BMW uses its mystifying Alpina brand to capture ultra-wealthy buyers - Business Insider

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How BMW uses its mystifying Alpina brand to capture ultra-wealthy buyers who want the 'ultimate Ultimate Driving Machine'

The Alpina B7 is superior in every way to BMW's flagship 7-Series, which starts at nearly $15,000 more.The $143,000 Alpina B7 is a special kind of BMW, a luxury ride that springs from 0 to 60 mph in 3 seconds.

With all-wheel-drive providing prodigious grip, it can blast from 0 to 60 mph in just over three seconds on its way to a top speed of 205 mph, making it among the fastest sedans in the world.

The Alpina brand was founded as an aftermarket upfitter in the mid-60s, when Burkard Bovensiepen developed a dual carburetor kit to increase the power output in his newly purchased BMW 1500 sedan . Wanting an official imprimatur of the quality of his components, Burkard presented these kits to BMW sales director Paul Hahnemann. Hahnemann passed them on to the brand's technical director, who tested them and said they were factory quality and wouldn't violate the warranty.

Moreover, BMW, like many high-end automakers, already has an in-house go-fast tuner, BMW M, which outfits nearly every one of its models with mechanical and aerodynamic performance upgrades. It even has a division, BMW Individual, that will customize a vehicle for a client, providing special paint, interior or exterior materials, or trim details across the product range. "Demographically, the M cars and the Alpina cars have a lot of overlap.

There is also a clear, internal BMW business case for this vehicle. "The Alpina models extend the role of the 7-Series throughout its life cycle., expanding the portfolio for BMW," Russell says. Cars like the B7 allow BMW to identify customer groups underserved by its current offerings, and find opportunities to expand its product lineup without risking dilution. "This lets us reach different psychographics within a demographic segment.

 

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