Situational Analysis of BMW - Marketing Strategic Alliance and Launching a Model of BMWi - Essay Example

?Case study: BMWi Table of Contents 0.Introduction 3 2.0.Situational Analysis 4 3.0.Strategies to Generate the 5,000 Leads 5 a.Acquire a New Type of Customer for BMWi 5 b.Migrating Existing Customers for BMWi 6 c.Database Strategies of BMWi 7 4.0.Segmentation, Marketing Plans and Recommendations for BMWi 9 5.0.Conclusion 11 References 12 Bibliography 14 1.0. Introduction BMW is one of the leading automobile companies in this 21st century. Since its instigation, BMW has been primarily focused on using advanced automotive technologies with due consideration to a secure drive along with rendering significant environmental awareness. The company is well known for its exceptional designs with high quality of luxurious elements. In terms of the environmental consciousness, this is one of the vital issues that the automobile companies must focus on in this fiercely competitive world. The experimentation of this ecological approach was first conducted by BMW in 1972, during Olympics held at Munich, Germany. The company executed its successful experiment for the first ecological car in this Olympic which influenced BMW to move ahead with the concept leading to the commencement of its sub-brand, BMWi (BMW Group, 2011). The paper will hereby focus on the situational analysis of the company with the intention to plan a marketing strategic alliance and assist the company to launch a model of BMWi acquiring new type of customer group(s). The prime focus in this regards would be rendered toward the attainment of the organizational goal to generate 5000 leads. Strategies concerning segmentation and targeting as well as directing marketing, media and creative plan will also be suggested to BMWi. 2.0. Situational Analysis According to the definition of the situational concepts, it focuses on the summary of the management situations, including internal as well as external scenario, which captures the concentrated segment of the organization’s growth along with the company statements (International Federation of University Women, 1994). Hence, with the perspective of situational analysis of BMWi, the main advantage of the company is its brand recognition along with one of the sustainable transportations manufacturer in this globe. Creative diversity among the products is also highly recognized by the brand which is one of the sophisticated enhancements to lead in the automobile segment. From the past experiences, continuous up-gradations with regards to the models of the cars have been significantly recognized from the past decades. Therefore, the diversity in terms of the product variations may considerably help to concentrate on better innovation processes which in turn shall assist the company to develop as a leader in the industry (Larson & Falkemark, 2006). The situational analysis of BMWi indicates that the company has to face certain challenges in order to launch its electric vehicle in relation to the creation of new customer market and simultaneously shifting the existing customers towards the consumption of BMWi. It is worth mentioning in this context that BMW has been serving its clientele in the international market since decades and certainly have gained a considerable corporate reputation in the international automobile industry. The company is also quite famous to serve its customers with efficiency, innovation and quality assurance which embarks its perceived brand value amid customers to be admirable. However, while generating new customers for its new model BMWi, the company may have to face challenges while developing awareness regarding the product features, its quality and uniqueness as an electronic vehicle as well as in terms of its accessibility. In the similar context, while intending to motivate the existing customers towards the purchase of BMWi rather than opting for any other conventional model, the company might have to face the challenge of persuading the customers highlighting the advantages and need for electric vehicles (particularly BMWi) over other conventional engines. 3.0. Strategies to Generate the 5,000 Leads a. Acquire a New Type of Customer for BMWi The increasing awareness regarding global-warming in the current socio-economic environment has also affected the customer’s buying behavior in terms of purchasing emission free vehicles. Thus, a positive impression can be observed in the current market scenario of environmental friendly vehicles which can be efficiently acquired by BMWi following the different phases of the product introduction process including creative idea generation, development of the concepts along with the testing, introduction marketing policies, business analysis, product development, experimentation as well as commercialization of the product (Aberdeen Group, Inc., 2005). With the perspective of acquiring new customer group(s) for BMWi, the marketing strategy can fundamentally intend to highlight its innovative and creative features of the model. BMW is going to introduce the i-models of Mega City Vehicle (MCV) in 2013 with BMWi3 and BMWi8. The most significant advantages of BMWi can be related to its electronic operations along with the rechargeable cells by its engine which will be quite advantageous for BMW to gain the attention of the new as well as the existing customers. The creative and descent architecture of the BMWi, with its high performance along with the