Abstract

The case discusses the marketing strategies adopted by Germany-based automobile manufacturer BMW in India. BMW India was founded in the year 2006, and the first car was launched in 2007. The company maintained an aggressive stance and launched several vehicles at different price points. BMW was positioned as an aspirational brand for young entrepreneurs and executives and adopted innovative strategies to reach the segment. It also developed exclusive dealerships, which were used as touch points to interact with the customers. Within three years, BMW went on to become the top luxury car manufacturer in India, surpassing Mercedes-Benz, which had been present in the country for more than a decade. The cases lists the strategies adopted by BMW on its journey to reach this position and also discusses the challenges it is likely to face from existing and new competitors like Mercedes Benz and Audi.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges faced by established companies in a new market.
• Analyze the strategies that market leaders should follow to counter competition from new entrants into the market (expanding the total market, expanding market share, and defending market share).
• Analyze the strategies that the market challengers should follow in attacking the market leaders.
• Discuss and debate whether the strategies followed by BMW would let it continue the lead over Mercedes and others.

Keywords

BMW, BMW India, BMW in India, Passenger car industry in India, Pricing, Campaigns, Distribution, Premium cars, Aspirational brand, Premium dealership, Mercedes Benz India, Joint venture, Complete knocked down kits, Sales subsidiary, Sporty cars, BMW 5 Series, Complete built-up units, BMW 3 Series, BMW X1, BMW X3, Pre-owned cars, BMW Financial Services India, BMW Studio