Competitive Strategy: Competitive Strategy Of The BMW Company

“The World of Ducati”: Minoli wanted to develop a global brand “The World of Ducati” that could appeal to a broader spectrum of customers. Minoli’s initiative was “moving from the mechanical to entertainment”. Supply of product that is differentiated [Grant p 222]

The quality of engineering and the safety are other essential points that the marketing plan should include. These parameters are important for both age groups. Having certain extra safety features on the motorcycles can contribute to the need of the younger buyers. Because there funds are low there has to be consideration toward what is affordable. There are possibilities that parents might help to purchase. Within seeing the extra safety features on the car. Quality of engineering is important to the life of the motorcycle. Indeed this will assure the long lifespan and the quality put into all products sold by this organization.

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 motorcycle industry is growing annually and sales on CruiseThorr at Thorr Motorcycles are decreasing. This is largely due to its target customers, 35 to 50 yrs old, growing older and no longer being interested in the lifestyle that CruiserThorr symbolizes. Other factors include younger customers, in the age group of 21 to 35 yrs old, preferring low-cost motorcycles as they do not have large disposable incomes. Younger customers do not identify with CruiserThorr's lifestyle image and competitors are eating into CruiserThorr's market share. In order to reduce this trend, the following marketing

The BMW group, founded in 1916, is one of the most successful cars and motorcycles manufacturers in the world with its 3 premium brands BMW, MINI, and Rolls-Royce. (Appendix 1, an Overview of the BMW Group)

Marketing and Sales represents Ducati’s most significant growth opportunities because their brand management strategy advances the Ducati name into the consciousness of their markets. In addition to motorcycles, Ducati extends the brand by selling accessories and apparel. For sure, Ducati owners will buy these products but perhaps more importantly, the aspirational aspect of the brand drives people to buy Ducati-branded items even if they don’t own the bike. This behavior is seen with the Harley-Davidson brand: many people wear H-D clothing and

They have brands and models of cars to appeal to every kind of demographic group, and simply cater for the needs and wants of consumers.
• Ford is particularly successful in their sponsorships, advertising and other forms of marketing. Ford is currently sponsoring the football Champions League, with “Destination Football” slogan (Bloomberg, 2005).
• The current research and development activities of Ford allow them to be pioneers in certain production technologies (Kochan, 2001).
Weaknesses

• In an attempt to attract younger generations to purchase Jaguar cars, Ford introduced “baby Jag”. The effects of such an action proved to be negative in damaging Jaguar’s reputation, and is a weakness for Ford (Kerwin, 2002)
• Quality assurance needs to be more of a focal point for Ford to avoid recalling cars and expensive repair operations. (Kochan, 2001)
• In 2002, Ford and Bridgestone experienced a faulty tyre scandal which caused a two billion dollar loss (BBC, January 2002). 
Opportunities

• To develop vehicles that uses other forms of energy than petrol and diesel and to become pioneers in this area.
• The numbers of car owners who replace their old models with new ones are on the increase (Mintel, 2004). 
• Demand for cars by women drivers is on the increase and so is the overall demand for cars (Key Note, 2005).
Threats

• Further increases in gasoline prices, and eventually the world supply of gasoline finishing.
• To become

BMW’s success lies in its strong sense of identity which is tied to the experience of driving the machine. BMW is considered as one of the leading producers of luxury & state of the art vehicles. BMW the world no.1 premium car company who owns Rolls Royce & MINI have established itself as a brand having conformance in brand image – status and driving pleasure –across the world.

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.

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.

1) The buyer decision process of traditional Porsche customers relies on the motivations that determine these people to select this brand. Their purchasing decision process is based on the exclusivity of the brand that is connected with the car owner. In their opinion, by purchasing a Porsche, traditional customers purchase the exclusivity and luxury associated with the brand. These customers want to purchase a car that reflects their social status and their financial power. In addition to this, they are not interested in the utility of the car, but in the characteristics that differentiate it from utility cars. These traditional buyers are rather interested in their feeling while driving a Porsche in comparison with the size, price, or fuel economy of the car.

This marketing report aims to examine and explain the marketing strategies of BMW , In this report I will be focusing on:

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.

BMW created the lower-priced 1 Series and X3 SUV to target the “modern mainstream,” a group who are