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Paper Topic:

BMW Case Study

Running Head : BMW CASE STUDY

BMW Case Study (Your Name (Your School


Statement of the problem

The issue at BMW is to keep their product line within the introductory and growth stages . At BMW the main issue is to prevent their motor brands from falling to the decline and withdrawal stage . This means that there has to be a new model in the market from time to time in to replace the declining model . There has to be a strategy to keep the product within the life cycle

of about seven years although this varies with the model and with the market . So the main problem is to try and keep the product within the introductory and growth stage

Summary of the facts

The case of BMW can be taken as one of the most innovative way of managing a brand in the market . BMW tries to keep it brands in the market within the introductory and growth stages and avoids the product from going to declining and withdrawal market stage . This is managed through brand and management of the brand . BMW brands it cars in series A new series is given a period of about seven years in the market and when it approaches the decline stage a new series is introduced to replace it . This keeps the series new in the market


BMW newness of the product life cycles does not follow the normal product life cycle of three stages . A normal product life cycles as given in Figure 11 shows that a product will be introduced in the market at the first stage . Then the second stage will be marked by increased demand of the product which leads to high growth . After this there is the period of market saturation and decline in the demand of the product in the market . This eventually culminates to withdrawal of the product due to low demand . BMW does not allow its product to go through this life cycle . It concentrates on the first two stages . Instead of allowing its product to go to the declining and withdrawal stage , the company comes up with another series that reflects the newness of the same product even though the difference between the two is not that large Therefore we can say that it is management of the product cycle through branding . The branding strategy is therefore used to make a new consumer appeal for the same product in the same market . This has been an important strategy that has helped the BMW model from losing its credibility in the market


Being a preeminent luxury car and in the European market and all over the world , the BMW strategy has been effective in ensuring that the company has its brands in the market selling as a luxury brand through the management of the brand . The strategy of introducing new model of every series within a period of about seven years has been effective in ensuring that the product...

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