Abstract:
A brand is nowadays more than just an attached name to a certain offering. Through the increased competition (mostly through so-called private brands), the interchangeably of brands, or the triviality of the product quality (this means product quality is becoming self-evident for consumers) a brand must promise the client a unique experience and level of performance. In order to realize this promise the whole company or corporation has to work on it: starting from the product development, over to production, and ending with the distribution channels. The most successful brands (e.g. Coca-Cola or Mercedes-Benz) have reached something what many brands perceive with their brand policy as well: a relationship of trust and a strong image, by which the buying process risk for the consumer is reduced in terms of time. In my opinion this quite new topic (branding or “brand value” is in the focus of the marketing experts or public since the end of the 1980’s) is playing an unbelievable fascinating part in the world of marketing. But when taking a closer look at brand management a very complex and irritating world is appearing. Therefore, in my dissertation I have tried to order and explain the huge world of the term brand and determine how companies can gain a competitive advantage when following a structured brand management. The main goals of my thesis are the exploration of the brand role and its value for companies in the 21st century, the usage of various strategies for building or managing brand portfolios, and the avoidance of mistakes when extending the brand vertically or horizontally. A company which has realized (as one of the first) that brand management is so important is the German based BMW Group Company. Their latest results (in terms of market share, production numbers, profits, and brand value) in the heavy competitive automobile sector are speaking for them. For this reason I undertook a deep and thorough analysis of their brand policy, not only presenting their way of implementing brand strategies but maybe even more important, my view and opinion about their brand policy. The premium brands in the automobile sector have their origin in the 1960’s and 1970’s. BMW played a very important role in establishing them. Quickly the BMW management realized that is not enough only to offer innovations in the technical area to establish them as a premium brand but that these advantages have to be communicated to the customers in a clear and convincing way. Moreover, the finally success of the BMW brand was a long and hard way of a slow and thoroughly planed brand management. The thesis is made of four chapters, divided into two theoretical ones, one describing one, and one analysis one. The first chapter is focusing on brand characteristics such as the role of the brand in today’s world and its importance for customers and companies. Moreover various brand definitions, types, and images are presented. The chapter is rounded up with brand value estimations and reasons why companies are interested in them, and forms of brand identities.The second chapter scrutinizes brand management principles strategies. This involves different brand portfolio strategies (example of the Boston Consulting Group matrix), strategies of brand relationship and their effects on brands. The four main strategies of the brand relationship spectrum house of brands, endorsed brands, sub-brands, and branded house are described thoroughly. Furthermore horizontal and vertical brand extension strategies are presented with a heavy focus on avoiding the most common mistakes made when applying them. The third chapter is composed of brand management methods in the BMW Company. Starting with the history, contemporary stage of development, and company characteristics over to the core BMW marketing strategies (involving such aspects as the product portfolio, distribution or selected promotion tools), and the BMW core strategy elements related to brand portfolio, and brand positioning/values. The last chapter is a personal elaboration of the brand development identity process within the BMW Group. All important stages in this process are been analysed.