a-bmw-company-blog

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Blog Post 8-12

Blog Post 8: Brand Detail

BMW is one of the most recognizable car manufacturers worldwide. This is due to their high brand awareness and the pursuit of high perceived value which they achieve through creating reliable vehicles at a price that consumers are willing to pay. BMW also uses brand association with their widely known logo that is recognizable almost instantly. All of these attributes that BMW has creates Brand loyalty within its consumers. Many buyers are proud of their BMWs and some product lines like the E36 model which ran from 1990-2000 have begun to grow a cult following. The E36 model isn’t the only popular one however as BMW has begun to open new line extensions in recent years with cars like the i8/i3 as well as the x models gaining popularity. Overall BMW has been able to separate itself from most of the other car manufacturers through very well-maintained brand detail.

 Blog Post 9: Services

BMW immediately offers a few services along with the purchase of one of their vehicles. This includes vehicle checkups at your local BMW dealership. It also offers good customer service throughout the buying process and is quick to answer any post-purchase questions a customer may have. This leads to good service quality that exceeds what many consumers thought they would get. Although their services may be intangible they still leave a lasting impact on the customer often creating a positive word of mouth.

 Blog Post 10: Trends/pricing

BMW is a luxury car manufacturer and therefore its price is usually higher than some other car manufacturers. However, it is their use of premium price that gets the customers that BMW wants. Their vehicles are also priced around the same amount as their competitors. This may indicate both a sale-oriented and competitor-oriented price. BMW has a long-term goal of having a profit margin of around 8-10% and as of this year currently sits at 8.3%, a slight decrease from last years 8.5%. Most firms are profit oriented and BMW is no different, it appears as though this 8-10% profit margin is there target profit pricing goal.

 Blog Post 11: Place

BMW uses a selective distribution strategy due to their extensive reach around the world. However, to keep their luxury appeal they limit the number of dealerships to select locations. They try to place their dealerships in more upscale areas to match their brand image. BMW manufactures all of its cars itself and sells their new cars exclusively at their dealership.

BMW uses their website to allow customers to see what a personalized vehicle would look like without having to go to a local dealership to check it out. They also have online chats that allow you to speak directly to a representative that can help you find the vehicle you want.

 Blog Post 12: Promotion

BMW uses Facebook, Twitter, Pinterest, and Google+ as its main social media platforms. Its use of Facebook is to promote its new line of vehicles by giving user images as well as specs with a message that consumers as a receiver can decode. Twitter is another platform in which BMW informs consumers about new features and vehicles. Pinterest gives BMW a platform in which it can use pictures with specific backgrounds such as vacation spots to give it that luxury feel. BMW also uses billboards often times on the freeway to promote its brand to potential future buyers through the AIDA model giving them awareness with the hopes that it will lead to desire and action. Its advertising can also be found in commercials on TV where it often makes a statement about its luxury.

 Mathews, S. (2015, July 28). Analysis of BMWs Global Supply Chain Network - its production - distr... Retrieved from https://www.slideshare.net/SachinMathews1/analysis-of-bmws-global-supply-chain-network-its-production-distribution-sourcing-strategies-and-mechanisms

 A CENTURY OF FORESIGHT. (n.d.). Retrieved from https://www.bmwusa.com/next100.html

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Blog post 3-7

Post 3 Strategy:

BMW separates itself from other competitors by sticking to what they stand for. BMW focuses on making a luxury car that is fun to drive and sporty. BMW only makes Sedans, Sports Wagons, and Coupes. This keeps their look as a sports luxury car company as a Sustainable advantage while competitors like Mercedes offer Vans and or Trucks.  

BMW prices its Vehicles high due to its Product Excellence and in design. Its vehicles are known to be some of the most reliable. BMW also relies on Locational Excellence having manufacturing facilities as well as subsidiaries in 14 different countries as well as a sales network in over 140 different countries. Finally, BMWs Operational Excellence stems from the technology and robotics that are used in the production of their vehicles. Reducing time and effort needed from employees.

 Post 4 SWOT Analysis

Strengths

·       High market share in the industry

·       High customer loyalty

·       Brand recognition

Weaknesses

·       Little product differentiation

Opportunities

·       Releasing electric cars with gas prices increasing

Threats

·       Very competitive market

·       U.S. market is starting to slow down

I think BMW would greatly benefit from creating some hybrid/ electric cars for consumers who are starting to trend in that direction. Which would also diversify their product.

 Post 5 Target Market

BMW is a bit of a status symbol. They Demographically segment the wealthy as many of their cars are luxury or sporty. With little emphasis on age gender or education. BMW also uses Psychographic segmentation by using their brand recognition which encourages potential buyers to purchase a car for the lifestyle.

BMW also uses loyalty segmentation by using their product excellence the customers who do buy their cars often end up purchasing from them again in the future as well as using a four year/50,000 mile free maintenance program which attains almost 100% of the customers at their maintenance facilities for the first four years after purchase.  

Post 6 Competition

The automotive industry is an extremely high competitive market, and that includes the luxury/ sports category that BMW falls under. BMWs main competitors are Audi, Mercedes, as well as Porsche on some of the higher end models, and Volkswagen on some of the lower end models.  With the automotive industry being so competitive there is no clear leader the market share, in fact, is pretty evenly split between all the competitors. An advantage BMW does have however is a multitude of macroenvironmental factors including their high market share of motorcycles in less wealthy countries, particularly in southern Asia. By realizing the economic situation of some countries BMW offers a cheaper means of transportation.

 Post 7 Packaging

BMW doesn’t offer much when it comes to packaging the exterior of the car apart from the choice of color and a few wheel choices, but it does provide a basic number of features to change in the interior. You have the choice of upholstery as well as trim with the option to upgrade to a sportier package if you prefer some more speed.

 Flexible. Efficient. Innovative. (n.d.). Retrieved March 11, 2018, from https://www.bmwgroup.com/en/company/production.html

 Who is BMW's biggest competitor now? (2015, March 02). Retrieved March 11, 2018, from http://www.bmwblog.com/2015/03/02/who-is-bmws-biggest-competitor-now/

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Post 2:Brand

BMW is a car manufacturer created by Karl Rapp in 1916 in Germany. Its corporate headquarters is in Munich, Germany. BMW has 124,729 employees as of 2016. Its annual sales are upwards of  $116 billion and is a publically traded company.

Its goods include both cars and bikes with country culture playing a big factor in sales of both. For instance, the consumers in the U.S mainly buy their high-end sedans and consumers in many Asian countries buy their bikes as a means of transportation. Its service includes both repairs and maintenance from a dealership.

BMW also made plane engines from the year 1916-1923, and again produced them during WW2. BMW survived a bankruptcy scare during the late 50′s and early 60′s and has now grown large enough to acquire both Mini and Rolls-Royce.

BMW. (2018, February 16). Retrieved February 19, 2018, from https://en.wikipedia.org/wiki/BMW

BMW.TI: Summary for BMW. (2018, February 19). Retrieved February 19, 2018, from https://finance.yahoo.com/quote/BMW.TI?p=BMW.TI

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Post 1: Brand Name

I chose BMW as my brand for this assignment because of its worldwide impact on the transportation industry. BMW provides value to consumers by producing a high-end luxury vehicle with an expectation that the consumer is receiving a quality vehicle. BMW also provides a quality service through maintenance and repairs on all vehicles purchased directly from a dealer.