BMW vs Kia

Introduction

This report builds and examines the brand architecture of two brands of cars: BMW and Kia. The two
brands are chosen as they are in the same industry but have very different targets. The goal is to
observe how consumers can have vastly different perceptions of and relationships with very similar
products owing to the differences in brand architectures.

Brand Architecture

The first step is to develop brand pyramids for both brands

Brand Architecture for BMW

Brand Architecture for Kia

Brand comparison

As we can see both brands compete in very similar markets. Also, both brands put a high value on
performance and product quality. However, the differences in the brand personalities appeal to very
different target audiences in the same market. BMW prides itself on the exclusivity that it brings
through its sleek designs and premium pricing. On the other hand, Kia attracts its audience with the long
guarantee of their vehicles. While BMW creates a sense of belonging for its customers, Kia provides its
customers the value for money. BMW targets the high end of the market, and its customers are not
usually price sensitive. There are few options to choose from, but brand loyalty is very high. Kia
customers are more price sensitive. Due to differences in pricing, BMW products are high margin
products. On the other hand, Kia relies more the sales volume. Thus, both brands serve the company’s
goal of revenue share through two different drivers.

Brand Value

Interbrand ranked BMW as the 3rd most valuable automotive brand in its 2019 brand rankings 1with a
brand value of $41440 million, while Kia is the 12th with 6428 million. BMW has more loyal customers,
while Kia will see a higher rotation of buyers according to price or market trends.

Sources

https://www.interbrand.com/best-brands/best-globalbrands/2019/ranking/#?
filter=Automotive&sortBy=rank&listFormat=ls