A company is required to position its brand so that it can reach to a wide range of customers. In order to position products, it is important to devise marketing strategies that helps in grabbing the attention of their potential customers. This study is going to shed light on the marketing strategies used by BMW. BMW is regarded as a flourishing compsany in the automotive industry. The background of the company has been discussed in this study. There is an attempt made to undertake a comparison between the product, price and sustainability. This study will also try to compare the position of BMW with that of its rival companies.
BMW is a Bavarian luxury vehicle and is regarded as one of the best automakers in the automotive industry. It has been found that during 50’s BMW has been trying to hold a high position in the automotive industry. The company is comprised of four label that include Mini Motorcycle and Rolls Royce. These labels of this company makes up for almost 78% of its brand and it helps the company to stay ahead of their competitors such as Audi, Mercedes-Benz and Lexus. BMW sells almost 1million vehicles on a yearly basis (bmw.com/en/home.html. 2017).It is regarded as leading in the market of automotive industry by holding a 14th rank in all car sales and it holds a first place in the sale of luxury cars.
The company is trying to endorse its brand by performing social activities. Recently the company has collaborated with Paralympics. It is creating a new kind of racing wheelchair that can be sued by the disabled people participating in Paralympics. This kind of social works have definitely help the company to strengthen their customer base. The CSR activities help a company to form strong bonds with their customers (Adams et al. 2016, p.200). The company has wealthy and loyal customers. It has allowed them to launch luxurious cars.
BMW is known for its luxury cars with comfortable seats and custom climate. It sells a wide range of automotive products that includes sports car, motorcycle, luxury vehicles and bicycles. BMW products are designed in such a way that it will assure its driver of its safety (Bmwgroup.com. 2017). The owner of the company believes that safety is their first priority. Their cars are made to provide a comfortable journey experience to the customers. The cars are made up with cutting-edge dashboard, leather seats and buttery seat belts. The amazing features in the car have helped them to stay ahead of their competitors. Its competitors are focusing on either legacy or durability whereas BMW emphasizes on both. The cars of BMW have a sleek exterior and they put more emphasis on their designs. Cars are designed to provide enjoyability of their customers. The company is intended to adopt technologies that are able to fulfill the future needs (Bmwgroup.com. 2017). Recently the company has introduced run flat tires and its introduction has replaced need of spares in trunks. The launch of BMW aims at providing environmentally friendly cars for the customers.
In the year 2006, the company has produced almost 1,366,838 four wheelers that were manufactured in five countries. In 2010, it produce more than 1,481,253 cars and 112,271 motorcycles (Bmwgroup.com. 2017).
BMW has a worldwide market ranging from China, Malaysia, India and Indonesia. The above data indicates the fact that the company has considerably increased their production. The global suppliers of this company help in contributing to its value, innovation and quality (Ashley and Tuten, 2015, p.16). The company has almost 13,000 suppliers that comprised of 70 countries. In order to maintain sustainability, the company has collaborated with human rights commission and with social and labour standards. They aim at collaborating with their suppliers based on mutual understanding, competitive process, quality and innovation.
The BMW is known for its durable and sustainable products. It has gained large-scale customers and has earned brand loyalty. Forbes have considered BMW group as the leading seller of luxury cars. In order to promote their cars, the company often participates in rally cars and formula one.
The Company basically produces luxury cars and motorcycles. One of the main features of their product is that they are meant for all kinds of customers ranging from lower income groups to higher income groups (Davari, and Strutton, p.564). Their cars are filled with a wide range of features. Their cars contain features that provide reliability and comfort of their customers.
BMW generally manufactures high-tech cars and so in order to sell them they require a premium price. The prices of their cars vary with respect to the model or series. As the company sells luxury cars, so it targets upper class people. Their cars are more expensive in compare to other car companies due to use of new and advanced technology. Recently the company has launched low priced cars meant or middle class families and its price starts from 22.5 lacs (Bmwgroup.com. 2017).
In order to promote their products, the company is taking help of both mass as well as print media. They are promoting their cars through attractive commercial advertisements.
the company has authorised showrooms and the cars are sold directly from their showrooms.
The BMW is using a wide range of sources for communicating with their potential customers. These include sales promotion, public relation, and advertising and print advertising. The company is making use of direct marketing for reaching to their target markets. The marketing message of this company is to emphasis on digitalisation of BMW vehicles. In the year 2014, the company has invested almost 291.4 million on advertisements (Bmwgroup.com. 2017). Their advertisements are based on their segments. There has been a trend among the BMW group that is to depend on mobile media. It has been found that in the year 2015, BMW advertise in We Chat for the first time. Nowadays many companies like Toyota and Volkswagen are using viral marketing although BMW have not been able to make use of viral marketing. Apart from advertisements, the company is also using sales promotion methods. Sales promotion methods aim at providing customers with incentives for increasing their sales (Helm and Gritsch, 2014, p.35). BMW is sing sales promotion as an integral part of their marketing strategy. The company organises seasonal campaigns for sales promotion. They are also promoting their brands by participating in loyalty programs. The company is launching new kinds of sports cars for Paralympics event. It is helping the company to gain customer satisfaction. In North America, BMW provides an USD500 or USD1000 to their repeated purchasers. The company is playing an effective role towards maintaining sustainability by manufacturing products with environmentally products.
BMW has flourished as a major company in the automotive industry. The company has adopted a number of distribution channels for promoting their products. A company is required to manage their value and supply chains for managing their distribution channels. Distribution channels helps in ensuring success of a company in connecting with their customers. BMW has established a new channel for distribution regarding 5-series sedan. They have allocated their new series in one of the three locations. In North America, BMW has decided to pay storage cost until the dealers have a buyer (Lee and Kotler, 2015, p.5). It is based on a pilot program. The company is trying to adopt central stocking rather than shipping their cars. Its benefit is that they are getting a scope to have a lower floor plan, higher customer orientation and better grosses.
The BMW have a number of rivals but among them Audi proves to be its biggest rival. Although the company has maintained its position in the automotive industry, still it requires holding its place in order to compete with its rival Audi. Audi is known for its sustainable products. The cars that are produced by the rival company are using technologies that help in reducing harmful emission. This is the reason for the company to increase their customer base. Recently the tagline of Audi puts emphasis on building honesty as well as increasing trustworthiness of the company. The company is manufacturing luxury cars. In this respect, it can be said that BMW have an advantage over its rival. This is because BMW produce a wide range of products other than luxury cars. The Audi car has faced problems regarding their product failure. This has resulted in low brand image of the company. This can be used as an advantage for BMW. Still Audi remain one of the best selling brands due to their appealing features. In compare ton BMW, Audi has only 28 dealerships. Like BMW, Audi too have a worldwide production (Mullin et al. 2014, p.10). They are able to maintain their market with the help of exclusive dealership. On the other hand, BMW has tried to gain a wider market.
The study gave an overview of the marketing environment of BMW group. It is useful for understanding the strategies that are used by the company for improving their sales. It can be said that an organisation is required to adopt appropriate strategies for gaining prominence over the market. Studies have shown that companies that uses environmental friendly prost are able to gain more market share. This is because customers like to buy products that are sustainable. It seems that BMW is able to hold market share due to their social activities. Their launching of racing cars for disabled is an advantage for them over their competitors. However, the company is required to adopt a flexible pricing strategy and try to lower down prices of their cars so that their cars are made affordable to middle class people. It is assumed that BMW need to manufacture eco-friendly products so that they are able to gain customers who are intended to buy product that are eco-friendly.
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