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The History of BMW

The origins of BMW trace back to 1913 when Karl Friedrich Rapp, a Bavarian who had been a well-known engineer in a German aircraft company, formed Rapp Motoren Werke in a suburb of Munich. The company specialized in airplane engines however Rapp found that they were problematic and suffered from excessive vibration. Nearby, Gustav Otto, also an airplane specialist, set up his own shop, Gustav Flugmaschine fabrik, building small aircraft. Presentation Transcript

Because of the faulty engines, Rapp Motoren Werke secured a contract with Austro-Daimler, who was unable to meet its demands, to build V12 Aero engines under license. The company expanded too quickly, however, and by 1916 Rapp resigned from the company because of financial troubles. In his place Franz Josef Popp and Max Friz, two Austrians, took over the company. In March that same year, Rapp Motoren Werke merged with

In 1919. was based on the circular design of an aircraft propeller. When BMW started once again to build aircraft engines in 1922. BMW's first aircraft engine went into production. Franz Zeno Diemer set an altitude record of 9.Gustav Flugmaschinefabrik to form Bayersiche Flugzeungwerke. forming the company we know today. the Type IV. In 1917. introduced in 1920. or BMW. the 6 cylinder Type IIIa. production switched to air brakes for railway cars. The current BMW logo. . no fewer than 29 world records in aviation were set with them. prohibiting BMW from building aircraft engines. using an aircraft powered by its successor. It was shortly afterwards renamed Bayersiche Motoren Werke (Bavarian Motor Works).760 meters (32.013 ft) After the Treaty of Versailles was signed in the same year.

Hopefully in the future the rivalry between these and other makes will persist and companies such as BMW will continue to build great cars. the BMW 507 quickly became famous. has remained timeless as evidenced by the newly introduced Z8. The light-alloy 2-door bodyshell with a retractable soft top. While only 252 examples of the instantly recognizable 507 were ever produced. style and technological advancements. 5. Launched in 1956. designed by Alberecht Graf Foertz. E-Marketing Strategies adopted by BMW.) CONTENT: CONTENT Company profile Sales report Product strategy Scenario before 2001 Turning point -2001 Target audience Present marketing strategies . outsold Mercedes in Europe. with BMW still having no secure financial foothold. E-Marketing Strategies adopted by BMW.M. it remains a symbol of BMW's struggles and ultimate triumphs during the fifties after the end of the War. BY. Today. Z8 and all of the 3. which draws unmistakable clues and its overall shape from it. one of the most memorable models in its history was introduced. enough for an impressive 124 mph top speed (200 km/h) but not enough to topple its main rival.A couple of years later. for the first time. 1992 was another year-to-beremembered for BMW when it. 7 and Motorsport series models continue the BMW tradition of building excellent automobiles with a special emphasis on performance.ASHISH PAREEK PGDM-IB (A. the Mercedes 300SL. A large 3168cc V8 engine using dual downdraught carburettors powered the 507 and provided 150 horsepower at 5000rpm. the Z3.S.

Egypt. The company produces and markets a varied range of higher end sporty cars and motorcycles.Malays-ia.Austria. BMW began to restructure its business. It focused on strengthening its position as the market leader in the premium segment of automobiles across the world.Thail and.Brazil.e.SouthAfrica.2% Product Offensive Strategy: Product Offensive Strategy FEATURES: In the early 2000s. The company has worldwide subsidiaries and manufacturing plants in 13 countries namely (Germany. it adopted a product offensive strategy which aimed at flooding the automobile market with new launches (i.Company Profile: COMPANY PROFILE BMW (Bayerische Motoron Worke Aktiengesellschaft) was founded in 1916 and publicly traded since 1969.Vietnam and Philippines) Product Split of BMW: Product Split of BMW Slide 5: Brand Recall Sales figure from 1996 to 2006: Sales figure from 1996 to 2006 Impact of INTERNET MARKETING is visible (30% growth) Sales volume for 2007-2008: Sales volume for 2007-2008 Fall by 8.UK. It also operates an aircraft engine division under the brand name of Rolls Royce. a new product every three .USA.Indonesia. In line with this.Mexico.

