BMW i3 Marketing Plan

2014-2017

Student number:

Words 3,299

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Sectio Content Page
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1.0 Scenario and Rationale 2
1.1 Strategic challenge 2
1.2 Market analysis 2
1.3 Market trends 2
1.4 Competitor analysis 3
2.0 Situation Analysis 3
2.1 Audit Summary 3
2.2 Strengths 3
2.3 Weaknesses 4
2.4 Opportunities 5
2.5 Threats 6
3.0 Aims and objectives 7
3.1 Corporate 7
3.2 Marketing 7
3.3 Sales 7
4.0 Competitive strategy 8
4.1 Market strategy 8
4.2 Business strategy 8
4.3 Brand strategy 8
4.4 Growth strategy 9
5.0 Marketing Strategy 9
5.1 Segmentation 9
5.2 Targeting 10
5.3 Positioning 10
6.0 Marketing Mix 11
6.1 Product 11
6.2 Price 12
6.3 Place 13
6.4 Promotion 13
7.0 Measurements and Control 14
7.1 Quantitive measures 14
7.2 Qualitative measures 14
8.0 References 15
9.0 Appendix A 17
10.0 Appendix B 19

1. Scenario and Rationale

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1.1 Strategic challenge

BMW is a German manufacturer of premium automobiles that has built a reputation

for quality and reliability across the globe. Moving forward into the future, the
company is emphasizing sustainability in terms of reduced environmental impact of its
vehicles. To this end, investment has been made in developing a range of new electric
vehicles known as the ‘i’ brand featuring a new i3 model launched in 2013. With a
high price of £35,000, the challenge for BMW is to position the new i range to take
advantage of BMW’s brand equity while emphasizing the green credentials of the new
i range.

1.2 Market analysis

Alternative energy vehicles (AEV) include pure electric cars and hybrid electric cars
that make use of an internal combustion engine. In 2013, sales of electric cars
increased by 17.4% on 2012 figures (Mintel, 2013). Over the same period, the total
number of car registrations increased by 10.8% (Mintel, 2013). In total, 25,156
electric cars were been sold in 2013, representing 1.4% share of total new car
registrations (The Guardian, 2013) .Hybrid vehicles account for the largest share of
alternative energy vehicles at 90%; however, pure electric cars had the largest
increase in sales in 2013 at 142.2% in comparison to hybrids at 128.1% in the same
period (Electric Vehicles Initiative, 2013). In 2013, 2,543 alternative energy cars
were registered in the UK constituting 1,814 pure electric and 729 were hybrids
(Electric Vehicles Initiative, 2013).

1.3 Market trends

Efforts are being made in the industry to encourage purchase through a range of
emerging business models and incentives. One trend is battery leasing where
manufacturer retina liability for batteries used to power vehicles thus reducing risk for
consumers (IEA, 2009). Another trend is mobile phone-style transportation contracts
offering alternative energy vehicles via a range of subscription based packages that
provide access to charging points and batters swapping stations (IEA, 2009). This
brings a more flexible customer solution to attract new users. Vehicle leasing is a
further trend that reduces the initial outlay on vehicles making them accessible to a
larger group of buyers (SMMT, 2011).

1.4 Competitor analysis

Competition is the AEV segment is concentrated with the large car manufacturers
accounting for the majority of production as innovation and production require large
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amounts of capital investment. In 2013, the Nissan Leaf dominated the market with
825 units sold. This was followed by the Toyota Prius with 295 units, the Vauxhall
Ampera with 150 units and the Renault Zoe with 132 units sold (SMMT, 2013).The
respective market sales figures for electric vehicles for 2011-2013 are shown in table
1 below:

Table 1: UK electric car sales 2011-2013

Model Market Total sales Sales Sales Sales

share 2011 2012 2013
Nissan leaf 42.9% 2,159 635 699 825
Toyota Prius 15.2% 765 x 470 295
Vauxhall Ampera 12.1% 609 4 455 150
Peugeot Ion 8.00% 401 124 251 26
Mitsubishi i MiEV 5.2 % 260 27 125 107
Citroën C-Zero 4.00% 201 46 110 45
Renault Zoe 2.6% 132 x x 132
Chevrolet Volt 1.8% 90 x 67 23
Smart electric drive 1.6% 79 63 13 3
Renault Fluence 1.5 % 74 x 67 7

Source: SMMT, 2013

2. Situation Analysis

2.1 Audit Summary

An audit was carried out in appendix A of this assignment to evaluate the current
position of BMW in the context of the macro, micro and internal business
environments. This analysis identifies the current strengths, weaknesses,
opportunities and threats facing the company and key findings are as follows:

2.2 Strengths

× Product innovation

The BMW i3 has a number of innovative features including an electric bike,

sustainable materials, and flat panels instead of dials for an intuitive driver
experience.

