Marketing And Pricing Strategy Of Bmw Group Marketing Essay

The study will look at the current concern scheme that BMW adopts and besides the hereafter scheme of BMW Group. Business scheme has been defined by Johnson, Scholes & A ; Whittington in their book “ Exploring Corporate Strategy ” as “ a scheme that is concerned with how a concern competes successfully in a peculiar market. It concerns strategic determinations about pick of merchandises, run intoing demands of clients, deriving advantage over rivals, working or making new chances etc. ”

In this undertaking, the writer will research the selling and pricing schemes of BMW Group. Besides the markets BMW mark and how BMW group as an car industry faced the recession period. The undertaking will besides look at the turning competition in the car industry and the major rivals for BMW Group.

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The selling scheme of BMW Group will include their cleavage, mark markets, selling mix and by utilizing SWOT analysis, the writer will depict the advantages and benefits it is presenting to its clients and besides its disadvantages. The pricing scheme of BMW will besides be described. BMW adopts a differentiated scheme so the writer will depict how it affects the monetary values of BMW autos.

The undertaking was chosen by the writer because of the turning competition in car industry and besides the writer ‘s like for the invention and glare of the BMW Group in car industry.


BMW ( Bayerische Motoren Werke ) in English ( Bavarian Motor Works ) Group is the taking auto maker and marketer in the universe. BMW Group is a German company and makers of cars and bikes. BMW Group is the parent company of BMW MINI and Rolls Royce auto trade names.

BMW was founded by Karl Friedrich Rapp in 1913, under the name of BFW ( Bayerische Flugzeug-Werke ) . But due to troubles of over enlargement, Rapp left and the company was owned by Franz Josef, an Austrian industrialist in 1917.

The central office of BMW Group is in Munich, Germany, the celebrated four cylinder edifice which was developed in December 1971.

BMW Group employs more than 1 million employees in more than 40 states. BMW Group has worldwide subordinates and fabrication workss in Germany, the UK, the USA, Egypt, China, South Africa, Brazil, South Africa etc. ( Some information taken from )


The concern scheme of BMW Group is based on holding a powerful trade name image. This scheme forms the foundation of the success of the BMW Group. BMW Group believes in maintain nucleus values as engineering, invention, public presentation, quality, dependability, exclusivity and client satisfaction. The company slogans of BMW Group in English i.e. “ The Ultimate Driving Machine ” and “ Sheer Driving Pleasure ” give us an overview of the selling scheme it adopts.

The scheme of BMW Group is clearly defined on the home page of the company i.e.

“ Identify possible and encouraging growing. Knowing what we represent. Acknowledging where our strengths prevarication and doing the best usage of every chance. Goals we have attained are in kernel the point of going for new challenges ” . ( )

BMW Group mission statement is defined as “ to be the most successful premium maker in the auto industry ” .

Marketing Strategy of BMW Group:

The success of any company is based on how effectual selling and advertisement scheme it adopts. BMW Group adopts a selling run of aiming its clients. In the mottos i.e. “ The Ultimate Driving Machine ” and “ Sheer Driving Pleasure ” . BMW tells its clients and other people that BMW autos give a pleasance in driving that no other auto can give.

The selling scheme of BMW besides consists of a strong advertisement scheme. WCRS has been BMW ‘s advertisement bureau since 1979 and have truly made a great trade name image for BMW by publicizing runs including celebrated histrions like James Bond, Tom Cruise etc.

BMW Brand Image:

The trade names of BMW Group include BMW, MINI Cooper and Rolls Royce. The three trade names speak for themselves and are of greatest excellence. All of them have great invention ability and the clients truly experience pleasance in drive.

This is besides BMW ‘s concern scheme i.e. to keep outstanding trade name image among clients. The great advertisement scheme of BMW Group is besides a ground for BMW ‘s great trade name image. This trade name image of BMW has been built by utilizing over 300 color advertizements. BMW Group in all advertizements have remained consistent on the substance used in the autos themselves. The three trade names of BMW Group are:

BMW trade name focuses on one thing, “ Sheer Driving Pleasure ” .

MINI is different ; extroverted, self-generated and in every regard something out of the ordinary and ideal for a society that is immature and unconventional.

In 2003, Rolls Royce became a portion of BMW Group and is the most absorbing and popular trade name among clients, “ the luxury motor auto par excellence ” .

( Information taken from )



Cleavage, Targeting and Positioning for BMW will further depict the selling scheme of BMW.

Cleavage for BMW:

BMW Group has a scheme of aiming their clients by utilizing cleavage. Geographically, BMW Group targets the countries that are more industrialised like Europe, North America, some parts of Asia and Africa i.e. China and South Africa. More than 70 % of gross revenues of BMW autos are recorded in Europe and North America.

