1

A PROJECT REPORT ON
Subject
Perspective management
BMW
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Introduction to planning
Most busy managers ocus more on !"#at$ o t#eir eorts% T#e emp#asis &ac'ing in many
situations is on !#o"$ o t#eir eorts t#at is being t#e p&an to get t#ere%
To i&&ustrate t#e point( consi)er t#e case o t#e man "#o "ante) to cut bac' on #is
persona& bu)get to save money t#is year% *e p&anne) to )o #is o"n gar)ening an) yar) "or'
rat#er t#an #ire a &an)scaper% One morning( #e )eci)e) t#at #e "ou&) trim a &arge tree in t#e yar)%
*e c&imbe) up t#e tree( sa"ing t#e branc#es be&o" #im% W#en #e reac#e) t#e top( #e rea&i+e)
t#at #e #a) cut o t#e on&y root bac' to t#e groun)% ,ortunate&y #e "as ab&e to a&ert a neig#bour(
"#o came "it# a &a))er to rescue #im% Just t#in' #o" some basic p&anning cou&) #ave
e&iminate) t#e prob&em%
Why a Business Plan??
STRATE-.C -/.0E
T#e most important part o any business p&an is out&ining t#e business strategy% .n act(
t#e entire purpose o t#e business p&an is to e1p&ain t#e strategy a company "i&& use to be
proitab&e% A vita& part o t#at is e1p&aining assumptions an) t#e orecasts ma)e t#ereo% 2eeping
t#is purpose in min) "#en constructing a business p&an "i&& ma'e t#e tas' muc# easier%
.magine t#at a 34year4o&) is sitting besi)e you an) as'ing 5W#y65 ater every statement you
ma'e% W#en an investor( ban' e1ecutive or potentia& contractor &oo's at a business p&an( t#e
eva&uation process is not so )ierent% ,urt#er( in or)er to eective&y ans"er a&& t#ose "#ys( it is
important to inc&u)e a &arge variety o inormation% T#is is "#y t#e business p&an encompasses so
muc# management bac'groun)( "#y t#e company "as orme)( "#at t#e goa&s o t#e company
are( "#at t#e company actua&&y )oes( #o" it )oes t#at( t#e mar'eting strategies use)( an) t#e
inancia& orecasts%
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W#en constructing a business p&an( gat#er a&& t#e peop&e "#o #ave an interest an) a voice
in t#e company%
7EN0ER E8PECTAT.ONS
Lending in its most genera& sense is t#e temporary giving o money or property to
anot#er person "it# t#e e1pectation t#at it "i&& be repai)% .n a business an) inancia& conte1t(
&en)ing inc&u)es many )ierent types o commercia& &oans
-oo) business trac' recor)
Abi&ity to repay
Staying po"er
Co&&atera&%
7en)ers e1pect in a p&an t#at t#e business s#ou&) #ave a goo) trac' recor) it s#ou&) be ab&e to
repay t#e amount borro"e) "it# interest or s#ou&) to ab&e to provi)e "it# &ong term beneits%
T#e business s#ou&) survive in t#e #uge mar'et% .n &en)ing agreements( collateral is a
borro"er9s p&e)ge o speciic property to a &en)er( to secure repayment o a &oan%

T#e co&&atera&
serves as protection or a &en)er against a borro"er9s )eau&t 4 t#at is( any borro"er ai&ing to pay
t#e principa& an) interest un)er t#e terms o a &oan ob&igation%
.N:ESTOR E8PECTAT.ONS
Competitive a)vantage; it is t#e a)vantage to "in over ot#ers in t#e
mar'et% .t is t#e uni<ueness o t#e business%
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*uge mar'et; t#e business s#ou&) be ab&e to survive in t#e #uge mar'et
an) mar'et )ynamics%
Strong management team; t#ere #as to be a proper p&anning o appointing
strong management team as t#e strategy or p&anning #as to be eicient&y
imp&emente)%
Strong mar'eting an) sa&es p&an; t#ere s#ou&) be strong mar'eting an)
sa&es p&an inc&u)e) in t#e business p&an as it )etermines t#e company=s
success%
Some s'in in t#e game; a situation in "#ic# #ig#4ran'ing insi)ers use t#eir
o"n money to buy stoc' in t#e company t#ey are running% E1ecutives can
ta&' a&& t#ey "ant( but t#e best vote o coni)ence is putting one=s o"n
money on &ine &i'e t#e outsi)e investors%
Obscene return; p&an on t#e return on pro)uct "#ic# proves to be
)isa)vantageous to t#e company so t#at t#ere is no "astage o resources%
.t is ma'ing up &oss%
E1it strategy; W#en you start a ne" business( or as you )eve&op strategies
an) p&ans to gro" your e1isting business( you nee) to t#in' about your
business exit strategy% Are you trying to estab&is# a &iesty&e business t#at
generates income "it#out p&ans to se&& it in t#e uture( or are you bui&)ing
e<uity in a business t#at you may "ant to transorm into cas#6 0epen)ing
on your goa&s( t#e type o business you c#oose an) t#e "ay you gro" it
s#ou&) be a&igne) "it# your en)4game objectives%
ENTREPRENEUR STRT BUSINESS
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To capita&i+e on an invention; entrepreneurs p&an to become entrepreneurs by capita&i+ing
on t#eir inventions an) get t#eir i)eas or innovations into t#e mar'et%
To pursue a passion; i an entrepreneur #as a passion say #e #as a passion to c#ange t#e
"or&) t#en t#ey )eci)e an) p&an to pursue t#eir passion an) p&an to ac#ieve it%
To be t#eir o"n boss; most o us "ants to become an entrepreneur because "e "ant be
our o"n boss%
To get ric#; every entrepreneur p&ans to become an entrepreneur an) start t#eir business
to become ric#%
E!IT STRTE"IES
W#en you start a ne" business( or as you )eve&op strategies an) p&ans to gro" your e1isting
business( you nee) to t#in' about your business strategy%
0epen)ing on your goa&s( t#e type o business you c#oose an) t#e "ay you gro" it
s#ou&) be a&igne) "it# your en)4game objective%
Se&&ing t#e business
Transerring t#e business to t#e ami&y member
Being ac<uire) by t#e &arger company%
#UN$IN" S%UR&ES
Savings; one can p&an to start t#e business by using #is savings to get #is pro)uct in t#e
mar'et%
,rien)s an) ami&y; t#ey are t#e best peop&e "#o be&ieve in you #ence borro"ing money
rom rien)s an) ami&y or your business is a goo) option%
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,inancia& institution> ban's; as "e a&& are a"are about t#e inancia& institutions or ban's%
T#ey provi)e us "it# )ierent types o commercia& &oans or t#e set up or start up o t#e
business%
Ange& investors; an ange& investor or ange& ?a&so 'no"n as a business ange& or inorma&
investor@ is an a&uent in)ivi)ua& "#o provi)es capita& or business in bet"een i t#e
business is stuc' up )ue to inancia& crises or ot#er un)ing prob&ems%
:enture capita&; it is a inancia& capita& provi)e) to ear&y4stage( #ig#4potentia&( #ig# ris'(
gro"t# start4up companies%
Board o' d(isors
Bryan Stra)bridge
A member o t#e &itigation practice group o 2rieg 0evau&t( a major .n)ianapo&is &a" irm( Bryan
#as a )iverse practice ocuse) primari&y in t#e areas o pro)uct &iabi&ity )eense( "#ite co&&ar
crime( an) commercia& &itigation% *e #as been invo&ve) "it# comp&e1 commercia& &itigation
matters or inancia& institutions( c&ose&y #e&) entities( pub&ic&y tra)e) corporations( an) )evotes a
signiicant part o #is practice to t#e )eense o nationa& manuacturers in pro)uct &iabi&ity cases
re&ating to t#e manuacturing( automotive( construction( an) asbestos in)ustries%
A))itiona&&y( Bryan practices in "#ite co&&ar crimina& )eense representing in)ivi)ua&s an)
corporate c&ients t#reatene) or c#arge) "it# state an) e)era& "#ite co&&ar oenses inc&u)ing
matters a&&eging antitrust vio&ations( conspiracy( corporate crimina& con)uct( a&se statements to
e)era& agencies( )rug oenses( mai& an) "ire rau)( obstruction o justice( perjury( as "e&& as
rau)%
Bryan #as a Bac#e&or o Arts )egree rom .n)iana /niversity( Master o Business A)ministration
)egree rom t#e 2e&&ey Sc#oo& o Business at .n)iana /niversity an) Juris 0octor )egree rom
.n)iana /niversity "it# Or)er o Barristers #onors%
Eric Paradis
.n ABCC( Eric Para)is "as name) Project 0irector or t#e Au)i Cana)a 0rive E1perience( a major
nationa& )riving instructiona& program uti&i+ing over orty cars% Eric #a) responsibi&ity or
running t#e entire integrate) account inc&u)ing mar'eting( agency partners#ips( overa&& event
bu)get( event management &ogistics an) training teams% T#is position "as t#e cu&mination o
t"e&ve years o e1tensive an) )iverse proessiona& )river training e1perience an) co&&aboration
"it# a veritab&e !"#o=s "#o$ &ist o auto manuacturers( inc&u)ing BMW( Porsc#e( Merce)es4
Ben+( 7otus( 7e1us( M.N.( Ma+)a( Subaru( *on)a( :o&'s"agen an) :o&vo as "e&& as tire
manuacturers Bri)gestone( Continenta&( Pire&&i an) 2um#o% *is passion an) 'no"&e)ge o
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automobi&es( automotive tec#no&ogy( an) )river training combine) "it# #is p&easant an) easy
going persona&ity #as ma)e #im one o Cana)a=s most soug#t4ater in)ustry proessiona&s%
Eric compete) as a racecar )river or many years an) )eve&ope) an) so&) #is o"n sponsors#ip
programs% *is racing e1perience inc&u)es competition in t#e Cana)ian Nationa& Pro ,,CDBB
Series( ,renc# Nationa& Pro ,,CDBB Series( T#e .n)y Pro Series an) 0.RT Stoc' Car Mo)iie)s%
A star on t#e rise in t#e Cana)ian automotive in)ustry( Eric ent#usiastica&&y &en)s #is e1pertise to
Mi&es A#ea)( #e&ping to bui&) it into t#e premier saety an) perormance )riving sc#oo& in t#e
/nite) States% *e contributes #is e1pertise to Mi&es A#ea)9s management team as specia& projects
arise%
*outy +a)enh
2outy is a ormer O&ympic at#&ete "#o compete) in t#e CEED an) ABBB Summer O&ympic -ames
as a sprinter or #is native country o 7iberia% *e "as t#e 7iberian nationa& team captain an) &ag
bearer or bot# games% *e is a 34time participant in t#e Trac' F ,ie&) Wor&) C#ampions#ips an)
t#e 7iberian nationa& recor) #o&)er in t#e G1CBB meter re&ay an) &ong jump% *e current&y "or's
