MARKETING PLAN

Marketing Plan

Marketing Plan

Introduction

This paper is based on the business plan regarding BMW and its strategies in relation to its competition and production.

BMW, one of the world's most renowned brands, is the short abbreviation for Bayerische Motoren Werke. The automobile is Germany based company; with headquarter in Munich, Germany. BMW deals in vast range of automobile, motorcycles, aircraft engine and many other premium brands including BMW mini and Rolls-Royce. The company has the representation in 140 and above countries, with total of 23 production facilities in more than 12 countries in the world (Frost 2002, 2).

BMW PESTAL Analysis

The PESTAL acts as a structure for analyzing a situation, and as the SWOT analysis is useful for reviewing strategy, position, company management, marketing proposal or idea. Completing a PESTAL analysis is simple, and convenient for discussion at a workshop, a brainstorming session or even as an exercise for team building games.

The factors analyzed in PESTAL are essentially external, it is advisable to perform such analysis by SWOT analysis, which is based on internal factors (strengths and weaknesses) and external (opportunities and threats). The PESTAL measures the market; SWOT measures a business unit, proposal or idea.

PESTAL analysis is sometimes extended to 7 factors, including Green, Legislative and Industry, thus becoming PESTELI. Many consider this extension unnecessary because if done correctly, the PESTAL naturally covers the additional factors (Legislative enter Political Economy and Ecological Industry dispersed among the four). Extension should be used only when something seems missing in the first four factors (Beauchamp, 2006, 26-36).

Politics

Politics keeps great influence on the performance of businesses. Therefore, stable politics is highly recommended for the national and international businesses to grow. For example, the government increases the value added tax from 16% to 19%. These increases in tax ultimately lead to the increase in the overall price of vehicles. This might reduce the demands of such cars in the market and may drop customer base.

Economic

The economic environment for car industry in a country like Germany is bit difficult and tricky. This is because of many reasons. The major challenge is to tackle the currency difference of euro and dollar. Another challenge is to get the raw materials at a reasonable price, but the cost of raw material is increasing day by day which increase the cost of productions and may reduce customer demand. Also, the price of fuel at in the last five years has increased dramatically. This increase in price affects the purchasing power of customer.

Socio-Cultural

In the last decades, the BMW has made distinct exposure in the international market. This means that the company has to deal with multiple cultures, ethnicity and groups. The company has to take different winning attitude strategy for each country. The company has shifted towards green environment strategy. The company shows great concern about saving the environment from potential dangers of global warming.

Ecological

Within the last five years, there has been a tremendous increase in the field of ecology. Much importance has been given to save the ecological ...