Bmw Analysis Essay Example

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.