Marketing Strategies of BMW - Essay Example

BMW Market Strategies BMW Market Strategies Marketing Strategies of BMW Introduction The mission of BMW globally is d as“being the most successful premium manufacturer in the industry.” The basis of each marketing policy is market segmentation. Segmentation is simply dividing the market which has heterogeneous products into what has been referred to as homogenous parts. Segmentation makes a company more efficient and be able to get a niche market and subsequently have a simple marketing policy (Kotler 1994). This paper is intended to show the marketing strategies of BMW in the context of segmentation, targeting, and positioning process of a car producer which in this case study is BMW. This is a medium sized care that fits within the requirement of the paper (Smith, Berry, & Pulford 2002). The BMW 3 series model is simply an economy model and very efficient and doing well in the market. This car is approximately 4, 5 meter long and is reported to cost 26,000 dollars and subsequently offers space for five adults. The competitors of BMW 3 series include Audi A4, Opel Vectra, Mercedes Benz C Class, Mazda 6, Volkswagen Passat, and Ford Mondeo (Kotler 1994). Marketing Strategies of BMW The basic reasons that necessitate the division of the market into very small segments include easier marketing. This simply indicates the fact that it is easier to address the various needs of the smaller groups of consumers, specifically if they have several characteristics that are common. Further, it helps in finding the niches which simply means that when the un-served or under-served markets are recognized. Segmentation can make it possible for a new product or company to target a market that is less congested or that which has new consumers (Smith, Berry, & Pulford 2002). Finally, it also helps a company be efficient which simply means efficient use of the marketing resources through focusing on some of the best segments for the offering such as promotion, product, place, and price. Segmentation, targeting and positioning can therefore ensure that the company does not send its messages or products to the wrong individuals (David 2001). Separation of the market simply starts with defining of the entire market. After division of the market into different segments, a particular segment that is seen as profitable should be selected. The very last two steps are reported to be the product positioning within the market and consequently adjusting the proper market mix. Kotler states that four criteria are significant in segmenting a market and include geographical, demographic, psycho graphical, and behavior criteria. Positioning on the other hand refers to the particular place a product occupies within the minds of a consumer with regard to the significant attributes comparative to the competitive products (Kotler 1994). In order to position a given product, the company should be adequately informed concerning the competitors, their own company, as well as competitors. With a better knowledge of the market, the firm can the move on to formulate a better position matrix. BMW aim at growth in profitability of the firm by targeting market sections deemed more profitable. To achieve this easily, it will use its most respected brand to outdo potential competitors. The year 2000 marked the best year for BMW with its first half providing sales that the company has never achieved in its history. Worldwide deliveries rose by almost 9% to 421,000 units; Turnover of 15% over the comparable for the first six months of last year. Production of the BMW Group developed to meet the needs of different customers, offering a variety of models for luxury, medium and low segments. Company is constantly working on new decisions and technological improvements and is setting new standards in production. BMW has already made individual requests respondents. Now this is the ambiguous goal is to provide each client of his person, own car agreed at a certain time in advance. In addition, the BMW Group is a new standard for the treatment of time required for a new car in the distribution and production to 10 days (Rahim 2007). First experimental cars with hydrogen engines are already available. In the future, BMW relies heavily on the large e-commerce project, which was to increase five times over the next three years, the number of employees and customers (Gottlieb, Brown & Drennan 2011). BMW Group plans to consolidate its e-business ventures into a different firm with the name. BMW Group aims to create a platform that supports the entire process - from purchase to sale for the manufacturing industry through nexolab. Company followed well-defined personnel. BMW considers people working for the company, as no company funds, but the significant ingredient to "success (Nejad, Sherrell & Babakus 2014). This idea leads to lower costs and growth in profitablity. Nevertheless, the large global Republic strongly depends on the effective implementation of all "sections and divisions. Therefore, not without a brief synopsis