BMW increased its R&D expenditure by 53% to support this strategy.2001 Slide 12: Average work-hard. Promotion strategies before . Exclusivity the Company used advertisements as a means of marketing and these advertisements evolved in response to economic.2001: In year Mini Cooper. The company had four core values Technology. Some of the new cars launched as a part of this strategy were Mini One. new BMW 3 Series Compact.000 unique visitors compared to only 138. with a median income of about $150.000 the previous week.months). . Two-thirds were male. firm Nielsen/Net Ratings) Turning Point . Traffic to the site was up 55% to 214. BMW had overtaken Mercedes and stood second in the premium segment of the US automobile market. the “market niche” strategy. new BMW 7 Series and Z4 Roadster.000. they launched BMWFilms. Performance. (According to Web measurement. Quality. environmental and competitive changes. By 2002. big-budget.2001: Promotion strategies before 2001 Radio advertisements TV and Print ads Brochures and Price lists Events and Trade fairs Bus Advertisements Turning Point . “The Hire” (a film series consisting of five different short films) has been singled out as the first high profile. play-hard customer was 46 years old. celebrity-laden Internet marriage of advertising and entertainment. next only to Lexus The Story Before 2001…: THE STORY BEFORE 2001… Before 2001 the majority of BMW’s success is attributed to the development of consistent marketing policy.

and print and online advertising. with 60% of those registrants opting to receive more information via e-mail. BMW Car maker uses web mostly to drive its brand: BMW Car maker uses web mostly to drive its brand. the car drives out of the banner ad and around the sides of the browser window. BMW's online strategy is highly . an interesting statistic surfaced: Roughly 85% of BMW purchasers used the Internet before purchasing a BMW In addition to the BMW Films series the promotional campaign consisted of TV spots that copied trailers. 2002). to show how much it "loves corners".000 people voluntarily responded to a survey. and more than 40. and the results are compelling. Car manufacturer BMW takes the phrase 'beyond the banner' seriously. RESULTS : The guerilla public relations campaign: The guerilla public relations campaign the guerilla public relations campaign utilized several diverse promotion tactics including seeding news of the BMW Films at key Internet entertainment rumor sites and a radio DJ program in 20 key metro markets. More than 10 million films have been viewed from BMWFilms. which were designed to drive consumers to the web site (Hespos. surpassing the 200. seeding the viral campaign. Nearly 2 million people registered on the site. BMW sales increased by 12. In its ads for the BMW Compact. An astonishing 94% of registrants recommended films to others. and had no compared to 2000.000 mark for the first time in history. TARGET AUDIENCE: Slide 13: Never before (or since) had an automotive company taken such a strong stance to drive consumers to the Web. As BMW sliced and diced its market further.

even after leaving the banner. featuring full animation. meaning. ensuring that every user gets a consistent and complete brand message and that each advertiser pays only for guaranteed impressions. sponsorship and dynamic html ads like the one mentioned above to promote its brand message--the benefits of ownership in terms of the driving experience. SUPERSTITIAL ads play only once fully loaded. says BMW. banners with pulldown menus. The car company's research shows that of the people who were exposed to its online advertising in a particular environment and then visited BMW. more than 80 percent did not click through straightaway. each advertiser is given passwordprotected access to Real-Time advertising statistics. with click through considered to be a side benefit. SUPERSTITIALs can be used to achieve multiple advertising goals. non-banner ads that can be any size on the computer screen and up to 100K in file size. For online ads. Television The percentages of viewers of MSNBC and Bravo who are in . Slide 17: SUPERSTITIALs are highly in the UK. but visited later. Marketing Channels: Marketing Channels Internet 468x60 banners are sold on a runof-site (ROS) basis. direct marketing. they will appear on every search results page and on an equal rotating basis with other advertisers' banners. commerce and entertainment. that they had retained the brand message. This shows. Slide 16: The company has used traditional banners. including branding. sound and graphics capable of effectively conveying integrated advertising while protecting a Web site's performance. transitional ads which appear between pages.