or E&i 7i&&y F Company as 0istrict Manager( Mi)4At&antic Senior Care%
2outy is very active outsi)e o #is proessiona& career "it# 7i&&y% *e continues to active&y
support 7iberian sporting activities( inc&u)ing #is position as boar) c#airman o ProSyte Sports
Management( "#ic# o"ns t#e 240e&ta ema&e bas'etba&& team an) represents e&ite 7iberian trac'
F ie&) at#&etes% *e "as a"ar)e) t#e #onor o 7iberia Trac' F ,ie&) Ambassa)or( t#e #ig#est
#onor besto"e) upon an at#&ete by t#e presi)ent o 7iberia or #is continue) support o 7iberian
at#&etics% *e current&y serves as c#airman o t#e boar) o t#e 7iberian Nationa& Para&ympic
Committee%
2outy #as a Bac#e&or o Arts )egree rom But&er /niversity in Po&itica& Science an) .nternationa&
Stu)ies an) a Masters o Business A)ministration )egree a&so rom But&er% *e #as a&so been
a"ar)e) t#e Sagamore o t#e Wabas#( t#e #ig#est civi&ian #onor besto"e) by t#e governor o t#e
state o .n)iana%
,oel -and
Joe& is a CEEH gra)uate o .n)iana /niversity Sc#oo& o 7a" an) a CEEA gra)uate o 0ePau"
/niversity% *aving "or'e) or more t#an a )eca)e as a )eputy prosecutor in Marion( *ami&ton
an) Carro&& counties( Joe& #as trie) in e1cess o IB jury tria&s an) AHB benc# tria&s or a&& types o
crimina& oenses ranging rom traic inractions to capita& mur)er%
Joe& serve) as t#e irst .n)iana Traic Saety Resource Prosecutor or t#e .n)iana Prosecuting
Attorney=s Counci& or t"o years% ,or #is eorts( Joe& #as receive) numerous a"ar)s an)
recognitions inc&u)ing t#e ABBJ M%A%0%0% Nationa& Prosecutor o t#e Kear A"ar)( t#e ABBD
.n)iana -overnor=s Counci& on .mpaire) an) 0angerous 0riving=s Outstan)ing Prosecutor o t#e
Kear A"ar)( t#e ABBH .n)iana Crimina& Justice .nstitute=s E1ecutive 0irector=s A"ar) an) t#e
ABBH Nationa& *ig#"ay Traic Saety A)ministration=s Pub&ic Service A"ar)% Joe& #as a&so
serve) as a acu&ty member or numerous continuing &ega& e)ucation seminars an) &a"
enorcement training courses t#roug#out .n)iana an) across t#e nation inc&u)ing t#e Nationa&
A)vocacy Center%
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,e'' Spi.er
Je #as been "it# BMW -roup or over t#irteen years in various ro&es( continua&&y e1pan)ing
#is e1pertise o t#e automotive in)ustry% *is scope o 'no"&e)ge ranges rom inancia& ris'
management to sa&es an) mar'eting% Je previous&y #e&) severa& ro&es "it# BMW ,inancia&
Services( inc&u)ing Sa&es an) Mar'eting Manager( :e#ic&e Sa&es an) 7ogistics Manager( an) a
ro&e in t#e Commercia& ,inance4Specia& Assets group% *e is current&y an Area Manager in t#e
Centra& Region or M.N.( a )ivision o BMW o Nort# America( 77C( "#ic# is a prou) partner
o Mi&es A#ea)%
As a at#er o t"o( Je strong&y supports t#e mission o Mi&es A#ea)% Saety on t#e roa) is
paramount to ensuring t#e "e&&being o #is 'i)s no" an) in t#e uture%
Je earne) a Bac#e&or o Arts )egree in Communication rom Bo"&ing -reen State /niversity
an) is a Certiie) Si1 Sigma B&ac' Be&t%
$/ +ichael &a0pbell
As a CEID gra)uate o /niversity o Miami Sc#oo& o 7a"( Mi'e #as practice) &a" in ,&ori)a or
over t"enty4ive years% *e receive) #is Bac#e&or o Arts )egree rom t#e /niversity o .&&inois in
CEI3% Martin)a&e4*ubbe&& recogni+es Mi'e as an A:L rate) &a"yer( t#e #ig#est peer revie"
base) rating avai&ab&e to an in)ivi)ua& &a"yer% *e is genera&&y a)mitte) to;
/%S% Supreme Court
/%S% Court o Appea&s or t#e CCt# Circuit
/nite) States 0istrict Court or t#e Sout#ern 0istrict o ,&ori)a
/nite) States 0istrict Court or t#e Mi))&e 0istrict o ,&ori)a
/nite) States 0istrict Court or t#e Centra& 0istrict o .&&inois
/nite) States 0istrict Court or t#e Eastern 0istrict o Mic#igan
A&& state courts o ,&ori)a
Ater "or'ing or severa& bouti<ue &a" irms an) serving as -enera& Counse& an) :ice Presi)ent
or t#e *averie&) Corporation( an internationa& e&ectrica& contractor base) in Miami( ,&ori)a(
Mi'e orme) #is o"n &a" irm in CEE3% Asi)e rom genera&&y representing an) a)vising a e"
se&ect corporate c&ients( #e #as ocuse) #is practice in t#e areas o comp&e1 &itigation( persona&
injury( consumer rau)( an) c&ass actions%
Mi'e9s interest in Mi&es A#ea) stems rom #is &ie &ong passion or automobi&es( "#ic# over t#e
past ive years in)s #im at t#e racetrac' regu&ar&y participating in #ig# perormance )river9s
e)ucation events t#roug#out ,&ori)a% *e is a nationa&&y certiie) )riving instructor an) a)vance)
so&o <ua&iie) )river "it# Porsc#e C&ub o America( PBOC Motorsports C&ub an) Nationa& Auto
Sport Association%
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12 Things 1234ear3%lds $on5t "et
. starte) 0ocstoc in my AB=s( ma)e t#e cover o one o t#ose c&ic#M !AB /n)er AB$ &ists( an)
to)ay . emp&oy an ama+ing group o AB4somet#ings% Ca&& me a curmu)geon( but at 3G( #o" .
came up seems so )ierent rom "#at t#is mi&&ennia& generation e1pects% . ma)e a &ot o
mista'es a&ong t#e "ay( an) . see t#is generation ma'ing t#eir o"n% .n response( #ere are my AB
T#ings AB4Kear4O&)s 0on=t get%
Ti0e is Not a Li0itless &o00odity 6 . so rare&y in) young proessiona&s t#at
#ave a #eig#tene) sense o urgency to get to t#e ne1t &eve&% .n our ABs "e t#in' "e #ave a&& t#e
time in t#e "or&) to A@ igure it out an) B@ get "#at "e "ant% Time is t#e on&y treasure "e start
o "it# in abun)ance( an) can never get bac'% Ma'e t#e most o t#e opportunities you #ave
to)ay( because t#ere "i&& be a time "#en you #ave no more o it%
4ou7re Talented8 But Talent is %(errated 4 Congratu&ations( you may be t#e
most capab&e( creative( 'no"&e)geab&e F mu&ti4tas'ing generation yet% As my at#er says( !.=&&
-ive Kou a S#4t Me)a&%$ /nreine) ra" materia&s ?no matter #o" va&uab&e@ are simp&y "aste)
potentia&% T#ere=s no pri+e or ta&ent( just resu&ts% Even t#e most seeming&y gite) o&'s
met#o)ica&&y an) painu&&y "or'e) t#eir "ay to success%
We7re +ore Producti(e in the +orning N 0uring my irst A years at 0ocstoc
?"#i&e . "as sti&& in my AB=s@ . pri)e) myse& on staying at t#e oice unti& 3am on a regu&ar basis%
. t#oug#t . got so muc# "or' )one in t#ose #ours &ong ater everyone e&se "as gone% But in
retrospect . got more menia&( tas'4base) items )one( not t#e more comp&icate) strategic p&anning(
p#one ca&&s or meetings t#at nee)e) to #appen )uring business #ours% No" . stress an oice4"i)e
ear&y start time because . 'no"( or t#e most part( "e=re more pro)uctive as a team in t#ose ear&y
#ours o t#e )ay%
Brie' introduction
T#e BMW "as oun)e) in CECJ an) its irst &ine o business "as t#e pro)uction o engines or
airp&anes% One year &ater t#e company became a pub&ic corporation% ,irst in t#e year CEA3( "#en
t#e :ersai&&es peace sti&& pro#ibite) -ermany to pro)uce airp&ane engines( t#e company &aunc#e)
t#e pro)uction o t#eir irst motorcyc&e%
A&rea)y in CEAD( t#e company=s common stoc' "as &iste) on t#e stoc' e1c#ange% .n CEAI( t#e
company gre" into a ne" mar'et t#roug# t#e ac<uisition o !Eisenac# car pro)uction$ aci&ities%
T#ey starte) t#e )eve&opment o t#eir irst sma&& si+e) car% 0uring t#e An) Wor&) War( BMW "as
#eavi&y invo&ve) in t#e pro)uction o engines or airp&anes an) ot#er "ar activities% Ater t#e An)
Wor&) War t#e company BMW( #o" "e 'no" it to)ay( starte) to evo&ve% T#e irst step "as ma)e
by t#e -erman in)ustria& *erbert Ouan)t( "#o boug#t t#e stoc' majority o DBP%
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T#e capita& injection ma)e BMW ab&e to )eve&op t#eir irst mi))&e c&ass car an) t#ereby enter
t#e broa) mar'et% .n t#e o&&o"ing years t#ings )eve&ope) <uic'&y an) automobi&es "ere
becoming t#e major part o BMW=s operations%
,or t#e irst time BMW entere) t#e &u1urious automobi&e segment in CEHC( "#ere t#ey &aunc#e)
t#e BMW HBC% .n CEIE( t#e BMW -roup issue) preerre) stoc' or t#e irst time% .n CEEG( BMW
rea&i+e) t#at t#ey cou&) on&y succee) as a car pro)ucer i t#ey cou&) )rag on t#e same economy
o sca&e as t#eir competitors%
T#e ac<uisition o t#e Rover -roup "as t#ereore a natura& step in t#e business )eve&opment%
Contrary to BMW=s e1pectations( t#e ac<uisition o t#e Rover -roup prove) to be a big ai&ure%
T#e mo)e&s "ere out as#ione) an) t#e e1pecte) sa&es igures "ere t#ereore never reac#e)%
.n ABBB( BMW pu&&e) t#e emergency bra'e an) part&y so&) t#e Rover -roup% 7an) Rover "as
so&) to ,or) an) Rover "as so&) to a Britis# investment group or t#e symbo&ic amount o CB
Poun) Ster&ing ?-uar)ian( ABBE@% T#e on&y business unit "#ic# "as 'ept "as Mini% T#e BMW
-roup e1ten)e) t#eir bran) porto&io in ABB3 t#roug# t#e ac<uisition o Ro&&s4Royce% To)ay
BMW is a #ouse o bran)s consisting o BMW( Mini an) Ro&&s4Royce%
Contrary to t#e beginning( t#e operations o t#e BMW -roup are no" no &onger &oca&( but
g&oba&ise) an) t#e strategy is no &onger ocuse) at pro)uction( but on bran)ing%
BMW .n)ia oun)e) in ABBD( BMW -roup #as investe) C%I bi&&ion .n)ian Rupees% T#e "i)e
range o BMW activities in .n)ia inc&u)e t#e estab&is#ment o a manuacturing p&ant in C#ennai(
a parts "are#ouse in Mumbai an) )eve&opment o a )ea&er organi+ation across major
metropo&itan centers o t#e country% T#e tota& number o emp&oyees at BMW .n)ia is DHB% More
t#an C(ABB a))itiona& jobs #ave been create) in t#e )ea&er an) service net"or'% By en) o ABCG(
BMW .n)ia "i&& e1pan) its )ea&er net"or' by increasing t#e number o sa&es out&ets to HB across
major metropo&itan centers an) emerging mar'ets in .n)ia%
The +ission State0ent o' the B+W "roup9
Rea)ing t#e BMW -roup mission statement( it9s easy to un)erstan) "#y t#e BMW -roup is
