Bmw Marketing Strategy 1o692r

BAVARIAN MOTOR WORKS

THE ULTIMATE DRIVING MACHINE BY: RAHUL BANSAL VIVEK PATIL TOUSEEF BAIG MIRZA

BMW- The Company HISTORY 1923

1916 RMW(RAPP MOTEREN WERKE) is found in an aircraft engine factory in Munich 1928-The first BMW automobile, the DIXI3/15 is developed in Munich

1977- BMW introduces the first 7 series car 733i

1917

Name changed to BMW

The BMW motorcycle leaves the Munich production site

1955- The BMW 503 & 507 are today’s ‘golden oldies’

1962- The 1500 model establishes the trend for the ‘new class’ of sporty cars

1981- Becomes the first European car maker to establish a subsidiary in Japan

1989- BMW has another first by producing half a million cars

VISION To emerge as the world leader in providing product and services for individual’s mobility

BEYOND THAT IT ALSO WANT THAT EACH OF ITS BRAND SHOULD HAVE ITS OWN INDIVIDUAL IDENTITY

OBJECTIVES  The ability to innovate will be an essential factor for BMW group’s success in world wide competition  Recognize early trends and respond to these rapidly with appropriate solutions  To create a perfect automobile  To give customers sheer driving pleasure combined with comfortablity and class

1923

BMW was able to establish well in the market and has seen considerable amount of growth in of sales, innovations It gained about 50000 thousand sales per annum by the year 1990 It became a recognized and sought after brand for car and two wheelers

1988

SLOGANS USED

TIME FRAME

Positioned itself as a luxury car that provides an” exhilarating driving experience with advertising”

Established itself overtime from its introduction in the US market in 1974

The Ultimate Driving Machine

Ran for 15 years-Overall brand-Focus on prestige

The new 7 series – Designed for peace of mind, not just peace and quiet

Focus on the 7 series

BMW – The Smart Choice

New strategy with a focus on brand & product, franchise and organization

Segment-Wise Revenue Sales

2%

12%

Automobiles Motorcycles Others

86%

COMPETITORS BMW shares its segment of luxury cars with the following companies • • • • • • •

Mercedes-Benz Lexus Acura Audi Chevrolet Nissan Porsche

Region- Wise Revenue We can see that BMW is present world wide and its products are being sold everywhere extensively 24%

27%

North America Asia Rest of Europe 10%

24%

SWOT ANALYSIS STRENGTH

WEAKNESS

OPPURTUNITIES THREATS

Independently owned

Fails to appeal wider range due to affordability of car

Global expansion entering into new markets

Oil prices increasing

Product development keeps it’s brand distinct

Maintenance cost is expensive

Huge demand for smaller cars in the market

Governmental policies changing

Focus on being ‘The Best’

Competitors have exclusive dealership

Asia is the key market for BMW

Environmental/ Social issues

Extensive distribution channels

Perceived to be There is market for affordable only by the luxury cars upper class

PRODUCTS • Bmw majorly provides exclusive products with a perfect blend of features and quality • Its product are extensive in range and boast of a bag full of suprises that promise to be class APART 3,5,7.SERIES Rolls Royce Motor Car

MINI

BMW Motorcycles

X3, X5, X6

Z4

M series

PLACE BMW

has its operations and products spread over 150 countries which are coordinated at its headquarters in

MUNICH The worldwide production network of the BMW Group is the backbone for growth in the global market .due to the close cooperation between all of the plants, manufacturing takes place quickly and flexibly. This creates significant advantages in the international market. The BMW Group currently has 17 production facilities in six countries:

Berlin Rosslyn Shenyang Spartanburg to name a few

continued………

Bmw follows a very simple channel of distribution i.e.

Producer

Dealer

Customer

as u can see BMW follows a very simple distribution channel . Their main aim is to provide luxury comfort and a memorable experience to its customers . they have exquisite dealer showrooms which are present globally to provide a class apart purchasing experience.

PROMOTION BMW has devised and uses various promotional techniques and tools , mediums . some of them are as follows:  television commercials-BMW uses TV ads and commercials as it attracts a large group of viewers . it helps to convey the message with sight , sound and motion which gives their products instant credibility

 internet-it gives mass reach as it is not bounded by geographical regions nationalities .it is also very less expensive as compared to traditional media .it allow quick communication between visitor and co. via filling order forms e-mails and live chats makes session and sales very interactive

 print- BMW uses print media because print media ensures loyal readerships , specific target audience , long life spans

 Event sponsorships- BMW sponsors prestigeous events like motorsports racing , golf events and yatch sporting events etc.such events bring about their sportiness professionalism and leadership spirits . it all is done to establish BMW as a class and luxury brand that people want to be associated with apart from creating brand awareness . Some popular events are BMW MOTOSPORTS

BMW GOLF SPORTS BMW YATCH SPORTS

THE HIRE • The Hire is a series of eight short films. • The films were made to lure upscale, mostly male audience. • To exploit the popularity of the Internet. • It is estimated that over 85% of potential car buyers will conduct their initial research on the Internet before they buy • After the series began, BMW saw their sales numbers go up 12% from the previous year • Following the web site films, traffic to the site was up 55% to 214,000 compared to only 138,000the previous week. • BMWFilms.com was one of the Internet’s fastest growing SITE

BMW launches all-new Mobile Showroom • BMW India have plans to launch the innovative BMW Mobile Showrooms in Karnal , Agra (Uttar Pradesh), Dehradun (Uttarakhand), Jamshedpur (Jharkhand), ETC to reach customers in emerging markets across India. • The BMW Mobile Showroom will give customers an opportunity to experience the BMW brand, where they can test drive vehicles, interact with product experts and avail promotional financial offers and discounts from BMW Financial Services. • The BMW Mobile Showroom will reach those cities that have the potential to be covered under the existing BMW sales and service network.

• market refers to a set up where two or more parties are involved in transaction of goods and services in exchange of money. • It is the responsibility of the marketers to create awareness of their products amongst the consumers. It is essential for the individuals to be aware of the brand’s existence. The USPs of the brands must be communicated well to the end-s. • An organization can’t afford to have similar strategies for product promotion amongst all individuals. Not every individual has the same requirement and demand.

• • • • •

The marketers thus came with the concept of STP. STP stands for: S - Segmentation T - Targeting P - Positioning NOW WE SHALL STUDY THE STP STRATEGIES OF BMW

SEGMENTING BMW basically divides its segments on the basis of some important aspects . they are as follows Income basis-it divides people on the basis of their income generation . like people earning between $10000-40000 are kept in 1 group b/w $45000-80000 in another and so on  Age basis  gender basis  Geographical region basis

TARGETING • • • • •

The target market for BMW includes: Upper class Generation X Average work hard and play hard types in their mid forties. most male , married. The median income about $1,50,000. Creative class High net worth Individuals and Professionals who earn $90,000 and above per annum.

THANK YOU BY-RAHUL BANSAL VIVEK PATIL TOUSEEF MIRZA