...Marketing strategy and pricing strategy of BMW Published: 23, March 2015 2. INTRODUCTION AND SCOPE OF THE PROJECT The topic that has been chosen for the project is related to the car industry i.e. to research the business strategies of BMW. BMW is the leading premium car manufacturer in the world. The report will look at the current business strategy that BMW adopts and also the future strategy of BMW Group. Business strategy has been defined by Johnson, Scholes & Whittington in their book "Exploring Corporate Strategy" as "a strategy that is concerned with how a business competes successfully in a particular market. It concerns strategic decisions about choice of products, meeting needs of customers, gaining advantage over competitors, exploiting or creating new opportunities etc." In this project, the author will research the marketing and pricing strategies of BMW Group. Also the markets BMW target and how BMW group as an automobile industry faced the recession period. The project will also look at the growing competition in the automobile industry and the major competitors for BMW Group. The marketing strategy of BMW Group will include their segmentation, target markets, marketing mix and by using SWOT analysis, the author will describe the advantages and benefits it is delivering to its customers and also its disadvantages. The pricing strategy of BMW will also be described. BMW adopts a differentiated strategy so the author will describe how it affects the...
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...2 Marketing communication concepts 2 The evaluation of IMC practice of BWM i8 in United Kingdom and United States of America. 4 1) BMW i8 target market in UK and US: 4 2) The key messages of BMW 5 3) An examination of the marketing communications tools and media used 8 Advertising: 9 Sales promotion 11 Direct marketing & personal selling 11 Public relations 11 4) Similarities and differences of the marketing communications in UK and US. 11 5) How the communication activities are helping BMW 13 The key challenges of practicing IMC of BMW: 14 1) The key issues impacting upon BMW’s IMC: 14 2) Measurement of level of IMC evident: 16 Recommendations on further use of the tools/media 18 Conclusion 19 References 20 Appendices 26 Appendix 1: Planning and Implementing of IMC 26 Appendix 2: Factor impacts on customer’s purchasing in UK 27 Appendix 3: Factor impacts on customer’s purchasing 27 Appendix 4: Levels of IMC 28 Appendix 5: Four pillars of IMC 28 Introduction This paper provide an overview about the integrated marketing communication of BMW Corporation for the BMW i8 model in the United Kingdom and the United Stated. In those markets, the BMW i8 is considered as the first car that revolutionized in utilization and release values of a sport car. The purpose of the paper is to give information about the strategies of BMW in order to announce the BMW i8 to customers by using marketing communication...
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...HinseneBeyene sgs0262/2006 Marketing Management Individual Assignment Case 1 Question Number 1 Answer Pros to BMW The pros of selecting target marketing is • BMW created the lower-priced 1 Series and X3 SUV to target the “modern mainstream,” a group who are also family-focused and active but had previously avoided BMWs because of the premium cost. • The 1 Series reached this group with its lower price point, sporty design, and aspiration to own a luxury brand. The X3 also hit home with its smaller, less consumers expensive SUV design. BMW introduced convertibles and roadsters to target “post-moderns,” a high-income group that continues to attract attention with more showy, flamboyant cars. BMW’s 6 Series, a flashier version of the high-end 7 Series, also targeted this group. • It helps to identify and asses the relative worth of different market segments and selecting one or more segments in which to compete. • It helps to easily identify the potential customers by targeting into specific groups or individuals. • BMW uses a wide range of advertising tactics to reach each of its target markets but has kept the tagline “The Ultimate Driving Machine” for over 35 years. During that time, U.S. sales of BMW vehicles have grown from 15,000 units in 1974 to approximately 250,000 in 2009. Cons to BMW The Cons of Selecting target segmentation • It was too selective strategy and were not able to see other marketing strategy • The strategy was not flexible...
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...samochodowe | 249.7 | 219.7 | 174.9 | 148.5 | 154,5 | Dochody ze sprzedaży przed opodatkowaniem | 8.0 | 10.7 | 10.2 | 10.4 | 10.8 | Wskaźnik kapitału własnego | 21.7 | 22 | 23.2 | 25.7 | 24.0 | Segment samochodowy | 40.9 | 41.1 | 41.0 | 42.2 | 39.1 | Segment usług finansowych | 7.1 | 8.7 | 8.6 | 9.1 | 8.8 | Kapitał własny jako procenta aktywów trwałych | 35.7 | 36.4 | 37.6 | 41.3 | 38.2 | Rezerwy i zobowiązania długoterminowe jako procent aktywów trwałych | 68.8 | 66.0 | 65.0 | 59.9 | 59.5 | Koszty badań i rozwoju nieznacznie wzrosły w 2014 roku do około 4,6 miliarda euro, a inwestycje wzrosły do około 6,1 miliarda euro. Łącznie ze swoimi produktami i usługami, grupa BMW zwiększyła swoje dochody do kwoty 80,401 milionów euro. Wyniki sprzedaży wzrosły dla wszystkich trzech marek BMW Group – BMW, Mini i Rolls-Royce o...