c&ear&y associate) "it# premium pro)ucts( premium prices( an) premium e1periences%
5T#e BMW -roup is t#e "or&)9s &ea)ing provi)er o premium pro)ucts an) premium services or
in)ivi)ua& mobi&ity%5
Beyon) t#at( eac# bran) o ve#ic&e un)er t#e BMW -roup umbre&&a #as its o"n )istinct bran)
i)enty%
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B+W Brand 4 5T#e BMW bran) stan)s or one t#ing; s#eer )riving p&easure% Sporting an)
)ynamic perormance combine) "it# superb )esign an) e1c&usive <ua&ity%5
+INI Brand 4 5T#e M.N. bran) "ins #earts an) turns #ea)s% M.N. is reres#ing&y
)ierent; e1troverte)( spontaneous an) in every respect somet#ing out o t#e or)inary%5
Rolls3Royce 4 5,or over CBB years( motor cars o t#e Ro&&s4Royce bran) #ave stoo) or
tru&y outstan)ing engineering( <ua&ity an) re&iabi&ity%5
B+W 3 T-E &%+PN4 N$ ITS PR%$U&TS
5We9re ortunate rig#t no" at BMW in t#at a&& o our pro)ucts are ne" an) competitive(5 says
Jim Mc0o"e&&( vice presi)ent o mar'eting at BMW%
BMW is one o t#e preeminent &u1ury car manuacturers in Europe( Nort# America( an) t#e
"or&) to)ay%
BMW pro)uces severa& &ines o cars( inc&u)ing t#e 3 series( t#e H series( t#e J series( t#e Q &ine
?)riven by Pierce Brosnan as James Bon) in -o&)eneye@( an) t#e ne" 8 &ine( BMW9s 5sport
activity5 ve#ic&e &ine%
Sa&es o a&& t#e BMW ve#ic&es #ave been on t#e rise g&oba&&y% *ig#4proi&e image campaigns
?suc# as t#e James Bon) promotion@ an) t#e a"ar)4"inning BMW "ebsite ?"#ere users can
)esign t#eir o"n car@ continue to increase t#e popu&arity o BMW9s pro)ucts% BMW cars
typica&&y #ave a pro)uct &ie cyc&e o seven years%
%b:ecti(es
B+W "R%WT- P%LI&4
T#e un)amenta& objective o t#e BMW -roup is to continue t#e process o proitab&e gro"t# by
concentrating on #ig#4proit mar'et segments% Precise&y( t#is is "#y t#e BMW group "i&& use t#e
potentia& o t#e BMW bran) to an even greater success in a uture%
.n t#e irst #a& o t#e year ABBB BMW #as a&rea)y ac#ieve) best sa&es resu&ts ever in t#e #istory
o t#e company%
T#e pro)uction o BMW -roup is )eve&ope) to satisy )ierent customer=s nee)s( provi)ing a
variety o mo)e&s or &u1ury( mi))&e an) &o" segments o mar'et%
12
Company constant&y "or's out ne" tec#no&ogica& )ecisions an) improvements an) no"a)ays
sets ne" stan)ar)s in pro)uction%
BMW #as a&rea)y ac#ieve) in in)ivi)ua& re<uests u&i&&ing% No" it=s ambiguous objective is to
provi)e every customer "it# #is in)ivi)ua&(persona&i+e) car on a )eine) )ate agree) in a)vance%
Moreover( BMW -roup is setting a ne" benc#mar' to process t#e time re<uire) or a ne" car in
)istribution an) pro)uction to CB )ays%
BMW Company continues to )eve&op t#e concept o #y)rogen engine automobi&e "#ic#
accor)ing specia&ists= estimations "i&& )ominate in t#e uture automotive mar'et because o t#e
&imite) natura& resources%
PR%$U&TS ; SER<I&ES
BMW "i&& ro&& out its i3 e&ectric sometime )uring t#e secon) <uarter o ABCG% 0ierent rom
anyt#ing e&se in t#e BMW s#o"room( t#e i3 is a ta&&( t"o4bo1 #atc#bac' "it# a t#ree4p&us4t"o4
)oor )esign t#at mimics t#at o t#e )iscontinue) *on)a E&ement% Wit# t#e ront )oors open( its
rear4#inge) #a&4"i)t# rear )oors s"ing out to oer easy entry into t#e interior( "it# no i1e) B4
pi&&ars in t#e "ay% T#e B4pi&&ar supports are bui&t into t#e &ea)ing e)ge o t#e rear )oors%
TE&-N%L%"4
BMW #as cars t#at come in bot# petro& an) )iese& engines% Accor)ing to t#e company( t#e petro&
engine #as a *ig# Precision .njection system t#at re)uces ue& consumption an) is part o
BMW=s Eicient 0ynamics system t#at aims to bring ue& eiciency to a&& BMW cars%
i0rive%
2eep trac' o a&& t#e important t#ings% T#e i0rive system rom BMW gives t#e )rivercomp&ete
contro& over many o t#e ve#ic&e=s unctions "#i&e a&&o"ing #im to concentrate on t#e roa)%
i0rive is t#e easiest an) most intuitive "ay to contro& entertainment( inormation(
communication an) navigation unctions% T#e goa& is to separate )isp&ay an) steering% T#e
system main&y comprises t#e Contro& 0isp&ay an) t#e Contro&&er in t#e centra& conso&e% T#e
contro& e&ement "as )eve&ope) accor)ing to t#e most mo)ern biometric princip&es% .t=s easy to
use an) canbe operate) "it# one #an) "it#out nee)ing to see "#at you=re )oing% T#e our most
13
re<uent&y use) unctions ?C0( ra)io( te&ep#one an) navigation@ are assigne) to buttons above
t#e Contro&&er%
An a))itiona& eig#t buttons &ocate) un)erneat# t#e C0>0:0 can be programme) as )esire)N be
it "it# your avourite ra)io station( C0 tit&es( te&ep#one numbers or )estinations% .n many BMW
mo)e&s( i0rive is e<uippe) "it# voice contro& or an even more comortab&e input option%
T#e #eig#t an) "i)t# o t#e Contro& 0isp&ay are optima&&y positione) to suit t#e )river% A&& t#e
inormation is )isp&aye) in t#e g&are4ree(#ig#4reso&ution screen above t#e centra& conso&e% T#e
menu navigation o&&o"s t#e stan)ar) met#o) use) in computing an) can t#us be use)
intuitive&y% Animations an) ot#er visua& ai)s <uic'&y ma'e using BMW i0rive a p&easant
every)ay activity%
+ar.et analysis
An eva&uation o t#e mar'et or a company9s goo)s an) services% ,or e1amp&e( a company
mig#t be intereste) in t#e c#aracteristics o consumers "#o are buying t#e irm9s pro)ucts( or a
comparison o its pro)ucts "it# t#ose oere) by competitors%
T#e mar'et ana&ysis section o your business p&an s#ou&) i&&ustrate your in)ustry an) mar'et
'no"&e)ge as "e&& as any o Mar'et Ana&ysis T#e mar'et ana&ysis section o your business p&an
s#ou&) i&&ustrate your in)ustry an) mar'et 'no"&e)ge as "e&& as any o your researc# in)ings
an) conc&usions% T#is section is usua&&y presente) ater t#e company )escription%
What to Include in 4our +ar.et nalysis
Industry $escription and %utloo. N 0escribe your in)ustry( inc&u)ing its current si+e an)
#istoric gro"t# rate as "e&& as ot#er tren)s an) c#aracteristics ?e%g%( &ie cyc&e stage( projecte)
gro"t# rate@% Ne1t( &ist t#e major customer groups "it#in your in)ustry%
In'or0ation bout 4our Target +ar.et N Narro" your target mar'et to a manageab&e si+e%
Many businesses ma'e t#e mista'e o trying to appea& to too many target mar'ets% Researc# an)
inc&u)e t#e o&&o"ing inormation about your mar'et;
$istinguishing characteristics N W#at are t#e critica& nee)s o your potentia& customers6 Are
t#ose nee)s being met6 W#at are t#e )emograp#ics o t#e group an) "#ere are t#ey &ocate)6 Are
t#ere any seasona& or cyc&ica& purc#asing tren)s t#at may impact your business6
Si=e o' the pri0ary target 0ar.et N .n a))ition to t#e si+e o your mar'et( "#at )ata can you
inc&u)e about t#e annua& purc#ases your mar'et ma'es in your in)ustry6 W#at is t#e orecaste)
mar'et gro"t# or t#is group6 ,or more inormation( see our mar'et researc# gui)e or tips an)
ree government resources t#at can #e&p you bui&) a mar'et proi&e%
-o) 0uch 0ar.et share can you gain? N W#at is t#e mar'et s#are percentage an) number o
customers you e1pect to obtain in a )eine) geograp#ic area6 E1p&ain t#e &ogic be#in) your
ca&cu&ation%
14
Pricing and gross 0argin targets N 0eine your pricing structure( gross margin &eve&s( an) any
)iscount t#at you p&an to use%
W#en you inc&u)e inormation about any o t#e mar'et tests or researc# stu)ies you #ave
comp&ete)( be sure to ocus on&y on t#e resu&ts o t#ese tests% Any ot#er )etai&s s#ou&) be
inc&u)e) in t#e appen)i1%
&o0petiti(e nalysis N Kour competitive ana&ysis s#ou&) i)entiy your competition by pro)uct
&ine or service an) mar'et segment% Assess t#e o&&o"ing c#aracteristics o t#e competitive
&an)scape;
Mar'et s#are
Strengt#s an) "ea'nesses
*o" important is your target mar'et to your competitors6
Are t#ere any barriers t#at may #in)er you as you enter t#e mar'et6
W#at is your "in)o" o opportunity to enter t#e mar'et6
Are t#ere any in)irect or secon)ary competitors "#o may impact your success6
W#at barriers to mar'et are t#ere ?e%g%( c#anging tec#no&ogy( #ig# investment cost( &ac'
o <ua&ity personne&@6
Regulatory Restrictions N .nc&u)e any customer or governmenta& regu&atory re<uirements
aecting your business( an) #o" you=&& comp&y% A&so( cite any operationa& or cost impact t#e
comp&iance process "i&& #ave on your business%Once you=ve comp&ete) t#is section( you can
move on to t#e Organi+ation F Management section o your business p&an%your researc# in)ings
an) conc&usion
Mar'et ana&ysis is a too& companies use in or)er to better un)erstan) t#e environment in "#ic#
t#ey operate% .t is one o t#e main steps in t#e )eve&opment o a mar'eting p&an% T#e irst step is
to con)uct mar'et researc#Ror gat#er inormation t#roug# )irect mai&( te&emar'eting( ocus
groups( on&ine surveys( etc% T#en comes mar'et ana&ysis( "#ic# invo&ves critica&&y revie"ing an)
organi+ing t#e )ata co&&ecte) so t#at it can be use) in ma'ing strategic mar'eting )ecisions% 5Just
as one "ou&) not bui&) a #ouse on san)( one s#ou&) never un)erta'e a mar'eting program t#at is
not bui&t on a irm oun)ation o mar'et 'no"&e)ge( 5 0avi) J% ,reiman state) in #is boo' What
Every Manager Needs to Know about Marketing. 5.t is remar'ab&e an) a&arming #o" &itt&e
managers o businesses rea&&y 'no" about t#eir mar'ets an) t#e ot#er e&ements o t#eir outsi)e
environments%5A goo) mar'et ana&ysis s#ou&) inc&u)e inormation on in)ustry tren)s( an
assessment o major competitors an) t#eir strategies( a revie" o t#e c#anne&s o )istribution( an)
a "i)e variety o )ata on current an) potentia& customers% T#e mar'et ana&ysis provi)es t#e input
or t#e ne1t step in )eve&oping a mar'eting p&anRmar'et segmentation( or )ivi)ing an overa&&
