Our activities will remain firmly focused on the premium segments of the international automobile markets. Our mission statement up to the year 2020 is clearly defined: the BMW Group is the world’s leading provider of premium products and premium services for individual mobility.” (BMW Group, Strategy, n.d.). BMW Group operates in more than 150 countries and operates 30 manufacturing facilities in 14 countries. The BMW Group currently has sales subsidiaries in the following countries: Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland,
With its four brands, the BMW group is competing in the industry of luxury automotive and motorcycles. This industry is performing well ; while the motorcycle market has been relatively flat these last years, the automotive market shows a positive increase with a strong growth in China (+17.4%) and Europe (+6.6%). In this industry, BMW faces the competition of two major rivals, Audi and Mercedes-Benz. As these three groups represent an important part of the market, competition is tough, where each one pushes its limits to be the leader. We can analyze the five main competitive forces presented by the Porter’s model as follow.
THE BMW MARKETING CONCEPT Background In 1913, a company named Bayerische Motoren Werke (BMW) was established in Germany who used to build military aircrafts and aircraft engines. With the passage of time, the BMW group also began to produce automobiles, motorcycles, etc. The company has achieved a strong market presence in over hundred countries like United States, United Kingdom, Canada, India, Korea, etc. At present, the company has positioned itself in the premium segments with three world’s famous brands i.e. BMW, Mini and Rolls-Royce.
Critically evaluate the 2 models, identifying their strengths and limitations On the basis of the above analysis of the models and their applications in two car companies that are BMW and Audi, a number of weaknesses and strengths have come into the forefront. The analysis of BMW on the basis of industry life cycle suggests that it is in maturity phase and that is followed by decline phase. But, in practical terms, if it is taken into consideration then it is found out that BMW is in its growth phase. As compared to other brand, the market share of BMW is not huge because of its price range. Same is the case with the Audi.
Consequence: this could be time consuming as adjustments are to done in design, if incase the supplier comes across some problems in the commercial production phase. Sometime the required tools and material might be unavailable or they are unable to supply. The following things can be done to improve the launch quality at BMW: i) Reducing down the space between the prototype and production process by using similar tools and materials. This would cut cost and time. ii) Sudden switch-over approaches as well as cross- training their worker.
Luxury brands are those brands that pursue to distinct their clients from the crowd, by signifying wealth and status. Luxury brands or elevated style brands are the archetypal rank providers because they are not ever bought for their useful use. Luxury brands are extremely distinct. A luxury brand or impact brand is a brand for that a bulk of its produce is luxury goods. It could additionally contain precise brands whose terms are associated alongside luxury, elevated worth, or elevated quality, nevertheless insufficient, if each, of their goods is presently believed luxury good.
Millward Brown, a leading market research firm that publishes annual rankings, estimates that BMW is worth $26.3 billion and Mercedes is worth $21.8 billion. If either of these figures reflected in the brands’ accounts, it would dwarf any other individual asset. (Per International Financial Reporting Standards, brands are only recognized on the balance sheet in the event of a disposal, since the value can easily be determined via the goodwill embedded in an
Although a part of this luxury market consists of spending form the local consumers, but the factor which most gives the positive boost to this market in any country or region is the spending in this number of tourists coming from the other regions and spending on it. The personalized one-to-one touch and the customizable marketing to each individuals’ needs, seduces the capable customers who become prone to this
These industries are expected to grow by 30-35% in the next few coming years. People in smaller towns have strong purchasing power to buy luxury vehicles tending the automotive industry to increase by 20-25% in the next few coming years. The industries/ products which the luxury market includes apparel and accessories, pens, home decor, watches, wines and spirits, jewelry, travel & tourism, fine dining and hotels, yachts, fine art, automobiles. It has been said that High Income Consumers spend more than 40% of their monthly income on the world’s most renowned luxury brands where as the Middle Income Consumers spend roughly around 8-10% of their income on luxury products. Consumers spending on luxury products around the globe have been rising tremendously which is expected to cross $40 trillion by
What is more, some luxury hotels include even art rooms, fitness gyms, business centers and ballrooms. The market of luxury resorts has witnessed the fastest growth in the consumer retail segment, being therefore responsible for the growth of tourism worldwide. What represents the stimulus in the luxury hotel market is the increasing number of consumers with disposable incomes. From a geographical point of view the market is driven the by the countries with an emerging sense of luxury tourism, such as Turkey, India, Dubai and China. Key players indicate that luxury hotel markets are in strong correlation with countries where new businesses are rising.