Bmw Analysis Essay
Summary Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business. The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. Also you can read this paragraph – “Define Swott Analysis“.
With this in mind, a wide-ranging product and market offensive was initiated in 2001, which has resulted in the BMW Group expanding its product range considerably and strengthening its worldwide market position. The company’s brand is extremely strong and is associated with high performance, engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the ‘best’ in the world, and the company continues to launch a stream of innovative products as part of its battle with German peer Mercedes. BMW group is focused on fabricating a variety of tangible products, and also the group has many intangible financial services.
BMW is supported by 11 different model series which are: BMW C1, BMW 1 series, BMW 3 series, BMW 5 series, BMW 6 series, and BMW 7 series, BMW X 3, BMW X 5, BMW X 6 and the BMW Z4, BMW M5, BMW M6, and BMW Z4 M. The statement is being provided by BMW group states that the BMW offers emotional product to the customers this could be seen or felt with their current marketing strategies also with their SWOT analysis, PLC and as well as Research and Development. BMW’s mission statement is clearly defined as “To be the most successful premium manufacturer in the industry” (www. bmw. co. uk).
The main reason of BMW’s success is recognized by the development of a steady marketing policy. Analysis BMW has taken an innovative strategy of always keeping its product-line and the brand stake in the first two phases of brand life cycle and never go to the following stages of it. To make it happen they always keep evolving and upgrading their product line each coming year, thus even though their model reaches its decline period its life cycle keeps extending due to up gradation and keeping its product-line new and competitive. BMW brands it cars in series. A new series is given a period of about seven years in the arket and when it approaches the decline stage a new series is introduced to replace it. This keeps the series new in the market. Analysis BMW newness of the product life cycles does not follow the normal product life cycle of three stages. A normal product life cycles as given in Figure 1 shows that a product will be introduced in the market at the first stage. Then the second stage will be marked by increased demand of the product, which leads to high growth. After this there is the period of market saturation and decline in the demand of the product in the market.
This eventually culminates to withdrawal of the product due to low demand. BMW does not allow its product to go through this life cycle. It concentrates on the first two stages. Instead of allowing its product to go to the declining and withdrawal stage, the company comes up with another series that reflects the newness of the same product even though the difference between the two is not that large. Figure 1. Product life cycle Figure 1. Product life cycle Although it is attractive to have all the products within a portfolio at the peak of their sales at the same time, this does create problems.
BMW knows the importance of making sure that not all of its products are at maturity at once, as this might result in the products beginning to decline at the same time normally the life cycle has a particular year when the car lunches and after certain years it on matured level where the company has to get something new in that series to lunch where customers can enjoy the product to the fullest and with few new features in the car. For example, BMW X5 lunched at 2000 and then company lunched the higher or new version of X5 in 2006.
It is clear that BMW has spread over a period of time the lifecycles of three products. These are the 3, 5, and 7 Series saloons. It can be assumed that management of the product life cycle happens through branding. The branding strategy is therefore used to make a new consumer appeal for the same product in the same market. This has been an important strategy that has helped the BMW model from losing its credibility in the market. Conclusion This Product Life Cycle system not only helps to ensure a more constant income, but also allows for the development of replacement products on a consistent basis.
BMW has also been expanding its portfolio recently and this can be seen by the presence of some new product launches in the last few years. The above products are all fairly settled. Many of them have been being manufactured for many years now with several re-designs and re-launches. Reference Profile BMW. (2008). Retrieved from http://www. innovationleaders. net/bmw_company_profile. html http://www. bmw. co. uk Macmillan H. & Tampoe M. (May 2000). Strategic Management. Meeting the real needs of customers. (p. 173). Retrieved from http://www. oup. com