Product Decisions: BMW Going More Upmarket?


BMW’s in the United States have always been considered to be an indulgent purchase or a status symbol.  When you see someone with a BMW, there is a certain stigma about them.  However, globally, and specifically in Europe, BMW’s are more common cars, driven by families and working class folks.  BMW’s design department plays a key role in how the cars make consumers feel.  BMW is trying to bridge those gaps in the way their brand is perceived, and also trying to diversify and appeal to a broader consumer base.  With the introduction of its i-brand cars (electric cars), the mainstream sellers (such as the 3 and 5 series sedans and wagons), and now its new Bayerische Motoren Werke models, they are appealing to eco-friendly people, the everyday family and entry level luxury segment, and with super luxury segment.
            With the introduction of this Bayerische Motoren Werke line of super-luxury BMW’s, it seems as if the company is playing into the Country of Origin as a brand element.  BMW’s have always been known to be the Ultimate Driving Machine, however there have been confusions around the brand origins.  I attended a marketing presentation for REDay at Bryant University, and the young lady presenting was adamant that BMW stood for “British Motor Works”.  By spelling out the name in full, BMW is promoting their lineage, and also touting the well-known fact that German engineering is superb and of high quality.  This German heritage carries great positive weight in markets globally.  Possibly, BMW’s can appeal to an even greater luxury segment with this new spinoff of cars, possibly competing with Rolls Royce and Bentley.
https://www.autocar.co.uk/car-news/industry/insight-how-bmw-reinventing-its-design-and-going-upmarket

Comments

  1. AnonymousApril 19, 2018 at 6:08 PM

    Hi Cam, I thought this was a great blog. In my opinion BMW is currently positioned as an "everyday luxury" and it seems like it's a car that is affordable for a broad range of consumers. I wonder if they should pursue this strategy to attract more luxury buyers. On the other hand, it could backfire and both brand lines could suffer.

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