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).
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.
WHAT COMES WITH A BMW??
Experience The
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Innovative Highlights
(2009) (2009)
78%
BMW 1,043,829Mini 213,670Motorcycles
82,631
Rolls Royce
918
Total 1,341,048
0%6%
200916%
SOLD CARS IN BRANDS
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
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
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Paul McGinley
CHRIS ROBSHAW
DARREN SAMMY
STIRLING M
ORTLOCK
SACHIN TENDULKAR
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)
MARKET ANALYSIS
KEY SUCCESS FACTORS
BRANDING GLOBAL POSITIONING
INNOVATION RATE
BRAND LOYALTY
BRAND AWARENESS
PROVEN QUALITY
PRODUCTION TECHNIQUES
ESTABLISHED MARKET
GROWING MARKET
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
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
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
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
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)
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.
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
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
DISCLAIMER
CREATED BY SOHAM MAZUMDAR, IIT KANPUR, DURING A MARKETING
INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM
LUCKNOW
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