IILM BMW Assignment - 500 Words

5/24/2018 IILM BMW Assignment - 500 Words

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Company Overview: BMW

Bayerische Motoren Werke AG known as BMW is a German based premium car

manufacturer, motorbike and engine manufacturing company. Founded in 1916 by

Franz Josef Popp, the company is a part of German Big 3 luxury automaker in

comparison of Audi and Mercedes Benz known as best-selling luxury car makers around the world

(BMW, 2014). The company itself own three luxury car brands namely BMW, Mini and Rolls Royce. The

group companies also includes the motorbike manufacturing and financial services business. Generating

a profitable growth and above average return are the key focus areas of the company thereby serve

niche market for premium luxury car market (Bloomberg, 2014). With extremely strong brand value, the

company has unique selling proposition though innovation, engineering excellence and high

performance cars. Under the leadership of Norbert Reithofer (CEO), Joachim Milberg (Chairman of the

supervisory board), Adrian van Hooydonk (Vice-President) and Karim Habib (Director of Design), thecompany is able to generate annual revenue of Euro 76.84 billion in 2012 with the total production

capacity of 1,861,826 Automobiles and 125,284 Motorcycles. Total operating profit of the company in

2012 was Euro 8.3 billion, net profit was Euro 5.13 billion, total assets was Euro 131.85 billion and total

equity was Euro 30.40 billion. With the total human capital of 105,876 employees worldwide, the

company known as renowned brand in luxury car market segment across the globe. The Automobiles

segment of the company involved throughout the supply chain of car manufacturing starting from

design development, part manufacturing, assembly, and sale of cars and off-road vehicles. The company

has total 22 production and assembly plants, 34 sales subsidiaries and a research and development

network across the world markets. Overseas subsidiaries are located at Canada, China, Egypt, India,

Japan, South Africa and United States (BMW, 2014).

Corporate Marketing Overview:

Consistent marketing policy and market niche strategy are the key attributes of marketing success of

BMW. Europe and North America are key markets which carries 65% of the total sales of BMW cars.

Target customer profile of BMW is men and women aged 30 to 40 years with annual household income

of USD 80,000, having a clear image of car before they buy it which includes a clean modern look or

sports look, and the feel good factor of an established dealer network. Innovation and engineering

excellence are the key pillars offering a unique value and driving experience to the customers. The

product attributes of any typical BMW car includes Sedan, Coupe, Convertible, Touring and Compact.

The car prices are ranging from Euro 16,000 to Euro 60,000 and above. Engine size and motor sport


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version are couple variants which drives the car prices of different model and make. Superior market

dealership is used by the company to distribute its cars (Innovation Leaders, 2014). The company has

been using WCRS since 1979 to design the advertising strategy for its cars. One of the key promotional

strategies of the company is its brand association with James Bond movies since 1993. BMW strives hard

to find out what their customersneeds are and works hard towards fulfilling them .They believe that it

is important to satisfy customer needs to keep customers happy and satisfied (The Korean Times, 2012).

References:

Bloomberg, 2014. Bayerische Motoren Werke Ag (BMW:Xetra) - company description. [Online]

Available at:

http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=BMW:GR

[Accessed 21 April 2014].

BMW, 2014. Company Information. [Online]

Available at: http://www.bmwusa.com/Standard/Content/CompanyInformation/Default.aspx


Innovation Leaders, 2014. Profile: BMW. [Online]

Available at: http://innovationleaders.org/bmw_company_profile.html


The Korean Times, 2012. Global marketing strategy of BMW. [Online]

Available at: http://www.koreatimes.co.kr/www/news/bizfocus/2011/10/335_96718.html



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IILM BMW Assignment - 500 Words

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