Unlocking Branding Potential Across Countries - Assignment Example

Marketing Communication of the of the No. Contents Contents 2 Introduction 4 Background of the Companies 4 Product 5 Product Features 5 Audi A4 5 BMW 320i 5 Points of Parity 5 Points of Difference 5 Brand 6 Positioning 6 Message to the Customers 6 Strategy of Campaign 7 Marketing Communication Campaign 8 Campaign Objectives 8 Pre-launch Activities 8 Good and Bad Attempts of the Campaign 8 Audience Reaction 8 Marketing Campaigns 9 Social Engine Marketing 9 Online Advertisement 9 Social Media 10 Analysis of Marketing Communication 11 Best Company for Executing Campaigns 12 Best Company for Branding and Positioning 12 Best Company for the Consumers 12 Conclusion 13 References 14 Introduction Recently, the premium automobile industry has seen a surge in competition. All the companies launching a new car in the segment are immediately subjected to competition from another launch from a rival in the same segment. In order to attain an edge over competitors, the automobile companies are adapting new and innovative marketing communication. The project analyses the marketing communications, which are practiced by Audi in order to launch successfully its new product A4 and also captures the way in which another German car manufacturer, BMW, has posed serious competition with their 320i. Background of the Companies Audi AG is a German manufacturer of automobiles, involved in designing, engineering and distributing of the same. Since 1966, the brand is majorly owned by Volkswagen Group, who has re-launched the brand through Audi F103 edition. Bayerische Motoren Werke AG, famous by the name of BMW, is a German motorcycle and automobile manufacturing company, which was founded in 1916.Both the brands, Audi and BMW, are hugely successful worldwide. They have loyal consumer base and immense brand equity. Both these companies are well-known for upgraded technology and innovation. These are the brands that feature in the upscale mid-size car segment. Presently, with these two products, they are fiercely competing in the automobile market in the USA. Product Product Features Audi A4 Audi A4’s turbo-charged four cylinder engine generates huge power to the car. The front wheel drive models are provided with a continuously variable transmission (CVT). Whereas, the models with all wheel drive gets either an eight speed automatic transmission or a six speed manual. Drivers opined that with the precise and nicely-weighted steering system and powerful brakes, this car is favored by most. It has brilliant interior, balanced handling and also scores high in fuel economy (US News, 2014a). BMW 320i BMW 320i is equipped with turbo-charged four cylinder engine as well. This car equals in the mileage obtained with Audi 4, which is 24-36 mpg. 320i has a spacious interior with more cargo carriage space than Audi A4. 320i has impressive handling and acceleration (US News, 2014).The car is fuel efficient. Points of Parity It is through balance in operation that Audi A4 can compete with BMW 320i. The output of both the cars in terms of torque and power of the engine has been almost similar. Both the cars are considered to be luxury vehicles and purchased by consumers as status symbol products in the market. Through the range of power within each car is different, but it is noted that power steering facilities, fuel efficiency, super suspension tires and supreme luxury are the common attribute of both the cars. Points of Difference A4 is a front drive based sedan with versions of all-wheel drive that is also available in the higher price range; whereas BMW 330i is an all-wheel drive based sedan. BMW 330i scores more over Audi A4 in terms of space inside the car. BMW provides more leg space compared to Audi A4 (Ireson, 2014). The navigator technology in A4 is praised over 330i’s because of features like, Google Earth and street view maps. BMW has installed iDrive technology in their models, whereas Audi has MM technology. Although both the technologies are updated, the MM is more intuitive for several people. With an in-car internet technology, the Audi A4 model is technologically more advanced than BMW 330i.While Audi A4 is the prime entry level model launched by Audi in the entry-level sedan segment, BMW 3 series is an already established player therein. Critics stated that A4 is probably half as good as BMW 3 series models. Brand Positioning Positioning is the process through which a company tries to portray its product and pricing features to the potential customers in the market. Basically a company portrays its brand value in the market through a perpetual or positioning system. The branding process of an organization is practiced through its market positioning means. Branding plays a critical role in tapping the market that has been targeted. The big brands in every industry pay greater attention towards building brand images. It is the outlook of a brand, which can connect to the target group as well as attract individuals who are willing to be associated with the luxury and prestige of the same. Message to