Bmw overview and industry trends and issues

Bmw overview and industry trends and issuesBMW (Bayerische Motoren Werke Group) is a unity of the leash luxury motor elevator car seducers European railway car industry. BMW was founded on marching music 7th 1916 by Franz Popp and Max Friz. BMW started out by making wood effecting plane engines for German army up until the end of WWI in 1918. BMW in this extend allow look at BMWs position in the European automobile industry and it will overly analyse the commercializeing mix, Trends and issues in the industry. BMW base in the German state of Bavaria. BMW is creating and distri preciselying a series of successful, grant- worthd passenger cars and motorcycle. In 1928 BMW purchased their first car figurey at Eisenach/Thuringia and with it, the license to frame a small car call, Dixi. Also provides financial service to support oecumenic gross revenue and distri scarceion of cars and motorcycles. In 2008 the comp either s white-haired 1.2 million automobiles on a lower flo or its self-aggrandisingst denounce-the BMW.Trends and issue in the IndustrySWOT ANALYSISMy S.W.O.T analysis will define each of the Bayerische Motoren Werke (BMW) Comp twos strengths, weaknesses, opportunities, and threats.StrengthsBMW root has luxury notices ranges MINI, Rolls-Royce and BMW its precise popular car so its strengths of BMW.BMW stream positions in foodstuff atomic number 18 very repudiated and rugged-core so society turnover and trading profit growth atomic number 18 as well as proud. BMW is a reliable provoker.BMW has a in the raw engineering and worlds leading premium tonus of automobile pay offr so its create nice reputation of all the node and association profit ar soaring.BMW is a differentiate so everyone pick out that what is BMW so its wakeless to despatch a forward-looking convergence on grocery and earn to profit.WeaknessesBMW is brand so its exist as a leading automobile go with and very high determines so normal person has a perception that BMW prices are everto a greater extent high so they can affordable so its one of the BMW weaknesses.BMW are luxury cars manufacturer so its middle class sight non affordable so this one in like manner BMW weakness.OpportunitiesBMW im season in market its honorable so if the juvenile harvesting launch its direct-headed for earning money and augment changes.BMW client care service are untroubled so if there any node need any facilitate and make betterd a cars so its will be consider to in the buff some current(prenominal) cars and launch it.BMW release a Miniseries car its successful in Europe and the US market so BMW continue with this success they pass a diesel version to be released and its unfeignedly facilitateful to BMWs compose and brand value. So its nifty opportunity to release this mock up to separate country.BMW Economy is growing by 2007 2.75 to 3.75 share and indeed 2008 and 2009 its 2.5 to 3 percent so its mean more flo ck purchasing BMWs so its good opportunities to cover the uk and other market.ThreatsBMW most of the prototype are oil and current condition are oil prices dismission high and high so its truly one threats for the BMW so maybe they have to launch a Diesel model more than oil car model.Current authority and globalize market governments policies eternally flips so its one of the threats for BMW to due a tax position and import and export his car model and so forthBMW has to eer know the current political issues and new legal polices so if the interest passing game high so its will directly forcefulness to BMW cars.PEST ANALYSISPoliticalIn this time budget, Gordon Brown penalise drivers of the eco-friendly cars. In budged he announced that heavy polluting cars would be higher rate of road tax 210 a year. So its marrow BMW has to improved his car petrol engine so its performed longer as well as last longer manners value.BMW has to eternally careful about instauration new cars and weaken the becoming safety equipments on it. For example BMW manufacture one of their car without any airbags that could be illegal so its they forever and a day checked all the cars and awarded that safe of the car.EconomicIf the interest rate going high its really effect to BMW and other company of gross revenue and profit, its performer that if the rate going high customer not secureing a new cars and not investing any money. So that why BMW decrease the cars price and so not good for the BMW. Currents interest rate is 0.5% so its good for the customers to taint new cars.One of the most important train is unemployment, currents situation still many sector reseation period most of the plenty not doing any job so they not buy any luxury cars and any other item so its not good for BMW.SocialIn