BMW vs Mercedes Essay

Bayerische Motoren Werke AGBayerische Motoren Werke AG ( inc subscriber line Bavarian Motor Works), parking argonaly known asBMW or BMW AG, is a German simple machine, motorcycle and engine manufacturing corporation founded in 1916. BMW is headquartered in Munich, Bavaria, Germany. It overly owns and produces Mini automobiles, and is the p atomic number 18nt company ofRolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad. In 2012, the BMW convocation produced 1,845,186 political machinemobiles and 117,109 motorcycles crossways all of its filths. BMW is bulge out of the German Big 3 luxury automakers, on with Audi and Mercedes-Benz, which are the ternary best- marketing luxury automakers in the globe.HistoryBMW was established as a business entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1917. After the end of World War I in 1918, BMW was forced to dismiss aircraft-engine exertion by the terms of theVersailles Ar mistice Treaty.5 The company consequently shifted to motorcycle production in 1923, at once the restrictions of the treaty started to be lifted,6 followed by automobiles in 192829.789 The former(a) car which BMW winnerfully produced and the car which launched BMW on the roadway to automobile production was the Dixi, it was based on the Austin 7 and licensed from the Austin Motor confederacy in Birmingham, England. BMWs introductory base signifi pott aircraft engine was the BMW IIIa inline-six liquid-cooled engine of 1918, much preferred for its high-altitude performance.10 With German rearmament in the 1930s, the company again began producing aircraft engines for theLuftwaffe. Among its successful World War II engine intents were the BMW 132 and BMW 801 air-cooled radial engines, and the pi unrivaledering BMW 003 axial-flow turbojet, which power the tiny, 19441945era jet-powered emergency fighter, theHeinkel He 162 Spatz. The BMW 003 jet engine was tested in the A-1b version of the worlds branch jet fighter, theMesserschmitt Me 262, but BMW engines failed on takeoff, a major set endorse for the Emergency poor boy Program until successful testing with Junkers engines.1112 Towards the end of the Third Reich BMW developed many military aircraft projects for the Luftwaffe, the BMW Strahlbomber, the BMW Schnellbomber and the BMW Strahljger, but none of them were built.1314 By the year 1959, the automotive division of BMWwas in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a way of carrying on. It was decided to carry on and to try to gold in on the current economy car boom enjoyed so successfully by some of Germanys ex-aircraft manufacturers such as Messerschmitt andHeinkel. The rights to manufacture the Italian Iso Isetta were bought the tiny cars themselves were to be powered by a modified form of BMWs own motorcycle engine. This was moderately successful and helped the company get back on i ts feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the Quandt family, which owns about 46% of the stock. The rest is in public float.Mercedes-BenzMercedes-Benz (German pronunciation mtseds bnts) is a German automobile manufacturer, a transnational division of the German manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks. Mercedes-Benz is headquartered in Stuttgart, Baden-Wrttemberg, Germany. The disclose first appeared in 1926 under Daimler-Benz but traces its origins to Daimler-Motoren-Gesellschafts 1901Mercedes and to Karl Benzs 1886 Benz Patent Motorwagen, which is widely regarded as the first automobile. Mercedes-Benzs shibboleth is Das Beste oder nichts (English The best or nonhing). Mercedes-Benz is part of the German Big 3 luxury automakers, along with Audi and BMW, which are the best selling luxury automakers in the world.Karl Benz in Mannheim, Germanymade the 1886 Benz Patent Motorwagen, w hich is widely regarded as the first automobile Mercedes-Benz traces its origins to Karl Benzs origination of the first petrol-powered car, the Benz Patent Motorwagen, financed byBertha Benz3 and patented in January 1886,4 and Gottlieb Daimler and engineer Wilhelm Maybachs conversion of a stagecoach by the addition of a petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-Motoren-Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benzs and Gottlieb Daimlers companies into the Daimler-Benz company.14 Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular during Germanys Nazi period. Adolf Hitler was known to flip goaded these carsduring his time in power, with bulletproofwindshields. Most of the surviving models have been interchange at auctions to cloak-and-dagger buyers. matchless of them is shortly on display at the War Museum in Ottawa, Ontario. Merc edes-Benz has introduced many technological and safety intros that later became common in other vehicles.5 Mercedes-Benz is one of the best known and established automotive brands in the world, and is also one of the worlds oldest automotive brand still in existence today in 2014, having produced the first petrol-powered car.6 For information relating to the famous three-pointed star, see under the title Daimler-Motoren-Gesellschaft including the merger into Daimler-Benz. increase MIX OF BMWBMW is one of the superior luxury