Top 10 global brands

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1913

Not everybody knows that BMW started as a manufacturer of aircraft engines. In Ocotber 1913 Karl Friedrich Rapp establishes "Rapp-Motorenwerke" in a former bicycle factory near Munich. Rapp was an engineer who arise through thr Daimler system and "Rapp-Motorenwerke" was set up asa a subsidiary of "Flugwerk", an airplane maker. He starts manufacturing his own aircraft engines but unfortunately they suffered form problems with vibrations.

Close to Rapp´s factory, Gustav Otto, the son of the inventor of the four-stroke internal combustion engine, sets up a business building small aircrafts. Otto enjoys great success with "Gustav Flugmaschinefabrik".

1916

Rapp's company has secured a contract with Prussia and Austro-Hungary to produce 25 large V12 aircraft engines. Rapp Motoren Werke had problems with the reliability of the engines so they began buying four-cylinder water-cooled aircraft engines from the Gustav Otto factory. In the following months Otto's company is absorbed. Gustav Otto´s "Gustav Flugmaschinefabrik" merging with "Rapp-Motorenwerke" formed"Bayerische Flugzeug-Werke" or BFW, in English "Bavarian Aircraft Works"

Franz-Josef Popp, an Austrian engineer, directed Rapp's business. He was securing the all-importnt military contracts. Popp tranformed then the existing company into "Bayerische Motoren Werke GmbH". BMW formally recognizes its birthday as March 7, 1916. Shortly after the merge, Popp realized that the company expanded too quickly and they needed financial help. He turned to Camillo Castiglioni, a Vienna financier, who was head of the Wiener Bankverein. Popp and Castiglioni recapitalized the company.

1917

Popp and Castiglioni forced Rapp out of the company who needs to depart in this year.

In 1917, BMW's first aircraft engine, the Type IIIa, goes into production. It is a water-cooled six-cylinder inline engine, it features a unique "high-altitude carburetor" developed bychief engineer Max Friz that allows it to develop full power at altitude. Max Friz was a grand engineering mind who would dominate BMW's product development culture on into the 1960's.

Popp convinced the German government to buy the BMW IIIa engine.

1918

In 1918 this engine powered a biplane to 5,000 meters altitude in just 29 minutes. It was an impressive performance in the BMW history, one that led to strong demand for BMW engines.

"Bayerische Motoren Werke GmbH" becomes BMW AG (The German term Aktiengesellschaft means a corporation that is limited by shares, i.e., owned by shareholders. It may be traded on the stock market. The term is used in Germany, Austria, and Switzerland. The U.S. equivalent term is "public company", source Wikipedia) the company that we know and admire today.

1919

After the armistice was signed, the Allies prohibited German military to produce aircraft engines. Therefor BMW turned to boat and truck engines and farming equipment. Meanwhile, in secret, Popp continued to work with his engineering director Friz on aircraft engines.

A successor for the Type IIIa engine is born. It is named naturally Type IV. With this engine, Franz Zeno Diemer sets an altitude record of 9,760 metres (32,013 ft).

1920

The tough business climate at the end of WW1 made Castiglioni to sell his holdings for 28 million Reichsmarks to the chief executive of Knorr Bremsen AG. With only a few aircraft engines on order, BMW was struggling and started to manufacture brake systems for railway cars, office furniture, and workbenches, as well as cut-down aviation engines for marine and industrial use.

The current BMW logo, introduced in the early 1920, was believed to be based on the circular design of an aircraft propeller.

STRENGTHS

Brand reputation. BMW brand is the third most valuable automotive industry brand in the world valued at $29 billion. In 2012, Forbes has also listed BMW as the most reputable business in the world.
Environment friendly vehicles. The company tries to develop environment friendly cars by making them more efficient. It offers nearly 20 models that emit CO2 as low as 140g/km. To make BMW cars more environment friendly firm’s engineers develop new types of fuels, such as hydrogen, too.
Quality products. BMW is valued on its engineering capabilities, skilled workforce and quality products. BMW recalls their cars less often and at lower numbers than most of its competitors do.
Highly skilled workforce. Quality cars require premium materials and skilled workforce and BMW employs only the most skilled workers to produce its vehicles. BMW sets up its assembly plants at the countries, such as USA and Germany, where there is only the most skilled vehicle assemblers.
Corporate Social Responsibility (CSR). BMW is strongly committed to the environment protection, employee and community well-being and sustainability programs. The company invests large sums in employee health management, programs promoting balanced work life, sustainability requirements for its suppliers and producing zero waste at its plants.
Strong brand presence in China. Over the last few years, BMW has seen strong sales

growth in China, the largest automotive market in the world. In 2012, BMW sold 326,444 vehicles there.