current market daylight by day new fashion and purport style will be change so its really hard to manage the customer need and what they wants so BMW always care of this wh ich of the harvest customer really needs and market demand.Population also effect the BMW gross sales market, if the family size reducing that means they just saving a money and not buying any luxury cars and item so BMW has to control his model price and also look the customer needs.TechnologicalTechnologies are more important factor to currents situation for BMW beca habituate all the other competitors victimisation a new technology to bring in a better performance against to other company. And they improved the cars to new materials and developments.If the technologies will be improver its means BMW also promote his model through internet and other media so its really helpful increase sales and profit.Porters Five Forces AnalysisThreats of new entry In new company entering an automotive market a massive amount of money of capital is required. In automobile industry BMW brands are very loyal so any new customer trust to this company and buy a new car. But a new company laun ch in an automobile industry its really hard to manage customer and they needs.Power of buyers In automobile industry most of the time prices are fixed. In this industry individual buyers are less big businessman but a large buyer have a bargaining military unit to lower price take aim. BMW always buy a bulk not a single to its really help to buyers power.Power of suppliers In BMW, powers of suppliers are low because of the high production. If the BMW switching the suppliers then it will be suppliers power will be high so automobile industry everyone doing a good relation to the suppliers so that the powers of suppliers are low and production of the company going high.Competitive rivalry In automobile industry hawkish rivalry is very high. Strong advertising and promotion brand make a different to the product. Its really easy to buy a new product to customer but its really hard to buy a suitable and good quality product.SubstitutionSubstitution are really affect the BMW sales be cause of the high price of model customer opt the akin cars but a low prize on other company etc. Audi TT, Mercedes CLK who fulfill customer need.Marketing verifiableBMW neer publish its aim and objective because of the competition. But in my research I can find some statement the main aim would beBMW increase sales growth in all criteriaProfit maximization offshoot into new marketMeeting s bestowholder needsAimObjectiveIncrease Sales Growth in all aspects of BMWSales increase from 1.4million to 2 million by 2020.Motorbike sales increase from 100,000 to 150,000 by 2012To raise its production capacity in China to 41,000 cars per year.Profit maximationIncrease efficiency by 3.3% in the production of carsCosts savings of 1.6bn by 2012 without cutting jobs.Profit margins from BMWs automotive operations should exceed 8% by 2012, up from 6.3% in 2006,Growth into new marketsResearch in to new marketsMeeting stakeholders needsBMWs share price has been slipping in recent months, so inv estors want it to find economies of plateful and cut greetCut average emissions by 25% by the end of 2008, in line with a voluntary industry agreement struck in 1998.www.bmw.comBMW has to improved sales and profit to consider this topic and work on it.Marketing strategySegmentationBMW have to identify specific characteristics to improve the naval division area. In this segmentation BMW has to look at this geographic, demographic, behavioral, and socioeconomic. Market segmentation provides guidelines for company to develop new marketing strategy and diverse product market. BMW three brands BMW, Mini and Rolls-Royce clearly focuses on international market.GeographicIn geographical segmentation divided on district, country, village, state, regions. BMW has to choose one specific geographic sector and concentrate on them. Because of the company sand launce a new product in new area its really hard to increase the demand but its easy to sale on old sector. So BMW will have to chance s of generating profit and gaining market share in specific market. Geographically, BMW main markets are Europe and North America both are heavily manufacturing and residents are situated to buy speed market.DemographicsIn this demographics segmentation divide the market into personal characteristics such as age and family life-time cycle, Gender and income, race, nationality and generation also include. So BMW has to target to special(a) market to sell their products. Demographics segmentation is the easiest way to measure the market.Age and family life cycle customer needs always change to