MARKETING CONCEPT OF BMW

Marketing Concept of BMW



Marketing Concept of BMW

Executive Summary

BMW with its unique brand image is successful in highly competitive market. BMW with increasingly demanding customers launches products according to the desires of the customers that clearly build on its image as a premium sports car manufacturer. Although this is a good strategy, certain parts of the marketing mix need to be adjusted. Especially the high price of the product in comparison with its competitors is a potential problem. The following suggestions can be given to build up a sustainable leading position in this segment, which is very important in terms of Customer Lifetime Value (CLV).

Developing new distribution channels

Reduction of problems in quality

Increased promotional measures focused on the target group

Strengthening of relationship with the dealer

New development in technology through augmented R & D measures

Introduction

The Bayerische Motoren Werke also commonly known as (BMW) is the world's most renowned automobile brand. The company is based in Germany with its headquarter in Munich, Germany. BMW manufactures automobiles, aircraft engines, motorcycles, and other premium products Rolls-Royce, BMW mini. The company has a total of 23 production facilities around the globe in 12 different countries with representation in more than 140 countries. The company is famous for its world class luxury cars offered to international customers. BMW is considered as the world's leading and most leading premium manufacturer. In the year 2007, the company reported a net profit of €3 billion, with more than 222,875 mini units, 1,276,000 BMW brand cars, and 1,010 Rolls-Royce cars. BMW AG, has employed more than 107,000 (2007) employees throughout the world (Baker 2008, 143).

Despite the fact that the company lost the first position in the automobile sector which it held for many years, BMW remains among the top five companies on the DAX and (CTI) corporate trust index of German companies. The company is still ahead of its competitors Daimler and Volkswagen in terms of market share and customer satisfaction. BMW is following a local production strategy; BMW is highly committed towards its long term strategy of market penetration, while at the same time escaping high duties on imported foreign produced cars. Another production and sales strategy used by the company is the (CKD) process which is known as completely knocked down process in which different components and parts are imported from different local and international assemblers.

Business Mission

The slogan “sheer driving pleasure” defines the business mission of BMW, which pronounces a great experience of driving. So, BMW's long tradition as a manufacturer of premium cars is connected to the attributes sporty, high quality and reliability. This orientation can also be found for the BMW series, where Kermit the frog campaigns for "the principle fun". The market introduction of the BMW series was headed “like no-one". In line with the business mission of BMW, the series is connected to a long tradition as the successor of the BMW2002tii from 1971 (Worth 2003, 36).

External Marketing Audit

The macro environment of BMW will be explained by the PESTEL analyses that ...