Vroom Vroom!🚗 Raise your hand if you enjoy the sight of a BMW on the road as much as I do! ✋
BMW remains a legendary name in the automotive sector. I bet you will not disagree!✅️
The German company began its journey in 1916 and experimented with aircraft engines, motorcycles, and automobiles to earn a solid name for itself in the coming years.
Would you like to join me on a mini-journey to find out how BMW kept up with changing times to remain a popular premium choice among its ever-evolving target audience? Well, I heard a “yes,” so let’s roll!⤵️
🧐 QUICK FACTS- in the year 2022, BMW accounted for a revenue of 142,610 mn € with a net profit of 18,582 mn €. 🤯
About BMW
Bayerische Motoren Werke AG, or as we popularly know, BMW, is a premium automaker headquartered in Munich, Germany.
Did you know that the company originally made aircraft engines? Surprising, right?
Today, BMW is a leading producer of premium sedans, sports cars, SUVs, and motorcycles.
BMW deals in four business segments- Automotive, Motorcycles, Financial Service, and Other Entities. You probably know that BMW is associated with Rolls Royce, MINI, and BMW automobiles.
In addition, it also sells premium spare parts along with accessories. Interestingly though, BMW also offers financial services.💸💷
BMW’s History in Short
From building aircraft engines initially, BMW expanded its business by entering the world of motorcycles in the 1920s and then the automobile business in 1928.🏍️🚘
In 1959, BMW attempted to enter the small-car market, but it was unable to perform effectively and came on the verge of bankruptcy. It was the launch of its 700 series, followed by that of the 1500 model, along with a new series of motorcycles in the US that saved the company.
By the end of the 20th century, BMW gained fame as a premium automobile brand. And, in 2001, with the relaunch of the British Mini, and, later in 2003, by associating with the British Rolls-Royce, BMW added more stars to its name. ⭐
💡 QUICK FACT- In the year 1994, with the purchase of the Rover Group, BMW tried to enter the sport utility vehicle market. After losing $4 billion, the company sold the Land Rover brand to Ford in 2000.
Marketing Strategies of BMW
The Digitalization of Sales and Marketing
During the coronavirus pandemic, BMW tried some experimentation to overcome the consequences of the global lockdown.
It introduced a way to configure their customer’s ideal car via phone and a shared screen. It also shifted the sales procedure for its retail partners to online mode on its website. 🧑💻
The company aims to continue enhancing the online purchase experience, including doorstep delivery, by collaborating with its retail customers.
The basic idea here is to make the online customer journey seamless, from configuration to ordering to the entire use phase.
Aimed at Premium Customer Experience
Post-COVID-19 pandemic, BMW geared up to enhance its online sales along with its customer experience. The company wants to cater to the personal requirements of its customers by offering options tailored for them during the purchase and use phase.
BMW has a legacy of providing a premium experience to its customers, and the company continuously strives to fulfill that expectation.
Social Media Marketing Strategy
BMW actively engages with its customers on social media platforms like LinkedIn, Instagram, YouTube, and Facebook.
One of the ways in which BMW appeals to its customer is by focusing on visual storytelling. The videos and images posted on its social media and advertisements are focused on highlighting its design and engineering expertise.
BMW actively responds to customer comments and messages to strengthen the community and the loyalty factor. One such initiative is the #BMW through which customers can participate to be featured on BMW’s Instagram account. 📱
Performance
With an emphasis on engineering and innovation, the company ensures high performance in its vehicles. While luxury and style were a legacy carried by BMW, it began expanding its mastery in safety, performance and efficiency, and innovation.
Moreover, BMW is very smart in reflecting these qualities through its creative advertisement. After all, ads are the way to enter a customer’s mind! Wouldn’t you agree?😜
Product Focused Advertising
As discussed before, BMW cleverly uses advertisements to showcase its vehicles’ performance features, technological innovations, and design elements. Maintaining a reputation for having an innovative mindset is an important strategy.
