Marketing Strategy Assignment : BMW

Introduction to Marketing

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
COMPANY OVERVIEW...............................................................................................................1
TASK 1............................................................................................................................................1
Current marketing strategies of BMW........................................................................................1
TASK 2............................................................................................................................................4
Recommended strategies for future growth................................................................................4
TASK 3............................................................................................................................................7
Market campaign.........................................................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Marketing may be defined as activities of a company which is associated with the buying
and selling company's products and services. It is the study and management of exchange
relationships and satisfying customers. Marketing of a company is based upon its marketing
strategies which is defined as section of a business plan which outlines the overall game plan for
attracting existing and potential customers (Kotler and et.al ., 2015). Marketing strategy informs
a market plan, a document which lays out the types and timing of marketing activities. In this
report BMW is taken as an organisation, which is a German multinational company producing
automobiles and motorcycles and also produced aircraft engines. Present report discuses about
the key consumer segments of a company and discusses about the marketing mix of a company.
This report also applies Ansoff Matrix frame work to BMW and also suggests the strategies for
the future growth of BMW. Present report also includes marketing campaign plan of BMW
which will help in improving the current marketing strategies of the company.
COMPANY OVERVIEW
BMW stands for Bayerische Motoren Werke, which is an automotive company of
Germany which was founded in 1916 by Karl Rapp and its headquarter is at Munich, Bavaria.
BMW produces motor vehicles in different countries including United Kingdom. It is the 12th
largest producer of motor vehicles of the world and have produced 2,279,503 vehicles. There are
more than 129,932 employees working in BMW. Its product categories includes cars,
motorcycles and engines. UK is known best for the premium and sports car and in June BMW
announced an investment of £500 million in UK over the subsequent 3 years as a part of an
expansion of their mini range to seven models. BMW is the most popular brand across the world
with a net income of €8.706 billion.
TASK 1
Current marketing strategies of BMW
BMW is a prominent automaker company is vigorously articulating the marketing
strategies on order to create value which should better serve to customer needs. BMW has
implemented different marketing mix to sell cars to different socio-economic segments and is
aggressively emphasising on premium segments (Ryan, 2016). BMW had initiated the goal of
segmenting the entire premium market in order to fit between the marketing mix in order to
maximise the sales and fit between the purchasing behaviour of the consumers. BMW sells
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vehicles to customers which has got high standards for luxury, quality and performance as BMW
builds such attributes in its automobile products (Natalie, 2019). AS BMW concentrates on the
premium segments on the global level and is consistent in designing the brands which renders
success to the business of BMW. It has got attractive and trendsetting products which is ranging
from 3 to 7 series which deliberately focuses on affluent customers which demonstrates the
success of the BMW's global marketing strategy and it also represents the leadership through
innovations.
Comparison between the marketing strategy of BMW and Aston Martin
BMW Aston Martin
BMW is primarily focused on manufacturing
high luxury four wheelers and two wheelers
and also offer some products for high level of
personalisation to its customers while majority
of its products are offered as standard.
Aston Martin build cars for serving upper class
and higher class customers. Aston Martin cars
are highly customisable which provide options
to customers to customise their cars.
BMW's is a renowned brand and provide
manufacturing facilities to many cities across
the world.
Aston Martin showrooms are only located at
the rich locations where only a rich and upper
class customers can shop.
BMW attracts its customers through aggressive
advertising such as T.V, media, ads, etc.
Aston Martin designs to reinvent themselves
and now wants to design such cars which will
be able to attract young audience and women
too.
Competitive Advantage
AS BMW is facing high level of competition in the automobile industry so, its is
important for the organisation to have a competitive advantage within the industry. BMW should
be able to satisfy the elite class more and more with its design and quality which should be able
to satisfy them (Armstrong and etal., 2015). BMW should maintain the culture of product
innovations and keep on advancing its technologies which can help in gaining the competitive
advantage. Also, BMW should provide better and effective services to customers is post sale and
pre-sale services to customers this can also help in gaining the competitive advantage.
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Consumer segments which help in driving the growth of a company
In order to reach the target audience BMW use various types of segmentation strategies
within their business, some customer segmentation strategies which are used by BMW are as
follows:
Behavioural variables: It includes the consumer's knowledge, attributes and use of a product
and service, so BMW should increase their customisation services which provide an option for
the customer's to purchase an expensive car customised by the customer itself (Ryazanova and
Volchkova, 2017). BMW should focus on the behaviour patterns of the customer and need to
maintain the records and with the help of these records BMW can make innovations.
