Fair competition:

BMW vs. AUDI

WIPO-US Advanced Summer School on
Trademarks
Group # 2: Branding
Coordinator: Ms. Deli Yang

History & Philosophy.

BMW
BMW (Bavarian Motor Works) was founded in 1917 by
Franz Josef Popp.
After the end of World War I in 1918, BMW was the
aircraft engine producer.
The BMW Group is now one of the ten largest car
manufacturers in the world with its BMW, MINI and
Rolls-Royce brands.
The BMW Group is the only manufacturer of
automobiles and motorcycles worldwide that
concentrates entirely on premium standards and
outstanding quality for all its brands and across all
relevant segments.

History & Philosophy.

AUDI
AUDI AG is able to look back on an exciting and varied past It all began with August
Horch, one of Germany's pioneering personalities automobile engineers.
He set up business on his own in 1899, establishing Horch & Cie. Motorwagen Werke in
Cologne on November 14 of that year. Horch moved to Saxony in 1902, first to
Reichenbach then in 1904 to Zwickau, where the company was transformed into a
joint-stock corporation.
Following differences of opinion with the Board of Management and Supervisory Board,
August Horch left the company in 1909 and immediately established a second car
company in Zwickau. Because his surname was already in use and was protected by
trademark, he chose its Latin translation for the new company. So "horch!" or "hark"
became "audi!". Audi Automobilwerke GmbH itself became a joint-stock company in
December 1914.
The Audi brand established a tradition of sporting achievement from the very outset.
Thanks to his victorious involvement in the Austrian Alpine Runs between 1911 and
1914, August Horch succeeded in making Audi internationally known within just a few
years. After the First World War August Horch withdrew from the company and moved
to Berlin to work as an independent automotive expert.

Logo evolution
1.
2.

External positioning
Similarities in BMW and AUDI business strategies

Premium segment brands

Well known trademarks
Pricing diversity
Top-rated companies
Target consumers high-level social status
Big, structured businesses
No licensing or franchising options
Innovative
Universality (contemporary/classic, city/highway,
bachelors/families)

Internal Positioning
Product Positioning BMW

Mission statement:
The mission statement up to the year 2020 is clearly
defined:
the BMW Group is the world's leading provider of premium
products and
premium services for individual mobility
BMW Commercial

Internal Positioning
Product Positioning AUDI

External positioning
Target consumers

BMW

AUDI

25-40, Young adults, city-dwellers

Adults, mostly city-dwellers

Bachelors, families with 1 or 2

children

Bachelors, families with 1 or 2

children

CEOs, new generation of self-made

people

Executives, professionals

Comfort lovers, innovation savvy

Sophisticated, design & style addicts,

tech savvy

Self-driving consumers

Self-driving consumers / with

drivers

External positioning
Direct competitors

BMW

AUDI

Mercedes

BMW

AUDI

Mercedes

Porsche

Acura
Infinity

External positioning
Key differences (according to the self-brand positioning)

BMW

AUDI

Fuel efficient

Comfort

Better engines

Sophistication

Driving-dynamics

Better accident-prevention system

Youth-oriented design

Conservative and professional

Model and pricing diversity

External positioning
Consumers perception

BMW

AUDI

Powerful

Reliable

Innovative

Stable

Driving-dynamics

Comfort

Secure

Secure

Reliable

Reliable

External positioning
Key differences (Media&Marketing campains)*
*http://adage.com/article/media/advertising-bmw-audi-media-plan/145990 /

BMW

AUDI

Sponsoring events (Olympic Games 2012)

Product Placement (Iron Man-2,

Knight &Day)

Online and mobile medias

Broadcast, online and mobile video

programs

Magazines

Video placements on major sports

events (SuperBowl)

Online& Social ads

Comparative advertising

Creative concern

Buzz-advertising

External positioning
Brands mantras

BMW

AUDI

"Cheer driving pleasure

Advantage through Technology

Joy of driving

Truth in Engineering

The Ultimate Driving Machine

Truth in Motion

Cultural insight

Green Police

International
positioning
(Focus on Korea luxury car market)

[Korean Luxury Car Market]

Compar
e
Consum
ers

Genesis
Hyundai

Kia
K9

BMW
BMW528i(3.0l)

AUDI
AUDI A6

Main
Target

Reasonable
consumer

Reasonable
consumer

TECHORIENTED
CONSUMERS

SOPHISTACED
CONSUMERS

age

Middle and
old age
people

Middle and old

age people

25-34 years old

18%
45-54 years old
69%

Youngprofessional
people

Man

Man

38%-42% are
women

Gender
Similarities

Differ
ences

Function,
Size,
target consumer

Slogan

New
Thinking,
New
possibilities

The power to
surprise

Sheer for
driving

Lead of
technology

price

$43,358

$54,166

$57,000

$57,333

Post sale
service

Convenient
Post sale

Convenient
Post sale

Expensive to
fix,

Expensive to
fix

Conclusions
Strong high-end focus
Pricing diversification
Model portfolio diversification
Continuing focus on luxury, the
exclusiveness among brand-aware
Koreans.
Further positioning through
innovative and new channels

Thank you for your

attention!
Tineke Van Hoey
Vivian Silva
Jos Roberto de Almeida Jr.
Pandit Rommel
Dwi Elfrida
Mario Pozzi
Minkuy Kim
Aiden Ung Choi
Anders Karlsson
Melanie Jezler
Olga Frolova
Tetiana Romat
WIPO-US Advanced Summer School on
Trademarks
Group # 2: Branding
Coordinator: Ms. Deli Yang