Ad Branding Campaign: Year of 2009 Audi
BMW
In 2009 Audi launched one of its most
In 2009 BMW also launched a new brand
successful brand advertising campaign
advertising campaign featuring the new Z4
featuring a new model of A4 with the tag
model: “Story of Joy”
line “Progress is beautiful” or “Truth in Progress” Description:
Description:
Ad agency: Venables Bell and Partners
Ad agency: GSD&M
In this campaign Audi demonstrate
The “Joy” ad campaign centered on the
superiority and sufficiency of its products
BMW X1 model. This time the brand
focusing on the new A4 model. The
targeted not so much on car’s sufficiency
campaign came in many forms such as a 60
but more about healthy life’s experience.
seconds broadcast at the MLB playoff,
The advertising went on a lot of high-
NFL Sunday Night Game or during TV
profile channels such as NBC, MSNBC
shows commercials of “The Office” and
during Olympic games and Academy
“Grey’s Anatomy”
Award as well as many major magazines.
Projection:
Projection:
Through this ad campaign Audi wanted to
With the 2009 ad campaign BMW wanted
reinforce the message that its brand
to change consumer’s perception about the
represents a new era of luxury and set their
brand now as a happy family-oriented
brand apart among the all other leader
product.
brands.
Packaging: (Cars do not have package but
Packaging: X1 model
rather come in model) A4 model Result
Result
The sale rise of 21.2 percent in profit
The company net profit full year 2009 was
compared to the year of 2008
EUR 210-million, down 36.36-percent from EUR 330-million in fiscal 2008. (www.business2press.com)
Sale Growth Chart: Comparing sale growth of Audi and BMW from August 2009-August 2010: (www.bmwblog.com)
According to the sale chart: from August 2008 to August 2009 BMW sale volume went down 21.30% while Audi went up 25.77%. BMW “The story of Joy” ad campaign was running at this same period of time and it seemed not to have a positive impact on the sale. Comparing Branding Use Inconsistent and confusing branding image: BMW had always been positioning itself as the top of its class in luxury car premium market. BMW has used the tag line “Ultimate driving machine” for 31 years on a roll. The brand image was build up on speed and performance. In 2006 BMW launched one of the most successful ad campaign in history defining their core demographic “ The creative class” (this consumer groups consisted of educated demanding consumers in the market place that make up 40% of the working class). This new ad campaign with the “Joy” theme, however, sold BMW on a concept that was a lot simpler but not effectively pushing the sale. Going from “Speed” and “Performance” to “Joy” diminished the value of BMW public perception as a power brand. Brand equity in consumers’ mind started to get confusing due to the inconsistence of its image development. Many print ads followed up the theme “Joy” presented many different types of market segments from babies, parents, young adults, seniors and so on. So what happened to the “Creative Class”? The campaign showed the desire of the brand to speak to every potential customer. BMW destroyed their brand power by trying to expand their niche to mass market and unfortunately the nature of luxury products is that it does not appeal to the mass.
On the other hand: In 2008 Audi introduced the new R8 model sport car under the ad campaign named “Truth in Engineering”. 2009“Truth in Progress” is the continuing evolution of reinforcing Audi’s brand positioning in consumers ‘mind as top fuelefficient luxury cars. In broadcast commercial Audi reinforced the message that its brand represented a new era of luxury. Whatever ad campaign they put out there, they all come down to the Audi corporate key tag line “Vorsprung durch Technik means “Progress through Technology”. The 25.77% increase in sale volume speaks enough about the successful of Audi brand positioning. Competition Analysis BMW Group entered the market as a luxury car manufacturer. The brand has always known for its performance and luxury vehicles. BMW core segmentation started out targeting up-scale social class with medium to high income. Later in 2006 BMW redefined the brand’s niche market to a wealthy educated group called “the creative class”. BMW Group has been shifting the brand image and concept for the past few years starting with the change in the tag line from “The Ultimate driving machine” to “The Company of Idea”. That leaves the industry question whether or not BMW still have its stand on the luxury premium market. Audi also entered the market at the very same position as BMW and obviously targeting the same segmentation. Audi corporate came up with the tag line “Progress through Technology” and it became a main concept for its products and every ad campaign. As much as the global economy has some shakings, Audi brand stills making huge jump in profit every year.
Product Analysis BMW mainly focus on manufacturing cars, motorcycles and some other types of vehicles. BMW keep extending heir product range by producing new model for different series: we have the M, X and Z series. Each car series presented different “purpose” and “focus” for example the M Series is the sport car series with special featured the extremely heat-resistant sports silencer, which is 40 per cent lighter than the regular series production component. Audi carries very similar products. They also focus on manufacturing performance cars and vehicles. What differentiates them among other luxury driving machine companies is their supreme advance in technology and brand power. Audi always throw billion dollars worth ad campaign every year to maintain consumers’ loyalty, introduce new products and increase market shares. Summary of Brand Asset Valuator Audi Differentiation Teachnology and Luxury
BMW Performance and Speed-now change to
brand Image
Joy and Idea
Relevance
High market share
High market share
Esteem
Brand’s equity is successfully
Brand’s equity is successfully
established.
established but the brand is trying to expand their demographic
Knowledge
High level of awareness
High level of awareness
The BATTLE OF BRAND POWER by: Vy Nguyen