the Customers Similarly, both Audi and BMW have made enormous efforts to create a brand name, which would last in the consumer’s mind for years to come. The branding strategies undertaken by both companies have been simple, which is one of the criteria to create a big brand. The logo of Audi, which is the four interlinked rings, states inseparability of the four founder members, Audi, DKW, Haursh and Wanderer (Aaker, 2009). The simplicity has made it possible for people to remember and recognize the logo. Audi presently has a huge base of loyal customers at whom the advertising campaigns of the A4 model have been directed. Due to presence of the huge brand image and equity, Audi did not need to invest excessive efforts to establish the new car that is launched. Audi has been recognized as a company, which vouches for superior engineering (Gelder, 2005). This image of the brand enables consumers to trust on the new offering in the form of model A4. BMW has been competing in the automobile market with Audi for years and they have their own branding strategy, which is equally impressive. BMW has been famous for their innovation and technology whereby they have managed to outscore their competitors. BMW has provided a new dimension in their marketing efforts in order to redefine branding. They have branded their 3 series cars which have been positioned as the car for youth by introducing a new sound logo, which would be played at the end of advertisements on radio and television (Shea, 2013). Audi A4 is positioned as the executive high performance car. Strategy of Campaign Both the communication campaigns of the two companies aim to enhance the sales of its two concerned products. At this juncture, the companies aim to popularize its products through marketing communication programs. Thus, through the communication program, the two companies will enhance the base of its potential customers. Analsysis The BMW management has decided to incorporate the sound logo in the audio and video marketing so as to generate a sound recognition value and establish enhanced connections with consumers. This innovative branding effort has led them to record huge sale for the 3 series cars (Shea, 2013). Audi has emphasized on the powerful engine which it possesses and which is desired by the target group in their branding efforts for A4. With TFSI engine the power generated and the fuel efficiency is remarkable compared to other cars in the same segment. Audi have also generated huge sales but they should have tried to connect to the target market like BMW did for their car. Marketing Communication Campaign Campaign Objectives The primary objectives of the marketing campaign are provided below: To increase the sales and market popularity of A4 (for Audi) and 320i (BMW). To augment the brand image and recognition To increase sales and profit To enhance the strength of loyal clientele Pre-launch Activities Audi had first introduced a number of customized games and mobile applications on its brand name. Before launching the A4 model in the market, the company started to notify the features and price of the model to the potential buyers through these mobile applications. However, BMW had conducted open communication programs with its potential customers before launching the 3201 model. The company undertook this process to make its customers believe that the product was launched after considering their requisites. Good and Bad Attempts of the Campaign The marketing campaigns conducted by the two companies had several attached benefits. This is because it aimed to augment the popularity of the new products in the market and desired to make consumers aware about its features. However, there were also certain problems associated with these problems. The campaigns forcibly tried to convince some consumers to make purchases. Moreover, some features of the cars were over personified by the respective concerns. Audience Reaction The customers purchasing intensions were directly proportional to the degree of success achieved from each marketing campaign. The consumers become aware about the features of each product and thereby undertook their respective purchasing decisions on basis of it. The utility levels of the potential consumers were enhanced through the campaign as they were provided adequate information about the new products through it. Marketing Campaigns In the highly competitive market, all big brands try to tap every single medium in order to reach their target customers efficiently before their competitors. The competition has also given rise to many innovations and creativity for attracting consumers. Emergence of technology have been a phenomenal achievement as all contemporary brands make proper use of technology and reach their target market more effectively than ever (Schnaars, 1998). BMW invests significantly in e-marketing so as to make proper and effective use of marketing efforts. BMW has created awareness of 320i, offered different options for consumers and curbed the location barriers with effectual use of online stores. The online marketing of BMW 320i