BMW Targeting:

BMW Group targets people who are aged between 25 and 40 because these people have a successful image. By, these people have a clean modern expression and a feel good factor. BMW Group focuses on being labeled as a “ luxury auto ” and “ a foreign or international auto ” , so BMW Group does non look to aim one ethnicity or citizenship.

The purpose of BMW Group is to aim clients that have an income of 25,000 Pounds.

BMW Placement:

There is a citation on the web site of the BMW Group, which says that “ the image that BMW Group has positioned itself in exclusivity, public presentation, quality, technologically advanced manufacturer in the universe. The markets BMW place themselves are really competitory ” .

Most of the people value “ a feeling of safety ” while utilizing BMW, which places BMW Group in front of its rivals in client satisfaction.

6. Selling Mix

4 P ‘s of selling i.e. Product, Price, Promotion and Place is called the Marketing Mix. Furthermore, selling mix will be used to further research that marketing scheme of BMW.

1. Merchandise:

BMW Group wants an efficient and dynamic expression to their merchandises. The major accent of BMW Group is on merchandise invention and development.

The latest versions of BMW Group include BMW 1 Series, 3 Series, 5 Series, 6 Series and 7 Series, BMW Z4-Roadster etc. The most recent version of MINI includes the “ MINI Countryman ” .

In recent times, BMW Group has started doing smaller autos, which shows the company ‘s advanced construction. Besides because of the increasing competition in auto industry, BMW Group has to come up with some new advanced autos to vie with its rivals. In 2009, BMW Group was named as “ Greenest Premium Manufacturer ” by Clean Green Cars web site and wins awards at Fleet intelligence awards 2009 for fuel economy.

2. Monetary value:

The monetary values of BMW Group are based on a differentiated scheme. This means that they charge excess for premium quality. This difference in monetary values is due to each autos different engine size, cogwheel degrees, fuel ingestion, athleticss version.

3. Promotion:

The BMW Group uses different mottos and advertizements for the publicity of its merchandises. WCRS has been the advertisement bureau of BMW Group since 1979. The company invests a big sum of money for their autos in movies e.g. the movie “ The World Is Not Adequate ” . James Bond drove the new Z8 before the auto was launched and in “ Austin Powers 3-Goldmember ” the MINI Cooper was used. These advertizement techniques have truly helped BMW Group in their publicity of the autos. BMW Group besides promotes its autos by utilizing mottos such as “ The Ultimate Driving Machine ” and “ Sheer Driving Pleasure ” .

4. Place & A ; Distribution:

The web site of BMW Group sing Placement and Distribution say that “ BMW have 156 traders in the UK who are franchised to sell BMW autos, to boot 148 traders are franchised to sell MINI Cooper. Worldwide BMW operate in 100 different states with over 4.400 traders which are authorized to sell both new and used autos, parts and after gross revenues service merchandises ” . ( )

Pricing Strategy of BMW:

The pricing scheme that the BMW Group adopts is based on several cardinal tendencies. One most of import tendency of BMW is labeled as “ premium-tization ” .

Premium-tization tendency of BMW causes polarisation of markets. This tendency triggers the consumers to demand and pay much higher monetary values for the sensed quality.


BMW is spread outing itself in emerging markets like China, Brazil and India. The Chief executive officer of BMW Group, Norbert Reithofer has emphasized his scheme of enlargement in emerging and developing markets. In January 2010, BMW had sold 20,000 autos merely in the Chinese market, a rise of 122 per centum from old month ‘s gross revenues. In the Reithofer scheme for emerging markets, he emphasized on aiming a double-digit growing in the Chinese market for 2010. This can be achieved by enlargement of BMW fabrication workss in China and presenting new advanced autos like presenting little and mini autos for the Chinese people. ( )

Another turning market for BMW Group is the Indian market. BMW Group is taking to go the figure one place for the luxury autos in India. Mercedes-Benz is the taking luxury auto maker in the Indian market and BMW Group is finishing caput to caput with Mercedes. BMW sold a sum of 2,305 units in the first eight months of 2009. BMW Group gross revenues in the Indian market semen from the company ‘s two luxury theoretical accounts i.e. the 3-series and 5-series. BMW Group is taking at a sale of more than 3,000 units in 2010 in the Indian market which the company can carry through by aiming in-between category people of the Indian community.

The Brazilian market has been a turning market in the last decennary for most of the car makers particularly for BMW Group. The BMW Group scheme for Brazilian market is to do joint ventures with other taking auto makers in Brazil like the Chrysler Group. In making so, BMW Group can spread out itself in the Brazilian market as being the premium marketer and maker of autos.



A research was conducted in which the people who used BMW autos were asked about why was the pick of their autos BMW. Questionnaires were given to different people who used BMW autos.

