BMW

INTRODUCTION

With a business strategy centered around a strong brand image (status and driving pleasure), Bayerische Motoren Werke (BMW), has been called the marketing king of automobiles. It is considered to be the world no.1 premium car company, owning both Rolls Royce and MINI. The mission of BMW is to be the world’s leading provider of premium products and premium services for individual mobility.

The luxury car manufacturer targets people that value superiority, performance, reliability, quality and social status, who are successful in their careers and belong to the upper class. Through this target group BMW has developed a brand image that represents quality, technologically advanced, high performance and exclusivity.

BMW has a strong focus on the customers, and work towards enhancing the customer experience (which is partly done through their flagstores). In addition to this BMW is famous for having an exceptional customer service. This focus on not just offering quality cars, but quality service and experiences functions to strengthen their brand image and causes BMW to develop very loyal customers.

Their customers expects not just quality but also exclusivity which is why BMW does not go through car distributers but through showrooms. These showrooms are often located in the prime parts of urban cities, and to strengthen the feeling of exclusivity these showrooms are kept to a minimum. Even in huge cities you can only find 2-3 BMW showrooms.

Their original take on marketing sets them apart from other car manufacturers, and they have developed content such as films, advergames, virtual test drives etc. Most of their TV ads are sleek and in a higher quality than most car adverts, and they tend to focus on look, engine and technology which ties nicely with their slogans ; The Ultimate Driving Machine (USA, UK & Australia) and Sheer Driving Pleasure (Worldwide).

"THE ULTIMATE DRIVING MACHINE"

THE BRAND EXPERIENCE

BMW has a strong focus on the customers, and work towards enhancing the customer experience. Their customers expects not just quality but also exclusivity which is why BMW does not go through car distributers but through showrooms. These showrooms are often located in the prime parts of urban cities, and to strengthen the feeling of exclusivity these showrooms are kept to a minimum. Even in huge cities you can only find 2-3 BMW showrooms.

BMW is famous for having an exceptional customer service. This focus on not just offering quality cars, but quality service and experiences that functions to strengthen their brand image. It is by doing this BMW have been able to develop very loyal customers.

In addition to letting its customers take the different cars for test drives, BMW also allows them to customise their own car with BMW individual. It allows you to "Accentuate your own character with genuine exclusivity". In other words, you can choose from a range of 100 different colours, add shimmer, choose between a matt or a metallic look, and add personalised detail.

Create “Relevant and snackable” content that engages consumers beyond cars.

ONLINE

In 2019 BMW relaunched its website with the focus on content that could increase their flow of upper-class visitors. The website therefore includes interesting content around lifestyle, design, innovation and fashion. The purpose of the website is to use a mobile, content-led approach to attract more customers, to use "relevant and snackable" content to engage consumers beyond cars. After the new site was launched the website has already increased mobile visitors by 27%, and it is getting 49% more site visits through SEO. In addition to this the average user is now spending on average 3 minutes on the site. The content comes in an easy-to-digest format, and includes articles, videos, photography etc and nearly every article contains some sort of infographics.

ORIGINALITY

EYES ON GIGI - AN ADVERGAME

In 2016 BMW launched a campaign called Eyes on Gigi, introducing the launch of the first ever BMW M2. This campaign features an advergame (video game that functions as an advert) that is a new twist on the classic three-cup-shuffle game where the ball is Victoria’s Secret model Gigi Hadid and the cups are 365-horsepower BMW M2s. Similar to the BMW films, it was directed by a huge Hollywood director (Marc Forster who directed Quantum of Solace and Finding Neverland). The interactive video experience starts off with Gigi getting into one of three M2s, and as all the cars, start driving two other cars are added to the mix making it more difficult to follow Gigi. The game is filmed in 360 degrees and the viewer therefore has to rotate around to keep track of the cars. To create this, BMW director Marc Foster worked together with cinematographer Mauro Fiore (Avatar, Training day, and Stunt Coordinator Eric Norris, who also is a former stock car racing driver).