The group sees e-commerce as both a challenge and an opportunity for the entire company. the time frame when the vehicle can be built with the desired fitting is fixed in few seconds and the place in the production process is immediately reserved and the manufacturing logistic department informed The BMW group has optimized internal processes to such a level that changes according to the customer wishes regarding engine capacity. Slide 21: Through the system. The BMW Groups production network is characterized by agility. both to existing and potential customers.5% compared to 2000 During the four month core of the promotion. color upholstery can be accommodated up to ten working days before the start of the production without effecting the delivery BMW. E-Commerce In BMW: E-COMMERCE IN BMW the BMW group uses e-commerce strategies to explore the market for effective business.7 percent. BMW sales increased by 12. The percentage of viewers in BMW’s target age group (25-34) is 26. through providing an environment inclusive. utilizes the internet as an integral tool for developing superior customer relations. through expressing views and providing feedback on product development . the films were viewed more than 11 million times Click through on that Superstitial was 4.5%. Print DVD Result Of The Campaign: RESULTS OF THE CAMPAIGN In 2001.5%.BMW’s target income bracket constitute 20. the ability to respond quickly and flexibly within a changing framework The BMW group introduced an online ordering system in 1998 which gives dealers the option of showing customers their desired car on the screen and confirming the delivery date on the spot.

600 new BMW vehicles of all types. In 2002 customer database system was Unitrac contact management system Goldmine was a critical component of BMW’s shift from a sales orientation to an organization-wide customer-centric focus. musicals.5 per cent market share Last year. New Zealanders snapped up a total of 1. We Swear. Brisbane BMW are notified via email lead sheets and customer registration data is automatically compiled in a registration database making it ideal for tracking and follow up. advising what time and day they would like a test drive.Slide 22: BMW is the leader in New Zealand’s booming luxury car market. holding a 24. BMW chose Goldmine because it offered several key benefits: Offer excellent value of money Customization to individuals requirements Company has single view of customer relationship increasing the company’s ability to ensure satisfaction. Registrations for Events and New Vehicle Test Drives: New Vehicle promotions and Event Registrations are sent out via email. allowing customers to easily register via online forms. Goldmine enables us to get a snapshot of the environment incredibly quickly Implementation of CRM Present Marketing Strategies: Present Marketing Strategies E-mail Marketing e-catalogue Brochure Registration for test-drive Mail alert Personalization message News alerts New car launches Used car specials Events VIP Club Info -Concerts. movies and related show information BMW accessory offers Customer Thank you and congratulation brochures Campaign For Its Luxury Certified “Pre-Owned. Registering .” Program Excellent information Major e -Marketing strategies: Major e -Marketing strategies Website Registration Forms: Permission based forms allow web visitors to subscribe with automated notification allowing confirmation of subscription and thank you messages.

BMW Z4: BMW Z4 BMW recently launched an email marketing campaign for the release of the long awaited Sporty new Z4 Convertible to a select group of customers. Sale Events Notices: Regular sales event brochures are emailed to prospects and customers advising of great purchasing The purpose of the campaign was to generate interest for Test Drives. 55% read the email with Case study Brisbane BMW www. Service Reminders and Offers: Service reminders and special offers are emailed frequently as a cost effective and powerful way of keeping services up to date whilst allowing customers to take advantage of special offers. The campaign design included attractive graphics detailing the impressive characteristics of the Z4 branded Test Drive Registration forms allowing instant responses from interested recipients Within 24 hours of the 1303 recipients who the brochure was sent Slide 27: Bibliography www. Accessory Offers: The BMW accessory range is frequently promoted using email catalogue brochures.customers also receive an auto reply advising they have been booked in and will be contacted.6% responding and 4% registering instantly for a test Slide 28: .

