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BMW Pibq

BMW changed its marketing strategy to focus on fuel efficiency and eco-friendliness in response to rising fuel prices. The company used below-the-line marketing to promote its new fuel efficient vehicles and differentiate itself based on miles per gallon. This strategy was partially successful, increasing BMW's market share in some regions but also losing customers who preferred more powerful engines. While the strategy opened BMW to new markets, it also significantly changed the brand identity.

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Eduardo Del Rio
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95 views3 pages

BMW Pibq

BMW changed its marketing strategy to focus on fuel efficiency and eco-friendliness in response to rising fuel prices. The company used below-the-line marketing to promote its new fuel efficient vehicles and differentiate itself based on miles per gallon. This strategy was partially successful, increasing BMW's market share in some regions but also losing customers who preferred more powerful engines. While the strategy opened BMW to new markets, it also significantly changed the brand identity.

Uploaded by

Eduardo Del Rio
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1.

Define the following terms:


a. Marketing Mix:
A tool that allows a business to establish the main elements of the
marketing campaign of a good or service. The 4P’s (product, place,
price, promotion) and 7P’s (4P’s + people, processes, physical
evidence) analysis tool is used to establish these elements

b. Market Share:
Percentage of revenue that a company generated among the total
amount of revenue in a certain industry.

2. Analyze how BMW can be customer focused.


The company can pursue customer behaviour and preference studies, in
which they detail on what customers most like about their cars, the features
they find useful/usless as well as what they would like to have. Moreover,
the company can guide itself on the preferences of their customers by
studying their sales: it could be the most purchased model in certain
markets, how successful was a new feature or how the sales of a popular
model in a certain area changed after the design/price/features of said
model was renovated.

3. Evaluate the success of BMW’s marketing strategy

BMW main change in its marketing strategy was to push for efficiency in its cars,
more miles for less fuel, mainly because of the price raise in fuel. With a Below The
Line marketing (BTL), which is a way more specific and targeting type of marketing
(more dedicated to the customer segment of the company), BMW pushed for a
brand recognition and unique selling point (differentiating factor that outstands the
company from the competition) that clients could associate with fuel efficiency and
eco-friendliness. This is shown in the slogan change and the new line of cars (X-
series rebranding).

This strategy had positive impact in Africa, North America and Asia markets,
resulting in an increased market share. As well, the Dakar rally allowed the
company to challenge Volkswagen in the luxury SUVs market. However, this
strategy had some drawbacks, by provoking the loss of those customers who
preferred the V10 more powerful, yet more fuel-consuming engine rather than the
V8 twin-turbo charged, which is a little less powerful but way less fuel-consuming.

In my opinion, this was a partially successful strategy for BMW, even if customers
who preferred the V10 engine were lost, BMW opened itself up to new markets, in
which the preferences they revealed and pursued were accepted by the new
clients. At the same time, I think BMW could recover the customers who prefere
the more powerful V10 by pushing for electric motors that are eco-friendly and
could soon equalize the power of the V10. Even if these new electric cars could be
expensive, BMW would still be targeting a market that could afford these type of
cars (as V10 cars are as well really expensive). Still, this strategy could have been
less “changing” for BMW, in a way that the company shouldn’t have changed the
brand identity so much, even if the external factor of oil prices happened, they
could have still adapted to it in a different way, maybe through innovation and
technology (by developing electric motors), and not only fuel efficiency.

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