Professional Documents
Culture Documents
THE ULTIMATE DRIVING MACHINE BY: RAHUL BANSAL VIVEK PATIL TOUSEEF BAIG MIRZA
1955- The BMW 503 & 507 are todays 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
VISION
To emerge as the world leader in providing premium product and premium services for individuals 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 groups 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 terms 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
Positioned itself as a luxury car that provides an exhilarating driving experience with advertising The Ultimate Driving Machine
TIME FRAME
Established itself overtime from its introduction in the US market in 1974
The new 7 series Designed for peace of mind, not just peace and quiet
New strategy with a focus on brand & product, franchise and organization
Segment-Wise Revenue
Sales
12%
2%
86%
COMPETITORS
BMW shares its segment of luxury cars with the following companies
Mercedes-Benz Lexus Acura Audi Chevrolet Nissan Porsche
27% Germany
North America
Asia Rest of Europe 10%
24%
SWOT ANALYSIS
STRENGTH
Independently owned
Product development keeps its brand distinct Focus on being The Best Extensive distribution channels
WEAKNESS
Fails to appeal wider range due to affordability of car
Maintenance cost is expensive Competitors have exclusive dealership
OPPURTUNITIES THREATS
Global expansion entering into new markets
Huge demand for smaller cars in the market Asia is the key market for BMW
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 X3, X5, X6
MINI
Z4
BMW Motorcycles
M series
PLACE
has its operations and products spread over 150 countries which are coordinated at its headquarters in
BMW
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:
continued
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
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
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 Internets fastest growing SITE
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 brands existence. The USPs of the brands must be communicated well to the end-users. An organization cant 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.