Bmw Marketing Strategy
BMW
11
BMW
Marketing Analyzing
Mohammad Farmand
* SBUs (Strategic Business Unit)
“The Munich-based company manufactures vehicles under several brand names, including BMW, Mini and Rolls Royce motor cars as well as, BMW motorcycles”. * PESTEL * Political
“German VAT increases from 16 to 19%. Additionally, reforms put further burdens (e.g. increased health service contributions) on customers. This may reduce demand and could have an effect on the automobile industry. Political climate in Europe had a huge impact toward BMW who has to expand more production in the US and China”.
“In late 2006, the European Commission announced that it would regulate the level of carbon dioxide (CO2) emissions from automobiles sold in the European Union (EU). Automakers are powerful actors who face considerable competitive pressures. German automakers were vehemently opposed to the EU’s proposed emissions targets. German automakers (BMW, Mercedes, and Volkswagen) tend to focus on producing larger, more powerful luxury cars. BMW’s fleet average was 184 g/km”. * Economic
“In particular, challenges arise from the co-occurrence of adverse currency factors (especially for BMW the weak dollar) and above-average raw material prices. Also, the increased petrol prices lead to a reduced car demand. The global economy experienced a sharp downturn in 2001 which lasted well into 2003, and this affected the motor demand. The equity prices had fallen until late in 2003, coupled with geopolitical tension and concern about oil supplies, added to the uncertainty about economic and political environments. This fuelled the decline in motor sale. In 2008 the economy of the developed countries as well as from the emerging markets experienced a dramatically decrease in growth. The automotive industry lost a huge part of its usual profits. These changes lead to a change in demand; costumers are not ready and not able to pay former prices for the cars. Some competitors of BMW
11
BMW
Marketing Analyzing
Mohammad Farmand
* SBUs (Strategic Business Unit)
“The Munich-based company manufactures vehicles under several brand names, including BMW, Mini and Rolls Royce motor cars as well as, BMW motorcycles”. * PESTEL * Political
“German VAT increases from 16 to 19%. Additionally, reforms put further burdens (e.g. increased health service contributions) on customers. This may reduce demand and could have an effect on the automobile industry. Political climate in Europe had a huge impact toward BMW who has to expand more production in the US and China”.
“In late 2006, the European Commission announced that it would regulate the level of carbon dioxide (CO2) emissions from automobiles sold in the European Union (EU). Automakers are powerful actors who face considerable competitive pressures. German automakers were vehemently opposed to the EU’s proposed emissions targets. German automakers (BMW, Mercedes, and Volkswagen) tend to focus on producing larger, more powerful luxury cars. BMW’s fleet average was 184 g/km”. * Economic
“In particular, challenges arise from the co-occurrence of adverse currency factors (especially for BMW the weak dollar) and above-average raw material prices. Also, the increased petrol prices lead to a reduced car demand. The global economy experienced a sharp downturn in 2001 which lasted well into 2003, and this affected the motor demand. The equity prices had fallen until late in 2003, coupled with geopolitical tension and concern about oil supplies, added to the uncertainty about economic and political environments. This fuelled the decline in motor sale. In 2008 the economy of the developed countries as well as from the emerging markets experienced a dramatically decrease in growth. The automotive industry lost a huge part of its usual profits. These changes lead to a change in demand; costumers are not ready and not able to pay former prices for the cars. Some competitors of BMW
References: W, M, Pride. O, C, Ferrell (2007) ‘Foundations of Marketing’ 2nd edn Houghton Mifflin. P. 121 Auto week [online] Available at: