Introduction
An increasingly complex structure would probably best describe the make up of the automobile industry. As the time demands constant change, the automobile industry players have innovated on all the aspects of their business, particularly in production, to cope up with the demands of the steadily growing market worldwide ( 2003). Innovations take place within the framework of the industry, and the continuous decentralisation of management structures and the strategy of diversification of output helped the industry in fostering a strong front in the face of economic crises. With the evolution of cars come sizeable changes in how the industry is run. In particular, Bavarian Motor Works (BMW), an independent German company and manufacturer of automobiles and motorcycle sets a new level of innovation of the BMW cars –the BMW 3 series.
According to their Annual Report (2005)[1], the 3 Series is BMW’s best selling automobile. Thus, almost 40% of all automobiles sold by the company in 2005 was comprises of it.
On the other hand, the new BMW 3 Series Sedan sets the standards for its class. From its stunning good looks to its state-of-the-art powerplants, the new 3 Series Sedan is 100% BMW. The new transmission systems and sports-tuned suspension deliver unmatched levels of agility, responsiveness and handling excellence. And inside the spacious cabin, there’s even more of the renowned BMW elegance and style. The new BMW 3 Series Sedan: a new passion for driving.[2]
Marketing Mix (7P’s)
Product Development
The main products of the BMW are luxury automobiles and motorcycles which were distributed worldwide. These products will be available for the customers who want top-quality and branded cars and those who wanted to fulfill their hobby (e.g. car collection). On the other hand, the company also offered variety of products like the BMW 3 Series which was an entry-level luxury car/compact executive car manufactured by BMW since May 1975. It was modelled to their 2002 coupe, but added a more powerful 2.0 L 110 hp (82 kW) engine and other performance augmentations. Actually, the 3 Series was the smallest car line manufactured by BMW (exempting the BMW-owned MINI) before the release of the BMW 1 Series in 2004. [3]
The products are different in other competition in a way that the company maximises quality. Through the use of demographics and psychographics, all needs and demands of target market will be known by the company in order to provide the customers in the utmost time. The products are available at the BMW outlets worldwide. And other consumers can avail the car products using the on-line marketing store which provides all the product lines by contacting the outlets near the location of the customers.
Distribution/Place
To be known in the market place, the product was distributed directly to its clients and customers. And to be known internationally, one of the strategies that BMW utilises is on high-powered engine vehicles and innovation of car series (i.e. BMW 1 series, BMW 3 series, motorcycles). The company also find other car enhancements to be known globally.
Price
One of the advantages of the company is when it comes to its pricing tactic. In order to be known into the market place, the company provides its target market with a competitive cost that corresponds to their high quality products and services. The company gives the customer and client a price that is enough and matches the quality of their products.
Promotion
To promote the company and its product (BMW 3 series), the BMW uses video advertisements, print advertisements and the concept of e-marketing. These promotion and communication strategy tend to meet the consumers ffrom different places everywhere, especially those target markets or the consumers in the working place. Moreover, since the trend in the market place today is the usage of e-marketing, the company provided a website that any client can access. The use of the Internet is changing high-tech marketing overnight while different industries have been trying to use it as part of their marketing strategy. It does not only reconfigured the way different firms do business and the way the consumers buy goods and services but it also become instrumental in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel (1999). E-marketing is a powerful tool used by different business organisations around the world. It is defined as the process of achieving marketing objectives through the use of electronic communications technology. (2001) have provided a 5Ss’ mnemonic for how the internet can be applied by all business firms for different e-marketing tactics. These 5S’s are selling, serve, speak, save and sizzle.
People
The world’s automotive industry particularly the BMW affects the society as a whole. It employs millions of people directly, tens of millions indirectly. Its products have transformed society, bringing undreamed-of levels of mobility, changing the ways people live and work. The social value of the additional mobility that this industry brings involves the value of the people being able to commute over longer distances easily, among many others. For most of its existence the motor industry has been a model of social discipline and control and it is not just that the auto sector offers a ‘pillar’ of something else. There are, on the other hand, particular social issues to address in many developing countries, often those that are the result of an undertone of religious faith. The automotive industry has the role to play in helping develop the mobility of such countries and it can be achieved at an acceptable social cost of the country is prepared to learn the necessary lessons from those who have traveled this route before it, and to make the necessary investments.
Process
As stated, BMW uses several of marketing strategies to sell their car products (i.e. through TV advertisement, billboards, tours, and internet/e-marketing). E-marketing is also known to be the online marketing strategy utilised by BMW whose objective is to be the best company in their field. Thus, the BMW created its own website (). The main objective of utilising e-marketing strategy is to keep in touch to different internet users to be able to attract more clients and travellers. All in all, through the website, whether the user is a customer, employee, stockholders, vendors, retailers or end customers, the true strength of e-marketing is acceleration of the business portfolio.
