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BMW- THE ULTIMATE DRIVING MACHINE

BMW THE ULTIMATE DRIVING MACHINE

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Page 1: BMW THE ULTIMATE DRIVING MACHINE

BMW- THE ULTIMATE DRIVING MACHINE

Page 2: BMW THE ULTIMATE DRIVING MACHINE

BMW IN YEARS 1916 BMW was founded as an aircraft engine manufacturer 1929 First automobile produced 1980s BMWs position in the luxury/performance segment had firmly established 1990s BMW has 400 dealers in the US (106 sold BMW only).

Page 3: BMW THE ULTIMATE DRIVING MACHINE

BMW Motoradd built the world’s

fastest motorcycle in 1937. It was extremely

aerodynamic, had a supercharged

engine and could touch an

astonishing speed of 278

km/h.

BMW’s world headquarters are massively popular. The design is a typical example of BMW’s four cylinder engine heritage.

The signature front face grills on all BMW’s are called “Kidney Grills”. The grills first debuted in 1933 on the BMW 03

Nearing bankruptcy in

1959, BMW was almost taken

over Mercedes. BMW though, pulled back

because they found a private investor whose family till date

owns BMW shares.

BMW also designs aero plane and train interiors.

Page 4: BMW THE ULTIMATE DRIVING MACHINE

WHAT COMES WITH A BMW??

Experience The

Progress And

Discover More

Innovative Highlights

Page 5: BMW THE ULTIMATE DRIVING MACHINE

(2009) (2009)

Page 6: BMW THE ULTIMATE DRIVING MACHINE

78%

BMW 1,043,829Mini 213,670Motorcycles

82,631

Rolls Royce

918

Total 1,341,048

0%6%

200916%

SOLD CARS IN BRANDS

Page 7: BMW THE ULTIMATE DRIVING MACHINE

THE CUSTOMER

Education:

HIGH

LEADER, HARD

WORKING, AMBITIOUS

Brand Loyalty: HIGH

Income:$150,000

Sex: 2/3 MALE

Status: MARRIED, WITH NO OR ONE CHILD

Income:

$150,000

Sex: 2/3 MALE

Page 8: BMW THE ULTIMATE DRIVING MACHINE

BMW 1 Series 5-door BMW 3 Series Sedan

BMW 7 Series Sedan

BMW 6 Series Gran CoupéBMW 5 Series SedanBMW Gran Turismo

BMW X1 BMW X3 BMW X5 BMW X6

BMW 24 Roadster BMW M3 Sedan BMW M4 Coupé BMW M6 Grand CoupéBMW M5 Sedan

BMW X5 M BMW X6 M BMW i8

Page 9: BMW THE ULTIMATE DRIVING MACHINE

ADVERTISEMENTS

Paul McGinley

CHRIS ROBSHAW

DARREN SAMMY

STIRLING M

ORTLOCK

SACHIN TENDULKAR

Page 10: BMW THE ULTIMATE DRIVING MACHINE

Rivalry Among Existing

Competitors

Threat of New Entrants

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitute P & S

FORCES

WORKING IN THE MARKET(PORTER’S 5

FORCES)

