Sujin Rye, Junyoung Eum, Daniel Bae, Rosa Hernan-dez

Current CEO: Norbert Reithofer (2006~)

28 plants through 13 countries

2012 Revenue : €60,477 millions

2013 Revenue : €68,812 millions

Employees : 109,871

Executive Sum-mary

Background & Her-itage

BMW (Bavarian Motor Works), founded in 1916

Originally 3 aircraft engine manufactures

Product first vehicle in 1929

By the 1980s, established itself in the luxury/ perfor-mance segment of the global automotive market

Subordinated companies (Mini, Rolls Royce)

Fun fact

https://www.youtube.com/watch?v=plxNfU-PA2c

https://www.youtube.com/watch?v=VmyuA_Zp0CU

Stimulating Market Performance for BMW ad

Comparative Method

Brand based comparative method:it is a method tries to examine consumer’s response to identical marketing response to different brand in the same product cate-gory

Comparative Method

Marketing based comparative method :

tries to understand consumer response under

different marketing promotions

Warranty changed

• California emission control warranty

• 7yrs 70,000 miles to 15yrs 150,000miles

Conjoint Anal-ysis

Survey-based multivariate technique that enables

marketers to profile the consumer decision process

with respect to products and brands

The case held in 1999 regarding 3series

Case Study - Ob-jective

In 1999, the 3rd generation 3-series designed ascompact car; offered minimal passenger comfort Received complained regarding 3-series cramped

rearseat and other interior for purchasing $40,000

forcompact (plastic interior heavily criticized)

Faced new competition from other luxurious brand

Case Study - Solu-tions

Using the conjoint analysis and figuring out mostimportant factors in purchasing behavior for a new vehi-

cle

Two most important factor for producing the safest and best

driving machine• Product components and product qualities

Benchmarking competitors’ product • Analyzing their noise control and comforts

A goal for new 3 series is to be one of the quietest, safest,

comforts in its class

6. Interbrand’s Brand Valuation

Interbrand is an Ameri-can global branding consul-tancy, specializing in vast brand services including brand strategy, brand analyt-ics, brand valuation.

Segmentation

Demographic :men and women aged 30-50 years oldBehavioral :These people have successful image

Geographic :Main markets are Europe and North America

Financial Anal-ysis

BMW’s economic profit : net value added minus government/public sector

Economic profit :2012 : €15,678 million2013 : €16,121 million

Demand Analy-sis

Role of brand :measures the part of the pur-chase decision that is attribut-able to the brand.

Role of Brand Index : quantifies this as a percentage

Overall Brand Perception

Brand Score

Mercedes-

Benz

77

BMW 66

Porsche 21

Jaguar 15

Land Rover 11

Competitive Analysis

Brand reputation

Quality products

Environment-friendly ve-hicles

BMW Brand Value

BMW Brand Value

Topped US luxury auto sales in 2012

Increased car sales 40 percent in the Chinese mar-ket

Sustainability and urban mobility• i3 and i8 models• Chargepoint mobile app

BMW Brand Value

Largest markets for electric vehicle sales• US, China & Europe

London showroom for i series of elec-tric and hybrid vehicles

Recommenda-tion

What would be the next step?• targeting lower class automotive manu-

factures?

• targeting high class automotive manu-factures?

Resources

"Mission Statement of BMW." BMW Mission Statement 2013. N.p., n.d. Web. 06 Apr. 2014.

"Measuring Outcomes of Brand Equity." Measuring Outcomes of Brand Equity. N.p., n.d. Web. 06 Apr. 2014.

Service and Warranty Information 2013. WOODCLIFF LAKE: BMW North America, LLC, June 20012. PDF.

Service and Warranty Information 2010. WOODCLIFF LAKE: BMW North America, LLC, Aug. 2009. PDF.

“2013 Car Brand Perception Survey.” ConsumerReports.org Official Site. ConsumerReports, Feb. 2013. Web. 1 Apr. 2014

“Best Global Brands 2013.” Interbrand Official Site. Inter-brand. n.d. Web. 1 Apr. 2014

Thank You!

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