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STUDY ON BMW PREMIUM
SELECTION
A Summer training project report
submitted in partial fulfilment of the requirements for the
award of degree of MBA MARKETING AND FINANCE

2014 – 2016

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Submitted by
(internal guide)

guided by

Certificate of Originality
This is to certify that the project report entitled “STUDY
ON BMW PREMIUM SELECTION” submitted to
bharati vidyapeeth
deemed university . Pune in partial fulfilment of the
requirement for the reward of the degree of MBA
MARKETING AND FINANCE is an original work
carried out by MR. work carried out by MR. GAURAV
BAJAJ UNDER THE GUIDANCE OF MR. GAUTAM
GANDHI . The matter embodied in this project is a
genuine work done by Gaurav Bajaj to the best of my
knowledge and belief and has not been submitted before
neither to this university nor to any any other university
for the fulfilment of the requirement of any course of
study

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Signature of student
designation

signature of the guide

CERTIFICATE
This is to certify that the project titled STUDY ON BMW
PREMIUM SELECTION is done by GAURAV BAJAJ
submitted in partial fulfilment of the requirement for the
award of degree of MBA MARKETING AND FINANCE
from bharati vidyapeeth deemed university , pune. It has
been completed under the guidance of from bharati
vidyapeeth deemed university , pune. It has been
completed under the guidance of MR.YOGESH GURAV
AND MR/MS. ________________ (CORPORATE
MENTOR) .WE are thankful to BMW for having allowed
our student to undergo project work training . the
authenticity of the project work will be examined by the
viva examiner which include data verification , checking
duplicity of information etc . and it may be rejected due to
non fulfilment of quality standards set by the institute

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DR. SACHIN S. VERNEKAR
(DIRECTOR IMED)

ACKNOWLEDGEMENT

“Acknowledgement is an art, one can write glib stanzas
without meaning a word, on the other hand one can make a
simple expression of gratitude”

I take this opportunity to acknowledge my institution
BHARATI VIDYPEETH DEEMED UNIVERSITY where I
am pursuing my post graduation in marketing . I would also
like to express my thanks to Mr YOGESH GURAV , Internal
Project Guide, for his guidance, support and encouragement
which helped me in completing my project.

GAURAV BAJAJ
ROLL NO .23

5 PREFACE As a part of the MBA curriculum and in order to gain practical knowledge in the field of management . The basic objective behind this project report is to gain knowledge about bmw premium selection cars TABLE OF CONTENTS . we require to make a report on “study on bmw premium selection” .

.................................... iv ACKNOWLEDGEMENT................................2 Time scope.6.....................................................................................................................................................................4 1........................................................................v TABLE OF CONTENTS................5 1....................1 Geographical scope........................................ 1................................x LIST OF ACRONYMS.................................................vi LIST OF TABLES...................................1 1...................................................................................6 TITLE OF PROJECT...................................................4 Objectives of the study.............................3 1...5 .......................................... 1........................................1 PRODUCTION AND TECHNOLOGY......1 1......................................................0...............................................................................................0 Introduction.................................................3 Purpose of the Study..............................................................................................................................................................................iii CERTIFICATE.........5 1.............................6.......................................................................5 Research questions..................................2 COOPERATION NETWORK ....................................5 1..4 1.......................................xii CHAPTER 1.................................................................1 Background of the study........................................................................................................2 Statement of the problem.....................................................................ix LIST OF FIGURES.............................xi ABSTRACT....................................................................................................................................................................................................................................................................................................................0............................................................................................................................... 1.................................................. i CERTIFICATE OF ORIGINALITY................................................................................................4 1....................................7 Significance of the study................................6 Scope of the study...........................................................................................................

These products continuously inspired people’s strong feelings and aspirations. BMW acquired Eisenach car factory and started producing cars.7 OVERVIEW OF A INDUSTRY AS A WHOLE A traditional company with a long history. Five years later in 1928. . BMW Company was dedicated to the development and production of airplane engines. Initially. Since then. BMW has been putting into market many excellent works of car manufacturing history. In 1923. BMW’s blue and white logo still represents a whirling propeller which records the company’s history. the first BMW motor car was released. and built out BMW Company’s outstanding fame as a car manufacturer.

