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Visiting the Luxury Car Market

In: Business and Management

Submitted By nanasupreme
Words 600
Pages 3
BMW, the Bavarian based luxury car producer is seen as one of the most prestigious, stable and admired companies in the world. BMW takes differentiation strategy to ensure BMW Group's lead over competitors and to actively shape the company's future by creating BMW vehicles that are perceived by customers to be unique. The mission statement of BMW Group is clearly defined: “the BMW Group is the world’s leading provider of premium products and premium services for individual mobility”. Another important point in the mission statement was that “BMW Group will invest substantially in future technologies, new vehicle concepts and pioneering drive systems”. This means that in addition to providing quality services to its customers, the BMW Group will engage in new and profitable areas to enhance the business.
Vehicles made by BMW are able to command premium prices the prices of BMW Group are based on a differentiated strategy. This means that they charge extra for premium quality. This difference in prices is due to each cars different engine size, gear levels, fuel consumption, sports version. Premium-tization trend of BMW causes polarization of markets. This trend triggers the consumers to demand and pay much higher prices for the perceived quality because customers perceive that the luxury, sportiness, and prestige of owing these vehicles are something worth paying for. The ability to increase revenues by charging premium prices allows BMW group to outperform its competitors and gain great profit.
The differentiation strategy of BMW Group is based on having a powerful brand image. This strategy forms the foundation of the success of the BMW Group. BMW Group believes in maintain core values as technology, innovation, performance, quality, reliability, exclusivity and customer satisfaction. BMW Group adopts a marketing campaign of targeting its customers. In the...

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