Psycho-graphic variables: This variable will help the company in making a product more
attractive and improve their service which will help in satisfying the customers. BMW should
change their strategies as per the recent trends and buying behaviours.
Socio-demographic segmentation: BMW should provide its products based up in customer
segmentation as customer belong to different social groups which ranges from age, income level,
gender, etc so BMW should segment its market based up on socio-demographic segmentations.
Extended marketing mix elements:
Various marketing mix elements of BMW help the company to meet their business needs
and these marketing mix element includes.
Product: BMW is mainly focusing on manufacturing of luxury two wheelers and four wheelers
products. Four wheeler automobiles is been considered as a luxury segment of products and are
considered as premium by customers (Gomes, Sousa and Vendrell-Herrero, 2017). Various
products in marketing mix of BMW includes SUV's, sports cars, premium sedans which offer
high style, quality and performance and also a status symbol.
Price: BMW has always been a premium market player offering high priced cars as its products
are considered as status symbols. Products of BMW are all priced at premium and it has
established luxury pricing in order to classify the company into desirable segment.
Place: BMW has got manufacturing facilities in more than 10 countries and also company has
established many facilities in many emerging markets and also in smaller markets recently. This
has helped BMW in expanding the markets in many small countries.
Promotion: Promotional strategies is important part BMW's marketing mix and mainly focuses
on aggressive advertising using media like print ads, TV commercials, online ads, etc so that
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BMW can continuously create brand awareness. BMW has also been a close sponsors of various
rally racing events and many other supports events which has been an effective way for reaching
out new markets.
Process: BMW's product and service delivery system is very effective and keep making
continuous improvements within its business system (Mols, 2018). BMW places its products on
its showrooms from where customers can make orders and also provides high quality of
customer services which provide effective customer service to its customers.
People: The work force of the company forms the important asset which are involved in
designing, manufacturing and delivering the products to the final consumers. Human resource of
the company is high skilled and provide various services and there is a continuous development
of employees through continuous training and development programs.
Physical evidence: BMW has got its physical evidence across different parts of world, there are
number of physical stores available in different countries which offer both products and service
to customers. Company is planning to make expansions of their business in small and emerging
countries which will increase their number of stores within these emerging markets.
Recommendations
 BMW should try to make cars for middle class people which could add their current
strategy and will help in gaining the competitive advantage.
 BMW should also enter new markets which will help in growth and expansion.
 BMW should use introduce Strategic Human Resource Management within the
organisation which will make their people more skilled and will also help in smooth
functioning of a business.
TASK 2
Recommended strategies for future growth
Ansoff Matrix is a strategic planning tool which provides a framework mangers of BMW
to devise strategies for the future growth. Ansoff Matrix help a company to identify the growth
opportunities in order to attract its potential customers. It is also called as product or market
expansion grid (Bamford and etal., 2018). In order to ensure the proper strategies that are been
carried out within the firm, this can be said that the proper assessment of the operations and
action plans that are been carried out by automobile firm, BMW to improve its performance.
This will also help in carrying out the operations and setting up of suitable strategic measures
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which will help in improving performance level of the organisation. The strategies as per the
Ansoff matrix that is been carried out by the selected firm are:
Illustration 1: Ansoff Matrix
(Source: Ansoff Matrix, 2019)
Product development: It is the type of strategy where business aim is to introduce new products
within its existing markets and this strategy requires BMW to develop modified products and
also to develop new competencies in order to appeal the existing market. This strategic process is
used to launch a new or modified product within the existing market. As BMW formally
developed the Aircraft's engines and currently producing the auto mobiles and high end motor
bikes. Preceding to it, the firm can opt for launching Quad bikes, that will help the organisation
to operate in a new market segment, unrevealed by BMW. Other than this, it will help in setting
up of new operational standards this will support the sales in carrying out the services and help in
meeting the operational needs of selected automobile enterprise (Yin, 2016). In order to develop
a new product BMW has to emphasis on research and development and also go through
innovations. Company should have detailed insights into various customer needs i.e. how
customer needs change and should be able to introduce the product first in the market.