Meanwhile. each plant also cooperates a lot within a collective production system. but also stay responsive to . As a result.8 Production and technology Just like BMW staff doing teamwork. BMW adopts a flexible management method through which each plant arranges staff flexibly based upon different car models and through which all plants stand out for flexible working hours and flexible resource management. inside BMW Group. BMW Group’s highly cooperative production network can not only manage the extremely complicated craft process in cars production.

That involves traditional parts’ suppliers. BMW Group pays high attention to its network to be more flexible and agile. BMW Group has also made good use of resources outside the group in a cooperative way. Cooperation network Apart from developing and optimizing resources inside the group. . BMW Group has consistently pursued the long term cooperation with partners.9 technological changes of demands of a certain car model. as well as small yet strong hi-tech companies. scientific labs and colleagues in relevant technology field. In accordance with the success code of “individual effort accumulates while teamwork doubles the outcome”.

Markets with low sales rate are served by specifying importers. Western Europe and the US in the long run. whose sales will be to near that of Germany. . Today its sales network covering over 120 countries in five continents .200 independent agents. The strategic objective is to pursue development in Asia.10 International sales network BMW cars are sold around the globe: Since the 1970s.is made up by 27 sales companies and 3. BMW Group has been pursuing to set up its own sales company in every important markets on the globe.

Apart from developing intelligent and ecological traffic management system for traffic bustling urban areas. to obtain liquid hydrogen from other renewable energy sources and use liquid hydrogen as clean fuel to drive cars. . In this regard.11 Environmental protection and social responsibility In order to ensure a “sustainable traffic development“. BMW Group is also dedicated to develop replaceable dynamic system. BMW Group emphasizes “Clean Energy”. BMW Group has made relentless efforts and many innovative contributions.

BMW Group also embraces sustainable development principles in terms of human resources and integrates them into company’s management philosophy. It’s the company’s employees who turned BMW Group’s successful stories into reality.12 Working for BMW Group BMW Group regards employees as a major element to gain success as well as an important guarantee for success worldwide. Therefore. .

In 1940. In 1937. BMW won the champions of European Touring Car Championship six times. From 1973 to 1979.13 BMW Motorsport Since a long time ago BMW Group has been proving its strength in sports events and set up many records.5km per hour. which remained as a world record for 14 years. BMW’s sports success continued to today. BMW won the champion of Formula 1 games. legendary BMW 328 won the champion for all-class games. In 1983. a BMW motor car broke motor cars’ MPH record with a speed of 279. in the famous Italian Mille Miglia event. .

the joint venture Brilliance BMW started its operation officially.14 BMW Group’s development in China In order to its successful development in Chinese market. together submitted the program proposal for setting up a Chinese and foreign joint venture in December 2001. . 2003. capital city of Liaoning Province. BMW Group and Brilliance China Auto Ltd celebrated the official inauguration for their joint venture’s plant in Shenyang. 2004. On May 20. BMW Group and Brilliance China Auto Ltd.

Findings Competitor analysis The German automaker experienced a steady increase in sales in the last few years.15 Methodology In this report just secondary data will be used. Some marketing tool such as PEST analysis. collected from BMW annual reports. Bell curve and Boston matrix model will be used to analyze the company and some of it’s products. SWOT analysis. and market analysis. as it has always been able to respond to the attacks of its competitors with an increasing level of technology and innovation that characterizes its products. The design is also a fundamental and integrant part of the competitive advantage of BMW. thanks to important investments in R&D. despite the critics to the ex chief . automotive related website.

