Marketing analysis for BMW
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Marketing Analysis for BMW
1. Market Segment
BMW focuses on the luxury/performance segment of global automobile business. BMW’s main markets are in Germany, Great Britain, Japan, Italy and France, while the United States is its critical market.
2. Customer value proposition
BMW is neither a boutique, offering one or two specialty models, or the producer of several million automobiles a year with some sold through a luxury car division. Nor is it a vast conglomerate with defused resources and management focus. BMW is a highly focused, independent company with one business- the luxury/performance automobile business. All of BMW’s resources, all of our investments and all of their talent are focused on providing the world market with 550000 automobiles, each the best in its class. BMW wants to give customer “a luxury car that provides an exhilarating driving experience.”
3. Market Size
In 1990s’, BMW’s participation in the global market resulted in 60% of its automobiles being sold outside Germany and 33% outside Europe. Unit sales statistics in Germany and the United States translated into 5.6% and .7% market shares respectively. Its total production of 553,000 cars in 1991 represented 1.7% of the world’s output.
4. Market Growth Rate
BMW’s worldwide unit sales growth was steady through the 1980s, increasing from 434,000 in 1984 to 514,000 in 1990. In the next few years, the luxury segment was projected to grow at a 3%-4% annual rate because of the overall economic improvement and a growth in the number of affluent households in the United States.
5. Marketing Strategies
A. BMW’s strategy in 1989
In late 1989, BMW unit sales fell to 65% of their 1986 level. Then shortly after his August 1989 arrival in the US, Gerlinger began to develop his immediate action plan about the composition of the product line on the low end and the position of the “price ladder” overall. “Repositioning” began with new pricing on the
Marketing Analysis for BMW
1. Market Segment
BMW focuses on the luxury/performance segment of global automobile business. BMW’s main markets are in Germany, Great Britain, Japan, Italy and France, while the United States is its critical market.
2. Customer value proposition
BMW is neither a boutique, offering one or two specialty models, or the producer of several million automobiles a year with some sold through a luxury car division. Nor is it a vast conglomerate with defused resources and management focus. BMW is a highly focused, independent company with one business- the luxury/performance automobile business. All of BMW’s resources, all of our investments and all of their talent are focused on providing the world market with 550000 automobiles, each the best in its class. BMW wants to give customer “a luxury car that provides an exhilarating driving experience.”
3. Market Size
In 1990s’, BMW’s participation in the global market resulted in 60% of its automobiles being sold outside Germany and 33% outside Europe. Unit sales statistics in Germany and the United States translated into 5.6% and .7% market shares respectively. Its total production of 553,000 cars in 1991 represented 1.7% of the world’s output.
4. Market Growth Rate
BMW’s worldwide unit sales growth was steady through the 1980s, increasing from 434,000 in 1984 to 514,000 in 1990. In the next few years, the luxury segment was projected to grow at a 3%-4% annual rate because of the overall economic improvement and a growth in the number of affluent households in the United States.
5. Marketing Strategies
A. BMW’s strategy in 1989
In late 1989, BMW unit sales fell to 65% of their 1986 level. Then shortly after his August 1989 arrival in the US, Gerlinger began to develop his immediate action plan about the composition of the product line on the low end and the position of the “price ladder” overall. “Repositioning” began with new pricing on the