Physical Evidence
The BMW works on a scale so awesome and has an influence so vast that it is often difficult to see. The level and diversity of technologies that it must deploy are increasing, which imposes both new investment burdens and new uncertainties and risks. Roughly a million new cars and trucks are built around the world each week – they are easily the most complex products of their kind to be mass-produced in such volumes. The industry uses manufacturing technology that is the cutting edge of science. But still, the potential for developing coordination skills, intellectual capabilities and emotional sensitivities through electronic technologies remain far from fully exploited. There are numerous additional near-term technological opportunities to adapt the automobile to changing energy availability. The possibilities suggest that BMW technology is unexpectedly robust and provides a powerful defense against energy starvation even if the real price of oil climbs steadily during the next couple of decades.
Marketing Mix Recommendations
From the discussion, BMW is subject to numerous technical directives and regulations, as well as legislation of a more legal nature. The legislation covers areas such as competition law, intellectual property law, consumer protection and taxation, and emissions (air quality and fuels). When the auto parts industry reached full development, accelerated technological efforts were made to create a web of local suppliers that would make it possible to meet the growing legal requirements for the national integration of production.
Other than the vehicles themselves, and the roads and fuel needed to run them; the business is intricately tied to the manufacture of a wide range of components and the extraction of precious raw materials. Indirectly, it brings people road congestion, too many fatalities and a wave of other environmental troubles. The effect to the BMW are that they needed to establish R&D centres to take advantage of research infrastructure and human capital, so that they can develop vehicle products locally to satisfy the requirements of the environmental and safety regulations more effectively.
Business Products
(1982) observed that the automotive industry has been depended upon by other industrial sectors to provide them with means with which to optimise their investment capital because of the transfer of its technology, which basically means that the manufacturing and materials handling processes that revolve around mass auto production will be, in the future, far removed from their original use through consulting engineering firms that undertake to design and equip factories. The tendency for car manufacturers like BMW, then, will be to focus on competition that would become more rigorous, giving special attention to profit-gaining activities and concentrating also on arranging for financial, marketing and industrial cooperation among car makers.
The growing pressures of the global economy, as an example the 1998 ‘merger-of-equals’ by the old Chrysler Corporation with German automaker Daimler-Benz, could result in the profound consolidation of car manufacturer giants. In 2003, a prominent industry insider has predicted that it would all just boil down to three to four auto giants within 10 years ( 1995). Last year, a survey of auto executives revealed that 51% of them believe that the world will witness major consolidations in the field, up from 35% during the 2004 survey of the same issue. The greatest area for growth according to (2003) is to be found in the emerging auto markets of Asia and Eastern Europe. At the same time, the targets market volume is still to be found in Western Europe, Japan and North America (2005). To that end, perhaps the rest of the world should hold its breath in the anticipation of what might transpire in this industry where innovation is first and foremost, the competitive edge.
International Marketing
BMW has several core competencies which they could utilise to further gain advantage over their competitors, and if possible, overtake General Motors in its market leadership in the automotive industry. One core competency of the company is their brand management. The strength of their automotive marketing has been such that their brand is known even in the parts of the world where cars are not the common medium of transportation. Another core competency is their supply chain management, which links to their ability to maintain a steady stream of raw materials coming in for production because of their long-term good standing with their steel, glass, plastic and other raw materials supplier. Their highly coordinated logistics system handled by outsourced firms also form part of their core competencies, leading to excellent inventory management and always on schedule production activities. Another marked advantage is their ability at the moving assembly line. Being the pioneer of such mass production system, they were able to get ahead of the competitors manufacturing processes-wise and were also able to save on costs and time. Yet another advantage is BMW’s focusing on its product development technology under a single product-information-management program through standardising and incorporating them. If sustainable development is to achieve its potential, it must be integrated into the planning and measurement systems of business enterprises. And for that to happen, the concept must be articulated in terms that are familiar to business leaders. Many observers believe that more stakeholders — investors, consumers, nongovernmental organisations and others — will insist that companies to take environmental and social costs as seriously as they take purely financial costs. In addition, investors are expected to increasingly seek out sustainable companies and avoid firms with poor environmental performance, judging the sustainable companies as better risks over the long term. Likewise, consumers are expected to search for products that perform well environmentally. In addition, the e-marketing procedures employed by BMW will possibly boost their advantage in international market since they have the capabilities to innovate branded cars (e.g. BMW 3 series).
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