Marketing Planing for Automobile Industry - Coursework Example

 Marketing Planning Part 1: Luxury Fashion Industry or Automobile industry The corporation selected for this task is BMW. This company was founded in 1916 and has openly traded ever since 1969. The corporation produces and sells a diverse range of higher end sports cars as well as motor cycles along with BMW MINI with Rolls-Royce Motor vehicles. The BMW Group is one of the prominently successful multi-brand best automobile makers in the world (Kennedy, 2000, 15). In 2008, the firm sold 1. 435, 876 BMW MINI as well as Roll-Royce brand automobiles with over 1453 billions of income. The company employed more than 105, 800 employees in 17 manufacturing facilities around the globe. The primary step of this task is to evaluate the external setting in which the company operates and the major challenges faced by the group. To undertake this task, the author will apply the PEST analysis. The subsequent step is the examination of the immediate operational setting. This section will cover the theme of customers’ challenges along with the market share. The third and the final step is a trailing of the company’s shares in the final months and connections assumptions regarding the fluctuation of the share. Porters 5 Forces Analysis Threat of New Entrants - Very Low In order to penetrate the vehicle market, an enormous amount of capital is needed. Besides, an entering corporation would require having a marvelous amount of implicit and explicit information to design along with the manufacture of products (Ferrell & Hartline, 2012, 78). Threat of Substitutes - Medium Existing substitutes comprise public transportation like buses, boats, trains as well as aircraft. Furthermore, consumers can apply other conservative means of shipping like bicycling or walking. Power of Suppliers - Medium Some dealers are smaller in addition to those that never have a great deal of power over the pricing as well as distribution of their merchandises. Nevertheless, there are not that numerous small parts producers in this market and so, the greater part of suppliers for main automotive makers is average to large businesses. Accordingly, they have a little flex in determining merchandise pricing, deliverance, and distribution. Power of Buyers - Medium While purchasers are people and are not clustered together, they still posses an enormous amount of information existing for them concerning the pricing as well as the cost to make a BMW. Accordingly, buyers do have some influence in being capable to bargain a purchasing outlay from BMW. Competitive Rivalry - Extremely High Any challenger in this market is usually a global corporation with billions of dollars in materials and can contend on any echelon that BMW can (Handlechner, 2008, 8). Besides, there is strong competition on all fronts in the vehicle market in broad; not to mention the luxury vehicle market. Part 2: LVMH / LVMH Fashion or BMW / BMW Automobiles MBW has numerous product categories which underscore the automobile corporations diversity of product (Hooley et al, 2008, 24-34), two common automobile product classifications are MBW-CR, MBW-VCR. The X3 (E83), BMW's subsequent crossover started in 2003 and is founded on the E46/16 3 Series stage. Sold in Europe as an off-roader, it gains from BMW's xDrive all-wheel drive organization (Evans, 2012, 46). The all-wheel drive X5 (E70) was BMW's initial crossover SUV (SAV), found on the 5 succession, moreover, it is a mid-size lavish SUV (SAV) marketed by BMW since 2000. A 4-seat crossover SUV launched by BMW in December 2007, the X6 is distributed as a "Sports Activity Coupe" (SAC) by BMW. The X1 expands the BMW Sports Activity succession model lineup (Kennedy, 2000, 15). BMW is on something of a spin this year. A new 5 cycle helps, but the corporation is also benefiting from valuable management that has hastened new reproduction momentum, slashed costs as well as hedged currency hazards. Strategic bottlenecks remain, although the short-term viewpoint for BMW is absolutely upbeat (Bly, 2010, 27). The BMW brand enlarged sales by 12% during July on the basis of towering demand in China. It looks forward to volumes to mount by 10% this year to 1.4m automobiles. The gain echoes strong sales in launched markets in addition to high-expanding emerging markets. In July, the corporation managed to realize a small gain in Germany of 3.6% (23,384 BMW along with Minis registered) beside the strong descending trend (-30%) in the general market. In the period of July, the US deliveries increased 10.1% to 23,390 vs. 21,253 a year ago. Part 3: BMW Automobiles The SWOT analysis of BMW Company indicates the inherent strength, weaknesses, opportunities and threats of the automobile corporation. In essence, the company’s SWOT analysis seems particularly skewed towards the corporation’s positive sides owing to the fact that currently the company is performing very well, has appropriate strategies, policies and opportunities as well. Nonetheless, this does not mean the absence of threats and risks in the company’s operations and activities. The company’s major strength is the product range and diversification. BMW has a wide range of automobile products including motor vehicles, bicycles and motorbikes among others (Fifield, 2012, 45). Similarly, the relevant product ranges are of a diverse nature incorporating the different tastes of the customers. Among