on products that a large manufacturer has
created for a smaller retailer. The smaller retailer places their own private
brand label on the final good which was created by a third party manufacturer.
Private branding is a cost effective way to gain access to producing a product
without requiring a large manufacturing or design team. For the manufacturer
the benefit of selling private brands is the increased sales volume and stable
supply contracts. For instance, Walmart, Target, K-Mart, Mark and Spencer or
Radio Shack, etc.

Mixed Branding
Mixed branding also referred as brand assortment, is the group of all of
the brand lines by a seller that are made available to the buyer.To introduce
new products in market, a seller can use an existing brand to do the same. This
is known as brand extension. The new product could be from the same product
category as currently served by the brand. Such a brand extension is known a
line extension. The new product launched can also be launched in a different
product category as well, and this is known as category extension. The brand
line of a particular brand would consist of all the products under the brand, be
it original or category or line extensions. Now, the set of all these brand lines
offered by the seller would constitute the brand mix.A mixed branding strategy
can help create separate product class associations for various brands.

There are some examples of this mixed branding; Unilever has line
extension products such as Dove, Sunsilk, Axe, etc. Toyota makes all types of
vehicles under its own name and markets them as reliable, inexpensive cars
and trucks. However, the company also markets the cars produced under its
Lexus brand as luxury vehicles. Michelin manufactures and sells tires under its
own name, but it also allows retail giant Sears to place its name on Michelin
tires. The "Sears-brand" tires that customers purchase at a Sears Auto Center
are actually Michelin tires carrying the Sears name.
However, according to this case study, BMW is applying Manufacturer
branding strategyto build their brand equity, enhance prestige, as well as
develop customer loyalty. Using the company brand as well as providing its
identity and strengths will attract and retain both new customers and existing
satisfied-customers whose loyalty may be transferred to the manufacturer’s
other products.

In addition, it is also easy for customers and owners to understand. As

per the case, McDowell, the vice president of marketing at BMW explained
that the company uses BMW’s trademark naming system that consists of the
product line number and the motor type. This way gives customer a clear
picture to identify and acknowledge which series and type of engine of the car
is. In the BMW website has distinguish the models of BMW into 1-7 series, X
line, Z line, BMW M and the latest model BMW i. The pictures below are
showing the current models in the market.

The BMW branding strategy is quite simple comparing to others car

manufacturers, as the number of series are describing design and size of its
engine. This naming system creates the unique perception for their customers,
they are not only ease to recognize the specific qualification, shape of the
model but alsoassisting their customers to select the choices by the name of
categories.

For example, nowadays

customers are more concerning about
the capability of the vehicles to support
increasing of family members. Hence,
BMW released X series to attract the
customers who preferred 4-wheels drive
and more capacity which weren’t fitted BMW X Line

in the previous BMW 1-7 series.

 Besides, the latest model BMWi, is a comprehensive and groundbreaking
concept for sustainable mobility, it
represents visionary electric vehicles and
mobility services, inspiring design, and a
new understanding of premium that is
strongly defined by sustainability.
BMW’s manufacturer branding strategy
is effective, they are not only attracting new targets and increasing the market
share, but also adapting their product categories to maintain their royal
customers.

BMW i

Furthermore, there are many advantages to

businesses that build successful brands such as
create premium prices, gain higher profit margins,
increase better distribution and build customer
loyalty. Therefore, the consumer may be looking for
the brand to add meaning to his or her life in terms
of lifestyle or personal image. A brand can usefully
be represented in the classic “fried-egg” format shown aside, where the brand
is shown to have core features that are surrounded by less tangible features as
BMW does, high Performance and Luxury brand positioning.

5. Go to the BMW web site (www.bmwusa.com) and design a car to your

own specifications. How does this enable you as a customer to evaluate the
product differently than would be otherwise possible?
What is shall for our own specification is BMW X5, which is model consisting;

 Series model: BMW X5

 Body style: Sport activity vehicle, Coupe and Wagon
 MSRP: can be ranged from $32,500 - $141,000
 Horsepower: Expected from 170 HP – 600 HP
 Drivetrain: xDrive
 Fuel: Diesel
 Fuel Efficiency: Expected from 19 MPG – 42 MPG

The BMW X5 is also has enough on and off road power to handle in any
drive situation. In additional, optional dynamic performance control also is
running smoothly distributes the power of the rear axle, improving agility and
accuracy. Available active rolls are stabilization complements by minizing body
roll, and makes for handling while pushing to the limits in any situation you go.
In the conclusion of BMW X5 is greatly for those who love to drive and
impressive in sport car as a result of that there also has several specification
consisting;

The X5 has enough luxurious space for those who loves to travel and
everybody. That also can see the rear comfort seats with enhanced foam
padding offer 3 of forward0backward movements and also putting passengers
in the perfect position to utilize a DVD drive and two optional 9.2 LCD screens.
An optional third row sear offers extended capacity and includes its own
climate control.

Others specification is eDriveintegrates the best of performance with

efficiency. Using technology inherited from the BMW i8, eDrive combines the
sustainability and instant torque of an electric engine with the power of a
traditional engine. The BMW X5 xDrive40e generates 308 combined
horsepower and gives you 14 miles of emission-free driving.
POWERFUL ENGINES THE HEART OF EVERY X5 OF ITS MODEL HAS 35i: BMW’s
inline 6-cylinder 3.0 liter engine features BMW TwinPower Turbo technology,
combining High Precision direct fuel injection, Double-VANOS and Valvetronic
variable intake technologies, and a twin-scroll turbocharger. The result: turbo
lag is virtually eliminated. Peak torque of 300 lb-ft kicks in at 1200 rpm,
pushing you back in your seat all the way to 5000 rpm, and a maximum output
of 300 hp is reached at 5800 rpm.

Available in: X5 sDrive35i, X5 xDrive35i

Dynamic Performance Control: Smoothly distributes power between the rear

wheels for optimal agility and sporty handling. For instance, when cornering,
the outside wheel receives more torque, allowing you to drive “into” curves.

There are several models in the BMW X5 for enhanced the driving lover.
There are available on the website of BMWUSA.com
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