BMW vs Mercedes Essay

Bayerische Motoren Werke AGBayerische Motoren Werke AG ( English Bavarian Motor Works), comm sole(prenominal) kn aver asBMW or BMW AG, is a German elevator railroad railway railcar, cycle and railway locomotive manufacturing company founded in 1916. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces Mini cars, and is the conjure company ofRolls-Royce Motor Cars. BMW produces cycles beneath BMW Motorrad. In 2012, the BMW mathematical group produced 1,845,186 automobiles and 117,109 motorcycles crossways altogether of its hires. BMW is grammatical constituent of the German Big 3 prodigality auto even uprs, along with Audi and Mercedes-Benz, which ar the deuce-ace shell-selling luxury automakers in the innovation.HistoryBMW was established as a massiness entity following a restructuring of the Rapp Motorenwerke aircraft manufacturing firm in 1917. after(prenominal) the end of sphere War I in 1918, BMW was forced to lay off aircraft-engine w be by the terms of theVersailles Armistice Treaty.5 The company consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started to be lifted,6 followed by automobiles in 192829.789 The jump car which BMW successfully produced and the car which launched BMW on the road to automobile production was the Dixi, it was base on the uppercase of Texas 7 and licensed from the Austin Motor Company in Birmingham, England. BMWs offshoot signifi spatet aircraft engine was the BMW IIIa inline-six fluent-cooled engine of 1918, much preferred for its towering-altitude performance.10 With German rearmament in the 1930s, the company once more began producing aircraft engines for theLuftwaffe. Among its successful World War II engine designs were the BMW 132 and BMW 801 air-cooled radiate engines, and the pi onenessering BMW 003 axial-flow turbo kibibyte, which male monarched 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 first jet fighter, theMesserschmitt Me 262, precisely when BMW engines failed on takeoff, a major setback for the Emergency torpedo Program until successful testing with Junkers engines.1112 Towards the end of the Third Reich BMW developed virtually 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 grade 1959, the automotive variance of BMWwas in financial difficulties and a shareholders meeting was held to decide whether to go into resolution or find a way of carrying on. It was decided to carry on and to try to cash in on the current economy car boom enjoyed so successfully by round of Germanys ex-aircraft manufacturers much(prenominal) 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 moto rcycle engine. This was reasonably successful and helped the company get back on its feet. The controlling absolute 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 orthoepy mtseds bnts) is a German automobile manufacturer, a multinational division of the German manufacturer Daimler AG. The print is pulmonary tuberculosisd for luxury automobiles, buses, coaches, and trucks. Mercedes-Benz is headquartered in Stuttgart, Baden-Wrttemberg, Germany. The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler-Motoren-Gesellschafts 1901Mercedes and to Karl Benzs 1886 Benz unmixed Motorwagen, which is wide regarded as the first automobile. Mercedes-Benzs slogan is Das Beste oder nichts (English The best or nothing). Mercedes-Benz is part of the German Big 3 luxury automakers, along with Audi and BMW, which are the best selling lu xury automakers in the world.Karl Benz in Mannheim, Germanymade the 1886 Benz Patent Motorwagen, which is widely regarded as the first automobile Mercedes-Benz traces its origins to Karl Benzs creation 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 microscope stage 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 bell ringer 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 customary during Germanys Nazi period. Adolf Hitler was known to have driven these carsduring his cartridge holder in power, with bulletproofwindshields. Most of the surviving models have been exchange at a uctions to reclusive buyers. unitary of them is currently on display at the War Museum in Ottawa, Ontario. Mercedes-Benz has introduced many technological and safety innovations that later became common in premature(a) vehicles.5 Mercedes-Benz is one of the best known and established automotive brandmarks 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, hit under the title Daimler-Motoren-Gesellschaft including the merger into Daimler-Benz.PRODUCT MIX OF BMWBMW is one of the leading(prenominal) luxury car manufacturers in Europe, North America, and the world today. BMW produces several(prenominal) 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 youthful X line, BMWs have activeness vehicle line. In addition, BMW is now selling bird of passages, a British car line anchored by the internationally popular Land Rover sport utility vehicle, and will begin selling Rolls Royce vehicles in 2003. gross sales of all the BMW, Rover, and Land Rover vehicles have been on the rise world-widely. High-profile simulacrum campaigns ( such as the James Bond furtherance) 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 cylinder projects into the air-flow from each(prenominal) side of the machine. Apart from their single-cylinder models (basically to the aforesaid(prenominal) 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 series. 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 rack was also motor-driven. Combined with a lockable differential, this made the vehicle rattling fit off-road, an equivalent in many ways to the Jeep. In 1982, came the K Series, sweep drive but water-cooled and with either three or quadruplet cylinders mounted in a straight line from front to back. briefly after, BMW also started making the chain-driven F and G series with single and correspond 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 entire balance shaft, an increased capacity to 1,170 cc and enhanced performance to hundred hp (75 kW) for the R1200GS, compared to 85 hp (63 kW) of the previous R1150GS. More powerful variants of the oilhead engines are easy in the R1100S and R1200S, producing 98 hp (73 kW) and 122 hp (91 kW), respectively. BMW introduced anti-lock brakes on production motorcycles offset 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 constancy control, or anti-skid engineering later in the 2007 model year.AutomobilesThe New yr (German Neue Klasse) was a line of compact pothouse chairs and coupes starting with the 1962 1500 and continuing through the abide 2002s in 1977. Powered by BMWs celebrated four-cylinder M10 engine, the New secernate models had a fully independent suspension, MacPherson struts in front, and front