Bmw - an Emotional Brand

3144 Words13 Pages

The automobile industry has grown to be a very dynamic one in the recent years. Even though the essential use of this industry has been to satisfy the customer’s need to travel from one place to another in comfort, the constantly changing market, has slowly changed customer’s needs into wants paving way for high competition in the automobile arena. This essay gives a brief analysis on BMW, one of the leading brands in the industry and how they effectively use marketing as a tool to achieve the status they enjoy now. Even though BMW produces various automobiles including motorbikes and are into financial service sector, this essay will look into only the cars produced by the BMW.

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BMW’s chief competitors are Mercedes- Benz, GM, Toyota, and Ford. There are more companies coming into the automobile industry with the same quality but cheaper price range. That’s when BMW, launched a new 7 series of cars which is more stylish and fashion orientated than their main value of performance. This was a highly calculated risk that BMW took as this strategy deviated highly from their core values and they faced the risk of losing the loyal customer base who believed in the tagline promoting BMW as ‘the ultimate driving machine.’ When conducting a feedback from the customers in US, they found that almost 75% 5 were not interested in buying the product. Although, the new look might threaten to alienate its current customer base, it has not had any damaging impact on the company’s sales. It is still the number one car brand in the European market with a sales increase of 2.2% 8 in its home country in 2006 and almost 7%8 sales growth in the US market in 2007.

The BMW group has always been highly market driven and have been aggressive marketers of their product. They are dynamic in their promotion and innovative and are initiators in their field. By analysing their marketing mix, it will be possible to understand their current strategies and why BMW is still the market leaders in the automobile industry.

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