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Market penetration: Market penetration strategy is a type of a strategy in which the business
focuses on selling existing products into its existing markets. It can help the company to improve
the market share of its current products which can be achieved by BMW by the combination of
competitive pricing, sales promotion, advertising, etc. This will help in selling the existing
product within the existing market without any alteration or modification in the product line. The
effective promotional measures can advertising can be carried out but the BMW and its
subsidiaries that will help in improving the performance of automobile operations and thus will
help in carrying the operations and facilitating rise in sales. Also, effective pricing measure can
be opted and followed by the organisation that will help in meeting the sales goals and have a
competitive advantage over its competitor firms. BMW should have good information of its
competitors and customers therefore this strategy requires huge investment on market research.
Market development: It includes the practice of launching its existing product in a new market.
However, BMW rarely required to follow this approach as it operates all over the world and
provide the services and within the new geographical area or market. For instance, BMW
operates effectively in Southern and Eastern Africa. Looking at this, the firm can plan to expand
its operations in Western and Northern Countries that will contribute to improve the sales of the
organisation. Besides this, it will also help in setting down new subsidiaries that contributes to
improve performance of BMW in foreign market. The possible ways that BMW can approach to
this strategy are entering new geographical markets, new product dimension and establishing
new distribution channels and also BMW can making different pricing policies in order to attract
different customers or creating entirely new market segment.
Diversification: Diversification means when BMW markets new products in new markets, this
strategy may prove risky for the organisation as company attempts to move into such markets to
which company may have no or little experience. With the advancement of automobile
technology and increasing popularity of hybrid and electronic cars, BMW can also make the
moves and launch its products in countries of its operations as well as foreign market. Other than
this, BMW can opt to develop new and affordable auto mobiles and motor bikes that contribute
in improving the sales of selected organisation (Dawes, 2018).
For BMW, the strategic approach of market ad product development is more feasible as it
will help the company to get higher returns and also possess less risk of failure and other
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uncertainties. These approaches support the firm to cater maximum number of customers and
increase its market share along with revenue generation.
Recommendations
 BMW should conduct proper market research which will help the company in assessing
its strengths and weaknesses which will help in the future growth of a company.
 BMW should be able to identify their ideal customers and should develop the growth
strategies accordingly.
 BMW should also verify their revenue streams i.e. what value stream an organisation can
add in order to expand their business and make its profitable.
TASK 3
Market campaign
The marketing strategies used by BMW has been effective for its existing product line
but in order to launch a new product segment its is essential for a company to develop a market
campaign (Kotler and Armstrong, 2015.). As BMW is launching Quad bike in Australia,
therefore it is the great need for the organisation to develop a market campaign in order to
generate customer awareness for the customers of Australia which can help the company to
attract more and more potential customers which can also increase the company's profits.
Situational analysis:
TheKotler, P and et.al ., 2015.re is a strong competition faced by the BMW within the
industry and is challenging task for the organisation to remain competitive in the market. BMW
being a status symbol for the customers, BMW has got the successful track record in developing
new products and can successfully implement innovations within its products. Which is an
advantage for the company to developing a new product. BMW has been able to develop a
strong marketing strategies for its products which could be able attract potential customers in
Australia. Also when ever BMW entered in the new markets it has been able to show high
performance in the new markets and has achieved success after entering the new markets
(Mancini, and Consiglieri, 2016). Also BMW has got highly skilled workforce who will work
efficiently on building a new product as company is investing huge amount of money in
training and develop its staff. BMW has also got strong monetary value which is one of the
most important strengths of the company therefore company has got potential to invest a huge
amount of money in new product's marketing campaign which can prove successful for the
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organisation. Also BMW has been successful in its marketing strategies and has adopted
aggressive marketing strategies which will prove beneficial for the company in the marketing
campaign.
Objectives: Main objective of the marketing campaign is to create awareness among the target
audience of Australia about the launching of new product segment by BMW, which can help
the company in successful launching of a product which help in growth of a company and help
the company to increase the profits.
Target audience:
For creating the successful awareness among targeted audience BMW must identify
what are its target customers for the new product, which can help in successful implementation
of market campaign strategies which can help in attracting right type of audience for the new
product (Nickerson and Goby, 2016). BMW can use the concept of Segmentation, targeting and
positioning which can help the company to communicate the benefits and value of new product.
