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Executive Summary

            Due to the growing business competition and changing consumer trends, BMW had

decided that the company needs to have a marketing program that is based on the principles

of relationship marketing (RM). The program will be developed mainly to attain and obtain

customers from the Australian luxury market. The situational analysis of the company

indicated that the company does have the potential to support the program and its

requirements. Based on the needs of the company and its objective, the RM program will

involve the use of a strategy known as integrated marketing communication (IMC). This will

allow the effective combination of various communication channels to satisfy the needs of

the customers.

 

Three IMC tools had been included for the program. These include media promotion,

product assistance and customer service hotline. Through these tools, the company will be

able to address its market concerns with stronger customer relations, high rates of loyalty and

better brand equity. The program would have to be monitored in order to ensure success. For

this purpose, performance measurement, with both financial and non-financial indicators, will

be used. Specifically, monthly sales reports, records of repeat orders and customer feedbacks

will be used to monitor the program’s success.

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Objectives

            As the description of the RM strategy clearly imply its suitability to the case of

marketing, a relationship marketing program to promote its new product would be

appropriate. This program specifically aims the following objectives:

1. To create a higher level of customer satisfaction by means of providing product

assistance and information

2. To establish better brand equity through the effective use and combination of various

marketing media forms

3. To achieve customer loyalty through continuous provision of quality customer

services

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INTRODUCTION

Bayerische Motoren Werke (BMW), ( English: Bavarian Motor Works) is a German

automobile, motorcycle and engine manufacturing company founded in 1916. It also owns

and produces the Mini brand, and is the parent company of Rolls-Royce Motor Cars. BMW

produces motorcycles under BMW Motorrad and Husqvarna brands. BMW is known for its

performance and luxury vehicles, and is a global leader in premium car sales.

Capture 01: BMW Aircraft Engines (1917)

BMW entered existence as a business entity following a restructuring of the Rapp

Motorenwerke aircraft engine manufacturing firm in 1917. After the end of World War I in

1918, BMW was forced to cease aircraft engine production by the terms of the Versailles

Armistice Treaty. The company consequently shifted to motorcycle production in 1923 once

the restrictions of the treaty started to be lifted, followed by automobiles in 1928–29.

The circular blue and white BMW logo or roundel is portrayed by BMW as the movement of

an aircraft propeller, to signify the white blades cutting through the blue sky – an

interpretation that BMW adopted for convenience in 1929, twelve years after the roundel was

created. The emblem evolved from the circular Rapp Motorenwerke company logo, from

which the BMW company grew, combined with the blue and white colors of the flag of

Bavaria, reversed to produce the BMW roundel. However, the origin of the logo being based

on the movement of a propeller is in dispute, according to an article posted in 2010 by the

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New York Times, quoting "At the BMW Museum in Munich, Anne Schmidt-Possiwal,

explained that the blue-and-white company logo did not represent a spinning propeller, but

was meant to show the colours of the Free State of Bavaria.

BMW's first significant aircraft engine was the BMW IIIa inline-six liquid-cooled engine of

1918, much preferred for its high-altitude performance. With German rearmament in the

1930s, the company again began producing aircraft engines for the Luftwaffe. Among its

successful World War II engine designs were the BMW 132 and BMW 801 air-cooled radial

engines, and the pioneering BMW 003 axial-flowturbojet, which powered the tiny, 1944-

1945- era jet-powered "emergency fighter", the Heinkel He 162 Spatz. The BMW 003 jet

engine was tested in the A-1b version of the world's first jet fighter, the Messerschmitt Me

262, but BMW engines failed on takeoff, a major setback for the jet fighter program until

successful testing with Junkers engines.

By the year 1959, the automotive division of BMW was in financial difficulties and a

shareholders meeting was held to decide whether to go into liquidation 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 some of Germany's ex-aircraft manufacturers such 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 BMW's own motorcycle engine. This was moderately

successful and helped the company get back on its feet. The controlling 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.

BMW acquired the Hans Glas company based in Dingolfing, Germany, in 1966. It was

reputed that the acquisition was mainly to gain access to Glas' development of the timing belt

with an overhead camshaft in automotive applications. Glas vehicles were briefly badged as

BMW until the company was fully absorbed.

In 1992, BMW acquired a large stake in California based industrial

design studio DesignworksUSA, which they fully acquired in 1995. In 1994, BMW bought

the British Rover Grouo. (which at the time consisted of the Rover, Land Rover and MG

brands as well as the rights to defunct brands including Austin and Morris), and owned it for

six years. By 2000, Rover was making huge losses and BMW decided to sell the combine.

The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while

Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to build the new

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Mini, which was launched in 2001. Chief designer Chris Bangle announced his departure

from BMW in February 2009, after serving on the design team for nearly seventeen years. He

was replaced by Adrian van Hooydonk, Bangle's former right hand man. Bangle was known

for his radical designs such as the 2002 Series and the 2002 Z4. In July 2007, the production

rights for Husqvarna Motorcycles was purchased by BMW for a reported 93 million euros.