About all of the people had one sentiment in common about the company i.e. they all a feel a feeling of safety and comfort while driving a BMW auto. Besides the alone trade names of BMW and its public presentation and quality were besides the grounds why they preferred BMW autos over other premium auto makers like Mercedes, Audi, Ford, and Lexus etc.


A SWOT analysis will be used to see the assorted Strengths, Weaknesses, Opportunities and Threats of the BMW Group.


Strong selling scheme.

Customers recognize the strong trade name name of BMW Group Company.

Strong trade name image i.e. BMW, MINI Cooper and Rolls Royce.

Every 2 to 3 old ages BMW introduces its new version of autos i.e. changeless invention and engineering.


There is an increasing figure of extra trim parts of BMW and MINI Cooper.

The fabrication costs of BMW autos are really high as compared to its rivals. This is besides a ground for high pricing of BMW autos.

Not a mass market company like Toyota and their volumes are little.


There is an chance for BMW Group to increase farther invention and engineering in their autos due to increasing competition in auto industry.

BMW Group should besides look to do new coaction with other auto makers i.e. presenting new trade names.

BMW Group should besides look to bring forth cheaper autos by new invention and engineering.

Expansion of the BMW Group in Asia Pacific, Asia, Africa and Australia.


Recession which has affected concerns in every portion of the universe.

To keep the same degree of invention and public presentation.

The turning competition in the car industry i.e. rivals of BMW Group include Mercedes, Audi, Jaguar, Ford, Lexus.

The net incomes of the BMW Group are Dollar dominated, so the increasing strength of Euro is another menace for the company.


Time period

BMW Group targets major markets of the universe, particularly North America and Europe, due to the industrialisation and better per capita income. The major markets of BMW Group include Germany, USA, UK, Italy, China, Spain, France and other developing states like Brazil and South Africa.

In 2009 Germany was the largest market for BMW and MINI cars. While USA was the taking market of BMW and MINI cars in 2008 and 2007.

The BMW Group sold a sum of 1,286,310 vehicles worldwide in 2009. While in 2008 the figure of gross revenues was 1,435,876 vehicles worldwide. There was a lessening of 10.4 % in gross revenues of BMW Group in 2009 compared to 2008. This lessening in gross revenues was smaller than expected.

Significant growing in gross revenues was recorded in the last one-fourth of 2009. A significant addition in gross revenues of 10.1 % in December 2009 was recorded. A sum of 123,571 BMW, MINI AND Rolls Royce cars were sold worldwide merely in the month of December 2009.

One of the members of Board of Management of BMW Group, Ian Robertson, who is besides responsible for gross revenues and selling said “ We have successful in staying the universe ‘s prima premium auto company in 2009. Despite hard economic conditions we have been steadily deriving land since April ; since September, gross revenues have been back on the growing path. We are get downing the New Year with a sense of optimism, even though we are still experiencing the effects of the planetary economic crisis. We are taking for growing in 2010. The big figure of new BMW and MINI theoretical accounts will play a major portion in this. ”

A new theoretical account of BMW 5 Series has been introduced in March 2010 and upto now it has been the new state of affairs in the auto industry. This is a positive mark for BMW Group to increase their growing in 2010.

BMW Group one time once more remained the universe ‘s prima premium auto maker despite the planetary recession. BMW Group reported strong growings in 2009 in emerging markets such as China, Brazil and India.

11. Rival OF BMW

BMW Group is the taking premium auto maker in the universe. In recent old ages BMW Group has been closely marked by its rivals. The major rivals of BMW Group include Mercedes, Audi, Lexus, Ford, Porsche, Jaguar, Honda, Alfa Romeo etc. But the two major rivals of BMW Group are Mercedes-Benz and Audi.

In this state of affairs BMW Group has to keep a scheme in which BMW Group has advantage over its rivals in the long tally.

International Gross saless of BMW & A ; Comparison of BMW, Audi and Mercedes-Benz:

The gross revenues of BMW Group decreased in the twelvemonth 2009 due to the economic recession but the lessening in gross revenues was smaller than expected. The gross revenues of the BMW Group worldwide in 2009 were 1,286,310 units. As compared to 2008, the gross revenues of the BMW Group were 1,435,876 units worldwide. BMW Group targets the European and North American markets because the states are more industrialised in these continents. As of now, China is going the biggest market for BMW Group autos. BMW Group is besides spread outing in South Africa in the African continent and in Brazil. BMW Group is besides looking to spread out their company in developing states like Pakistan, India and Bangladesh in the South Asiatic markets.

Audi and Mercedes-Benz have been the nearest to BMW Group in gross revenues in recent old ages. In Audi and Mercedes-Benz lies the greatest menace for BMW Group.

