Monday, February 27, 2012
Developing A Global Vision
BMW is a giant multinational corporation. It's headquarter is in Munich, Germany, and it has subsidiaries in South Africa, United States, India, China, Canada, Austria, and Egypt. As a result, this company a a great example of job outsourcing. In addition, it has bring a lot of employment in the United States and Canada. BMW South Africa was the first wholly owned subsidiary of BMW to be established outside Germany. South African built BMWs are now exported to right hand drive markets including Japan, Australia, New Zealand, the United Kingdom, Malaysia, Singapore, and Hong Kong, as well as Sub-Saharan Africa. Since 1997, BMW South Africa has produced vehicles in left hand drive for export to Taiwan, the United States and Iran, as well as South America.
BMW is considering expanding the range of products offered in China, as well as introducing a leasing-vehicle business, in order to enhance its presence on the Chinese market. BMW plans to increase its network of Chinese suppliers to more than 160 from about 100 now. Since June 2012, BMW started to assemble locally the new BMW 3 Series sedan.
Monday, February 20, 2012
The Marketing Environment
BMW target market is not as simply as those of other companies BMW surely knows that their products are expensive,and avoids the high-volume of low income people and focuses strictly at upper-middle-class and high rollers.These are not your typical spenders.This group of people probably has a bit of disposable income.
BMW has historically tried to targeted everyone,but then came the recession and the company decided to change their strategic plan.Rather than compete in every segment of the auto industry,BMW only targets the premium-priced cars. It avoids the high-volume market of
middle-of-the-road vehicles and focuses strictly on the luxury sector.
The Mini, for example, is smaller than a Honda Civic, but is priced at
about $3,000 (€2,300) more. This strategy has made BMW, despite its
relatively small size, one of the world’s most profitable car makers.
SIGMA was the company charged with researching the market. Sigma a German research firm has pioneered a method of predicting shifts in consumer tastes. SIGMA looks beyond demographics such as age and income. It often interviews consumers for hours and even photographs their homes and offices to build a picture of the mindset of different consumers. Sigma predictions were that there would be significant expansion of the luxury car market.
What Sigma’s research found was the ‘I’ve made it’ attitude of the 1990s BMW driver, what they called the ‘social climbers’ was now changing to a more family friendly group. They foresaw that as the yuppies declined, other groups with different upscale mindsets would increase in number. They suggested four segments going forward and BMW reacted to the new segments by introducing a car to match 3 of them:
What did BMW do? In 2001, BMW launched the new Mini, aimed at upper-middle-class buyers who were not quite affluent enough to buy a real BMW. This group is also the target market for the new BMW compact, the 1 Series. The Mini brand provided the company with the opportunity to enter a very different segment of the automobile market whilst reducing the risk of affecting perceptions of their existing brand.
Matching product development to segmentation is the core requirement of marketing that many companies do not understand or undertake successfully. BMW is a very good example of excellent consumer research, matched to segments which were targeted by very suitable and successful cars. Not a feat that many have successful managed.
SIGMA was the company charged with researching the market. Sigma a German research firm has pioneered a method of predicting shifts in consumer tastes. SIGMA looks beyond demographics such as age and income. It often interviews consumers for hours and even photographs their homes and offices to build a picture of the mindset of different consumers. Sigma predictions were that there would be significant expansion of the luxury car market.
What Sigma’s research found was the ‘I’ve made it’ attitude of the 1990s BMW driver, what they called the ‘social climbers’ was now changing to a more family friendly group. They foresaw that as the yuppies declined, other groups with different upscale mindsets would increase in number. They suggested four segments going forward and BMW reacted to the new segments by introducing a car to match 3 of them:
- “Upper liberals,” includes socially conscious, open-minded professionals often with families who were successful in the 90s. They were predominantly Volvos, Saabs and SUVs drivers What did BMW do? For upper liberals, BMW added the X5. This is a SUV that the company prefers to call a “sports activity vehicle,” in a bid to appeal to this group’s active lifestyle.