It also appeals to customers better when the intrinsic qualities of vehicles are highlighted. This is why we see a similar approach taken by all big players in the automobile sector.✅
Collaboration with Celebrities
Even though BMW is an iconic brand, it does not shy away from collaborating with celebrities from time to time.
Whether Alessandro Zanardi, Sachin Tendulkar, or even supermodel Gigi Hadid, BMW smartly utilizes the good-old appeal strategy through face value. People tend to respond positively to promotions that involve celebrities they identify with. 🤝
Sarcastic Marketing Approach
To show off its competitive side BMW, and in fact, the automotive industry in general, continuously engages in ads that are sarcastic.
One such example is BMW’s ad teasing Tesla’s new Model 3 for its timeless waiting list. Similarly, the very popular BMW-Audi advertisement banter regarding the various awards each had won in 2006 is a prime example.
The banter extended in a hilarious way, as if a comic series and sarcastic ads were displayed even on billboards.
QUICK FACT- BMW collaborated with the Snapchat Augmented Trial Lens to create a 3D reality, ‘BMW X2’, that almost felt real and drivable.
Top Products of BMW
BMW i4 M50 (BMW M)
The i4 M50 is the pioneer all-electric car from BMW M. The first of its kind in BMW’s history, the i4 M50 screams agility, dynamics, looks, and precision. With next-generation performance, top-class engineering, and dual electric motors, the vehicle delivers approx. 536 hp.
Would you be surprised to know that the i4 M50 was the company’s bestseller in the year 2022?
3 series
BMW’s compact sedan has remained a favorite since its debut in 1976. In 2019, the company launched its new 7th generation, which offers a 255-hp four-cylinder, 288-hp plug-in-hybrid, and 382-hp- six-cylinder variants.
4 series
Available as a coupe, convertible, or four-door gran coupe, the 4 series was launched in 2014. It offers a range of power outputs from a 248-hp four-cylinder to a 503-hp inline-six.
Quick fact- Did you know that the 3 series and 4 series together are often considered the bread and butter of BMW?🍞🧈
R 1250 GS
This adventure touring bike is BMW’s best-selling motorcycle with a power output of 136 hp and a top speed of 124 mph-plus. It is also available in an R 1250 GS Adventure variant.
QUICK FACT- BMW’s R 32 motorcycle held the world record in terms of speed which remained untouched till 1937.🏍️
Rolls-Royce Cullinan
The year 2022 marked the record global sales for Rolls-Royce Motor Cars with an 8% increase from 2021. The Rolls-Royce Cullinan was the numero uno in-demand model for the year.
In the Asia Pacific region, the Ghost topped the best-selling chart. Rolls-Royce found its largest global market in the USA, followed by China.
BMW MINI Cooper SE
In 2022, the electrified Mini vehicles saw a 25.5 percent increase in sales compared to 2021. Of all the MINI models, Mini Cooper SE, which is a locally emission-free vehicle, was the most popular, accounting for 22 % of the total sales.
QUICK FACTS- In the year 2022, the company managed to deliver a total of 2,399,632 vehicles.
BMW Marketing Mix 4P Analysis
Product
BMW has gained a reputation for being a luxury automobile manufacturer. It sells its products under the brand names BMW, Rolls-Royce, Mini Cooper, and BMW Motorrad.
The company ensures a lower production cost by strategizing its manufacturing locations. It offers a high level of customization in some products while offering some standard products across the globe as well.
The company primarily deals in premium sedans, SUVs, and sports cars while also having entered the electric and hybrid motor vehicle segment.
Price
The BMW Group has been an iconic player offering high-end luxury automobiles, and the company has made continuous efforts to keep it that way.
Brands like Mini Cooper and Royals Royce have been priced a bit higher than the standard BMW product range. In fact, even the spares and after-sale service costs of BMW automobiles are priced a bit higher. 📈
For its newer markets, BMW introduced its smaller models with competitive prices on its entry-level vehicles. In addition, it offers financial services like loans and EMI to its customers.
