Target, Positioning, and Marketing Mix at Bmw

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Target, Positioning, and Marketing Mix at BMW
BMW is one of the world’s largest luxury car companies and it is easy to understand why. Not only does this premium auto brand have a high resale value, but strong brand loyalty and an even bigger profit margin than mass-produced cars (Holloway, 2002). This in turn enables the premium maker to spend more on research and development into the minds of its target market to make better, more advanced cars with a powerful brand image. BMW is a German automobile, motorcycle and engine manufacturing company, which owns and produces the Mini brand, and is the parent company of Rolls-Royce Motor Cars. BMW is well known for its sporty, yet sophisticated image which has been built up since the 1970’s with many motor sports victories, and its BMW Group’s worldwide mission statement, “To be the most successful premium manufacturer in the industry” ( The majority of BMW’s success is attributed to the development of a consistent marketing policy, the ‘market niche’ strategy. The company has built is brand on four core values, which are technology, quality, performance, and exclusivity, whereas BMW has traditionally positioned its brand to be perceived as the leader in performance (Arnold, n.d.). In fact, the BMW group and all BMW models are all about performance on the road and inside the plant in which they are manufactured. The fundamental core benefits for BMW customers are reliability, durability, and style. People who buy BMW are also paying for the engineering and quality, not for breakdowns (Arnold, n.d.). Buyers normally expect certain qualities in their cars when they purchase at BMW. Brand associations of German luxury brands like BMW include powerful, high-quality, fast, pricy, luxurious, classy, and sleek (Holloway, 2002). BMW owners usually purchase because they know they can rely on its solid background of high-quality vehicles, and superior performance, but they also know they are getting a vehicle that looks sporty, classy, and expensive at the same time. Technology plays a huge role in the difference between BMW and its competitors. BMW has combined its superior quality product with that of technology to enhance BMW service experience for its customers. In fact, research by Wanke, Bohner, and Jurkowitsch, (1997) suggest that BMW’s Augmented Reality has created the bridge and extends the real world by adding virtual information to assist BMW Service staff in their highly demanding technical work. Using augmented reality, a BMW mechanic receives additional three-dimensional information on the engine he/she is repairing. For example, augmented reality can be used to help in diagnosing and solving the fault in and engine (Horatiu, 2009). Apart from the real environment, technicians can see virtually animated components, the tools to be used and hear instruction on each of the working steps through headphones integrated inside the goggles (Horatiu, 2009). Next stands the exclusivity of BMW’s potential product and the ideas’ genesis come up with. BMW now makes cars using resources that would otherwise be wasted by putting them to good use. For instance, the Landfill Gas-to-Energy Project at BMW used to reduce its reliance on natural gas and better utilizes the previously untapped methane, which is a byproduct of decomposing trash and can have harmful effects on air quality. By turning this methane into energy, the plant has reduced carbon dioxide emissions equivalent to removing 61,000 automobiles from the U.S highways each year (Arnold, n.d.). Today, 63 percent of the plant’s total energy is derived from landfill gas (Arnold, n.d.). Not only that, this project has three core benefits, it reduces the amount of harmful greenhouse gases released into the air, allows BMW to use a wasted energy source by transforming the methane gas produced from the nearby Palmetto Landfill into electricity to heat for the plant, and it saves a...
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