Building Brand Architecture Sample Report: Mercedes-Benz Vs BMW

Introduction
This report builds and examines the brand architecture of two brands – Mercedes- Benz vs
BMW in the Automotive industries, i.e. Luxury and Passenger cars. The two brands are chosen
because they are the most popular German brands of luxury cars and their rivalry started
more than 100 years ago and also, they compete in very similar markets and yet have very
different brand personalities. Mercedes -Benz and BMW are among the most valuable brands in
the Automotive industries, and this report will bring out the stark differences in the brand
architectures of these two brands. The goal is to observe how consumers can have vastly
different perceptions of and relationships with very similar products owing to the differences in
brand architectures.

Brand Architecture
The first step is to develop brand pyramids for both brands.

 Brand Architecture for Mercedes-Benz

Brand Core/Essence-Confidence,Powerful

Brand Personality-Innovative,Friendly,down to earth

Emotional Benefits-Premium status, luxury,

Trustworthy

Product Benefits-smart features,comfortable,variety

Product Attributes-luxury interior and

design,safety,performance
  Brand Architecture for BMW

Brand Core/Essence-Power to do more

Brand Personality-smart,Competitive,Achiever

Emotional Benefits-Pleasure,reliable,optimistic

Product Benefits-comfortable,High Performance,

Good quality

Product Attributes-Competitve pricing,high motor

performance,safety

Brand Comparison
Both of the brands compete in similar markets putting high value of performance and quality.
They are targeting different segments/audiences through different brand personalities.

In some ways it may be increasingly difficult to differentiate, but really BMW tends to be a bit
more on the sporty side. Mercedes-Benz has always put more emphasis on offering luxurious
comfort, and other than the ‘sport’ models, that still applies.

Mercedes -Benz targets customers from the upper-class social group, Professionals & Executives
who have an inclination towards the modern technology equipped vehicles, more safety, more
styling & more efficiency. It targets young buyers who are passionate to drive and cars resonate
of what they are, what their fashion statement & style .Positioning itself through emotional
appeal and creating top of mind awareness has helped the company in becoming the best luxury
car makers in the world.
A typical customer of BMW is the one in the mid age (35-50), is excelling in his/her career, have
a taste of aspirational products & values his own social status. The benefits required by
these people are superiority, performance, reliability & quality. BMW targets customers from
upper class social group as they are the people for whom BMW will be affordable & moreover
they will appreciate the masterpiece. The global frontrunner, BMW has positioned itself as a
symbol of quality, technologically advanced, high performance & exclusive automobile brand.

Both luxury brands are expensive. If you are looking for saving money, look elsewhere. Whether
it is the segment of small sedans, mid-size vehicles, or luxury subcompact SUVs, you have to
spend a large chunk of money to purchase either a BMW or a Mercedes model. Choosing
between BMW vs Mercedes is not an easy task. They might have edged over the other in some
segments, but the margin of difference is quite negligible.

Brand Value

According to Interbrand’s website, their valuations are based on three key components: “the
financial performance of the branded products or services, the role the brand plays in purchase
decisions, and the brand’s competitive strength.”

According to Interbrand 2019, Mercedes-Benz is ranked 8th of world ’s most valuable brand with
Brand Value 50,832 $m.

BMW is also a very good brand, according to Brand Interbrand 2019, BMW is ranked 11th in
World’s most valuable brand with brand value 41,440 $m.

According to Forbes 2019, Mercedes-Benz is ranked 17th of world ’s most valuable brand with
Brand value $33.2 B and BMW is ranked 21th of world ’s most valuable brand with Brand Value
$29.8 B.

So, both Mercedes-Benz & BMW is having a very strong brand in their respective market segment
in the world.

Sources Consulted

https://www.forbes.com/

https://www.marketing91.com/

https://www.interbrand.com/