comprised; Social Engine Marketing BMW in order to create greater awareness about 320i has started off with Search engine optimisation (SEO), where the company has set key words, which would lead prospective consumers to the advertisement link of the product. BMW has also adopted paid search techniques (Mbwette, 2013). Online Advertisement BMW spends approximately 15% of its marketing budget on online advertisement. BMW 320i has been promoted with the help of interactive online advertising, which includes pop-ups and banners. To spread awareness of the new car, BMW has also sponsored Super-Bowl 2013, which has an average of 108.4 million viewers Social Media BMW also has its presence in the social media arena. Through the social media marketing, BMW aims to reach to a greater number of people at a lesser cost. The official Facebook page and Twitter has a huge number of likes and followers respectively, which enables the brand to create greater awareness about a new product more effectively. In order to boost awareness, BMW has tied up with one of the biggest car rental company named Avis in their marketing effort. In addition, BMW has also initiated an Advertisement campaign on televisions in forms of humorous short videos. They have also started contests where they have asked the prospective consumers to submit a video of 5.9 seconds, which would reflect their desire for the car. Even though the company has always kept away from television commercials, yet has considered it a critical media to communicate the 320i model in North America (Boeriu, 2014). They aired an Advertisement campaign over the television for the first time, which featured a leading actress in order to connect the youth. They have purchased the NBC regional advertising rights in the top 17 markets. BMW is also contemplating to bring back their revolutionary advertising channel through BMW Films (McCarthy, 2014). On the other hand, Audi A4 is targeted at families and business users. It has been positioned as a premium car in the mid-size car segment with a prestigious image. Audi has always focused on marketing activities, which reflected high brand value. Audi has always been projected as a company who aims for engineering brilliance, which they claim through their tagline “Vorsprung durch Technik”. This means Advantage through technology. Audi created their marketing campaign with the motive to tap the target group, which generally comprises the executives. Audi has concentrated more on the online advertisements than television. One of the innovative online advertisement campaign started by Audi in order to cut the clutter was that potential buyers had to figure out nine improvements required for the car according to them via a scavenger hunt online (Kenneth, 2007). The prize for the winner was a two year lease of an Audi A4.The main objective behind this campaign was to embed the brand name of Audi A4 and its features in the buyer’s mind. They have effectively aimed their advertisement towards target group by tying up with NCAA men’s basketball tournament (Kenneth, 2007). Audi has strategically spent money in advertising. They only have taken up the trendy events like, Superbowl and Twilight series, for creating awareness about A4. They have seen enormous success by obtaining this strategy. They have focused on environmental concerns through their campaigns, “Green Police” and “Release the Hound” (Lausch & Hagstotz, 2014). Audi have mainly concentrated on digital online advertising through which they have explained features of the car and how it is better than other cars of the similar segment. Audi also have a prominent presence in the social media like, YouTube, Facebook and Twitter, with huge number of followers. Audi has considered increasing their awareness by sponsoring football summits in New Jersey. Audi A4 has emphasized upon creation of a positive word-of-mouth (WOM). As this is the best way of promoting any new product without incurring many expenses, the cost of manufacturing is quickly recovered and the brand is able to reach the breakeven point at the earliest. Audi has always reflected sporty, stylish, comfort and safety side of the car in their marketing communication (McMillan, 2013). The promotional activities of Audi A4 include launching of free i-phone games called "A4 Driving Challenge 2.0". Sales promotion technique of Audi is named “Happy Anniversary” and “Happy Oktoberfest” (Audi, 2014). The company welcomes all the owners of Audi and also new prospective customers who get an opportunity to drive the cars offered so as to realize the most suitable one for them. Analysis of Marketing Communication BMW is aiming to reach the younger consumers by providing pop-up advertisement in the application of internet music provider, Spotify (Shea, 2013a). It has been perceived that the younger generation comprises more frequent users of mobile music applications as most of them prefer to listen to music while travelling. The NBC regional advertisements became one of the biggest hits because of its humor appeal whereby the company has tried to deliver desired