BMW is known for its performance and luxury vehicles. and is the parent company of RollsRoyce Motor Cars.Marketing Strategy of BMW Bayerische Motoren Werke AG (info) (BMW). It also owns and produces the Mini brand. BMW was forced to cease aircraft (engine) production by the terms of the Versailles Armistice Treaty. (literally English: Bavarian Motor Works) is a German automobile. and is in fact global leader in premium car sales. BMW produces motorcycles under BMW Motorrad and Husqvarna brands. motorcycle and engine manufacturing company founded in 1916. After World War I.[3] followed by automobiles in 1928–29.[2] The company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted.[4][5][6] .

explained that the blue-and-white company logo did not represent a spinning propeller. to signify the white blades cutting through the blue sky – an interpretation that BMW adopted for convenience in 1929. and advertisement agency based in Minneapolis. BMW decided to come up with a unique way of reaching its target audience. Fallon developed the concept “The Hire” series. quoting "At the BMW Museum in Munich. Anne Schmidt-Possiwal. twelve years after the roundel was created. Fallon's responsibility also included the way in which these movies were to be delivered to BMW's target audience. as well as actors. the origin of the logo being based on the movement of a propeller is in dispute. reversed to produce the BMW roundel. In order to attract highly recognized directors. It was also questionable whether the campaign should be the same throughout the world. from which the BMW company grew.[7][8] The emblem evolved from the circular Rapp Motorenwerke company logo. according to an article recently posted by the New York Times. MN. to come up with a new campaign. . The company did so by hiring Fallon Worldwide.The circular blue and white BMW logo or roundel is portrayed by BMW as the movement of an aircraft propeller. combined with the white and blue colors of the flag of Bavaria. or if it should be localized to adapt to language and consumer taste differences. However. but was meant to show the colors of the Free State of Bavaria." [9] BMW Marketing Innovation since the competition started to imitate BMW’s advertising messages of outstanding quality.

the Philippines and Vietnam. and markets.BMW was willing to spend a large amount of money. the UK. which the brand needs to do to combat negative perceptions some people have based on old associations with the 80’s style yuppie arrogance. The company produces. a varied range of higher end sporty cars and motorcycles. although the production figures are limited by the lack of a respective filling station net. 1%. the USA. In addition to cars and motorcycles. BMW operates an aircraft engine division under the brand name of Rolls Royce. 3% and other. BMW also wanted to change their image. Malaysia. Indonesia. Brazil. 18%. BMW has also manufactured the first passenger car running on hydrogen ready for common use. One of the goals was to make BMW look. In addition to coming up with a unique advertising campaign. Company Profile BMW (Bayerische Motoren Werke Aktiengesellschaft) was founded in 1916 and has been publicly traded since 1969. Egypt. . which offers financing for vehicles. not only cool. The company also operates its own financing company. vehicle finance leasing. The company has worldwide subsidiaries and manufacturing plants in Germany. but likeable. Austria. motorcycles. Thailand. Mexico. Automobiles accounted for 78% of 2000 revenues. South Africa.

including BMW. / Courtesy of BMW Korea German automaker targets premium segment only and succeeds By Park Young-ryeol The world has continued efforts to globalize the market. Global players. a prominent automaker from Germany. . to cater to the buyers of the flagship luxury sedan. one of the wealthiest districts in southern Seoul.Global marketing strategy of BMW A BMW 7 Series sedan is displayed inside the BMW 7 Series Mobility Lounge which the German automaker’s Korean unit opened in Cheongdam-dong.

BMW seems to understand this logic of the necessities for global marketing in an ideal manner to perform beautifully in the Korean market. . In order to create a successful marketing plan. BMW initiated the goal of segmenting the premium market by optimizing the fit between the purchasing behavior of consumers and the marketing mix to maximize sales to that segment.are vigorously articulating marketing strategies to create value that better serves customer needs. Firms eloquently and heavily emphasize marketing functions because they play a critical part in identifying gaps in the market and developing new products and services to fill those gaps. managers must configure the varying aspects of marketing mix and identify precise market segmentation to understand different patterns of customer purchasing behavior. BMW implemented a different marketing mix to sell cars to different socioeconomic segments. Responding sensitively to unique values and purchasing behavior enabled BMW to transcend intended performance. aggressively emphasizing premium segments.