WEAKNESSES

High cost structure. Producing quality cars and hiring skilled workforce results in high costs for the business. BMW cost structure is higher than of its biggest competitors such as Toyota, GM and Volkswagen.

Weak brand portfolio. BMW Group manufactures and sells only 3 brands: BMW, MINI and Rolls-Royce. Although these brands perform well in their segments, they are unable to serve larger market needs. Therefore, BMW has to introduce more brands to its portfolio to meet diverse consumer needs.

High prices. BMW manufactures luxury cars that require best quality materials, skilled workforce and a great brand image. All this results at a higher car prices that are often considered as too pricey compared to other car prices.

Too few acquisitions and strategic partnerships. 90% of BMW growth is organic and only 10% is from acquisitions. Without acquisitions, the company finds it hard to grow even with exclusive engineering capabilities. Thus, if the company wants to grow significantly,

STRATEGIES BEING EMPLOYED
The car industry has grown up as a very dynamic industry in the past few decades. Although the primary purpose of this industry has been to satisfy the consumer's need to travel from one place to another with comfort, the continuously changing market, has slowly altered consumer's needs into desires which have cleared the way for intense competition in the automobile industry.
Bayerische Motoren Werke Group (BMW) is one of the world's leading luxury carmakers. Founded and based in the Germany. BMW group employed over 100,000 people, in 2009, making and distributing a series of successful, premium-priced passenger cars and motorcycles*34. In addition to its manufacturing operations, BMW also provides financial services to support its worldwide sales and distribution of cars and motorcycles. But in this report, we will be only focusing on the cars, which accounted for about three quarters of BMW group's sales.

BMW was initially established to build aero engines during the First World War. By 1945, company was still country's leading aero engine manufacturer. But by 1928, BMW has also started making cars, when it got the license. It was later when BMW became one the biggest automobiles maker in Germany. But after the Second World War, company was laid into ruins. The demand for aero engines subsequently disappeared. Its factories and other capital equipment, which were located in area now controlled by Soviets, were under serious threat. At this point of time company was not sure about its future and started concentrating on automobiles production. But in 1959, company went into financial turmoil, when it faced bankruptcy. In this hard time, company found a savior in the face of Herbert Quandt, who emerged as a powerful share holder by taking over the 50% share of the company (Anon, 2007). In BMW group's history the turning point was 1961, when it launched BMW 1500, which soon got BMW brand, the reputation of an excellent engineering company. Now a day, BMW enjoys the ownership of three quality brands, BMW, MINI and Rolls-Royce motor cars.

PRIMARY REASON FOR BEING THE GLOBAL BRAND
Since 2005, the German automaker has been a Dow Jones Sustainability Index Leader—and for good reason. The company’s aim is to ensure consumers never have to compromise energy efficiency for sheer driving pleasure.

As a result, BMW is reimagining urban mobility, beginning with the BMW i Series of electric vehicles, which is now the banner for sustainable mobility. In 2014, the i3 ranked third among all-electric cars sold worldwide. According to BMW, a vast majority of those buyers were new BMW owners, meaning the i3 has become a vehicle for expanding the brand’s reach. BMW also introduced the sleek i8 plug-in hybrid sports car in 2015.

It's not just excellent engineering that attracts consumers—BMW is encouraging the adoption of sustainable technologies by making them accessible and rewarding, while proactively addressing mass adoption's potential challenges. In partnership with the California-based utility company PG&E, BMW is testing its "BMW i ChargeForward" program, which compensates i3 drivers for non-peak charging. It also partnered with TOTAL to open a multi-energy filling station in Munich. DriveNow, its ongoing joint venture with Sixt, which provides car-sharing services in Europe and the U.S., recently added a fleet of all-electric i3 cars.

BMW’s mobility services rely on making connectivity simpler and more personalized. The company became a leader in the category with ConnectedDrive—customizable services and apps that act as personal concierge and copilot. Its Real Time Traffic Information system is helping drivers cope with traffic more effectively, and a new research project, Dynamic Parking Prediction, aims to reveal parking availability using movement data from its vehicle fleets. BMW also recently teamed up with Audi and Daimler to buy Nokia’s high-definition mapping business for EUR €2.5 billion, protecting access to key technologies for connected and self-driving cars.

