Table of content
1.0 Situation Analysis/Current Marketing Mix 1.1Current Product BMW M5 Sedan as a combination of business sedan and sports car, it has efficient performance and elegant exterior. The high quality paintwork and flowing silhouette show its elegance (Exterior Design 2013). Moreover , BMW M5 consumes 30 percent less fuel than previous models by using M TwinPower Turbo V8 engine (M TwinPower Turbo V8 engine. 2013) and 7-speed M double-clutch transmission with Drivelogic (7-speed M double-clutch transmission with Drivelogic. 2013); it reveals its efficient performance. Its efficient performance, elegant exterior and the BMW logo are the element which makes BMW M5 unique and different from its competitors. BMW logo is composed of Bavarian national colors and three letters (BMW 2010). Therefore the logo is the distinctive aspects of labeling for BMW M5, it display on both exterior and interior of the car (Design 2013). There are two main advantages that consumers can benefit from buying BMW M5. As a transport for everyday use, it has spacious interior which allows the driver travel with up to four passengers (Interior Design 2013), consumers can get rid of the crowding public transport and travel comfortably. As a status symbol, its elegant exterior and dazzling BMW logo enhance their owners’ status and confidence. In fact, consumers can get more than a car from purchasing BMW M5 as there are some services come with the car, such as BMW Routine Maintenance Check, BMW Airport Service and BMW Roadside Assistance (Service and Warranties 2013). The newest BMW M5 was introduced in February 2012 (BMW M5, E28 through
F10 2011). There are six M5 models were introduced since 1985; they are M5(E28), M5(E34), M5(E39), M5(E60), M5(F10) and the new one – 2012 M5 (BMW M5 Models 2012). The main users of BMW M5 are consumers. They purchase it as a daily transport. BMW M5 is a product with high involvement and perceived risk, because consumer has to use it for a long time and its price is very high compared with other products. Hence consumers will spend a long time to do some external research to avoid financial risk such as visiting car show and website, and reading car magazines (Hoyer and Maclnnis 2010, 210). If they cannot find it, they will most likely to wait for a new version of BMW M5 but not to accept a substitute product because of brand-loyalty (Hoyer and Maclnnis 2010, 258). 1.2Current Pricing BMW M5 exists in monopolistic competition since the market is full of competitors who offer cars in different prices (Elliott, Rundle-Thiele and Waller 2012, 49). BMW M5 is a price inelastic good which means changing in price leads to the percentage change in quantity demanded smaller than the percentage change in price (Elliott, Rundle-Thiele and Waller 2012, 265). Since when the price of BMW M5 increase, consumers are not easy to move to other brands or other cars . This is because they have brand loyalty and they think BMW M5 is unique. Consumers’ purchase decision can be based on price, image, features or quality. BMW M5 as a luxury, the expected price of this car is high
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- Three '11
- Marketing, BMW M5