Marketing Strategies and Marketing Mix of Volkswagen and BMW

Running Head: Marketing
Marketing
Report
System04104
6/26/2019

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Table of Contents
1. Introduction........................................................................................................ 3
2. Marketing Strategies and Marketing Mix of Volkswagen and BMW...................................3
2.1 Marketing Strategies of Volkswagen........................................................................3
2.2 Marketing Strategies of BMW................................................................................4
2.3 Marketing Mix of Volkswagen............................................................................... 5
2.3.1 Product....................................................................................................... 5
2.3.2 Price.......................................................................................................... 5
2.3.3 Place.......................................................................................................... 5
2.3.4 Promotion.................................................................................................... 6
3. Marketing Mix of BMW...................................................................................... 6
3.1 Product.......................................................................................................... 6
3.2 Price............................................................................................................. 7
3.3 Place............................................................................................................ 7
3.4 Promotion:..................................................................................................... 7
4. Factors in the Global Environment............................................................................ 8
4.1 Porter’s five-force model of BMW...........................................................................8
4.2 Porter’s five-force model of Volkswagen...................................................................9
4.3 Current offerings of Volkswagen and BMW.............................................................10
5. BCG Matrix of BMW and Volkswagen....................................................................11
5.1 BCG Matrix of BMW.................................................................................11
5.2 BCG Matrix of Volkswagen......................................................................11
6. Recommendations and Conclusion..........................................................................12
6.1 Recommendations for Volkswagen........................................................................12
6.2 Recommendations for BMW................................................................................ 13
References.............................................................................................................. 14

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1. Introduction
Marketing is generally beyond of advertising and sales promotion. Proper marketing for any
company determines the success or failure of the organisation and it gives an edge over other
competitors. However, marketing of automobile companies and their products are crucial as
there are numbers of innovations and new features added in the automobile products every
year and it attracts people towards the products (Ma, Zhang, Wang, and Li, 2014). Therefore,
advertising and marketing campaign helps the people to aware about the new products and
offerings of the company. The marketing strategies of every company ensure that company
will care for the needs of their customers, designed their product and services for the
customers, and acquire a large market share in the industry. This report helps to understand
different integrated activities of two giants in automobile industry: Volkswagen and BMW.
This report helps to understand the marketing strategies of BMW and Volkswagen in the
Automobile industry. This report also helps to understand the current marketing strategies
related to customer needs, competitive advantages, creating new opportunities, and
innovation that meet the current and future customer demands in automobile segments.
2. Marketing Strategies and Marketing Mix of Volkswagen and BMW
Both Volkswagen and BMW are marketing giants in the automobile industry and both are
world-class car manufacturing companies. These two are world’s most reputable and famous
brand in automobile industry that are known or their quality, reliability, and modern designed
cars. These companies are known for their high performing and expensive cars and both the
company enjoy a large number of customer s with great market share in all over the world
(Bode, Hübner, and Wagner, 2014).
2.1 Marketing Strategies of Volkswagen
Since Volkswagen operate its business in car segments with 12 independent brands, it
designed their marketing strategies in demographic, geographic, and psychographic segments
that best meet the demand of customers (Milne, 2015). It uses the different targeting strategy
for offering specific products to meet a special segment of customers. The positioning
strategy of the company helps the company to understand and recognizing the current brand
image of the company in the mind of customers and which type of image Volkswagen
created among its customers and people. Volkswagen is the largest car manufacturing

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company in the Europe that is handling more than 12 brands such as Audi, Porshe, Ducati,
Lamborghini, Bentley, Skoda etc. (Avery and Bergsteiner, 2011).
As company’s mission is “mobility for everyone,” it focuses on target both upper income
segment people and lower income segment of people with its different brands. Although
company is known for its expensive cars but it has also some non-expensive cars such as
Volkswagen and Audi to target, the middle income and upper middle income class of people
(Siano, Vollero, Conte, and Amabile, 2017). Company has strong brand portfolio that gives
an edge over other competitors. The strong co-creating and their efficient ecosystem and
operation support system helped the company to be on the top of the market and
competitively ahead from other brands. The low operational cost and economies of scale in
its operational and manufacturing strategy helped the company to manufacture cars on very
low operating costs. This helps the company to spend more money on its branding and
advertising strategy and enables it one of the more popular brand in the world (Goel, 2015).
2.2 Marketing Strategies of BMW
The current business strategy of BMW is to establish itself as the powerful brand image. This
strategy of the company laid the foundation of company’s growth and success. The
company’s major focus is on customer satisfaction, innovation, product quality, innovation,
exclusivity, and reliability. These can be also treated as the core value of the company. The
company’s slogan is “ultimate driving machine” and “sheer driving pleasure” shows its
intention and nature of strategy it adopts in the automobile industry (Avery and Bergsteiner,
2011). The company also defined its strategy so clearly as it focuses on identifying the
opportunities and encouraging growth. The company knew very well what it represents and
where the strength lies of the company. The company making the best use of every
opportunity it has and company is always really to face new challenges and designed its goals
in such a way that fulfil the customer needs and demands. The mission statement of the
company is defined as “To be the most successful premium manufacturer in the car industry”
(Jun and Park, 2016).
The success of the company is very much depends on its marketing and advertising strategy.
As its slogan indicates that BMW provides best driving pleasure which no other car company
provides. The company always focuses on latest innovation and design in the car
manufacturing process and it also depends on strong car advertising strategy. BMW always