While busily developing new services, the company has not neglected its core offerings. This year, BMW showcased both its luxury expertise and technology prowess with the 7 Series. Unveiled as “Driving Luxury,” BMW's marketing approach was all about the experience. It invited 25,000 individuals globally—a blend of BMW customers, buyers of other brands, and drivers who do not own cars—to test-drive the vehicle. While mobile recording devices were not allowed, participants were encouraged to generate social buzz by sharing their early experiences, garnering a great deal of attention.

With BMW CEO Norbert Reithofer stepping down in May 2015, successor Harald Krueger became the youngest CEO of a major automotive corporation, responsible for steering the brand into a future fueled by continued quality, sustainability, and innovation.

LOUIS VUITTON
HISTORY
Established in 1854, Louis Vuitton designed and introduced flat-bottom luggage trunks made with trianon canvas.
It soon became the favorite of Empress Eugenie and the brand took off as the luggage choice for the wealthy. In 1867, the company won a bronze medal at the World Exposition in Paris and its influence spread beyond France. In 1885, Louis Vuitton opened its first overseas store in London. Following the death of his father in 1892, George Vuitton began a campaign to build the company into a worldwide corporation. In 1893, it entered the U.S market and, in 1896, the company launched its signature Monogram Canvas and secured worldwide patents for it. It has since become the classic symbol of the Louis Vuitton brand.

Hermès began as a harness workshop in 1837 by Thierry Hermès. His grandson, Emile-Maurice Hermès was responsible for the successful diversification of the business. In the 1890s, Hermès introduced its first handbag [Sac haut-à-croire] and gradually added watches, clothing, jewellery and accessories. The company did not use assembly lines; design and manufacture of all products were done in-house. In the 1920s, Hermès opened its first overseas store in New York. In the 1950s, under the charge of Robert Dumas, Emile-Maurice Hermès’ son-in-law, more products were introduced including perfume, shoes, and porcelain.

Hermès is most famous for its Kelly bag and Birkin bag. Launched in 1935, the Kelly bag was originally a saddle bag and then refined into a product suitable for ladies. From tanning and the choice of leather to dyeing and tailoring, the construction of each Kelly bag requires 18 hours of work by a single artisan. This attention to detail and dedication to integrity have made the Kelly bag an enduring success. The company’s on-going dedication to family ownership and management, impeccable craftsmanship, and careful protection of the brand's mystique sets Hermès apart from many of its French luxury goods compatriots.

STRENGTHS
Oldest and legendary house of fashion in the world.

Known for skilled handiwork & exquisite material.

Touched new heights in context of artistic capability.

Biggest luxury brand worldwide with a 150 year heritage.

An international logistics centre.

Website as an authorised channel to market its products and build brand associations.

Exclusivity in material and design.

Offering custom made products.

Brand endorsement by world renowned models, celebrities, sportspersons, politicians.

Effective control on quality and pricing by marketing products through own stores.

WEAKNESSES
The premium positioning of the product results in it being afforded only by the elite and the rich who want to make a statement and want to be distinctive from others.

It has restricted retail opportunities compared to other luxury brands as the company markets the product through its own stores only.

Business largely depends on the economic condition. If economy is depressed, the sales growth slows down sharply.

No precedence of offering products on a discount.

STRATEGIES BEING EMPLOYED
Louis Vuitton has established itself as one of the most high-end brands in the fashion industry. Its product is similar to other high-end fashion brands such as Prada, Gucci, Celine, Fendi, and Hemes. Its success and ability to remain in the market is because of its effective marketing mix.

Product: Louis Vuitton has successfully established its own unique identity in the market place where people know the “LV” brand as opposed to just simply another high-end brand. In his article “Marketing Principles of Louis Vutitton,” Shin’ya Nagasawa (2008) mentions that Louis Vuitton is known for its “adequate product quality”. “Adequate product quality” refers to having “fitness for use” and “conformance to requirement”, which means that the handbags are very easy to carry. Louis Vuitton has established itself as a handbag that has a unique quality that makes customers choose between Louis Vuitton or nothing when shopping for handbags.
Price: Shin’ya Nagasawa (2008) states that general consumers demand goods that have lower prices. However, Louis Vuitton chooses to price itself in terms of value rather than price, which is why they choose to mark its products at a very high level. Value refers to the benefit consumers receive for what they give. Louis Vuitton offers customers high-value products through its quality and brand. Its high-price makes consumers feel that they are part of an exclusive society when they carry a Louis Vuitton bag. It is relates to conspicuous consumption.
Place: Louis Vuitton chooses not to sell their products in department stores, and instead establishes individual high-end Louis Vuitton stores. Their decision to limit its distribution channel is done in order to make consumers feel that Louis Vuitton is such a valuable product as its stores few in number
Promotion: Louis Vuitton advertisements mainly consist of celebrities. This is done in order to target the affective component of consumers’ attitudes by allowing them to feel a certain emotional connection. It gives consumers a social reference group that they are part of a group of celebrities.

