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              WIPO-US Advanced Summer School on Trademarks

              Group # 2: Branding
              Coordinator: Ms. Deli Yang
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.
AUDI 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.
1.


2.
Similarities 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)
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
Target 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
Direct competitors


BMW                            AUDI


Mercedes                       BMW


AUDI                           Mercedes


Porsche                        Acura


                               Infinity
Key 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
Consumer’s perception


BMW                                AUDI


Powerful                           Reliable


Innovative                         Stable


Driving-dynamics                   Comfort


Secure                             Secure


Reliable                           Reliable
Key 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
Brands 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
(Focus on Korea luxury car market)
[Korean Luxury Car Market]




                            Genesis                Kia                  BMW                   AUDI
                            Hyundai                K9                BMW528i(3.0l)           AUDI A6

Compare     Main          Reasonable           Reasonable          TECH-ORIENTED          SOPHISTACED
Consume     Target         consumer             consumer            CONSUMERS             CONSUMERS
rs
            age          Middle and old     Middle and old age    25-34 years old 18%   Young- professional
                          age people             people           45-54 years old 69%        people
            Gender            Man                  Man               38%-42% are                 -
                                                                       women
      Similarities                                            Function,
                                                                Size,
                                                           target consumer
Differe      Slogan      New Thinking,        The power to          Sheer for driving   Lead of technology
nces                    New possibilities       surprise
              price         $43,358              $54,166                $57,000              $57,333

            Post sale     Convenient           Convenient           Expensive to fix,    Expensive to fix
             service    Post sale service    Post sale service      Not convenient       Not convenient
                                                                    Post sale service    Post sale service
              Brand      Middle upper         Middle upper                High                 High
              Value
 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
Tineke Van Hoey
Vivian Silva
José Roberto de Almeida Jr.
Pandit Rommel
Dwi Elfrida
Mario Pozzi
Minkuy Kim
Aiden Ung Choi
Anders Karlsson
Melanie Jezler
Olga Frolova
Tetiana Romat


                    WIPO-US Advanced Summer School on Trademarks

                    Group # 2: Branding
                    Coordinator: Ms. Deli Yang

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Korean Luxury Car Market Comparison

  • 1. Fair competition: WIPO-US Advanced Summer School on Trademarks Group # 2: Branding Coordinator: Ms. Deli Yang
  • 2.
  • 3. 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.
  • 4. AUDI 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.
  • 6. Similarities 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)
  • 7. 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
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  • 9. Target 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
  • 10. Direct competitors BMW AUDI Mercedes BMW AUDI Mercedes Porsche Acura Infinity
  • 11. Key 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
  • 12. Consumer’s perception BMW AUDI Powerful Reliable Innovative Stable Driving-dynamics Comfort Secure Secure Reliable Reliable
  • 13. Key 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
  • 14. Brands 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
  • 15. (Focus on Korea luxury car market)
  • 16. [Korean Luxury Car Market] Genesis Kia BMW AUDI Hyundai K9 BMW528i(3.0l) AUDI A6 Compare Main Reasonable Reasonable TECH-ORIENTED SOPHISTACED Consume Target consumer consumer CONSUMERS CONSUMERS rs age Middle and old Middle and old age 25-34 years old 18% Young- professional age people people 45-54 years old 69% people Gender Man Man 38%-42% are - women Similarities Function, Size, target consumer Differe Slogan New Thinking, The power to Sheer for driving Lead of technology nces New possibilities surprise price $43,358 $54,166 $57,000 $57,333 Post sale Convenient Convenient Expensive to fix, Expensive to fix service Post sale service Post sale service Not convenient Not convenient Post sale service Post sale service Brand Middle upper Middle upper High High Value
  • 17.  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
  • 18. Tineke Van Hoey Vivian Silva JosĂ© Roberto de Almeida Jr. Pandit Rommel Dwi Elfrida Mario Pozzi Minkuy Kim Aiden Ung Choi Anders Karlsson Melanie Jezler Olga Frolova Tetiana Romat WIPO-US Advanced Summer School on Trademarks Group # 2: Branding Coordinator: Ms. Deli Yang