Target, Positioning, and Marketing Mix at BMW BMW is one of the world’s largest luxury car companies and it is easy to understand why. Not only does this premium auto brand have a high resale value, but strong brand loyalty and an even bigger profit margin than mass-produced cars (Holloway, 2002). This in turn enables the premium maker to spend more on research and development into the minds of its target market to make better, more advanced cars with a powerful brand image. BMW is a German automobile, motorcycle and engine manufacturing company, which owns and produces the Mini brand, and is the parent company of Rolls-Royce Motor Cars. BMW is well known for its sporty, yet sophisticated image which has been built up since the 1970’s
Ideally, BMW’s positioning has been maintained over such a long period of time because the company possesses and develops an incredible competitive advantage. In terms of price, BMW’s mid-range vehicles start around $29,400 up to the most prestigious and luxurious vehicles priced around $130,000 (Boudette, 2005). Additionally, every new BMW is covered by a limited warranty for defects in materials or workmanship for the first four years or 50,000 miles, whichever comes first. BMW also offers a rust protection program for 2006 and newer models, which provides a 12-year limited rust perforation protection without mileage limitations (http://www.bmwgroup.com). Additional accessories and services offered by BMW include iDrive, Real Time Traffic Information, BMW Roadside Assistance, and BMW assist all the more reasons why consumers choose BMW. iDrive links BMW vehicles’ with communications, navigation and entertainment functions allowing owners to make calls, listen to music, plot routes and find places to stop along the way, with just one controller all at the same time. Real Time Traffic takes owners down shorter and faster routes, preventing them from getting stuck in traffic. It identifies traffic accidents and delays in real time and continuously updates the service 24 hours a day, 7 days a week, while smaller markets report only during normal commuting hours (http://www.bmwgroup.com). BMW Roadside Assistance is a feature most BMW owners