Assignment Topic

Pick a category dominated by two main brands.

1. Evaluate the positioning of each brand.

2. Who are their target markets?
3. What are their main Points-of-Parity and Points- of-Difference?
4.. Have they defined their positioning correctly? How might it be improved?
BMW headquarters in Munich, Germany
 Some Information About ‘BMW’

Type Aktiengesellschaft (AG)
Traded as FWB: BMW
Industry Automotive
Predecessor Rapp Motorenwerke
Bayerische Flugzeugwerke AG (BFW)[1]
Automobilwerk Eisenach
Founded 7 March 1916; 100 years ago
Founder Franz Josef Popp, Karl Rapp, Camillo Castiglioni
Headquarters Munich, Bavaria, Germany
Area served Worldwide
Key people Norbert Reithofer
(Chairman of the Supervisory Board)
Harald Krüger
(Chairman of the Board of Management)
Products Luxury vehicles, sports cars,motorcycles, bicycles
Production output 2,117,965 Automobiles (2014)
about 120,000 Motorcycles (2014)
Revenue €80.401 billion (2014)[2]
Operating income €8.707 billion (2014)[2]
Profit €5.817 billion (2014)[2]
Total assets €182.72 billion (2015)[2]
Total equity €3.839 billion (2014)[2]
Owner Stefan Quandt: 29%
Susanne Klatten: 21%
Public float: 50%
Number of employees 116,324 (2014)[2]
Divisions Mini
BMW Motorsport
BMW i
BMW Motorrad
Subsidiaries List[show]
Slogan "Sheer Driving Pleasure" (Worldwide)
"The Ultimate Driving Machine" (United States,
United Kingdom)
"The Ultimate Driving Experience" (Canada)
Website BMW Group
BMW Automobiles
 Some Information about BMW History
Bayerische Motoren Werke AG (BMW) was exactly established in March 6  1916, with its
th

main production facilities and Headquarters still located in Munich until today. It came from
the fusion of two mechanical firms in Munich, in Bavaria, the Flugmaschinenfabrik Gustav
Otto and Bayerische Flugzeug-Werke AG (BFW) in 1916. The company was originally an
aircraft-engine manufacturer, but then switched to motor-engine production for motorcycles,
cars and trucks, following the defeat of Germany during the WWI. The building of aircraft
engines only started again during the WWII for the German Airforce, as the firm was
classified as armaments Company.

ABOUT LOGO: The BMW emblem, which represents a rotating propeller reminds of its
former activity, and incorporates the state colours of Bavaria started to be display on the
products since 1917. The emblem is eventually used as a logo.

ABOUT INNOVATION: Being known until then as a supplier of engines, BMWannounced

its first motorcycle, the R 32, in 1923. Nevertheless, it officially became an automobile
manufacturer in 1928, with the first BMW small car, and officially established itself as
a luxury and premium carmaker with the first post-war automobile (seating up to six
people): the BMW 501. The company began to make a breakthrough from 1961 with the
model 1500, and started its international expansion with subsidiaries abroad, the foundation
of MBW Motorsport, the opening of the BMW Museum and acquisitions.
Today, the BMW groups owns 3 strong premium car brands: BMW, Mini and Rolls-Royce.
 The Story Behind Mercedes-Benz

ABOUT PREODICAL PAST: Mercedes-Benz is one of the three major

automotive companies in Germany. The brand was born when the two oldest car
manufacturers in the world, Daimler-Motoren-Gesellschaft (DMG) and Benz &
Cie., merged to become Daimler-Benz AG in 1926. Karl Benz, the co-founder of
Dailmer-Benz, is considered as the inventor of the first petrol-powered car.

During the world war and until the end of the 1940s, Mercedes-Benz had a set
back due to the damage done by air strikes and the complexity of the political
situation in Germany. The company regained its position during the 50s with the
introduction of new passenger car and truck models. This period of time represents
a renaissance phase of Mercedes-Benz as it restored its pre-war status as a
luxurious and prestigious brand. In 1959, Mercedes-Benz was the first car
manufacturer to apply crash tests for its new models, which is a process adopted by
all automobile manufacturers today, to ensure the safety of its vehicles.
ABOUT THE MANUFACTURER: Mercedes-Benz (German pronunciation) is a global automobile
manufacturer and a division of the German company Daimler AG. The brand is known for luxury
vehicles, buses, coaches, and trucks. The headquarters of Mercedes-Benz is in Stuttgart, Baden-
Württemberg, Germany.