mar'et into 'ey customer subsets( or segments( "#ose members s#are simi&ar c#aracteristics an)
nee)s% T#e company t#en se&ects rom among t#ese segments t#e particu&ar mar'ets it "is#es to
target( an) creates a mar'eting p&an t#at "i&& appea& to t#e target customers% 5Sma&& businesses
t#at i)entiy t#e nee)s o speciic target mar'etsRe1isting an) potentia& customers "#o are t#e
ocus o mar'eting eortsRan) "or' to satisy t#ose nee)s( are more eective mar'eters( 5
accor)ing to -&oria -reen an) Jerey Wi&&iams in Marketing: Mastering Your Small
Business.Most mar'et ana&yses begin "it# a broa) stu)y o t#e overa&& in)ustry an) conc&u)e
"it# a narro" )einition o t#e company9s target mar'et% Some o t#e in)ustry actors t#at mig#t
15
be mentione) in a mar'et ana&ysis inc&u)e t#e re&ative mar'et s#are #e&) by various competitors(
t#e rate o ne" pro)uct intro)uctions( t#e tec#no&ogica& environment( an) t#e impact o
signiicant &a"s or regu&ations% A mar'et ana&ysis "ou&) a&so inc&u)e overa&& mar'et inormation
suc# as sa&es #istory( current )eman)( an) e1pecte) uture tren)s% .t is particu&ar&y important to
'no" "#et#er )eman) is increasing( )ecreasing( or remaining constant% T#e ne1t area o a
mar'et ana&ysis invo&ves creating an in4)ept# portrait o customers% T#roug# mar'et researc#( t#e
company tries to ans"er suc# <uestions as; "#o are t#e primary )ecision ma'ers an) purc#asersS
"#at are t#eir main motivating actorsS an) "#en an) "#ere )o t#ey ten) to buy6 T#e 'ey is to
un)erstan) #o" customers ma'e t#eir purc#asing )ecisions in or)er to be ab&e to in&uence t#ose
)ecisions% Mar'et researc# mig#t assess suc# )emograp#ic eatures as age( gen)er( income &eve&(
e)ucationa& bac'groun)( inancia& situation( marita& status( #ouse#o&) si+e( an) et#nic or
re&igious bac'groun)% Once t#is inormation #as been bro'en )o"n t#roug# mar'et ana&ysis( t#e
company t#en creates a )etai&e) )escription o t#e most )esirab&e segment o t#e mar'et to be
inc&u)e) in t#e mar'eting p&an% T#e mar'et ana&ysis s#ou&) )emonstrate "#y t#e target mar'et
c#osen is more avorab&e t#an ot#er segments( since t#e company "i&& be investing its &imite)
resources in mar'eting to t#at target mar'et .n a))ition to its ro&e in )eve&oping t#e mar'eting
p&an( mar'et ana&ysis #as numerous ot#er imp&ications or company strategy% 5Once "e
un)erstan) t#e p#enomena t#at un)er&ie t#e be#avior o our mar'ets( "e can assess our strengt#s
an) "ea'nesses re&ative to t#ose p#enomena% E1terna& t#reats an) opportunities nee) to be
careu&&y e1amine) so t#at "e can app&y our strengt#s to areas "it# #ig# potentia& an) avoi)
major environmenta& pita&&s% ,ina&&y( "e must &in' t#e resu&ting )iagnosis to our corporate
capabi&ities( strategies( an) constraints in or)er to ensure a goo) it bet"een our mar'eting
strategy an) major corporate goa&s an) objectives( 5 -&en 7% /rban an) Steven *% Star e1p&aine)
in t#eir boo' Advaned Marketing Strategy.Mar'et ana&ysis is a too& companies use in or)er to
better un)erstan) t#e environment in "#ic# t#ey operate% .t is one o t#e main steps in t#e
)eve&opment o a mar'eting p&an% T#e irst step is to con)uct mar'et researc#Ror gat#er
inormation t#roug# )irect mai&( te&emar'eting( ocus groups( on&ine surveys( etc% T#en comes
mar'et ana&ysis( "#ic# invo&ves critica&&y revie"ing an) organi+ing t#e )ata co&&ecte) so t#at it
can be use) in ma'ing strategic mar'eting )ecisions% 5Just as one "ou&) not bui&) a #ouse on
san)( one s#ou&) never un)erta'e a mar'eting program t#at is not bui&t on a irm oun)ation o
mar'et 'no"&e)ge( 5 0avi) J% ,reiman state) in #is boo' What Every Manager Needs to Know
about Marketing. 5.t is remar'ab&e an) a&arming #o" &itt&e managers o businesses rea&&y 'no"
about t#eir mar'ets an) t#e ot#er e&ements o t#eir outsi)e environments%5
$ata collection
An investigation cou&) be base) on t"o types o )ata primary an) secon)ary )ata %t#e primary
)ata is inormation t#at #as to be co&&ecte) (secon)ary )ata is )ata t#at is a&rea)y accessib&e %.n
stu)y o BMW bot# primary an) secon)ary )ata are use)%
SW%T N4LSIS %# B+W W%T
Strengths
>/Brand reputation% BMW bran) is t#e t#ir) most va&uab&e automotive in)ustry bran) in t#e
"or&) va&ue) at TAE bi&&ion% .n ABCA( ,orbes #as a&so &iste) BMW as t#e most reputab&e company
in t#e "or&)% nsumers buying more cars t#an ever
16
A% En(iron0ent 'riendly (ehicles% T#e company tries to )eve&op environment rien)&y cars by
ma'ing t#em more eicient% .t oers near&y AB mo)e&s t#at emit COA as &o" as CGBg>'m% To
ma'e BMW cars more environment rien)&y irm=s engineers )eve&op ne" types o ue&s( suc# as
#y)rogen( too%
3% ?uality products% BMW is va&ue) on its engineering capabi&ities( s'i&&e) "or'orce an)
<ua&ity pro)ucts% BMW reca&&s t#eir cars &ess oten an) at &o"er numbers t#an most o its
competitors )o%
G% -ighly s.illed )or.'orce% Oua&ity cars re<uire premium materia&s an) s'i&&e) "or'orce an)
BMW emp&oys on&y t#e most s'i&&e) "or'ers to pro)uce its ve#ic&es% BMW sets up its assemb&y
p&ants at t#e countries( suc# as /SA an) -ermany( "#ere t#ere is on&y t#e most s'i&&e) ve#ic&e
assemb&ers%
H% &orporate Social Responsibility @&SRA% BMW is strong&y committe) to t#e environment
protection( emp&oyee an) community "e&&4being an) sustainabi&ity programs% T#e company
invests &arge sums in emp&oyee #ea&t# management( programs promoting ba&ance) "or' &ie(
sustainabi&ity re<uirements or its supp&iers an) pro)ucing +ero "aste at its p&ants%
D% Strong brand presence in &hina% Over t#e &ast e" years( BMW #as seen strong sa&es gro"t#
in C#ina( t#e &argest automotive mar'et in t#e "or&)% .n ABCA( BMW so&) 3AD(GGG ve#ic&es t#ere%
Wea.nesses
C% -igh cost structure% Pro)ucing <ua&ity cars an) #iring s'i&&e) "or'orce resu&ts in #ig# costs
or t#e company% BMW cost structure is #ig#er t#an o its biggest competitors suc# as Toyota(
-M an) :o&'s"agen%
A% Wea. brand port'olio% BMW -roup manuactures an) se&&s on&y 3 bran)s; BMW( M.N. an)
Ro&&s4Royce% A&t#oug# t#ese bran)s perorm "e&& in t#eir segments( t#ey are unab&e to serve
&arger mar'et nee)s% T#ereore( BMW #as to intro)uce more bran)s to its porto&io to meet
)iverse consumer nee)s%
3% -igh prices% BMW manuactures &u1ury cars t#at re<uire best <ua&ity materia&s( s'i&&e)
"or'orce an) a great bran) image% A&& t#is resu&ts at a #ig#er car prices t#at are oten consi)ere)
as too pricey compare) to ot#er car prices%
G% Too 'e) acBuisitions and strategic partnerships% EBP o BMW gro"t# is organic an) on&y
CBP is rom ac<uisitions% Wit#out ac<uisitions( t#e company in)s it #ar) to gro" even "it#
e1c&usive engineering capabi&ities% T#us( i t#e company "ants to gro" signiicant&y( it #as to
ac<uire more bran)s an) enter into more strategic partners#ips%
%pportunities
17
C% Increasing 'uel prices% .ncreasing ue& prices open up &arge mar'ets or BMW #ybri) an)
#y)rogen cars as consumers s#it to"ar)s c#eaper ue& types%
A% Positi(e attitude to)ards CgreenD (ehicles% To)ay consumers are more a"are o t#e negative
eects ?air po&&ution@ cause) by cars ue&e) by petro& an) )iese&% 7arge <uantities o COA
emissions intensiy green#ouse eect an) negative&y impact t#e &ie on eart#% T#us( consumers
are more &i'e&y to buy ne" #ybri) an) #y)rogen ue&e) cars t#at emit &ess or no COA at a&&%
3% Expand brand port'olio% .n or)er to gro" at a #ig#er rate( BMW s#ou&) e1pan) its bran)
porto&io to meet more nee)s an) to satisy &arger consumer mar'et% T#e company cou&)
intro)uce ne" mo)e&s t#at aren=t current&y inc&u)e) in its range%
G% Ne) e0ission standards% A ne" "ave or stricter regu&ations on ve#ic&e emission stan)ar)s
"ou&) positive&y aect BMW position in automotive in)ustry% T#e irm pro)uces one t#e most
eco&ogica& ve#ic&es an) #as intro)uce) #y)rogen ue&s t#at emit +ero COA% Ne" ve#ic&e emission
regu&ations "ou&) mean B a))itiona& investment or BMW "#i&e its competitors "ou&) #ave to
invest &arge sums o money to comp&y "it# regu&ations an) &ose a s#are o proits%
Threats
Intense co0petition% BMW aces increasing competition rom its )irect competitors an)
no" ten)s to compete on price rat#er t#an )ierentiation% Moreover( t#e mar'ets or
&u1ury cars are saturate) in t#e )eve&ope) economies( t#us intensiying competition%
Rising ra) 0aterial prices% Rising prices or ra" meta&s "i&& &it t#e costs or auto
manuacturers an) resu&t in s<uee+e) proits%
$ecreasing 'uel prices% 0ue to increasing e1traction o s#a&e gas( uture ue& prices
s#ou&) )rop an) ma'e e&ectric( #ybri) an) #y)rogen cars &ess attractive% T#is creates #uge
&osses or BMW most ambitious projects( #y)rogen ue&e) an) e&ectric cars%
"ro)ing euro exchange rate% BMW earns part o its proits outsi)e t#e euro +one%
E1c#ange rate &uctuations t#reaten BMW proits i t#e euro "i&& start appreciating
against ot#er currencies%
&o0petition
&o0petitor
Au)i are great e1amp&es o #o" to con)uct business internationa&&y( as "e&& as #o" to maintain
#ig# proits( sa&es( an) pro)uct stan)ar)s "#i&e reusing to compromise on un)amenta&( &ong4
#e&) bran) images an) va&ues% T#e researc# an) ana&ysis comp&ete) or t#is report proves t#e
time( eort( an) #ar) "or' it #as ta'en or t#ese companies to reac# t#eir current statuses in t#e
g&oba& mar'et p&ace( but a&so )ra"s attention to t#e constant strugg&es( sacriices( an)
compromises necessary to ac#ieve common an) &oty goa&s% Bot# companies #ave entere) a