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...Marketing Plan the Chicago Hungry Fest Mohammed Ahmed Corinne Berger Michael A. Williams Team BMW Keller Graduate School of Management- Chicago IL Location Marketing Management MKTG-522-16467 Professor Robert Pandel February 21, 2014 Marketing Plan The Chicago Hungry Fest Section 1.0-Executive Summary We established our group in the winter of 2014 on Wednesday, January 15 at Keller Graduate School of Management, Chicago Illinois. Whereas, the body of Berger, Mohammad & Williams, Inc. the "BMW Food Events, inc., Group"; with expert knowledge or training, especially in the fine arts of the culinary world and informed and discriminating event planner; hereby, created the annual The Chicago Hungry Fest: a tasting and contest event of each of Chicago’s top fast foods; herewith, we are established. (BMW,2014) Section 2.0- Situation Analysis What critical issues do you face? We can face natural conditions beyond our control such as server weather conditions, fires, and venue building damages. There can also be day to day issues such as not enough patrons to come out to the event which will result in poor participation within the vent itself. We can also have food vendor issues involving food contamination or not enough products to sell to our consumers. The vendors might have personal restaurant issues with “no shows”. Patron issues could be, but hopefully not, related to food poisoning or sicknesses. [ (Rozelle, 2009) ] What forces in the microenvironment...
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...Wie bereiken? Met de BMW i3 willen we ons richten op alle mensen die al klant zijn van BMW en van hybride auto’s. We zouden het product bekendmaken bij ons doelgroep in het 2de kwartaal van 2015. Bij het introduceren van het product zal er vooral aandacht besteed worden aan de mensen die economische willen rijden. Aangezien dat de benzine prijs steeds stijgt en dat vele mensen minder de auto gebruiken is het belangrijke om het product op een goede manier te lanceren. Na de bekendmaking van ons product, zullen we verschillende acties introduceren om de verkoop te bevorderen ( bv; bij aankoop van een BMWi3 een reductie op de BTW of een overheidskorting doordat het een ecologische auto is). Dit plannen we voor het 3de kwartaal van het jaar 2015. De auto’s zullen in het begin enkel beschikbaar zijn in het zwart en wit. Niet veel extra snufjes zullen aanwezig zijn. Pas rond eind jaar 2015 zouden we rekening kunnen houden met de echte behoeften van de klanten qua kleur, model,… Het product zal kunnen gefabriceerde worden naargelang hun eisen (designs, kleur, model, interieur,… Later zullen we nog andere doelgroepen proberen te overtuigen met ons nieuwe product. Met het feit dat mensen meer en meer voor ecologische auto’s opteren zullen ons verkopen kunnen verdubbelen. Dit hopen we toch voor de toekomst. BMW is één van de bekendste autobedrijven. De merk wordt over de hele wereld verkocht. We kiezen ervoor om de bijhorende BMWi3 ter beschikking te stellen in heel België...
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...environment, strategy plays a very critical role in ensuring the success of a company. This report gives a limelight on the extent to which strategy has contributed to the superiority of BMW in the UK automobile industry. In analysing this, the report will begin with an evaluation of BMW as a premium car manufacturer. The report then employed the use of PESTEL and Porters five forces to analyse the external car industry environment. The internal environment are analysed by use of value chain analysis. Bowman’s Strategy Clock is also explored in understanding the marketing strategy used by BMW Company. Finally, Resource/ competence framework has also been explored in understanding the key competencies and resource capabilities that has enabled the BMW to maintain market leadership position. In compiling this report, major sources of information used were journals, empirical literature and the internet. The findings of this report show that strategy has played a pivot point in BMW’s overall performance. Generally, the report shows that unstable political environment in the UK and the global market is greatly affecting the industry. Moreover, socio-cultural environment greatly affect the industry as consumers are becoming more environment conscious. This has especially reduced the sales volume of BMW. The UK government legal policies have also been addressed in the report. Advances in technology have also spurred competition in the industry thereby reducing the significance of branding...
