PRINCIPLES OF MARKETING

MARKETING PLAN OF

BMW

Done By : Noora Karunnapilly

Student ID : 21600962
Module Tutor : Dr. Vipin V

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Content

1. Introduction……………………………………………………3

2. Marketing Mix…………………………………………………4

3. Marketing Analysis BCG……………………………………....7

4. Growth Strategy of BMW - Ansoff Matrix……………….……9

5. Customer Driven Strategy STPD…………………………….11

6. Conclusion……………………………………………………13

7. References……………………………………………………..14

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 1. Introduction

BMW, Bayerische Motoren Werke AG, is a well-known luxury car maker with its headquarters in Munich, Germany.
Since its founding in 1916, BMW has positioned itself as a premium brand that stands for innovation, power, and
elegance. This research attempts to give readers a thorough insight of BMW's marketing approaches and how well
they work at luring and keeping customers.
A varied range of products, including sedans, SUVs, electric vehicles, and high-performance sports cars, are part of
BMW's illustrious history of engineering brilliance.

Figure 1: Over time, BMW's net sales and income

BMW Net Sales and Net income have grown over time.It looks at the company's target
market, positioning in the market, brand identity, marketing mix, and digital marketing
strategy. It also gives suggestions for the future to help BMW's marketing initiatives in
the fiercely cutthroat luxury auto sector.

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 2. Marketing Mix

All four Ps—Product, Price, Place, and Promotion—are part of BMW's marketing mix.

a. Product Mix :-

Figure 2: The BMW product line

BMW has a wide selection of automobiles that are suited to various market groups. High-
performance sports vehicles, SUVs, electric models, and sedans are all part of the product
portfolio. BMW automobiles are renowned for their high quality, cutting-edge technology, and
distinctive designs, which work together to produce an exceptional driving experience.Under the
brand names the manufacturer, BMW, and Mini More than 80 unique types of lavish cars by
BMW have been created. A total of over 15 additional motorbike designs have been produced
under the brand name BMW Motorrad..

b. Price Mix :-

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 Figure 3: Considerations for purchasing a product based on price

When compared to mainstream brands, BMW automobiles are positioned as premium options
with higher price points. The brand's exclusivity and the estimated worth of its goods are
reflected in the pricing strategy. Customers are guaranteed to regard BMW vehicles as being of
the highest caliber, luxurious, and performance-oriented according to the company's price
policy.It goes without saying that the price range of a BMW is also premium with such high-end
technology and style. Customers expect and pay significantly higher costs for such perceived
quality because of this. In the lineup of goods offered by the BMW group, vehicles like the Rolls
Royce and mini John Cooper cost more than others.
.

c. Place Mix :-

Figure 4: Place Mix of amazon in all over the world

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Worldwide, BMW has a network of authorized distributors and dealerships. BMW vehicles are
always widely available and simple to reach thanks to strategic dealership location. BMW
choose locations in affluent urban areas and developing nations to effectively target its target
market.BMW is a well-known automaker with factories all around worldwide because of its
regional dispersion. By attracting new customers from Bavaria, Munich expanded its
manufacturing industry.

The BMW Group operates manufacturing facilities in 15 distinct nations through an extensive
system of 31 manufacturing and assemblage sites.

d. Promotion Mix :-
Figure 5: Frequently promoted products on Amazon

BMW employs a multi-channel marketing approach to promote its name and goods. When a
brand is advertised by traditional media such television, print, and outdoor, an intended
audience acquires aware of it. Digital tools help to engage customers and display BMW's most
recent products and innovations. Examples include social media, online ads, and influencer
relationships.
A company's level of success is dependent on how well its promotional and advertising
strategies are put into practice. Via digital channels (Facebook, Twitter, Instagram, and Vimeo),
television and print commercials, and several sporting activities, BMW uses rigorous

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promotional strategies to continually increase awareness of the brand. Yet, they are opposed to
making cars more broadly available.
.

3. Marketing Analysis

The Business Consultants Group Matrix is a good tool for performing this type of study when
executives need to assess its assortment of goods and pinpoint cost-effective and unsuccessful
business units. Four quadrants are included in the matrix along with profitable stars, posers, and
dogs. Based on their economic viability and ability to spur industry growth, products are
categorized in accordance with these categories.
Figure 6: BCG Matrix of Amazon

a. Cash cow :-

The business's top-performing products are those that it produces and which generate the most
sales and revenues. Due to the high demand of the items in question, the company can earn
more money and have a higher return on investment (ROI) in these goods than it gets from
other lines of products. They are all thought to be profitable products or company segments.
They persist to provide the company with funding, making considerable profits that allow it to
operate profitably without having to pay for significant capital expenditures. Cash-earning cattle
are a fantastic option for making money to assist the rest of the company because of these
characteristics. the automaker's goods are high-revenue-generating companies, earning the
nickname "cash cows" for the company.
arguably the most notable instances of an earnings-producing product is the Rolls Royce brand,
a unit of BMW.

b. Stars :-

The next matrix of BCG component that must be considered is stars. The future is bright for
these products, which are currently in considerable supply. The company must keep making
continuous investments in these industries if it hopes that the stars will eventually turn into

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profitable businesses. Stars are mostly known for their company's potential for future growth,
which could result in bigger market shares.