motor vehicles, for instance, the company produces an array of assortments including sports utility vehicles, luxury vehicles among other brands. As a result, the corporation is able to cater for numerous clients who have different needs. The company’s weaknesses lie in marketing strategies; BMW does not have a coherent marketing planning system that ought to inform the development of an appropriate marketing strategy (Keegan & McDonald, 2002, 67). Efforts ought to be made to incept appropriate arrangements towards better marketing strategies. BMW has numerous opportunities across the market owing to its high end automobile products that are very much in demand. Young and wealthy segment of the market is very much attracted to BMW assortment of high end, luxury and SUV products making it the most potential target market for the corporation at present and in the future. Possible threats will emanate from competitors trying the BMW’s product range and strategy. Part 4: BMW Automobiles From the analysis conducted on BMW Automobiles, there are several parameters that ought to be considered in the process of setting the marketing objectives as well as addressing in the marketing strategy. These factors include product categories and diversification, potential of competitors, technology, available opportunities. A clear consideration of these parameters holds the key to the success of the company particularly in the marketing field which is the core function of any commercial entities as regards sales. However, these factors are equally important in the overall marketing strategy. Product category and diversification are of core significance in setting the company’s marketing objectives owing to the fact that a successful marketing endeavor ought of have clear perspectives of the product categories offered by the relevant corporation (Hooley et al, 2008, 34). The more the product diversification, the more successful the marketing operation will be. It is against this backdrop that BMW boosts its product diversification portfolio for successful commercial operations. The wider marketing strategy of the automobile corporation will practically emanate from a perfect and efficient blending of the product category and diversification. Potential of competitors, technology and available opportunities are equally important because the potential of competitors indicates the appropriateness and intensity of the strategy developed (Maguire, 2007, 32). The organization should develop a strategy that is strong enough to counter that of the competitors. Technology is the core consideration nowadays owing to the advancements made in technology over time. Available opportunities resent the company with chances to explore new ideas as regards market planning and strategy. Part 5: BMW M6 Convertible Young, technology savvy and wealthy individuals in society are the appropriate target market for BMW corporation products due to the nature of the range of automobiles. This category of the market is aware of the technological advances made in the automobile industry and perfectly understands its needs regarding the products on the market. Therefore, the company can make it a duty to conduct market surveys and understand the needs of the market in order to continually satisfy their needs. Subsequently, this category forms the noble class of society that constantly requires the best products particularly luxury vehicles as well as sport utility cars. BMW can specifically focus on such to continuously sustain the client requirements. BMW’s short term marketing strategy could possibly work well when it is based on a clear framework in which the class is targeted as the main market (Klein, 2007, 42). Luxury automobiles along with sport utility vehicles SUV could be marketed directly to the young and wealthy sections of the wider market. The products will, thus, be customized to meet the fancies, needs and expectations of the target market. Tailoring the make for purposes of gaining and retaining customers will serve as bait for more demand for the automobile products. Targeting young, technology savvy and wealthy individuals, on the other hand, will be a successful marketing strategy since the target market is continuously able to sustain its demand for the company’s products. References Bly, R., 2010. Marketing Plan Handbook: Develop Big Picture Marketing Plans for Pennies on the Dollar. Washington: Entrepreneur Press. Evans, D., 2012. Social Media Marketing: An Hour a Day. Washington: John Wiley & Sons. Ferrell, O. & Hartline, M., 2012. Marketing Strategy. Washington: Cengage Learning. Fifield, P., 2012. Marketing Strategy. New York: Routledge. Handlechner, M., 2008. Marketing Strategy. New York: GRIN Verlag. Hooley et al., 2008. Marketing Strategy and Competitive Positioning. Washington: Prentice Hall. Keegan, W. & McDonald, M., 2002. Marketing Plans That Work. London: Elsevier. Kennedy, D., 2000. The Ultimate Marketing Plan: Find Your Most Promotable Competitive Edge, Turn It Into a Powerful Marketing Message, and Deliver It to the Right Prospects. New York: Adams Media, Klein, A., 2007. Marketing Plan- BMW 1-series in Germany. New York: GRIN Verlag. Maguire, M., 2007. Bmw Brand Audit. New York: GRIN Verlag. Appendix SUV-sports utility vehicles Diversification- variety of product and service lines Savvy-knowledgeable SWOT-strength weakness opportunity and threats Word Count = 1511 words Read More