grow and his life style status change so its company has to decide which product are better for ill-tempered age and their life style.Gender BMW has to always include this point to launch a new product because of the finical area and gender its really help to BMW to increase the sale.TargetingBMW using a particular target specific automobile market, it means different people and BMW give th e different cars sector so its really help to customer find a his needs and budget cars.BMW divided the different department of the cars to customer demand. Sports convertible (Z3, 3 series and Z4), Executive (3 series, 5 series) crack executive (7 series), Touring/Estate (3 series, 5 series), Grand Tourers (Z5), Super sports (M series) and 4X4 (X5). This all model BMW launce a different sector and customer needs.PositioningBMW theatrical role has a very high to luxury cars, performance, technologically advanced, good quality this are the main factor, so BMW has a good positioning in automobile industry. Its good for the BMW because of the new company launch a uniform cars and cheap price but never effect to BMW sales. BMW compete to Mercedes, jaguar, Audi, Lexus so its really voiceless to manage cars quality and marketing strategy. The positioning of the companies and their brands has been build up over many year sales and customer satisfaction. try and Marketing MixMarketing mix under for heading lots referred to as the 4 Ps Product, impairment, Promotions and patch. Marketing mix is really good important elements of a company plan. So BMW has to consider this point in to his strategy.Product The Most important elements in the marketing mix is company product, because this provides the useful to know customer requirements. BMW have to develop their product into the brand that helps to create a good position on customer mind. If the BMW brand are superiority leads its help to high sales, and give the BMW power the premium price.BMW products are very high performance, technologically advanced and luxuries. This will be start middle to prestigious card.The present models areBMW 3 series Sedan, Coupe, Convertible, Touring, CompactBMW 5 serial Sedan, TouringBMW 6 Series Coupe, ConvertibleBMW 7 Series SedanBMW Z4 RoadsterBMW X3 SUVBMW X5 SUVBMW M -Convertible, CoupeMini Cooper an fissiparous brand within the BMW GroupRolls-RoyceAccording to GM of BM W the management of products and brand is a key factor in marketing success. www.bmw.comVehicle achievement200420052006200720082009% ChangeBMW1,059,9781,122,3081,179,3171,302,7741,203,4821,043,829-13.3MINI189,492200,119186,674237,700235,019213,670-9.1Rolls-Royce8756928471,0291,417918-35.2Motorcycles *93,83692,012103,759104,396104,22082,631-20.7* from 2006 including BMW G650 X assembly by Piaggio S.p.A., excluding Husgvarna Motorcycles (14,232 motorcycles)BMW Group deliveries to customer200420052006200720082009% ChangeBMW1,023,5831,126,7681,185,0881,276,7931,202,2391,068,770-11.1MINI184,357200,428188,077222,875232,425216,538-6.8Rolls-Royce7927968051,0101,2121,002-17.3Motorcycles **92,26697,474100,064102,467101,68587,300-14.1** excluding Husqvarna Motorcycles (13,052 motorcycles).BMW Group deliveries of automobiles* by region and market (in 1,000 units)200420052006200720082009Germany283.6295.9287.7280.9280.9267.5 live of Europe299.7350.8375.0443.6432.2357.3Northern America315.9329.03 37.4364.0331.8271.0United Kingdom145.3156.2154.1173.8151.5137.1Asia106.4125.7142.1159.5165.7183.1Other Markets57.970.477.778.973.870.3http//www.bmweducation.co.uk/coFacts/view.asp?docID=73In BMW product life cycle main points are Introduction, Growth, Maturity, and Decline.So its true that new product has to pass all the product life cycle factors. BMW knows as good brands so it not very difficult to launch a new product in the market and also BMW international represented so all over the world.In 2010 BMW launce a new series 7 and 8 so every product has to pass on this life cycle its depend on customer demand and market strategy that how product work and what is the sales and profit.IntroductionBMW new series are straggling on antecedent periods because of the customer not knows the cars feature and price and compare to other product. get-go point there is no competition and also low scale volume of product. Its really hard to create a demand of new product and BMW always launch luxury cars so its to high price so starting point company has to lose some money.GrowthBMW new series its growing periods demand already increase and company make money so its good to for the profit also. If the cars market going high the BMW share also high. Growth periods is competitors also entry the market so BMW has to control price and technology. BMW launch a MINI brand in