- “Post-moderns” are high-earning innovators like architects, entrepreneurs and artists. They are highly individualistic and gravitate toward head-turners like convertibles and roadsters.
- “Upper conservative” are wealthy, traditional thinkers. They’ve never been that interested in driving sporty cars like BMWs, and consider luxury and comfort over driving performance. They would normally purchase the Mercedes S-class and Jaguars as they strive for elegance and sophistication. What did BMW do? BMW-developed the Rolls Royce, Phantom, which sells for about $325,000, and is intended for the very wealthiest upper conservatives.
- “Modern mainstream.” These are family-oriented and active and normally purchase the near-premium brands like Honda or Volkswagen: BMWs were considered too expensive for them. But increasing numbers of them are looking to move up above the middle class and are open to luxury-brand cars.
What did BMW do? In 2001, BMW launched the new Mini, aimed at upper-middle-class buyers who were not quite affluent enough to buy a real BMW. This group is also the target market for the new BMW compact, the 1 Series. The Mini brand provided the company with the opportunity to enter a very different segment of the automobile market whilst reducing the risk of affecting perceptions of their existing brand.
Matching product development to segmentation is the core requirement of marketing that many companies do not understand or undertake successfully. BMW is a very good example of excellent consumer research, matched to segments which were targeted by very suitable and successful cars. Not a feat that many have successful managed.
Monday, February 13, 2012
Ethics and Social Responsibility

As a globally active automobile manufacturer, BMW Group takes responsibility for the environment, as well as social interests of employees and society as a whole.
The motor industry is clearly one of the world’s largest polluters; it is perhaps ironic that this gives it the opportunity to become one of the most proactive reducers of emissions. BMW is among the manufacturers taking its responsibilities in this area very seriously indeed, on both product design and corporate levels.
In corporate terms the organization has won awards and is completely up-front about its principles around sustainability. In 2008, BMW won the Corporate Responsibility Reporting Award for best carbon disclosure; it also has production facilities based on the UN’s cleaner production program and uses preventive environmental management on a voluntary basis.
Its real innovation, though, has to be in its vehicle design and manufacture. “We’ve been at the forefront of realizing from a product point of view that the continued growth of performance needed to be balanced against a realization that some sort of sustainability was going to be necessary,” says Duncan Forrester, a PR for the company. The company therefore initiated the scheme now known as Efficient Dynamics.
“Efficient Dynamics is an umbrella term for a number of technologies that come together to deliver not only the customer’s desire for increases in performance and output but at the same time decreases in consumption and improvements in emissions,” he says. Products started to emerge early 2007 and the specific elements of Efficient Dynamics in a car depends on the model. The one with the most are four cylinder manual cars, which get the whole bandwidth.
“Efficient Dynamics is a huge number of technologies and it comes together to produce huge efficiencies in a number of our cars. When we launched the new 6 series in the Autumn of last year, a three and a half year old model, we announced up to 22 per cent increases in efficiency which is a huge number.”
BMW has won awards in 2011 and this for the Efficient Dynamics idea, leading to the current stage at which a diesel powered car with no hybrid technologies or biodiesel won Green Car of the Year.
Sustainability is also about the future. BMW is keeping many of its future plans secret but confirms that Efficient Dynamics is a work in progress rather than a box which is now ticked and from which it will move on.
To BMW Manufacturing, Corporate Social Responsibility means being a catalyst for change. We strive to set examples for those we work with, for, and around with high standards of environmental management, corporate giving, and maintaining a diverse workforce. We are proud to be in South Carolina, and we appreciate the many different relationships we have established here.
Through education, environment, and
other philanthropic efforts, we carry out our pledge to diversity. As citizens
of both the global corporate economy and the Upstate community, we integrate
these commitments into everything we do at BMW Manufacturing. We support dozens
of local and statewide organizations, including our most visible initiative,
the annual BMW Charity Pro-Am presented by SYNNEX Corporation. Every
partnership is an instrument of change. Each contribution is a reflection of
our principle.
Corporate
Giving:
Nearly $28 million through 2010
- 47% to education
- 35% to the community
- 18% to the arts
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