Summary
The BMW Group, established in 1917, is a leading global car manufacturer. With its brands BMW, MINI, and Rolls-Royce, it holds a prominent position in the luxury car industry. The company also operates in the motorcycle sector and has a successful financial services business. The BMW Group's focus on premium segments of international automobile markets aims to achieve profitable growth and above-average returns. To reach this goal, it launched an extensive product and market offensive in 2001, expanding its product range and strengthening its global market presence.
BMW is highly regarded for its brand, which is associated with high performance, engineering excellence, and innovation. The company's brand is recognized as one of the world's best and it continues to introduce innovative products in competition with Mercedes. BMW Group manufactures various tangible products and offers numero
...us intangible financial services.
The BMW brand is supported by 11 different model series: BMW C1, BMW 1 series, BMW 3 series, BMW 5 series, BMW 6 series, BMW 7 series, BMW X3, BMW X5, BMW X6,
BMW Z4,BMW M5,andBMW M6. The company asserts that their current marketing strategies are evidence of their ability to provide customers with emotional products. This assertion is supported by their SWOT analysis,
PLC,and Research and Development efforts.
BWM's mission statement clearly states their goal of being the most successful premium manufacturer in the industry (www).
The main reason for BMW's success is their consistent marketing strategy. BMW has chosen to focus on the initial stages of the brand life cycle and has avoided moving into the later stages. They continually update and improve their product line each year, which allows them to extend the life cycle of their models by keeping
them competitive and fresh.
BMW employs a series-based branding approach for its cars, with each series having a lifespan of approximately seven years. To maintain a constant flow of fresh options, BMW introduces new series as older ones enter their decline phase. Nevertheless, BMW's product life cycles differ from the conventional three-stage model. Figure 1 illustrates the customary product life cycle featuring an initial introduction stage followed by significant growth and heightened demand in the second stage.
Afterwards, the product experiences market saturation and a decline in demand, resulting in its eventual removal from the market due to low demand. Nevertheless, BMW bypasses the complete life cycle and concentrates exclusively on the initial two stages.
The company avoids allowing its product to reach the declining and withdrawal stage by introducing a new series that showcases the novelty of the same product, even if the difference between them is not significant. Figure 1. Product life cycle
While it may be desirable for all products in a portfolio to experience peak sales simultaneously, this can cause issues. BMW recognizes the importance of ensuring that not all of its products reach maturity at the same time, as it could result in a simultaneous decline in sales.
Typically, the life cycle involves launching a car in a specific year and after a certain number of years, it reaches maturity. Introducing something new with enhanced features provides customers with an improved experience.
BMW launched the X5 in 2000 and then introduced a newer version in 2006, extending the lifecycles of three products: the 3, 5, and 7 Series saloons. This suggests that product lifecycle management is achieved through branding, as the branding strategy creates renewed consumer
interest in the same product within the same market.
The BMW model has successfully maintained its credibility in the market through the implementation of this important strategy. The Product Life Cycle system not only guarantees a steady income but also facilitates the regular introduction of new replacement products. BMW has recently expanded its portfolio with various new product launches. These products have all been established for a considerable amount of time, undergoing multiple redesigns and relaunches.
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