Marketing Mix of BMW analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the business & marketing strategies of BMW.
Let us start the BMW Marketing Mix:
BMW Group is primarily focused on manufacturing high luxury two-wheel and four-wheel automobiles for the global markets. These products are manufactured at certain specific facilities across the globe, based on specific needs of each segment. Some of the products offer high level of personalization to its customers, while majority of the products are standard across continents.
The four-wheeler automobile of BMW has always been associated with the luxury segment of products. This has been a constant effort of the company to be considered “Premium” by the customers. The products in the BMW marketing mix are premium sedans, SUVs and sports cars, which offer style, performance and a status symbol.
The products undergo a continuous process of technological advancement to be of strong competition in the markets. The company earlier relied on luxury and style as its unique features. However, over the years, the importance of reliability, safety and efficiency has become quite evident in the product offerings. Advancement in engineering and technology has been well embraced by the BMW Group, and most of the products rightly project the same. The company also has a manufacturing unit for motorcycles and bicycles for certain markets. These products are generally categorized as the ‘niche’ market products.
Overall, the company gives high importance to safety and luxury standards of its products. Also, innovative and fresh products are introduced at regular time intervals according to the changing needs of the customers. Recently, BMW also entered the electric and hybrid motor vehicle segment with the introduction of a new model, the BMW i8.
BMW Group has always been a premium player in the market, offering high end luxury automobiles which are considered a status symbol. The products are all priced at a ‘premium’ compared to its rivals in the category. The BMW-associated brands like Mini Cooper and Rolls-Royce also convey the same pricing strategy of the company. These brands are priced a bit higher that the standard BMW product range.
BMW establishes a luxury pricing to classify itself into the “Desirable” segment of the market. This pricing strategy in its marketing mix also ensures that the brand does not get diluted, or the positioning of the brand become unclear. Continuing this strategy is the pricing of the spares and service costs of BMW automobiles. These are also priced a bit higher than other contemporary brands.
Recently, however, BMW has adopted a dynamic pricing on its entry level vehicles for newer markets, (India, Brazil) where it offers a competitive price for its smaller models. The new 3-Series vehicles from BMW have been priced at an attractive price of ₹25 Lacs. This is a lucrative figure, enabling buyers to imagine a possibility of owning a luxury segment vehicle. Apart from this, BMW has gone one step further to increase sales, by introducing financial services to its customers.
Overall, however, the pricing has been clear to attract the premium and niche markets of automobiles. Apart from these sponsorships, BMW has also found an innovative method of promotions. The ‘April Fools’ pranks by BMW every year have been well accepted by the world, making it another strong marketing promotion event for BMW.
BMW being a world-renowned vehicle manufacturer, it has spread its manufacturing facilities to many cities. The first facility was located at Bavaria, Munich. However, with gaining newer customers across the globe, the company has now set up massive production facilities to cater to such huge volumes. Apart from its manufacturing, BMW marketing mix place strategy covers its global reach to company dealerships and even other premium car sellers
Presently, BMW has manufacturing facilities in over 10 countries, together producing more than 2430000 vehicles (2015 figures). BMW has setup its manufacturing facilities in many smaller and emerging markets recently. This has helped the company to expand its market to many smaller countries as well. Many of the manufacturing units cater to the local requirements and export considerable volumes to nearby countries.
BMW has been a world-renowned brand for over half a century. The company has been a strong advertiser of its products and other offerings. The promotional strategy as a part of its marketing mix focuses on aggressive advertising using media channels like TV, online ads, billboards, print ads etc so that it can create a continuous brand awareness. BMW has been a close sponsor for various rally racing events and other sports events. The company also promotes many celebrated sports teams and rally racers. BMW has been a constant participant in various international rally races for a long time. They have been a successful team at the F1 races on numerous occasions.
Apart from the F1, BMW has also been a strong contender at the Superbike racing category. Since the beginning of its motorcycle manufacturing in 1923, the company has been actively participating in various racing events. Apart from the participation, the company has been a major organizer of such event globally. These events have led to BMW being recognized as a fast and reliable automobile over the years. Moreover, due to the huge fan following of such racing events across the globe, BMW has found an effective way to reach out to newer markets. Hence, this conclude the BMW marketing mix.
Bayerische Motoren Werke AG or BMW as it is known around the world, is a German luxury automobile manufacturer. The company was established in 1916, with headquarters at Munich, Germany. The company started out as a motorcycle and heavy duty aircraft engines manufacturer, later diversifying into automobiles as well. Presently, BMW is a world-renowned luxury car manufacturer, with presence across the globe. The products are a symbol of class, style, luxury and reliability.
The company began with aircraft engines during the World War 1 era, but was forced to close the business after the Versailles Armistice Treaty. This, subsequently forced the company to concentrate on only passenger automobiles. The BMW Group employees over 122,000 employees across the globe, with a total revenue of €92.175 billion, generating profits of €6.396 billion. BMW is also the parent organization for other automobile brands like sports coupe manufacturer Mini Cooper and luxury car manufacturer Rolls-Royce.
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