Analyzing and Comparing of Visions of BMW, AUDI and Daimler- Chrysler

1 “BMW.Sheer driving pleasure”

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1.1 What goals is the BMW Group pursuing with its premium brand strategy?

The BMW Group concentrates on selected premium segments in the automobile market. This means that it is the only multibrand automobile manufacturer in the world that is not active in the mass market, i.e. the volume segments of the automobile market.

The aim of the premium brand strategy is to achieve higher revenues per vehicle, on the basis of a high-value product substance and an unmistakable brand profile. The BMW Group pursues this premium brand strategy with the BMW and MINI brands, and, since 1st January 2003, with Rolls-Royce. This means that it will cover the premium segments from the small car to the absolute luxury category.

The premium brand is thus creating the preconditions for further profitable growth for the BMW Group. The Company expects that in the next ten years, the premium segments of the automobile market will grow worldwide by around 50%. In contrast, the mass volume segments will increase by "just" 25% or so during the same period. The BMW Group is aiming to achieve profitable growth in the future too, and in that order of priority - "profitable" followed by "growth".

Beside their premium brand strategy, BMW wants to offer sportiveness and status. Compared to other car brands, BMW does not want to announce that they want to be an leader in technology or a global player. The slogan “BMW.Sheer driving pleasure” wants to show their concentration in a well developed and fun orientated car. That they indeed often develop at the latest state- of –art technology is not standing in the foreground. This is very tricky. The customers feeling that he and his fun is the most important thing for BMW gives him a feeling for being important. Being close to the customers fun is the message. And the customer knows quite well that the technique is also in the car.

1.2 Outlook annual report 2003.
Automobile sector expected to revive in 2004.

Prospects for the world economy for the year 2004 have improved during the past few months. On the basis of strong growth trends in the USA and Asia, the BMW Group anticipates that global economic recovery will continue and gain in strength as the year progresses. As far as the euro region is concerned, the gradual recovery should pick up momentum; it is not expected, however, that the full year will benefit from a strong upturn.

Against this background, the BMW Group anticipates a modest revival in worldwide car sales. Significant momentum should come from the US car market, whereas it is predicted that markets in Europe and Japan will only see small increases in car registrations. The car markets in Eastern Europe and South-east Asia should continue to develop dynamically in 2004. The fastest growing market in 2004, with double-digit growth rates, will again be China.

The BMW Group anticipates that the premium segments of the world’s automobile markets in 2004 will again perform better than each of the relevant markets as a whole. With its premium brands BMW, MINI and Rolls-Royce and numerous new models, the BMW Group will continue to benefit from this development.

The BMW Group will carry through its product and market offensive in 2004. With the introduction of the BMW 6 Series Coupé and Cabrio, the BMW X3, the BMW 5 Series Touring, the BMW 1 Series and the MINI Convertible, the BMW Group will be taking further important steps to expand its product range.

The BMW Group anticipates that it will again be able to achieve sales volume growth in 2004; record levels are expected for all three brands. It is forecast that demand for BMW Group cars will pick up sharply, in particular in Asia and the USA, and also in some of the European markets.

In particular, the positive feedback received after the launch of the BMW 6 Series Coupé and the BMW X3 in January 2004 so far underpin this assessment of the situation by the BMW Group.

The Group will continue on its successful course and demonstrate its underlying strength, with the aim of reporting record revenues and earnings figures for the financial year 2004.

1.3 Assessment:

Acording to the interim report of BMW are this aims almost achieved.

Sales volume growth:

Altogether BMW was able to rise their sold car number more than the other manufacturer. BMW ascribe this to the product and market offensive they showed during the last couple of years.

Important market disposals: The most important growing markets are: Asia/Oceanien with an increasing disposal of 15,3%. This result is divorced into Japan 16,5%, China/Hongkong/Taiwan: 38,3%. In numbers the most important market is Japan (38 704 sold cars). The importance of this Asian region can be read in the number of sold cars compared to the whole disposal: 62 552 cars of 143 823 sold cars during the first half year were sold in Asia/ Oceanien. Unfortunately the market in USA is not increasing like predicted. In July the number of sold cars was -4,4% of the number one year before. The reason for this is the high number of recalls for cars with 8 and 12 ventiles.

In Germany was the number of new registered cars after half year of 2004 again slightly under the number one year before. BMW estimate that this trend will continue because in Germany all the customers show a consume abstinence. But anyway BMW predict again top results in the end of the year. The results so far do not seem to disappoint the expectations. The sales volume after half 2004 is 11, 8 % above the result after half 2003. The disposal increasing was 8,5% and the production increasing 9,3%.

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