× Brand image

BMW has an established brand heritage, associations and image that have built a
positive brand image that can be leveraged for the launch of the new i3 series.
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× Distribution network

With 148 retail distributors throughout the UK employing around 11,000 staff, BMW
ensures consumer convenience in product distribution (BMW, 2014).

× Dealer support

Dealers are keen to support the brand in return for incentives and have a close
relationship with BMW in brand building campaigns.

× Marketing expertise

With the successful brands MINI and Rolls-Royce, BMW have demonstrated marketing
capabilities that can underpin the success of the new i3 marketing plan.

× Financial resources

Profit of € 6,024 million was earned in 2013, despite challenging markets in Europe
and the USA that are slowly recovering from recession (BMW, 2014).

× Market knowledge

With a market presence in the UK of over 50 years, BMW has accumulated an

insightful knowledge of consumer preferences (BMW, 2014).

2.3 Weaknesses

× Pricing and value

Although the i3 qualifies for a £5,000 Government grant, the i3 starts at £25,680
which is over £8,000 more than a series 1 petrol engine BMW model (Department for
Transport, 2014).

× Personnel skills

The dealers that represent BMW will need to upgrade skills to support the new i3
series as the majority lack experience of electric vehicles.
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× After sales service

BMW offer limited after sales service for the new i3 and does not offer a buy back
scheme as in applied to its non-electric models.

2.4 Opportunities

× Political

The government has implemented a favorable tax regime for consumer and
organizational buyers of AEV along with a budget £400m to promote AEV usage (BIS,
2012)

× Environmental

There is an interest in reducing waste and increasing recycling and the i3 can build on
this trend by reducing emissions.

× Threat of new entrants

There is a low threat of new entrants due to the scale economies and sunk costs
required to manufacture and develop electric cars.

× Social factors

The UK represents a relatively large potential market with a population of 63.3 million,
average age 40.2 seeking a cosmopolitan and modern lifestyle (CIA World Fact Book,
2014).

× Rivalry

Competition is limited as the market is oligopolistic and market growth is projected to

be 20% from 2014 to 2020 (Idtechex, 2012) thus increasing the number of potential
customers.

× Substitutes

Toyota is launching the first mainstream hydrogen powered car in 2015; however, it
faces serious challenges in terms of limited refueling infrastructure (Toyota, 2014).
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2.5 Threats

× Economic

UK GDP grew by 0.2 % in 2013 and this constrains consumer incomes and ability to
buy expensive electric cars (CIA World Fact Book, 2014).

× Technological

Despite government spending of £37million on public charge points and subsidies for
home charging, there are limited places to recharge electric vehicles (BIS, 2012).

× Power of buyers

Buyers are more educated and informed in recent times and are increasingly loyal to
price and value rather than brands.

× Power of suppliers

Suppliers of specialized components for AFV have high power e.g. battery suppliers
and represent a threat as they have control over essential vehicle parts and prices.

The audit concludes that environmental factors are favorable given the organizational
analysis as shown in figure 1 below:

Figure 1: The current situation facing the BMW i3

Current Situation
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Environmental analysis

BMW i3

Organizational analysis
Source: Author, 2014

3.0 Aims and objectives

3.1 Corporate
× To build a reputation as a manufacturer of premium electric cars

3.2 Marketing
× To achieve market share of 15% of the electric car market in 2013

3.3 Sales
× Achieve sales of £17.5m (500 cars) in 2013

4.0 Competitive strategy

4.1 Market stance strategy

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Companies can choose to be leaders, followers or challengers in a particular market.
BMW is following a challenger strategy where is intends to compete head on with
Nissan Motors, the market leader with its Leaf electric car. A full frontal attack
involves matching and improving on an opponent’s marketing mix with the strategic
objective to gain market share and to eventually become the leader (Mc Donald, 2007).
For such a strategy to succeed, it is important to have some sustainable competitive
advantage over a leader e.g. lower costs that result in lower selling price or a superior
marketing mix leading to higher consumer value. BMW has a differential advantage
over Nissan in terms of greater brand equity and a product that has superior functions
and features.