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...board. This accounts for almost 90 percent of vehicle produced thus a scramble for available markets, attention now turns to upcoming economies like Russia, Latin America and Eastern Europe, Governments in developing economies aware of the value of their prospective growth auction off their market share to the highest bidders, like BMW, this investors hoping to increase manufacturing capacities so as to build their intended market bid away their economic returns and in so doing multiply the overcapacity problem on a large scale (Griffin & Pustay 2009). Risks involved in venturing into new markets weigh in and most companies aware of the consequences of losing a market place bid, this either plays out in the company over bidding or throwing in the towel and losing the market. Differentiation Successful ECO-Specialties must emphasize their differentiation. Differentiation means that the marketing mix is distinct from and better than what is available from the competitor; product differentiation is the core to a healthy market share. An abundance of option for the vehicle buyers exists with vehicle models with almost similar functional characteristics, BMW is now forced to manufacture unique products for a particular region at a point in time, and this is to cope with tastes and fickle needs of consumers. This differentiation wanes on their budget heavily since financial consequences of missing a market are disastrous (Prahalad & Hamel 1990). Innovation Commitment to innovation...
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...CASE STUDY OF BMWi INTRODUCTION: BMW start their work as a business entity in 1917. They entered in automobiles in 1928-29. They first significant aircraft engine then they shift their business to motorcycle and then automobile industry. They unveiled two new models, they launch their electric motoring division BMWi. This i3 is an electric small car and on the other hand i8 is a very powerful sports car. They combine the electric motor with the three cylinder combustion engine. For the reduction of weight the car is constructed with the light weight aluminum, in their structure and body from the strong but light carbon fiber. They also have small batteries. BMW are very much cautious about predicting that there will be a demand of electric car in the future. TASK 1 (1a,1b): Reason behind this decision: The reason behind this decision of BMW to make BMWi is that, they have taken preventive measures to reduce the impact of automobiles on the environment. They want to design less polluting cars by making their existing models into the more efficient along with the environmental friendly fuels as vehicles if future. The possibilities of which are as: electric power, hybrid power (combustion engine and electric motors) hydrogen engine. Now the BMWi has all this, it is relatively simple in production process. It does not involve any press shop, welding shop and the paint work is also in a very small quantity. Mr. Robertson insists that it means, “it is much easier to ramp up production...
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...An analysis of the repositioning of the “BMW Mini” brand C. Simms and P Trott . Business School, University of Portsmouth, Portsmouth, UK Downloaded by Myongji University At 05:37 14 May 2015 (PT) Abstract Purpose – This paper aims to adopt a consumer behaviour perspective and investigate the extent to which BMW has repositioned the new “Mini”. It builds on a previous paper that explored perceptions of the “Mini” brand. Design/methodology/approach – The study adopted a two-stage approach to data collection, consisting of 66 in-depth interviews with a cross section of important stakeholders with high brand awareness and knowledge. The paper develops a conceptual framework and offers a novel way for firms to consider the effects of their repositioning strategies on consumers perceptions of a brand. Findings – The findings reveal a substantial repositioning of the brand’s functional appeal, moving away from the car’s price as an appeal towards product build quality. Furthermore, the Mini’s symbolic appeal, which is based on its fun and sporty image, has largely remained in place. Practical implications – Firms need to recognise the importance of repositioning at both the symbolic and functional level. Originality/value – The paper presents a novel conceptual framework for viewing repositioning strategies and presents evidence of repositioning at both the functional and symbolic level. Keywords Brands, Consumer behaviour, Cars, Brand image Paper type Research paper ...
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...BMW Marketing strategy!! Well how many of you know the abbreviation of BMW??? To be frank, when I am writing this for you, I have got to know that and I swear I don’t actually know it before writing this article. My rigorous researches have told me that, BMW is Bayerische Motoren Werke AG and for the comfort of people like me, it is read in English with the name, Bavarian Motor Works. Yes, here we are to analyze the marketing strategies followed by this beautiful car selling company but before that lets hunt what is its past.. Ready people??? A German automobile, motorcycle and engine manufacturing company, BMW!! It was founded in 1916 by Franz Joseph Popp in Germany restructuring a Rapp Motorenwerke aircraft manufacturing firm. Owing to the terms of Versailles Armistice Treaty after the end of World War I in 1918, BMW has had to stop producing the aircraft engine and so it sliced its world of manufacturing into the motorcycles and automobiles. The first car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixie, it was based on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England. Since then there was no stopping for the productions and giving a feast to the eyes of the world for their newer and newest beautiful productions as well. How was this company so successful?? This is the most common question one would have when he/she get to listen about the company because...
