Bayerische
Motoren Werke (better known as BMW) is one of Europe's top automakers. The Munich-based
company manufactures vehicles under several brand names, including BMW, Mini, and Rolls-Royce motor cars, as well as BMW Motorcycles, which also offers
a line of motorcycling apparel such as leather suits, gloves, and boots. The
company sold more than 1.5 million vehicles in 2011.
In
Germany, the United States, and abroad, BMW concentrates exclusively on selected
premium segments in the automobile market, making it the only multibrand automobile
manufacturer in the world that is not active in the mass market. With the BMW, Mini,
and Rolls Royce brands, BMW covers the premium segments ranging from the small car to
the absolute-luxury category. BMW's premium brand strategy allows it to focus
on achieving
higher revenues per vehicle on the basis of a high value and a distinctive
brand profile.
The premium brand strategy therefore positions BMW for further profitable
growth.The
company expects the premium segments of the automobile market to grow worldwide
by about
50 percent in the next ten years, while the mass volume automobile segments
will increase
by about 25 percent. The BMW Group is aiming to exploit this growth by
assessing consumer
behavior and meeting consumers' expectations for premium-branded automobiles.
Movies
play a key role in BMW's business marketing promotions. The company has garnered
huge waves of publicity from having the Mini Cooper featured in “The Italian job” and
for arranging for James Bond to drive new BMWs. To reach Internet-savvy car
buyers, BMW
also hired top directors to make short films especially for Web viewing.
Although the films
ran online for only four years, they were viewed more than 100 million times,
won numerous awards, and were later issued on DVD for free distribution to prospective buyers.
BMWs
sales promotion efforts also include samples - in the form of extended test drives
- as well as participation in major automotive trade shows. Eye-catching point‑of‑purchase
displays in dealer showrooms support the overall integrated marketing communications
effort by echoing selected images from the company's advertising. Price promotions
are rare, although the company held its first end-of-year clearance sale on
select U.S. models not long ago.