car manufacturers in Europe, North America, and the world today. BMW produces several lines of cars, including the 3 series, the 5 series, the 7 series, the Z line (driven by Pierce Brosnan as James Bond in Goldeneye), and the tender X line, BMWs gambling activity vehicle line. In addition, BMW is now selling Rovers, a British car line anchored by the internationally popular Land Rover sport utility vehicle, and will begin selling Rolls Royce vehicles in 2003 . Sales of all the BMW, Rover, and Land Rover vehicles have been on the rise globally. eminent-profile image campaigns (such as the James Bond promotion) and the award-winning BMW website (where users can design their own car) continue to increase the popularity of BMWs products. PRODUCT LIFE CYCLE BMW cars typically have a product life cycle of seven years.MotorcyclesBMW began production of motorcycle engines and then motorcycles after World War I.23 Its motorcycle brand is now known as BMW Motorrad. Their first successful motorcycle, after the failed Helios and Flink, was the R32 in 1923. This had a boxer twin engine, in which a piston chamber projects into the air-flow from each side of the machine. Apart from their single-cylinder models (basically to the same pattern), all their motorcycles used this distinctive layout until the early 1980s. Many BMWs are still produced in this layout, which is designated the R serial publication. During the Second World War, BMW produced the BMW R75 motorcycle with a sidecar attached. Having a unique design copied from the Zndapp KS750, its sidecar wheel was also motor-driven. Combined with a lockable differential, this made the vehiclevery capable off-road, an similar in many ways to the Jeep. In 1982, came the K serial publication, shaft drive but water-cooled and with all three or four cylinders mounted in a straight line from front to back. suddenly after, BMW also started making the chain-driven F and G series with single and parallel twin Rotaxengines. In the early 1990s, BMW updated the airhead Boxer engine which became known as the oilhead. In 2002, the oilhead engine had two spark plugs per cylinder. In 2004 it added a built-in balance shaft, an increased capacity to 1,170 cc and enhanced performance to 100 hp (75 kW) for the R1200GS, compared to 85 hp (63 kW) of the previous R1150GS. More powerful variants of the oilhead engines are unattached in the R1100S and R1200S, producing 98 hp (73 kW) and 122 hp ( 91 kW), respectively. BMW introduced anti-lock brake on production motorcycles starting in the late 1980s. The generation of anti-lock brakes available on the 2006 and later BMW motorcycles pave the way for the introduction of electronic stability control, or anti-skid technology later in the 2007 model year.AutomobilesThe New Class (German Neue Klasse) was a line of compact sedans and coupes starting with the 1962 1500 and continuing through the go away 2002s in 1977. Powered by BMWs celebrated four-cylinder M10 engine, the New Class models had a fully self-supporting suspension, MacPherson struts in front, and front disc brakes. Initially a family of four-door sedans and two-door coupes, the New Class line was broadened to two-door sports sedans with the addition of the 02 Series1600 and 2002 in 1966. Sharing little in common with the rest of the line beyond power train, the sporty siblings caught auto enthusiasts care and established BMW as an international brand. Precursors t o the famed BMW 3 Series, the two-doors success cemented the firms forthcoming as an upper tier performance car maker. New Class four-doors with numbers ending in 0 were replaced by the larger BMW 5 Series in 1972. The upscale 2000C and 2000CS coupes were replaced by the six-cylinder BMW E9, introduced in 1969 with the 2800CS. The 1600 two-door was stop in 1975, and the 2002 was replaced by the 320i in 1975. The 1 Series, originally launched in 2004, is BMWs smallest car. Currently available are the second generation hatchback (F20) and first generation coupe/convertible (E82/E88). The 3 Series, a compact executive director car construct since model year 1975, is currently in its sixth generation (F30) models accommodate the sport sedan(F30), and fourth generation station wagon (F30), and convertible (E93), and the Gran Turismo. In 2014, the 4 Series will be released and replace the 3 Series Coupe and Convertible. The 5 Series is a mid-size executive car, available in sedan (F1 0) and station wagon (F11) forms. The 5 Series Gran Turismo (F07), which debuted in 2010, created a divide between station wagons and crossover SUV.24 BMWs full-size flagship executive sedan is the 7 Series. Typically, BMW introduces many of their innovations first in the 7 Series, such as the iDrive system. The 7 Series Hydrogen, having one of the worlds first hydrogen fueled internal combustion engines, is fueled by liquid hydrogen and emits only peel water vapor. The latest generation (F01) debuted in 2009. Based on the 5 Series platform, the 6 Series is BMWs grand touring luxury sport coupe/convertible (F12/F13). A 2-seater roadsterand coupe which succeeded the Z3, the Z4 has been sold since 2002.MotorsportBMW has been engaged in motorsport activities since the