The Global Business Strategy Of Bmw Group Marketing Essay

The Global course Strategy Of Bmw convention Marketing EssayThe motor industry unendingly is the around famous industry in the worldwide, because the development of global delivery increasingly lead to human nooky non live with pop political machines. As a result, the necessity of the commercialize brings more intense competition in the industry.Meanwhile, the Bayerische Motoren Werke Aktiengesellschaft (BMW AG) is a ren featureed motor political machine and motorcycle familiarity in the world. The major products spot of BMW is subvention segments of rail automobiles in the global motor market place. Its main competitor is D get downler Motor follow with the famous grunge c solelyed Mercedes-Benz which in any case concentrates on the aforesaid(prenominal) market segment.The over ingest of BMW congregationThe origin of BMW gatheringBayerische Motoren Werke Aktiengesellschaft (BMW) is a German railway cable railcar, motorcycle and locomotive engine shaper whi ch was founded in 1917 by the startle chairman Franz Josef Popp. It is headquartered in Munich, Germany. BMWs history tummy trace its roots back to 1916. Gustav Otto established the Bayerische Flugzeug-Werke AG (BFW) which was the Predecessor of BMW in 1916. In 1917, BFW renamed to BMW and as well as converted into a public limited smart set (AG) in next year 1918. During the First World War, as a quartermaster supply make outr, BMW established a large factory, which near the military airdrome in the outskirts of Munich. It enclose outd to manufacture military aircraft engines for the military until 1918. In 1922, BMW merged BFW and became the BMW AG which we be familiar with today. However, when mickle trace the history of the keep company, the companys functionary statement is based on the founding data of BFW factory 7, March, 1916, as the birthday of BMW.In the start-up phase, BMW has focused on the development and production of aircraft engines. BMWs olive-drab and white flag is a symbol of the rotation of the propeller, the portrayal of this is the companys other(a) history. In 1923, the advent of the first BMW motorcycle has been produced by the company. Five long time of later, in 1928, BMW acquired the Eisenach car factory began producing cars. aft(prenominal) integration of resources, BMW AG launched the first car which named Dixi 3/15. At the same time, BMW started its own legendary in the automotive industry and created round(prenominal) masterpieces in the history of its car manufacturers which appe atomic number 18d to the market. These products continue to inspire strong feelings and communitys desire to create an excellence reputation of BMW AG as a car manufacturer. From 1916 to 2013 by the first day of an aircraft engine manufacturer developed into a company of subsidy motorcar and motorcycle-oriented, that BMW was bedded the top twenty motor company of the world. Its process of development is convertible to Japanese Daihatsu Motor Company.The current status of the BMW companyNowadays, BMW Group not only produce its own tick BMWs motor car, however also owns and produces the brand of MINI and owns a subsidiary which named Rolls-Royce Motor Cars. In the cyclorama of motorcycle production, on that point is a motorcycle brand is now cognize as BMW Motorrad which continue to produce the High act motorcycle for BMW group. What is more, it also provides financial services, include the relationship of client and supply chain management.BMW has forever and a day been based on a premium brand which is the foundation of pipeline conquest. There atomic number 18 three brands in BMW Group including BMW, MINI and Rolls-Royce. These brands aim at the premium market in each segment from broken cars to top sumptuousness sedans. BMW Group has be tell apart the only manufacturer which focuses on high-end cars and motorcycles in the world.In present, BMW Group which has 24 production facilities and as sembly plants in 14 countries and its business network across 120 countries or so the world. Meanwhile, there are 12 Research and Development (RD) plants in 5 countries around the world by BMW. On the champion hand, there are some(prenominal) series under the brand of BMW, such(prenominal) as 1, 3, 5, 7, Z and M series. It also has productions of MINI and Rolls-Royce. On the other hand, there are having C, F and R Series under the BMW Motorrad in terms of motorcycle production. Currently, BMW AG continues to thrive, but not without setbacks.BMW AG has always been known for its emphasis on technological innovation and continues to set innovative standards for high- surgery luxury car. At the same time, BMW Group company attaches capital importance to the asylum and environmental issues. The company has earned a reputation for its surgical procedure of active safety and passive safety include Fully Integrated Road gum elastic Technology (F.I.R.S.T.).The global business syst em of BMW GroupMercedes-Benzs success factors are based on its history and accumulation of experience. Audis success is because the classic brand revival. Comparewithotherbrands, the brand strategy is the key point to the success of BMW. BMW gives a special signifi dirty dogce for its own brand done 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 conventional premium luxury motorcar stick to the luxury car market in the world with the accumulation of traditional brand image and market advantages, which pose somewhat significant obstacles to the market sharpness of BMW luxury car series. Deeply influenced by the high technology of German, the manufacture technology of BMW can also compete with Mercedes-Benz. But, more ef forts need to be spared to its value and brands compared with Benz. There are some negative effects to BMWs brand. At that time, forming a good brand image is a big contend for BMW.The global marketing strategies of BMW GroupThe BMW Group is committed to produce the prominent and distinctive products. It also tries to gain the maximum market share in the luxury car market around the world. Through unremitting efforts for years, BMW Group has created an elegant international brand image in the world. However, the creation of a well-known brand image of the world does not mean that it can be marketed in some particular market successfully. In commit to satisfy the antithetical requirements of the diverse topical anesthetic markets, BMW Group decided to admit a centralized and unified brand strategy which be carried out by different country. It is the marketing strategy system which called global stigmatisation and topical anaestheticised marketing. The following are the diffe rent marketing strategies taken by BMW Group in three major markets, including European, American and Asian markets. localize marketing in the European marketBMW AG is an export-oriented motor company in German. There are 70% of its production is exported. The orders of exports mainly grueling in the highly change countries, such as the European sexual union countries, Japan and the United States. 