Name Roll No.

Manoj Gupta21

Fauzia Hasan22

Vinod Iyer 23

Pramod Jadhav24

Sameer Jadhav25

Nilesh Jain 26

Rajesh Jain 27

Fazeel Kazi 29

Prashant Kokare31

LUXURY BRANDS

“Luxury brands are more than the goods. They give people the opportunity to live a dream. The goods are secondary because first of all you buy into a brand, then you buy the products.” Robert Polet - CEO of Gucci

Everyone wants but nobody needs, Huge Comfort, Best of the Best

Luxury Brands – A Life Well livedLuxury Brands – A Life Well lived

Global Market Size =

$1.6Tn growing 7.9%

Indian Luxury Market =

$20Bn growing 20%

US market for luxury cars

Bayerische Motoren Werke GmbH

BBMMWWSUCCESS STORY

The BMW Group is the leading provider of premium products and premium services for individual mobility

BMW – The CompanyBMW – The Company

1916RMW (Rapp Motoren Werke ) is founded as an aircraft-engine factory in Munich. In 1917, Changed to BMW.

1923The first BMW motorcycle leaves the Munich production site.

1928The first BMW automobile, the Dixi 3/15, developed in Munich.

1955The BMW 503 and 507 sports cars are today’s 'golden oldies'.

1962The 1500 model establishes the trend for the "new class" of sporty compact touring cars.

1981BMW becomes the first European carmaker to establish a subsidiary in Japan.

 

1977BMW introduces the first 7 Series car. The 733i sets new standards in technology, design and equipment.

2008More than 140 countries, 28 plants1.5Mn cars, 107,593 employees$70Bn revenue $2.2Bn Net Profit

The blue & white circular logo BMW still uses alludes to the blue & white The blue & white circular logo BMW still uses alludes to the blue & white checkered flag of Bavaria and also indicates a spinning white propeller on a checkered flag of Bavaria and also indicates a spinning white propeller on a

blue-sky background.blue-sky background.

Brand Identity - LogoBrand Identity - Logo

Three Authentic Premium BrandsThree Authentic Premium Brands

Sheer driving pleasureSheer driving pleasure

Most exciting premium small car brandMost exciting premium small car brand

The pinnacle of automobile luxuryThe pinnacle of automobile luxury

1.3 Mn 1.3 Mn UnitsUnits

200k 200k UnitsUnits

1000 1000 UnitsUnits

Customer Customer Deliveries Deliveries

20082008 Brand Extension

Vehicle related Products

•Car Finance

•Lease

•Fleet Management & Consulting

•Automotive Insurance

•Extended & Used Car Warranties

Non Vehicle related Products

•Real Estate Loans

•Credit Cards

•Fixed-Term Deposits

Brand Positioning strategies

Product DifferentiationProduct Differentiation communicate valued communicate valued

differences and distinguished differences and distinguished by image (premium brand)by image (premium brand)

quality (cutting edge quality (cutting edge technology) & design (sleek technology) & design (sleek and unique)and unique)

Brand Leadership Brand Leadership PositioningPositioning

BMW- maintained leadership BMW- maintained leadership for many yearsfor many years

consistent strategy consistent strategy oriented towards meeting oriented towards meeting

customer needscustomer needs

Head-On Positioning (comparative positioning)

BMW - Little comparison between BMW and Mercedes

Comparison only in customers mind

Innovation Positioning Practices continuous innovation. Eg :redesigned 3-series model with better

power , stiffer suspension, taillight lenses.

THE ULTIMATE DRIVING MACHINE

Residual Value

One Word Equity (O.W.E) – Saatchi & Saatchi

BMW – Driving pleasureBMW – Driving pleasure Volvo – SafetyFerrari – Living-on-the-edge Lexus – Perfection

Price PositioningCaters to high end customers

High price supreme quality

Range:Rs. 2.6Mn to Rs. 70Mn (RR Phantom Coupé)

Lifestyle PositioningYoung urban professionals (YUP)“status” associated with it.