4.2 Brand strategy

BMW uses an umbrella branding strategy where all of the companies sub brands are
identified by the company name. This helps to ensure brand consistency and trust
among audiences. A brand is a symbol, sign, logo or trademark that identifies and
differentiates products and services in a market (Kotler and Armstrong, 2008).
However, brands are more than this in that they create value for consumers as
defined as the difference between the costs and benefits of acquisition and
ownership. Specifically, brands create functional, emotional and social value
(Feldwick, 2002).

The i3 creates functional value through its actual and augmented product offerings
i.e. functions and features, styling, reliability and performance. Emotional value is
created through the BMW brand heritage, country of origin effect, associations and
personality. Social value derives from self-image, empathy, uniqueness and imagery
associated with a brand. By creating functional, emotional and social value, BMW
projects a brand identity that reflects its premium status in the market that will
attract consumers and encourage trial and purchase of the i3 electric car as a valued
transport option.

4.3 Business strategy

According to Michael Porter (1980) there are three competitive strategies that can be
followed by companies, cost minimization, differentiation and focus strategies. Cost
minimization is a low cost, quality and price strategy. Differentiation involves offering
products with a unique selling point that commands higher prices. A focus strategy is
offering niche products that are high in price. BMW implements a differentiation
strategy based on branding, quality and innovation and this is the basis of its
competitive advantage in the electric vehicle market.

4.4 Growth strategy

Over the next three years, investment will be made in marketing the i3 to capture
market share and increase profitability in the market. This will be done following the
product/market expansion grid as made popular by Ansoff (1957). In the first year of
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 operation, emphasis will be on selling more of the existing model to current consumer
segments. This will be achieved by advertising, incentive schemes, sales force activity
and loyalty schemes. In the second year, the resources will be allocated to market
development activities to attract new users and this will be done through an appeal to
different geographic, demographic, psychographic and behavioral segments. In the
third year, emphasis will shift to product development, where improvements will be
made to the actual and augmented offering. This will be achieved through improved
performance, new variants and better after sales service. Product/market expansion
activities for the i3 are shown in figure 2 below:

Figure 2: BMW i3 product/market expansion grid

Market share

Penetration Product development

Market growth

Market development Diversification

Source: Adapted from Ansoff, 1957

4.0 Marketing Strategy

5.1 Segmentation

Segmentation is the process of dividing a market into sub-markets into groups of

consumers with similar needs (Brassington and Pettitt, 2000). By identifying these
needs, companies can better serve consumers and improved value added in the
process. Segments represent potential buyers of a product or service that are further
refined into target segments for the greatest profitability and strategic gain. For the
i3, typical segments are current BMW buyers of the 3 series, buyers of similar
competitor models, those living in urban areas with short travel distances,
environmentally conscious and keen to try new technology and transport solutions.
Companies cannot normally satisfy the needs of all possible customers due to
resource constraints and focus on the most suitable, accessible, meaningful and
profitable groups and this is done through market targeting.

5.2 Targeting

It is essential that companies match product development with target markets as a

core element of successful marketing and this must be done systematically and with
the benefit of market research (Jobber, 2000). The targeting policy at BMW does not
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attempt to compete in every segment in the automotive industry; rather, focus is on
offering premium priced vehicles to a discerning audience seeking quality and driving
experience. As a result, four segments are suggested as targets for the i3: ‘Upper
liberals’, ‘Modern life stylists’ ‘Post-moderns’ and ‘Empty nesters’. The key target
customers for the i3 are illustrated in table 2 below representing the most likely
groups to take an interest in and buy the model in the near future.

Table 2: BMW i3 target segments

Average Annual
Market segment Product Benefit Focus
Age Income
Open minded, younger
£70k professionals, working in the
Modern life stylists 25-35
combined knowledge economy, single or
small family units are typical.
Socio/economic groups A/B,
£100k +
Upper liberals 35 - 45 Socially conscious individuals
combined
that can afford a second car.
High earning individuals,
entrepreneurial, individualistic
Post-moderns 40 - 55 £70k +
and creative. Seek
differentiated products.
Older, with no children at
home. Retired with limited
Empty nesters 55+ £40k
travel needs. High trust in
established brands and quality.