With further research, the business might be able to make money with those goods, which
already have a substantial market share. As a result, it is believed that these goods will be
profitable for the organization over a prolonged period.

c. Question Mark :-

Some goods aren't as promising as others that are supported by big names and moneymakers.
As a result of their high unclear information, these products are instead classified as "answer
mark" goods. These products may provide the company with financial leverage if they are
profitable, but they may also lose money if they are unsuccessful in gaining a substantial market
share. An organization must look at the chances of these things succeeding or failing in order to
decide whether an raising investments is likely to help the company reach its fiscal and
business objectives.Although profitable, BMW's SUV line has suffered a decline in its capacity
to make money, which has led to it losing its position in the high-end auto industry. The
automobile company unit could possibly be able to increase its profitability in the weeks and
months to come.

d. Dogs :-

The fourth part of the BCG Matrix is where the "Dogs" are located. Every one of the business
units or goods belonging to this classification do not generate any revenue for the company.
These items consequently do negatively with regard to prospective development earnings, and
income. Such goods are also probably contenders for clearance due to the poor return
investment return (ROI), and the company sees as a revenue trap. Sometimes a company
continues to support these endeavors, while at other instances the management decides to sell
or close their company unit. Although they weren't able to produce an identical level of selling as
the business's various other brands, the company's BMW the Z3 and Z4 cars have been
branded "dogs." Customers had disappointing things to convey about the Z 3 and Z4 because
of how poorly they performed in comparison to other BMW automobiles.

4. Growth Strategy of BMW

Ansoff Matrix :-

It examines that Ebay implements the five expansion plans that Ansoff presented within his
widely recognized "Ansoff Mandala." Broadening growth of markets, development of goods, and
internationalization are the four recommendations to consider when looking for expansion.

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a. Market Penetration:

Figure 7: Products penetrating into the modern market

Due to expanded production capacity, Vw shall be likely to appeal to a wider audience in the
same market. Increasing capacity for production would lead to greater effectiveness and
efficacy, particularly in terms of controlling overhead costs. Bringing overhead costs in check will
result in low prices that could appeal to clients in the identical marketplace. Greater market
saturation will be the outcome of higher revenue and usage as well as affordable prices within
the identical market.
For greater customer permeation, Audi can increase its promotional and advertising budget.
BMW company should put effort into producing efficient marketing tools that have been relevant
to its varied target markets. the car maker's investment in sales, branding, or branding will allow
it to communicate with more consumers in a single area.

b. Market Development:

Figure 8: BMW in all over the world

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BMW should invest in study and research in order to identify possible new markets and client
segments for its products. Research and development efforts should focus on identifying and
comprehending various market backgrounds, movements, and consumer behavior patterns—as
well as how these patterns differ from those of the current markets.

For automobiles, regional expansion is an option This calls for neighborhood growth into further
towns or the same region. Such cultural variables that ought to be taken into consideration for
marketing, product modifications, and consumption patterns must be considered during the
regional expansion process. By going global, BMW can gain from commercial expansion.

c. Product Development:

Figure 9: Product Development of Amazon

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The procedure through which a business attempts to enhance its dominance in present-day
markets by launching new items is known as product creation. BMW's development of goods is
influenced by a number of elements. To give clients new and enhanced possibilities, BMW can
alter and enhance existing products. This good will consequently sell more effectively and see
more usage.BMW is often involved in development and research efforts in order to identify and
detect new customer pain areas.

d. Diversification:

A business is said to have been diversified if it creates novel products for novel markets. This
has something to do about the development and expansion of the company. Organizations like
BMW must uphold a high standard of competence, inventiveness, and rivalry if they want to
keep staying relevant in consumer markets. In an effort to boost sales, the concept of vertical
variation involves bringing new items under the umbrella of what it already sells.. It makes
it reasonable that the company's upcoming innovations and goods would fall into the same
category that encompasses all of its present-day offerings. BMW's decision to bring out and
participate in cutting-edge concepts and items that are unconnected with its current offerings is
referred to as vertical differentiation.

5. Customer Driven Strategy

The core tenets of BMW's customer-driven approach are to comprehend and satisfy customer
wants, offer customized and innovative goods, deliver great customer service, utilize digital
technology, and promote sustainability. BMW wants to develop lasting relationships with
customers, encourage customer loyalty, and maintain its position as the top luxury automaker
by putting the needs of the consumer first.

a. Segmentation:

BMW divides its consumer base into segments based on demographic characteristics like age,
gender, salary, profession, and level of education. BMW benefits from this segmentation by
better understanding the unique demands, tastes, and lifestyles of various client groups. For
instance, BMW caters to younger clients with sporty and small models like the X1 or 1 Series
while rich executives and managers are the target market for its flagship 7 Series.

