RESEARCH PROJECT

ON
MARKETING STRATEGY OF BMW

Submitted To Submitted By

SANDEEP BHASIM SIR AMAN NEMANI

Faculty Guide (Enrolment No. A1810415069)

BBA-3C

AMITY INTERNATIONAL BUSINESS SCHOOL

AMITY UNIVERSITY
 CONTENTS

1) Company Profile
2) Reason for Entry into Indian markets
3) Strategic Objective
4) Visions
5) Mission
6) Marketing strategy

7) Dealership Network Strategy

8) Product Line Modifications
9) Market Share and Performance
10) BMW India Market Competition
11) The Five Forces Model
12) SWOT Analysis
13) Operations at BMW - The Assembling Process
14) Key Inferences about the Operations Process
15) Quality at BMW
16) The Purchasing process at BMW
17) BMW Human Resources Policy

18) Brand Building and Sustenance

19) Corporate Social Responsibility
20) Management at BMW India
21) Organization chart of BMW India
22) Key inferences from the Organization Chart
23) Basic principles followed by BMW
24) Future Expansion Plans
Executive Summary
In this report a marketing plan is formed for BMW Automobiles in
GURGAON, the report starts off with a short introduction to marketing and
the company.
BMW is a leader in the premium luxury car market in the GURGAON; the
company has shown increasing sales in the last two years and has almost 10%
of the GURGAON car market share. The reason for this success is the diverse
range of cars that BMW has to offer. It consists of the BMW brand, Mini and
the Rolls Royce. However all three of them are successful products of BMW
Automobiles and are discussed in this report; more focus is given to the BMW
brand.
The reason so far for the success of the company is their accomplishment in
the company’s core strategy, product development. BMW over the years have
created cars and successfully launched them into markets, but times are
changing now as competitors like Mercedes are getting into new markets and
trying to win new consumers. BMW has to counter such moves by sticking to
its core strategy yet entering new markets. This is the way the company is
going to achieve its mission of becoming the the world leading provider of
premium products and premium services for individual mobility by 2020.
Introduction to Marketing
Marketing is something that affects every one of us every waking moment of
our lives; it is the management process for identifying, anticipating and
satisfying customer requirements profitably (Chartered Institute of Marketing)
Introduction to the Company
BMW (Bavarian motor works) is a German automobile, motor cycle and
engine manufacturing company which was founded in 1917. The majority of
the stake within the company is owned by strategic investors from all over the
world. BMW is mainly seen as a premium luxury cars manufacturer targeting
the rich and upper class society.

Corporate Objectives:
Corporate Objectives are simply what the business wants to achieve, they are
those that relate to the business as a whole.  They are usually set by the top
management of the business and they provide the focus for setting more
detailed objectives for the main functional activities of the business. BMW’s
corporate objectives are also simple and clear, they want to achieve a earning
before interest and tax margin of 8% in 2012, which is similar to the one they
achieved in 2011. Moreover the company wants to achieve a return on equity
ratio of 18% in the financial year 2012 (source BMW blog).

The other long term aims of the company are to have efficient dynamics in all
cars by 2020 and to be the world leading provider of premium products and
premium services for individual mobility by 2020, the latter is also the mission
statement of the company. (BMW Annual Report)

Marketing Audit

Macro Environment (PESTEL)

The macro environmental factors of an organization are the external and the
non controllable aspects of an organization, which can be best, understood by
using the PEST analysis.

BMW is a vast organization and thus a vast majority of external factors affect
the running of the company which are discussed below

Political:

In the recent past the GURGAON and EU laws have recognized the fact that
the car industry is a major contributor to the emission of Co2 in the
environment, recent studies have shown that 22% of the overall Co2 emissions
have been caused by road transport of which 92% are from cars. This has had
an immediate impact on BMW’s automobile industry. The pressure of
governments for greener technologies and environmental friendly cars has led
BMW to invest in such technologies, although this has raised the
manufacturing costs for BMW, it has also created a positive image in the
minds of its customers by reducing the carbon foot prints which is created on
the environment.

This has led to BMW launching its first car running on hydrogen in 2007,
which produced very less Co2 emissions. This greener image is also being
made prominent by the new engine technology called the Efficient Dynamics,
which BMW launched recently.( BMW BLOG)

Economical: . . . . .

