The Benchmark Brand Does It Again
Few brands have developed as clear an identity as BMW. What do I mean by a clear identity? Think about BMW and what immediately comes to mind? Performance; 'the ultimate driving machine' or so the slogan goes. There's no confusion in what a BMW is. It's prestigious, luxurious, extremely well made, of course, but a vehicle must also deliver the best in driving dynamics to get the blue and white roundel on the hood.
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| Following the success of the X5, BMW is ready to add another "Sport Activity Vehicle" to its lineup, the X3. (Photo: Trevor Hofmann, Canadian Auto Press) |
It was because of such high expectations that the German brand's loyalists were concerned when BMW announced that it would be entering the SUV market at the end of last century. When it turned out that the X5's handling surpassed some of BMW's production cars the apprehension quickly turned to pride, as the new luxury SUV, or more correctly SAV (Sport Activity Vehicle), what BMW likes to call it, took top honors in every automotive publication. Sales soared and the rest is history.
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| The X3, based on 3-Series architecture, already has high expectations to live up to, thanks to the success of the X5. (Photo: Trevor Hofmann, Canadian Auto Press) |
Truly, a new benchmark had been set. Much like the bragging rights the 3-Series held in the compact sport/luxury sector, and the 5 and 7 do likewise for their respective categories, the X5 has become the icon of sporty SUVs. What to do next? Capitalize on the newfound success by shifting the strategy up or down market.
BMW chose down. Enter the X3, based on 3-Series architecture just as the X5 is founded on the 5-Series sedan. The Bavarians had positive and negatives on their side when considering the new compact luxury sport utility: 1) The X5 had already paved the way, proving the business case, developing the product formula and setting the standards for the new compact model, and 2) Expectations would be extremely high due to the success already experienced with the X5.