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Company Background & Products
In 1971, Bayerische Motoren Werke AG (BMW) was established as an aircraft engine manufacturing firm. After World War I ended in 1918, BMW was forced to discontinue the production of engine by the Versailles Armistice Treaty. Subsequently, BMW shifted to motorcycle production and followed by automobiles in the 1928.
BMW logo, circular blue and white, is portrayed as the movement of an aircraft propeller and to symbolize the white blades cutting through the blue sky. The emblem was assembled with the blue and white colors of the Bavaria’s flag, reversed to piece together the emblem.
Ever since then, performance and luxury vehicles are the limelight of BMW. In 2006, the BMW group which includes MINI and Rolls-Royce manufactured 1,366,838 four wheeled vehicles in five different countries. These vehicles were sold worldwide which allows BMW to become the global leader in premium car sales.
With rapid technology advancement, BMW have released their latest product, BMW i8 (GmbH, 2014). I8 is the first sports car with the consumption and emission values of a compact car. The cleverness of the plug-in hybrid is the flawless integration of an electric motor and combustion engine that is demonstrated on the street with the highest dynamics and efficiency.
SWOT
Strength
• Strong Brand Reputation (It’s a well know brand in the car industry)
• Corporate Social Responsibility (Corporate Volunteering)
• Quality Products (Known For its performance and luxury vehicles)
Weakness
• High Cost Structure (Might Be more expensive due to the luxury brand)
• Lack of strategic partnerships compared to the competition
• Perception of high price (If consumer thinks that what BMW offer isn’t worth anything, then how can BMW ever...
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...d design. This also allows BMW to gain repeat business because consumer does not feel the need to look anywhere else to fulfill that particular need.
Beliefs and Attitudes
In our daily activities, consumer builds beliefs and attitudes that in turn influence consumer buying behavior. This attitude will persist when the situation that produce them change, if a company appear to share the values, it may actually attract business. However, if the company perceive a product as beneficial or competition as harmful, consumer will move towards one and avoid the others. Thus, BMW has strives to position their products through advertising so they would appear associated with positive traits and to counteract beliefs that interfere with the products ability to attract buyers.
Marketing Strategy, Recommendations & Conclusion
Identify
Positioning
Product
Price
Place
Promotion
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
The world of technology is ever changing and advancing. With the automotive industry in play technology is constantly surpassing what is available today with what can be done for tomorrow. Technology and the automotive industry go hand in hand with constant improvement to components of cars. Due to technology advancement there is competition within the car industry, especially between American car companies and European car companies. European car companies provide their buyers with innovative variety and revolutionary luxuries. European car technology is superior to American car technology due to their safety, entertainment, and luxury features.
Perhaps the CAR could be initially launched in a small selected test market, stressing the dialogue with the customers about the value of the product and service. Afterwards, target pricing in pace with to the company’s strategic objective of a deft market penetration can beacon engineers to rebalance the technological features of the CAR. This also accommodates better for investors’ expectations of a fixed return. Moreover, it allows AUDI’s management to concert its pricing strategy and counteract unforeseen changes in the all too sensitive demand, as the link between customer value perception and product’s cost becomes alive. After all, relying solely on a forecast is not advised, as it cannot possibly capture all the dynamics of a fairly unknown market for a project which needs to age in the years to come.
Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970s and 1980s? (5 marks)
As most car dealers know there has been a huge boost in customers wishing to personalize their vehicles. Many customers consider their vehicle an extension of their own unique personality. But the key to successfully selling aftermarket products as a dealer is showcasing unique vehicles that will catch the eye of the customer. When the customer sees a one of a kind vehicle with clean smooth car window tinting vs. a car with no window tinting at all they are more likely to go for the one with the car window tinting because it is more appealing. If a customer sees a truck that he likes at a dealership but it doesn't have all the features that he saw initially in an add or commercial he may decide not to buy that truck. The customer is more likely to buy a vehicle if it has at least one or two special aftermarket features.
Strong brand images must have certain criteria to fulfill to create an understanding within the audience. In todays society clear aspects must be memorable. Brand awareness must be recognized to create this memorable quality. Rolls Royce demonstrates this quality through its mascot on the front of its hood. For a brand to be memorable it must hit certain aspects. The audience must be able to recall it. The ability of a companies branding to stick is key for being beneficial. An article in Fashion Drive magazine in (2012) talks about the image that appears on each hood of a Rolls Royce vehicle. “One of the first things we notice about any car from Rolls-Royce is the winged mascot that stands in front of the car. Although, the meaning of it may symbolize many different things to many diff...
Another important differentiation strategy that BMW has incorporated is the establishment of links between the customers and the company. Over the years, the company has created a servicing segment that ensures that contact between the company and the customer continues even after the initial vehicle purchase.
