An Analysis of BMW’s Brand, Product, and New Product

German for Bavarian Motor Works is a famous German luxury vehicles and engine manufacturing company as well as producing motorcycle, which founded in 1916. It is usually known as BMW by customers. This blog is aim to analyse BMW by looking its brand, product, and new product.

Brand of BMW.


What is a brand?

Brand is a combination of name, term, sigh, symbol, colour, or design. BMW use its brand to differentiate their products from those of competitors. At the same time, customers purchase the products that they prefer through brand. For example, when you look at the picture above, you will know that is BMW.


Even if there is no the three alphabets, BMW, it still represent BMW in people’s mind since brand is a combination of many elements.

Why a company need brand?

In terms of BMW, its brand is much more important than any model of car. There are three reasons. Firstly, BMW use its brand to induce customer loyalty. Customer loyalty is a kind of attachment towards a brand. It could be kept even if the brand changes such as its price or product features (Chahal & Bala, 2010). Secondly, products can be sold as a premium price with BMW brand. Last but not least, brands allow a single firm to pursue multiple targets.


House of BMW brands

There are many brands in Corporation of German for Bavarian Motor Works like MINI, Rolls-Royce and so on. They have different logo and symbol. This kind of house of brands approach can avoid the risk that any problem with one brand may affect other products. In this case, those brands’ logo do not need to have relationship with each other. Of course, BMW need spend more money on advertising in order to expand awareness of those brands.

Product from BMW

What is product?

Product is offered by a firm to customers in order to satisfy customers. It can include many categories such as goods, services, places, information, and ideas. Most of them own both tangible and intangible features.

BMW produces luxury vehicle and engine. Customers not only buy cars or engines, but also buy the benefits. They seek to improve their lives or handle troubles. Thus, customer choose BMW by not only purchasing its goods, but also purchasing its service. However, once customer willing to buy BMW’s car, features of the car such as safety and comfort will be considered firstly. That is because the car is the core product and the essential to the product offering.

Goods & services

Goods and service can be differed in terms of if it is intangibility, qualities, perishability, or variability.

In terms of goods

Cars or engines as goods that BMW sells are tangible. Similarly, car as durable good can be stored and continued using. In addition, BMW’s motor vehicles are easy evaluated by qualities and since goods are made by machine, they do not include variability.

In terms of services

Obviously, services have features of intangibility, difficult to evaluate, perishability and variability. Besides car maintenance and repair, BMW also provides car-sharing services, parking services, and charging services and so on. Since services is variable, BMW as a marketer should try to avoid negative variability and keep to improve positive variability such as customisation.

New product of BMW

Approaches to developing new products of different corporation are similar. Firstly, designer have an idea. And then design it and develop it. After that, commercialisation is the last stage.

However, there are also many complex steps between them. Before BMW produce a kind of cars, an idea would come into being in designer’s mind. And then designer group would evaluate its market potential.


After that, they will design a concept vehicle such as the picture above to do test. According to the marketing feedback, designer group could improve and develop it. Then, the group will do beta-testing in terms of current design. Finally, the company will launch the new product to the public. The total period may last few years.

Product life cycle


Any product has its life cycle. Life cycle includes 4 period which are introductory, growth, maturity, and decline stage. Every model of BMW experience these 4 period. With the new competitive product enter the marketing and the feedback of customers, any model of BMW would renewal every few years.






























BMW education 2012, When was BMW founded, BMW Education Programme, retrieved 26 August 2016, < >


Chahal, H & Bala, M 2010, ‘Confirmatory study on brand equity and brand loyalty: A special look at the impact of attitudinal and behavioral loyalty’, VISION-The Journal of Business Perspective, vol. 14(1, 2), PP. 1-12.


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