Page 11: BMW THE ULTIMATE DRIVING MACHINE

MARKET ANALYSIS

KEY SUCCESS FACTORS

BRANDING GLOBAL POSITIONING

INNOVATION RATE

BRAND LOYALTY

BRAND AWARENESS

PROVEN QUALITY

PRODUCTION TECHNIQUES

ESTABLISHED MARKET

GROWING MARKET

Page 12: BMW THE ULTIMATE DRIVING MACHINE

MARKET SEGMENTATION

GEOGRAPHIC

REGION DOMESTIC,INTERNATIONAL

DENSITY URBAN

AGE 20-65GENDER MALE AND

FEMALE

DEMOGRAPHIC

LIFE-STAGE

BACHELOR, MARRIED

INCOME HIGH

OCCUPATION

PROFESSIONALS AND EXECUTIVES

BEHAVORIAL LOYALTY

HARD CORE LOYALS,SOFT CORE LOYALS,SWITCHERS

PERSONALITY

DETERMINED AND AMBITIOUS

USER STATUS

NON –USERS,REGULAR USERS,EX-USERS

PSYCHOGRAPHIC

SOCIAL CLASS

MIDDLE/UPPER CLASS

LIFESTYLE

ASPIRER, SUCCEEDER

Page 13: BMW THE ULTIMATE DRIVING MACHINE

COMPETITVE LANDSCAPE

10%

1 0%

8%

8% 5%

5%4% 4%

2% 4%

2%

Rest

27%

12%

DIRECT COMPETITORS

INDIRECT COMPETITORS

MARKET STRUCTURE SHOWS NO CLEAR MARKET LEADER MORE THAN 50 COMPETITORS

WORLDWIDE

Page 14: BMW THE ULTIMATE DRIVING MACHINE

CORE BRAND VALUES

1.QUALITY, TECHNOLOGY,

PERFORMANCE AND EXCLUSIVITY

2. CLASSIC, COHERENT

AND SIMPLE DESIGN

3. PRODUCT CONSISTENCY.

CULTURE1. PASSION

2.TEAM SPIRIT

3.TAKING RISKS

4.THIRST FOR

LEARNING

MORE INTO

Page 15: BMW THE ULTIMATE DRIVING MACHINE

PROS1. NURTURES ITS LOYAL CUSTOMERS AND PROVIDES EFFECTIVE CUSTOMER CARE.2. DIVERSIFIED PRODUCT LINE FOR DIFFERENT CATEGORIES OF PEOPLE.3. CONTINUES ITS RESEARCH TO INNOVATE AND MAINTAINS ITS SUPERIOR QUALITY, RELIABILITY AND RECOGNITION.4. NEED NOT COMPROMISE ON QUALITY OF TOP MODELS FOR LOWER PRICE RANGES THUS ALWAYS MAINTAINING SUPERIOR QUALITY.5. BOOSTS BRAND LOYALTY.

1. LOT OF RESEARCH AND EFFORT PUSHING PRIZES.3. HIGH RISK OF FAILURE OF A MODEL.4. SMALL CUSTOMER BASES WHICH EFFECT SALES DRASTICALLY DURING RECESSION OVER THE YEARS.5. HISTORICAL “YUPPIE CAR IMAGE”.

PROS

CONS

CONSFEW ISSUES

BMW ANDITS

SELCTIVE MARKETIN

G

Page 16: BMW THE ULTIMATE DRIVING MACHINE

WHAT IT CAN DO

CONCENTRATE ON THEIR MOTORCYCLE BUSINESS WHICH WILL COVER A MORE WIDE CUSTOMER BASE.

IT SHOULD NOT ONLY FOCUS ON MARKET CAPTURE BUT ALSO ON CUSTOMER RETENTION.

SHOULD FIGURE OUT HOW TO BECOME MORE RELIABLE AS A BRAND TO ITS CORE CUSTOMERS. IT CAN TARGET MASSES WITH MORE AFFORDABLE MODELS THAT ALLOW IT TO THRIVE AT TIMES OF CRISIS(THIS IS WHERE A COMPANY LIKE VOLKSWAGEN HAS BEEN BRILLIANT BY BUYING OUT PREMIUM BRANDS FROM THE MONEY IT MADE FROM THE ECONOMY CARS DURING RECESSION; NOW IT HAS ALL KINDS OF CARS SEPARATED BY THEIR BRANDS)

Page 17: BMW THE ULTIMATE DRIVING MACHINE

SEGNMENTATION POLICY AND THEWORLD WIDE RECESSION IN

2008- 2009. IS THE POLICY TOO SELECTIVE?

THE SEGMENTATION STRATEGY OF BMW IS TOO SELECTIVE, IT’S TARGET SEGMENTS ARE MAINLY THE “MODERN MAINSTREAM” & “POST MODERNS” HIGH INCOME GROUP PEOPLE. BMW HAS BEEN AN EPITOME OF LUXURY, LOYALTY, SUCCESS AND HIGH ESTEEM HENCE THE SEGMENTATION STRATEGYHAS HAD TO BE SELECTIVE.

TO CATER TO THE CHANGING NEEDS OF ITS SEGMENT IT HAS TO REDESIGN ITS PRODUCTS OR EXPAND ITS PRODUCT LINES OVER TIME. IN THIS PROCESS IT DOES LOSE SOME CUSTOMERS WHO MAY BE UNCOMFORTABLE WITH THE NEW PRODUCTS. ALTHOUGH BMW DOES LOSE SOME CUSTOMERS IN THE PROCESS, IT DOES PICK UP NEW ONES ON THE WAY. EXCLUSIVITY IS ESSENTIAL FOR A LUXURY BRAND AND BMW SHOULD NOT SHIFT FROM IT.

Page 18: BMW THE ULTIMATE DRIVING MACHINE

1. GROWTH IN ASIA2. CAR INDUSTRY ON ROAD TO RECOVERY

3. MODERATE GROWTH IN GLOBAL CARS

MARKET 4. RISING GREEN

AWARENESS

STRENGHTS WEAKNESS

OPPURTUNITIES THREATS

SWOT ANALYSIS

Page 19: BMW THE ULTIMATE DRIVING MACHINE

SUMMARY

• LUXURY VEHICLE COMPANY

• CONTINUOUSLY EVOLVING

• INVESTS LARGELY ON ADVERTISING

• HAS MAINTAINED HIGH QUALITY

• MUST BRING IN AFFORDABLE MODELS

• SOME SIGNIFICANT CHALLENGES.

• HAS EARNED A REPUTATION FOR HIGH QUALITY

ENGINEERING AND PRODUCT DEVELOPMENT.

• ENVY OF MOST OF THE AUTO MAKING INDUSTRY WITH IMPRESSIVE SALES AND

EARNINGS

• FUTURE REMAINS BRIGHT , WITH SALES AND PROFITS

CONTINUING TO OUTPERFORM COMPETITORS

Page 20: BMW THE ULTIMATE DRIVING MACHINE

DISCLAIMER

CREATED BY SOHAM MAZUMDAR, IIT KANPUR, DURING A MARKETING

INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM

LUCKNOW