BMW is one of the most luxurious brands in the world and does not need any introduction. The company was founded on 7 March 1916 as an automobile brand, but with time it has started dealing in watches, T-shirts, wallets, shoes, etc
In this blog, we will look into the 4 Ps of the marketing mix of BMW that made the company one of the top brands in the world of manufacturing vehicles.
Before we dive into the 4Ps of the Marketing Mix of BMW, let’s learn a little bit about the company.
BMW or Bayerische Motoren Werke AG is a German Multinational Corporation that manufactures a wide range of luxury vehicles and motorcycles. It is one of the ‘big three’ German luxury cars (including Mercedes and Audi) with high worldwide customer demand.
BMW took off one century ago in 1917 under its earlier name Rapp Motors which produced aircraft engines during the first world war, today the brand generates 90 billion euros per year in sales revenue according to The Economic Times.
With that being said here are the 4 Ps of marketing mixes of BMW:
MARKETING MIX OF BMW (4Ps)
The Marketing Mix of a company tells us what are the marketing strategies involved in the success of a company. The 4 ps were introduced by E.J. McCarthy and these are product, price, place and distribution, and promotion mix. By keeping in mind the 4 Ps of the marketing mix, Professionals can maintain focus on the things that matter. Thus, helping the organizations for launching new products or revising existing ones by devising a strategic plan.
Let us dive deeper into the marketing mix of BMW:
1. Product Strategy of BMW
BMW has manufactured over 80+ models of luxurious cars under the brand names BMW, Mini and Rolls-Royce. Also, 15+ models of motorcycles have been produced under the brand BMW Motorrad. The company’s cars and motorcycles had created history amongst Competitions and championships like Touring car racing, Formula 1, Sports Car Racing and the Isle of Man TT or Tourist Trophy Races. Despite the high prices, they have made cars ranging from lower-level to upper-level classes covering each class demand.
Starting from its basic model to advance engineering. Every product has its features and different characteristics. According to the changing needs of customers, they produce innovative and fresh models from time to time.
2. Pricing Strategy BMW
There is no doubt that with such premium technology and styling, the price mix of BMW is also premium. That’s why customers demand and pay much higher prices of such perceived quality. The prices of products like Rolls Royce and mini John cooper are higher than others and stand alone in the BMW group range.
They are the most expensive vehicles, attractive in look and loaded with technology, targeting the upper class. These are also more expensive for repairs and general maintenance.
To enter into the market (India, Brazil, Bangladesh ) BMW launched lower-priced cars, where it offers affordable rates for its smaller models.BMW 2 Series Gran Coupe starts at Rs 38.88 lakh in India. BMW X1 and G 310 R are the most affordable cars and bikes of BMW.
BMW offers financial Services to its customers like loans, EMI, and other repayment methods to bring the possibility to buyers for owning luxury vehicles.
3. Place Strategy of BMW
BMW being a world-renowned vehicle manufacturer has its manufacturing unit all around the world, as a part of its place mix. Starting its manufacturing unit from Bavaria, Munich gained new customers across the globe.
The BMW Group have production houses in 15 countries with a network of 31 productions and assembly facilities. The company has a global sales network in more than 140 countries. It has recently started setting up manufacturing units in smaller countries.
The company does not appoint automobile distributors, it directly contacts showroom dealers to sell cars from showrooms to customers. They have their authorised showrooms and they get a good margin. The showrooms are very few and mostly in the urban areas. They keep their sales less aggressive for maintaining their luxurious image in the market. However, for the distribution of spare parts, distributors and stockists are there at strategic locations.
BMW’s sales and distribution channels are 80% offline, meaning cars are available in the stores, which the salesperson can provide and customers can see. The other 20% of purchases are online in a virtual showroom where customers can customise their cars and later they can pay and obtain the car.
The worldwide sales, financial network, and services of BMW plays a strong role in providing services to its customers and maintaining a global presence.
4. Promotion Strategy of BMW
The success of a company is determined by how it adopts promotional and advertising strategies efficiently. To create continuous brand awareness, BMW follows aggressive advertising through social media (FB, Instagram, Twitter, Snapchat), TV, through various sports events, billboards, print ads, to create continuous brand awareness. But they do not want cars to be available to the masses. Therefore the television ads are sleek and of higher quality.
It mainly focuses on the look of the model rather than technology or engine. They focus on customers’ luxury and pamper their customers with memorable moments at the time of purchase. The slogans like “Sheer Driving Pleasure” and “The Ultimate Driving Machine”, suggests to its customers and other people that BMW cars can give pleasure in driving that no other car can give.
The company has also famous brand ambassadors like Sachin Tendulkar, Alessandro Zanardi, Darren Sammy, etc. It is a close sponsor for many sports events and rally racing events. They have been a success at the F1 races at various events. Because of these events BMW is now been recognized and being a reliable automobile over the years.
Apart from this, BMW has found many innovative methods of Promotions overtime on various events and festivals. With this, we come to the conclusion of the Marketing Mix of BMW.
From the above case study, it can be concluded that BMW has unique marketing strategies where they advertise less aggressively but still has great popularity because of the high brand value. The range of its products offered are well characterised and gives many options to the customers. The distribution channel of this company is smooth and hustle-free. BMW, being the expensive automobile company, offers the best experience or say, a luxurious experience to its customers.
If you enjoyed learning from this case study on the marketing mix of BMW, please comment down below and share your thoughts on the company.
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