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Key Topics
- Marketing plan of BMW.
- Strategic Marketing Alternatives:
- Strategic Development Alternatives
- Select and Recommend Best Alternative
- Evaluate and Control
- Short term procedure
- Analyze the demand and supply gap in the market
- Long term procedure
- Invest in research to identify the needs of the market
- References
Marketing plan of BMW.
Strategic Marketing Alternatives:
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1. Tapping new markets like China which are moving towards Greener alternatives
Chinese markets have understood the importance of a sustainable environment. Hence, electric vehicles are expected to be one of the major products in demand in this market. Despite having the intention to move towards a more sustainable alternative for mobility, the country has had little on offer from the various automakers in this segment (Axel Krieger, et. al., 2012). Thus, this is a good opportunity for BMW to promote their electronic vehicles in the Chinese markets and work with them to get more profitable results. -
2. Tapping the European markets especially Spain and Italy
With stabilizing economies and increasing disposable income with the consumers, the European markets especially the Spain and Italy markets are favorable for BMW to increase sales. Thus investing in marketing in these vehicles is a beneficial alternative for the group. -
3. Use E-commerce and E-marketing in developing countries
The first alternative for strategic marketing is to consider eCommerce and e-marketing to develop a potential market for BMW in the developing countries by giving the users a taste of premium vehicles by using the internet without actually visiting the gallery. People consider premium vehicles out of reach and hence there is a lack of market potential for BMW in these countries. Once the concept of luxury vehicles is not alien to these markets there will be potential demand.
Strategic Development Alternatives
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Electronic Vehicles- The BMW profits on electric cars have seen a drop in lieu of increasing costs. The company must now focus on an alternative that will boost the sales of their electronic vehicles and finding newer markets for these vehicles as the current markets like the US are showing stalled sales figures (Elisabeth Behrmann, 2016). Many developing countries are moving towards cleaner environment alternatives and hence will have an increased demand for electric vehicles in the near future. This creates an opportunity for BMW to promote sales in these new markets and invest in improvising vehicles to meet market needs.
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Connectivity and technologically advancements in vehicles- The customer trends are indicating a need for mobile connectivity and technological innovations in automobiles. Being a leader in technology and innovations, the BMW group must consider the strategic alternative of investing in R&D.
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Optimization of Supply chain activities- BMW must work towards optimizing their supply chain by investing in new assembly plants to be established in strategic locations in the new markets. The optimized supply chain activities will help BMW reach the new markets before their competitors and gain competitive advantages (UK Essays, November 2013).
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Select and Recommend Best Alternative
The alternatives can be evaluated on the parameters of the potential investments and time for reaching the market and are ranked in order.
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1. The best alternative for BMW is to expand its electronic vehicle sales to newer markets like China. The Chinese government has expressed the intention to expand its business in the electronic cars category however the country has a serious lack of supply of vehicles or technology in this segment (Axel Krieger, et. al., 2012). This involves a lesser time to market compared to other alternatives. This alternative offer two benefits, the first is that the company will effectively be able to deal with the stalling sales of their electronic vehicles. Secondly, BMW will venture into this new market which holds the potential for being a strategic development center in the future.
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2. Tapping European markets involves lesser time for reaping returns and lower investments. The current scenario indicates a good potential market for the BMW group in these regions.
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3. Investing in Electric vehicles is the third-best alternative as there is a steady increase in the demand for greener vehicles and BMW must be ahead of its competitors to gain early advantages.
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4 & 5: Investing in e-marketing in developing economies and optimizing the supply chain activities in these areas go hand in hand. This will help BMW create new potential segments and increase profits.
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6. Finally, the company must look at investing in R&D for technological advancements in automobiles for achieving a competitive advantage in the long term. This alternative will require higher investments and also will have a greater time to reap benefits.
Evaluate and Control
The first and crucial step for evaluation is the identification of the goals of the adopted strategy (Seymour Tilles, 1963). The goal for BMW is to create profits in the short term and gain a competitive advantage in the long term.
Short term procedure
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Analyze the demand and supply gap in the market
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Set targets for profits and investments
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Periodically review the growth and sales trends against investment
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Revise the strategy as required for any control
Long term procedure
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Invest in research to identify the needs of the market
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Periodically review the development
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Analyze the extent to which the current developments satisfy the identified needs of the market
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Revise strategy to accommodate changing market needs.
These procedures can be used to evaluate the above mentioned short and long term alternatives.
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Axel Krieger, et. al. 2012. Recharging China’s electric-vehicle aspirations. [ONLINE] Available at: http://www.mckinsey.com/industries/automotive-and-assembly/our-insights/recharging-chinas-electric-vehicle-aspirations. [Accessed 4 November 2016].
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BMW Group. 2016a. BMW Group driving the transformation of individual mobility with its Strategy NUMBER ONE > Next. [ONLINE] Available at https://www.press.bmwgroup.com/global/article/detail/T0258269EN/bmw-group-driving-the-transformation-of-individual-mobility-with-its-strategy-number-one-next?language=en. [Accessed 4 November 2016]
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BMW Group. 2016b. BMW Group. [ONLINE] Available at https://www.bmwgroup.com/en/company.html. [Accessed 9 October 2016]
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BMW Group. 2016c. Investor Presentation, [ONLINE] Available at: https://www.bmwgroup.com/content/dam/bmw-group-websites/bmwgroup_com/ir/downloads/en/2016/InvestorPresent_February_2016_online.pdf. [Accessed 9 October 2016]
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Elisabeth Behrmann. 2016. BMW Warns Rising Costs to Hurt Profit on Electric Car Expansion. [ONLINE] Available at: http://www.bloomberg.com/news/articles/2016-11-04/bmw-third-quarter-profit-rises-on-suv-demand-in-europe-china. [Accessed 4 November 2016].
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John Dudovskiy. 2016. BMW Business Strategy and Competitive Advantage. [ONLINE] Available at http://research-methodology.net/bmw-unique-selling-proposition/. [Accessed 4 November 2016].
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Noel. 2009. Strengths & Competitive Advantage Sources-The BMW Group. [ONLINE] Available at http://www.noealtcorporateservices.com/apps/photos/photo?photoid=40252366. [Accessed 4 November 2016].
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Seymour Tilles. 1963. How to Evaluate Corporate Strategy. [ONLINE] Available at https://hbr.org/1963/07/how-to-evaluate-corporate-strategy. [Accessed 4 November 2016].
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UK Essays. 2013. Problems Facing Bmw Company Marketing Essay. [online]. Available at: https://www.ukessays.com/essays/marketing/problems-facing-bmw-company-marketing-essay.php?cref=1 [Accessed 4 November 2016].
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