BMW India - Designing Marketing Programs to Build Brand Equity

BMW India – Designing Marketing Programs to Build Brand Equity

This case frame is based on BMW India’s advertisement published on July 13^th 2015 in The Economic Times, Mumbai Edition, announcing its Chennai plant being operational. While BMW is proud to make in India, would India’s discerning consumers be equally proud of its legacy? Would this pride translate into Brand Equity? What does this advertisement convey when read with the elements of building a brands’ equity? Does a clinical analysis of every bit of the advertisement throw any light on the purported and intended brand values signifying what BMW stands for? What do these insights say about BMW’s Brand Equity?......................

I. New Perspectives on Marketing

1. What does this advertisement indicate about the umbrella brand and the sub-brands?

2. What do the following signify in the advertisement:

a. The hand that holds the BMW insignia
b. Placing the BMW’s logo

3. Does ‘Proud to Make in India’ resonate well with Indian Government’s ‘Make in India’ campaign?

4. .....................

II. Product Strategy

1. How many of you have bought and used any machine at a personal level? What insights would we get when we contrast the ‘Magnificent Machines’ with other machines?

2. What is your analysis of ‘Proud to Make in India’? Having entered India in 2006 and began operating through the CKD route, what does the statement indicate especially on Brand India?

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III. Pricing Strategy

1. When the advertisement says, ‘Call now for Brand New Prices’ what does it indicate with reference to pricing?

2. What are your price perceptions of BMW products? What would be your ‘Willingness to Pay’, for example BMW 3Series?

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IV. Channel Strategy

1. When you read “…are now also made in India”, what does it indicate from the point of view of India being a preferred manufacturing location for BMW after so many years?

2. Does the manufacturing location i.e., Chennai highlight anything with reference to BMW’s brand philosophy?

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BMW India – Designing Marketing Programs to Build Brand Equity

Synopsis

This case frame offers an overview of different Marketing Programs designed to build Brand Equity. It further connects the BMW India’s advertisement with the four key elements of Designing Effective Marketing Programs – New Perspectives on Marketing, Product Strategy, Pricing Strategy and Channel Strategy – to build Brand Equity.

Prerequisite Conceptual Understanding (PCU)/Before the Classroom Discussion

This case frame presupposes that students/participants have access to laptops with an internet connection for discussing and debating on some of the questions featured in the case frame, as some of them would require additional information. Also, to make it more interactive and engaging, getting the relevant information at appropriate part of the analysis would complement this case frame analysis.

The students/participants must have an understanding of the different Marketing Programs designed to build Brand Equity. The participants were asked to read the following chapter, to help them better connect the concepts:

• • Kevin Lane Keller, et al., “Designing Marketing Programs to Build Brand Equity”, Strategic Brand Management, 3rd Edition, Pearson Education Inc., 2011– To understand how Marketing activities and programs help in building Brand Equity

Case Positioning and Setting

• • This case frame can be used in either MBA Program or in MDPs for Brand Management Course for “Designing Marketing Programs to Build Brand Equity” module – To understand how Marketing activities – Product, Pricing and Distribution Strategies help to build Brand Equity

Case Frame Analysis and Classroom Discussion

Preamble to this Case Frame Analysis

This case frame’s purpose is to sensitize the participants/students to the relevance and rigor involved in designing marketing programs, to build brand equity. In the light of BMW India’s announcement of the start of manufacturing its automobiles in Chennai, this case frame elaborates on the key elements of marketing programs – Integrated Marketing, Product Strategy, Pricing Strategy and Channel Strategy – designed to build brand equity in India. Accordingly, the case frame was orchestrated in the following way [Exhibit (TN)-I]:...................

I. New Perspectives on Marketing

The purpose of Section I of the case frame was to help the students/participants understand what the terms Umbrella Branding, Brand Positioning and Experiential Marketing connote in the real world. By connecting these concepts to Brand Management this case frame helps the students/participants to understand how reconciling these marketing approaches would result in building a Brand’s Equity.

The following capture the points of discussion/analysis for the questions outlined in the case frame.

What does this advertisement indicate about the umbrella brand and the sub-brands?

• Bayerische Motoren Werke AG (English: Bavarian Motor Works), popularly known as BMW, is a German automobile, motorcycle and engine manufacturing company founded in 1916. BMW is headquartered in Munich, Bavaria, Germany. BMW began its operations in India in 2006 as a wholly-owned subsidiary of BMW Group, Germany with its India headquarters in Gurgaon, Haryana. It has a manufacturing plant in Chennai which officially started production in India in March 2007, largely through assembling. Exhibit (TN)-II captures the breadth and depth of product variety available in India from the stable of BMW................

Exhibits

Exhibit (TN)-I: Classroom Discussion Dashboard

Exhibit (TN)-II: BMW India Product Line

Exhibit (TN)-III: BMW India Umbrella Branding

Exhibit (TN)-IV: BMW India Experiential Marketing Initiative

Exhibit (TN)-V: Perceived Quality and Value of BMW India Automobiles

Exhibit (TN)-VI: BMW Product Strategy

Exhibit (TN)-VII: Framework of Pricing Strategy

Exhibit (TN)-VIII: Consumer’s Price Perception w.r.t. Willingness To Pay

Exhibit (TN)-IX: Factors that Form Consumer’s Price Perceptions

Exhibit (TN)-X :BMW Prices Post The Proud To Make In India Campaign

Exhibit (TN)-XI: Consumers’ Price Perceptions w.r.t. BMW’s Brands

Exhibit (TN)-XII: BMW’s Omni-Channel Presence

Exhibit (TN)-XIII: Country-wise BMW Logos on Website

Exhibit (TN)-XIV: BMW Logo with its Dealer Names

Exhibit (TN)-XV: BMW India’s Brand Equity w.r.t. CBBE Model

Exhibit (TN)-XVI: Key Elements of an Effective Marketing Program

Annexure (TN)-I: BMW 5 Series Saloon Catalogue