Question:
Discuss about the Marketing Plan for New BMW M4 CS.
Over the years the BMW Company has established itself as one of the world’s leading provider of elegant high-performance cars. The company will be releasing its new BMW M4 CS on the fourth quarter of the year 2017 and the car promises to deliver on all fronts in which the BMW brand is famous for (BMW M4 CS, 2017). The M4 CS is a part of the BMW M GmbH model of cars that keep the companies tradition of high performance, elegantly designed luxurious vehicles. The origins of the M4 CS can be traced back to the BMW M3 Evolution of the popular E30 Series (Dolor, 2017). To ensure high standards of quality and that the car maintains its ascribed value, the production run will be limited and implying that the model will not be mass produced.
The gene of the BMW M4 CS from the BMW M4 GTS line is seamlessly united with the operational day to day suitability of the popular four-seat BMW M4 Coupe (Dolor, 2017). With a complete integration of M series technologies and elegant aerodynamic lightweight carbon fiber parts, the M4 CS can effectively complete the famous North loop of Nürburgring in 7.38 minutes without affecting its performance (Dolor, 2017). This car promises to redefine the concept of high performance in the street. Based on the information available on the M4 CS and BMW marketing data, this paper will provide an effective marketing plan for the BMW M4 CS. In developing the marketing plan the paper will integrate elements of the marketing concept, therefore, ensuring the delivery of an all-rounded marketing strategy for the company to employ.
In the development of an effective marketing plan, the company needs to first establish its marketing objectives. This will serve to ensure that the marketing plan is in line with the company’s marketing objectives. Due to the fact that the BMW M4 CS series is a new product in the market:
The BMW Company utilizes a single segment marketing strategy (BMW Segmentation, Targeting, and Positioning, 2017). In this strategy, the company develops high-end vehicles which are sold to a wealthy clientele base (BMW Segmentation, Targeting, and Positioning, 2017). As indicated in the introductory section of the paper, the BMW M4 CS is a high-end luxury car that was designed and developed with the principles of the BMW brand in mind. With a price tag of $211, 610 before on-road costs which stand at $80,000, the company should primarily target its high-end clientele consumer base which consists of individuals in the upper-class echelons of society (Tripolone, 2017).
This is largely due to the fact that a significant percentage of the society would not be able to afford the car given its off-road maintenance cost. The sporty interior which serves to contribute to the athletic exclusivity of the car also serves to make it suitable the company to target wealthy individuals who are sports lovers. Based on the information provided above it is logical to conclude that the target market for the company should be men and women who are aged between 28-50 years and exists in the upper-class regions of society.
Once the organization has identified the target market for its product, the next step in any effective marketing strategy is informing the target market of the existence of the product. In doing this the organization seeks to educate the consumer on the benefits of the product and why he/she should acquire the product (Baker, & Saren, 2016). This section of the paper will provide a discussion on the various ways through which the company can be able to reach its consumer base, the type of message the company should communicate and the manner of persuading the consumer to purchase the product.
Communication mediums are decided upon based on the target clientele base that the company seeks to sell its product to. Based on this, the company should utilize both conventional and non-conventional media in marketing the BMW M4 CS. Under the umbrella of conventional media, the company should utilize both T.V advertisements and magazine publications. Studies into vehicle sales have revealed that the use f television advertisements are one of the most effective avenues of marketing as through this avenue the company is able to exhibit the vehicle in its operational state (Kretchmer, 2004).
The use of television advertisements will also enable the company to communicate to a significantly larger clientele base. Studies into consumer marketing have also revealed that a significant percentage of individuals who are aged 45 and above learn about new products primarily from television advertisements. The BMW M4 CS can also be marketed through magazine advertisements.
According to the studies on vehicle sales, advertisements through magazines are the second most popular avenues through which motor vehicles are sold due to a large number of car lovers who subscribe to these magazines. The company can also market itself through social media platforms like Instagram where a significant percentage of young wealthy individuals interact. By marketing itself in social media platforms and websites the company will be able to effectively educate the target consumer base on the BMW M4 CS and as a result increase awareness of the product.
Another integral element in marketing is the type of message that the company communicates to the consumer. The message is important as it helps to educate the target clientele base on the various features of the products and why they should purchase it. In developing the message the company should consider the five marketing concepts and how they relate with the product being sold. This section of the paper creates a marketing message for the BMW M4 CS that incorporates the five marketing concepts.
The primary idea behind the product concept of marketing is that consumers are more likely to favor products which are highly affordable and available (Dibb et al., 2005). However, in dealing with luxurious goods (goods of considerable value) the product concepts holds that the market is more likely to favor goods that are exclusive and expensive (Atwal, & Williams, 2017). Based on this and the fact that the BMW M4 CS will be on a limited production run, it is logical to conclude that with regards to the production concept, the message for the M4 CS should be exclusivity.
Studies into the purchasing behavior of the rich have revealed that the more limited a particular product is in the market the more appealing the product will be to them (Vigneron, & Johnson, 2009). Therefore by limiting the production run for the vehicle, the BMW company will make the car more appealing to the wealthy. Launching the product under a limited production line will also serve to inflate its ascribed value as not a lot of people will be able to acquire one. This will ensure that the price tag that the company has set on the car is not watered down due to buyer apathy.
The principle of product concept holds that consumers are more likely to favor products that provide the most in terms of performance, quality and innovative feature (Houston, 2016). The BMW Company has developed a reputation for delivering quality products that have the latest in innovation and are capable of performing exemplary (Fournier, & Dolan, 2007). These attributes have also been impacted on the BMW M4 CS which as indicated is capable of completing the North loop in 7.38 minutes without affecting its operational usability.