The recent financial crisis has had a huge impact on all businesses throughout
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the GURGAON, consumer purchasing power has fallen significantly this is

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the reason why in 2008 BMW had a profit before tax of 351 million Euros
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whereas in 2011 the profits have increased to 7.3 Billion Euros.( Annual
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Report 2012) However In the GURGAON the recession is still growing

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stronger, as the country is facing is facing its first double dip recession since
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1975 so it is likely that these rising profits will come to a fall. (Daily mail) . . . . . . . . . . . . . . . . . . . . . .

The second major factor regarding BMW economical climate is that of rising
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oil prices, last month a barrel of crude oil had soared up to $122. This has
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raised the cost of sales for the company as it has risen by 9.5% when
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comparing the 2010 and 2011 financial statements. However it is worth

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mentioning that profits for BMW automobiles has increased by 75% in

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comparison with 2010. (Annual report 2012).

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Lower interest rates in the GURGAON are significantly affecting the

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consumer’s sa vings which is going to have an impact on BMW as the less the
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consumers will have to spend the lesser the sales for BMW, this is the reason
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why many economist and financial analysis predict a fall in sales for luxury . . . . . . . . . . . . . . . . . . . . . . .

items in 2012. (The World in 2012)

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Social . . .

Hofstede (1980) defines culture as the collective programming of the mind

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which distinguishes the members of one human group from another.

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The GURGAON population is expected to be increase by 8 million by the

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year 2029 when in comparison to 2012. The breakdown of this increase

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shows that the population is shifting towards more life expectancy and thus to
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an older generation. This shift will cause BMW to ponder upon its green
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technologies as the consumer will likely prefer a greener environment.

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(Market Oracle) . . . . .

Technological . . . . .
Technology has driven many aspects of societal development, business and
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marketing over the centuries, however the technological revolutions of the

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last 100 years have also led to the demise of various industries. For e.g. the
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typewriter has ceased to exist. . . . . . . . . . .

BMW has to constantly look after these changing environments, the BMW . . . . . . . . . . . . . . . . .

efficient dynamics is doing well in the markets but the organization should
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always be ready for change and one step ahead of its competitors. Recently
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Mercedes Benz launched an advert of its invisible car, which emits zero
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emission and Mercedes equipped one side of the car with sheets of LEDs that
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show streaming images captured by a Canon 5D Ma rk II camera attached to

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the other side of the car. The car blends into the background, making it nearly
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invisible. Although the car will not go in production until 2014 but his
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promotional campaign has caught attention of consumers throughout the

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world. BMW should critically analyze this situation and improve its efficient
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dynamics and hydrogen fuelled cars to respond to this technological

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advancement. (News. Discovery 2012).

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Internal Marketing Audit

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The micro environment can be best described as the environment that is most
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closely linked to the organization (Grocutt 2004)

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The internal environment of an organization can be best understood by using

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the Porter five forces model.

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Threat of New Entrants- Low . . . . . . .

The Automobile industry requires high amount of capital expenditure for a

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new organization to enter the market. BMW has a strong foothold in the
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market and is unlikely that it would be worried about new entrants to the
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market as BMW holds both tacit and explicit knowledge of the market which
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no new organization would gain early.

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Threat of Substitute Products- Medium . . . . . . . . . . . .

BMW customers are loyal to the brand, the ones who are using the BMW . . . . . . . . . . . . . . . . . . .

cars shall not be willing to switch to competitors as they are used to the drive
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and comfort of BMW,

. . . .

However people now have become health conscious and some consumers
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may in fact find walking more beneficial for their health and just taking
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public transport to get to work.

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Bargaining Power of Customers- Medium

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Individual customers can gather a lot of information about the production

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price of a BMW and can thus negotiate prices. On average a BMW car cost
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50% of its market retail price. (Guardian 2009) . . . . . . . . . . . . .

Bargaining power of suppliers- High

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The reason that supplier power is high because BMW relies on quality
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products from its suppliers making BMW so valuable, moreover supplier

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switching cost is high. . . . . .

Secondly BMW follows Just in time production so good relations with

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suppliers are very important for the company.

