Marketing Plan of BMW _ Marketing Mixx

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Marketing Plan of BMW

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Posted on Wednesday, 27th August 2014 by kasi

Marketing Mixx

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The marketing plan has been made to understand the efforts of the BMW Company as how their brand has been ingrained in the minds of its customers.

Executive Summary

In 1913, a company named Bayeriche Motoren Werk (BMW) was established in Germany who used to build military aircrafts and aircraft engines. With the passage of time, the BMW

group also began to produce automobiles, motorcycles etc. The company has achieved a strong market presence in over hundred countries like United States, United Kingdom,

Canada, China, India, Korea etc.

At present, the company has positioned itself in the premium segments with three world’s famous brands i.e. BMW, Mini, Rolls-Royce. In the following marketing plan, the challenges

and strategic goals of BMW, the Situational analysis, Competitor analysis with rivals like Mercedes Benz is discussed. The collaborators of the company, the PEST analysis, SWOT

analysis are presented to identify the factors that determine where the company stands out in the auto- making industry.

Moreover, the market segmentation of the company has been discussed briefly as what kind of strategy the BMW has adopted to be profitable and remain to be the best of all. This

includes the concept of the marketing mix 4ps which defines every aspect of the company from its product, price, place and the promotional tool that they have used to market their

products. In the end, the current revenue and growth of the company has been mentioned.

The marketing plan has been made to understand the efforts of the BMW Company as how their brand has been ingrained in the minds of its customers.

Challenges and Strategic Goals

As the world continues to change rapidly, many countries adopt to individual mobility that emphasizes on political regulation and national industry policy. One of the biggest challenge

for BMW and other companies is Volatility that creates uneasiness in the period of economic uncertainty. In such a situation, the BMW has adopted a Strategy that aligns the BMW

group with two main targets i.e. to remain profitable and raise the long term value of the company. The activities of the company will always focus on the premium segments existing

in the international automobile market.

Situational Analysis

Company Analysis

Goals

The BMW Group has aimed to make an everlasting impact on its nine year reign to be the world’s no.1 premium automaker. In order to achieve this goal, the company decides to

strengthen its internal synergies between its brands like BMW, Mini and Rolls-Royce as well as to come together with new platforms and produce engines that can be shared by more

model brands.

Focus

The Company’s main focus is to be profitable even in the volatile times. The BMW‘s latest strategy is to introduce a new front wheel drive architecture and a three and four cylinder

modular engine family.

Culture

The BMW group is known for its passion for first class performance and to maintain this culture, the company looks for those employees who can bring out team spirit, taking

independent risks and has a thirst for learning. The company promotes a culture of top performance, working together as a team and gives equal opportunity to strive for more.

Market Share

The world’s biggest luxury automaker has surged to a record high in sales as the profits earned by the company new models like 4 Series Gran Coupe and i8 sports car. The market

share has advanced to 5.88 Euros or 7.3 % to close to the highest price when they were first got established in 1926. The stock price has also climbed up to 25% over the past 12

months by adding value of 55.4 billion Euros.

Customer Analysis

The company aims to target the younger consumers who are head-strong and appreciate to buy fast, sleek gadgets. One of the recent example is seen when the German automaker

shows off the new BMW ‘s 32Oi which begins at the price of $32,550.The company targets the younger audience to this new product by placing ads on Spotify as the younger market

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eting Plan of BMW | Marketing Mixx http://marketingmixx.com/marketing-plan-2/296-marketing-plan-

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• Living up to the needs and standards of the consumers. • Market expansion. • Diversifying the brand portfolio. • Increasing the fuel prices can be beneficial.

Threats

• Fierce competition with rivals like Mercedes Benz, Audi, Honda etc. • Decrease in fuel prices. • The rise in raw material prices. • The rise in euro exchange rate.

Market Segmentation

The market segmentation, targeting and positioning is mostly done by companies as businesses cannot fulfill the demands and needs of the consumers of the whole population in an

equal manner. Segmentation helps in div iding the population into different market segments according to the criteria of demographics, geographic, behavioral and Psychographic.

BMW has categorized its market segment in 3 series that is comprised of three different engine sections; this helps people to differentiate as each engine has a different price. The

company has used Demographic market segmentation where they allow the customers to make a purchase decision based on their demands. The demographic segment is further

divided into income, age and gender. BMW is mostly favored by men of age over 35 whose income level is usually more than $75.000.Therefore, it suggests that the BMW targets thehigh income level of consumers. The company’s retail stores are mostly located in areas where the majority of the consumers live in the upper class region. This is how BMW execute

its geographic segmentation. The biggest geographical market segment for BMW is the US and Western Europe.

Marketing Strategies of BMW

Global marketing strategy of BMW

The company understands the logic of marketing the product globally and serving the customers based on their needs. BMW choose to sell to those consumers who have high

standards for quality and luxury as their products are built on these attributes. The company focuses on the premium segments on a global scale. Producing attractive and trend

setting products which ranges from 3 to 7 series are targeted to affluent customers by successfully demonstrating the global marketing strategy. BMW has managed its global

marketing strategy by integrating the emotional marketing perspective which interchanges synergistically to maintain its leadership presence in the automaker industry. In Korea, the

company also donates pre- production automobiles to the faculty and students to further study in the automobile technology.

Innovation Strategy of BMW

The latest innovation strategy implemented by BMW is test driving the BMW X5 eDrive plug in hybrid prototype and the BMW 5 series Sedan; both of them are well equipped with the

latest generation of proactive drive system.

Marketing Mix 4Ps OF BMW

Product

A product is the most important element in the marketing mix as it fulfills the required needs of the customers.BMW has positioned its products as a unique luxury car that gives an

exhilarating driving experience to the customers.

Price

The strategy adopted by BMW is the Value based pricing. The customers are fond of buying BMW cars based on the brand name and quality of their products. BMW also uses Segment

pricing strategy by offering the best pricing options to the graduate students. The price range of BMW begins with $16,000 to $60,000.Factors that affect the prices are engine size,

motor sport version etc. The BMW group also has many discount offers for its valuable customers.

Place

The company use huge market dealership and imports from non dealership networked countries. They have got 4 manufacturing plants in UK. The company is operating in almost 100

countries worldwide with approximately 4000 dealers who are authorized to sell new and used cars.

Promotion

BMW has used several advertising means for promoting their products. This includes television for branding campaigns, new car launches, publications and magazines, outdoor

campaigns, brochures, internet etc.

Short Term and Long Term Projections

In the first quarter of March 2014, BMW has profited from an increasingly responsive market conditions specifically in Europe, by achieving a new sales volume with 480,024A cars got

sold.

According to the current reports, BMW has announced that they will soon outperform the market. This was a consensus forecast since the investment analysis has been improved on

Feb 4th, 2014.The 2nd quarter earnings per share of the BMW Company were about 2.69 per share and achieved the revenue of 19.91 bn.

Conclusion

The BMW group is the world’s leading automaker industry. The company faces an intense competition in the market and in order to remain competitive should consider reducing costs

and expand into new markets. The company has also maintained its brand management which attracts and target the right market and potential buyers.

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