16 of design Chris Bangle (Wired. but also from overseas brands brand such as Lexus and Toyota. It is important to consider that BMW Group has two other brands in its product range moving from the premium sector of MINI to the luxury one of Rolls Royce. 2012). . The automotive sector is a fast moving sector. As far as competitors concern. the BMW has always faced the competition of the compatriots manufacturers such as: Mercedes. for this reason BMW cannot count on temporary advantages over competitors but should always aim to improve their competences(Man gold. 2009). which would imply also a different range of competitors. and Porsche which benefit from a similar brand-reputation and price range. and the competitive advantage is not immune to this type of environment. Audi.

with a major impact on automobile manufacturers. which affect the macro-environment of BMW. economical . As far as political factors concern. and BMW (Bmw group. increasing restriction aimed to the environment preservation and pollution abatement are being applied .especially in the European countries. and technological factors.17 Environment analysis The main purpose of the environment analysis is to identify and evaluate the future prospective of the company and its relations with the external environment. laws and regulation are strongly affecting the automotive sector. 2010). Economic growth on certain countries and a strong economical crises of others are the two variables which strongly .social. PEST analysis will be used analsing political.

in some cases technology is also being used to regain the . In the automobile sector seems evident a change in the customer choice. as mentioned before BRIC countries are experiencing growth with a resulting increasing buying power which would affect positively the sector.Technologically. which sees R&D taking a crucial role.18 affect the automotive sector. as a matter of fact fuel efficiency and low emission are becoming more and more important in the car choosing process (Gstatic. increasing technology with the aims to gain competitive advantages are widely applied from automobile manufacturers and BMW. Demographic and cultural changes are usually the ones. but at the same time an economic downturn in the US is generating unpleasant consequences. also guided by the economic recession in mature markets .2011). which affect the social factors in the analysis. there is a really important trend.

2012). Holding three different premium brands the group is not able to generate the same economies of scale of the competitors. being able to produce unexpected news BMW has always been able to anticipate and respond to the rapid changes in the market. BMW operates 24 manufacturing facilities in 13different countries. most of the manufacturing sites are owned by the company. Despite this. R&D represents one of the main competitive advantages of the company. Internal analysis As mentioned Before. representing significant assets for the group (BMW AR. BMW . significant investment in R & Dare in fact hard to be recovered.19 decreased margins of the industry (Auto evolution. 2011).

20 also has important strategic alliances with Alfa Romeo. which make the company able to benefit from cost savings and economies of scale resulting by common development and some of the manufacturing process. The Strategy of BMW is called “number one strategy ”an has been introduced after the economic crises in 2007. this particular strategy is focusing on soft issue more than key numbers and aims to the employees satisfaction and the sustainability in the value chain .

7 per cent higher revenues to 76. Being involved in the international markets and generating the 51 per cent of it’s revenues from markets outside the Europe. as mentioned in the SWOT analysis the company is still suffering form high risk of the currency exchange rate and from high barriers to entry in certain market such as Brazil.8billion euros (Business Inquirer. 2013).21 Growth strategy BMW is already experiencing growth increasing by 4. Another fundamental . BMW is widely exposed to the exchange rate risk which can affect the values of the company’s equity. Despite all this. 2013).4 per cent compared to2011 and reaching 5. It has also been nominated manufacturer of the year for the year 2012 and the outlook seems positive for2013 (Business car.1 billion euros and 11.

this happen because the government is raising barriers to entry for overseas company applying an average corporate tax of69 per cent of profits (Frontier strategy group. . concern the possibility of being more profitable in a key market for future growth such as Brazil. 2012). 2012).5 per cent while in Brazil is 5. According with Frontier Strategy estimates.22 factor that is suggesting the construction of production facilities out of the European continent. this could be a really profitable opportunity for BMW in order to expand in such rich market and gain a strong competitive advantage on the competitors. the average margin on Latin America is 10. The government is strongly discouraging the importation of goods but at the same time give the same protection given to the Brazilian ones for those who decide to set up plants locally (Financial Times.3 per cent.

2012) In order to maintain this competitive edge would be also important to structuring a plan for the introduction of new products. guiding them from the introduction stage to the growth stage. coming up with innovative products be fore the competitors. enabling it to anticipate and lead the market. Particular attention would have to be . This would be a good strategy to keep the company in the right direction.23 Selection of competitive advantage As far as competitive advantage is concerned BMW has always structured its competitive advantage based on R&D and technological development. This strategy already find application in BMW and is name das “Number One” strategy (Bmw education. finishing with the maturity and decline stage.

