STP Analysis Of BMW Cars

2014 Words9 Pages



PGDM 2014-16


Group Members-
1. Akshat Agrawal- DM 16202
2. Koushik Mandal- DM 16224
3. Monica Banerjee- DM 16231
4. Pranjal Kothawade- DM 16233
5. Shakti Pratap Solanki- DM 16241 BMW Motors background-
1913- Karl Friedrich Rapp (Rapp) established Rapp-Motorenwerke14 to manufacture aircraft engines in Munich, Germany
1916- Started manufacturing aircraft engines
1916- Renamed as BayerischeMotorenWerke GmbH after doing partnership with CamilloCastiglioni and Marx Friz
1917- Faced problems due to overexpansion and sold to Austrian industrialist, Franz Josef Popp
1922- Stopped
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Analyzing competitors

SWOT Analysis Strength Weakness Opportunities Threats
Audi 1. Equipped with features like light sensing headlights, traction control, electronic stability control & brake assist
2. Available in petrol and diesel variants
3. Powerful and refined engine
4. Wide range of colors to choose from
5. Dynamic styling & neat lined exteriors
. Marketing and advertising has enhanced brand image 1. The parent brand is still establishing itself across the globe especially emerging economies
2. Owing to high competition, brand market share is limited 1. Expanding automobile market and available space for competitors
2. Increasing per capita income and purchasing capability of potential customer base
3. Owned by a renowned and reputed brand name i.e. Audi, which can help in market penetration
4. More inclination of affluent customers to purchase international brand
5. Augmenting the distribution and service network in various countries 1. Increasing fuel & other costs
2. Competition from other big automobile giants
3. Competitive products offering same level features at a lesser price
4. Product innovations and frugal engineering by competitors
Mercedes Benz 1.High brand equity as one of the finest and strongest
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Powerful engine
2. Dynamic Interiors
3. Trusted brand name in quality in automobile segment
4. Similar safety features
5. Similar performance w.r.t mileage, power and torque
6. Automatic Transmission type systems in all of them
7. Similar dimension, weight and capacity
8. Similar suspensions, brakes, steering and tyres

Points of Difference:
1. BMW perceived as classy and sporty
2. Product Excellence in the luxury segment
3. Wide range of variants in the premium and luxury segments
4. Large number of distributors and service networks
5. Better features compared to competitors
6. High brand equity

Deriving the positioning statement:
BMW has been positioned as an aspirational brand for young entrepreneurs and executives and has adopted innovative strategies to reach the segment. It also developed exclusive dealerships which were used as touch points to interact with customers.
Among young professionals and corporate executives, BMW is the brand of luxury cars that redefines luxury sedan, delivers good performance with attractive interiors and dynamic exteriors at justifiable price.

Brand Mantra-
The clever slogan ‘The ultimate driving machine’ effectively captured the newly created umbrella category of luxury performance

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