Bmw Case Study

significant improvements in the product line. BMW wanted to position itself as the "best" rather

It is important to realize the basic facts that are associated with cars and with BMW in particular, and that different demographic are attracted towards different types of car, to later understand that even though the product in the ad may be amazing but the ad itself is not. Did you know that in 2010 the number of cars in the world reached a billion (Noël)? Today’s culture is highly surrounded and based on the use of cars. They are such a prominent part of our culture today that if an alien were to visit our planet right now they might just consider cars to be the dominant form of life (The Hitchhiker 's Guide to the Galaxy). There are so many different types, and makes of cars that they can suit any personality in the world.

The wind pushed on the car, as it went down the motorway in lightning speed. I could barely hear the 370 horsepower engine roar, as the bluster of the wind out matched it. The car rode smoothly even with greater speed and handled perfectly, as forty thousand pounds’ worth of German engineering should be. I then fiddled with the radio to fill my ears with some classical music. The interior of the mighty BMW M2 Coupé included fantastic, adjustable, heated sports seats in luxurious black leather with contrast stitching in polar blue. The steering wheel was also in the luxurious black leather with the embossed M logo in the middle and the circular dials with blue needles added to the sporty nature of the car. The vehicle also included advanced technology with lots of gadgets to play around with to enhance the driving experience, which added to the car's the irresistible

Development process for building the cockpits caused a ripple effect of BMW’s quality problems in competing of luxury automobile market. Rivals from Japanese companies entering into the luxury segment was changed the standard of acceptable quality at launch. From time, cost and process cycle perspectives to elaborate the causes in-depth.

The industry for superior luxury cars is a highly exclusive one with a few automotive makers making their presence felt. The major market share is held by Porsche which is known to have formidable rivals like Benz and BMW. The SUV supercar segment is a highly evolving one where manufacturing style localities and units are the decisive forces that ultimately culminate towards the cost of the car.

Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business.

In the mid 1990’s, BMW decided to launch a new vehicle titled the BMW Z3 Roadster, its first car to be manufactured in North America. BMW wanted to capitalize on the decline of the motorcycle market with a roadster sports car that was targeted at driver excitement and “emotional fantasy” for drivers. The Z3 initiative provided the important opportunity to increase market share and build a stronger brand connection with Americans. Its success would influence how Americans related to all BMW products moving forward, shaping overall brand strength across market segments. The Z3 Roadster launch also needed to be done with the context of BMW’s redesigned 5 series and their role as the “official international automotive sponsor” of the 1996

The next aspect that we are going to analyse is the income elasticity of demand for BMW’s cars (fig2). From economic theory we know that as income increases, demand for luxurious goods will increase more than proportionately. This

Being a world-class classic sedan car M5, it targets the middle or high income people as their customers. And these target customers will not usually pay seriously attention on the price. So the purchase decision made by this group of people will always depend on the product features, quality or even just image. These target customers and up-to-date technology make M5 stay a high price.

For future development projects, Carl-Peter Foster should concentrate on BMW’s core competencies of concept design and assembly- then outsource its parts to experienced suppliers who can offer further technological knowledge. In order for BMW to introduce more models more frequently, they need to decrease the lead-time from the concept phase of the car to the release of the final product to the market.

Thesis: From 1916 to the present day BMW has earned the title of "The Ultimate Driving

The history of BMW is one of ground-breaking innovations and exceptional automobiles, including motorcycles and aircraft engines. It has a history with people of vision and of pioneering creation in the world of aviation engineering. Already we can begin to see that the BMW group is a well known and significant player in its market.

BMW marketing veers towards standardization rather than towards adaptation although it has a combination of both. The aesthetics for instance on its websites and the rest of its marketing mix are similar on all its material reflecting standardization. The classic design accords with the image of the company and does not differentiate according to specific country. So, for instance, users switching from the Taiwanese website to the American one will find the same design. The dominant colors of BMW, too - blue, black, silver and grey- remained the same regardless of country, and the pictures are the same too

BMW is one of the most widely know luxury class car manufacturers in the world. They have great branding strategy and technology but the entrance of Japanese manufacturers in the U.S. auto market creates a problem for BMW. Japanese companies have luxury cars that are lower in price and maintenance and they have the technology to compete with these German vehicles.

However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.