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Competitive Rivalry Within the industry- High

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The automobile industry is one of the most competitive industries, the reason
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being that the industry has low market growth rate. One of the fiercest rivals
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for BMW in the GURGAON is Mercedes and the Volkswagen Group.

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Moreover the exit cost for car manufacturers are also very high which
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maintains the competition within the industry.

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Company Profile
. . . . .

 Headquartered in Chennai . . . . . . . . . .

 BMW India Private Limited is a 100% subsidiary of the BMW . . . . . . . . . . . . . . . . .

 Initial investment in India is 1.1 billion Indian Rupees

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 Employed around 200 people

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Models . .

Assembled/Manufactured Locally
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BMW 3 Series (330i, 320i, 320d Corporate Edition and 320d Highline)

 . . . . . . . . . . . . . . . . .

 BMW 5 Se ri es (523i , 520d, 525d and 530d) . . . . .

 BMW X1 (To be la unched soo n) . . . . . . .

Imported
. . .

 BMW 5 Series (535i CBU) . . . . .

 BMW 5 Series Gran Turismo (Limited Edition) . . . . . . . . . . . . . .

 BMW 6 Series (650i Coupé and 650i Convertible) . . . . . . . . . . . .

 BMW 7 Series (740Li, 750Li, 760Li and 730Ld) . . . . . . .

 BMW X3 (X3 xDrive25i, X3 xDrive20d) . . . . .

 BMW X5 (X5 xDrive50i and X5 xDrive30d) . . . . . .

 BMW X6 (X6 xDrive50i and X6 xDrive30d) . . . . . .

 BMW X6 M
 BMW M3 (Coupé and Convertible) . . . . . . .

 BMW M5
 BMW M6 (Coupé and Convertible) . . . . . . .

 BMW Z4 (sDrive35i Roadster). . . . . . .

Reasons for entry into Indian Market

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 The luxury segment is puny in India, accounting for no more than . . . . . . . . . . . . . . . . . . . .

0.03% of the market. Nevertheless, high-end carmakers see it as crucial . . . . . . . . . . . . . . . . . . . .

to build a presence here due to the market's anticipated growth.

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 In 2000, only five in every 1,000 Indians owned a car; by 2010, the
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number is expected to have risen to 11 per 1,000. By 2010 there could

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be 13 million cars on India's already crowded roads, up from just 5

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million in 2000. . . . .
  "We want to benefit from this growth potential, but we also want to . . . . . . . . . . . . . . . . . . .

make an active contribution to this growth," said Norbert Reithofer, . . . . . . . . . . . . . . . . . . . . . .

chairman of BMW's board of management. . . . . . . . . . . .

 "Chennai has a developed infrastructure and it benefits from having . . . . . . . . . . . . . . . . . . . . . .

parts suppliers nearby," added Frank-Peter Arndt, BMW board member . . . . . . . . . . . . . . . .

in charge of production. . . . . . . . .

13 potential production locations were analyzed for se tting up the production

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plant in India. Chennai was chosen as the most feasible option because of the
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following reasons:
. . . . . .

 Automobile manufacturers . . . . . . . . . . .

 Automotive suppliers . . . . . . . . .

 Qualified labor . . . . . . .

 Cost balance for production location . . . . . . . . . . . . .

 Infrastructure – International Airport, Sea Port, Road Network

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Strategic objective . . . . . . .

“The BMW Group is the leading provider of premium products and premium
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services for individual mobility.”

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Vision . . .

“Uniqueness through diversity, Leadership, taking Risk, courteous”

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Mission . . .

"To become most successful premium manufacturer in the car industry"

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Marketing Strategy . . . . .

 BMW India studied the Indian markets and found it to portray . . . . . . . . . . . . . . . . . . .

immense dynamism and this is how BMW formulated its marketing . . . . . . . . . . . . . . . . .

strategy. . .

BMW India decided to stand their ground in a fiercely competitive . . . . . . . . . . . . . . . . . . . . . .

environment with new ideas and the strength to promote our new products. In
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absolute terms, India cannot compete with other high-volume single markets
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yet. But, the future belongs to India. If you want to benefit from the dynamics
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of the Indian market later, you need to act today. This is what they did. They
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were prepared to meet the challenges head-on to ensure their company's

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success. These qualities enabled them to weather stormy conditions and

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continue to invest in our future. They were able to anticipate trends and that
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gave them an edge. . . . . . .