variety o oreign mar'ets t#roug# a number o )ierent met#o)s( name&y )irect oreign
investment( an) #ave succee)e) )ue to constant innovation( s'i&&e) emp&oyees( #ig#4<ua&ity
18
pro)ucts( socia&&y responsib&e practices( an) great bran) imagesS )espite t#e investment an) ris'
necessary to compete g&oba&&y% T#is report "i&& ana&y+e a&& o t#ese actors in )ept# an) #opeu&&y
inspire corporate e1ecutives( especia&&y t#ose in t#e auto in)ustry( to &ea) by e1amp&e an)
succee) in business in a g&oba& society Au)i=s recogni+ab&e &ogo eatures our interconnecte)
si&ver rings( an) t#ose our rings symbo&i+e t#e CE3A merger o our in)epen)ent ve#ic&e
manuacturers; Au)i( 02W( *orc#( an) Wan)erer%T#eseour groups orme) "#at is 'no"n to)ay
as Au)i A-% T#e origina& Au)i "as oun)e) in CEBE by August *orc# in Q"ic'au( -ermany( an)
t#e company=s primary ocus "as on bui&)ing automobi&es t#at cou&) compete in t#e &u1ury
mar'et% *orc# "as ab&e to estab&is# !a pro)uct )esign p#i&osop#y or t#e cars "it# #is )ec&are)
aim o bui&)ing on&y #ig#4<ua&ity( po"eru& mo)e&s$ ?Au)i( ABCA@%T#ese cars came to be
consi)ere) superior pro)ucts in t#e in)ustry an) &e) to impressive sa&es igures( )ue in part to t#e
#ig# stan)ar)s o manuacturing <ua&ity set by t#e company% T#e irst Au)i automobi&e "as t#e
Type A8 "#ic# "as irst put into pro)uction in CECB% T#e Type A #a) a AA #orsepo"er( Sport4
P#aeton( A%D4&iter( our4cy&in)er engine% T#e irst Au)i "it# an eig#tcy&in)er engine came in t#e
orm o t#e Type R !imperator$ &imousine( "#ic# #a) a CBB #orsepo"er( G%E4&iter engine( an)
"as irst put into pro)uction in CEAJ% T#e main )ierentiating actor o Au)i=s pro)ucts "as t#e
ront4"#ee& )rive eature% T#is eature "as origina&&y put in t#e company=s po"er unit( ca&&e) t#e
Wan)erer( a A4&iter( si14cy&in)er engine t#at "as )eve&ope) by ,er)inan) Porsc#e% Au)i #as
innovate) constant&y an) consistent&y since its ormation% ,ront4"#ee& )rive "as irst intro)uce)
in t#e CE3C 02W , C Roa)ster( "#ic# "as t#e irst4ever car to carry t#e eature an) be masse)
pro)uce) by t#e company% T#e car a&so sporte) a t"in4cy&in)er( t"o4stro'e engine t#at pro)uce)
CI #orsepo"er% Au)i "as a&so innovative in its abi&ity to bui&) &ig#t"eig#t cars% .t began by using
"oo)en rames rom CEAI to CEGA( but t#en converte) to imitation &eat#er% T#e company 3
presente) a )esign "it# an a&& a&uminum bo)y at t#e ,ran'urt Auto s#o" in CEE3( an) in CEEG( it
intro)uce) t#e a&&4a&uminum Au)i RI% Au)i states t#at( !,or a&most CBB years no"( it #as been
accepte) t#at a car=s bo)y s#ou&) be s#ape) or minimum "in) resistance in or)er to save ue&%
T#e irst e1periments in t#is )irection go bac' to t#e perio) o&&o"ing t#e ,irst Wor&) War% Au)i
con)ucte) e1perimenta& "or' on its Type 2 in CEA3( giving it a stream&ine) bo)y ma)e o
a&uminum$ ?Au)i( ABCA@% Au)i #as a&so revo&utioni+e) ve#ic&e #ea)&ig#ts "it# t#eir innovative
7E0 &ig#ts% T#ese &ig#ts "ere irst seen on t#e Au)i RI in ABBI( an) t#ey ten) to )istinguis#
Au)i rom any ot#er car bran) "#en t#e cars are )riven at nig#t% 7E0 #ea)&ig#ts oer many
beneits ot#er t#en sty&e( suc# as !virtua&&y )ay&ig#t4"#ite brig#tness( aster reaction time t#an
tra)itiona& bu&bs( &o" energy consumption an) a &ong operating &ie$ ?Au)i( ABCA@% .nnovation is
important to car companies because it a&&o"s t#em to stay a#ea) o t#e competition an) ensures
t#eir uture success( an) it seems t#at Au)i e1emp&iies t#e importance o <ua&ity an) innovation
very "e&&%
T#e g&oba& automotive in)ustry is #ig#&y a competitive mar'et( an) Au)i A- an) Bayerisc#e
Motoren Wer'e A- ?BMW@ current&y &ea) t#e &u1ury segment o t#at mar'et an) compete "it#
one anot#er very )irect&y an) ierce&y% Au)i is a subsi)iary o :o&'s"agen A- an) is
#ea)<uartere) in .ngo&sta)t( -ermany( an) it emp&oys appro1imate&y DA(IBD peop&e "or&)"i)e
?Au)i /SA( ABCA@% On t#e ot#er #an)( BMW is #ea)<uartere) in Munic#( -ermany an) emp&oys
appro1imate&y CBG(ABH peop&e "or&)"i)e ?BMW( ABCA@%
Au)i manuactures its automobi&es in si1 countries( inc&u)ing -ermany( *ungary( Be&gium(
C#ina( Bra+i&( an) .n)ia ?Pro)uction Sites( ABCA@% BMW #as a "i)er g&oba& reac#( as it operates
manuacturing p&ants across CG countries( inc&u)ing -ermany( .ta&y( -reat Britain( Sout# Arica(
19
C#ina( /SA( Austria( .n)ia( .n)onesia( Egypt( Russia( Ma&aysia( an) T#ai&an)S an) a&so
manuactures motorcyc&es in Bra+i& ?Au)i( ABCA@% Au)i #as recent&y announce) its p&ans to
estab&is# a ne" manuacturing p&ant in Nort# America( an) it "i&& re&ease t#e &ocation o t#is
p&ant )uring t#e summer o ABCA ?it is e1pecte) to be in Me1ico@% T#is ne" p&ant "i&& be part o
Au)i=s ongoing attempt to H e1pan) its g&oba& reac# an) c&ose t#e mar'et s#are an) sa&es gap
bet"een it an) number one4ran'e) BMW in t#e "or&)=s &u1ury car mar'et% Au)i=s ne" p&ant
"ou&) essentia&&y be t#e )ierence bet"een )e&ivering cars to customers in certain geograp#ica&
areas in a matter o "ee's( rat#er t#an mont#s% BMW #as #a) a signiicant manuacturing
presence in t#e /nite) States since CEEG( "#ic# #as #e&pe) t#e company maintain a strong
competitive a)vantage against Au)i% Accor)ing to Au)i=s ABCC annua& report( t#e company
recor)e) revenues o UG(GGB mi&&ion ?TH(IJI mi&&ion@( up rom UA(D3B mi&&ion ?T3(GIA mi&&ion@ in
ABCB( representing a DI%IP year4to4year increase% BMW=s ABCC annua& report states t#at its
revenues or t#e isca& year en)ing in ABCC "ere UG(EBJ mi&&ion ?TD(GED mi&&ion@( up rom U3(AG3
mi&&ion ?TG(AE3 mi&&ion@ in ABCB( representing a HC%3P year4to4year gro"t#% .n ABCC( Au)i so&)
an) )e&ivere) C(HCA(BCG cars to customers( "#ic# represente) an increase o CD%EP rom t#e
previous year ?Au)i( ABCA@% BMW so&) C(DDI(EIA cars in ABCC( "#ic# "as t#e best sa&es vo&ume
ac#ieve) in a sing&e year by t#e company in its #istory( an) a CG%CP increase rom its sa&es in
ABCB ?BMW( ABCA@%0ataMonitor( a company t#at specia&i+es in in)ustry ana&ysis( #as )eve&ope)
company overvie"s an) au)its or bot# Au)i an) BMW% .n t#e Au)i report( it states t#at t#e
company #as a #ig#er return on e<uity ?ROE@ an) a #ig#er return on assets ?ROA@ "#en
compare) si)e4by4si)e to its competitors%Au)i is e1pecte) to increase its pro)uction capacity by
JBB(BBB a))itiona& cars by ABCH in C#ina% As or .n)ia( Au)i #as a mar'et reac# o CH )ea&ers in
CH cities( "#i&e BMW #as a mar'et reac# o AH )ea&ers in CI cities% .n)ia Times c&aims t#at
BMW=s mar'et s#are in .n)ia increase) rom EP to GAP bet"een ABBJ an) ABCC ?-oya&( ABCA@%
.n)ia Times a&so reporte) Au)i=s c&aim t#at it "ou&) eventua&&y become t#e &argest &u1ury car
manuacturer in .n)ia( )ue to :W=s p&ans to invest &arge sums o money on p&ants an)
inrastructure "it#in t#e country ?-oya&( ABCA@% Bot# Au)i an) BMW #ave a&rea)y seen
increases in sa&es in t#e irst <uarter o ABCA% Au)i #as e1perience) an increase in sa&es in t#e
/nite) States an) C#ina( "#i&e BMW #as e1perience) sa&es increases in eac# o its t#ree &argest
mar'ets; T#e /nite) States( -ermany( an) C#ina% Au)i an) BMW #ave bot# been orce) to issue
reca&&s on t#eir ve#ic&es in ABCB% Bet"een ABCB an) ABCC( Au)i reca&&e) appro1imate&y HB(BBB
ve#ic&es )ue to issues suc# as )eective engine ue& pumps an) ue& system &a"s% BMW a&so #a)
to reca&& I(BBB ve#ic&es )uring ABCB an) ABCC or au&ty ue& &eve& sensors%T#ere "as a&so anot#er
reca&& in ABCB or BMW=s po"er bra'ing system &ea's( by "#ic# ABB(BBB ve#ic&es "ere aecte)
?0ataMonitor( ABCC@% T#ese reca&&s can be very )etrimenta& to t#e sa&es o t#e ve#ic&es an) can
negative&y aect t#e perception o <ua&ity o t#e company=s respective bran)s% Wit#out a c&ose
"atc# on t#e "#o&e manuacturing process( an) by ai&ing to recogni+e errors or )esign )eects(
bot# Au)i an) BMW cou&) potentia&&y e1perience a uture )ecrease in consumer coni)ence an)
overa&& sa&es% BMW #as #a) to issue more reca&&s in recent mont#s an) years( an) t#at cou&)
possib&y give Au)i t#e competitive a)vantage nee)e) as t#e company is &oo'ing to pass BMW in
mar'et s#are in &u1ury automobi&e mar'et on a g&oba& sca&e% Bot# o t#ese -erman car
manuacturers are "or'ing on 'eeping up "it# t#e current tren) in t#e in)ustry o )eve&oping
more environmenta&&y rien)&y cars( or !#ybri)4e&ectric ve#ic&es$ ?*E:s@%BMW states t#at it is
sti&& in t#e pre&iminary stages o gro"t# in regar) to entering t#e #ybri) car mar'et% Au)i( on t#e
ot#er #an)( #as #a) a strong ocus on *E:s an) #as a&rea)y broug#t 3 )ierent ve#ic&es to t#e
mar'et% Au)i is a&so e1pecte) to re&ease t"o more *E:s very soon%
20
Every business #as bot# )irect an) in)irect competitors% A )irect competitor is a company t#at
oers t#e same primary services to t#e same customer base% An in)irect competitor is a company
t#at oers t#e same or simi&ar services as part o a "i)er service oering( or t#at oers a goo) or
service t#at can serve as a viab&e substitute% Bot# types o competitors can )ra" business rom a
company( an) a goo) business p&an s#ou&) account or )irect an) in)irect competitors a&i'e One
o t#e primary )ierences bet"een )irect an) in)irect competitors is t#e business type% .n or)er
to be consi)ere) a )irect competitor( t#e competing business must be in t#e same speciic
in)ustry as t#e company un)er consi)eration% ,or e1amp&e( )irect competitor s o a movie renta&
store "ou&) be ot#er movie renta& stores an) renta& 'ios's% .n a))ition( )irect competitors serve
t#e same customer base( so on&ine renta& estab&is#ments "ou&) be a )irect competitor( even
