Question

Based on your opinion answer the following question

Which of the channels being used do you believe are most profitable, given their relative costs for BMW?

Which of the channels being used do you believe are not as profitable as others but are still necessary to maintain market coverage?

Answer 1

Marketing Strategy of BMW Group:

The success of any company is based on how effective marketing and advertising strategy it adopts. BMW Group adopts a marketing campaign of targeting its customers. In the slogans i.e. “The Ultimate Driving Machine” and “Sheer Driving Pleasure”. BMW tells its customers and other people that BMW cars give a pleasure in driving that no other car can give.

The marketing strategy of BMW also consists of a strong advertising strategy. WCRS has been BMW’s advertising agency since 1979 and have really made a great brand image for BMW by advertising campaigns including famous actors like James Bond, Tom Cruise etc.

Segmentation for BMW:

BMW Group has a strategy of targeting their customers by using segmentation. Geographically, BMW Group targets the areas that are more industrialized like Europe, North America, some parts of Asia and Africa i.e. China and South Africa. More than 70% of sales of BMW cars are recorded in Europe and North America.

BMW Targeting:

BMW Group targets people who are aged between 25 and 40 because these people have a successful image. By, these people have a clean modern look and a feel good factor. BMW Group focuses on being labeled as a “luxury car” and “a foreign or international car”, so BMW Group does not look to target one ethnicity or citizenship.

The aim of BMW Group is to target customers that have an income of 25,000 Pounds.

BMW Positioning:

There is a quotation on the website of the BMW Group, which says that “the image that BMW Group has positioned itself in exclusivity, performance, quality, technologically advanced producer in the world. The markets BMW position themselves are very competitive”.

Most of the people value “a feeling of safety” while using BMW, which positions BMW Group ahead of its competitors in customer satisfaction.

CONCLUSIONS

BMW Group is the leading premium car manufacturer and seller in the world. The sales of BMW Group are rising day by day. But one great threat for BMW Group is the increasing competition in the automobile market. BMW Group has got fiercing competitors like Audi, Mercedes-Benz being the two nearest to BMW Group in competition in the premium car industry.

BMW Group is now trying to target the emerging markets of the world. The sales of BMW Group in different markets of the world tell that the European and the US markets are the best markets for BMW Group in terms of sales. In recent years, however, the Chinese market has been a great attraction for the BMW Group and sales have been increasing every month for the BMW Group.

In the end it may be said that the BMW Group distinguishes from its customers by its great advertising and marketing campaigns and mostly by their great brand image. The innovation of the company, diversification in new markets, technological advancement and customer satisfaction are the key to BMW success in the luxury car market.