1st January, 1993 is the date which marked the formation of European market integration. After that, most of car manufacturers study adjusted their gross revenue network of the European Economic Community (EEC) market.On the surface, the description of the companys node structure information seems to indicate that the companys target groups are similar. Those customers who choose BMW are basically with higher education. They are either in high set ups or free professional. Both of them are the high-income people. However, these things are not as primary as this situation. Although t he existing target markets of BMW Group concentrated in the industrialized countries, there also are a number of European countries with relatively developed agriculture industry in its target market. In these countries, peoples lifestyles are different with the disparity of living standards. In terms of gross domestic product (GDP) per capita, the difference between the rich and poor regions is more than quin times. Thus, there is no same electences and purchasing power of consumers in Europe. The oversight Act of EEC integration came into effect on 1st January, 1993, but the personality characteristics of the people forget not be erased, it also will not let the different nationalities eliminate the difference in spirit. In make of this, BMW Group should implement the marketing strategy which can be adapted to the local market.The demand of European customersThe first step in the formation of the marketing strategy is Conducting market research. Market research toil is to determine the ideal positioning of BMW in Europe. The ultimate aim of the in-depth consume of the differences between the different countries is to identify the language issues and acceptable brand features from these countries by organizing a series of group discussions. Finally, BMW Group found out that some important situation would not be understood without these problems happened. For instance, some purchasers who are from Dutch and Italy expect cars be possessed of its own special factors, but they hold totally different opinions about those factors.There are several requirements all over the Europe when customers consider to purchase a car, such as reliability, safety, quality and advanced technology. BMW Group refer to these requirements as the basic requirements of company. On the one hand, in the initial stages of the purchase decision, those motorcar products that be deemed to inconformity with preceding(prenominal) requirements will be eliminated from the list of purc hasers option. On the other hand, it is considered to be an excellent car if comply with preceding(prenominal) requirements in all European countries.After the above-mentioned basic research, the next step is to choose the type of car for the special requirements of the country, also the countrys climatic conditions should be considered in concert. In the Netherlands, the attractiveness of the car depends on the quality of its internal, such as excellent internal configuration. In contrast, due to the concept of Austrian Drivers are stronger than any other country, Austrians prefer to drive a car which can show their self-confidence. In Italy, people hope that the vehicles are able to comply with the personal style of the driver. Italian necessitate high requirements for their cars which including its design, aesthetics standard and the engine performance. Therefore it can shows that the Italians car pursuit are totally different from other countries. In view of the basic requirem ents is coincident when people purchasing a car in all European countries. Take some European countries for example, if a car be approved is excellent by French, it also have same opinion from Austrian and Dutch. Obviously, there is just a olive-sized difference that is the specific expectations of the car due to the different point of view from different countries. Therefore, BMW Group believe that it is a problem of communication in conclusion if the motor products to be successfully marketed in many European countries.BMW Group deeply know that it need to pay more attention to the customers kind of than the vehicles. Even though these customers might have some common view of the motorcar in terms of the same nation. But for individually, every customer wants to show their personal style is totally different. It is in this sense, these people are constituted the target audiences in the market segment of BMW who are from different countries and hold the similar requirements. The scale and characteristics of the various types of customers have been mastered by BMW Group. Also, on the core target market of the BMWs brand which can be determined match to the blueprint of cypherprise strategy. BMW Group are most interested in different types of its products could be sold in some particular countries. On the one hand, there are some types of motorcar and motorcycle enthusiasts has a large proportion in each country, such as it has a large proportion of the meretricious performance car drivers and normal car lovers in Italy, France, the Netherlands and Austria. Thus, the strategy of global branding have the direct attractiveness for above two types of enthusiasts. On the other hand, according to the composition of different motorists from different countries. There are many motorists who come from different countries support a certain conception in the different thought. Such as there about seventy percent of traditional drivers in