Marketing Strategy for BMW

This document discusses the marketing strategy of BMW, including the examination of the external and internal environment, development of competitive advantages, and evaluation of the current marketing strategy. It also covers segmentation, targeting, and positioning of BMW's products and services.

Marketing
Strategy

Table of Contents
Introduction:.....................................................................................................................................1
TASK 1:...........................................................................................................................................1
P1: Examine the external and internal environment of the organisation:.............................1
P2: Develop the competitive advantages of the organisation.................................................1
P3 : Evaluation of current marketing strategy :.....................................................................1
TASK 2:...........................................................................................................................................1
P4: Provide the segmentation , targeting and positing of the organisation product and
services:..................................................................................................................................1
P5: Apply the SMART analyse of the organisation...............................................................1
P6: Recommendation of marketing strategy on based on marketing mix:............................1
Conclusion:......................................................................................................................................1
References:.......................................................................................................................................1

Introduction:
The marketing strategy is refers to the business overall plan to reach out the prospective
consumers and returning them to the regular customer for the organisation product and services
so that they can earn the profits in the long run. The marketing strategies is knowing the
customer wants and needs which needs to be fulfilled by providing them goods and commodity
from time to time. In the another words, it can be cultivate marketing strategy will increase the
root of the company value in the market and helps in taking the competitive advantages in the
target market places. The sole purpose of the marketing is to sale the products and services to
the more customer by building the strong brand image in the target market places. Under this
report, the Bayerische motoren werke (BMW) organisation, which is the German multinational
company offers the producers such as luxury cars at the global market places and earn the profits
in the long run. Further there will be discussion on the pestle and swot analyse of the
organisation and making effective marketing strategies for the organisation to expand their
operational activities in the international market places. (Aghazadeh, 2015)
TASK 1:
P1: Examine the external and internal environment of the organisation:
The micro- macro environment are the factors which affects the strategies of the
organisation at the market places and helps in achieving the goals and objective of the company
in the effective and efficient manners.
The macro environment are the external factors that affects the organisation in accomplishing
the objective of the company and in growing the business at the various locations and affects
the competitive strategies of the organisation .these factors are examine while making the
effective marketing strategies and plan for the organisation to achieve the goals in the most
productivity manners. (Angell. and Kraemer, 2017)
Political factors: under this factors, it includes the government legal rule and regulation,
instability of the government, the political condition of different country which affects the
operational activities in the market places. The BMW business is affects affected by the major
factors in the 2018 and 2019. They are Brexit and trade wars in the country which affects the
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operational activities in the market. The BMW have revised their marketing strategy to reduces
the impact of political instability in the market
Economic factors: it includes the inflation rate, interest rates, foreign exchange and economic
growth in the market places and these factors affects the activities of the organisation in the
market places. The BMW operates its activities at the international levels which gets affected by
increase in the inflation rates which decrease the purchasing power of the customer to larger
extend.
Social factors: under this factors, the customer taste and preference are included, customer
beliefs and social backgrounds affects the purchasing decisions about the organisation goods and
services. due to changing in time, the customer requirement is also changed to large extend
which can be affects the strategies of the BMW.
Technology factors: due to changing technology in the market, BMW needs to adopt the
advances technology to satisfied the target customer by using the advances technology in their
electric cars and provide the best quality of technology in the market and take the competitive
advantages in the target market places.
Environment factors: under this it includes the climate and geographical location and global
changes in the environment which can affects the performances of the BMW organisation at
greater levels. The BMW has environment strategies which set the right direction for their
growth and sustainability planning and achieve the set targets. (Baltes, , 2015)
Legal factors: here all those factors which includes the legal rules and regulation of the
different country that can affects the performances of the organisation at the international levels.
There are various compliances which are set by the government for the auto motive organisation.
Micro environment factors are those things which are present in the internal level of the
organisation and which affects the performances of the company at the international and
domestic levels. Swot analyse is done to understand the internal factors of the organisation which
are discussed as follows: (Bang, Joshi and Singh, 2016)
Strength of the BMW:
 Brand recognition: the BMW organisation have a good reputation in the global market
places in the automotive industry and holds the top-five position in the electric motors
cars.
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 Eco-friendly: the organisation provides the eco-friendly and more of the fuel efficient
electric cars in the market to support the global pollution in the market.
 High quality: the BMW focus on providing the good and highly engineered development
models of the cars .