BMW Motorrad plans to continue operating Husqvarna Motorcycles as a separate enterprise.

All development, sales and production activities, as well as the current workforce, have

remained in place at its present location at Varese.

VISION & MISSION

Our Vision

The fact that we are in business since 1956 and are family-owned is the cornerstone of who

we are and why we are different from the competition.

"We Treat You Like F.A.M.I.L.Y."

          Family Treatment

          Attitude is Key

          More than the Customer Expects

          Individual Attention with Enthusiasm

          Like an Honored Guest

          You make the Difference

Mission Statement

We will provide our clients with the best customer treatment experience. We will under-

promise and over-deliver in all we do. We will sell and service our products with the highest

quality and integrity. We recognize that the greatest asset in achieving our Mission is the

individual effort of each employee.

All of our staff will be indoctrinated with our vision. Further, they will be asked to define,

and therefore to understand, what their role in the accomplishment of that mission is. Their

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own definition, from a customer's point of view, can then be applied in their own personal job

description on a daily basis.

OPEN DOOR POLICY AND FAIR TREATMENT PROCESS

The Dealership believes in and supports equal employment rights for all employees. It is our

Dealership policy to provide equal employment opportunity in all areas of personnel practice,

including recruiting, hiring, training, promotion, compensation, benefits, and all other terms

of and conditions of employment. In keeping with this policy, we will hire, train, promote

and compensate on the basis of skill, ability, reliability and performance, as well as education

and experience.

This policy will be administered without regard to race, colour, religion, sex, age, disability,

marital status, national origin, or any other protected classification.

The key to achieving our business objectives is to employ the most vital, intelligent, positive

and imaginative men and women of high character. Once employed, each employee will be

afforded the opportunity to realize maximum potential. Our greatest asset is the performance

capacity of our employees.

Marketing Strategy for BMW

It is important for BMW to be addressing each individual element of marketing mix in an

appropriate manner. It can be elaborated that “the marketing mix is the set of marketing tools,

the so-called 4Ps: Product, Price, Place and Promotion, a company uses to pursue its

marketing objectives in the target market” (Sokolowski, 2011, p.2).

Acknowledging paramount significance of all Ps in marketing mix is important in a way that

effective marketing strategy cannot compensate shortcomings associated with a poor quality

or inadequate pricing strategy.

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Advertising

Advertising can be defined as “the activity or profession of producing information for

promoting the sale of commercial products or services” (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, engagement 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 image materials that motivate salon

visitors to commit to the purchase.

 

Public Relations

Effective public relations need to play an integral part in BMW marketing strategy. It is

important for BMW to maintain regular contact with all organisational stakeholders with the

use of various marketing communication 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 corporate social responsibility initiatives BMW management is also

recommended to increase the level of its association with local charities in the UK such as

Oxfam, NSPCC, or Cancer Research UK.

Moreover, BMW management can initiate the development of identity magazine of the

BMW Group which can cover the latest trends and news in local and global automobile

industry and at the same time serve as an effective channel to communicate the marketing

message to the target customer segment.

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Sales Promotion

Sales promotion involves offering short-term incentives for potential customers to commit to

the purchase of products and services. BMW Group is recommended to use sales promotion

in the UK market in an occasional manner 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

note 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

depreciation of BMW premium brand value.

Product :

BMW Group wants an efficient and dynamic look to their products. The major emphasis of

BMW Group is on product innovation and development.

The latest versions of BMW Group include BMW 1 Series, 3 Series, 5 Series, 6 Series and 7

Series, BMW Z4-Roadster etc. The most recent version of MINI includes the “MINI

Countryman”.

In recent times, BMW Group has started making smaller cars, which shows the company’s

innovative structure. Also because of the increasing competition in car industry, BMW Group

has to come up with some new innovative cars to compete with its competitors. In 2009,

BMW Group was named as “Greenest Premium Manufacturer” by Clean Green Cars website

and wins accolades at Fleet news awards 2009 for fuel saving.

Price :

The prices of BMW Group are based on a differentiated strategy. This means that they charge

extra for premium quality. This difference in prices is due to each cars different engine size,

gear levels, fuel consumption, sports version.

Promotion:

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The BMW Group uses different slogans and advertisements for the promotion of its products.

WCRS has been the advertising agency of BMW Group since 1979. The company invests a

large amount of money for their cars in films e.g. the film “The World Is Not Enough”. James

Bond drove the new Z8 before the car was launched and in “Austin Powers 3-Goldmember”

the MINI Cooper was used. These advertisement techniques have really helped BMW Group

in their promotion of the cars. BMW Group also promotes its cars by using slogans such as

“The Ultimate Driving Machine” and “Sheer Driving Pleasure”.