t#oug# t#e company may not be &ocate) in t#e same geograp#y%
.n)irect competitors( on t#e ot#er #an)( "ou&) be stores t#at oer t#e same pro)uct or service(
but not as t#eir primary service% .n t#e case o a movie renta& store( t#is mig#t inc&u)e grocery
stores or ot#er retai&ers t#at inc&u)e movie renta& )epartments% Simi&ar&y( in t#e case o a rie)
c#ic'en restaurant( t#is mig#t inc&u)e t#e prepare) oo)s section o a grocery store%T#e
)ierence bet"een )irect an) in)irect competitors is not a&"ays t#at c&ear( #o"ever% .n)irect
competitors can a&so be businesses t#at oer a substitute or t#e oering o t#e primary company%
,or e1amp&e( a rie) c#ic'en restaurant competes )irect&y "it# ot#er rien) c#ic'en restaurants(
but it a&so competes in)irect&y "it# taco stan)s( #amburger joints an) ot#er <uic'4service
restaurants% W#i&e t#e speciic pro)uct oering )iers( eac# u&i&&s t#e same basic nee); ast
mea&s at &o" prices% W#en creating business an) mar'eting p&ans( many businesses ai& to
account or bot# )irect an) in)irect competitors( yet bot# can impact t#e success o a company%
.n act( t#ere is some evi)ence t#at in)irect competitors can )ra" more business rom a company
t#an )irect competitors% T#is is especia&&y true "#en t#e competitor oers mu&tip&e oerings in
t#e same &ocation% ,or e1amp&e( a customer mig#t preer c#ic'en restaurant A to c#ic'en
restaurant B an) "ou&) be un&i'e&y to ta'e business rom t#eir preerre) store an) give it to t#e
&ess preerre) store% . t#e same customer( #o"ever( is a&rea)y s#opping at a grocery store t#at
oers acceptab&e c#ic'en( t#e customer mig#t purc#ase #is c#ic'en t#ere rat#er t#an ma'e a
secon) stop%
&usto0ers
T#e customer o BMW cannot be an or)inary customer t#e customer "#o posses bran) image in
t#e min) an) reputation in "or&) g&oba&&y buys t#e BMW %BMW #as create) a very goo) bran)
image in t#e min) o &oca& #as "e&& #as "or&) customer t#e customer "#o posses bran) &oya&ty
an) &i'e t#e innovation an) tec#no&ogy preer to buy BMW car % One o t#e most )aunting
c#a&&enges t#at companies ace "#en )eci)ing to con)uct business g&oba&&y is iguring out #o"
e1act&y to reac# an) appea& to t#eir target mar'ets in t#e various cu&tures an) countries t#ey "is#
to operate in% .n or)er to )eve&op a reasonab&e p&an an) succee) in any oreign mar'et( a
company nee)s to )o e1tensive researc# an) ana&ysis on a variety t#e o actors( inc&u)ing but
not &imite) to; t#e nation=s economy an) various )emograp#icsS t#e cu&tura&( socio&ogica&( an)
po&itica& c&imateS t#e mar'et con)itionsS t#e tec#no&ogica& environmentS an) t#e current
21
competitive situation Ater everyt#ing is ta'en into careu& consi)eration an) t#e country an)
cu&ture are e1p&icit&y un)erstoo)( a company can estab&is# a reasonab&e p&an t#at "i&&
t#eoretica&&y ensure success in t#e oreign mar'et% T#e basic i)ea is t#at t#e company=s nee)s
must be matc#e) to t#e country=s nee)s( in or)er to e&icit t#e best
Possib&e outcome% . t#e eort to un)erstan) t#e business environment in a country is not ma)e(
#o"ever( it can &ea) to a ai&e) intro)uction attempt an) severe proit strugg&es in t#at mar'et%
A&& o t#e e&ements in a company mar'eting mi1 ?pro)uct( price( p&ace( promotion@ nee) to be
appropriate or t#e se&ecte) country in or)er or it to be successu& in t#at mar'et% . t#e pro)uct
sty&e or eatures are un)esirab&e in t#at cu&ture or #ave no beneit to its citi+ensS i t#e price is too
#ig# base) on t#e average income o t#e target mar'etS i t#e )istribution system an) c#anne&
structure is ineective base) on t#e country=s inrastructure an) avai&ab&e interme)iariesS or i t#e
company=s promotion tactics an) a)vertising messages( symbo&s( an) content are oensive or
objectionab&eS t#e company=s pro)ucts "i&& most &i'e&y never be very popu&ar "it# consumers in
t#e country% Once t#e country is "e&& researc#e) an) un)erstoo) in terms o cu&ture( constraints(
opportunities( an) t#reats( t#e company can ocus on targeting speciic )emograp#ics an)
creating a rationa& mar'eting p&an t#at "i&& a&&o" t#em to reac# t#eir target mar'et( just as in a
)omestic mar'eting campaign% T#roug#out t#is process( t#ere must be a great emp#asis p&ace)
on un)erstan)ing t#e oreign customer an) meeting #is or #er nee)s( as t#at is u&timate&y "#at
"i&& matter most in t#e entire internationa& mar'eting eort% One o t#e most )iicu&t )ecisions
mu&tinationa& corporations ?MNCs@ must ace is #o" muc# to eit#er g&oba&i+e or &oca&i+e t#eir
mar'eting eorts% Creating a universa& message an) campaign "i&& #e&p t#e company save time
an) money an) 'eep its bran) image muc# more consistent "or&)"i)e( but it can a&so a&ienate
members o certain countries or regions an) give t#em no reason to buy t#e pro)uct% On t#e
ot#er #an)( concentrating on a &oca&i+e) mar'eting eort "i&& #e&p t#e company appea& to very
speciic cu&tura& groups an) ma'e t#e pro)uct appear more tai&or4ma)e or eac# speciic region(
but it can a&so be very cost&y an) time consuming an) u&timate&y not aect proits any more t#an
a stan)ar)i+e) ?or g&oba&@ campaign "ou&) #ave% ,or &u1ury4oriente) car bran)s suc# as Au)i
an) BMW( manuacturing processes an) t#e tec#no&ogy be#in) t#em must be a)vance) an) up4
to4)ate in or)er or t#e companies to eective&y compete in a )iicu&t g&oba& environment%
*ig#er4<ua&ity materia&s an) greater &eve&s o eiciency are constant&y being )eve&ope)( an)
manuacturers nee) to 'eep up "it# t#e current tren)s in or)er to oer t#eir customers t#e most
mo)ern( a)vance)( an) <ua&ity pro)ucts possib&e% T#e <ua&ity o t#e manuacturing processes an)
t#e unctions t#at t#ey can provi)e u&timate&y )etermine t#e &eve& o <ua&ity o t#e en) pro)uct
t#at t#e companies= customers )eman)% BMW use simi&ar strategies in regar) to overa&&
manuacturing( but bot# companies emp&oy some very uni<ue an) e1c&usive manuacturing
met#o)s as "e&&%BMW are bot# very ocuse) on constant innovation an) maintaining t#e #ig#
<ua&ity an) stan)ar)s o t#eir respective bran)s( an) t#at is critica& to t#eir success in t#e g&oba&
mar'et p&ace% Wit# t#e rapi) pace o tec#no&ogica& )eve&opment in internationa& business to)ay( it
is very important or companies to remain up4to4)ate "it# ne" )eve&opments an) stay a#ea) o
t#e curve in t#eir respective in)ustries% Au)i an) BMW #ave p&ace) a great emp#asis on t#is( but
it is abso&ute&y necessary because o t#eir &u1ury4oriente) an) premium4price) pro)ucts% BMW
#as begun to pioneer t#is area o t#e mar'et "it# t#eir ne" !i$ series mo)e&s( an) it #as
intro)uce) t#eir e4iron tec#no&ogy &ine% Wit# a tren)ing customer ocus on t#e capabi&ities an)
t#e ue& eiciency o ve#ic&es( bot# companies #ave stretc#e) t#e boun)aries o avai&ab&e
tec#no&ogy in or)er to create better pro)ucts an) stay competitive in t#e g&oba& mar'et%
22
B+W +R*ETIN" STRTE"4
B+W +R*ETIN" INN%<TI%N
Since t#e competition starte) to imitate BMW=s a)vertising messages o outstan)ing <ua&ity(
BMW )eci)e) to come up "it# a uni<ue "ay o reac#ing its target au)ience% T#e company )i)
so by #iring ,a&&on Wor&)"i)e( an) a)vertisement agency base) in Minneapo&is( MN( to come up
"it# a ne" campaign% ,a&&on )eve&ope) t#e concept !T#e *ire$ series% ,a&&on9s responsibi&ity
a&so inc&u)e) t#e "ay in "#ic# t#ese movies "ere to be )e&ivere) to BMW9s target au)ience% .t
"as a&so <uestionab&e "#et#er t#e campaign s#ou&) be t#e same t#roug#out t#e "or&)( or i it
s#ou&) be &oca&i+e) to a)apt to &anguage an) consumer taste )ierences% .n or)er to attract #ig#&y
recogni+e) )irectors( as "e&& as actors( BMW "as "i&&ing to spen) a &arge amount o money%
.n a))ition to coming up "it# a uni<ue a)vertising campaign( BMW a&so "ante) to c#ange t#eir
image% One o t#e goa&s "as to ma'e BMW &oo'( not on&y coo&( but &i'eab&e( "#ic# t#e bran)
nee)s to )o to combat negative perceptions some peop&e #ave base) on o&) associations "it# t#e
IB=s sty&e yuppie arrogance%
B+W 0ar.eting ob:ecti(es/
.ncreasing mar'et s#are
-ro"ing sa&es>turnover
En#ancing t#e strengt# o t#e bran)
Creating &oya& customers
Managing costs eective&y( t#us increasing proitabi&ity%
T#eir common mar'eting objective is to ac#ieve gro"t#% T#ere are a number o "ays in "#ic#
BMW can gro"% ,or e1amp&e( t#ey mig#t e1pan) interna&&y% T#is is 'no"n as organic gro"t#% A
<uic'er but #ig#er ris' option is e1terna& or inorganic gro"t#% T#is invo&ves ac<uiring or
merging "it# anot#er business%
One positive beneit o gro"t# is t#at it #e&ps a BMW business to re)uce costs t#roug#
economies o sca&e% T#ese inc&u)e;
eiciencies arising rom use o ne" tec#no&ogies
improve) buying po"er as it can bu&' buy at &o"er costs
t#e abi&ity to recruit more specia&ists to improve )ecision ma'ing%
By &o"ering costs( BMW increases its proitabi&ity an) becomes more competitive%
23
Product de(elop0ent
.nvo&ves )eve&oping ne" pro)ucts or services an) p&acing t#em into e1isting mar'et*aving t#e
abi&ity to respon) <uic'&y to t#e e1terna& environment "it# ne" pro)ucts an) services is a beneit
o being a private&yo"ne) business% BMW a&&o"s emp&oyees to ma'e )ecisions at a &oca& &eve&
an) #as create) an entrepreneuria& spirit "it#in t#e organisation% T#is means t#at strategies are
constant&y revie"e) to ensure t#at BMW remains t#e mar'et &ea)er% Ne" avenues o business are
e1p&ore) an) researc#e)% /n)er&ying a&& o t#ese c#anges are BMW=s oun)ing va&ues% T#ese are
BMW=s )riving orces be#in) gro"t# an) inc&u)e va&ues suc# as;
! "#ur brand is the most valuable thing we own.
