BMW is a textbook example of the branding strategy called BRANDED HOUSE.
This means the customer prefers the parent brand then chooses from the sub-brands.
The opposite of this brand strategy is HOUSE OF BRANDS.
This is common in packaged goods. For example, Tide laundry detergent is the preferred brand.
Customers search for it rather than a detergent from the manufacturer—P&G.
A house of brands can be expensive to market. Every product needs its own support.
A branded house can be more efficient. But it requires discipline.
The brand's preference drives sales.
All sub-brands receive the benefit of that preference.
Focus on the parent brand's benefit... ...and meaning.
Fight distractions. Be strategic... and not tactical.
Remember the brand promise. Stick to it.
Don't become a prisoner to noise and SPAM
A branded house makes more and more sense.
It ends up returning a bigger ROI.
BMW has trained its customers to
prefer the brand. Then buy the model that is right for you.
It's not just right for automobiles. It makes sense for most brands today.