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Page 1: Bmw marketing strategy

BAVARIAN MOTOR WORKS

THE ULTIMATE DRIVING MACHINEBY:

RAHUL BANSALVIVEK PATIL

TOUSEEF BAIG MIRZA

Page 2: Bmw marketing strategy

BMW- The CompanyHISTORY

1916RMW(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

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

Japan

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

oldies’

1917Name changed to BMW

1923The BMW motorcycle

leaves the Munich production site

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

sporty cars

1989- BMW has another first by

producing half a million cars

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VISION

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

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

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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 automobileTo give customers sheer driving pleasure

combined with comfortablity and class

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basic models to more advanced ones

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

1923

1988

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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

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Segment-Wise Revenue

86%

2% 12%

Sales

AutomobilesMotorcyclesOthers

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COMPETITORS

BMW shares its segment of luxury cars with the following companies

• Mercedes-Benz• Lexus• Acura• Audi• Chevrolet• Nissan• Porsche

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Region- Wise Revenue

27%

24%

10%

24%

GermanyNorth AmericaAsiaRest of Europe

We can see that BMW is present world wide and its products are being sold everywhere extensively

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SWOT ANALYSISSTRENGTH 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 affordable only by the upper class

There is market for luxury cars

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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

X3, X5, X6

Z4

M seriesBMW Motorcycles

MINI

Rolls Royce Motor Car

MANUAL GEARS WITH NO MISS SHIFT FEAURES

HYBRID TECHNOLOGY

TUBLESS WIRE

SPOKED WHEELS

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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

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continued………

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

Producer Dealer Customeras 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.

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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

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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 MOTOSPORTSBMW GOLF SPORTSBMW YATCH SPORTS

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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

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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.

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• 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-users.

• 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

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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

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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.

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THANK YOU BY-RAHUL BANSAL VIVEK PATIL TOUSEEF MIRZA