Source: Author, 2014

5.3 Positioning

Positioning involves implementing a targeting strategy in the marketplace by creating

a unique perception about a company’s offering and image (Ries and Trout 1981) .The
purpose of positioning the BMW i3 is to create belief in the customers’ minds that the
new series is different and better than competitors in terms of important benefits
sought by the target market. BMW can use the theory of segmenting targeting and
positioning to create a positioning map which can be used as the basis for its
marketing and branding strategies. A positioning map is a diagram that indicates the
position of the i3 relative to position of other competing brands based on important
attributes. BMW positions its brands as high price, high quality products that provide
driving satisfaction.
Figure 3: BMW Positioning Map for the i3 series

Product quality
Product price

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 Premium (BMW i3)

Economy Bargain

Source: Author, 2014

6.0 Marketing Mix

The term marketing mix (Borden, 1964) describes product, price, place and promotion
used to deliver customer value. BMW will implement the mix to deliver its intended
positional and competitive strategy. To achieve this objective, the slogan ‘electrify
your driving experience’ will be used. The mix elements will be implemented in an
integrated manner to deliver a consistent and unified message that is reinforced
across different value delivery mechanisms (Veloutsou, 2008).

6.1 Product

A product is anything that offers value to a market and includes before, during and
after sales activities that enhances the buyer experience (Bullmore, 1984). BMW uses
a premium product strategy implemented through a range of tactical value adding
elements. The value offered by the BMW i3 includes: premium mobility, enhanced
safety, reduced emissions, increased recycling and greater performance. Premium
mobility is ensured through the BMW ‘efficient dynamics’ concept whereby quality is
assured throughout the production, assembly and testing processes.

Enhanced safety is achieved through the use of carbon fiber reinforced plastics,
multiple air bags, strategic crumple zones and intelligent driving assistant technology.
Emissions are reduced to zero by using systematic energy management and
contemporary battery systems. Recycling is improved through an ambitious waste
management program resulting in a low 9.05 kg of disposable waste per vehicle
produced in 2013.Performance is achieved through the use of lightweight production
materials that enable a range of 130-160 kilometers, energy recharge time of 6 hours
for 80% capacity and an acceleration time of 7.2 seconds from 0-100 kilometers per
hour. The actual product is augmented by an 8 year or 160,000 kilometer ‘high-
voltage battery warranty’ (BMW, 2014).

Figure 4: Product strategy

High

Quality 11
 BMW i3

Low
Branding
Low High

Source: Adapted from Vignali, 1997

6.2 Price
The price of an item is its monetary value in marketing exchange (Lovelock, 1994)
Price is unique in the marketing mix as it is the only element that brings revenue as
all the others bring costs. As such it is a sensitive mix decision and directly represents
the brand value. Consumers often associate high prices with high quality and low
prices with low quality. BMW uses a skimming price strategy implemented through a
range of tactical price option elements. Price is derived at by setting brand objectives,
examining costs, estimating demand, considering competitor prices and government
subsidies.

The lowest priced carbon energy powered BMW model in the UK is currently £ 19,475
and the highest priced model is at £ 67,000. The i3 model is offered at a price of £
35,000 and with a government purchase scheme grant of £ 5000 places it at an
affordable range for a premium quality branded vehicle. At an additional cost of
£3,000 a small range extender petrol engine can be added that gives an extra 80
kilometers range. Also, a 13,000 kilometers per annum contract at £2,995 down
payment and 36 months at £369 is a purchase option.

Figure 5: Price strategy

High

BMW i3
Quality

Low Pricing
Low High
Source: Adapted from Vignali, 1997

6.3 Place

Place in marketing terms is the way in which a product or service is made available to a
consumer group at any point of time and context. Essentially, place is “an organized
network of agencies and institutions (Keegan and Green, 2008 p.461). Distribution is
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 often termed the ‘forgotten P’ as it has less visibility than the other elements of the
marketing mix; however, it is an essential part of the value creating activities of an
organization. BMW implements a selective distribution strategy, carefully choosing its
representatives to ensure quality and consistency in sales and service. The i3 will be
supported by almost 50 dealerships throughout the United Kingdom, with an emphasis
on areas of highly concentrated populations.

London is the most rapidly growing metropolitan area in Europe and represents an area
where there will be a large number of i3 dealers. Dealerships will have specialist
technical capabilities to service and repair the new model. A wider network of dealers is
planned over the next 3 years to extend support to more remote regions in the country.
The distribution model for the i3 is based on independent dealerships that represent
BMW and are incentivized by commissions on sales and repeat business. Existing BMW
networks will be used as this provides instant access to the target audience and builds
on a credible and established support infrastructure and systems.

