By Name Essay Example
M135i Hatch 3
Bavarian Motor Works is a German automobile company that deals in the manufacture of motor vehicles, and motorcycles and automobile engines. The company was founded in 1917 and is found in German with its headquarters located at Munich. The company is known for its luxurious cars namely the Rolls Royce and other motor vehicles under the BMW brand. This has made BMW cars one of the most preferred cars in the world due to their performance and the comfort afforded by the cars. Recently BMW introduced M135i Hatch, which was specifically manufactured for the Australian market. The car runs on a 3-liter turbocharged engine. This translates to 316 horsepower and can reach a speed of 62mph within 4.9 seconds. This gives the car a sporty edge which is an advantage as gives it the capability to compete with other sport utility vehicles. Additionally, the M135i Hatch has the ability to negotiate the rough terrain that is evident in most rural parts of Australia. Therefore, this means that any person who faces difficulties while navigating rough terrains is less likely to face similar problems with the M135i Hatch. In addition to these, the M135i Hatch easily navigates tarmacked roads and the experience is said to be amazing due to the hydraulic suspension. BMW has also ensured that steering of the car is smooth and safe, as the steering is semi-automatic. This comes in handy especially when the car is at a high speed, thereby minimizing instances of accidents arising from bad steering (BMW 2014)
The rising trend in the automobile world indicates that individuals now prefer sports cars and big cars. With this in mind the M135i Hatch embodies both aspects making it a preferred option for individuals who have a passion for sport cars and big cars. Additionally, the price of the M135i Hatch is quite favorable for the average Australian who make up the large population and market for the automobile industry. Additionally, the fact that it is a hatchback means that it is well suited for a family set up. This makes it easy for families to go out for drives due to the loading capacity of the car. Additionally, M135i Hatch is quite spacious as it accommodates five people which is the average size of most families in Australia (Top Gear, 2013).
Core value proposition
The core value proposition is descried as the experience or satisfaction a customer is likely to get upon the use of a certain product. Creation of core value proposition is one of the main if not the main tool in the marketing field. This is attributed to the fact that with core value proposition a marketer is capable of determining how the targeted market is going to receive the product. Additionally, core value proposition not only describes the positive reaction of the market target but also stipulates the likely negative the intended market is likely to experience when using the product (Barnes, Blake & Pinder 2009, p. 150). Therefore, with the help of the core value proposition it becomes quite easy to estimate whether the product will be received or rejected in the intended market. This in turn gives companies that have implemented the use of core value proposition an edge over the competing companies. Companies that do not implement the use of core value proposition gamble with the target market. This is to say that such companies do not know what factors make their products stand out compared to others. Additionally, lack of implementing core value proposition means that a company does not reach to the undecided individuals in the target market. However, companies implementing core value proposition are able to reach out to the undecided individuals in the target market. This in turn leads to such companies’ realizing more profits compared to their rivals. Additionally, such companies experience minimal or no loss compared to their rival companies. This is attributed to the fact that their products in the market are usually sold out (Schultz, et al 2009, p. 299)
Additionally, market positioning is equally important as core value proposition when it comes to marketing of any given product. Marketing position is described as the status of a given product of company in a given target market. This is because positioning helps an organization know where it stands in reference to its target market. This in turn makes it easier for a company to fully meet the requirements of its target market. Additionally, company is able to come up with advertisement that resonate with its target market. Therefore, a company that does not know its position in the market may find it difficult to sell out their product despite the fact that they may be of superior quality. This is attributed to the fact that such companies are yet to distinguish potential buyers from the market, thus the lack of sale for their products (Baines & Fill 2014, p. 200)
BMW core value proposition
The core value proposition is the design of the car, which makes the BMW M135i Hatch very attractive and appealing to its consumer. Additionally, for lovers of sport cars it is a suitable alternative compared to other sport cars. This is attributed to the fact that it gives the same satisfaction compared to other cars and comes at a very affordable price of 30,000 pounds (Top Gear 2013)
Relationship between marketing mix and positioning
Elements of marketing mix go hand in hand with each other, meaning that it is quite impossible for one element to stand out alone without reliance on the other. Additionally, elements of marketing mix greatly influence the positioning of a product in target market. This is to say that without the elements of marketing mix it would be quite difficult to define the position of a product in the target. Therefore, companies such as the BMW have to consider the elements of marketing mix if they are to establish the actual position of their product in the target market (Ferrell & Hartline 2012, p, 100).
The term product refers to the goods that a company provides to its consumers for sale. Therefore, a product can be a car as in the case of BMW M135i Hatch. However, consumers do not purchase goods merely because they are tangible but rather purchase goods for the benefits that accompany the goods. Therefore, a product can be described as the benefits that are offered to consumers for a price. An individual is likely to purchase the BMW M135i Hatch for the comfort in relation to travelling. Additionally, a product can also constitute a service such telecommunication. Therefore, a product does not necessarily refer to the physical and tangible item but the benefits that accompany a good or service for a price (Lamb, Hair & McDaniel 2011, p. 250) Product are classified under various groups depending on the needs and satisfaction of the product. Product classification can be described as the grouping of product in relation to their characteristics and the needs of the consumers. Therefore, the BMW M135i Hatch falls under specialty products. Specialty products refer goods that try to sell brand, meaning that consumers will only purchase such products without considering the alternatives. Therefore, the M135i Hatch sells the BMW brand that is synonymous with certain group of individuals in the target market (Top Gear, 2013).