Place & Distribution:

The website of BMW Group regarding Placement and Distribution say that “BMW have 156

dealers in the UK who are franchised to sell BMW cars, additionally 148 dealers are

franchised to sell MINI Cooper. Worldwide BMW operate in 100 different countries with

over 4.400 dealers which are authorized to sell both new and used cars, parts and after sales

service products”. (www.bmwgroup.com)

Pricing Strategy of BMW:

The pricing 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 higher prices for the perceived quality.

At the macro level, there are only three pricing strategies: Skim, penetration and neutral.

There is no doubt price can be an effective way to compete for some companies. Think of

Wal-Mart, Southwest Airlines, Costco, Dell Computers, or Timex watches—all use a

penetration pricing strategy. All have used price as an effective competitive differentiation,

relentlessly driving out needless costs from their operations, passing the savings on to

customers.

On the opposite side of the spectrum is Apple, BMW, Bose, Disney, FedEx, Godiva, Gucci,

Lexus, and Nordstrom, all of which command premium prices—a skim pricing strategy—

because they offer premium quality, total quality service, and exceptional customer

experiences.

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In the middle are companies such as, Buick, Seiko watches, JC Penney, Sony televisions, and

Toyota, where price plays a more neutral role.

Far more consideration should be given to which of the three generic pricing strategies will

guide the company’s pricing. Let us examine them to gain an understanding of which strategy

is appropriate given the realities of the marketplace.

Skim Pricing

In any market, there are a certain segment of buyers who are relatively price insensitive

because they value the offering so highly. Think of early adopters in the technology industry

who rush to purchase the latest and greatest gadgets, newest high-speed computers, printers,

and audio equipment.

Skim pricing is a conscious decision to sell to this segment at premium prices more

commensurate with value, thereby earning more profit than could be made selling at a lower

price to an albeit wider market. The company is not so much interested in market share as it

is in extracting the perceived value from this smaller segment of the market.

Penetration Pricing

Penetration pricing is when the company decides to set the price below the product’s value to

the customer, thereby ensuring a larger customer base. It is the trade-off of higher revenue

versus higher margins, and can be a very effective strategy especially for new entrants into

particular markets.

Penetration prices are not necessarily cheap, but they are low relative to perceived value. For

instance, Lexus used a penetration pricing strategy to bring Mercedes, Audi, BMW, and

Porsche to their knees when it launched its LS (luxury sedan) 400 in early 1989 at $35,000,

40 percent less than BMW, Mercedes, and the same as Cadillac.

Penetration pricing can be used at any stage in the service life cycle, and is usually deployed

after a steady customer base is established to drive revenue. To reiterate, though, it is a price

set relative to the product’s value, not a competitor’s price. Do not let your competitors

determine your price, as they have no interest in your company’s long-term viability.

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Neutral Pricing

The neutral pricing strategy is generally a default strategy. In effect, this strategy minimizes

the role of pricing in the marketing mix, not utilizing price to gain or restrict market share. A

firm may select this strategy when it knows its product, promotion, or distribution offers

other more powerful advantages to the customer.

The neutral price does not mean a price in between that of competitors, but in relationship to

the firm’s value. Apple laptop computers and Sony televisions, for example, are consistently

priced above competitor levels, but because they offer such excellent value, the market still

perceives the price as neutral.

SWOT analysis of BMW

This is the Bayerische Motoren Werke (BMW) AG SWOT analysis for 2013. For more

information on how to do SWOT analysis please refer to our article.

1.1.

Strengths

1. Brand reputation.BMW brand is the third most valuable automotive industry brand in

the world valued at $29 billion. In 2012,forbes has listed BMW as the most reputable

business in the world.

2. Environment friendly vehicles. The company tries to develop environment friendly

cars by making them more efficient. It offers nearly 20 models that emit C02 as low

as 140g/km. To make BMW cars more environment friendly firm’s engineers develop

new tpes of fules,such as hydrogen,too.

3. Quality product. BMW is valued on its engineering capabilities,skilled workforce and

quality product. BMW recalls their cars less often and at lower numbers than most of

its competitors do.

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4. Highly skilled workforce. Quality cars require premium material and skilled

workforce and BMW employs only the most skilled workers to produce its vehicles.

BMW sets up its assembly plants at the countries,such as USA and germany, where

there is only the most skilled vehicle asswmblers.

5. Corporate social responsibility (CSR). BMW is strongly committed to the

environment protection, employee and community well-bring and sustainability

programs. The company invests large sums in employee health management,

programs promoting balanced work life, sustainability requirements for its suppliers

and producing zero waste at its plants.