Harmonizing to the figures of the last two old ages, BMW Group has been in front of gross revenues so Audi and Mercedes-Benz. In 2008 the gross revenues of BMW Group were 1,435,876 while Audi and Mercedes-Benz had gross revenues of 1,223,506 and 1,273,013 severally. This shows that after BMW Group, Mercedes-Benz autos had the greatest gross revenues. In 2009, the gross revenues of BMW Group, Audi and Mercedes-Benz were 1,286,310, 1,145,360 and 1,093,905 severally. These figures suggest that Mercedes-Benz are diminishing in gross revenues and are left behind Audi. Now the mark of Audi is to catch BMW Group.

To counter Audi and Mercedes-Benz, BMW Group have to come up with a scheme in which they have competitory advantage over Audi and Mercedes-Benz.

BMW Group adopts a distinction scheme i.e. “ to supply quality merchandises and services to clients by bear downing an excess premium demoing high production costs. ”

BMW Group should look for ways of bettering their supply concatenation direction. By making this they can cut down the costs of their autos and could derive more advantage over their rivals.


In September 2007, BMW Group announced their new strategic way. By 2020, BMW Group intends to further beef up the place of the company by increasing volume of gross revenues to more than two million units per annum.

This mark of BMW Group of increasing its volume of production upto 2 million units per annum can be achieved by spread outing BMW autos to new markets. Like some markets in the Asiatic states such as Pakistan & A ; Bangladesh where the potency for growing is great and besides in African states like more different autos in the South African market and Nigeria who is likely in the top gasoline makers in the universe. Another enlargement for BMW Group can be in the Australian market which is a developed and industrialised economic system. But the BMW autos are non used that much as compared to other developed economic systems.

The mission statement of BMW Group is clearly defined: “ the BMW Group is the universe ‘s prima supplier of premium merchandises and premium services for single mobility ” . ( )

This means that in add-on to supplying quality services to its clients, the BMW Group will prosecute in new and profitable countries to heighten the concern. Another of import point in the mission statement was that “ BMW Group will put well in future engineerings, new vehicle constructs and open uping drive systems ” .

The BMW Group ‘s new scheme which has been given the name of Number ONE is aimed at profitableness and increasing value over the long term. The mission statement of the BMW Group besides included the elements in order to accomplish the scheme.

Endeavoring in order to make a prima place in attractive markets.

Concentrating on procuring a competitory portion of the automotive market sections.

Working in order to better the company ‘s efficiency and cut costs in operations.

( Some information taken from hypertext transfer protocol: // )


BMW Group is the taking premium auto maker and marketer in the universe. The gross revenues of BMW Group are lifting twenty-four hours by twenty-four hours. But one great menace for BMW Group is the increasing competition in the car market. BMW Group has got fiercing rivals like Audi, Mercedes-Benz being the two nearest to BMW Group in competition in the premium auto industry.

BMW Group is now seeking to aim the emerging markets of the universe. The gross revenues of BMW Group in different markets of the universe Tell that the European and the US markets are the best markets for BMW Group in footings of gross revenues. In recent old ages, nevertheless, the Chinese market has been a great attractive force for the BMW Group and gross revenues have been increasing every month for the BMW Group.

In the terminal it may be said that the BMW Group distinguishes from its clients by its great advertisement and selling runs and largely by their great trade name image. The invention of the company, variegation in new markets, technological promotion and client satisfaction are the key to BMW success in the luxury auto market.

The latest TV-Ad of BMW Group is a great description of BMW Group as an car leader in which they say, “ we merely do n’t do autos, we make joy ” . BMW Group should besides stay careful to the altering tendencies in demographics, society, thought of people and remain a diversified company.


The hereafter strategic place of BMW Group is based on maximising the net incomes of the company and to stay the premium luxury auto maker by looking into new countries of car industry.

In order to maximise net incomes of the company, BMW Group will hold to cut down costs. The mission statement of the BMW Group says that the company is seeking to cut down costs by cut downing the figure of employees and by cut downing costs on Research & A ; Development.

The writer ‘s point is to maximise the net incomes of the company, BMW Group should look to cut down the fabrication costs of its autos. The company should non look to cut down costs on Research & A ; Development.

Audi Company has a hereafter scheme that focuses on more investing in Research & A ; Development to look into new countries of the car industry.

Harmonizing to the writer, BMW Group should besides pass more investing on Research & A ; Development, and with new invention and engineering, find ways of diminishing the fabrication costs of the auto. This decrease in costs can be done by making more effectual Supply Chain Management.

A positive facet of BMW Group ‘s hereafter scheme is investing in emanation decrease engineerings. BMW Group is cognizant of the environmental jeopardies that are taking topographic point in the universe and investing in this country will take to a greater figure of clients for the company.

In future scheme, BMW Group should besides look to do coaction with other major auto makers in order to stay the leader in the car industry and farther enhance its trade name image.

BMW Group can farther widen their scheme and expression to add smaller autos like MINI Cooper and increase volumes of smaller autos that are cheaper in monetary value to the bigger autos.



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