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BMW also uses psychographic segmentation, which entails comprehending the perspectives,
values, interests, and preferences for life of clients. BMW uses this strategy to match its
products to the preferences and character qualities of specific client categories. For instance,
BMW's M model caters to clients looking for high-performance and thrilling driving experiences,
but its i series is targeted at those who value efficiency and cutting-edge technology and are
environmentally sensitive.

b. Targeting:

BMW uses a focused marketing strategy to concentrate their efforts on certain customer groups.
BMW's targeting is primarily focused on the following market sectors, despite the fact that its
product resonates to a wide spectrum of consumers:
Rich business leaders and professionals are the target market for BMW, especially those who
appreciate elegance, speed, and status. This section lauds BMW's luxury reputation, elegant
style, cutting-edge technology, and driving performance. Designs that include the BMW 7 Model
and BMW X7 are created expressly to meet the requirements and taste of this wealthy clientele.
High-Performance Vehicle Enthusiasts: BMW attracts clients that have a strong enthusiasm for
fast cars and engaging driving experiences. In this market, thrill-seeking driving, superb
handling, and potent engines are desired.

c. Positioning:

BMW is well-known thanks to its "Ultimate Driving Engine" positioning, which highlights the
company's dedication to providing great driving experiences. BMW cars are made with accurate
handling, quick sales, and an entertaining driving experience in mind. Customers that value the
enjoyment and exhilaration of racing will be attracted to this location.
BMW's positioning is focused on providing outstanding driving experiences, fusing efficiency
and luxury, embracing breakthrough technology, exhibiting attractive design, exuding grandeur,
and promoting sustainable transportation. Customers looking for a luxury, high-performance,
and scientifically cutting-edge automobile brand will connect with BMW thanks to this position,
which also helps it stand out from rivals.

d. Differentiation:

Handling Dynamism and Power Across its entire vehicle lineup, BMW is known for offering great
driving dynamics and performance. The brand stands out from rivals because to its emphasis
on accurate handling, sensitive steering, and potent engines. BMW cars are renowned for their
fun-to-drive nature, sporty spirit, and agility. BMW is at the cutting edge of technological
advancement in the automobile industry. To improve safety, convenience, and connectivity, the
brand is always introducing cutting-edge technology and driver-assistance systems. The iDrive,
which entertainment system, gesture control, sophisticated driver-assistance functions, and
incorporation of cutting-edge technology like augmented reality are some of the characteristics
that set BMW apart.

6. Conclusion

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BMW has established itself as a market leader in the high-end car sector thanks to its marketing
efforts. Through a strong brand identity, innovative product offerings, and effective digital
marketing initiatives, BMW has successfully engaged its target audience. BMW can further
bolster its marketing initiatives and ensure long-term success in the fiercely competitive
automotive sector by putting the suggested strategies into practice, such as adopting electric
vehicles, enhancing the customer interaction with technology, bolstering sustainability initiatives,
and extending in emerging markets.

BMW stands out in the market due to its reputation for superior racing dynamics, sales, and
design. The company stays at the forefront of automobile technology thanks to its emphasis on
breakthroughs in technology and the incorporation of cutting-edge features and connectivity
possibilities. Additionally, BMW distinguishes itself through its performance-focused M Series,
BMW i sub-brands environmentally conscious transportation solutions, and its powerful brand
legacy, which lends an air of exclusivity and prestige.

7. Reference

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Shastri, A. (n.d.). Successful Marketing Mix of BMW - 4 Ps |
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https://iide.co/case-studies/marketing-mix-of-bmw/.
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www.bmw-me.com. (n.d.). BMW All Models : Find Your BMW.

[online] Available at: https://www.bmw-me.com/en/all-
models.html.

BMW (2022). The international BMW Website | BMW.com. [online]

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Bmw.com. Available at: https://www.bmw.com/en/index.html.
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Supercars.net. (n.d.). BMW Model List; Every BMW, Every Year /

SC. [online] Available at: https://www.supercars.net/blog/all-
brands/bmw/bmw-model-list/.

www.bmwgroup-werke.com. (n.d.). BMW Group Plants. [online]

‌
Available at: https://www.bmwgroup-werke.com/en.html.
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Shastri, A. (2021). Comprehensive Marketing Strategy of BMW |

IIDE. [online] Available at:
https://iide.co/case-studies/marketing-strategy-of-bmw/.
‌

www.bmwgroup.com. (n.d.). NEW SALES AND MARKETING STRATEGY.

[online] Available at:
https://www.bmwgroup.com/en/news/general/2021/marketingstrateg
ie.html.
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