6. Strong brand presence in china. Over the last few years, BMW has seen strong sales

growth in china, the largest automotive market in the world. In 2012, BMW sold

326,444 vehicles there.

weaknesses

1. High cost structure. Producing quality cars and hiring skilled workforce results in

high costs for the business. BMW cost structure is higher than of its biggest

competitiors such as Toyota, GM and Volkswagen.

2. Weak brand portfolio.BMW group manufactures and sells only 3 brand: BMW, MINI

and Rolls-Royce. Although these brands perform well in their segment, they are

unable to serve large market needs. Therefore, BMW has to ontroduce more brands to

its portfolio to meet diverse consumer needs.

3. High price. BMW manufactures luxury cars that require best quality materials,skilled

workforce and a great brand image. All this result at a higher car prices that are often

considered as too pricey compared to other car prices.

4. Too few acquisitions and strategic partnerships. 90% of BMW growth is organic and

only 10% is from acquisition. Without acquisition, the company finds it hard to grow

even with exclusive engineering capabilities. Thus, if the company wants to grow

significantly, it has to acquire more brands and enter into strategic partnership.

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Opportunities

1. Increasing fuel prices. Increasing fuel prices open up large markets for BMW hybrid

and hydrogen cars as consumers shift towards cheaper fuel types.

2.[1.] Positive attitude towards”green” vehicles. Today consumers are more aware of the

negative effects (air pollution) caused by cars fuelled by petrol and diesel. Large

quantities of C02 emissions intensity greenhouse effect and nrgatively impact the life

on earth. Thus,consumers are more likely to buy new hybrid and hydrogen fuelled

cars that emit less or no C02 at all.

3.[2.] Expand brand portfolip. In order to grow at a higher rae, BMW should expand its

brand portfolio to meet more needs and to satisfy larger consumer market. The

company could introduce new models that aren’t currently included in its range.

4.[3.] New emission standards. A new wave or stricker regulation on vehicle emission

standards would positively affect BMW position in automotive industry. The firm

produces one the most ecological vehicles and has introduced hydrogen fuel that emit

zero C02. New vehicle emission regulations would mean 0 additional investment for

BMW while its competitiors would have to invest large sums of money to comply

with regulations and lose a share of profits.

Threats

1. Intense competition. Faces increasing competition from direct competitiors and now

tends to compete on price rather than differentiation. Moreover, the markets for

luxury cars are saturated in the developed economies, thus intensifying competition.

2.[1.] Rising raw material price. Rising prices for raw metals will lift the costs for auto

manufacturers and result in squeezed profits.

3.[2.] Decreasing fuel prices. Due to increasing extraction of shale gas, future fuel prices

should drop and make electric, hybrid and hydrogen cars less attractive. This creates

huge losses for BMW most ambitious projects, hydrogen fuelled and electric cars.

4.[3.] Growing euro exchange rate. BMW earns part of its profits outside the euro zone.

Exchange rate fluctuations threaten BMW profits if the euro will start appreciating

against other currencies

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Expantion stratagyBMW is one of the zenith ranked brand in the world‘s automobiles arena. BMW Produces

very

high quality and high priced product for higher class people in developed countries. BMW

has

developed their different types of models to deliver superior value to their targeted customers.

BMW has-

Family Cars

Touring Cars

Sports Cars

Formula One

Police Cars

Motorcycles Etc.

Family Cars

2010 Top Gear Awards winners have just been announced and the 2011 BMW 520d Touring

takes the top spot in the ―Family Car of the Year‖ category. BMW 7 or 5 series family cars

have

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are mainly 4 seats, 4 doors used for transportation purpose of family uses. As we mentioned

in

the past, built on the F11 platform, the 520d is powered by a 2.0-liter 4-cylinder common rail

turbo diesel engine which gives an excellent ratio of power consumption. The engine

produces

184 horsepower and 280 lb-ft of torque, and offers a standard consumption of just 5.1 liters of

diesel per 100 km (46.1 mpg), which corresponds to CO2 emissions of 135 grams per

kilometer.

In Germany, the BMW 520d Touring has a base price of 42,600 Euros, making it one of the

most

affordable vehicles in the 5 Series family. With excellent fuel efficiency and enough power to

haul five passengers and cargo, the 520d Touring has already become a great seller for

BMW.

Just a few weeks ago we reported that the car has been sold out until early 2011.

Touring Cars

BMW announced on 15 October 2010 that it will return to touring car during the 2012

season.

Dr. Klaus Draeger, who is in charge of the return to DTM racing (Deutsche Tourenwagen

Masters), commented that ―The return of BMW to the DTM is a fundamental part of the

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restructuring of our motorsport activities. With its increased commitment to production car

racing, BMW is returning to its roots. The race track is the perfect place to demonstrate the

impressive sporting characteristics of our vehicles against our core competitors in a

highpowered

environment. The DTM is the ideal stage on which to do this.

BMW has a long and successful history in touring car.