! $reat things ha%%en when we listen...to our ustomers and to eah other.
! &ustomer servie is our way o' li'e.(
+ar.eting de(elop0ent
Entai&s ta'ing e1isting pro)ucts or services an) se&&ing t#em in ne" mar'ets% .n t#e car renta&
business( as a&& organisations are provi)ing a simi&ar pro)uct( a 'ey actor t#at )ierentiates one
organisation rom anot#er is t#e <ua&ity o t#e service t#at is provi)e) or customers% BMW=s
)ramatic gro"t# strategy #as been ma)e possib&e t#roug# its #ig# &eve& o customer service% By
&istening to its customers( it is ab&e to provi)e greater satisaction( "it# emp&oyees being a vita&
part o t#at process% To provi)e superior customer service( BMW &ocates its branc#es as c&ose as
possib&e to its customers% T#e convenience o t#is service gives Enterprise a competitive
a)vantage over its
riva&s%
$i(ersi'ication
.nvo&ves )eve&oping ne" pro)ucts an) putting t#em into ne" mar'ets at t#e same time%
0iversiication is consi)ere) t#e most ris'y strategy% T#is is because t#e business is e1pan)ing
into areas outsi)e its core activities an) e1perience as "e&& as targeting a ne" au)ience% .t a&so
#as to bear t#e costs o ne" pro)uct )eve&opment%0iversiication strategies invo&ve "i)ening an
organisation=s scope across )ierent pro)ucts an) mar'et sectors% .t is associate) "it# #ig#er
ris's as it re<uires an organisation to ta'e on ne" e1perience an) 'no"&e)ge outsi)e its e1isting
mar'ets an) pro)ucts% T#e organisation may come across issues t#at it #as never ace) beore% .t
may nee) a))itiona& investment or s'i&&s%

+ar.eting&hannels
Tele(ision
T#e CEEE American Association o A)vertising Agencies Commercia& Pro)uction Costs Survey
revea&e) t#at t#e average cost o a 3B secon) nationa& commercia& or an automobi&e "as a
"#opping T3IE(BBB% T#e percentages o vie"ers o MSNBC an) Bravo "#o are in BMW=s
target income brac'et constitute AB%HP% T#e percentage o vie"ers in BMW=s target
agegroup?AH43G@is AD%HP%
24
Print
T#e a)vertising rates in a perio)ica& &i'e Time Maga+ine ranges rom TAHB(BBB or a u&&4page
mono to T3DB(BBB or a u&&4page co&or a)% T#e average age o a Time Maga+ine subscriber is GH
an) t#ey #ave a me)ian income o TDE(BBB% T#is au)ience is o t"ice t#e age an) #a& t#e income
o BMW=s inten)e) target mar'et% Time Maga+ine is one o t#e premier perio)ica&s on t#e
mar'et at t#is time%
$<$Pro0otionsE#reebies
T#e cost o pro)ucing a 0:0 master is bet"een THB(BBB an) TCBB(BBBRp&us t#e cost o
pro)ucing any bonus materia&s% 0:0 p&ayer penetration in t#e /S to)ay is appro1imate&y at
AH(DBB(BBB units% T#is tren) is suppose) to increase an) t#e 0:0 is suppose) to become t#e ne1t
:*S%
E3+ar.eting
Internet
Auto manuacturers #ave ta'en some innovative approac#es to )ra" .nternet users to t#eir "eb
sites% *o"ever( it is surprising #o" <uic'&y innovative becomes or)inary% S&i)e s#o"s( &as#
animation( an) surroun) vi)eo are no" commonp&ace on most manuacturer=s sites% .n a))ition(
contests #ave become so common t#at t#e possibi&ity o "inning a ree car may not be enoug# to
#o&) a vie"er or more t#an a e" minutes%
GDI1DB banners are so&) on a run4o4site ?ROS@ basis( meaning( t#ey "i&& appear on every searc#
resu&ts page an) on an e<ua& rotating basis "it# ot#er a)vertisers9 banners% A)vertising rates or
GDI1DB a) banners are compute) on a cost4per4t#ousan) ?CPM@ impression basis an) are
current&y price) at /S TCB to TCH CPM% ,&as#ing banners an) ot#er met#o)s cost s&ig#t&y more
base) on t#e "ebsite an) tec#no&ogy invo&ve)%
,or on&ine a)s( eac# a)vertiser is given pass"or)4protecte) access to Rea&4Time a)vertising
statistics( inc&u)ing #o" many impressions "ere serve)( #o" many c&ic'4t#roug#s "ere
ac#ieve)( an) "#at c&ic'4t#roug# rate "as ac#ieve)% T#e in)ustry stan)ar) or t#e c&ic' t#roug#
rate is any"#ere rom B%AHP to AP( or sites &i'e CNN( Q0 Net( or Ka#oo% Kour actua& c&ic'4
t#roug# rate "i&& )epen) on t#e appearance o your a)( an) "#at it oers in terms o a mar'eting
message an) ca&& to action% Just &i'e running a te&evision commercia& )uring prime time( or
p&acing a u&&4page a) in 5Time5 maga+ine( t#ese a)s )o not necessari&y cause peop&e to pic' up
t#e p#one an) or)er a pro)uct at t#at very moment% W#ereas a "eb4base) process "#ic# gui)es
t#e consumer t#roug# a systematic process is to ma'e a purc#ase more &i'e&y% Speciica&&y( t#ese
types o a)s bui&) name recognition or t#e company an) estab&is# it as a major orce in t#e
in)ustry% T#en( "#en consumers are rea)y to buy( your company "i&& come to min)% A&so on
socia& me)ia suc# as aceboo'( t"itter etc%
25
B+W SLES STRTE"4
A sa&es strategy sets out in )etai& #o" you "i&& get your pro)uct or service in ront o
peop&e "#o nee) it% 7oo'ing at it strategica&&y "i&& give you a compre#ensive( met#o)ica&
approac# to ensuring you mar'eting your business correct&y an) you are approac#ing t#e
rig#t c&ients%
A sa&es strategy can be base) on your business an) mar'eting p&ans% .t &oo's at #o" you
"i&& )e&iver objectives set out in your mar'eting p&an( as "e&& as #o" you #ave c#osen to
segment your target mar'et an) #o" you "i&& un) you mar'eting activities%
A sa&es strategy is not t#e same as a mar'eting strategy% W#ereas mar'eting is about
getting your name out t#ere an) tempting ne" customers or re'in)&ing interest in your
business( a sa&es strategy is more about #o" you c&ose t#e )ea&%
.n or)er to bui&) a compre#ensive strategy or your entire business( you "i&& nee) to sit
)o"n an) come up "it# a )ierent sa&es strategy or eac# o your pro)uct &ines% W#i&e
t#ey may a&& en) up &oo'ing very simi&ar( but it9s important to be a"are o subt&e
)ierences bet"een your pro)ucts an) t#e customers "#o pay or t#em%
B+W sales ob:ecti(es
Start by setting out sa&es objectives or eac# o t#eir pro)ucts% W#at )o t#ey "ant to
se&&( "#o are t#eir target mar'et an) "#at are t#e timesca&es invo&ve)6 0eci)e "#ere t#eir
ocus "i&& &ie 4 "#et#er t#at9s on a speciic pro)uct or a c&ient base( an) "#at nee)s to
c#ange or BMW to meet t#ese objectives%
,or eac# sa&es objective( &ist t#e steps BMW #ave to ta'e in or)er to meet t#em% T#ere
s#ou&) be ive or si1 steps or eac# objective% T#in' SMART "#en you are coming up
"it# t#em;
Speciic
Measurab&e
Ac#ievab&e
Rea&istic
Time4sensitive
Consi)er #o" "i&& t#ey remove barriers to sa&es rat#er t#an as'ing #o" "i&& t#ey ma'e
sa&es "#en some one is coming up "it# t#eir objectives% Barriers can be anyt#ing rom
not ma'ing enoug# ca&&s or customer visits to t#e nee) to give t#eir sa&es team better
training or t#e nee) to recruit anot#er sa&es person%
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7oo' at t#e mar'eting an) sa&es activities BMW business #as un)erta'en an) try to "or'
out "#at BMW=s most proitab&e activities #ave been%
$eciding on sales channels
Reac#ing t#e rig#t customers is easier sai) t#an )o"n% Once you #ave "or'e) out "#at
your mar'et is an) #o" it9s bro'en )o"n( you nee) to )eci)e "#ic# sa&es c#anne&s to use;
0irect or on4site sa&es are ace4to4ace( an) is t#e mo)e& use) by most retai&ers
T#e internet is a versati&e "ay to se&&
Te&esa&es can be eective or business4to4business an) repeat sa&es( but genera&&y
#as a &o" conversion rate
0irect mai& a&so #as <uite a &o" conversion rate but is &ess intrusive t#an te&esa&es
. you are a manuacturer( you mig#t "ant to se&& t#roug# an agent or
interme)iary% T#is cou&) be a retai&er( or it cou&) be an agent abroa)%
+ar.et 4our Product e''iciently
BMW not gain sa&es i you are just "aiting or your potentia& customers visit your store% Kou a&so
nee) to )o your part "it# t#e #e&p o proper mar'eting%
E''ecti(e Sales Tea0
BMW "ante) sa&es to improve( so t#ey orm a sa&es team t#at "ou&) #an)&e an) carrie) out t#e
p&ans or your targete) sa&es%
0e&ivery o Pro)ucts
BMW oer )e&ivery services( t#ey ma'e sure t#at t#eir customers are inorme) about t#e
)e&ivery )ate% Never )e&ay t#e )e&ivery o pro)ucts because a&most HBP o businesses in t#e
in)ustry &ost t#eir customers because o t#is reason% So( a&"ays 'eep your customers inorme)
beore you )e&iver t#e pro)ucts t#ey or)ere)%
Sales and &usto0eR Satis'action
ccessibility
T#eir business must be a&"ays avai&ab&e% Ma'e sure t#at your customer service support is
accessib&e anytime o t#e )ay%
Reliability
T#is means t#at your pro)ucts s#ou&) be eective an) #ave <ua&ity% 0on=t just promise your
customers% -ive t#em "#at t#ey )eserve% T#ere are t#ousan)s o beneits t#at you "ou&) enjoy
once you #ave imp&emente) t#e strategies correct&y% One o t#e beneits t#at you "i&& e1perience
is t#at you "i&& #ave "orry4ree )ays "#en managing your business% Base) rom a survey( JHP
o businessmen #ave agree) t#at increasing sa&es an) customer satisaction is t#e 'ey to
strengt#en t#e re&ations#ip o your customers "it# your business% Moreover( a researc# a&so
27
s#o"s t#at IBP o customers "#o are satisie) "it# t#e service o t#eir c#osen company ten) to
avai& more pro)ucts or services an) t#ey consi)ere) t#e company as t#eir partner in t#e in)ustry%
So0e principles 'or increase in sales
Understand the (alue o' a custo0er/
W#at=s a customer "ort#6 ,are more t#an t#e va&ue o t#eir origina& purc#ase rom you% A
customer represents a &ong4term( not a onetime va&ue% . you provi)e goo) service an) goo)
va&ue to a customer to)ay( t#at customer "i&& continue coming bac' to you in t#e uture N an)
"i&& te&& ot#ers about t#e beneits o your pro)uct>service%
&reate and 0aintain a solid co0pany i0age/
Position your company in t#e min)s o consumers so t#ey 'no" "#o an) "#at you are% .nstea)
o attempting to be !somet#ing or everyone($ ma'e an eort to be !somet#ing specia& or a
