BMW in China: From Entry to Dominance
Introduction
"In the next five to 10 years, China will be the biggest market for all brands and become a big area of competition," said Christoph Stark, president and CEO of BMW Group Region China to the China Daily reporter. "The most important thing is to be highly flexible and take chances, but also be prepared for some possible downturns in the market," Stark said. "For us the most treasured thing is the brand," he concluded.
Hours later, while sitting in his study, overlooking the Shanghai skyline at night, Stark thought back to his comments earlier. As head of the China operations, it was up to him to ensure that the company preserves its market dominance. However, he realized that the
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Other than its main production lines, 3 Series, 5 Series, and 7 Series, BMW also has produced an M series line. For example, a BMW M5 is based on the 5 series, but included a modified engine and additional racing options. BMW also introduced the X Series in the mid-1990s, which was a sport utility vehicle. The Z-series is a two-door sports coupe line that was introduced in the 1990s. Other than these new product lines, BMW introduced a dramatic redesign of all its cars in the early 2000s. The concept was called “flaming surface” and it gave BMW cars an even more aggressive and sporty appearance.
In 1973, the BMW plant in South Africa was its first assembly plant established outside of Germany. Soon after this, BMW also set up plants in the U.K. In 1994, BMW set up its first production plant in the US. In 2004, BMW set up its first plant in China, in Shenyang, through a joint venture with Brilliance automobile company. The production of BMW vehicles at the China factory is intended for local sales in China. The four largest sales markets for BMW are China, Germany, the US, and the U.K. In the most recent 2012 first quarter sales report, BMW stated that the company’s China sales have increased 30% year-on-year and monthly sales numbers have already eclipsed that of the US, BMW’s second largest market. BMW’s 2012 first quarter profits rose by
Agility and economy are the most important premises in the BMW Group's worldwide production network. The group manufactures its products at 25 sites in over 13 countries on five continents: BMW automobiles are produced at 14 locations. BMW motorcycles are manufactured in Berlin, while MINI and Rolls-Royce production come from Great Britain.
With more and more countries taking part in the international trade, the world’s market is expanding in a rapid pace. How to make use of the enlarging market and remain competitive become urgent for those participants. Market diversification is a good way to take full advantage of the resource and improve the efficiency by enlarging the business scope. In addition, it can also ease the pressure of competition and reduce the cost. The report mainly discuss that Australian Holden may enter Chinese market and chooses Shanghai as the target market. The report firstly analyzes the Australian and Chinese market and briefly
Our recommendation is to use an even combination of traditional and non-traditional marketing in the next phase. BMW should use traditional marketing such as T.V. and print advertising to continue to promote their quality reputation that the Z3 was born into. They should use the brand equity the Z3 is building in the U.S. as a gateway for selling other models to Americans such as the redesigned 5 series. Non-traditional methods should remain a part of the mix to sustain the positive buzz created in the first phase and compliment their Olympic sponsorship by utilizing the excitement of the games. An example would be endorsements from popular Olympians featuring the similar characteristics shared with world class athletes and the Z3, such as speed and performance. They can also use non-traditional methods to maintain contact with consumers and put a positive spin on the lack of product availability by running a contest to win a new Z3 when they arrived. In addition, an increased global vision is needed for BWM to gain popularity worldwide and increase global market share. The second phase should consider ways that the U.S. Z3 strategy can be incorporated into other markets in the future.
The main advantage of doing business in China is the fact that China has emerged as one of the world’s strongest economic forces, driven by the shear number of
BMW Group is one of the largest and most successful multi-brand automobile manufacturers in the world, headquartered in Munich, Germany. Just like many other
A..In 1962 BMW introduced the 1500 series and was the start of a completely new model range - a compactly styled, sporty alternative to the spacious luxury saloons. The four-door saloon was the foundation for the "New Class" of BMW automobiles that were as convincing with their sporty driving performance as they were with their availability of space. The BMW 1500 was a medium-size car for the entire family - and a role model for the later vehicles of the 3 Series that was to be equally successful.
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 face though competition in US market after try to improve the situation by introduce number of new model to the core series, adjust pricing so it can compete, reorganize the dealer network and introduce new series of car to the market. Now we have a chance to focus on brand campaign call “BMW films” which is very successful campaign base on number of people who visit the web site and number of people who want more information about BMW.
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 currently the 1st most valuable car brand in the world and the 23rd most valuable brand in the world; in 2011 it was the 2nd right behind Toyota. BMW’s brand value increased 10% while Toyota’s brand value decreased by 10%. It currently own “Rolls-Royce Motor Cars” which is a British manufacturer of luxury automobiles and “MINI” which is a British automotive marque which specializes in small cars.
BMW operates three business segments namely: Automobiles, Motorcycles and Financial Services. BMW is the parent company of the Mini and Rolls-Royce car brands, and, formerly, Rover (car)/Rover. The company's slogans in English are "The Ultimate Driving Machine" and "Sheer Driving Pleasure". The company produces, and markets, a varied range of a higher end sporty cars and motorcycles. BMW has also manufactured the first passenger car running on hydrogen ready for common use, although the production figures are limited by the lack of a respective filling station net. In addition to cars and motorcycles, BMW operates an aircraft engine division under the brand name of Rolls Royce.
”Bayerische Motoren Werke AG, commonly known as BMW or BMW AG, is a German automobile, motorcycle and engine manufacturing company founded in 1910. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars,Bikes, and is the parent company of Rolls-Royce Motor Cars.
BMW (U.S) Holding Corporation is a franchise of the high-end performance based global automotive company BMW. For the first time in its history, BMW is to launch its first American made car, the BMW Z3 Roadster. Having only made cars in Germany, this time the car is to be assembled in Spartanburg, South Carolina. BMW’s objective is to expand its market share in the U.S., make the brand name more global and improve its dealer network. With this in mind, the company developed a two phases launch plan for the BMW Z3 Roadster.
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.