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At the same time, it wanted to make the
existing BMW loyalists proud of the company's success story.
According to the company, the dynamic campaign was aimed at the
creative class6 -
consumers who shared many of BMW's principles - an independent
spirit, a drive to challenge conventional wisdom, and an
appreciation for a brand's ability to offer both substance and
style.
Though the ads received rave reviews from various quarters, some
analysts felt that BMW was losing its soul by moving away from
the theme of "driving" and "performance." |
According to marketing expert Al Ries (Ries), BMW
owned the word "driving" and this had been etched in the minds of
consumers over a period of three decades with the tagline "The Ultimate
Driving Machine." Critics contended that when a strong niche brand like
BMW tries to diversify and expand its core customer base, it may cause
confusion among customers. They felt that in trying to be everything to
everyone, BMW might dilute what its brand stood for. They felt that BMW
should stick to what it was best at - "the ultimate driving machine" and
leave the softer aspects to Mercedes, Lexus and Cadillac.
But others felt that there was nothing wrong with BMW trying to expand
its customer base. They argued that since BMW held the second position
in the luxury car segment in the US market and its sales had been on the
rise over the past decade, all those people buying it could not have
been only yuppies. With a change in perception, more people would
eventually start considering BMW. They felt that as long as BMW did not
really change its core philosophy that it builds the ultimate driving
machine, it would not lose its existing customer base.
The debate notwithstanding, the BMW brand continued its growth trend in
the North American market in 2006 and 2007. However, with the company
remaining tight-lipped regarding the impact of the "Company of Ideas"
campaign it was difficult to ascertain whether the campaign had indeed
been able to reposition the BMW brand in North America.
With worldwide sales of 1,276,793 BMW branded vehicles in 2007 (growth
of 7.7 percent compared to 2006), BMW AG seemed to be well on its way of
achieving its 1.6 million mark by 2010.7
For the year 2006, the growth rate of BMW branded vehicles was 5.2
percent (compared to 2005).8
The BMW branded vehicles' growth rate worldwide had clearly outpaced the
brand's growth rate in North America.
Additional Readings & References
1. David Kiley, "BMW Targets New Drivers," www.businessweek.com, May 5,
2006.
2. Richard Williamson, "BMW Targets 'Creative Class'" www.adweek.com,
May 5, 2006.
3. "BMW Losing its Soul," www.professorbainbridge.com, May 8, 2006.
4. "BMW Unveils New Advertising Campaign," www.bmwusa.com, May 8, 2006.
5. Neal E Boudette and Gina Chon, "Brawny BMW Seeks 'the Idea Class'," www.moneyweb.co.za, August 2, 2006.
6. "BMW Group Sets New Sales Record in 2006," www.bmwgroup.com, January
8, 2007.
7. "BMW Group Reports 7.1 Percent Sales Increase in 2007," www.autospectator.com, January 5, 2008.
8. "BMW Group Report 7.1% Increase in 2007 Sales," www.carbuyersnotebook.com, January 3, 2008.
9. "BMW Says 2007 Sales Up 9.2 Percent," www.businessweek.com, January
9, 2008.
10. www.en.wikipedia.org.
Cases on Related Topics
1.
BMW's "Company of Ideas" Campaign: Targeting the "Creative Class"
2.
Mass Customization: The BMW Way
3.
BMW's Innovation Strategies
4.
BMW Going on the Offensive
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6] The creative class included scientists, engineers,
architects, educators, writers, artists, and entertainers. The creative class
was an idea proposed by marketing expert, Richard Florida, a Carnegie-Mellon
University professor, who had written three books on the subject.
7] "BMW Says 2007 Sales Up 9.2 Percent," www.businessweek.com,
January 9, 2008.
8] "BMW Group Sets New Sales Record in 2006," www.bmwgroup.com,
January 8, 2007. |