Figure 6: Place strategy

High
BMW i3

Exclusive

Low
Intensive
Low High

Source: Adapted from Vignali, 1997

6.4 Promotion
Promotion is a set of activities used to create, deliver and reinforce messages to a
target audience in a particular market or markets (Fill, 2011). It is the science and art
of creating a meaningful dialogue with current and potential customers and
constitutes advertising, sales promotion, personal selling and public relations. These
tools will be used to communicate the benefits of the BMW i3 in an effort to attract
attention, create interest, arouse desire and encourage action in terms of vehicle
purchase.

The promotion strategy integrates with the other elements of the marketing mix in
terms of taking a narrowcast approach that is focused on a clearly defined target
audience. A blend of media will be used with an emphasis on TV, radio, print along
with online and digital media platforms. The specific promotional mix and media is
detailed in appendix B of this report in the form of a 3 year outline of activities used
to deliver a creative, consistent and interesting dialogue with a range of target
publics.
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 Figure 7: Promotion strategy

High

BMW i3
Narrowcast Low
Specialized
Low High

Source: Adapted from Vignali, 1997

7.0 Measurements and Control

The BMW i3 marketing plan will be evaluated on a quarterly basis in comparison to

set objectives and corrective action will be taken in case of deficient performance.

7.1 Quantitive measures

× Market sales
× Market share
× Profit per period

7.2 Qualitative measures

× Image & reputation

× Attitudes, opinions
× Levels of loyalty

8.0 References
Ansoff, I.(1957) Strategies for Diversification, Harvard Business Review, Vol. 35 Issue
5, Sep-Oct 1957, pp. 113-124.

BIS (2012) Multi-million boost for UK electric vehicle battery technology (online)
available from: http://news.bis.gov.uk/Press-Releases/Multi-million-boost-for-UK-
electric-vehicle-battery-technology-67f95.aspx(accessed on 21/02/2014)

Borden, Neil H. (1964), "The Concept of the Marketing Mix," Journal of Advertising
Research, 4 (2), 2-7

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BMW (2014) corporate website (online) available from:
http://www.bmw.co.uk/en/index.html (accessed on 04/01/2014)

Brassington, F. and Pettitt, S. (2000) Principles of Marketing (2nd ed.). Harlow:

Prentice Hall.

Bullmore, J. (1984) 'The Brand and its Image Revisited." International Journal of
Advertising, 3, 235-238.

CIA World Fact Book (2014) The United Kingdom (online) available from:
https://www.cia.gov/library/publications/the-world-
factbook/geos/print/country/countrypdf_uk.pdf (accessed on 23/02/2014)

Department for Transport (2014) Plug in Car Grant (online) available from:
https://www.gov.uk/government/publications/plug-in-car-grant (accessed on
21/01/2014)

Electric Vehicles Initiative, (2013) GLOBAL EV OUTLOOK Understanding the Electric

Vehicle Landscape to 2020 (online) available from:
http://www.iea.org/publications/globalevoutlook_2013.pdf (accessed on 25/02/2014)

Feldwick, Paul (2002), What is Brand Equity Anyway?. Oxfordshire, UK: World
Advertising Research Center

Fill, C. (2011) Essentials of marketing communications, Harlow, Financial Times/

Prentice Hall.

Idtechex (2012) Hybrid and Pure Electric Cars 2012-2022(online) available from:
http://www.idtechex.com/research/reports/hybrid-and-pure-electric-cars-2012-2022-
000287.asp (accessed on 26/02/2014)

IEA (2009) Market outlook to 2022 for battery electric vehicles and plug-in hybrid
electric Vehicles (online) available from: http://www.iea-etsap.org/web/E-
TechDS/PDF/T05_BEV%20and%20PHEV_final_18Jun10_GS_OK.pdf (accessed on
20/02/2014)

Jobber, D. (2000) Principles and Practice of Marketing, 3 rd Edition, UK, McGraw-Hill

Keegan, W.J. and Green, M. C (2008), Global Marketing, 5th edition, Pearson Prentice Hall
Kotler P and Armstrong G 2008, Principles of Marketing, 13th Edition, Prentice Hall,
Kotler, P. and Armstrong, G. (2008) Principles of Marketing, 12th, Ed, Pearson,
Prentice-Hall, Upper Saddle River, New Jersey, NJ

Lovelock, C (1994) Product plus: How product + service = competitive advantage, Mc