safest driving experience comparing to its competitors can play a crucial role to increase the value of the brand along with the environmental awareness amid its new customers. However, the company has always been observed as committed toward developing environment friendly strategies related to its practice of manufacturing personal transportation vehicles. With due consideration to these facts it can be stated that the most prospective market for BMWi signifies those cities which are highly affected by the greenhouse gas emission as environmental awareness is expected to be considerable in such regions to favor the selling of the model. It is worth mentioning in this context that price must not be a crucial factor for concern in comparison to the efficiency of BMWi and therefore the new customers can be acquired focusing on the region and their perceived awareness by a large extent (Larson & Falkemark, 2006). b. Migrating Existing Customers for BMWi The emission free concepts of the BMWi, which is completely based on electronic engine designed with due significance toward air pollution and sound pollution. It is worth mentioning in this context that automobile industry has been repeatedly accused to be causing environmental pollution which has gradually increased the level of awareness amid the existing customers of conventional vehicle engines. Hence, customers today are being increasingly motivated to purchase environmental friendly vehicles rather than the conventional ones. This can be suggested as an advantageous aspect to motivate increasing migration of the existing customers of BMW’s conventional machines to BMWi’s environmental friendly vehicles (Scribd, 2012). For the existing customers the technology and design along with the sustainability of the products can prove to be highly influencing to acquire the experience of the e-Drive concept as highlighted in the BMWi megacity vehicle. The innovative battery technology and intellectual engine system can also present the vehicle as extremely agile rendering a pleasure to drive. The designs and the features of BMWi supported by its sports characters and high mobility electronic engine can also act as a motivating factor to BMW’s existing customers. Moreover, the uniqueness of BMWi models in comparison to other existing electronic cars and even the conventional models of BMW shall prove beneficial to attract the existing customers (BMWi USA, n.d.). c. Database Strategies of BMWi On behalf of generating 5000 leads for the new BMWi, the database strategy must be designed accordingly focusing on the existing and the new customers of BMW. In this context, the overall strategy targets to attain 5000 leads by the final launch of BMWi. It is worth mentioning that the company has received approximately 1.5 millions of customers’ names including new purchasers as well as existing or approved-used car purchasers along with the 400,000 potential customers and lapsed customers. Based on this aspect, the target of attaining 5000 leads can be observed as achievable subject to the efficiency of the marketing strategies and its effective execution. The price quoted for the purchase of the vehicle is recorded to be ?35,000 which again includes diminution of ?5,000 rendered by the government so as to encourage the consumption of electric, emission-free vehicles. Another exciting factor which can be considered as a crucial motivating aspect to persuade the customers by BMWi is the financial classification where the company intends to provide 15 percent of value of the car. Only 30% of the entire price of the vehicle shall be paid by the customers while the remaining amount outright. Furthermore, emission free vehicle concept, it can increasingly generate an innovative experience within the new customers’ perception for acquiring the new types of electronic vehicle. The market for the BMWi normally emphasizes in the urban regions of UK and America with its potential emission free electrical MCVs segment. In this regards, it has been observed that the customers of those car markets intend to be a part of the emission free awareness. In the context of the European and American car markets involve high income groups beholding their passion about the quality and comfortability as well as descent models of personal vehicles which indicate a potential market for the BMWi. These aspects can be utilized by BMWi in its marketing approach as major attracting features to persuade the existing as well as new customer segments. However, it is worth mentioning that the short-listed leads from the received 1.5 million customers’ names shall be divided in two proportions, one being the existing customers’ list and other being the new customers list. Their payment ability and (if available) their past record of being into relationship with the company shall be considered as vital while confirming them and passing them on for dealerships. 