Weakness:
 High cost of products: the organisation product with the good quality of services with the
expensive raw material which increased the cost of the organisation goods and services.
 Portfolio is weak: the BMW portfolio only contains few brands such as Rolls Royce,
Mini and BMW which fails to serve the large audiences in the market.
 Low strategic alliances and partnership: the organisation is poor with the partnership
and alliances with another brands which affects its performances and difficult to grow at
technological and engineering parts of the car.
Opportunities: (Cacciolatti. and Lee, 2016)
 Rise in petrol and diesel prices: the BMW organisation attract the consumer due to
increase in fuel as it enhances the effectiveness and provide the hybrid and hydrogen
cars in the target market places.
 Demand of eco-friendly vehicles: the go-green has increase the demand of the
organisation goods in the target markets and helps in attracting more customer from time
to time.
 Changing the needs of the customer: the organisation is able to meet the needs of the
customer with the good quality of services in the organisation.
Threats :
 Cut-throat competition: the BMW organisation faces the competition from the across the
worlds which affects its market share and reduction in the sale of goods and services.
 Expensive material: the high priced of raw material make the BMW cars more expensive
in the market which reduces the sale in the market places.
 Fluctuating euro foreign exchange : this affects the euro’s in exchange of another
currency that reduces the value of the money. (Chaffe and Ellis-Chadwick, 2019)
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P2: Develop the competitive advantages of the organisation.
In the principles of marketing, the competitive advantages refers to take the advantage
over the another competitors by offering the good quality of services to the target market. In the
another words, it can be stated as competitive advantage knows as unique selling proposition
which helps in building the strong brand image in the market to attract more customer from
time to time and earn the best revenues in the market places . it helps in placing the product and
services at the right kind of market place. the competitive advantage of the BMW organisation
can includes the following teams which will helps them to increase their market share in the
competitive market: (Dangelico. and Vocalelli, 2017.)
Ability to satisfy elite: one of the major competitive advantage that BMW organisation can take
is to provide satisfying elite class with its product cars. They have classified in themselves in
the most effective and premium cars owners which helps them to build strong brand image
Relevance to the market: the organisation can plan the product innovation and technological
advancement which will helps them to capture the right market and attach more customers.
Making the competitive marketing strategies: the organisation can make use of marketing
strategy to advertise its goods in the market and showing off its stylish and elegant models that
fits the demand of the customer.
Research and development: the organisation make strategies for the research and
development which will help in understand the demand of the customer from time to time and
provide the goods according to their needs and desire to take the competitive advantages in the
market places.
Technologically advanced: the organisation is known for providing the advance technology in
the automotive industry helps will provide them to compete with the another brands in the
industry. ((Key and Czaplewski, 2017)
The unique selling proposition helps in making effective strategies so that organisation are able
to take advantages in the market by providing unique and different technology of car to the
customer from time to time . this unique selling proposition helps in capturing the large market
share in the target market and be more sustainable and profitable among the another
competitors in the market and the USP needs to be unique in the market and strong enough to
excite in the target market so that customer can use in the goods and services and satisfied in
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the organisation goods and company are able to expand and grow their business to global market
and earn the revenues in the present and in the long period of time.
P3 : Evaluation of current marketing strategy :
The marketing strategy of the BMW organisation is based on creating the brand image in
the market which will help in increasing and enhancing the market share of the organisation and
profitability in the target market by offering the goods and services according to the need of the
customer and industry. The BMW organisation believes in having and maintaining the core
values of the company in the terms of advances technology, innovation ideas by the goods and
good quality of products , reliability and satisfying the customer which will helps the company
to enhance the market share in the target market and helps them in achieving the higher
performances levels and profits in the market. The current slogan which BMW organisation
uses is” the ultimate driving machine” and “ sheer driving pleasure “ which helps them to make
the effective marketing strategies to promote their product and services in the market and
international levels. The marketing strategies can be make with the approach of Ansoff matrix
which will help in increase the market share of the organisation at the global marker. This
matrix will helps in expanding the sales in the market lead to enhancement of revenues of the
company : (Kingsnorth,, 2019)
Market penetration: this includes the increased in market share which can be achieved by
growth with the existing product in the existing markets . the BMW organisation uses this
strategies for the growth and expansion of the business operational activities which will increase
the sales of the organisation at the subsidiary location as well. The target of the organisation is
to enhance their presence in the market so that they can increase their growth in the market
places and in the global market such as Greece, Ireland, and Denmark.
