Success story from ex-plane enginemaker<\/p>\n
Berni K. Moestafa, The Jakarta Post, Jakarta<\/p>\n
BMW calls its cars ultimate driving machines.<\/p>\n
The words are Ultimate-Driving-Machines. Combined, they
\ndescribe what the company claims to be pure driving pleasure.<\/p>\n
This is the BMW promise many people hold onto when choosing a
\ncar to reward their hard-earned success. Getting a taste of what
\nBMW promises to deliver means getting under the skin of the
\ncompany.<\/p>\n
\"BMW is a technology driven company,\" said Joachim Milberg,
\nchairman of the German-based BMW AG's board of management, in an
\ninterview with The Jakarta Post last month.<\/p>\n
The German bent on technology may leave some people cold, but
\nhardly if it is applied the BMW way.<\/p>\n
Quoting Milberg from a book on the company's history: \"Brand
\ncultures are shaped by personal passions and longings. Our design
\ntechnology is geared to fulfill those desires.\"<\/p>\n
Last century's economic boom made a wide range of desires
\naffordable, enticing car makers to launch new models that cater
\nthese demands.<\/p>\n
At BMW, this trend is marked with the introduction of new
\nroadsters, such as the BMW Z3 and the Z8, and its adventure into
\nunchartered territory with the X5 sport activity\/utility vehicle.<\/p>\n
Other companies went on the same production binge, hoping to
\nget a foothold in the more segmented car market. As more models
\nfill up the streets, the harder it has become to distinguish
\noneself from the competition.<\/p>\n
\"First of all, BMW is a premium brand,\" Milberg expounded.
\nThis, he said, meant added value in product substance and brand
\nimage.<\/p>\n
Product substance is easily understood as the hardware of a
\ncar, a promise of cutting edge technology for which people are
\nwilling to pay more.<\/p>\n
And then some more for buying the BMW brand image. But what
\nexactly does BMW stands for?<\/p>\n
\"A dynamic, challenging and cultivated way to drive,\" he said.
\nWith this, the car manufacturer hopes to speak to people who live
\nby these values.<\/p>\n
\"There is a similarity between the BMW brand and the profile
\nof the buyers,\" Milberg said.<\/p>\n
When looking at existing profiles, the qualities \"dynamic\" and
\n\"challenging\" are most likely to be found in younger people.<\/p>\n
For those climbing the ladder of social status, they might
\nalso mean \"hard work\" and \"ambition\".<\/p>\n
Of all BMW models, they seem to be best personified by the BMW
\n3 series. Hence the taste: Buying a BMW 3 is celebrating one's
\nfirst success.<\/p>\n
By contrast, Mercedes Benz's image appears to come from a top
\ndown approach, where its S and E-classes rule the market of
\ncorporate bosses.<\/p>\n
President of PT BMW Indonesia, Klaus Biskup, said the 3 series
\nis the company's highest selling range, favored by young business
\nexecutives.<\/p>\n
\"The 3 series is closer to our image,\" Biskup said.<\/p>\n
However, when asked for the current epitome of the BMW
\nphilosophy, Milberg pointed to the new 7 series.<\/p>\n
This BMW 7 is packed with the latest of everything in the auto
\nindustry. So much so that Milberg claimed it to be a revolution.<\/p>\n
Underlining its premium brand status, the BMW 7 revolution
\ncomes with an estimated price tag of Rp 1.7 billion (about
\nUS$165,000).<\/p>\n
Anyone willing to fork out that amount for a car must have
\nbeen riding a wave of success for quite some time. For BMW
\nitself, the wave has been a long and often not easy ride.<\/p>\n
In fact, driving was not the first thing BMW had in mind.<\/p>\n
Memories of BMW's early passion is to be found in its emblem:
\na rotating propeller of an aircraft in the white-blue colors of
\nthe Bavarian coat of arms.<\/p>\n
The Bayerische Motoren Werke (BMW) was founded in 1917, as a
\ncompany producing aero engines. Just two years later, a plane,
\npowered by a BMW engine, broke the world record for altitude when
\nit ascended to 9,760 meters.<\/p>\n
The year 1919, however, also marked the end of World War I,
\nwhen a five-year ban was imposed on German aero engine products.<\/p>\n
To survive, BMW changed gear and manufactured motorcycles. But
\nit was not until 1928 that BMW became a car manufacturer and in
\n1932, the 3\/20 model rolled off the production line, the first
\ncar to bear the BMW emblem.<\/p>\n
That followed with the BMW 303, carrying the first kidney
\nshaped radiator grille, which soon became the trademark of the
\ncompany's cars.<\/p>\n
The company struck gold when it introduced its first 3 series
\nin 1975. The 3 series became BMW's best selling range.<\/p>\n
In the fast pulsing markets of Asia, BMW cars quickly won the
\nhearts of many young executives.<\/p>\n
Although Asia represents only an 8 percent to 9 percent share
\nof the company's global sales, the market is growing fast.<\/p>\n
In 1998, the Asian market share stood at 6.9 percent. That
\ngrew to 7.4 percent in 1999 and 8.6 percent last year.<\/p>\n
Japan made up around half of BMW sales in Asia, Milberg said.<\/p>\n
But in the crisis-ridden Indonesia, BMW sales growth has been
\neven more impressive.<\/p>\n
As of September, BMW car sales hit 2,418 units, rising by
\nabout 25 percent from the corresponding period last year. To
\ndate, BMW dominates the local luxury car segment with a 40
\npercent share as of August. That compares to a 29 percent leading
\nmarket share for the whole of last year.<\/p>\n
\"Indonesia is a very important market for BMW. It's so
\nimportant that we started a new subsidiary earlier this year,\"
\nMilberg said.<\/p>\n
But as the new 7 model shows, this does not mean that prices
\nof BMW cars will drop anytime soon, if at all.<\/p>\n
What it does show is that the company intends to stay in
\nIndonesia regardless of conditions here, assuring future BMW
\nowners of a satisfying way to celebrate success.<\/p>",
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