disc brakes. ab initio 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 Ser ies1600 and 2002 in 1966. share little in common with the rest of the line beyond power train, the sporty siblings caught auto enthusiasts attention and established BMW as an international brand. Precursors to the ren possess BMW 3 Series, the two-doors success cemented the firms future as an velocity tier performance car maker. New Class four-doors with fares end 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 discontinued 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 decision maker car manufactured since model year 1975, is currently in its sixth generation (F30) models accept the sport sedan(F30), and fourth generation statio n 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 (F10) and station wagon (F11) forms. The 5 Series Gran Turismo (F07), which debuted in 2010, created a section 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 give the sacked internal combustion engines, is fueled by liquid hydrogen and emits only clean 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 prosecute in motorsport activities sinc e the dawn of the first BMW motorcycle in 1923. BMW has a annals of success in Formula One. BMW powered cars have won 20 races. In 2006 BMW took over the Sauber group and became Formula One constructors. In 2007 and 2008 the team enjoyed some success. The most 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 unplowed 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 integral part in BMW merchandise strategy. It is important for BMW to exert regular contact with all organisational stakeholders with the use of various marketing colloquy channels. Specifically, communication channels used in public relations include, but not limited to online press releases, annual reports, speeches,and seminars. As part of their bodily social responsibility initiatives BMW management is also recommended to increase the level of its connectedness with local charities in the UK such as Oxfam, NSPCC, or Cancer look into UK. Moreover, BMW management can initiate the development of identity magazine of the BMW grouping which can cover the latest trends and news in local and orbicular automobile industry and at the same time serve as an effective channel to communicate the marketing message to the target client constituent.AdvertisingAdvertising can be defined as the activity or profession of producing information for promoting the sale of commercial p roducts or function (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, competitiveness in print and broadcast advertisement 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 attended 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 see to it materials that motivate salon visitors to commit to the purchase.Sales PromotionSales promotion involves offering short-term incentives for potential customers to commit to the purchase of products and functions. BMW Group is recommended to use sales promotion in the UK market in an subprogramal air in order to increase the levels of revenues for short-term perspectives. For example, 100th anniversary of BMW on March 7, 2013 can be specified as an appropriate occasion to announce 10% sales promotion for all BMW models. However, it is important to office that BMW needs to engage in sales promotions in the UK market only in an occasional manner, no more than once a year, because using sales promotion more frequently may cause wear and tear of BMW grant 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, pitch levels, fuel consumption, sports version.The set strategy that the BMW Group adopts is based on several key 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 demand and pay much high prices fo r the perceived quality.SWOT ANALYSIS OF BMW GROUPA SWOT analytic thinking 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. WeaknessesThere is an increasing number of duplicate spare parts of BMW and MINI Cooper. The manufacturing costs of BMW cars are very high as compared to its competitors. This is also a reason 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 competition in car industry. BMW Group should also look to make new collaboration with opposite car manufacturers i.e. introducing new brands. BMW G roup 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 businesses in every part of the world. To maintain the same level of innovation and performance.The maturement competition in the automobile industry i.e. competitors of BMW Group include Mercedes, Audi, Jaguar, Ford, Lexus. The moolah of the BMW Group are Dollar dominated, so the increasing strength of Euro is some otherthreat for the company.DISTRIBUTION CHANNELBMW Welt focuses on strengthening the conversation with customers and visitors by showing a wide range of BMW cars and motorcycles, and providing vehicle dispersion, in particular the creation of a special experience with regards to customer collection of an reproducible 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 board 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 distribution 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. Rather than ship each dealerships numerate 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 rankVANSMercedes-Benz Vans sets standards through perfection and meticulous attention to detail. Ground-breaking innovations and excellent value memory are decisive for the brands success. With its broad spectrum of offers the brand can really sc ore 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 reliability 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 equa lly 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 comprehensive range is rounded off by the Mercedes-Benz Zetros, which has been knowing 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 earth the following year. Though the company met success in selling buses passim the British Empire, the partnership between Daimler and Milnes had to be undone due to the firstly World War.CARSMercedes-Benz carries a full range of passenger, light commercial and slow commercial equipment. Vehicles are manufactured in multiple countries worldwide. The Smart trade name of city cars and Maybach luxury cars are also produced by Daimler AG. Between 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. Leader 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 th e world7. Mercedes holds patents on the majority of safety features Weakness8. High maintenance cost of Mercedes Benz carsOpportunity1. create hybrid cars and fuel efficient cars for the future2. Tapping emerging 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. Intense competition from global automobile brands