BMW is a huge manufacturing organization known for its automobiles, motorcycles and financial services. As the case study shows, BMW’s market is doing well with its market share all around the world. It has a percentage of its market in America, North America, Germany and in the rest of Europe. With the help of the advertising agencies, BMW became more popular and the unit sales have been increasing for their products yearly.
The main issue that BMW faced was that there has been continuous increases in the total advertising expenditures across the country. The economic environment GDP plays a huge role in the sales of BMW. In the USA , there has been high changes in the percentage of the advertising expenses in comparison to the percentage in the GDP of the country.
SWOT Analysis
Strengths
BMW is has a strong brand name and a strong image with MINI Cooper and Rolls Royce. BMW’s continuous innovation and technology is a key strength to the company or organization as it launched the MINI with its different features. The uniqueness design of the MINI Cooper attracted the customers to purchase the car with its variety of colours and being able to customize it as they wish.
Weaknesses
Advertising is a key factor for success in any organization. The lack of knowledge and lack of financials with dealing with the budget is a weakness in any organization.
Opportunities
As BMW’s market share being around the world , it has the chance to expand more by increasing their innovation and technology in their cars. BMW can look to make new partnerships with other car manufacturers to promote the sale of new brand products. Low price cars with better innovation and technology can be an advantage for both BMW and Mini Cooper.
Threats
Since there are many other car industries around the world such as Mercedes, Audi and Lexus, BMW should look to future needs in the world of development and make sure their sales do not drop drastically. The percentage changes in the advertising expenses in the USA have been high, therefore this might affect BMW’s market sale.
BMW plans on hiring a new advertising agency for the promotion on its new model car MINI through selecting the best advertising agencies considering its cost and benefit analysis.
AS for BMW’s segmentation it classifies a group of customers having certain characteristics. This will be suitable for people who would prefer a small but comfortable car . The people targeted to purchase Mini are willing to spend a lot of money that will reflect their attitude and their status.
By selecting the marketing communication budget using the percentage-of-sales method , BMW can use this method to evaluate the performance of the company and identify key indicators of improvement that the BMW need over time.
Competitive parity method is another method BMW can use as the advertising expenditures of competitors are taken as the guidelines for adjusting their advertising budgets.
Objective and task method is where the specific objectives are defined, tasks required to achieve objectives are determined. Costs of performing task are estimated, then summed to create the promotional budget. Advertising objectives are fixed after intensive research.
Conclusion
Mini Cooper became one of the world’s preferred cars. It drew the attention of people around the world with it being present in so many different countries. Mini Cooper attracted the people around the globe, whether young or old people. By developing their innovative marketing strategies it will boost their sales of Mini.