An Analysis of the BMW automobiles
BMW, which is an abbreviation for Bavarian Motor Works, is a German multinational company founded in 1916. The company produces luxury motorcycles, cars, and engines with its headquarters in Munich. The company’s bikes are under the BMW Motorrad. Over the years, the company has won many racing championships (Dong, HaBich & Jayoung, 25). Despite the availability of many other car brands, BMW has proved itself valuable in the industry. The changing societies needs in response to digital technology calls for companies to come up with products that will favour their target markets. While most of the automobiles industries have faced challenges and troubles while adapting to the changing client’s needs, BMW has grown its business smoothly and efficiently This paper will address the brand’s relationship with society as well as how it promotes itself and its products.
The sociocultural factors surrounding business are essential to its operations. Companies intending to run their activities on the global environment should look at the cultural and social changes. The recent years have brought significant changes in the culture of the societies. The adoption of digital technology has led to these changes in society. It is changing the lifestyles of people, thus giving rise to new trends (Kingsnorth, 31). All over the world, the relationship between business and society is changing. Most business now focuses on building long-lasting relationships with their clients and employees. A majority of the automobiles industries now use modern technology to offer superior excellence to their clients (Dong & HaBich & Jayoung, 46). For instance, BMW adopted a premium strategy to meet the client’s needs. With these changes, people now want cars that have advanced technology and also provide better driving experiences. In 2018, there was an increase in the demand for electric vehicles evident by the increased sales of electric car brands such as Tesla and BMW (Kingsnorth, 48). Electrics cars offer fuel efficiency and are also environmental friendly.
As a corporate Citizen, the BMW Group has engaged itself in several cultural initiatives globally for almost 50 years. Since 2003 the “culture mobile” which is an employee initiative has drawn the attention of thousands of the employees to the cultural programs of the company while also inviting them to participate (Kim et al., 65). According to Dong, HaBich & Jayoung, 64, a company attains social sustainability by respecting the needs of the society which it operates. In line with this BMW Group appreciates and understand that there are risks associated if they fail to adhere to social sustainability (Hitesh, 2). Such risks may sometimes result in the loss of reputation, which affects rage long term survival of the firm in the market. BMW is known for the strong relationship it develops within the society it operates. BMW employees are encouraged to participate in social activities (Kingsnorth, 53).BMW also invests in projects that are beneficial to the people as well as the communities. Social engagement is an essential part of the company’s Corporate Social Responsibility. Social engagement has supported intercultural relationships for many years now (Kingsnorth, 37).In partnership with the UN Alliance of civilization, the company also awards the most successful projects. The company also rewards its employees from their contribution to social responsibility. Together with BMW Herbert Quant foundation, the company works to empower the lives of the people in the society where they operate (Kingsnorth 62). Peoples taste has dramatically changed; the focus on aesthetics is now considered necessary. Automobiles companies now produce attractive cars. The Night Sky by BMW targeted the beauty and style lovers. Focusing on beauty and style helps maintain their sales levels in most of their target markets.
BMW is committed to improving factors such as education and health within the communities they operate. The company, together with its partners, work to come up with working solutions to equal job opportunities and also non-formal education forums (Marolda, Kenneth, Jorge, Charleston, 23).BMW has a long-lasting commitment to supporting education across the UK. The group provides the students and teachers with free curriculum-linked as well as awards winning educational resources. The resources for both primary and secondary schools cover topics such as road safety, career information on and sustainable design ad technology, among others. The company has also come up with programs such as “Safe on the Streets” that bring the safety on the roads for 7-11-year-olds (Marolda et al., 32). Another program is the intelligent living which is an interactive learning resource that helps students understand sustainably and its relevance to the way their life. The company has also entered into partnerships with several programs (Marolda et al., 35.).The company is proud to continue supporting numerous charity events and community projects as part of its Corporate Social Responsibility. For instance, their partnership with the Alzheimer’s society pledged to raise $200,000 for the Alzheimer society between 2019 -2020 (Marolda et al., 37).The side by side project link people living with dementia to help them keep doing the things they love and also feel included in the activities of the communities.
