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Marketing Profile of a Company: BMW vs Porsche

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University of National and World Economy Marketing profile of a company vs. Course project in MARKETING * Philip Madanski, faculty Number. 28114070 * Lyubcho Mishkov, faculty Number. 28114062 Supervisor: assist. Prof. Antoaneta Duneshka Ph.D. Sofia, 2010 Table of Contents List of abbreviations 1 BMW 2 Company overview 3 Marketing Environment Analysis 4 Macro Environment 5 Micro Environment 6 Segmentation 7 Targeting 8 Target Market 1 9 Target Market 2 10 Positioning 10 Marketing Mix 11 Marketing Mix 1 12 Marketing Mix 2 14 Marketing Organization 15 Porsche 15 Company overview 15 Marketing Environment Analysis 18 Macro Environment 18 Micro Environment 18 Segmentation 20 Targeting 21 Positioning 22 Marketing Mix 23 Marketing Organization 25 References 26 Appendix A 27 Appendix B 28 List of abbreviations ACEA Association des Constructeurs Europ´┐Żens d'Automobiles (fr.) = European Automobile Manufacturers Association AG Aktiengesellschaft (ger.) = Joint-stock company BMW Bayerische Motoren Werke (ger.) = Bavarian Motor Works CBS Condition Based Service CEO Chief Executive Officer DMA Decision-making authority Dr. Ing. h. c. F. Porsche AG Doktor Ingenieurhonoris causa Ferdinand Porsche Aktiengessellschaft) EMAS Eco-Management and Audit Scheme EU European Union EUR Euro GmbH Gesellschaft mit beschr´┐Żnkter Haftung (ger.) = Public Limited Company ISO International Organization for Standardization KG Kommanditgesellschaft (ger.)= private limited partnership MM Marketing Mix PESTLE Political, Economic, Socio-cultural, Technological, Legal and Environmental Factors SCM Supply-chain management SE Societas Europea = European Public Company SUV Sport Utility Vehicle US United States VALS Values, Attitudes and Lifestyles VW Volkswagen BMW BMW was founded in Munich, Germany in 1916 as the 'Bayerische Flugzeugwerke AG' (BFW). In 1917, the Bayerishe Motoren Werke GmbH (or in English the Bavarian Motor Works) was created. BMW, as the company is now known, initially concentrated on the development and production of aircraft engines during World War I, building a reputation for reliability and excellence. In 1923 BMW built its first motorcycle and in 1928 the company's success story as an automobile manufacturer began with the acquisition of the Eisenach vehicle factory. ...read more.


It is for this reason why BMW values the "premise sector" so such because this would allow consumers to try their brands at low risk and price. Marketing Mix 2 * Product strategies BMW offers an array of Authority Vehicles, including the BMW 3 Series, BMW 5 Series, BMW X3, BMW X5 and a number of BMW motorcycles. The designs have been developed and perfected over 50 years of working together with authorities around the world, so that they represent the state of the art in safety, cost-effectiveness and technology. And it is not only the design that matters - BMW Authority Vehicles are equipped with some additional, special devices and systems - like signalization, video system, iDrive, roof bar and so on. * Distribution Strategies BMW has almost the same strategy for distributing its Authorities, as it was for the previous target market. The company has earned its reputation for producing the highest quality car with the highest level of customer service. However, without its unique strategy for managing the supply chain at its production facilities, the company would not be able to deliver its esteemed luxury and safe Authority models to consumers at a reasonable time or cost. * Communication strategies The key factor for the promotion and implementation of these products could be the need of some authorities to have a secure and reliable partner in an emergency case. They can find these qualities in the automobiles of BMW. * Pricing Strategies As the models offered for common and for special use are very similar, it is normal that the pricing strategies are also similar. There are, though, because of the German legislation some tax reliefs for these cars, which make them cheaper than the average BMW. Marketing Organization The marketing organization is a very important part of the overall business activity. Organizing the business contributes for the leadership of the company. ...read more.


In Germany, Austria and Switzerland Porsche dealers receive deliveries once or twice a day from the central spare parts warehouse in Ludwigsburg, Germany. In all other countries, supply is handled by import dealers. Any breakdown in this system can be felt all the way to bottom line. To ensure these process functions seamlessly, Porsche chose mySAP Supply chain Management - a solution which attributes it knows intimately: speed, flexibility and reliability. The mySAP SCM implementation enabled Porsche to optimize and restructure spare parts management company-wide. Communication strategy Communication and Image - Personalization of Porsche and Wiedeking By adapting a smart communication strategy, Wiedeking is able to diminish any possible negative effects on the brand Porsche. At his public appearances, the top manager shows rough edges, tries to complete the image of manhood in the automobile business and sticks up for the production location Germany - even if those are only words and not facts. The media star Wiedeking is without any doubt the main sympathy carrier not only for Porsche clients. Marketing Organization Today the Group owns twelve sales subsidiaries, several regional offices in growth markets and 600 largely exclusive dealerships in a total of 102 markets. Porsche's sales strategy, similar to most car manufacturers, requires a network of independent dealers. Each dealer has their own commercial interests and business structure and acts as a middle man between Porsche's German headquarters and the end-consumer. In developed markets like North America and Europe this works well. Porsche maintains an extensive knowledge of the Buyer since information flows freely between the dealerships, buyers, and headquarters. However, in emerging Asian markets this market relationship is missing. Having a middle man seems to be an obstacle to obtaining any essential data the Buyer may provide. Currently, the dealers guard their direct relationship with the Buyer, holding it as their own strategic business advantage. They see no incentive in sharing Buyer information with Porsche. The direct flow of Buyer information is critical for future product development, marketing success, and creating greater overall value for the company, dealers, and eventually the Buyers themselves. ...read more.

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