4.0. Segmentation, Marketing Plans and Recommendations for BMWi BMWi can involve the advantageous characteristics of the customers along with the socioeconomic conditions and demographic segmentations relating those with the features inherent in the models of BMWi. The marketing plan of BMWi can also engage the geographically as well as the behavioral individualities of the customers so as to effectively persuade them towards their ultimate consumption. The segmentation and targeting of the company can be performed with due consideration to the information that the company productions are mostly based upon the developed markets such as Europe, North America and Japan along with the Asiatic Regions due to the higher income levels along with the high capita income of these economies. Hence, geographical segmentation of the markets by BMW can be identified as the European and the American markets. The demographic conditions of the people in these areas are further observed to be most advantageous comprising of a major proportion of 30 to 50 years of age groups in its population. It is in this context that these people are learnt to be in an affordable position to consume the model along with are more aware regarding the environmental hazards caused due to automobiles and thus are quite likely to favor BMWi as an emission free vehicle. The major numbers of total selling cars by BMW are also recorded to come from Europe, United States and the pacific regions (Scribd, 2012). In this context, the introduction of the high-tech vehicles such as BMWi can be quite advantageous targeting these niche areas. It is worth mentioning that the positioning of the new models will be more advantageous for the company because of the key features possessed by the new concept of emission free vehicle. The brand recognition of BMW, which intends to enhance the company’s reputation for its quality along with the innovative features and designs, can also be quite virtuous in rewarding better customer loyalty for BMWi. The direct marketing plan for BMWi emphasizes on the aspect of accessing and persuading the ultimate consumers toward their ultimate purchase mostly using the advantages of promotional strategies through various media. With this concern, BMWi can intend to serve with the message of environmental awareness to its customers highlighting the efficiency of the model. This can significantly increase its brand value with the existing responsibilities that has considered by BMW. There are various media options available for BMWi’s direct marketing plan implementation. Due to the fact that the company especially targets the middle-aged group of both existing and new customers in the niche markets, it will be beneficial for the company to make use of internet sources as well as magazines which are based on technology along with environmental innovations. Promotion though newspapers and other print media, along with hoardings in public places can also be beneficial. BMWi can also be promoted by organizing especial campaigns for generating awareness regarding the environmental hazards due to emission through which the features of the model can also be directly transferred to the targeted customer group. It will also assist the company to resolve the pre-assumed queries amid the customers developing an unambiguous and positive feeling regarding the consumption of the model. 5.0. Conclusion The paper reflected on the new product promotion of BMWi based on the situational analysis of the company. The conclusive part depicts the introduction level of the BMWi which is completely a pollution free personal vehicle with creative design and additional features. The database strategy of the company has been taken under consideration which can also be valuable for the new marketing concept for BMWi unambiguously depicting the objectives of the company. It is in this context that the model can serve with long-term advantages for the company provided the company generates adequate awareness amid the customers to enhance their eagerness for ultimate consumption. In this regards, the company should emphasize on its product features related to consumers’ need and simultaneously providing due consideration to the media promotions as well as creativity to preserve its uniqueness. References Aberdeen Group, Inc., 2005. New Product Development: Profiting from Innovation. Business Value Research Series. [Online] Available at: http://www.lorinthe.com/index.php?id=825&d=Aberdeen_New_Product_Development.pdf [Accessed April 26, 2012]. BMWi USA, No Date. Sustainable Urban Mobility. BMW i3 Concept. The Megacity Vehicle. [Online] Available at: http://www.bmw-i-usa.com/en_us/bmw-i3/ [Accessed April 26, 2012]. BMW Group, 2011. BMW Group Environmental Guidelines. Environmental Protection. [Online] Available at: http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/verantwortung/publikationen/downloads/_pdf/BMWGroup_Environmental_Guidelines.pdf [Accessed April 26, 2012]. Coronel, C. & et. al., 2009. Database Systems: Design, Implementation, and Management. Cengage Learning. International Federation of University Women, 1994. Situational Analysis. Training. [Online] Available at: http://www.ifuw.org/training/pdf/pdf-situation.pdf [Accessed April 26, 2012]. Larson, H. & Falkemark, C., 2006. Company Analysis. School of Economic and Commercial Law. [Online] Available at: http://gupea.ub.gu.se/bitstream/2077/3072/1/06-07-53M.pdf. [Accessed April 26, 2012]. Scribd, 2012. STP Strategy Segmentation, Target Market, Positioning. STP Strategy. [Online] Available at: http://www.scribd.com/huizhongbei/d/37373428-Bmw-Marketing-Final [Accessed April 26, 2012]. Bibliography Bradley III, D. B., 2002. The Importance of Marketing Planning To Prevent Small Business Failure. University of Central Arkansas. Newlands, D. J. & Hooper, M. J., 2008. The Global Business Handbook: The Eight Dimensions of International Management. Gower Publishing. Rob, P. & Coronel, C., 2009. Database Systems: Design, Implementation, and Management. Cengage Learning. Read More