Case Study BMW: 'Newness and the Product Life Cycle - Essay Example

BMW regularly restructure its target markets in order to capture a bigger portion of its market share. In order to satisfy each individual preferences of its target customers, BMW has introduced several product lines in the market (U.S., Germany, and U.K.) including series 3, 5, 6, and 7; the Z line of roadsters; X line of sports cars; and M line of motor sport sedans. sense that the sales and profit is considered the lowest during the introductory period wherein BMW’s marketing department spends more time on conducting marketing strategies to convince its target consumers to consider buying the new product.

Eventually its sales and profit would gradually increase as soon as the market has accepted the new car model until it reaches the maturity stage. Upon reaching the maximum growth potential for the new product, sales and profit is expected to shift downward slope. Figure 11-1 is dissimilar to BMW’s product-life-cycle in the sense that BMW has developed a strategy that could prevent the company from reaching the decline stage by scheduling the introduction of a new car model from its product line.

For instance, BMW will introduce a new ‘Z’ model this year, a new ‘X’ model next year and so on. This type of product-life-cycle strategy enables the company to create new product demand each year. Based on the three ways of managing the product-life-cycle, BMW utilizes its product lines by modifying or improving its existing products in the market. Doing so makes it easier for the sales and marketing people to introduce the new product since its target customers already know about its existing car models.

The branding strategy used by BMW is unique and effective since the combination of its known car model such as the ‘Z’, ‘X’, and ‘M’ allows the consumers to have an immediate idea on the type of product BMW is selling in the market. specifications and preferences increases the probability that