An Over View Of The Bmw Group Car Company Marketing Essay

I have chosen this company because it has worldwide manufacturing plants. The production of BMW automobiles are done at 14 locations. The Great Britain is the home of MINI and Rolls-Royce production. BMW motorcycles are manufactured in Berlin, Husquvarna motorcycles in Italy.

As I mentioned above, it has three business segments, but in this report, I would be concentrating on Automobiles and would also reveal their marketing. I am also interested in this report because of its portfolio consists of the three finest brands BMW, MINI, and Rolls-Royce. BMW group often provides emotional products to us which fulfill our wish. We can see its current marketing strategies with SWOT analysis. Steady marketing policy and differentiated strategy, is the main reason its success. BMW ensures to have full satisfaction to their customers

.”We offer our customers emotional products, which through the strength of the brand and the substance of the product fulfil the customer’s wish for individualisation and differentiations”. (Reference- Case, Page 741). BMW’s mission statement is clearly defined as “To be the most successful premium manufacturer in the industry”, (Reference- www.bmw.co.uk)..bmw.co.uk)..bmw.co.uk).

BACKGROUND

Position of BMW in the market is highly competitive because of other automobile manufacturers. They also produce cars of a similar quality, price, and image. At this age of technological development, BMW has maintained its constant image in the market. To achieve the aim, this group uses three steps to targeting which are market segmentation, target choice; product positioning. We can get knowledge about its strategies, historical development through websites, television, press, magazine, trade fairs, motor shows, and etc.Its image has still remained as the world’s most successful premium car brand.

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In 2006, 5.2%level increase in the sales because 11, 85,088 units sold in 2006 which hit the record of 2005. More than half (68%) sales of BMW group are in these three countries Italy, USA and Germany. Per-capita incomes of these countries are more than other countries and they have heavily industrialized locations. BMW target the market according to geographic, demographic, behavioral, socioeconomic, and beneficial characteristics of society. Customers (30-50years old) like to buy a car which is of modern and sports look and benefits like superiority, performance, reliability & quality are required for them.

BMW has achieved image over the years by providing customers superiority, performance, technologically advanced, quality automobile producer. Manufacturers of Jaguar, Audi, Mercedes, Range Rover, Porsche etc are competitors of BMW group. These companies are also use different market strategy to produce vital range of cars and maintained their image in the market by providing different brand to the customers’ .But the impression of the BMW leave a positive mark upon the public due to good public relation and innovative advertising demonstration.

E.g. Jaguar is seen as a luxury, reliable and quality producer that BMW does but on the other hand Alfa Romeo is renowned for being stylish and performance breed but unreliable car as per the research.

Because of these market strategies, sales of this recognized brand are increasing continuously and it has gained reputation in the market in which BMW operates has being seen as good and loyal customers. BMW Group’s employees often use the most advanced methods, new technologies and progressive ideas into innovations for vehicles and traffic systems.

In the year 2005, sales of BMW, MINI and Rolls-Royce cars rose by 10.9% if we compared it with first ten months of the previous year. BMW Group delivered 33,325 more automobiles to customers than in the comparable period last year, with 1,130,439 units sold and that number of units was 1,097,114 in the last year.

In the first quarter 2006, the change in earnings was also affected by “base effect” of euro 375 million that was non-cash gain arising on the partial settlement of the exchangeable bond on shares in the British aero engine manufacturer, Rolls-Royce plc. High raw material prices, high start-up costs for new models and adverse currency factors influenced the Performance in the first quarter 2007. BMW has gained success in the financial year 2006 by achieving growth in sales, revenues and earnings despite the difficult conditions facing the worldwide automobile industry. Sales of vehicles are increased by 3.5% to 1,373,970 units (2005: 1,327,992 units).The profit before tax rose by 25.5% to euro 4,124 million (2005: euro 3,287 million). To reach a new all-time high level of euro 2,874 million (2005: euro 2,239 million), the net profit climbed by 28.4% and improvement in Group revenues is 5.0% to euro 48,999 million (2005: euro 46,656 million) . Sharp increase in profit and positive outlook comparatively to the previous year resulted in a sharp dividend increase. 

 The numbers of sales automobiles are increased in 2008 by 0.7% if we compared with the same period last year and it rose by 8,492 vehicles to 1,226,990 units (prev.yr.: 1,218,498). Increments of sales are also in their upward trend in nov.2009. Number of vehicles delivered by the company is 11.5% more than the last year in the same month at 107,686 (prev. yr. 96,609) units. BMW Group was able to improve its sales figures on almost all continents in the month under review.

Balance sheet:-

3. Table of absolute and ratio analysis:-

Ratio Analysis:-

3.The interpretation and explanation:-

4. The impact of current events since the last balance sheet date:-

BMW Group achieved record earnings in 2006.The adverse impact for the BMW Group from the weak US dollar and Japanese yen in the last financial year alone totalled euro 666 million. Premium products are provided worldwide with quality, safety, and processes by BMW Group. As a corporation, we take responsibility for society wherever we are. Process of production is done by proper planning and Careful use of resources is the guiding principle behind all production planning. BMW Group will emerge from this crisis with the launching of new, highly efficient and dynamic models, like the BMW X1, the 5 Series GT and the new BMW 5 Series. Profitability target for 2012 of a return on sales of

Eight to ten percent in the automobile business remains unchanged.

5. Conclusion:-BMW group take responsibility for society with flexibility. It provides high production quality according to demand of the customers and market requirements across the world. Aim of this group is to become an active, fair partner worldwide. Smart linking of knowledge beyond the boundaries of a plant as well as the special commitment, responsibility, and identification of BMW employees enable production to begin right on time – with high product quality.

This group will emerge from the crises because of its efficiency, product quality, strong power, more open and more focused on customers.

we should ready to face further economic downturns and challenges to the international financial system in the future.