Brand Positioning strategies

Brand Promise:

Any road, any conditions, any timeMore than just a luxury carOverall StrategyOverall Strategy

Respect for the individual Respect for the individual

Brand Identity Prism

Personality

• Young• Fun to drive• Desirable

Culture • German – Competent & Serious , Quality

• International mindset

Consumerself-projection

• Status • Esteem

• Sleek• Exclusive• Sporty

Physique

•Brings ‘excitement’ to life Relationship

• Cars for man's pleasure• Prestige

Consumerreflection

Efficient Stylish, Attractive

Exciting, Trendy

Aspirational, Status-conscious

Rational Sensory Emotional Symbolic

Brand Values

Brand POP & POD

Point of DifferenceStrong, favorable, unique brand associations - Exclusivity

Types:Attribute Based - Performance Image Based - Affective, experiential, brand image

Point of Parity Associations that are shared with other

brands - - Luxury

Types: Category: attributes to include BMW as a

member of Luxury Brand Competitive: POP that negate competitors

PODs – Affluence, Fun to drive

1971 19751985

•Economical•Excitement to life

Affluence

Exclusivity• International

• Desirability

1991

Luxury prestige

Fun to drive

BMW– “Always Compete & Perform”

Low

Low

High* Mercedes

BMW*

* Jaguar

Toyota(Lexus)*

* Alfa

*

Volvo

Honda(legend)* * Audi

*Saab

High

PERCEPTUAL MAP

A car prestigious to own

A f

inan

cial

ly e

ffec

tive

car

High price

OpulenceÉlégance

Quality Engineering

Perform

Efficiency

Stylish

Comfort

Élite dealership

Resale valueSophisticated

Prestige

BMW MENTAL MAP

BMW Fuel Economy Fuel consumption [Ltr./ 100 km]

6.4 Ltrs

8 LtrsCompetitors

* EU Test

Brand Resonance Pyramid

Feelings Fun to Drive

Judgments Compete &

Perform

Performance

Any road in any condition

Best Performance

Imagery

Dependable, Luxurious

Resonance Elegance

Salience Innovative

Innovation Engineering & Technology

Understands high

performance

Enhances the joy of driving

Exhilarating driving experience

Has superior handling

Dominates the luxury car category

Ad Wars

EDSEL backronym: "Every Day Something Else Leaks!

Brand Failures The EdselBrand Failures The Edsel

Biggest Luxury Car failure

in American history

Introduced in 1957 by Ford Motor Company

Produced in 4 models, Ford’s investment of $400m

in its development

Innovations:" rolling dome" speedometer, self-

adjusting brakes

Aggressively marketed and hyped: “Edsel Show",

teaser advertisements

Sold through a new network of 1,500 dealers

Why it failed:Why it failed:

“Never build up enthusiasm for unseen, unproven product” - PR Director Edsel

•Named after Henry Fords son

•Sounded like Edson- an unpopular tractor

•Weasel(mammals)

•Dead cell

•Ugly ducklings don’t always become swans

•Nothing uniquely different

•Cultural issue with grill

Hyping untested product:

Name matters:

Looks count:

Why it failed:Why it failed: : High price not justified in public’s mind

: Competing against its own sister divisions

: Priced within Mercury’s market price

segment

:Little market research

: Huge sums to decide name instead( poets hired)

: Bad quality control

: Parts missing when reached dealers

:Too big when small was in, not fuel efficient

:Robert McNamara new Boss

: Cost cutting and cost containment ideas

: Saved Ford but Edsel discontinued

Pricing

Right research important

Product Quality

Recession

Internal politics

: High price not justified in public’s mind

: Competing against its own sister divisions

: Priced within Mercury’s market price

segment

:Little market research

: Huge sums to decide name instead( poets hired)

: Bad quality control

: Parts missing when reached dealers

:Too big when small was in, not fuel efficient

:Robert McNamara new Boss

: Cost cutting and cost containment ideas

: Saved Ford but Edsel discontinued

Pricing

Right research important

Product Quality

Recession

Internal politics