Place
BMW has manufacturing facilities spread over ten countries, including Brazil, China, the USA, Germany, Austria, and South Africa. It also carries out local assembly operations in countries like Egypt, Russia, Malaysia, Indonesia, and Thailand. 🌍
In addition, BMW has expanded subsidiaries across the globe in areas like research and development, financial services, dealerships, and agency, networks, and sales.
QUICK FACT- BMW set up its first manufacturing unit in Bavaria Munich. Munich also hosts the headquarters of the company.
Promotion
As discussed previously, BMW and the automotive sector are notorious for aggressive advertising through media channels like TV, billboards, social media, etc.
The company also sponsors a lot of rally racing events and other sports events. BMW is associated with the PGA Championship, the South Africa National Rugby team, the F1 races, and other such events. Besides, the company also participates in the superbike racing category.
The fan following of such sports events across the globe is massive, and that adds to the advantage of BMW.
BMW’s Top Campaigns
BMW congratulating Audi
In 2006, BMW released an ad for its three series, congratulating Audi for being the ‘South African Car of the Year.’ Under the congratulations, the company signed with ‘From the winner of the world car of the year award 2006’.
BMW with Coachella
In 2019 BMW and Coachella collaborated with each other along with Khalid as their artist partner for the ‘Road to Coachella. This venture fetched them the ‘Grand Winner in the 2020 MUSE Creative Award’.🏆
The Dee Movie
In early 2023, BMW came up with its latest vision vehicle- ‘The BMW i Vision Dee,’ and collaborated with Arnold Schwarzenegger from Hollywood. The vehicle is also called the ‘Digital Emotional Experience’ and is said to be the customer’s ultimate companion in any reality.
The Last Day
One of the most iconic and sarcastic campaigns of BMW was ‘The Last Day,’ released at the retirement of Dieter Zetsche, the CEO of Mercedes.
At the end of the ad campaign, Zetsche can be seen getting out with a BMW i8 Roadster from his garage with the slogan ‘free at last’ appearing on the screen.
Ultimate Racetrack
The campaign was released eight years ago, featuring the BMW M4 on the ‘ultimate racetrack,’ and still remains one of the most loved BMW ad campaigns. Curious about the ‘ultimate racetrack’? Go check out the campaign on YouTube!🏎️
Key takeaways
BMW has been impressive with its flexibility to match up with the changing times. ✅️
It keeps experimenting with its marketing strategies to maintain its consumer base and loyalty.
If you are planning to start a luxury brand yourself, why not learn from BMW’s story!👍
FAQs
What advantage does BMW have over its competitors?
Flexibility in the company’s production structures adds to the advantage of the company. The company can engage in the production of a variety of drive types and vehicle models from a single production line.
BMW also emphasizes rapid responsiveness and adaptability, which helps it overcome supply bottlenecks, shortages, and demand fluctuations more effectively.
How does BMW engage with its customers?
In terms of marketing strategy, BMW engages in a wide range of activities, from traditional print and media advertising to real-time events and experiences.
The company also upgrades its marketing strategy with changing trends, so we see a massive response from customers on BMW’s social media.
Why is BMW successful?
BMW has continuously incorporated innovation and technology not only in its products but also in its marketing and customer engagement.
We can see the way it dealt with the COVID-19 pandemic and still managed to record significant sales by shifting to a contactless process while maintaining its commitment to the customers’ needs.
Hence, the company’s consistency and innovation are what keeps it at the top.
References:
https://www.britannica.com/topic/BMW
https://www.bmwgroup.com/en/investor-relations/facts-and-figures.html
https://www.forbes.com/companies/bmw-group/?sh=42f4542c3e9c
https://www.bmwgroup.com/en/news/general/2021/marketingstrategie.html
https://www.bmwblog.com/2022/03/19/bmw-3-series-sales-figures/
https://www.gearpatrol.com/cars/a567934/bmw-motorcycle-models/
https://www.webbikeworld.com/bmws-2022-bike-sales-reach-all-time-record-high/
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