BMW- differentiation strategy, high price, breadth of product line is moderate, known for their cars being in the shop constantly and high maintenance bills.
Ford Motor Company is an American multinational and second-largest U.S base automaker with headquarters in Dearborn, Michigan, manufacturing and distributing their products worldwide. The Ford Motor Company was founded by Henry Ford on June 16, 1903. Henry Ford succeeded in his mission to produce an affordable, efficient and reliable automobile for the masses when the company introduced its highly successful launch of the Model T. The success of the Model T and its high demand lead Ford Motor Company to develop innovative production methods including that standardized parts and, of course, the world’s first moving assembly line for cars. Today the company is a publicly traded company with the New York Stock Exchange and operates over sixty plants worldwide with over 171,000 employees. The company’s automotive products include a full family of
The products produced by BMW are prestigious, high performance, technologically advanced automobiles. These start from mid-range cars up to the most prestigious and luxurious. The present models are: BMW 3 Series - Saloon, Coupe, Convertible, Touring, Compact ----------------------------------------------------------- BMW 5 Series - Saloon, Touring BMW 7 Series – Saloon BMW Z3 - Roadster BMW Z4 - Roadster BMW Z8 - Roadster BMW X5 - 4WD BMW M - M5, M3 Coupe, M3 Convertible, M Roadster, M Coupe Mini Cooper - an independent brand within the BMW Group[2] 1.5 Price BMW price ranges are from $17,000 to $80,000.
Audi is majorly owned subsidiary of the Volkswagen (VW) Group and is headquartered in Germany and operation in more than 100 countries. With the commitment the implement progressive technology and its technological ingenuity, by late 1990’s Audi became globally respected brand among luxury automakers. After its entry in luxury sector in early 1990’s, Audi leveraged its ingenuity and gained the competitive edge over the industry parameters of innovative design, safety and performance. Today, Audi remains focused on satisfying on customer needs by building a brand that exemplifies individuality, exclusivity and excellence.
There is no doubt that electric cars are the most appealing from of transportation in the world. They provide two of the most important key points of good transportation: reliable and efficient. They are reliable due to their simplicity of their power trains and the advancement of technology they have. They are efficient because they don't use any gasoline and because their motors can pass the zero-emission standard. Even though they may seem like a boring form of transportation, they offer good features that help keep the Earth's air clean and they help reduce pollution.
BMW was found in 1913 by Karl Rapp as an aircraft engine design shop. After WWI, it started building motorcycles and then expanded into motor vehicles industry during the 1930's. After WWII, the company suffered again but survived later when Herbert Quandt took over the control in 1959. The company rapidly grew considerably and reached a market value of nine billion U.S. dollars in 1979; however, it was still small compared to the big U.S. auto manufacturer. Profits continued to grow up quickly. By 1995, BMW had thirty-four wholly owned subsidiaries, fourteen in Germany and twenty around the world. They also discovered that U.S. market would be the largest and fastest growing market for BMW.
Bayerische Motoren Werke AG, shortly known as BMW, is a German manufacturer of luxurious automobiles and motorcycles. BMW group is not simply one name: it is also the parent company of other premium brands such as the MINI, the Rolls-Royce and the motorcycling company Husqvarna. For the purpose of providing a maximum of details, this essay will just focus on the automobile part of BMW as it is more significant than the motorcycle segment and since they have a lot of overlapping factors.
The global company Mercedes-Benz is considered one of the most successful and well-known automotive companies worldwide. Since 1886, the company’s founders Gottlieb Daimler and Carl Benz made history with the invention of the automobile, including the Daimler Group, which is one the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles globally (Daimler, 2013). Their main focus is innovation, safety, technology, style, brand image, expansion, and superior automobiles by offering the best of the best to consumers worldwide. The brand’s philosophy is to continuously create radically new products to advance the cause of human mobility. It is also the number one luxury brand in the United States and Germany while continuously expanding in China and Russia as well (Interbrand, 2013). Mercedes-Benz has a great selection on divisions such as cars, trucks, vans, buses, and financial services offered to any consumer or business. Their global reach has increased tremendously by including production facilities in 17 countries on five continents and having 93 locations worldwide. As a pioneer of automotive engineering, their strategy is to continue the same pioneer role with the ongoing development of mobility, especially in the areas of safety and sustainability (Daimler, 2013). It is very essential for the company to focus on consumers’ needs and their highly well known brand in a competitive global economy. That is why the company Mercedes-Benz releases a brand new model every year to stay on top of its competitors by improving previous models. Some strategies practiced are global marketing, global product development, global product pricing, global advertising, global distribution, an...