Principles and Practice of Marketing: BMW UK Case Study

Running head: PRINCIPLES AND PRACTICE OF MARKETING
Principles and Practice of Marketing
[BMW, UK]
Student’s name:
Name of the university:
Author’s note:

1PRINCIPLES AND PRACTICE OF MARKETING
Table of Contents
Introduction......................................................................................................................................2
BMW Background report................................................................................................................2
a. Brief description of organisation BMW..................................................................................2
b. Brief description of the marketing strategy.............................................................................3
c. Brief description of their marketing mix.................................................................................3
d. A brief statement of their financial and marketplace performance.........................................4
Question 1........................................................................................................................................5
a. Definition of branding..............................................................................................................5
b. Brand recognition:...................................................................................................................5
c. Brand identity:.........................................................................................................................6
d. Brand positioning:...................................................................................................................6
e. Brand personality:....................................................................................................................7
f. Brand affinity:..........................................................................................................................7
g. Draw and explain Keller’s Brand Equity Model.....................................................................8
h. Outline and explain Aaker’s Brand Equity Model..................................................................9
Question 2......................................................................................................................................10
a. Defining and explaining international marketing..................................................................10
b. Discussion of the reasons why organisations go international..............................................10

2PRINCIPLES AND PRACTICE OF MARKETING
c. Description of the orientation of BMW with regards to its international business (EPRG)..11
d. Description the implications for marketing mix: standardisation or adaptation....................12
e. Discuss standardisation and adaptation from Hollensen’s Glocalisation concept.................13
f. Critically assessing BMW’s marketing mixes.......................................................................14
Conclusions....................................................................................................................................16
Reference List................................................................................................................................16

3PRINCIPLES AND PRACTICE OF MARKETING
Introduction
Branding is a marketing term and it means a collection of images and concepts that show
a product or company. Branding is important as it can serve to help the people to connect with
name, image and symbol with an organisation. In this study, BMW organisation is chosen to
show the branding and international marketing strategy. In this study, there are two questions;
the first one is associated with the effectiveness of the organisation's current branding strategy
particularly based on the brand equity models. The effectiveness of BMW's current branding
strategy with impact to Aaker and Keller's theories of brand equity is discussed. The second
question deals with the international marketing strategy of BMW. In this part, standardisation
and adaptation to the international marketing mix of BMW are also given.
BMW Background reports
a. Brief description of organisation BMW
BMW is a German multinational organisation that produces motorcycles and
automobiles. BMW has been produced aircraft engines since the year 1945. BMW is in the
automobile industry. BMW produces motor cars in China, India, Brazil, United Kingdom and
Germany and in the United States. Automobiles are marketed under the company BMW, Mini
and Rolls-Royce (BMW.com 2018). Competitors of BMW are Audi, Mercedes Benz,
Volkswagen, Honda Motors and Porsche. BMW has been working on producing the cars which
are environment-friendly, completed the journey low annual oil service, completed micro-filter
services, completed brake fluid service and completed vehicle check.

4PRINCIPLES AND PRACTICE OF MARKETING
b. Brief description of the marketing strategy
BMW sells the cars category of Luxury, SUV and Sedan. BMW sells the BMW 3 series,
BMW 7 series, BMW X3 and BMW x5. The tagline of the BMW is the ‘sheer driving pleasure'.
The USP of the organisation lies in the technologically advanced and luxurious products
portfolio that can deliver ultimate driving experience. BMW mainly targets the luxury segment
cars for the affluent customers. Target customers of the organisation are rich professionals and
affluent families. BMW positions itself as technologically advanced and eco-friendly advanced
company that inculcates the innovation in the products to provide a stylish driving experience.
c. Brief description of their marketing mix
Product: BMW focuses mainly on the manufacturing of the high luxury cars and two-
wheelers. These products are manufactured with certain facilities across the globe with each
segment. BMW products are personalised and the majority of the products are standards across
the countries (Bmw.com 2018). The cars undergo a process of technological advancement and
cars give high safety and performance.
Price: BMW keeps premium pricing for the luxury cars. Premium pricing strategy
provides the organisation with high gross margin and it makes the cars desirable for the
customers. BMW sometimes adopt the dynamic pricing strategy for entering in new market like
Brazil and India.
Place: BMW is world-renowned car manufacturer organisation and it spreads the
manufacturing facilities to many of the countries. It produces cars in Munich and in other parts
of the world. BMW has manufacturing facilities in more than 10 countries and it goes for global
reach taking the strategy of dealership to the premium car sellers.

5PRINCIPLES AND PRACTICE OF MARKETING
Promotion: BMW does promotions through advertising through out-of-home medium.
BMW advertises on televisions and social media also. It sponsors the club footballs and in
events. BMW has social networking pages on Facebook, Instagram and Twitter.
d. Brief statement of their financial and marketplace performance
BMW performed better during the period of 2011-2016 and in the year 2017, BMW
Global developed at lower speed up only 3.7% with 2.07 million sales. Regional level scored up
only ion ASEAN countries; almost +16.6% (BMW.com 2018). Low performance has been
observed in North Africa (-20.0%), Pacific region (-13.2%) and in East Europe (-24%).
Key financial figure:
BMW Group 2013 2014 2015 2016 Charge
Profit before
tax (in €
million)
7,890 8,708 9,223 9,665 4.7
Revenues in €
million
70,228 70,603 75,174 86,225 1.0
RoE in % 20.2 19.4 20.2 21.2 1.0
Capital
expenditure
(€ million)
6,711 6,100 5,890 5,832 -1.1
Depreciation
and
amortisation
3,721 4,712 4,654 4,809 3.2