BMW Australia Market Analysis: A Comprehensive Report

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ROHAN - ASSESSMENT 2

EXECUTIVE SUMMARY:
This assignment has focused on the market analysis of BMW Australia and
the factors that affect its marketing strategy. This is done with the use of
relevant theory and data. Each factor that influences the behaviour of the
consumer is evaluated along with the challenges it is facing at present. In
the end, the recommendations are also provided for the future strategy of
BMW.

TABLE OF FIGURES
Figure 1-Demographic Segment......................................................................................................................... 8
Figure 2-Buyer Behaviour Model.....................................................................................................................10
Figure 3-4 P's of Marketing................................................................................................................................ 12

Table of Contents
EXECUTIVE SUMMARY:..............................................................................................................................2
1. OVERVIEW........................................................................................................................................................ 4
2. TARGETING PROFILE FOR BMW AUSTRALIA..................................................................6
3. KEY INSIGHTS FOR COMPANY......................................................................................................8
4. IMPACT ON BUYER BEHAVIOR.....................................................................................................9
5. RECOMMENDATION............................................................................................................................. 10
REFERENCES.................................................................................................................................................... 12

1. OVERVIEW
BMW is a leading multinational organization that produces automobiles and
motor vehicles. In Australia, it is working as exclusively possessed ancillary.
In 2015 it was declared as the world's 12th largest manufacturer of
automobiles. It is a diverse geographical expand in Germany, Brazil, South
Africa, Mexico, India, the US and the UK. The total revenue generated by
the $1,694,904,000 in the year 2018. The key activities of BMW are the sale
of motor vehicles, accessories, bikes and components of it. BMW Australia
operates as a BMW group Australia and BMW group financial services (IBIS
World, 2019).
Products offered motor vehicles, accessories, bikes
and components
Size and revenue small size organization with 162
employees
Major competitors Competitor of the BMW Australia is
Volkswagen, Daimler, Volvo, and
Jaguar.
Value Sense of attainment, speed,
fashionable and reliability (De Mooij,

2019).
Marketing Manager and job description: Marketing manager of the
company is Laura Giordano and she is responsible for retail marketing in
Australia. She also has the following objectives:
Objectives
 Managing marketing approach, budget and tactics for business sites
 Media purchasing, creative development and digital marketing of the
products
 Event management and social media management

2. TARGETING PROFILE FOR BMW AUSTRALIA
a. Demographic: Demographic factor is the description of age, gender,
life stage, purchasing power according to their income level,
occupation etc. the demography covered by BMW falls between 20-65
years of age group. Majority of them are successful and goal-oriented
people.
Age Group Percentage
24 year and younger 1%
20-45 40%
65+ 30%
55-64 29%
1%
40%
30%
29%
Demographic Division
24 year and younger 20-45
65+ 55-64
b. Needs and wants: the target market is professional and executives
with higher income level. The user needs the niche-oriented product.
Prefer safety and convenience over other things (Long, 2018).
c. The value being sought: it is clear that the products are of higher
cost and the value achieved by the user is a sense of achievement,
speed, fashionable and reliability.
d. Potential behaviour: As the data indicates the target market for the
BMW Australia in Australia falls between 20-65 years of age group
with different and the male and female both have the high purchasing

power to buy the products offered: BMW, MINI and Rolls-Royce. The
target market is professional and executives with higher income level.
The Rolls-Royce purchased by the people of more than 40 years of age
and they show hardcore loyalty for the products. These are people of
the middle class and upper-middle-class and highly ambitious
individuals who will remain with the brand for long-term (Dudovski,
2016).
Figure 1-Demographic Segment
[Source: Dudovski, 2016]

3. KEY INSIGHTS FOR COMPANY
Marketing challenge: there are numerous challenges for the BMW in the
Market of Australia and the Challenges due to the demography are:
 The ever-increasing competition level in the market
 Accumulative government directive
 The slowdown in the car market and increasing preference of the
consumers for other brands
The competition level in the market can be addressed with the use of latest
and advanced technologies. For example, in Australia is that the fuel price
shortly is going to rise and there will be more demand for autonomous
vehicles. Technology is the major differentiator and the use of the latest
digital technology enhanced the competence of the products and improves
the user experience. Investment in cutting edge technology automated and
advanced engineering will help BMW in addressing the increasing
competition level in the market (IBIS World, 2019).

4. IMPACT ON BUYER BEHAVIOR
Numerous factors affect the buying behaviour of the consumer in Australia
and these are demographic and sometimes personal factors. These are
illustrated as below
Buyer behaviour model is also known as a stimulus-response model.
According to this model, companies must focus on the behaviour of the
consumer and their preferences while they design a marketing strategy.
Marketing strategy must be based on the factors that influence the buying
behaviour of consumer (De Mooij, 2019).
Figure 2-Buyer Behaviour Model
[Source: De Mooij, 2019]
Perception of a consumer is based on the experience he or she gained with
the use of the product or the experience of others. It is one of the major
factor influences the buying behaviour of consumers. The impact of the
products and the services of the market are crucial on buyer behaviour
(Long, 2018).

The demography covered by BMW falls between 20-65 years of age
group. Majority of them are successful and goal-oriented people. The target
market is professional and executives with higher income level. They use
need a niche-oriented product. Prefer safety and convenience over other
things. It is clear that the products are of higher cost and the value
achieved by the user is a sense of achievement, speed, fashionable and
reliability. The perception of using the products of BMW is based on the
niche and the status provided by the BMW and also the use of BMW shows
the sense of higher achievement. This factor acts positively for the
advantage of the organization and contributes to the profitability of the
business (Jurevicius, 2016).
5. RECOMMENDATION
The marketing strategy for gaining a profitable status in the market should
also be based on the behaviour of the consumer and their preferences
related to the products. With the use of perception of the consumers in
Australia while buying the car helps in designing an effective marketing
strategy.
Marketing mix model for BMW Australia to gain a competitive edge in the
market is as follows:
Pricing: the user of the BMW cars and its other products are people 20-65
years of age group and all are professional and working executives and
their aspirations are high. They buy cars to show their higher economic
status. Considering all these factors the price should be high as it will cover
the upper-middle-class section those feel that spending more creates a
niche for them in society. BMW can also tie-up with the other car
manufacture this will reduce the cost of the manufacturing and BMW can
come up with the cars that cover mid-income consumers. It will increase the
profitability of the business (Jurevicius, 2016).

Promotion: the method chosen for the promotion of the products in the
market should be based on the perception of the consumers. The promotion
strategy should be based on the fact that the strategy that affects the
consumers with higher economic status is differentiation and sense of
achievement, speed, fashionable and reliability. The promotion method
should instil a sense of higher status in the consumers. It should also
highlight the ecological benefit it offers as this strategy will affect the
consumers who are pro-environment. It should mix the ongoing
environmental hazards that are taking place and the safe and secure
solution it is offering to the consumers. It should also invest more in social
media, marketing and digital marketing due to their large coverage (Martin,
2014).
Figure 3-4 P's of Marketing
[Source: Martin, 2014]
Product: the product offered by the BMW is motor vehicles, accessories,
bikes and components and these all are safe and secure. Though, it has
invested in the manufacturing of the technologically advanced engine and
ecologically safe components. It will improve the profit margin of the
organization and also improve the profitability of the business. For further
advancement of the technology, safety and the excellence of the products