European Touring Car Championship (ETCC) – Since 1968, BMW won 24 drivers'

championships along with several manufacturers' and teams' titles.

Sports Cars

BMW sports cars are products of the same exacting engineering that created the world's top

performance sedan. assembling for the German market small British cars under license.

BMW

began to manufacture cars of its own design in the 1930s, and from the start, most had a

sporting

bent. The prewar highlight was the quick, pretty, and advanced-for-its-day 328 roadster.

BMW's recovery from World War II was labored as the company gambled and lost with big,

expensive sedans before resorting in 1955 to the tiny, egg-shaped Isetta to stay solvent.

It was the sensational BMW 507 sports car of 1956 that reignited the company's

highperformance

personality. Though it didn't sell well, the vitality of the 507 inspired a series of

good-handling two- and four-door cars that earned BMW credit for inventing the sports

sedan.

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Spiritual successor to the 507 was the BMW 2800CS of 1968. Discover how this shapely

coupe

and the variants that followed into the 1970s laid the groundwork for the BMW 6-Series of

highperformance

two-door models starting in 1976.

These cars led to the landmark BMW M1, a midengine supercar introduced for 1978.

Breaking

the supercar mold by being reliable and drivable as well as very fast, the M1 also inaugurated

the

famous M series of cars that represent the ultimate in BMW driving machines.

Formula One

BMW Sauber released on the circuit from Valencia, the new C29 car that will compete in the

2010 Formula 1 season. C29 is the first single car created by the team at Hinwil without the

support of the BMW manufacturer, who retired from Formula 1 at the end of four years of a

partnership with Peter Sauber.

The Formula 1 car is predominantly white, while the sides are black. The appearance of the

new

car is simple due to the absence of sponsors, but it is anticipated that their names will appear

on

the car in the season which will start in March.

The main features of the new car are the very high nose and prolonged engine casing. Thus,

BMW Sauber is the third team using a very high nose, after Ferrari and McLaren Mercedes, a

strategy adopted since last year by Red Bull Racing. On the other hand, the Swiss have

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implemented an elongated motor shell, in the style of the McLaren Mercedes, presented with

only two days ago.

BMW has a history of success in Formula One. BMW powered cars have won 20 races. In

2006

BMW took over the Sauber team and became Formula One constructors. In 2007 and 2008

the

team enjoyed some success. The most recent win is a lone constructor team's victory by

BMW

Sauber F1 Team, on 8 June 2008, at the Canadian Grand Prix with Robert Kubica driving.

Achievements include:

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.

Police Cars

Since 2005, the Association of German Car Tuners (VDAT) in cooperation with the German

Police and the country's Federal Ministry for Transport have created the "Tune It! Safe"

program

to encourage drivers to adopt safe and legal tuning practices. As part of the promotion, the

past

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four years a vehicle is converted into a police car and is exhibited at the annual Essen Motor

Show in Germany (Nov. 28 - Dec. 06). For this year's show, VDAT chose a BMW 123d

Coupe

that has been extensively modified by AC Schnitzer.

The BMW tuning specialist bumped the twin-turbocharged 2.0-liter turbo diesel engine's

output

to 241HP and 480Nm (354 lb-ft) of torque. With power being sent to the rear wheels through

a

six-speed automatic transmission, the AC Schnitzer-prepped 123d Coupe accelerates from 0

to

100 km/h (62mph) in 6.7 seconds.

Other hardware modifications include a sport suspension that drops the ride height by 30mm,

new alloy wheels wrapped in Hankook tires and a sport exhaust system.

On the outside, the 123d gets the full police treatment with original stickers and Hella

flashing

lights while AC Schnitzer also added an aero kit that comprises of a two-piece front spoiler,

rear

skirt insert, rear wing and rear roof spoiler.

The coupe's interior has been upgraded with leather bucket seats, genuine carbon fibre trim

on

the dashboard, centre console, door handles and steering wheel, complemented by the

aluminium

pedals and foot rests.

Motorcycles

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BMW began building motorcycle engines and then motorcycles after World War I. 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 side of the machine. Apart from their single

cylinder models (basically to the same 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. Featuring a unique design copied from the Zündapp KS750, its sidecar

wheel was also motor-driven. Combined with a lockable differential, this made the vehicle

very capable off-road, an equivalent in many ways to the Jeep.

In 1982, came the K Series, shaft drive but water-cooled and with either three or four

cylinders mounted in a straight line from front to back. Shortly after, BMW also started

making the chaindriven F and G series with single and parallel twin Rotax engines.

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 built-in

balance shaft, an increased capacity to 1,170 cc and enhanced performance to 100 hp (75

kW) for the R1200GS, compared to 85 hp (63 kW) of the previous R1150GS. More powerful

variants of the oilhead engines are available in the R1100S and R1200S, producing 98 hp (73

kW) and 122 hp (91 kW), respectively.