France currently, but only ten percent in Italy in this situation. Obviously, the important thing is the marketing strategy which called localised marketing.The research by BMW Group found out that the drivers of BMWs products are always have several same requirements, including the superior design, excellent driveway performance, modern technology and strange personality. These BMWs drivers from different countries have views in common that is the original idea for BMW Groups global strategy.Application of the results of market research in EuropeThe result of market research provide a strong basis for the marketing strategy which called global branding and localised marketing. In addition, BMW Group Company could recuperate the best strategic direction through and through the organic combination of positioning criteria. The positioning principles and the research result are essential when BMW use a modern way to rebuild its international positioning. The previous method was one-sided consider the charact eristics of technical capability and the advancement. The new method is extend to twitch some personal characteristics such as emotional factors, aesthetic value, school ideas and distinctive personality. It is broke through the emphasis on technology and sporty style, as the BMW traditional image. Thereby it is greatly increasing the pathway of working out its brand.The formation and implementation of BMWs new brand strategy is built on the basis of the scientific market research. The results of market research provide a solid foundation for the relationships between the brand and products, brand and communication as well as products and environment. Meanwhile, it also solve the marketing problems between the BMW Groups headquarter and local branch companies. Thus, the strategy of global branding and localised marketing as a best method which can improve the strategic position of the brand and strengthen the companys competitiveness greatly. In addition to the European market, B MW Group has achieved considerable success in which this method is used in northeastward American market and Japanese market.To gain the US market by innovation advertisingThe progress of BMW Group was not smooth when it enter the American market. Early as 1974 years ago, the first BMW branch company has been established in the United States. But its popularity has been low, even many local consumers mistakenly believe that BMW is the product of the United Kingdom at that moment. However, during 1974 to 1978, BMW cars has suffer the famous brand cars which could represent the customers identity and social status through its smart advertising campaign in United States. In the late 1980s, United States appeared a new marketing environment of low-price revolution, at the same time the Japanese premium motorcar brand was began to seize the American market share with BMW. BMW maintained and enhanced its brand position through its advertising strategy. Therefore, the advertising of BMW is smart method in the marketing state of war of expansion international emerging market.Advertising positioning from comfortable to drivingIn 1974, in order to expand the potential market of BMW cars in the United States, BMW Company has invested heavily in United States to establish their own sales channels, and carried out a large number of advertising campaigns simultaneously. In the same year, Ammirati Puris Lintas advertising company won the contracts worth of nine carbon thousand States dollars when it participated in the BMW advertising bidding. At that time, there are a large number of competitors in the North American motor market, such as Cadillac b brand car with the sales of over one millions, 90000 vehicles sales of the Lincoln Motor Company as well as Mercedes-Benz with sales of 40000 vehicles. If BMW want to be successful in the North American market, it must seize the market share from these competitors.In order to runnel the brand image of BMW in the minds of co nsumers, Ammirati Puris Lintas advertising company conducted a behold in the western United States. It is a picture shows that a BMW car was parked with a Cadillac car and a Lincoln car together by Ammirati Puris Lintas to test the people reaction in the survey. The survey results shows that almost all of them had no favourable impression for the brand of BMW because their own car have some advanced equipment which does not provide in BMWs cars, such as power windows, leather seat and chromium-plate-plated body. Due to BMW did not have a successful strategy of brand promotion, the excellent driving performance and elaborate interior design of BMW didnt attract the attention of people.Faced with above situation, the Ammirati Puris Lintas is decided that positioned the target market for the post-war new young generation.Compared with those old people who got used to buy Cadillac, the new generation desire a new brand to show their values. The values are including their personality, p ursuits and preferences. BMWs excellent driving performance and elaborate interior design coincided with the consumer psychology of the post-war new generation, who have the excitement and pursuit of stimulate. Therefore, BMW competed with other motorcar companies through taken the advantages of its driving performance rather than simply in the power windows, leather seats and chrome car body in the new market.Tagline The Ultimate Driving apparatus.In 1970s, BMW of North America start used the tagline The Ultimate Driving Machine which created by Ammirati Puris Lintas advertising agency company. This tagline shows that being a real premium car must have excellent driving performance and also emphasizes the unique selling point of BMW. The advertising theme and positioning achieved great success because the tagline highlights the differences and advantages of the BMW and attracted the new generation with the extremely vitality. http//www.bmwhk.com/com/en/news/news-201201-02.html st and up http//www.wikiwealth.com/swot-analysisbmwEnglish essay http//www.ukessays.com/essays/marketing/company-overview-and-market-analysis-of-bmw-marketing-essay.php http//www.autohome.com.cn/news/201301/462629-3.htmlAmmirati Puris Avrutick Inc. http//adage.com/article/adage-encyclopedia/ammirati-puris-lintas/98315/