track of the first BMW motorcycle in 1923. BMW has a history of success in pattern One. BMW powered cars have won 20 races. In 2006 BMW took over the Sauber squad and became Formula One constructors. In 2007 and 2008 the team enjoyed some success. The most(prenominal) recent win is a lone constructor teams victory by BMW Sauber F1 Team, on 8 June 2008, at the Canadian Grand Prix with Robert Kubicadriving. BMW was an engine supplier to Williams, Benetton, Brabham, and Arrows. Notable drivers who have started their Formula One careers with BMW include Jenson Button, Juan Pablo Montoya, Robert Kubica and Sebastian Vettel. In July 2009, BMW announced that it would withdraw from Formula One at the end of the 2009 season.27 The team was sold back to the previous owner, Peter Sauber, who kept the BMW part of the name for the 2010 season due to issues with theConcorde Agreement. The team has since dropped BMW from their name starting in 2011.Public RelationsEffective public relations need to play an full part in BMW marketing strategy. It is important for BMW to maintain regular contact with all organisational stakeholders with the use of variant marketing communication channels. Specifically, commu nication channels used in public relations include, but not limited to online press releases, annual reports, speeches,and seminars. As part of their corporate social responsibility initiatives BMW management is also recommended to increase the level of its association with local charities in the UK such as Oxfam, NSPCC, or Cancer explore UK. Moreover, BMW management can initiate the development of identity magazine of the BMW assemblage which can cover the latest trends and news in local and global automobile industry and at the same time distribute as an effective channel to communicate the marketing message to the target guest segment. advertizeAdvertising can be defined as the activity or profession of producing information for promoting the sale of mercantile products or services (Business Dictionary, 2013, online). BMW is recommended to be communicating its marketing message to target customer segment on the basis of using a set of advertising channels. Specifically, enga gement in print and broadcast advertizement through channels popular amongst BMW target customer segment needs to be adopted as one of the cores of the marketing strategy. Advertising banners need to be displayed in locations in London frequently tended to(p) by BMW target customer segment such as Canary Wharf and City. Moreover, BMW marketing team is recommended to be improving the quality of point-of-sales advertising through supplying audio, video and image materials that motivate beauty parlor visitors to commit to the corrupt.Sales PromotionSales promotion involves offering short-term incentives for potential customers to commit to the purchase of products and services. BMW Group is recommended to use sales promotion in the UK market in an occasional manner in order to increase the levels of revenues for short-term perspectives. For example, 100th anniversary of BMW on March 7, 2013 can be contract as an appropriate occasion to announce 10% sales promotion for all BMW mode ls. However, it is important to comment that BMW needs to engage in sales promotions in the UK market only in an occasional manner, no more(prenominal) than once a year, be progress to using sales promotion more frequently may cause depreciation of BMW premium brand value.PRICING STRATEGYThe prices of BMW Group are based on a differentiated strategy. This meansthat they charge extra for premium quality. This difference in prices is due to each cars different engine size, gear levels, fuel consumption, sports version.The pricing strategy that the BMW Group adopts is based on several report trends. One most important trend of BMW is labeled as premium-tization. Premium-tization trend of BMW causes polarization of markets. This trend triggers the consumers to admit and pay much higher prices for the perceived quality.SWOT ANALYSIS OF BMW GROUPA SWOT analysis will be used to see the various Strengths, Weaknesses, Opportunities and Threats of the BMW Group. StrengthsStrong marketing strategy.Customers recognize the strong brand name of BMW Group Company. Strong brand image i.e. BMW, MINI Cooper and Rolls Royce.Every 2 to 3 years BMW introduces its new version of cars i.e. constant innovation and technology. Weaknessesthither is an increasing number of duplicate fifth wheel parts of BMW and MINI Cooper. The manufacturing costs of BMW cars are very high as compared to its competitors. This is also a terra firma for high pricing of BMW cars. Not a mass market company like Toyota and their volumes are small.OpportunitiesThere is an opportunity for BMW Group to increase further innovation and technology in their cars due to increasing rivalry in car industry. BMW Group should also look to make new collaboration with other car manufacturers i.e. introducing new brands. BMW Group should also look to produce cheaper cars by new innovation and technology. Expansion of the BMW Group in Asia Pacific, Asia, Africa and Australia.ThreatsRecession which has affected busine sses in every part of the world. To