BMW's Market Strategy Essay Example | Topics and Well Written Essays - 1500 words

BMW's Market Strategy - Essay Example As such, BMW’s market strategy will be evaluated and analyzed for optimal performance. Pros and cons of BMW’s market strategy BMW has been a leading auto manufacturing company that has maintained its niche market leadership through strategic market plans. The target segmentation and highly creative advertising have been its major elements of success. BMW has introduced different variants of its luxury cars to cater to the different segments of the market. The selective target marketing has helped it to exploit the requirements of people coming from myriad backgrounds. With the evolving times, people’s purchase behaviour underwent dramatic changes. While initially social class represented the high end BMW cars, consumers’ changing demands, vis-a-vis design variety, size, price, and style choices became the major factors in buying decisions. BMW started with 3, 5, and 7 series that only varied in size and not design. But 1980s was distinct in its populace of baby boomers, yuppies, and other fast upcoming segments of the market; the representatives of these segments had money to flaunt and expected new products and services from manufacturers. ... Shultz (2001) strongly believes that it is the end-users who now control the markets rather than the marketers. The fast changing demography of increasing pluralistic society has significantly impacted the market strategy. The socio-psychological paradigms have emerged as crucial elements that influence buying decisions. Personal choices representing people’s changing social status and family compulsions have become important issues. Indeed, according to Assael (1998), family is considered to be the most important consumption and decision making unit. A big comfortable family sedan may be required by affluent families for their family outing, or sleek and sophisticated fast paced machine may be the choice of new breed of young turks. The BMW’s decision to develop more categories within its various series was, therefore, not only necessary but also an extremely important ingredient of its strategic plans. It helped to penetrate new market and maintain its competitive adv antage in the market. Moreover, consumption pattern and lifestyle are intrinsically linked to the changing cultural paradigms in the contemporary environment of rapid globalization. Ennis (2009) argues that culture impacts the changing lifestyle of people and, consequently, influences their consumption pattern of the product. It is especially true for persons who are the main decision makers and control the finances. Furthermore, Kotler, Brown et al. (2010) assert that in the contemporary environment of globalization, brand creation and brand equity hugely facilitate in maintaining competitive leverage as the products are same. The brand provides the customer with a quality product which satisfies his or her needs and establishes a market