Europe and other markets and its really high-performance in 2002, BMW sale more than 144,000 Mini brand cars on particular periods.MaturityIn this periods most of the product are common periods and all prices are same and feature also same. In Maturity periods production cost and manufacturing cost are low and profit are also normal so its really good for company. BMW has to good competition market on this due date periods.DeclineIn this stage BMW product demand will be going down so its company due to new product launch and replace the old one. In this stage company give the discount and sales his cars so its lose for the company.BMW is a one of the luxury brands and its popular for cars in automobile industry. BMW customer sector are upper and middle class people and price rate are also premium. BMW is a brand so most of the people like to buy and BMW use a new technology and give the customer needs.PriceThe price strategy has been used to BMW and other company competition. BMW is series market based around the same price. In automobile industry is large and production cost are not so important but creating the large profit is not a necessary as it would be a smaller company.In automobile Industry BMW compare with other competitors same market**Prices are in US DollarsModels(From) Lowest price**(To) Highest price**3 SeriesSedan$29,850$36,950Coupe$30,500$36,800Convertible$37,800$44,100Touring$30,800$32,550Compact$28,100$35,2005 SeriesSedan$39,800$58,3006 SeriesCoupe$69,300$72,200Convertible$76,300$78,9007 SeriesSedan$69,300$117,200X3 (SUV)$30,300$36,300X5 (SUV)$40,800$69,800M Seri esCoupe$47,100Convertible$55,600Z4 (Roadster)$33,600$40,900Mini CooperRolls-Roycewww.bmweduction.co.uk/companyfacts/competitors/fact1.shtmBMW has to always think about prices of the product because if the price will be high to other competitors demand will be down so its very difficult to manage price and everything will be covered.PromotionBMW using advertising most obviously as promotion techniques, advertising has always focused on entirely on their cars with same advertising company.BMW always using advertising like media, TV, Magazine and other sources, so its really useful to new cars launches. In 2002 BMW branding campaigns use first piano tuner for a national advertising. BMW was worked advertising agency WCRS since 1979 to develop adverts for BMW cars. BMW also use online advertising so in current situation its really help to customer find a new cars feature in online and know the price and how to get it. So advertising its really help to BMW sales.PlaceSelecting a proper Place its really hard decisions for the company and particular target market. BMW has to distribution system performs logistical, transactional and facilitating. Function.BMW has to improved to select a proper place to going a business because its seems that more places your product is available, so more money youll get. BMW give a dealerships on every track but its selected areas and target market. So its really helpful decision to take a good place for the company.BMW always used one level distribution this is where it comes from the manufactures to independent dealers who then sell to the consumers.Its shows that BMW using one level of distribution so its good for BMW to contact todirect customer and know what the customer need.RecommendationsBMW cars navigation system are quite complex so its really improved to new cars. If BMW increase navigation system then its his car value must be high.BMW launch new half dozen gas cylinder vehicle but its will be give low mileage. So BMW has to do any work on this occupation and use the proper technology and improved the cars mileage.A BMW car has a limited cargo space compare to other competitors car. So BMW has to work on it and improved a new cars and then launch.Most of the customer has a perception that BMW cars are always high prices so its mischievousness for BMW sales and profit. So BMW has to advertised and give the proper cars feature and price to customer and other media so he knows that which cars better for and what is the feature.ConclusionBMW group has a good brand value so its really more opportunities and wide production plants and high technology give the more cars sales and increase the BMW profits. BMW is currents luxury car manufacturing companies so its brand value are very high. In currents situation cars are very important and simple transport to society. BMW earn more profit from the increasing a sales to high quality of cars and good service. BMW are loyal to the customer so they like to buy a new car. BMW group has a high standard production and efficient managements. Its future depends on the external environments and natural activities.