characterized by a high technological content it is definitely the main strength of the company. A.24 based on interleaving successfully growing products with the mature ones to never have too many mature products without a potential substitute in growth. Marketing mix program . b. Price . In order to reach the objectives it is important to expand the range of products already very wide targeting the entry-level segment expanding the line and developing more eco-friendly products such as hybrid luxury cars and compact city cars designed to the middle market.Product The product is probably the cornerstone of BMW’ marketing mix program .

c. innovation.400 stores ( Bmw group. At the same time should differentiate the price for entry-level product by creating special offers aimed at mid-market. which are already present in more than 100 countries with more than 4. The brand should not lower the prices for premium and high-ended products despite the recent crises in some of the markets. . design and quality have a price. 2012). so as to maximize the consumer experience. Place Exclusivity of the store is definitely a factor to leveraged on for BMW.25 Price for BMW should continue to be a consequence for the differentiation strategy. the company should continue to invest in the creation of flagship stores. At the same time should also focus expanding the amount of authorized dealers.

Promotion BMW is very committed in the promotion of its products. in order to shape them according to the county’s culture. the company in fact invest large amount of money in product placement in movies such as “The World Is Not Enough” and others. In order to create awareness in the BRIC countries BMW should apply principles of global marketing to its advertisements.26 d. however could probably be profitable for the company to focus on the environmental sustainability of its future products. New advertising techniques are largely used by the brand to enhance the design and quality of its products. .

Every BMW Premium Selection vehicle meets quality-oriented product standards. ensuring that it satisfies the most demanding driver. A philosophy. In addition.27 A name. . BMW Premium Selection vehicles are covered by a comprehensive BMW vehicle service programme and warranties. troublefree purchase of a pre-owned BMW: the BMW Premium Selection certificate offers an exclusive choice of BMW vehicles and first-class service.preowned vehicles Setting the standard for fast. BMW Premium Selection .

BMW also guarantees each driver a complete service history. CERTIFIED VEHICLE HISTORY Only the best . A complete warranty on all mechanical . Only the highestquality vehicles with proven technical superiority make the grade and become a part of this exclusive range of pre-owned vehicles. WARRANTY The BMW Premium Selection programme offers national warranties with terms and conditions that can compete with those of new vehicles. 2. Being a BMW owner means expecting the highest levels of quality and service. Each vehicle must first undergo a range of tests performed by factory-trained technicians and fulfil exacting national standards regarding the age and mileage of the vehicle.that’s what the BMW Premium Selection delivers.28 BENEFITS OF BPS 1.

29 and electronic vehicle parts ensures that you can enjoy life as a worry-free BMW driver for a long time to come. 4. VEHICLE EXCHANGE Quality is our promise and we are completely confident in the quality of the BMW pre-owned vehicles. Your satisfaction is guaranteed: you can take our word on that. In the unlikely event that a demonstrable fault arises (with a defined period) and we are unable to resolve it. 3. ROADSIDE ASSISTANCE . you are entitled to visit your BMW Premium Selection partner for a full exchange*. *The exchange policy differs from country to country.

30 Mobile Service from BMW. chapter 2 :RESEARCH METHODOLOGY . our qualified mechanics and service personnel are at your side should you ever need roadside mechanical help or emergency towing. The mobile services reward you with the security and peace of mind that comes with driving a BMW. At home or abroad.

6 Scope of the study 1. BMW offers pre owned cars to customers so that they can buy BMW at low price .31 OBJECTIVES AND SCOPE OF STUDY OBJECTIVES : To study the bmw premium selection as whole .6.2 Geographical scope The study was conducted in Faridabad .6.harayana located on Mathura road 1.6.1 Subject scope The study BMW PREMIUM SELECTION as WHOLE 1. SCOPE 1.3 Time scope The study was done in a period of 2 months between May and June 2014 : .

32 Conclusions .

aiming at achieving leadership in the emerging markets. .33 BMW is emerging as one of the most important automobile manufacturer in the world. through correct positioning. However. and new environmentally sustainable products. through investments in R&D and in the emerging markets is succeeding in finding a way out of the European debt crisis. as shown previously the company must stay focused accumulate a significant competitive advantage on the competitors.

com/ www.bmw.bmwmotorcycles.in www.34 Bibliography www.com/ .bmwgroup.bmw-bavariamotors.in www.

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