The name first appeared in 1926 under Daimler-Benz, but traces its origins toDaimler-Motoren-
Gesellschaft's 1901 Mercedes and to Karl Benz's 1886 Benz Patent-Motorwagen, which is widely
regarded as the first gasoline poweredautomobile. Mercedes-Benz's slogan is "The Best or Nothing".
Mercedes-Benz is one of the most recognized automotive brands worldwide. [1]
 Brand positioning
(BMW and Mercedes-Benz)

The brand`s positioning is the place in the consumers mind that you want your brand to own. It is the
benefit you want your consumer to perceive when they think of your brand. A strong brand position
means that the brandhas a unique, credible and sustainable positionin the mind of the consumer.
 Brand Positioning : POPs & PODs

Points of parity:  
"Associations that may be shared with other brands" (Keller).

Point view of BMW:

Points of Difference:
- Performance
- Style
- Technology

Point view of Mercedes-Benz

Point of parity
Superior Products &
Customer Experience
Market Leading Brands
Innovation & Technology
Leadership
Operational Excellence
High Performing,
Inspired People
• Constantly leading & profitable
large cars
• New attractive compact cars
(MB/smart)
• Delightful customer care
Brand positioning and claim
Green technology leadership
• Cooperations
• Powerful sales & service organization
• Excellence

Point of difference
1. Perfectly positioned brand and effective marketing
2. Fascinating products
3. Delightful customer care
4. Retail network ready for the future
5. Efficient, integrated processes and systems
6. Motivated, qualified employees
7. Effective market penetration

Terget Markets
 (BMW and Marcedes Benz)
***When designing the product line, the company researched the best target market, deciding
that the product line would best reach people between SEGMENTETION criteria.

A target market is a group of customers a business has decided to aim its marketing
efforts and ultimately its merchandise towards. A well-defined target market the first element of
a marketing strategy.

A target market is a group of people considered likely to buy a product or service. [3] A target
market consists of customers that share similar characteristics, such as age, income and lifestyle, to
which a business directs its marketing efforts and sells its products

Segmentation Criteria Target

BMW Mercedes
30-50 years old with 30-50 years old: with more.
Demographi Age 25-40 years old : BMW 25-40 years old : Mercedes
targets young people with wants to target young city
c modern design and dwellers
finishing (BMW X1)

Gender Males and Females Males and Females

Social Upper class: can afford
class the most high end cars
(Series 6, 7, X6, M,
etc.)Upper middle class:
can afford bottom of the
range and midrange cars
(Series 1, 3, 5, etc.)
Psychographic Succeeder: confidence, stability,
strong goal orientation, material
Marcedes Benz don’t
look at the customer
comfort,… Car choice based on who want miles for
prestige, status symbol, quality.
prtol/fuel.
Aspirer: materialistic, oriented
extrinsics, acquisitive, material
comfort,… Appearance, status
Lifestyle Loyalty degree

Behavioral Loyalty degree High High

Benefits Status symbol, comfort,
sought prformance

Successful positioning
(Correctly positioning)

BMW Marcedes benz

BMW Group is a famous auto YES, BMW is also success. They

company all over world. continuing business over 100+
countries including Bangladesh.
BMW Group employs more than 1
million employees in more than
40 countries. BMW Group has
worldwide subsidiaries and
manufacturing plants in Germany,
the UK, the USA, Egypt, China,
South Africa, Brazil, South Africa
etc.
BMW: Keller’s brand
resonance pyramid
Mercedes-Benz: Keller’s brand
resonance pyramid
 For Successful Brand Positioning

1.  Identify Core Benefits…In Their Own Words

Federal Express, for example, taps into the benefit of trusted

delivery "when it absolutely, positively, has to be there overnight!" Kraft
Mac and Cheese could say it has a rich cheese flavor, but "It's the
cheesiest" is better consumer language.

2.  Avoid Testing "Shades Of Grey“: what will happen do it.

3.  Build In Perspective: in addition to your new positioning statements,

include either the brand's current positioning or a competitive
positioning in the study. This will provide perspective on how each
positioning performs in absolute.

4.  Get The "Why" as well as the "What"

5.  Agree On What Success Looks Like.