Graw Hill

Mc Donald, M. (2007) Malcolm McDonald on Marketing Planning: Understanding

Marketing Plans and Strategy, Kogan-Page

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Mintel (2013) Car Retailing - UK - July 2013 (online) available from:
http://academic.mintel.com/display/686687/ (accessed on 27/02/2014)

Porter, ME (1980) Competitive Strategy: Techniques for Analyzing Industries and

Competitors New York: Free Press

Ries, A. and Trout, J. (1981) Positioning, The battle for your mind, Warner Books –
McGraw-Hill Inc., New York

SMMT (2011) Rental and leasing companies meet at SMMT to discuss EV market
(online) available from: http://www.smmt.co.uk/2011/06/rental-and-leasing-
companies-meet-at-smmt-to-discuss-ev-market/(accessed on 12/02/2014)

SMMT, 2013 September 2013 – EV registrations (online) available from:

http://www.smmt.co.uk/2013/10/september-2013-ev-registrations (accessed on
18/02/2014

The Guardian (2013) Electric Vehicle Sales Hit Record High in Q3 in UK (online)
available from: http://insideevs.com/electric-vehicle-sales-hit-record-high-in-q3-in-
uk/ (accessed on 27/01/2014)

Toyota (2014) Fuel Cell Technology (online) available from:

http://www.toyota.com/fuelcell/ (Accessed on 09/02/2014)

Veloutsou, C. (2008) Branding: A constantly developing concept, Journal of Brand

Management, vol. 15 No. 5, 299-300

Vignali, C. (1997) "The MIXMAP-model for international sport sponsorship", European

Business Review, Vol. 97 Iss: 4, pp.187 – 193

9.0 Appendix A: Environmental and organizational analysis

Environmental analysis

MACROENVIRONMENT OPPORTUNITIES & THREATS

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PESTE ANALYSIS CRITERION OPPORTUNITY/THREAT SCORE
/5
Political AFV Policy £400m to promote AEV usage. 4
Economic GDP growth GDP has grown by 0.2 % in 2013 2
Social Demographics 63.3 million , average age 40.2 4
Technological Level of Limited places to recharge vehicles 2
infrastructure
Environmental Investment Keen interest in reducing waste and 4
and trends increasing recycling
Total 16

MICROENVIRONMENT OPPORTUNITIES & THREATS

PORTERS 5 CRITERION OPPORTUNITY/THREAT SCORE

FORCES /5
Rivalry Market growth Low 20% growth in 2012 4
Threat of new Entry costs Low High entry and sunk costs 4
entrants
Power of supplier Concentration High Few specialized providers 2
Power of buyer Brand loyalty Low Increasingly loyal to price 2
Threat of Cost and ease High Little emerging technology 4
substitutes of innovation
Total 16

Organizational analysis

STRENGTHS & WEAKNESES

Component STRENGTH/WEAKNESS SCORE /

5
Product innovation Innovative features differentiate the i3 4
Brand image BMW has an established brand heritage 4
Pricing and value The i3 starts at £25,680 which is expensive 2
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 Distribution network 148 retail distributors throughout the UK 3
Dealer support Dealers are keen to support the brand 4
Marketing expertise BMW have demonstrated marketing capabilities 4
Personnel skills The dealers will need to upgrade skills 2
After sales service BMW offer limited after sales service 2
Financial resources Profit of € 6,024 million was earned in 2013 4
Market knowledge BMW has accumulated an insightful knowledge 4
Total 33

SUMMARY OF CURRENT POSITION SCORE

Environmental analysis 32
Organizational analysis 33

Current Situation

50
Environmental analysis

BMW I3
(32, 33)

25

0 25 50

Organizational analysis

10.0 Appendix B: Promotion schedule and budget

Activity Year 1 ($) Year 2($) Year 3 Total ($)

Advertising
55,000 35,000 25,000
Quality press 45,000 20,000 15,000
Car magazines 15,000 10,000 5000 225,000
Billboards
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Direct marketing
Direct emails 7,000 4,000 XXX 20,000
SMS campaign 6,000 3,000 XXX
Public Relations
Brand ambassador 45,000 25,000 XXX 170,000
Public events 30,000 20,000 15,000
Product placement 20,000 15,000 XXX

Sales promotions
Trade incentives 55,000 XXX 55,000 165,000
Consumer incentives XXX 55,000 XXX

New media
Micro web site 5,000 3000 2,000 30,000
Blogging 3,000 1,000 1,000
Social media 5,000 5,000 5,000

Total 610,000

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