BMW FILMS

In the early 2000 BMW realised that a lot of their customers were spending more time on the Internet than watching TV. In fact, 85% of BMW customers used the internet to do research about the car they were buying. Take note that this was before youtube and today’s social media, when the internet had less than 500 million users! It was therefore crucial for BMW to use the internet for advertising. However, instead of investing in pop-ups and banner ads, Jim McDowell (twiced named Marketer of the Year) decided to try something new in order to strengthen the brand’s PR status. Together with directors like David Fincher (Seven, Fight Club etc) they developed eight short films as part of the series «The Hire» with the famous actor Clive Owen as the main character. By using famous Hollywood names it generated a lot of talk and excitement. The aim was to not portray them as adverts, but instead focus on having an interesting story centered around the car. What BMW realised was that most people ignore ads, but 5 minute films can be engaging and remain stuck in people’s mind.

These films received several awards, and were given good reviews in papers like New York Times, USA Today. In addition, Harvard Business School had a case study with the films featured as part of the Museum of Modern Art Archies. In North America this led to a 12,5 % increase in sales. BMW created another short film in 2016 called the escape, which was very well received.

By creating these high quality, well executed, action-filled films, BMW offers its customers and fans content in the form of entertainment. Through these films BMW was able to reach their customers without using the typical annoying ads and at the same time connect the car to premium people. This therefore also strengthens the idea that this car will gain you social capital (because you will drive the same car as Clive Owen), which creates a pull effect. In addition, these films strengthens the brand image as the Ultimate Driving Machine.

BMW WORLDWIDE

When it comes to global marketing, BMW does not move away from their strong focus of reaching consumers with a high standard for quality, luxury and performance. It therefore, even on a global scale, concentrates on specific segments. BMW changed it global slogan from «the ultimate driving machine» to «sheer driving pleasure», which represents a movement from the strong focus on the car’s performance, to the customer’s experience. The strategy of BMW is therefore to lean into a more emotional, sensual marketing communication. It connects the enjoyment of driving a luxury car with emotional experiences. In addition, BMW is aware of differences between the countries, and therefore knows that a strong worldwide brand identity does not necessarily mean that the marketing strategies will be successful in the different local market. hence, BMW has a strong focus on a marketing strategy system called global branding and localised marketing.

When comparing adverts from Europe and America to the adverts displayed in Asia, it is possible to see how BMW seems to put the emphasis on the same thing : the feeling of driving the car. However, this is shown through different things. In the west this feeling is being connected to the superiority of design and technology with an emphasis on luxury, whilst in the east it is being connected to spirituality, nature, community, and being in the moment. BMW therefore very cleverly uses the values that will increase social status in the different cultures and connects it to the car.

CHALLENGES

BMW has developed a very consistent brand. By using people that have a high social status, and are considered to be premium within their field (such as famous directors, actors and models) in their adverts, campaigns, promotions etc, BMW strengthens their identity as being the world's no.1 premium car company. In essence BMW is not just selling its car, but the dream of being a happy, successful person with high social capital. In essence BMW is selling something you cannot buy, which might lead to disappointment if some consumers believe that the car will help them to fulfill this objective. By selling the idea that the car will help you become more premium, you might be able to convince a consumer to buy a car, but when the time comes and they have to buy a new one will they choose BMW again?

With the core identity of being premium and technologically advanced, BMW experiences that their brand image is being negatively affected due to the fact that recalling cars, on the account of technical functionality, is becoming more common. One example is when BMW had to recall 1.6 minion cars due to airbag concerns.

5 LESSONS FROM BMW

CREATE A STRONG BRAND IDENTITY
BMW has created a strong brand image that represents quality, technologically advanced, high performance and exclusivity, that shines through in everything they do.
MAKE YOUR BRAND A SYMBOL
BMW has established itself as a symbol of social status, and enhances this by using famous people in their marketing.
HIGH QUALITY CONTENT
BMW creates content that is engaging and remains stuck in people’s mind.
EXCEPTIONAL CUSTOMER SERVICE
Good customer service contributes to create customers who stay loyal to the brand.
SELL AN EXPERIENCE RATHER THAN A PRODUCT.
BMW changed the focus away from the car and over to the experience of driving the car (sheer driving pleasure). By connecting it to a feeling, BMW is able to resonate better with the customers.