specia& e"%$ Segmentation is t#e "ay to bui&) sa&es an) increase mar'et o&&o"ing% Cater to a
speciic group o customers an) provi)e soun) goo)s an) services or t#at mar'et%
Stic. to the basics/
Some businesses become enamore) "it# every ne" mar'eting strategy or business approac#
#era&)e) by t#e &atest business guru% W#en it gets rig#t )o"n to it( t#oug#( it=s t#e basics t#at
rea&&y matter% A goo) pro)uct or service( bac'e) by so&i) promotion to t#e rig#t mar'et an)
o&&o"e) up "it# e1ceptiona& customer service( are t#e 'eys to continue) success in any
business%
Treat your e0ployees the )ay you7d li.e the0 to treat your custo0ers/
We=ve a&& been t#e victims o poor service% Poor service is re<uent&y t#e resu&t o poor
management% An emp&oyee "#o is not treate) "e&& by t#e boss is not &i'e&y to treat t#e
customers very "e&& eit#er%
*no) )ho you )ant to sell to 6 and )hy/
A company t#at just "ants to !ma'e a proit$ "on=t be in business or &ong% Successu&
businesses se&ect a mar'et an) t#en ta'e steps to specia&i+e in pro)ucing pro)ucts an) services
)esigne) speciica&&y or t#at mar'et% T#in' about t#e businesses t#at you re<uent% 0o t#ey
provi)e pro)ucts or !everyone$ or )o t#ey cater speciica&&y to a certain nee) t#at you #ave6
E0phasi=e (alue o(er price/
Customers are &ess concerne) "it# #o" muc# somet#ing costs t#an t#ey are "it# #o" muc#
somet#ing is "ort#% To convince yourse& t#at t#is is true( consi)er #o" muc# more a consumer
"i&& spen) or a 7e1us vs% a Rav4G% Bot# are cars% Bot# "i&& get t#e customer to "#ere #e>s#e
"is#es to go% Bot# are( in act( BMW pro)ucts But( one #as a #ig#er perceive) va&ue t#an t#e
ot#er N #ig#er t#an t#e actua&)ierence in <ua&ity "ou&) &ogica&&y support% T#e va&ue o a
pro)uct or service is t#e critica& e&ement in attracting t#e customer% 7o" price( a&one( just )oesn=t
)o it anymore% An)( regar)&ess o price( i your pro)uct or service )oesn=t provi)e any va&ue or
t#e customer( you "on=t be successu&%
Be alert to changes in the 0ar.etplace/
Rising oi& prices( gro"ing concerns "it# #ea&t# care costs( a poor economy N t#ese are just a e"
e1amp&es o issues t#at can aect t#e sa&es o your pro)ucts an) services% Kou can=t operate your
28
business in avacuum% 2eep an ear to t#e groun) an) be a"are o current issues an) t#eir potentia&
to impact your business%
E0brace ne) technology/
To)ay( more an) more customers e1pect t#at you "i&& be using tec#no&ogy to provi)e better
service to t#em% An .nternet site an) a presence on t#e socia& me)ia sites "#ere your au)ience is
engage) are essentia&% Companies are a&so beginning to e1p&ore #o" t#ese ne" too&s can #e&p
improve eiciency an) processes N customer orums( or instance( a&&o" customers to #e&p
t#emse&ves N an) eac# ot#er N an) can re&ieve some o t#e bur)en on a company=s #e&p )es'%
-ire to the best
-oo) emp&oyees are #ar) to in) an) "ort# every cent you pay t#em% 0on=t s'imp "#en it
comes to #iring% Ta'e t#e time to c&ear&y i)entiy t#e <ua&ities you nee) in an emp&oyee an) to
careu&&y revie" eac# job can)i)ate% Kour emp&oyees are a re&ection o your business N an) your
bran)% Aim #ig# N your customers "i&& appreciate it%
$i(ersi'y/
0on=t put a&& o your eggs in one bas'et% We=ve a&& #ear) t#is o&) saying an)(
practica&&y( "e 'no" "#at it means% But( sometimes "e ignore t#e time&ess "is)om o
t#is statement an) concentrate a&& o our eorts( a&& o our resources( on one pro)uct or
service t#at "e #ope "i&& be a "inner% T#e prob&em6 W#at #appens i it isn=t a "inner6
0iversiying means t#at you sprea) your ris' over a number o areas N a&&( o course(
sti&& ocuse) on meeting your speciic mar'et=s nee)s%
Stic. to )hat you do best/
T#is may seem &i'e a contra)ictory statement to VCB( but it=s
rea&&y not% W#at it means is t#at( as you )iversiy( you s#ou&) )iversiy in re&ations#ip to
your pro)ucts strengt#s% *ere=s an e1amp&e% Suppose you operate a successu& c&eaning
service catering to t#e nee)s o apartment )"e&&ers% Kou=) &i'e to increase your
revenues by e1pan)ing upon t#e services you oer% Kou=re consi)ering t#e o&&o"ing
options; aA a p&ant care service( bA a &aun)ry service( cA a seamstress service% W#ic# o
t#ese )o you ee& is most c&ose&y a&igne) "it# t#e purpose o t#e origina& business6
Probab&y &aun)ry service% P&ant care re<uires a )ierent set o s'i&&s( 'no"&e)ge an) too&s( as
"ou&) a seamstress service% Kou=&& be most successu& N an) in) sa&es increasing N "#en you
provi)e services an) pro)ucts t#at are c&ose&y tie) to t#e overa&&
mission o your business%
*eep an eye on the co0petition%
W#at=s t#e competition up to6 . you )on=t 'no"( you cou&) be in troub&e% Competition is
every"#ere( sometimes in une1pecte) p&aces% ,or instance( i you operate a car care service( t#e
car=s o"ner cou&) be your competition N i t#at o"ner )eci)e) to perorm t#e services instea) o
bringing t#e ve#ic&e to you% Or( more tra)itiona&&y( t#e competition mig#t be anot#er car4care
service( or a &oca& )ea&ers#ip t#at oers t#e services as part o a "arranty% Ma'e sure t#at you
irst recogni+e "#o your competition is an) t#en ta'e steps to remain a"are o "#at t#e
competition is )oing%
29
Bene'its o' #inancing
W#en you inance your BMW t#roug# BMW ,inancia& Services( you beneit rom t#e act t#at
"e &ove BMWs as muc# as you )o% We 'no" #o" "e&& BMWs #o&) t#eir va&ue an) #o" muc#
un t#ey are to )rive%
0eci)e on your )ream BMW an) &et us provi)e &e1ib&e inancing to #e&p you )rive it #ome% We
oer options or &oan customi+ation( &o" competitive rates( no )o"n payment ?subject to cre)it
approva&@( terms up to DB mont#s( an) our O"ners C#oice program eaturing &o" mont#&y
payments or ne" an) Certiie) Pre4O"ne) BMWs%
BMW ,inancia& Services is )esigne) to meet t#e e1pectations o BMW )rivers( an) t#at9s "#y
you9&& in) our perormance matc#es t#e ve#ic&es "e inance%
%)nership
W#en you inance your ne" BMW( your name goes on t#e tit&e an) "#en t#e &oan perio) en)s(
you become t#e o"ner% Kou can se&& your BMW or tra)e it in at any time% Kou can even tra)e it
or a &ease) BMW( using t#e va&ue o t#e ve#ic&e to re)uce your mont#&y payments%
-igh resale (alue
Kou "i&& usua&&y in) t#e resa&e va&ue is sti&& <uite #ig# at t#e en) o your inance perio)( "#ic#
ma'es it especia&&y va&uab&e as a tra)e4in on a ne" BMW
#INN&IN" %# B+W/
W#et#er you9re &oo'ing to o"n or #ire a ne" or Approve) /se) BMW( "e9re coni)ent t#at
you9&& in) t#e rig#t inance pac'age or you "it# BMW ,inancia& Services%
BMW ,inancia& Services oers you a c#oice o car inance options to #e&p you o"n or #ire your
BMW% At every BMW )ea&ers#ip( you9&& in) a ,inancia& Services Specia&ist "#o can ta&' you
t#roug# your options% Once you9ve c#osen t#e car inance pac'age t#at suits you best( "e9&& )o
t#e rest% ,rom paper"or' an) p#one ca&&s to )e&ivery arrangements( "e9&& #an)&e a&& t#e )etai&s
an) )o everyt#ing to get you on t#e roa) as <uic'&y an) easi&y as possib&e%
B+W Select
BMW Se&ect( our Persona& Contract Purc#ase pro)uct( is our most popu&ar car inance pro)uct% .t
is )esigne) or customers "#o mig#t &i'e to c#ange t#eir car regu&ar&y an)( because t#ere is an
optiona& ina& payment at t#e en) o t#e agreement( customers beneit rom re)uce) mont#&y
payments
.t a&so &ets you 'eep your options open unti& t#e en) o t#e agreement( so you )on9t #ave to ma'e
any )ecisions about t#e uture unti& you9re rea)y% At t#e en) o t#e agreement( you #ave t#e
&e1ibi&ity to c#oose "#et#er you "ant to part4e1c#ange your BMW or a ne" one( 'eep it or
return it to us%
30
-o) it B+W Select explained/
)or.s
Bene'its o' B+W Select
"enuine B+W accessories 'or your B+W/
B+W -ire Purchase/
. you &i'e to ma'e i1e) regu&ar payments t#roug#out your agreement( BMW *ire Purc#ase is a
simp&e( straig#tor"ar) "ay to inance your ne" BMW%
Wit# BMW *ire Purc#ase you can sprea) t#e cost o purc#asing your BMW over time so it9s
easy to bu)get% An) because your mont#&y payments are i1e)( you9&& a&"ays 'no" e1act&y #o"
muc# you=re spen)ing%
-o) it )or.s
Bene'its o' B+W -ire Purchase
The ne) B+W !>
B+W &ontract -ire/
. you9) &i'e t#e i)ea o #iring a BMW rat#er t#an o"ning it( BMW Contract *ire is t#e i)ea&
so&ution or you% BMW Contract *ire a&&o"s you to )rive t#e BMW you "ant "it#out #aving to
"orry about )epreciation or se&&ing it an)( provi)ing t#e ve#ic&e is "it#in t#e agree) mi&eage an)
in goo) con)ition or its age( you "i&& #ave not#ing more to pay at t#e en) o t#e agreement% ,or
peace o min)( you can a&so inc&u)e a maintenance pac'age at a sma&& e1tra cost%
BMW Contract *ire is a popu&ar c#oice "it# our business customers because :AT registere)
businesses can rec&aim up to HBP o t#e :AT on t#eir renta&sW%
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A&&business%com; !A&&business Company Activities$% #ttp;>>"""%a&&business%com>company4
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Automotive Ne"s; !Automotive Ne"s *ome$%
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Automotive Ne"s EuropeS CC>3>ABB3( :o&% I .ssue AC( pI( Cp( 3 Co&or P#otograp#s
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t#e CA% Apri& ABCB%
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,ebruary%
#ttp;>>"eb%ebsco#ost%com%"""%baser%)'>e#ost>p)6vi)XCE F #i)XCBJ Fsi)XH3IAc3ce4ebb34GJHe4
aHJG4A)IDebC3BJ)BYsessionmgrCBG( visite) on t#e 3r) o ,ebruary%
BMW4Orac&e; !America=s Cup$% #ttp;>>bm"orac&eracing%com>)e>in)e1%#tm&6trac'%reerX% :isite)
on t#e CA% Apri& ABCB%
BMW AR ?ABB3@( ,inancia& Report ABB3%
BMW AR ?ABBI@( ,inancia& Report ABBI% Re&ease) on t#e CJt# marc# ABBE
BMW AR ?ABBE@( ,inancia& Report ABBE o t#e BMW Company( re&ease) CJt# Marc# ABCB
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