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In 2004, BMW introduced the new K1200S Sports Bike which marked a departure for BMW.

It features an engine producing 167 hp (125 kW), derived from the company's work with the

Williams F1 team, and is lighter than previous K models. Innovations include electronically

adjustable front and rear suspension, and a Hossack-type front fork that BMW calls

Duolever.

BMW introduced anti-lock brakes on production motorcycles starting 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 stability control, or anti-skid technology later in the

2007 model year.

BMW has been an innovator in motorcycle suspension design, taking up telescopic front

suspension long before most other manufacturers. Then they switched to an Earles fork, front

suspension by swinging fork (1955 to 1969). Most modern BMWs are truly rear swingarm,

single sided at the back (compare with the regular swinging fork usually, and wrongly,

called swinging arm). Some BMWs started using yet another trademark front suspension

design,

the Telelever, in the early 1990s. Like the Earles fork, the Telelever significantly reduces

dive under braking.

In July 2007, the Italian-made Husqvarna Motorcycles was purchased by BMW for a

reported €93 million. BMW Motorrad plans to continue operating Husqvarna Motorcycles as

a separate enterprise. All development, sales and production activities, as well as the current

workforce, have remained in place at its present location at Varese.[20] Husqvarna

manufactures motocross, enduro and supermoto motorcycles.

Branding

Advertisement

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The consumer-orientated strategy for this BMW ad is to sell the brand, not the product. There

is all about safety crash ratings or how many miles to the gallon it gets. It merely claims that

if you drive a BMW, you will get noticed because it is ―the ultimate attraction.‖ This ad is

not focusing on BMW‘s carline, but is focusing on what surrounds the product, the brand.

This ad shows BMW‘s brand image or personality. Products, like people, have personalities

and this idea of personification is taken literally with the picture of the BMW covering the

woman‘s face. According to BMW ― the ultimate attraction‖ is their vehicle, women are still

an attraction, just not ―the ultimate attraction.‖ Women often wonder why men refer to their

car as their ―baby.‖ Now, I understand. This ad coins adjectives such as sexy, daring and

attractive to BMW‘s brand image, which over time as become a badge product, whose

identities are socially obvious and symbolic of status. BMW‘s are known to be among the

luxury car brands, but this ad makes car buyers believe the price is totally worth it. Owning a

BMW is like dating the hottest girl in school – everyone dreams of it, but only some can

actually experience it.

This ad also shows BMW‘s attitude or tone of voice. Not only is the brand sexy and

luxurious, but it is also fierce and powerful. The picture of the BMW covering the woman‘s

face has the most power in this ad, even more than the man. When you drive a BMW, you are

in control and hold the key to dominance.

BMW is the ―ultimate driving machine‖ because it is ― the ultimate attraction‖ on the road.

Everyone will notice, when you drive a BMW. BMW‘s personality starts with the actual car,

but builds and branches off to establish a lifestyle fit for a driver, who can control his thrilling

driving machine.

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Sales PromotionBMW customers looking for the most competitive promotion to date on the BMW 7 Series

released from BMW of Morristown should head to the dealership this month in order to take

advantage. MORRISTOWN, N.J. – BMW dealership BMW of Morristown has just

announced a highly competitive promotion that will attract an incredible amount of customer

attention, and will surely make them a volume leader for the BMW X3.

BMW shoppers may now lease the BMW X3 for only $439 per month for 36 months.

The overall design of the BMW X3 places BMW drivers in the perfectly sized vehicle, with

gratifyingly, sporty handling. The X3‘s, 3.0-liter inline 6-cylinder engine produces 260-

horsepower, and easily navigates hills and rough driving conditions thanks to the x Drive

allwheel drive system.

Luxury touches are abundant and include roof rails, chrome tail pipes, 8-way power

adjustable front seats and remote entry. Also available are heated front and rear seats,

navigation system with traffic alerts, privacy glass and panoramic moon roof.

Safety features to keep BMW buyers safe includes front-door-mounted side-impact airbags,

automatic differential braking, and a crash sensor that automatically unlocks doors and starts

hazard lights.

CSR ActivityThe company is a charter member of the U.S. Environmental Protection Agency's (EPA)

National Environmental Achievement Track, which recognizes companies for their

environmental stewardship and performance. It is also a member of the South Carolina

Environmental Excellence Program and is on the Dow Jones Sustainability Group Index,

which rates environmentally friendly companies. BMW has taken measures to reduce the

impact the company has on the environment. It is trying to design less-polluting cars by

making existing models more efficient, as well as developing environmentally friendly fuels

for future vehicles.

Possibilities include: electric power, hybrid power (combustion, engines and electric motors)

hydrogen engines.

BMW offers 49 models with EU5/6 emissions norm and nearly 20 models with CO2 output

less than 140 g/km, which puts it on the lowest tax group and therefore could provide the

future owner with eco-bonus offered from some European countries.