The apprenticeship scheme by BMW is a program for young society members who want to have real-life experiences in a career. Trainees that pass the requirement can earn a position as BMW full-time employees. Some of the apprenticeship programs offered by the company are body shop apprenticeship, motor vehicle technician, genius trainee program, among others (Dong, HaBich & Jayoung, 36). Each of the plans offers essential skills to the trainees. This scheme decreased the unemployment rate among the youths aged 15-24 in Germany, illustrating that the company helps to reduce the unemployment rate among the society it operates.
Despite the positivity that comes with the operation of the BMW Company, there are also negative impacts directed towards the people within the societies they operate. BMW has been under investigation over the installation of a defect device since they show less emission than the reality (Marolda et al., 54). Also, a study by Dong, HaBich &Jayoung, 46 illustrate that BMW cars release ten times as much nitrogen oxide allowed in public. High amounts of nitrogen oxide affect the health of human beings as it increases the risk of coughing, lung infections, flu and respiratory problems (Marolda et al., 56).In 2013, BMW recalled 294,000 cars in the UK claiming they can easily catch fire. The BBC watchdog also investigated BMW cars because they can stop while on the road, something that will lead to road accidents. These negative factors contribute to the public distrust towards the company (Marolda et al., 59).BMW has both positive and negative effects on the societies within which they operate.
The business world continues to make efforts towards globalizing the market. Global players like BMW continue to articulate the market strategy to come up with valuable productions that will serve the needs of the clients (Kingsnorth, 56). The firm sells its products to people from different socioeconomic segments, thus emphasizing the premium segments. The company sells its products to clients who value luxury, quality, and performance as it builds such features into the productions they make (Kingsnorth, 64). Concentrating on the premium segments on a global scale makes the company competitive in the industry. The trendsetting and attractive products focus on the well-off clients demonstrates the achievements of the company’s strategy.
The new requirements for a green environment and clean energy have forced BMW to alter their strategies to meet environmental demands. Since 1978, the company has been testing the automobiles fueled with hydrogen, which demonstrates its future mindset and the innovative leadership (Yuying Qingrun, 29). The firm aims at valuing and catering for competitive advantage. While marketing disciplines are all-round, the firm’s strategy reflects on the effectiveness of the plan.
Besides the premium marketing strategy, the company has moved its position to the “sheer driving pleasure” from the “ultimate driving machine”(Yuying &Qingrun, 37). This shift reflects movements from the emphasis of the car’s performance to the clients’ involvement and considering emotional factors. The firm is making steps towards underpinning the new communication theme that will integrate the high performance of the products into emotionally sensual communication globally. The emotional marketing perspective, alongside the premium advertising, will give the firm a higher competitive advantage.
Generally, the premium marketing strategy and psychological marketing have given the firm a higher status in the economy and a stronger position in leadership. The BMW firm looks further past its profitability by paying attention to the Corporate Social responsibility activities, particularly in responding to environmental obligations.
The brand is among the best automobile companies in the world; it is renowned for its exceptional craftsmanship, reliability, and high-quality product offering. It is one of the “Big 3” car brands in Germany alongside Mercedes and Audi. The brand sold more than 115,000 motorcycles and more than 1.95 million cars in 2013 (Kingsnorth, 65). As the years go by, the company hit the sales record levels, and the demand for luxury cars and motorcycles remain high. Millions of people globally yearn to own these luxury vehicles making it one of the most revered and established car brands. But how is it that this company established almost a decade ago still maintains its global appeal.