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...Marketing Plan for BMW 3 Series Dipanjali Biswas 2014143 Disha Divecha 2014144 Eden Jacques 2014145 Gaurav Nolakha 2014146 Ghanishtha Agrawal 2014147 The slugfest between Germany's Big Three automakers in India has a new winner. After leading the Indian luxury car market for four straight years BMW has dropped to the third position. The new leader is Audi India, followed by Mercedes, which has also moved one place up. Both Audi and Mercedes have been working feverishly to gain better market share in the country. To this end both Audi and Mercedes opened several new dealerships across the country. Mercedes currently has the largest reach as far as service centers and dealerships are concerned. For Audi, its SUV line up has been a strong point as well. Things, however, could easily change for BMW in the coming months due to introduction of new vehicles. BMW recently launched the 2013 7 Series luxury sedan facelift in the country. Furthermore, it has new vehicle launches planned. A report, by TOI, dated 26th August 2014, stated that consumers from smaller towns like Ludhiana, Coimbatore, Surat and Pune are driving online search for luxury cars in India with BMW and Mercedes-Benz emerging as the favourites at the top of the list, tech giant Google said today. According to Google’s trends, conducted between January and August 25, German car makers BMW and Mercedes-Benz were the most searched luxury car brands in India, followed by Tata’s Jaguar...
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...profitability, due to their high level of sales, and the low level of expenditure needed to maintain the sales levels. The 7 series however is a model in decline in terms of its lifecycle. It is found at the ultimate destination of all products, a ‘dog’. The production does have market share, but its desirability is waning and its performance relative to its competitors is not what it once was. The market for the 7 series however, is still performing well. This means that BMW should, and will review the model with a view to re-launch in the near future. The above products are all fairly settled. Many of them have been being manufactured for many years now with several re-designs and re-launches. BMW has however recently begun expanding its portfolio, and the result of this is some new star and problem children. One of these stars is the X5. The X5 is a new market area for BMW. The 4x4 market can be extremely profitable, especially the ‘On road’ 4x4 products. This market is very large and growing, and BMW have made an attempt to get a slice of the cake with the X5. The Z3 and Z8 are very similar products. They are both small sports cars, differing in the Boston Matrix in terms of market share and price. The Z3 is a star, but the Z8 could be described as a problem child. More affordably priced than the Z8, and with a larger share of the growing market, the Z3 is a product beginning to mature and generate a...
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...Final Project Marketing Plan BMW has always been premium brand oriented company. It manufactures three brands in BMW, MINI, and Rolls-Royce. These brands occupy various high end market segments from small car to luxury premium car. This leads to BMW become the only both premium car and motorcycle manufacture. Each brand within BMW has its own clear brand image. Its products have rich product connotation in aesthetic and dynamic design, dynamic performance, technical content, and overall quality. Thus, it can provide customer with practical value. Build on this basis, BMW can expect higher margin and continuing to maintain profitable growth and ensure its independent status. SWOT OF BMW The SWOT analysis is a sum up of the external and internal analysis. Moreover, the SWOT analysis will be used to manipulate the strategic findings in order to identify which areas are of particular interest for the BMW Group. This covers both the identification of the best opportunities and the biggest threats to the organization. The SWOT analysis will put things into perspective by identifying, which threats and opportunities should be dealt with right now and which should be a concern for the organization in the future. (http://pure.au.dk/portal-asb-student/files/10730/Valuation_of_BMW.pdf) The internal factors to...
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...Works (BMW): An Analysis on its Success as a Multinational Enterprise Introduction BMW Group manufactures products under three brands: BMW, MINI and Rolls-Royce Motor Cars. BMW is a Multinational Enterprise that has been manufacturing and marketing luxury products for about a century. The company is currently the largest premium car maker in the world, followed closely by Mercedes-Benz and Audi. Their headquarters are located in Munich, Germany, and the building itself is also a well-designed masterpiece allowing visitors a glimpse inside the techniques utilized to keep BMW a true competitor on the global scale. This Multinational Enterprise is made up of twenty three production and assembly plants in thirteen countries, forty one sales subsidiaries all over the world, and ten locations in the Research & Development network in five countries. According to the company's current annual filing, it had FYE 12/31/2011 revenue of $90.9 billion and employs one hundred thousand and three hundred and six people (Bayerische). These values ensure its positions as one of the ten largest cars manufactures in the world. Bavarian Motor Works has been able to sustain its position as a successful Multinational Enterprise by adapting to the changing global marketplace through adopting environmentally friendly policies, smarter spending, relevant marketing and partnering with other automobile companies to continuously strengthen its brand and technology. History The history of the BMW dates...
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