However, there have been some criticisms directed at BMW, and in particular, accusations

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of green wash in reference to their BMW Hydrogen 7. Some critics claim that the emissions

produced during hydrogen fuel production outweigh the reduction of tailpipe emissions, and

that the Hydrogen 7 is a distraction from more immediate, practical solutions for car

pollution.

BMW don‘t have any personal selling but have a few amount of public relation activity but

not that much highlight able.

Comparative Position

Share Holders

by ownership Stefan Quandt: 17.4%

Johanna Quandt: 16.7%

Susanne Klatten: 12.6%

Free Float: 53.3%

by types Strategic investors: 46.7%

Institutional investors:

North America: 15.8%

United Kingdom and Ireland: 11.8%

Other Europe: 5.7%

Germany: 4.8%

Rest of the world: 2.5%

Other investors: 12.7%

ProductionIn 2006, the BMW group (including Mini and Rolls-Royce) produced 1,366,838 four-

wheeled

vehicles, which were manufactured in five countries. In 2010, it manufactured 1,481,253

fourwheeled

vehicles and 112,271 motorcycles (under both the BMW and Husqvarna brands).

The BMW X3 (E83) was made by Magna Steyr, a subsidiary of Magna of Canada, in Graz,

Austria under license from BMW until 2010. Over 45.973 were produced in 2009. Starting

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October 2010 the new BMW X3 (F25) is produced in BMW's plant in Spartanburg, South

Carolina, U.S.A. From September 2010, the plant is producing MINI Countryman.

It is reported that about 56 per cent BMW brand vehicles produced are powered by petrol

engines and the remaining 44 per cent are powered by diesel engines. Of those petrol

vehicles,

about 27 per cent are four cylinder models and about nine per cent are eight-cylinder models.

Competition faced by BMW

Daimler AG‘s Mercedes-Benz lost the global luxury sales crown to BMW in 2005, and now

ranks third behind both its compatriots BMW and Volkswagen AG‘s Audi in terms of global

volumes. One of the reasons why BMW and Audi have been outselling Mercedes is their

stronger foothold in the fast growing Chinese luxury vehicle market. China is the world’s

second largest premium vehicle market behind the U.S., selling just over 1.5 million units in

2013 by our estimates. The country is expected to overtake the U.S. as early as 2016, in terms

of luxury volumes bolstered by increasing disposable incomes and less penetration of luxury

vehicles at present. China has only around 79 vehicles per 1,000 inhabitants, whereas the

figure for the U.S. stands at 791 vehicles per 1,000 inhabitants. In addition, only 7% of the

total vehicle sales in China at present are constituted by the luxury segment, compared to the

consistent 10-11% for the U.S. Both Audi and BMW accounted for around 60% of the net

volumes in China last year, with Audi selling more than twice the volumes sold by Mercedes

in the country. Slower volume-growth compared to its chief competitors in China has

somewhat hampered Mercedes’ aggressive growth strategy aimed at regaining the luxury

sales crown by the end of the decade.

However, the U.S. still remains the largest market for Mercedes-Benz. The country accounted

for over one-fifths of all unit sales for the luxury automaker last year. Although posting

slower growth rates compared to China, the U.S. is still the world’s largest luxury vehicle

market. As consumers look to upgrade to luxury vehicles and/or replace their ageing vehicles,

the U.S. premium automotive market could further grow. In fact, the average age of a

passenger car in the country reached 11.4 years in 2013, while the average age stood at 8.4

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years in Europe and below 5 years in China.

Mercedes Loses Lead To BMW In The U.S.

In terms of volumes, the three German automakers are ranked in China as Audi, BMW and

then Mercedes, in that order. However, the rankings turn upside-down when considering the

U.S. premium market. Mercedes fended off growing competition from BMW to hold the lead

in the U.S. luxury auto market last year, selling over 312,500 units in the country. However,

led by a 25.5% increase in sales of light trucks, including sports utility vehicles, BMW has

overtaken Mercedes in the first five months of this year, selling 127,181 units in the U.S., up

12% year-over-year. In contrast, the brand Mercedes has sold 125,118 units in the country

during this period, up 6.5% from 2013 levels. Toyota Motor Corp‘s Lexus has also made a

steady recovery in the U.S., following the earthquake in Japan in 2011, with volumes

growing by an impressive 18.7% to 115,171 units through May in the country. Mercedes

launched the compact CLA-Class last year, along with the refreshed models of the E-Class

and S-Class, and followed it with the launch of the SUV GLA-Class and revamped C-Class

this year. The company aims to launch 30 new or refreshed models through 2020. However,

Mercedes faces stiff competition from BMW and Lexus in the U.S., and could lose out on the

number one spot in the country at the end of this year. Through May, BMW had a 23.6%

market share in the U.S. luxury segment, followed by Mercedes’ 23.2% and Lexus’ 21.4%

share (together making up 68%), by our estimates. 

