Killer Innovations: reblog

Yesterday, there was a great article in the Wall Street Journal (link via MoneyWeb) about BMW and its new strategy of relying on innovation and design rather than engineering to sell its cars to U.S. consumers:

"For well over a decade, BMW has focused its marketing almost exclusively on its cars' German engineering and technical sophistication, and targeted its message to one very specific customer group -- upscale auto enthusiasts. In a break with that formula, the company is promoting a corporate culture of independence and innovation. One advertisement in a new campaign that has turned heads in the auto industry highlights the design by architect Zaha Hadid that BMW chose for a striking glass-walled factory in Leipzig, Germany. BMW hopes the approach will broaden its position in market share and appeal to a group the company calls "the idea class" -- upscale car-buyers who are swayed more by artistic values than horsepower."

BMW's primary strategic imperative, of course, is to fend off competitors like Nissan's Infiniti unit, Honda's Acura unit and Toyota's Lexus brand, all of which now offer "credible performance vehicles for far less money." The big wake-up call for BMW was an internal study that indicated a whopping 73.7% of U.S. consumers who bought luxury cars in 2004 didn't even consider BMW. (In a related finding, 73.7% of college frat boys didn't consider wearing one of those annoying BMW logo "Ultimate Party Machine" t-shirts in 2004.)

What do you think - will appealing to the so-called 'idea class' mean that BMW will be able to sell more cars in the U.S.? (Oh - in case you're wondering, the "idea class" is indeed a direct riff on Richard Florida's concept of the "creative class")

Tags: BMW idea class innovation design

[image: The BMW factory at Leipzig]