Product development: under this strategies, the organisation focus on selling the new product
and services into the existing market. The BMW organisation provide new model in every three
to four months from the 2003 to 2005 which helps them to launch new product and services in
the existing market as customer are aware about the quality of goods which the company offers
to them from time to time. This also helps the organisation to develop the diversification strategy
which will lead to growth of the organisation at the international market.
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Diversification: under this strategy, the BMW organisation sells the new product and services
in the new market with the help of organisation existing capabilities and resources so that they
can grow their business at the different location and earn the profits in the long run. The
organisation tries to launch the new electric cars in the different new markets to expand their
market share and grow in the new places and builds their brand image in the target places by
satisfying the needs and wants of the customer . this marketing strategy helps in providing the
new and modified cars in different series in the market with the world class quality and luxury
and comfortable cars which helps them to capture the new market and expand their business at
across the global market (Patrutiu-Baltes, 2016.)
Market development: under this marketing strategies, the organisation aims that selling the
existing goods in the new market places which helps them to expand their business at the
different market places. The organisation are able to grew in new market such as Western
Europe, USA, Japan and Pacific regions with the existing capabilities and consideration , the
organisation wants to expand their operational activities in the market so its enter into new
market with the existing cars to attract the customer and increase the demand in the another
markets too by providing effective and productive motors cars to the customer.
TASK 2:
P4: Provide the segmentation , targeting and positing of the organisation product and services:
The segmentation, targeting and positioning for the BMW organisation and its sub
brands among its portfolio which describe the marketing strategy of the organisation in the
target market which helps in expands its sub brands in the market places such as Rolls Royce
and many series of the BMW such as BMW M, I, X in the market places.
Segmentation for the BMW: the organisation uses strategy of targeting by using the
segmentation of the target market, the BMW organisation targets the customer area which are
more industrialized such as Europe, North America, some of part of the Asia and Africa as these
parts holds more than 70% sales in the organisation. the BMW marketing strategy requires to
identifying the segment bases to understand the behaviour of the customer their needs,
expectation and multiple factors such as age, gender, disposable income of the customer, their
lifestyle and values which become the base for the segmentation of the organisation in the
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different market palces. The organisation choose the segmentation to select the right kind of
customer : (Sanclemente-Téllez, 2017)
 The geographic segmentation divides the whole market according to the geographic
areas like the different country, cities and region.
 The segmentation of the market is done according the income and needs and wants of
the customer and requirement of the markets.
 The BMW organisation divides the market according to buying needs of the customer so
that they can achieve their objective of the operational task at different places.
The segmentation is done by keeping in view of the customer lifestyle, their social assumption so
that their work is not gets affected by such factors in the long run.
Targeting and positioning: the BMW organisation target and positing its product among the
aged between the 25 and 40 people as they have successful image and can afford the luxury car
and foreign and international brands which attach more customer to the organisation goods. The
BMW also positioned themselves as the exclusivity ,high quality and advanced technology
producer of the cars in the world. the targeting can be done by evaluating the commercial
attractiveness and growth potential of the different segments in the market and these
attractiveness can be measured by indicators such as appropriate size of the various segments
having the concrete differences and the profits can be exceed the marketing and production cost
of the organisation. after effective targeting the market the organisation is required to places their
goods at the correct market by identifying the customer for are looking for brand and good and
high quality of raw material so that they can be satisfied the needs and wants of the customer in
the market places . the comparison and communication with the competitors will helps in
revealing the potential areas which will help in addressing the target customer and placing the
product in the market. (Schmidt and Zeithammer, 2015)
P5: Apply the SMART analyse of the organisation.
The marketing objectives of the sub-brands of the BMW such as different type of
motorcycle and cars models like the series of x model and I models which are great part of the
organisation portfolio is required to increase and enhance the awareness among the target
market so that company is able to increase the market share and enhance the growth in the sale
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and in the profits margin. The marketing objective are made on the base of SMART analyse
which helps in setting the objective in the most effective and efficient manners and SMART
stands for the
Specific: the specific builds the strong marketing strategies by sitting the clear objectives of the
organisation and defining the goals of the company in the most specification which helps in
increasing the awareness of the sub-brands in the target market so that organisation are able to
achieve their targets in the most profitable manners.