BMW And Lexus Aim To Dethrone Mercedes

Mercedes has already lost the luxury market lead to BMW in the early part of this year, and

could continue to lose share, owing to the new model launches in the pipeline for BMW. The

new BMW M3 and M4, high performance versions of the compact luxury sedans 3-series and

4-series respectively, were launched in the U.S. this month. With emphasized focus on the

budding compact luxury segment, BMW could cut into Mercedes’ market share. The global

compact premium segment is expected to grow to 1.3 million units this year, and further

grow by over 30% to reach 1.7 million unit sales by the end of this decade. BMW will also

launch the new compact crossover SUV X4 in July, in a bid to gain from the rise in demand

for luxury SUVs in the U.S. While the luxury car segment grew by 4.5% year-over-year

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through May, the luxury SUV segment witnessed an increase of 9.5% in volumes during this

period. ((ref:4)) In addition, the electric car BMW i3 also went on sale last month in the U.S.,

and could make inroads in the fast growing electric vehicle market in the country, which

grew 30% through May to 42,570 units, contributing around 40% to the global electric

vehicle sales. The BMW i3 is already the best-selling electric vehicle in Germany, following

its launch late last year.

On the other hand, Lexus volumes have also recovered in the U.S., after production in Japan

was disrupted due to the March earthquake and tsunami in 2011. Lexus had been the best-

selling premium vehicle brand in the U.S. for 11 years before both Mercedes and BMW

overtook the company in 2011. However, with a refreshed IS sedan and GX SUV, Lexus will

aim to narrow its gap with Mercedes and BMW this year. The automaker could further eat

into Mercedes’ market share with the expansion of Lexus brand’s production activities in the

U.S. At present, Lexus imports all its vehicles except for the RX SUV. The luxury carmaker

will now start the production of its best-selling sedan ES 350 in the U.S. by late 2015.

Construction of the first Lexus assembly line in the country had already commenced in

Kentucky in January. The Lexus ES 350 sold 72,581 units in the U.S. last year, up 29% year-

over-year, with the ES models ranking as the fourth highest selling premium vehicle range in

the country. The plant will be operational by 2015, and Lexus may be able to supply two-

thirds of the ES demand in U.S. through production in this plant. With increase in production

within the country, Lexus will be able to evade transportation costs and also somewhat

protect itself from unfavorable movements of the Japanese yen against the U.S. dollar.

Mercedes has already lost the U.S. market lead to BMW this year, and could lose further

share to Lexus going forward.

BMW plans for future

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BMW CEO Norbert Reithofer revealed the automaker's plans for the future, all the way up to

2020. There's lots of stuff in works, but we'll try to hit each point here. First off, the

company's got a short-term five-year plan of achieving annual sales of 1.8 million vehicles by

2012. After that, it will have another eight years to reach annual sales of 2 million by 2020.

Those are big jumps from today, but BMW plans to reach them by increasing production at

its Spartanburg plant in the U.S., as well as the MINI plant in Oxford. Of course, the growing

Chinese market will also demand more BMWs, and the automaker will be happy to oblige.

Increasing production of what's currently offered in BMW dealerships won't get the

automaker all that far, so a slew of new vehicles were also announced by Reithofer. These

include expanding BMW's range of SUVs with a small X1 model, as well as producing a

four-door Gran Turismo car based off of the CS Concept that debuted in Shanghai this year.

The BMW brand will also debut what it calls a Progressive Activity Sedan, or PAS, about

which it divulged little, so we'll have to wait for more details on exactly what makes it

different from a standard sedan.

Find out the rest of BMW's new models after the jump, as well as the very long speech from

BMW CEO Norbert Reithofer in its entirety.

Conclusion

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BMW are the world most dominant brand on the title. We can say

BMW are giant in the world market. But we can post some recommendation on BMW

BMW Introduce comparatively low priced car for middle class people to get more market share.

Try to make safety cars (As BMW don‘t bother about safety but model)

More emphasize on motorcycle industry.

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BIBLOGRAPHY

http://www.leadershipreview.net/mergers-acquisitions-and-takeovers

http://www.strategicmanagementinsight.com/swot-analyses/bmw-swot-analysis.html

: http://ea ndt.theiet.org/news/2014/aug/bmw-spares.cfm

www.BMW.com

www.bmegroup-classic.com

www.vistabmw.com/Jobs-mission-statement.html

www.bmw.motorrad.com

www.bmw-welt.com

google+:http://googleplus.bmwgroup.com

www.autoblog.com/.../bmw-plans-for-future-2-million-by-2020-new

http://think.blytheco.com/bellwether/bellwether-second-quarter-2011/pricing-strategies-by-

ronald-j-baker/