Studies by Kim et al., 45 indicate that the most crucial factor is the products the company offers. The company has a wide range of products ranging from exclusive and more expensive models to cheaper and more affordable models. The brands appeal to people from a variety of target market that is both the well off and less well-off clients. The company offers more than five car series: 1, 3, 5, and 7 and X alongside the other car series. All the car series have unique driving experiences with unique features. However, people who have had the opportunity to drive the BMW reveal that driving it feels great no matter the series you are driving. Some of the brand’s most prominent features include Powerful engines, Appealing body structure, excellent speed, and reliability, only to mention a few.
Another feature is that the car brand uses the right part designed for the car it is manufacturing. Companies such as Mercedes and Audi tied to other companies. For instance, Audi is related to Mitsubishi and Volkswagen, meaning they use parts from different companies to increase their profits and make savings. BMW customers understand they pay a little more for the higher quality models (Hitesh, 15). Superior craftsmanship is, therefore, a differentiating factor of the brand, making it challenging to match it with other car manufactures.
Continuous improvements of the processes, together with advancements in technology in the R&D are a significant competitive advantage of the firm. The firm has a policy that dictates that customer service is a growth driver of its growth in the industry. The company now serves over 150 countries globally; North America and Europe are the markets were about 65 % of the sales come from (Hitesh, 18). However, with the growth of developing nations like the Asian countries, the company is now focusing on these markets. According to the company’s CEO Herald Krueger, the company intends to further strengthen its position in the market by 2020. They plan to achieve these by increasing their sales volume to 2 million units annually by extending their global market.
Having a positive perception of your brand is priceless. Investments made on improving the experiences of the customers have made it possible for multi-location organizations like McDonald and the UPS store to position themselves as leaders in their industry (Kim et al., 54). Most consumers prefer these brands as they consider them consistent and credible. Having to build and maintain the position is a challenge. Better customer experiences translate to happy customers, which mean better equity of the Brand (Kingsnorth, 64.).BMW is one of the companies that are doing their social marketing process right. While reading through this essay, you are probably thinking of their “Ultimate Driving Machine” ads. Through the powerful marketing strategies, the unique values of the organization reach its customers
To sum up, BMW is one of the leading producers in automobiles. A noticeable amount of people claim that the brand is the best car manufacturer globally. In a world where there is a connection between the culture and the people in response to current challenges, global companies must recognize and works towards fulfilling their social responsibility. As the identity of BMW, the company focuses on initiating programs such as intercultural education and understanding, especially for young adults. Such programs are vital within the society they operate. Global international businesses need to keep an eye on the social and cultural environment within which they operate. The firms focus on safety; environment and quality have made it possible for the company to transit into a new mobility era. The Germany Company builds its presence as a supervising comfort as well as magnificent in style (Hitesh, 19). Responding positively to the unique purchasing behaviour of its clients made it possible for the company to achieve the intended performance and success. For some, BMW serves as a status symbol, while for others, it is they believe in the Mantra (Hitesh, 21). We can say that some are not only attracted to the brand because of their excellent productions but also their way of running things.BMW mostly targets affluent men and women within their target markets even though they also produce cars that favours the less affluent members of the society. The company also breaks the markets into segments where they can target their productions.
Works Cited
BMW Website.Retrieved from https://www.bmw.com/en/index.html
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Hitesh Bhasin. ”Marketing Strategy of BMW.BMW marketing strategy,”. (2018).Retrifrom. https://www.marketing91.com/marketing-strategy-bmw /
Kim, Hyun Jeong, Jong-Dae Kim, and Sazali Abidin. “BMW i Story: Revolutionizing Sustainable Mobility in Korea.” The Role of Corporate Sustainability in Asian Development. Springer, Cham, 2017. 87-117.
Kingsnorth, Simon. Digital marketing strategy: an integrated approach to online marketing. Kogan Page Publishers, 2019.
Yuying (Amelia) & Qingrun (Raina). “Global Marketing Strategy of BMW.” (2018) .Retrieved from https://globalmarketingprofessor.com/global-marketing-strategy-of-bmw/.