PRIMARY REASON FOR BEING THE GLOBAL BRAND
Top 100 Most Valuable Global Brands Ranking is carried out annually by WPP’s marketing and brand consultancy Millward Brown, a leading global research agency specializing in advertising effectiveness, strategic communication, media and brand equity research.

Other luxury fashion brands in the top ten includes Prada, Hermes, Burberry, Gucci, Roles, Cartier and Michael Kors.

According to a Milward Brown spokeswoman, both Chanel and Louis Vuitton are masters at doing things differently. Chanel’s iconic, self-aware and less serious marketing, supported by edgy models provide a different view of femininity.

Louis Vuitton has successfully revitalized its brand by going back to its original LV monogram in a new way, while other brands were leaving the classic canvas for more luxurious leather and fabrics to justify their premium position.

“They have also harmonized their prices across regions – raising prices in Europe and lowering them in China. Although this will impact their financial performance in the short-term, they are protecting the brand by encouraging more in-store consumption and slowing the grey market of goods purchased in Europe to sell in China at a profit.”
This resurgence of exclusivity created an opportunity for more ubiquitous and popularly priced luxury brands like Michael Kors, which operates in over 85 countries with its own locations and in department stores. Michael Kors entered the BrandZ Luxury Top 10 for the first time this year. Tiffany, worth $3.2bn, was the second new entrant.
In the global BrandZ Top100 Most Valuable Global Brands ranking, Apple overtook Google to once again become the world’s most valuable brand, increasing its brand value to $247bn, a rise of 67% year on year. Though the AppleWatch has proved extremely popular, it is successful sales of the iPhone 6 that has been the main driver of Apple’s brand value growth.
Google (no.2) also grew, achieving a 9% value increase to reach $173.7bn. Microsoft, now worth $115.5bn, is the new no.3, rising one position with value growth of 28%. Technology is the fastest-growing category – up 24% in the last year, the tech brands in the Top 100 are worth more than $1 trillion, nearly a third of the value of all brands in the ranking.
BrandZ™ Top 100 Most Valuable Global Brands ranking is now in its tenth year. It is the only study to combine measures of brand equity based on interviews with over three million consumers globally about thousands of global ‘consumer facing’ and business-to-business brands with a rigorous analysis of the financial and business performance of each company (using data from Bloomberg and Kantar Retail) to separate the value that brand plays in driving business and shareholder value.
Consumer perception of a brand is a key input in determining brand value because brands are a combination of business performance, product delivery, clarity of positioning, and leadership. The ranking takes into account regional variations since, even for truly global brands, measures of brand contribution might differ substantially across countries.

MARLBORO
HISTORY

The amazing Marlboro cigarette brand began in England 1847 and was initially targeted at female smokers. Aiming at this market segment was not successful, so in the 1920's Marlboro was re-targeted to female smokers in the United States. In this campaign it was stressed that Marlboro was a 'mild' cigarette. These efforts continued into World War II when the brand was eventually taken off the market.
In the 1950's Marlboro was again introduced to the market, this time on the heels of a stories about the negative health aspects of smoking. At the time, the vast majority of cigarettes being sold were non-filtered. Marlboro was a filtered cigarette, so this clearly was an attempt to win over the health conscience crowd.
Later, during the 50's, the company decided to dump the targeting of women and began promoting Marlboro as a man's cigarette. The first icon of this new change in marketing was the 'Tatooed Man' depicted on this page. Various images of healthy looking, outdoor type began showing up in ads.
The images used in their ads evolved more and more into those depicting particularly macho types. In the beginning, images of naval officers and livestock ranchers made the advertising scene. In 1954, the now well known 'Marlboro Man' was introduced, and by 1963 was the sole representative of Marlboro ads.
Around 1972, Marlboro cigarettes became the most popular brand, and have remained so, for the most part since then.
While the Marlboro brand may not be ranked at the top any longer, it still retains a value in excess of $21 billion. That figure places it above such brands as American Express, Hewlett-Packard, and Gillette.

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