maintain the same level of innovation and performance.The growing competition in the automobile industry i.e. competitors of BMW Group include Mercedes, Audi, Jaguar, Ford, Lexus. The earnings of the BMW Group are Dollar dominated, so the increasing strength of Euro is anotherthreat for the company.DISTRIBUTION CHANNELBMW Welt focuses on strengthening the dialogue with customers and visitors by showing a wide range of BMW cars and motorcycles, and providing vehicle distribution, particularly the creation of a special experience with regards to customer collection of an ordered vehicle. BMW Welt also offers shops with BMW auxiliary products, as well as a fully serviced gastronomic restaurant. In the meeting forum, BMW Welt offers conference populate and the opportunity to stage media events. The building often houses exhibitions related to new BMW models and, since 2012, other BMW Group brands such as Mini and Rolls-Royce BMW plans a new distribut ion system for the 5-series sedan that will keep some of the vehicles allocated to dealerships in one of three locations around the country. The distribution system would give dealers pools of cars in three locations, said Miles. kinda than ship each dealerships total monthly allocation to the store, some of the cars will be kept at BMW processing facilities on both coasts and in the South. The basic principle is to make more of the inventory that exists available to sell and to reduce the dealers floorplan cost,MERCEDES PRODUCT RANGEVANSMercedes-Benz Vans sets standards through perfection and meticulous attention to detail. Ground-breaking innovations and excellent value retention are decisive for the brands success. With its broad spectrum of offers the brand can really score points with the customer.The Mercedes-Benz Vans product spectrum includes vans, MPVs and camper vans for private and commercial use. Mercedes-Benz Vans stands for sustainable technologies. In particular the new Mercedes-Benz Sprinter, introduced in the spring of 2013, was equipped with technologies that make it even more frugal and environmentally compatible. Whether for a private or commercial customer Mercedes-Benz Vans is focused on customisation according to the customers needs. Although each customer is different, one thing applies to all in the same measure Mercedes-Benz Vans delivers the best possible solution.TRUCKSAs part of the Daimler Trucks division, Mercedes-Benz Trucks has been a hallmark of premium quality for over 100 years now. It stands not only for reliableness and economic efficiency, but also for first-class product and service quality and comprehensive expertise in the area of customer-oriented transport solutions. The high standard of quality applies equally to our Actros, Arocs, Axor, Antos and Atego truck series and to special-purpose vehicles from Mercedes-Benz Trucks. The latter include the Mercedes-Benz Econic and the legendary Unimog, for example. Our comp rehensive range is rounded off by the Mercedes-Benz Zetros, which has been designed as an off-road truck for deployment in extremely rough terrain.BUSESThe worlds first motorised bus was built in Germany by Karl Benz in 1895, some years before Gottlieb Daimler also started to build and sell buses in Germany as well. By 1898 both Karl Benz and Gottlieb Daimler, then rivals, were exporting their buses to Wales and England. Soon Daimler products were sold in the British Empire in a partnership with the British company Milnes. Milnes-Daimler developed a double-decker in 1902 and provided a bus for the first motorised bus service in the United Kingdom the following year. Though the company met success in selling buses throughout the British Empire, the partnership between Daimler and Milnes had to be undone due to the jump World War.CARSMercedes-Benz carries a full range of passenger, light commercial and heavy commercial equipment. Vehicles are manufactured in multiple countries worldw ide. The Smart marque of city cars and Maybach luxury cars are also produced by Daimler AG. amongst 2003 and 2009, Mercedes-Benz produced a limited-production sports car with McLaren Cars. The resulting Mercedes-Benz SLR McLaren was an extension of the collaboration by which Mercedes engines are used by the Team McLaren-Mercedes Formula One racing team, which was then part owned by Mercedes.SWOT ANALYSIS OF MERCEDESStrength1. Mercedes Benz has a strong brand value and global leader in premium cars 2.Lack of capital constraints3. draw in innovation i.e. 1st to introduce diesel engines, fuel injection and anti locking brakes4. More than $12bn allocated for R&D5. Strong presence in motor sport under McLaren Mercedes6. fabricate and assembled in over 20 countries across the world7. Mercedes holds patents on the majority of safety features Weakness8. High maintenance cost of Mercedes Benz carsOpportunity1. Developing hybrid cars and fuel efficient cars for the future2. Tapping emergin g markets across the world and building a global brand3. Fast growing luxury automobile market & increased incomeThreats1. Government policies for the automobile sector across the world2. Ever increasing fuel prices3. penetrating competition from global automobile brands