Bavarian Motor Works: Bavarian Motor Works (BMW

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Bavarian Motor Works (BMW), is a German automobile company established by Franz Josef Popp and the date founded is March 7th, 1916 (BMW, 2001). BMW is belong a car industry and the produces motorcycles under BMW Motorrad, and plug-in electric cars under the BMW i sub-brand (Interbrand, 2016). Munich, Bavaria in Germany is the location of BMW headquartered. The BMW group also has a strong market position in the motorcycle sector and operates an effective financial services business. In 13 different countries, BMW having 23 production and assembly plants , and BMW is now classified as one of the top five luxury car manufacturers in the world along with Mercedes-Benz, Audi and so on (Falkemark & Larsson, 2006). In addition, it can be categories as the public limited company as it sells the share to public. It can be said to BMW have an oligopoly market structure which can define as a small number of interdependent firms compete that have control over the market (Investopedia, 2003).

Price elasticity of demand ‘There is a converse relationship between quantities demanded of good and price change’ is the …show more content…

Therefore, sales promotion is essential for this stages. The BMW group can encourage potential consumer to purchase their cars by involves offering short-term incentives. They need run different customer loyalty programs as one of the promotion strategies in major markets. For example, in North America, BMW offers repeat purchasers a USD500, USD1,000 or USD1,500 Loyalty Credit depending on the model of the vehicle (Dudovskiy, 2016). Other than that, the sales promotion is based on the personal selling, public relation and so on. Personal selling is the most traditional way, the staff will direct sell the good to consumers. After that, it includes provide a good customer service after customer purchase it, and directly build a good image for the company. Therefore, the recommendation can be considered sales

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