message to the youth successfully. With the help of BMW Films, BMW has marketed their new cars through short films in the past. This had proved successful. They are hoping to bring equal amount of success for 320i model and many more models in future. On the other hand Audi has always ignored television advertising to market their product because it is perceived that the executives might not have sufficient time to watch television. Audi A4’s marketing campaigns have been simple and interesting to grab more attention like all other cars of Audi (Kim, & Mauborgne, 2013). Audi understands that presently, the environmental issues are more highlighted; so, they have strategically placed their advertisement campaign in line with the present issue. Americans have the craze for Superbowl and football, which is why Audi has thought of promoting their A4 model through these events. Audi has also efficiently reflected their safety concerns for the drivers through different advertisements. The strategy of Audi for online advertisement would lead them to numerous opportunities in emerging countries like, China and India, as they are positioned among the top ranked countries in online population (Lausch & Hagstotz, 2014). Best Company for Executing Campaigns The campaign execution process of AUDI was better than BMW. This is because the pre and post launching activities conducted by the former company were more innovative, organized and productive than the latter firm. Best Company for Branding and Positioning The brand positioning strategies of BMW were more successful than the same for Audi. This is because at the end of the campaign BMW experienced greater sales for its product than Audi. Moreover, the targeting strategies of BMW were more effective and had helped the firm attract a wide base of potential customers. Best Company for the Consumers Thus, from the context of the above analysis it can be stated that BMW is a more successful organization than Audi. This is because], it was able to make its new product more successful than that of one of its prominent market rival. Conclusion The project mainly aims to reflect the different marketing activities, which have been adopted by the two automobile giants from Germany, Audi and BMW. The essay commences with an overall outlook of both the car companies, which are quite famous and have huge brand names. The two new cars launched by these rival companies in the world market have been considered. The cars, which have been analyzed in this project, feature in the upscale mid-size car segment. The marketing strategies undertaken by the companies in order to create awareness and generate sales have been thoroughly studied. The respective branding strategies and unique features of the cars are also discussed. After conducting the analysis, I think the marketing strategy adopted by BMW in order to market their 330i model was appropriate and effective. They had they focus on the youth segment, which is why they had chosen the path of music to connect with the target market. The manner in which BMW has given a new dimension to their branding through sound recognition for promoting the 3 series car is commendable. BMW, unlike Audi, has understood the necessity of properly utilizing all mediums whereby they can reach their target base. BMW have appropriately used online and digital marketing along with television marketing. They have also tied up with popular companies in their marketing efforts, incorporated contests and designed online games. Audi, on the contrary, has always ignored the television advertising and invested very less in marketing activities, thereby relying more on word-of-mouth promotions. Therefore, I think the strategies undertaken by BMW have the right focus and intent to effectively tap the target consumers. References Aaker, A. D. (2009). Brand Portfolio Strategy: Creating Relevance, Differentiation, Energy, Leverage, and Clarity. New York: Simon and Schuster. Audi. (2014). Marketing and Advertising News. Retrieved from http://www.audiusanews.com/newsroom.do?&id=70&allImage=1&page=2&mid=99. Boeriu, H. (2014). BMW Debuts Television Commercial For the BMW 3 Series Featuring Actress Brooklyn Decker. Retrieved from http://www.bmwblog.com/2014/02/11/bmw-debuts-television-commercial-bmw-3-series-featuring-actress-brooklyn-decker/. Gelder, V. S. (2005). Global Brand Strategy: Unlocking Branding Potential Across Countries, Cultures & Markets. London: Kogan Page. Ireson, N. (2014). Audi A4 Vs. BMW 3-Series: Compare Cars. Retrieved from http://www.thecarconnection.com/news/1074585_audi-a4-vs-bmw-3-series-compare-cars. Kenneth, E. C. (2007). Integrated Advertising Promotion and Marketing Communication. New Jersey: Pearson Education. Kim, W. C. & Mauborgne, R. (2013). Blue Ocean Strategy: How To Create Uncontested Market Space And Make The Competition Irrelevant. Harvard: Harvard Business Press. Lausch, M. & Hagstotz, ITM. (2014). Analysis of the Online Marketing Mix in the Premium Car Segment with the Example of BMW. General Online Research Conference. 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