Marketing Mix of BMW
Understanding 4Ps of Marketing Mix of BMW
BMW, also known as Bavarian Motor Works is a German multinational company which currently produces luxury automobiles and motorcycles, and also produced aircraft engines until 1945.
The company boasts a solid marketing mix which has remained strong all these years. The article talks about the 4Ps of Marketing Mix of BMW and the strength of its product, price, place and promotion strategies.
Let’s check out the Marketing Mix of BMW.
PRODUCT: Product Mix of BMW
BMW boasts a strong product line and offers different products and services under its Product and Service Brand line.
Product Brand: Under the product brand, BMW offers a premium range of cars and motorcycles.
BMW i: The BMW i is a sub-brand of BMW founded in 2011 to design and manufacture plug-in electric vehicles. The company launched the BMW i3 all-electric car and BMW i8 plug-in hybrid in November 2013 and June 2014 respectively.
BMW M: BMW M was initially created to facilitate BMW’s racing program and with passing time it began to supplement BMW’s vehicles portfolio with specially modified higher trim models, for which they are now most known by the general public. These M-badged cars traditionally include modified engines, transmissions, suspensions, interior trims, aerodynamics, and exterior modifications to set them apart from their counterparts.
Mini and John Cooper Works: Mini Cooper is one of the subsidiaries of BMW group and as the name suggests Mini Cooper, offers a range of small cars catering to individual needs and desires.
Rolls Royce: Rolls Royce is a luxury automobile maker and a subsidiary of BMW. Rolls Royce Phantom, Cullinan, Ghost, Wraith and Dawn are the products that Rolls Royce offers under its Brand.
BMW Motorrad: It is the motorcycle brand of BMW. BMW Motorrad has produced motorcycles since 1923 and achieved record sales for the fifth year in succession in 2015.
BMW provides a host of services under its BMW group service brand :
Drive Now: DriveNow is a carsharing service wholly owned by the automotive manufacturer BMW. DriveNow service began in Munich, Germany in June 2011. As of October 2017, DriveNow operated over 6,000 vehicles in nine European countries.
Reach Now: ReachNow is a carsharing service operated by BMW Group in Seattle, Washington, Portland, Oregon and Brooklyn, New York. It is similar to Drive Now but is focused on North American cities starting with Seattle.
Park Now: A service offered by BMW group that enables the users to find and book the parking spots close to their destination. Users can use the Park Now app and can find and book their favorite spot without any hassle.
Charge Now: The BMW Group is supporting electro-mobility with ChargeNow, by making it easy to find a public charging station.With charge now app, customers can easily locate a nearest charging point for their e-vehicle.
Price: Pricing strategy of BMW
The target audience of BMW are the upper middle class and affluent customers and price their products accordingly. BMW is a high-end luxury car and motorcycles company and uses premium pricing for its products.
Great Quality always comes at a Premium price
Premium Pricing: BMW has priced its products at a “premium” as compared to its rivals. BMW group also have Mini Cooper and Rolls Royce as their sub-brands and are priced a bit more than the standard BMW product range.
BMW is known for providing a pinnacle driving experience and has established luxury pricing to classify itself into the “Desirable” segment of the market. This pricing strategy is not just confined to the cars, the pricing of the spares and service costs of BMW automobiles are also a bit higher than other competitor brands.
Recently, BMW has started using a dynamic pricing strategy in markets like India, Brazil etc where they see a significant potential for growth. BMW offers smaller models and basic variants at competitive pricing in these markets, enabling buyers to imagine the possibility of owning a luxury segment vehicle.
BMW has a massive dealer network across the world for the sale of its automobiles. The cars are sold directly to customers through BMW showrooms. Resonating the essence of the brand of being a luxury premium brand, even the showrooms are situated at prime and posh locations in urban cities.
Promotion: Promotion Mix of BMW
Promotion plays an important role in the marketing mix of BMW, the company uses a proper mix of ATL, BTL and Digital channels for creating awareness and promoting their products.
BMW is also active in sponsoring various rally racing events and other sports events.
Class | Elegance | Technological advancement | Speed | Luxury Driving Experience
These are some common traits which are communicated by the brand through its ads and communication.
Sports personalities like Sachin Tendulkar, Alessandro Zanardi etc have been roped in by the brand to be their ambassadors.
BMW uses high-end magazines like Forbes, Fortune, Bloomberg Businessweek etc for the placement of their print ads and prime locations for putting up their hoardings and billboards.
This concludes the Marketing Mix of BMW
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