Bmw & Audi

BMW vs. AUDIFair competition:

WIPO-US Advanced Summer School on Trademarks

Group # 2: BrandingCoordinator: 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. AUDIAUDI 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

2.

1.

External positioningSimilarities 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 PositioningProduct 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 PositioningProduct Positioning AUDI

External positioningTarget 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 positioningDirect competitors

BMW AUDI

Mercedes BMW

AUDI Mercedes

Porsche Acura

Infinity

External positioningKey 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 positioningConsumer’s perception

BMW AUDI

Powerful Reliable

Innovative Stable

Driving-dynamics Comfort

Secure Secure

Reliable Reliable

External positioningKey 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 positioningBrands 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)

GenesisHyundai

KiaK9

BMWBMW528i(3.0l)

AUDI AUDI A6

CompareConsumers

Main Target

Reasonable consumer

Reasonable consumer

TECH-ORIENTED

CONSUMERS

SOPHISTACED CONSUMERS

age Middle and old age people

Middle and old age people

25-34 years old 18%

45-54 years old 69%

Young- professional

people

Gender Man Man 38%-42% are women

-

Similarities Function,Size,

target consumer

Differences

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

ConvenientPost sale service

Convenient Post sale service

Expensive to fix,

Not convenient Post sale service

Expensive to fix

Not convenient Post sale service

Brand Value

Middle upper Middle upper High High

[Korean Luxury Car Market]

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 HoeyVivian SilvaJosé Roberto de Almeida Jr.Pandit RommelDwi ElfridaMario PozziMinkuy KimAiden Ung ChoiAnders KarlssonMelanie Jezler Olga FrolovaTetiana Romat

WIPO-US Advanced Summer School on Trademarks

Group # 2: BrandingCoordinator: Ms. Deli Yang