The Munich based Bayerische Motoren Werke (BMW) company has been focusing on a worldwide strategy that can best be described as mass customization, as it has been tailoring products, prices and distribution for customers’ personal selection in the premium brand market (Pride and Ferrell, 2006) and this has been affecting the external, internal and competitor business contexts.
Fuel price continues to increase and it always tends to impact the business opportunities of car manufacturers. However, it opens up new marketing opportunities for BMW hybrid and hydrogen cars since consumers tend to increasingly shift towards cheaper fuel types. Annual Report (2013) states that hybrid technology, along with its focus on increasing electrification, helps the company take a leading role in lowering carbon emissions and fuel consumption. Effective marketing communication will certainly help BMW to attract millions of customers worldwide to its cars.
There is growing interest towards ‘green’ products that cause no harm or relatively less harm to human health and his nature. People are becoming more concerned about green products (Soni, 2013). As consumers are more aware of the negative impacts of air pollution caused by vehicles, they show interest in green vehicles. It seems to be an opportunity for BMW cars for it’s hybrid and hydrogen cars.
In 2013, the number of passenger cars and light commercial vehicles sold globally has been increased by 5.1 per cent to reach to 76.5 million units, mainly driven by increased demands in USA and China (Annual Report, 2013). In the UK, the car market has remained in good shape, being boosted by a surprisingly strong economic recovery. The UK car market grew by 10.8 per cent to reach 2.3 million units of cars and light vehicles. This showed greater opportunity for BMW mainly for its highly differentiated cars. In order to exploit this emerging market opportunity, the marketing team of BMW will need to communicate regarding its product variants and unique value propositions it offers to its targeted audiences.