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BMW Marketing Study - doc

   

Added on  2020-05-16

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Running head- BMW MARKETING STUDYBMW MARKETING STUDYName of studentName of universityAuthor note

BMW MARKETING STUDY1Table of ContentsSection A.........................................................................................................................................2Introduction......................................................................................................................................2Part A- Marketing mix and marketing strategy of BMW in China.................................................3Product.........................................................................................................................................4Price.............................................................................................................................................4Place.............................................................................................................................................5Promotion....................................................................................................................................6People..........................................................................................................................................6Process.........................................................................................................................................7Physical evidences.......................................................................................................................7Part B- Environmental factors affecting BMW (using PESTLE)...................................................8Macro environmental analysis.........................................................................................................9Table 2: PESTLE analysis.............................................................................................................12Conclusion.....................................................................................................................................13References......................................................................................................................................14

BMW MARKETING STUDY2Section AIntroduction Bayerische Motoren Werke popularly (BMW) is a German luxury car making company,with headquarters in Munich, Bavaria. It was founded in 1913 by Karl Friedrich Rapp who soonleft the company due to several difficulties and was overtaken by Australian industrialist FranzJosef in 1917 (Sha, Huang and Gabardi 2013). In the present day, the company employs over 1million employees in over 40 countries around the world. Being counted as one of the big threeGerman luxury car brands the other two being Mercedes and Audi respectively, the brand enjoysmassive customer demand and is considered as a status symbol for the wealthiest segment of thesociety worldwide.BMW entered the market of China in 1994 and in 2003, it entered into a combinedproject with a leading Chinese automotive component manufacturing company Brilliance ChinaAutomotive Holdings Ltd. After which it started operating as BMW Brilliance Automotive Ltd(BBA) (Atwal and Williams 2017). The company grew rapidly in the emerging Chinese market.from 800 cars in 1994 it sold 900 cars each day in 2013. In July 2013, BMW announced thatChina is likely to surpass the US market, and added that sale in China were 182,800 units asagainst 172,787 units in US. The company attributed the success to the growth in demand in thesmaller cities of China (Armstrong et al. 2015). As per McKinsey report on China’s market,China was found to be the second major luxury car marketplace after US. The report alsosuggested that the Chinese have an typical annual income of US $16,074 and are eager to splurgeon a luxury car. Based on this report, McKinsey anticipated China’s market to reach 2.25million

BMW MARKETING STUDY3units by 2016 and 3 million units by 2020 and predicted that China would overtake US as theworld’s biggest shopper of luxury cars by 2016 (Elijayar et al. 2017.).Part A- Marketing mix and marketing strategy of BMW in ChinaThe business approach of BMW collection is founded strongly on having a robust brandimage. The strategy forms the key reason behind the achievement of the group. The belief itupholds is that maintaining core values is important, such as improvement, machinery, quality,performance, reliability, individuality, and customer satisfaction. The slogans such as “Sheerdriving Pleasure” and “ The Ultimate Driving Machine” gives the world an idea of the marketingstrategy it has been adopting ever since its foundation. The strategy can be clearly defined asidentifying potential and encouraging growth. The mission state is to be the most efficaciouspremium producer in the car industry. The Chinese customers have been difficult to be satisfiedby foreign companies and it was crucial for BMW to understand this to get a strong market holdin the country. The key to success was that BMW realized that China had a certain preference forlong wheel-based cars as they feel this marks a strong account on their accent in life. Keeping inmind this aspect, the marketing mix of BMW for China was set.Before studying the marketing mix of BMW in China, it is important to understand themeaning of marketing mix. It refers to set of ideas, tactics and actions that a company use topromote its product or services. The 4Ps of marketing are Price, Product, Promotion and Place.Price means the value of the product or service, which depends on the cost of production,targeted market and various other factors (Pries and Seeliger 2014). Product refers to the itemsthat are sold. Place means the point of sale. Promotion includes all the marketing strategies of theproduct or service like advertising, press reports, trade commissions and so on.

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