Measurable: the marketing objectives needs to get success in the market for the strategies needs
to be done by taking the effective measurable like whether the product is good quality and
satisfied the needs of the customer on demand. (Varadarajan, 2015)
Attainable: under this organisation tries to set the attainable goals and objectives through the
marketing strategies which can be implanted in the management levels of the organisation. This
helps in making good objective which can be achieved in the set time period of the strategies.
Relevant: this factors helps in setting the effective marketing objective which are relevant of the
objective of the organisation and which helps in making the prefect strategies which are to be
followed in the organisation to achieve the objective in the most profitable manners.
Timely: here the organisation focus on making marketing objective which are to be achieved in
the most effective manners and within the set time period. The management are able to make the
objectives which are achieved in the time period so that profits can be earned by them in the
organisation.
The marketing objectives helps in achieving the ultimate goals and objectives in the most
effective and productivity manners of the organisation and its sub brands by making effective
awareness among the target audiences so that customer are know that products are availed in the
market . the sub brands of the organisation tries to plays their goods in the target market with the
help of effective marketing strategies which provide them a way that will lead to success of the
organisation in the different location and attach the different types of the customer form time to
time and earn the desirable profits and revenue by launching new sub brands of the organisation
in the different market places to fulfil the needs and wants of the customer from international
levels. The objective of the organisation is to expand its business at different location which will
helps them to grow their profits and markets share in the target market places and helps in
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increasing the sales in the different locations which will increase the profits in the target market
places.
P6: Recommendation of marketing strategy on based on marketing mix:
The marketing mix is strategies which helps in building the marketing strategies which
provide the organisation and its sub brands to increase the market share in the most effective
manners . the sub brands make marketing strategies on the base of recommendation of
marketing mix in the market places and the marketing mix includes the 4ps such as product,
prices, promotion and places which helps in recommendation plan which includes the gaols to
enhance the sales in the market places .
Product: the bud brands of the organisation wants that they product must look prefect and have
luxury of the product in all areas. The organisation and its sub brands emphasis on the bring the
product innovation and development so that targets can be accomplished on time and in
profitable ways.
Prices: the price of the products of the sub brands helps in making the differentiated strategy ,
they charge the extra for the premium quality and different types of engines, sizes, gears ands
fuel consumption and sports version of products needs different prices needs which are charged
by the customer .
Promotion: the sub brands uses different slogans that will helps in attaching more customer to
the organisation product , these sub brands hire advertising agency to promote their goods in the
target market places. The company also invest large amount of money for the promotion of the
cars in the target markets such as using title like “The ultimate Driving machine and various
another things to attach more customer from time to time.
Places and distribution: the sub brands places their goods in the website so that customer can
see the product and make effective decision to purchase the goods in the market places. The
organisation has 156 dealers in the market to distribute the good on the demand of the customer
at various different location so that sub brands are able to enhance their market share in the
market places and earn the profits in the most effective and productivity manners.
The sub brands are recommend to make the marketing strategies like placing the goods at the
right market places by targeting the right kind of customer so that organisation and its sub brands
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are able to make increase their market share in the market . the marketing strategies must
includes proper pricing strategies for the goods and services which are offered by the
organisation and its sub brands so that premium customer can satiated they needs with the good
quality of services in the long run. The marketing strategies for then sub brands is to produce the
good with the high quality of raw material which will provide the customer with the luxury and
comfortable goods at various prices so that organisation are able to make the profits in the target
market and increase the market share at various international levels so that organisation are able
to build strong image in the market places.
Conclusion:
As per the above discussion, it can be stated that, marketing strategies helps in making effective
plan for the organisation to expand and earns the desirable profits at the market places. The
organisation examine its internal and external environment which can affect the production of
the organisation and focus on making prefect segmentation and positing the product and
servicers at the right kind of market by using strategies which are planned by the manager and
leaders to achieve the set targets in the market places.
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Varadarajan, R., 2015. Strategic marketing, marketing strategy and market strategy. AMS
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(Aghazadeh, 2015)
(Angell. and Kraemer, 2017)
(Baltes, , 2015)
(Bang, Joshi and Singh, 2016)
(Cacciolatti. and Lee, 2016)
(Chaffe and Ellis-Chadwick, 2019)
(Dangelico. and Vocalelli, 2017.)
((Key and Czaplewski, 2017)
(Kingsnorth,, 2019)
(Patrutiu-Baltes, 2016.)
(Sanclemente-Téllez, 2017)
(Schmidt and Zeithammer, 2015)
(Varadarajan, 2015)
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