of one a segments, BMW Rover vehicles present the analysis of the next BMW Group. The case was discussed in the media and much of the first HR had to leave the company to protest against the takeover. The continuous decline in demand in the UK market, ineffective costs of production in the Rover Company were among the reasons for the downfall. The steady growth of the pound sterling against DM later made the euro against non-competitive Rover production compared with other European automakers. Large commitment of funds to reduce costs and ensure higher productivity of Rover plants were useless. In 1994, Rover had 11.3% to 4.6% market share in the United Kingdom.During this period the pound continued to appreciate against the euro. Therefore automaker in the zone of the euro stills a significant competitive advantage, which can also be triggered by a further increase in productivity with Rover (Stacey, 2010). The BMW Group had significant proposal for restructuring and other hazards associated with Rover. Generally, there were extraordinary costs of 3,150 million Euros and a net loss of € 2,487,000 (see Income) services. In the first half of 2000, the BMW Group has its realignment and 9 May 2000 in British Phoenix Consortium accepts responsibility for the development, production and sale of Rover Cars completed. Phoenix has more than 7,000 employees of the former Rover Group, Birmingham factory and hence the production of Rover 25, 45, FGM and Mini Classics removed. On June 2000, Land Rover Freelander, Defender, Discovery and Range Rover models of the Ford Motor Company was sold at a price of EUR 3 billion (Hosier 2013). The Financial Services has been successful; sales increased by 6.6% to 6 € 153 million. Comparison with the FORD MOTOR COMPANY The main challenger to the BMW Group possess the largest share of the car market. The aggregate value of shares of Ford Motor Company more than 7 times the corresponding value of the BMW Group. The common shares of BMW since 1926 listed after the currency reform traded BMW shares as shares with a nominal value of 50 DM, DM 100 and DM 1,000 in 1989, BMW introduced the preference shares - with traded nominal value of 50. The preference shares DM, in contrast to ordinary shares without voting rights, but with an additional dividend. In 31 December 1999, the share capital of BMW AG amounts to EUR 670,687,730 to 622,227,918 and consists of 48,459,812 ordinary shares and preference shares. Now BMW share index for companies that listed the principles of sustainability in the Dow Jones Sustainability Group. The 200 companies in the index were selected performed more than 2,000 international companies on the basis of the survey of the employment agency and noted Swiss Sustainability Group SA. The ranking is based on benchmarks such as technology leadership, social and environmental sustainability, human resource management, management culture, productivity growth. The company is recognized as a world leader in the automotive industry. The uncertainty about the Rover development reduced the share price in the first half of the year. This pushed BMW brand development success and growing confidence in the success of the market Rover restructuring measures the price. The last day of the year-end price was € 30.65 and BMW common stock by 22% over the price offered in the previous year, beat CDAX automobile index. While BMW preferably action, however, was able to rotate in the same result as the ordinary shares. The closing price of 14 € set below 5% of the price of the previous year the preferred stock. In the course of a decade, investors holding shares in the spring of 1990 reached purchased an average annual return of nearly 19%. Over the last 5 years, yields higher than 24% (Federal bonds reached 7%). In the first half of 2000 BMW shares showed a better performance than the shares of another German car factory. Compared with the value 25.42 June 30, 1999, the value of shares increased in the range of 24.7% to € 31.70. Bibliography David, L 2001, Segmentaion Dynamics. New York: David Lindsey. Gottlieb, U.R., Brown, M.R. & Drennan, J 2011, "The influence of service quality and trade show effectiveness on post-show purchase intention", European Journal of Marketing, vol. 45, no. 11, pp. 1642-1659. Hosier, R 2013, How to modify BMW E30 3 series: for high-performance and competition. Kotler, P 1994, Marketing Management, Analysis, Planning, Implementation, Control. Prentice Hall International, Inc. Nejad, M.G., Sherrell, D.L. & Babakus, E 2014, "INFLUENTIALS AND INFLUENCE MECHANISMS IN NEW PRODUCT DIFFUSION: AN INTEGRATIVE REVIEW", Journal Of Marketing Theory and Practice, vol. 22, no. 2, pp. 185-207. Rahim, M. A. (2007). Current topics in management. Vol. 12 Vol. 12. New Brunswick, N.J., Transaction. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=395702. Smith, P., Berry, C., & Pulford, A 2002, Strategic marketing communications: new ways to build and integrate communications. [s.l.], Kogan Page. Stacy, L 2010, BMW. 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