Marketing Mix of BMW

BMW (Bayerische Motoren Worke) AG is a luxury automobile manufacturing German multinational company. Franz Josef Popp, Camillo Castiglioni, and Karl Rapp founded the automobile company in 1916. Today, we’ll discuss the marketing mix of BMW; it would focus on the marketing strategy 4Ps and 7Ps elements like product, price, place, promotion, people, process, and physical evidence.

The marketing mix of BMW would focus on the marketing strategy and 4Ps and 7Ps elements involved in the mix like; product, price, place, promotion, people, process, and physical evidence. Here’s BMW marketing mix analysis and marketing strategy of BMW as follows;

Marketing Mix of BMW

Some of the key elements involved in the 4Ps and 7Ps of the marketing mix of BMW and marketing strategy of BMW are as follows;

Products of BMW

I-Diversified Portfolio

BMW has established a well-diversified vehicle portfolio. According to an estimate, the automobile company offers over 14 models of motorcycles; and more than 80 models of luxury vehicles under different brand names. The cars of BMW have been competing in various types of competitions and championships like the following;

• Tourist trophy races
• Isle of Man TT
• Sports car racing
• Formula 1
• Touring car racing

II-Luxury Vehicles

Luxury cars and vehicles are the main focus of BMW Group and the brand gets it manufactured in its various production facilities across the world. The company offers highly personalized and customized vehicles based on the requirements of customers, and they pass the product quality standards across continents. However, the company invests a lot of resources in the development of luxury cars to satisfy the requirements of premium customers

• Sports cars
• SUVs
• Premium Sedan

III-Advanced Technology

BMW implements the latest advanced technology in the development of its cars, motorcycles, and vehicles to gain a competitive edge. Various factors attract the attention of customers when they think of BMW like the following;

• Status symbol
• Performance
• Style
• Unique features
• Safety
• Reliability
• Efficiency

They all are the key elements of BMW’s product development strategy, and the automobile brand achieves them by embracing the latest technology. In fact, the company puts a lot of emphasis on luxury and safety, and the brand keeps on producing vehicles regularly.

Price Strategy of BMW

I-Premium Pricing

BMW is the leading player in the luxury automobile manufacturing industry. The unique features, style, and status come with the premium pricing of its vehicles. BMW’s brands like Rolls-Royce and Mini have a bit higher price than regular BMW vehicles due to the premium features. However, the objective of the premium pricing of its luxury vehicles is to separate and differentiate itself from other automotive brands.

II-Dynamic Pricing Strategy

Along with premium pricing, BMW also implements a dynamic pricing strategy in order to penetrate the markets in developing countries like Bangladesh, India, and Brazil. The company has launched its luxury vehicles at affordable rates in those markets, some of the models are as follows;

• G310 R
• BMW X1
• BMW 2 Series Gran Coupe

BMW also provides financial services to the customers like EMI, loans, and other forms of payment methods; so that the customers could own a luxury vehicle.

Place of BMW

I-Production units

BMW has established a worldwide reputation for manufacturing luxury vehicles. The automobile brand has a network of more than 31 production and manufacturing units in roundabout 15 countries across the world. Overall, the automobile brand is operating its business in over 140 countries globally.

II-Showrooms

In order to deliver luxury vehicles to customers, BMW establishes dealership contracts with showrooms, rather than hiring distributors. The authorized showrooms of BMW earn a specific margin on sale, and most of them are in urban areas. However, the company deals with the stockiest distributors for the distribution of automotive spare parts at specific locations.

• 80% of BMW’s sales are through stores, showrooms, salesmen, and offline
• 20% of sales are online when customers order a customized and personalized car

Promotion of BMW

I-Aggressive Advertisement

BMW runs aggressive marketing and advertisement campaigns for brand awareness and promotion of its vehicles and cars. The ads show the high quality, luxury, style, and status of the brand. However, some of the channels the company employs are as follows;

• TV ads
• Printed Ads
• Billboards
• Sports events
• Social media platforms

II-Brand Ambassadors

Along with advertisement campaigns, BMW hires public figures and media celebrities as brand ambassadors like Darren Sammy, Alessandro Zanardi, and Sachin Tendulkar. The automotive brand also sponsors sporting events for the promotion of its brand and vehicles.

III-Branding Focus

The focus of BMW is on the vehicle model and the brand in its advertisement campaigns, rather than on the engine or technology. The company prepares the minds of customers that they would have a remarkable time while shopping the vehicle. However, some of the key slogans that the company used are as follows;

• “The ultimate driving machine”
• “Sheer driving pleasure”

People Strategy of BMW

BMW has employed approximately 149.475 employees to manage its worldwide operations. The automobile brand has a diverse workplace environment; where people from ethnicities and backgrounds work together towards the goals and objectives of the company. However, the automobile company believes in equal employment opportunities regardless of gender sex, or background.

Process of BMW

BMW invests a lot of resources in the efficiency of its various processes like supply chain, value chain, production, manufacturing, sale, distribution, and others. The efficiency of all of these processes has allowed the company to launch the latest tech-advanced luxury cars and motorcycles. In fact, the automobile brand puts a lot of emphasis on the sustainability of operations and processes.

Physical Evidence of BMW

The worldwide network of authorized showrooms and running vehicles on the roads are the physical evidence of BMW. The global network of suppliers, manufacturing facilities, and showrooms amplifies the brand value and brand position of the luxury automobile company. However, customers feel proud to own the luxury vehicle of BMW.

Conclusion: BMW Marketing Mix 

After an in-depth study of the marketing mix of BMW; we have realized that BMW is the world’s leading automobile manufacturing company. if you are learning about BMW marketing mix analysis example; then you should keep in mind the abovementioned 4Ps and 7Ps elements involved in the mix like product, price, place, promotion, people, process, and physical evidence.