It is also necessary to consider the product attributes in relation to trademark. A trademark refers to a mark or symbol that identifies a products of specific company. Therefore, it is necessary that the product confines to the attributes that are synonymous to the company. In doing so the integrity of the trademark is not compromised thus ensuring that the company does not lose its customers (Smith & Richey 2013, p. 180)/ In relation to the BMW M135i Hatch it is quite clear that this model tries to expand BMW brand particularly the M series. This is because the M135i Hatch is described as an improvement of the M series models (Top Gear, 2013).
Product placement is a form of advertising that is different from the conventional forms of advertising. This means that instead of creating adverts for products, companies enter into agreements with media companies to have their products featured in the films. In doing so, companies hope that consumers will recognize their products. Therefore, once a company feels that it has generated a sizeable market for its product it goes on to distribute its product to the consumers (Rosenbloom 2011, p. 300) However, a company may adopt a distribution channels that best suits them as they are a few distribution channels. Direct channel is the first distribution channel, which involve the company selling its products directly to its consumers. This achieved by opening up retail shops for their products, whereby consumers purchase products directly from the producers. Indirect channel is the second distribution channel, which involves the use of third parties to sell products to consumers (Dent 2011, p. 170). Therefore, in relation M135i Hatch, BMW have adopted direct distribution as is evident with the BMW showrooms spread out in Australia. This makes it easier for them to interact with the consumers and identify the areas that they need to work on to maintain their customers.
Channel structure, on the other hand, refers to the paths taken by producers in ensuring that their products reach the consumers. Adopting the best channel structure is quite important for any producer. This is because by adopting the best channel structure, companies are less likely to have problems in providing their products to their products and at the same time maximize profits (Schenck 2011, p. 97). BMW have adopted a zero stage channel structure in selling their product. Zero stage structure is characterized by sale of goods directly to the consumers. This is characterized by the various retail outlets owned by BMW for the sale of their products.
Additionally, BMW have adopted higher market exposure, whereby market exposure refers to the funds that have been invested in production of a product (Ferrell & Hartline 2012, p.200)BMW have used some of the latest technologies such as semi-automatic steering wheels in manufacturing of the M135i Hatch. This shows that a lot of resources were tapped in the coming up of the BMW M135i Hatch. Additionally, this exposure maintains the integrity of the company as the company is known for its luxurious cars. Therefore, anything less than luxury would compromise the integrity of the company leading to loss of market, culminating to a loss as whole.
Pricing is also a key element in marketing, as it tries to resonate with the existing market for a product. Price may attract or repel potential customers, hence it should be given great priority by nay given company. Additionally, price affects the profitability of the company since the price set out clearly sets out the amount of profit a company is likely to achieve. However, it should be noted that setting up the price of a product is dependent on various factors such as; consumer ability, costs involved, and prices offered by rival companies (Gillespie & Hennessey 2010, 390) The M135i Hatch minimum price is 30,000 pounds which is significantly cheaper compared to other hatchbacks. Therefore, one can say that BMW factored on affordability of the car and the price of other hatchbacks by other companies (Top Gear 2013)/
In conclusion, BMW factored a lot of aspects in the manufacturing of the BMW M135i Hatch for the Australian population. These factors are well understood by looking at the various elements of marketing mix. These elements help in understanding the approach adopted by BMW as it tries to ensure that it realizes profits for its new line of production. Additionally, by the use of these elements BMW is capable of ensuring that it retains its competitive edge over its rival companies as they target the same market. Additionally, with the assistance of elements of marketing mix the BMW M135i Hatch has achieved its core value proposition.
Barnes, C, Blake, H & Pinder, D 2009, Creating and Delivering Your Value Proposition: Managing Customer Experience for Profit, Kogan Page Publishers, London.
Baines, P & Fill, C 2014, Marketing 3E P, Oxford University Press, Oxford.
BMW 2014, BMW M135i Hatch, Sydney viewed 23 March 2014, <
Dent, J 2011, Distribution Channels: Understanding and Managing Channels to Market, 2nd edn, Kogan Page Publishers, London.
Ferrell, OC & Hartline, M 2012, Marketing Strategy, 6th edn, Cengange Learning, Connecticut.
Gillespie, K & Hennessey, HD 2010, Global Marketing, 3rd edn, Cengange Learning, Connecticut.
Lamb, C, Hair, J & McDaniel, C 2011, Essentials of Marketing, 7th edn, Cengange Learning, Connecticut.
Rosenbloom, B 2011, Marketing Channels, 8th edn, Cengange Learning, Connecticut.
Schenck, BF 2011, Small Business Marketing For Dummies, John Wiley & Sons, New Jersey.
Schultz, DE, Barnes, BE, Schultz, HF & Azzaro, M 2009, Building Customer-Brand Relationships, M.E. Sharpe, New York.
Smith, GV & Richey, SM 2013, Trademark Valuation: A Tool for Brand Management, John Wiley & Sons, New Jersey.
Top Gear, 2013, M135i Hatch, London, viewed 23 March 2014, <
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