Marketing Plan for BMW

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University of Houston, Clear Lake *

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ECON-331

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Marketing

Date

Apr 3, 2024

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docx

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14

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   MARKETING PLAN BMW
1.1 TABLE OF CONTENTS 1.2 Executive Summary ........................................................................................................................................... 3 1.3 Introduction and Background ............................................................................................................................. 4 2.0 Macro Environment Analysis ............................................................................................................................. 5 Pest analysis ........................................................................................................................................................ 5 2.1 Politics, rules, and Regulations ..................................................................................................................... 5 2.2 Economy ........................................................................................................................................................ 5 2.3 Society and culture ........................................................................................................................................ 6 2.4 Technology .................................................................................................................................................... 6 3.0 Competition Analysis ......................................................................................................................................... 7 3.1 Introduction and Background of the primary competitor .............................................................................. 7 3.2 Primary competitor ........................................................................................................................................ 7 3.3 Summary Table ............................................................................................................................................. 7 3.4 Secondary competition .................................................................................................................................. 8 4.0 Target market analysis & Segmentation ............................................................................................................ 9 4.1 Target Market Analysis and segmentation .................................................................................................... 9 4.2 Strengths and weaknesses of current target market ....................................................................................... 9 4.2 Target market recommendations ................................................................................................................... 9 5.0 Company SWOT Analysis ............................................................................................................................... 10 5.1 Strengths of the Company ........................................................................................................................... 10 5.2 Weaknesses of the company ........................................................................................................................ 10 5.3 Opportunities of the Company .................................................................................................................... 10 5.4 Threats of the company ............................................................................................................................... 10 6.0 Marketing Mix Strategies ................................................................................................................................. 11 6.1 Product Strategy .......................................................................................................................................... 11 6.1.1 ................................................................................................................................................................... 11 6.1.2 ................................................................................................................................................................... 11 6.2 Price Strategy .............................................................................................................................................. 11 6.1.1 ................................................................................................................................................................... 11 6.1.2 ................................................................................................................................................................... 11 6.3 Promotion Strategy ...................................................................................................................................... 11 6.1.1 ................................................................................................................................................................... 11 6.1.2 ................................................................................................................................................................... 11 6.4Place Strategy ............................................................................................................................................... 12 6.1.2 ................................................................................................................................................................... 12 6.1.2 ................................................................................................................................................................... 12 7.0 Conclusion ........................................................................................................................................................ 13 1
8.0 References ........................................................................................................................................................ 14 1.2 EXECUTIVE SUMMARY This marketing plan is focused on BMW, a global leader in the luxury car industry. The plan provides an in- depth analysis of the company's position in the market, its strengths and weaknesses, and the external factors that could affect its performance. The PEST analysis identifies the macro-environmental factors that are affecting the automotive industry, including political, economic, socio-cultural, and technological factors. The analysis helps BMW to understand the external environment and how it can capitalize on opportunities and mitigate potential threats. The primary competitor analysis compares BMW with Mercedes-Benz, while the secondary competitor analysis focuses on Audi. The analysis identifies the strengths and weaknesses of each company and helps BMW understand the areas where it needs to improve to maintain its competitive advantage. The target market analysis provides insights into the consumers BMW is currently targeting and recommendations for new segments the company can target to expand its customer base. The SWOT analysis identifies BMW's internal strengths and weaknesses, as well as external opportunities and threats. Finally, the marketing mix strategies provide recommendations for BMW to improve its product, price, promotion, and place strategies. The plan recommends BMW should focus on product differentiation, introduce eco-friendly vehicles, and invest in online channels to promote its products. Overall, this marketing plan provides a comprehensive analysis of BMW's position in the market and identifies areas for improvement. By following the recommendations provided in this plan, BMW can maintain its competitive advantage and continue to grow in the luxury car industry. 2
1.3 INTRODUCTION AND BACKGROUND BMW (Bayerische Motoren Werke) is a German multinational corporation that specializes in manufacturing luxury vehicles and motorcycles. It was founded in 1916 and has its headquarters in Munich, Germany. BMW is one of the leading automotive companies in the world, known for its high-performance cars, sleek designs, and innovative technology. BMW has a reputation for excellence in the automotive industry, with a strong focus on quality, safety, and sustainability. The company operates in over 150 countries and has a workforce of over 120,000 employees. BMW also has a strong commitment to social responsibility, supporting various charitable organizations and environmental initiatives. The BMW brand is well-known for its signature kidney-shaped grilles, powerful engines, and advanced technologies. Over the years, the company has introduced several iconic models, including the BMW 3 Series, 5 Series, and 7 Series sedans, the X5 and X7 SUVs, and the Z4 and M4 sports cars. BMW's success is due in part to its dedication to innovation and investment in research and development. The company is constantly working to improve its vehicles, with a focus on sustainability and reducing emissions. BMW has also been at the forefront of developing electric and hybrid vehicles, such as the i3 and i8. (Group, n.d.) 3
2.0 MACRO ENVIRONMENT ANALYSIS PEST ANALYSIS Factor Opportunity/Threat Political Opportunity: Free trade agreements Threat: Tariffs and trade disputes Economic Opportunity: Growing luxury car market Threat: Economic recessions and downturns Sociocultural Opportunity: Shifting consumer preferences towards luxury and sustainability Threat: Aging population and changing attitudes towards car ownership Technological Opportunity: Advancements in electric and autonomous vehicle technology Threat: Increased competition from tech companies entering the automotive market (Group, n.d.) 2.1 POLITICS, RULES AND REGULATIONS Threat : Increasing regulations on emissions and fuel economy standards in many countries, including the EU and the US. As governments around the world focus on reducing greenhouse gas emissions and air pollution, they are imposing stricter regulations on automakers. This can increase BMW's costs to develop and produce more fuel-efficient and electric vehicles, and failure to comply with these regulations can result in fines and reputational damage. Opportunity : Support from governments for electric and hybrid vehicle adoption. Many governments are offering incentives and subsidies to encourage consumers to purchase electric and hybrid vehicles. This provides an opportunity for BMW to increase sales of its electric and hybrid models, such as the i3 and i8. Additionally, governments are investing in charging infrastructure and promoting the use of renewable energy sources to power these vehicles. (group, n.d.) (Group, n.d.) 2.2 ECONOMY Threat : Economic downturns and recessions can lead to decreased consumer spending and demand for luxury vehicles. In a weak economy, consumers may be more likely to prioritize essential expenses over discretionary purchases, such as luxury cars. This can result in decreased sales for BMW and reduced revenue. Opportunity : Growing luxury car market in emerging economies. As the middle class grows in emerging markets, such as China and India, there is an increasing demand for luxury goods, including high-end vehicles. BMW has already established a strong presence in these markets, and continued growth in the luxury car segment provides an opportunity for BMW to increase sales and revenue. (Group, n.d.) (Luxury Car Market Size, Share & Trends Analysis Report By Vehicle Type, By Propulsion Type (Internal Combustion Engine, Electric), By Region, And Segment Forecasts, 2023 - 2030, 2017-2021) 4
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