NAME-MANAN PATEL

ROLL NO-7627
CLASS-TYBMS C
SUBJECT-INTERNATIONAL MARKETING
COMPANY-BMW
 BMW

Profile of the company

BMW is the parent company for the much

revered, royal-class automobile maker Rolls-
Royce Motor Cars. BMW currently manufactures
and produces cars and motorcycles, with latter
being shipped under BMW Motorrad. The
company forms the trio of the luxury automobile
manufacturers popularly called as "German Big
3", with Audi and Mercedes-Benz being the
other two.

BMW International market timeline

Today's BMW AG has its origin in Rapp-

Motorenwerke GmbH, which began
producing aircraft engines in 1913. During
the First World War, Rapp supplied the air
force of the German Empire. At that time,
automobiles had not yet broken through
into the mainstream. If you wanted to travel
long distances on land, you went by train.
The BMW name stands for Bayerische
Motoren Werke GmbH. BMW was created
in 1917 from the Munich firm Rapp-
Motorenwerke. The company was
incorporated into Knorr-Bremse AG in 1920
before being refounded as BMW AG in
1922. It was the successor of Bayerische
Flugzeugwerke AG, founded in 1916. 1916 is
therefore considered BMW’s founding year.

Expanding the business

Marketing is becoming a challenge for

corporations especially with the advent of
globalisation. There is increased competition
among corporations as they compete for few
and saturated markets available for their
products. The automotive industry is a typical
case of increased competition due to
globalisation. Companies are diversifying their
markets, as well as products as a way of
gaining a competitive advantage over rivals in
the industry. For a company like BMW, its
home market in Germany and generally
Europe is already saturated. As such, moving
abroad is one marketing strategy that BMW
can employ in expanding its operations.

BMW International orientation

The dramatic increase in data and information

exchange has lead to increased
communication network complexity within the
subsystems of the powertrain itself as well as
in all other subsystems of the vehicle.
It is essential to manage this complexity
during the development process. Applying
new processes and methods such as vehicle
functions and systems orientation in a top-
down structural approach creates a powerful
support in development of innovative
powertrains.
Several technical integration examples of
powertrain functions are illustrated for the
purpose of demonstrating customer-related
advantages. Vehicle functions and systems
orientation also has significant impact on
organisational structures and cooperation
methods to achieve maximum synergies as
well as efficient vehicle communication
architectures.

BMW International strategy

Mercedes-Benz’s success factors are based on

its history and accumulation of experience.
Audi’s success is because the classic brand
revival. Compare with other brands, the brand
strategy is the key point to the success of
BMW. BMW gives a special significance for its
own brand through the implementation of
brand strategy.
Unlike Mercedes-Benz has a long history,
BMW been originally a manufacture aircraft
engine for the German air force. In the 1960s,
it was the smallest car company in Germany.
BMW rose in the world since the 1980s. But at
that time, Mercedes-Benz as the market
leader of the traditional premium luxury
motorcar stick to the luxury car market in the
world with the accumulation of traditional
brand image and market advantages, which
pose some significant obstacles to the market
penetration of BMW luxury car series. Deeply
influenced by the high technology of German,
the manufactured technology of BMW can
also compete with Mercedes-Benz. But, more
efforts need to be spared to its value and
brands compared with Benz. There are some
negative effects to BMW’s brand. At that time,
forming a good brand image is a big
challenge for BMW.

P’s of international marketing

BMW product strategy- Product:The product
strategy and mix in BMW marketing strategy can
be explained asfollows:BMW Group is primarily
focused on manufacturing high luxury two-wheel
and four-wheel automobiles for the global markets.
These products are manufactured-at certain specific
facilities across the globe, based on specific needs
of each-segment. Some of the products offer high
level of personalization to its customers,while
majority of the products are standard across
continents.The four-wheeler automobile of BMW
has always been associated with the luxury-
segment of products. This has been a constant
effort of the company to beconsidered “Premium”
by the customers. The products in the BMW
marketing mixare premium sedans, SUVs and
sports cars, which offer style, performance and a-
status symbol.The products undergo a continuous
process of technological advancement to beof
strong competition in the markets. The company
earlier relied on luxury and style as its unique
features. However, over the years, the importance
of reliability,safety and efficiency has become quite
evident in the product offerings.Advancement in
engineering and technology has been well
embraced by theBMW Group, and most of the
products rightly project the same. The company-
also has a manufacturing unit for motorcycles and
bicycles for certain markets.These products are
generally categorized as the ‘niche’ market
products.

BMW pricing strategy

The first pricing strategy that is used by the
company is value pricing. The BMW Group
often charges a premium price which is
intended to assure consumers a high quality
of the products. In this scenario, the company
makes use of the price-quality relationship to
set prices of products. This relationship
implies that high prices match with high
quality. The second strategy is prestige
pricing. This strategy makes it possible for the
company to charge prices based on customer
perception of the product and not the costs. In
this scenario, the consumers will be willing to
pay higher prices for the right image rather
than the actual value of the product.
Therefore, the brand of the product
communicates the value. Under prestige
pricing, BMW can take advantage of the
consumer perception that the brand is of
higher quality than the others in the market. It
is more of a psychological strategy that seeks
to convince consumers that there is value
added to the cost of the product. The
company makes use of this strategy to charm
the customers’ sense of value and grow their
bottom line (Kotler, Burton, Deans, Brown, &
Armstrong, 2015).