Download - BMW Pricing Strategy
![Page 1: BMW Pricing Strategy](https://reader033.vdocument.in/reader033/viewer/2022061514/563dbbc6550346aa9ab026a1/html5/thumbnails/1.jpg)
![Page 2: BMW Pricing Strategy](https://reader033.vdocument.in/reader033/viewer/2022061514/563dbbc6550346aa9ab026a1/html5/thumbnails/2.jpg)
Pricing Concept & CVP
• Price discrimination
• “Ultimate Driving Machine” “Joy is BMW”
• For customers looking for a superior driving experience, BMW provides the performance of a sports car while not compromising luxury.
![Page 3: BMW Pricing Strategy](https://reader033.vdocument.in/reader033/viewer/2022061514/563dbbc6550346aa9ab026a1/html5/thumbnails/3.jpg)
Utilization of Pricing Strategy
![Page 4: BMW Pricing Strategy](https://reader033.vdocument.in/reader033/viewer/2022061514/563dbbc6550346aa9ab026a1/html5/thumbnails/4.jpg)
Prices Across Product Offerings
• Free Maintenance
10 models and 60 variations across models
Lexus – 11 models 28 variations
Mercedes – 13 models 40 variations
1 Series – has no competitors in luxury market
![Page 5: BMW Pricing Strategy](https://reader033.vdocument.in/reader033/viewer/2022061514/563dbbc6550346aa9ab026a1/html5/thumbnails/5.jpg)
Utilization of Pricing Concept
![Page 6: BMW Pricing Strategy](https://reader033.vdocument.in/reader033/viewer/2022061514/563dbbc6550346aa9ab026a1/html5/thumbnails/6.jpg)
Effectiveness to raise BMW’s Profits
Strategically pricing lower than competitors help to gain sales volume in the market.
Due to experience curve, lower unit margin leads to lower unit cost
BMW is also effectively doing price segmentation based on the different underlying characteristics of different customer segments.