This is considered to be quite impressive with regards to the car’s performance. The car is also capable of accelerating from 0-100km/h in 3.9 seconds with a maximum power output of 338(460)/6.250* kW (Dolor, 2017). The performance of the car is also enhanced by the fact that it utilizes a high-performance M TwinPower Turbo 6-cylinder inline petrol engine that has a torque capacity of 600 Nm making the BMW M4 CS capable of reaching top speeds of 280km/h (Dolor, 2017). The car’s high-performance levels are also driven by its electromechanical M Servotronic steering, a sporty M double clutch system and the Active M Differential (Dolor, 2017). These innovations make the car perform exceptionally both on the road and on the track. Based on this it is logical to conclude that the BMW M4 CS meets all the criteria set by the product concept and thus the message should emphasize its performance, innovations and the quality of the car.
The marketing concept holds that for an organization to achieve its goals it needs to be able to know what the target market requires and delivering the product in a manner that is better than the competitors (Foreman, & Money, 2015). Over the years, the BMW company has established itself as a major player in the luxury automotive sector and as a result of this, it has been able to develop an in-depth understanding of the needs of consumers who occupy the high-end segments. The BMW M4 CS is an upgrade of the existing BMW M4 series.
The decision to develop the M4 CS was made after the organization conducted in-depth research into the needs of the consumer segment it was servicing with the M4 series. Based on this it is logical to conclude that the BMW M4 CS is capable of effectively satisfying the needs of its target consumer base in a manner that is better than that of the existing competition.
The sales concept holds that clients will not purchase enough of a company’s products unless the company undertakes a large scale promotion and selling campaign (Armstrong et al., 2015). However, this concept does not apply when dealing with products that are under a limited production run. Products under a limited production run are not meant for the mass market but a select category of individuals and as a result of this, there is no need of engaging in massive marketing campaigns.
When selling the BMW M4 CS, the company should focus more on establishing relationships with its targeted clientele base than on sales transaction. This will help ensure the product appeals more to the targeted high-end clientele base. Studies into the purchase behaviors of wealthy individuals have indicated that wealthy individuals prefer organizations that seek to establish long-term relationships with them than those whose primary objectives is to make sales (Kapferer, & Bastien, 2012).
The final step of any effective marketing plan is determining how the company would make the sale to the consumer. To determine how a company should best sell its products one review the products positioning in the market, the targeted consumer base and the market in which the company operates. As already indicated in the paper, the BMW M4 CS is meant for a limited high-end clientele base. The company has positioned the product as an exclusive high-performance vehicle that is for the wealthy individuals in society.
Based on this, the BMW M4 CS should be sold in car dealerships that cater to a high-end consumer base. This will ensure that the car is sold in an environment its target clientele base can be found. The product should also be sold on a made to order basis where clients purchase the cars when they are still on the assembly line. This has proven to be an effective marketing strategy for high-end products as the manufacturer is able to customize the product to meet the specific client’s requirements (Chandon, Laurent, & Valette-Florence, 2016). Finally, the car should be sold in markets that are known to have a demand for high-end vehicles and where the company already has a market presence (Oliver et al., 2010). Some of the countries where the BMW M4 CS can be sold are Dubai and the greater Middle East region, China, the U.S, and Russia. By focusing on these countries the company will be able to achieve success with the marketing of the BMW M4 CS.
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. Pearson Education.
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Atwal, G., & Williams, A. (2017). Luxury brand marketing–the experience is everything!. In Advances in Luxury Brand Management (pp. 43-57). Palgrave Macmillan, Cham.
Chandon, J. L., Laurent, G., & Valette-Florence, P. (2016). Pursuing the concept of luxury: Introduction to the JBR Special Issue on “Luxury Marketing from Tradition to Innovation”. Journal of Business Research, 69(1), 299-303.
Vigneron, F., & Johnson, L. W. (2009). A review and a conceptual framework of prestige-seeking consumer behavior. Academy of Marketing Science Review, 1999, 1.
Foreman, S. K., & Money, A. H. (2015). Internal marketing: concepts, measurement and application. Journal of marketing management, 11(8), 755-768.
Dibb, S., Simkin, L., Pride, W. M., & Ferrell, O. C. (2005). Marketing: Concepts and strategies (p. 850). Houghton Mifflin.
Fournier, S., & Dolan, R. J. (2007). Launching the BMW Z3 roadster. Harvard Business School Publishing.
Oliver, J. D., & Rosen, D. E. (2010). Applying the environmental propensity framework: A segmented approach to hybrid electric vehicle marketing strategies. Journal of Marketing Theory and Practice, 18(4), 377-393.
Kretchmer, S. B. (2004). Advertainment: The evolution of product placement as a mass media marketing strategy. Journal of Promotion Management, 10(1-2), 37-54.
Kapferer, J. N., & Bastien, V. (2012). The luxury strategy: break the rules of marketing to build luxury brands. Kogan page publishers.
Tripolone, D. (2017, July 31). New BMW M4 CS price revealed. Retrieved October 04, 2017, from https://www.drive.com.au/motor-news/more-powerful-bmw-m4-s-price-revealed-64770.html
Dolor, L. I. ( 2017). ADRENALINE COMES WITH 4 SEATS. Retrieved October 04, 2017, from https://www.bmw.com/en/all-models/m-series/m4-coupe/2017/bmw-m4-cs.html
BMW Segmentation, Targeting and Positioning. (2017, January 06). Retrieved October 04, 2017, from https://research-methodology.net/bmw-segmentation-targeting-and-positioning/
BMW M4 CS. (2017). Retrieved October 04, 2017, from https://www.bmwblog.com/tag/bmw-m4-cs/
Houston, F. S. (2016). The marketing concept: what it is and what it is not. The Journal of Marketing, 81-87.
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