BMW Group sales for the year 2017 depict a very successful picture of the company. However, there was a small hitch because the number of BMW brands sold was less compared to the previous year, and Mercedes overtook them as the leader in premium brands of the year (Hamilton & Webster, 2018). BMW brands increased sales by four percent while Mercedes Benz grew the sales by nine percent. The BMW Group, through its brands that include BMW, Mini, and Rolls-Royce, as well as BMW Motorrad, made it successful in the number of sales across the globe for the past year.
The BMW MINI, which the second-largest brand, achieved a record in the number of sales as it grew by three percent compared to the previous year. Based on the figures, the company is the best in automobiles closely followed by Mercedes Benz. It has a market share of twenty-eight percent market shares in the United States, twenty-five percent market shares in Germany, twenty-one percent in Europe, and the number of sales in the Asian region has been on the increase.
The BMW Group is about to launch the model car MINI, and there is a challenge in getting the right advertising agency to spearhead the process (Hamilton & Webster, 2018). The stiff competition in the automobile industry requires a perfect strategy and timing for the new brand to conquer the market. The cost of an advertisement in the United States has been increasing even though the Gross Domestic Product has remained low. Many agencies are available for selection, but the company needs to shortlist and view their presentations, putting into consideration the cost and benefit analysis.
BMW Group is the leading luxury automotive company that produces and sells cars motorcycles across the globe. The strengths of the company are numerous that have it the best brand in many years. BMW is among the most treasured automotive brands, and the company underwent diversification that has made it able to receive revenue from many streams. The company is always researching and investing in innovation to overcome challenges and trends in the future. The recent partnership with China and India and the first for such a big automobile brand has drastically increased the number of brands sold in Asia. The company will soon launch hybrid models that will use alternative sources of fuel, such as natural gas and electricity.
Many cars have been recalled owing to technical functionality. This should not be the case for an established group like BMW because it is likely to affect the image negatively. The company has ignored to produce cars that catch the eye of the younger generation because very few will consider buying a premium car.
The BMW Group needs to increase its product portfolio and introduce new series under several segments. This gives potential customers options to choose from, thereby increasing the overall sales. The company has room to expand into new markets by targeting developing economies to remain on top of the revenue chain. India is a potential market and offers room for a good return on investment based on the number of citizens that are willing to buy premium brand vehicles.
The twenty-first century introduced stylish ad low-cost companies that have presented a significant competition alongside perennial premium car producers like Mercedes and Audi. The high price of the BMW brands has been a factor because people have become price-conscious.
The company has responded well by partnering with China to capture the Asian market, thereby increasing the amount of revenue for the past year (Kiley, 2004). The automaker has moved away from the combustion engine and taken up battery technology in a bid to increase the production of electric and hybrid cars into the market, thereby handling the threat of rising fuel costs.
The BMW-MINI cooper needs to take several strategies to conquer the market. The first electric car among the BMW brands has an attractive design and offers more safety for the users. The mini-cooper has no specific age group even though recently, it has become a target for a lightly young and the old generation (Pride & Ferrell, 2006). Micromarketing strategies, as compared to mass marketing, is advisable to enable the new brand to win the market because this is the only way you can reach the ordinary people directly. The company should focus on small gatherings such as sports arenas and digital billboards to catch the eyes of both the youths and the old.
The recent investment in technology by BMW has increased its brand equity in the market. Innovation is the reason behind the rise of BMW Mini cars because both generations love it. The company should increase its focus on strategic realignments to capture more developing markets and increase revenue. The investment in hybrid cars goes towards reducing global warming and clear support of the sustainable development goals as set by the United Nations. The hybrid cars produced at the company will continue being on high demand as more people run away from fuel-consuming vehicles.
Hamilton, L. & Webster, P. (2018). The international business environment. Oxford, United Kingdom: Oxford University Press.
Kiley, D. (2004). Driven Inside BMW, the most admired car company in the world. Hoboken, N.J.: John Wiley. https://epdf.pub/driven-inside-bmw-the-most-admired-car-company-in-the-world.html
Pride, W. & Ferrell, O. (2006). Marketing: concepts and strategies. Boston, MA; New York: Houghton Mifflin. https://iedunote.com/marketing-concept
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