STP can help the company in following ways:
Segmentation: Segmentation is the process of finding and identifying what type of customers
which need new product developed by the organisation, a company need to find what type of
customers demand Quad bike. In order to create awareness about the new product, company
should consider the customer's psychological and behavioural perspectives which could help the
company in attracting the potential customers. BMW should understand the size of the market,
what are the purchasing characteristics and also to understand the value need for the particular
segment (Rallapalli and Montgomery, 2015.). The segment chosen by the company should
posses high level of accessibility and should be able to communicate with the potential
customers in an effective manner. The segment should be profitable for the organisation and
should focus on how to improve progits through a marketing campaign. The marketing segment
chosen should help the company in achieving the competitive advantage.
Targeting: In this process BMW have to decide to target one or more segments but the choice
depends upon the various factors. After identification of the customer segment a company need
to prepare and choose the type of strategies which could create awareness regarding the new
product of the company it is very important for the organisation to develop a targeting strategies
as per the new product of BMW. A company should target the customer's which like beach
racing, and other people which like to go outings. It can target the customers like youth using
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social media tools which can be an effective and convenient tool for BMW to attract young
customers. Before targeting a potential customer company should consider that how the
existing segmentation have served by the competitors of the product and also should consider
how large is the size of a segment and formulate the strategies to target such a huge segment.
Also company should posses the potential to attract the customer in the chosen segment. A
company can use different strategies by company can target its customers like TV, magazines,
print media, organising sports events, using online and social media, etc which will be the
effective way for the company to generate awareness and attract potential customers for a new
product of BMW.
Positioning: After making the proper analysis while segmenting and targeting now it is
important for the organisation to position the appropriate strategy which will be suitable for the
organisation to attract the potential customers for the organisation. BMW should position the
product not only within the markets but also should be able to position within the minds of the
potential customer. Before implementing the market campaign strategy BMW should properly
analyse the risk in order to minimise potential risks.
Tactics and strategies
There are various tactics and strategies which can be implemented by the organisation to
attract potential customers. One of the best and important strategy that can be implemented by
BMW in order to increase the customer awareness which can help in attracting more and more
customers towards the new product is digital marketing. Digital marketing is the best way for
the company to attract customers in the present scenario (Hapsari, Stoffers and Gunawan,
2017). A company can increase its awareness among the customers by increasing the product
presence on social networking sites which will help in attracting huge audience. A company
organise various sports events like Qaud Bike racing and adventures which is an effective way
of creating awareness of the new product segment by BMW.
Possible risks:
There are various risks which are associated with the market campaign of the new
product which needs to be minimised by the organisation. One risk would be that
miscalculation of the target market or if company fails to collecting enough market research
data which poses a risk for a company i.e. not identifying the proper needs and buying
behaviours of the customers which may result into wrong market campaigning. If a company
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fails to build a strong brand for the new product, which may result in the lack of interest and
failure of the people in recognising the brand. Failure of meeting the new and emerging trends
of the customers and failure to identify or review the competitors which are already present in
the chosen market.
All of the risks should be minimised by the company, these risks may lead to huge loss
for the company.
Budget:
Expected that would be used for the marketing campaign is £1,000 approximately.
Expected outcomes
If the marketing campaigning strategy is successfully implemented by the organisation it
will bring positive results for BMW. Through the marketing campaign company would be able
to achieve high sales for the new product. As, BMW is the renowned brand across the world
and it will be not difficult for the company to attract the potential customers for a new product
and would be able to increase the sales of the product in the future. The marketing campaign
will help in the growth of the organisation and will also improve brand value and brand image
of the organisation.
Recommendations
 BMW should establish a good relationship with the bloggers which will help in effective
digital marketing of the new product.
 BMW can also use e-mail marketing which may prove all time effective for this purpose
BMW should has proper information, and should implement effective e-mail marketing
strategy.
 BMW should conduct effective market research about the customers, competitors and
also about the business environment.
CONCLUSION
It can be concluded from the report that marketing strategies are very important for an
organisation, a proper marketing strategy can help the organisation in achieving the objectives of
an organisation. With the help of an effective marketing strategy an organisation can achieve a
global competitive advantage and can bring huge profits for an organisation. Present report also
concludes that it is important for the organisation to identify the consumer segments which help
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in driving the growth of an organisation also a company can make use of different marketing mix
elements. It can also be concluded that with the help of Ansoff Matrix organisation can use
different strategies in order to expand in global market. In can also be summarised that with the
help of marketing campaign a company can increase consumer awareness for the product or
services.
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REFERENCES
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