Their strategy has been to embark on an aggressive product offensive with

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rapid market expansion through greater customer intimacy. They have

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addressed these through competency-enhancement across all levels seeking

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new business opportunities. As pioneers in bringing luxurious dealerships to

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India, they set a decisive course by se tting up BMW de alerships of

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international standards across all metros. They have set very high standards in
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service quality and customer care in India, which meet the expectations of
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their customers. And this is exactly how they position themselves to redefine
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luxury, focusing on individuals, recognizing future challenges, promoting

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creativity, and being the leading supplier of luxury products and services for
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individual mobility. They always concentrate on their strengths and thus on

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the .

Implementation of the luxury claim which they convey with each of their
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vehicles. They do not make compromises. This has been their strategy in
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India, where they currently have 16 BMW de aler facilities. As we embark on

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the next phase of our dealer network strategy, BMW India will further
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expand operations by establishing its presence in 10 more cities.

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 Communication, Pricing and Distribution . . . . . . . . . . . . . .

Most of the BMW communication takes place through print media in

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magazines and newspapers. This is supported by communication through TV

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advertisements and point of sales promotion. Now days a good company has
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a state of the art web portal. BMW websites are highly informative,
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interactive and a pleasure to watch. One can get any amount of detailed
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information regarding the prices, features, retailers, support services, etc.

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There are company specified retailers and distributors throughout the country
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who are in constant touch with the parent and comply implicitly. Dealers also
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have round the clock servicing and repair. BMW a lso has a used car portal
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where one can choose and buy his/her appropriate model.

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Dealership Network Strategy

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BMW India is the pioneer in bringing luxurious dealerships to India. BMW . . . . . . . . . . . . . . . . . . . . . . . . .

India has set a decisive course in India by setting up BMW dealerships of

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international standards across all metropolitan centers of the country. BMW

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India has set very high standards in service quality and customer care in
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India. The present dealer network covers 95% of the sales potential of the
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premium car se gment in India. BMW India’s dealership Network Strategy

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comprises of two phases as mentioned below.

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Phase I . . .

Phase I of the Dealer Network Strategy included establishment of 12 dealers

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covering major metropolitan centers of the country by the end of 2009. An

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aggressive plan was chalked out and implemented for completion of Phase I
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of the dealer network, much ahead of schedule (Phase I was completed by

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end 2008).
.

Owing to an exuberant growth potential, BMW India has further chalked out
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Phase II of its dealer development strategy to support its plans

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Phase II . . . .

In Phase II, BMW India will further expand operations in 10 additional cities
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in India.
. . . .

Presently, BMW India is present at 17 locations in the Indian market; BMW

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Studio (New Delhi), Deutschen Motoren (New Delhi), Deutschen Motoren

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(West Delhi), Bird Automotive (Gurgaon, NCR), Navnit Motors (Mumbai),

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Infinity Cars (South Mumbai), Krishna Automobiles (Chandigarh), Navnit

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Motors (Hosur Road, Bangalore), Navnit Motors (Millers Road, Bangalore),

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KUN Exclusive (Hyderabad), Kun Exclusive (Chennai), Bavaria Motors

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(Pune), OSL Prestige (Kolkata), Parsoli Motors (Ahmedabad), Platino

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Classic (Kochi), Kun Exclusive (Coimbatore) and Sanghi Classic (Jaipur).

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BMW dealerships presently display the BMW 3 Series and BMW 5 Series . . . . . . . . . . . . . . . .

that are produced at the BMW Plant Chennai. BMW dealerships also display
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the BMW 6 Series, BMW 7 Series, BMW X3, the BMW X5, the BMW X6,
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BMW Z4, and the BMW Gran Turismo which are available in the country as . . . . . . . . . . . . . . . . . . .

CBU’s (Completely Built-Up Units). The BMW M3 Coupé, BMW M3 . . . . . . . . . . . .

Convertible, BMW M5, BMW M6 Coupé, BMW M6 Convertible, BMW X6

. . . . . . . . . .

M, BMW 6 Series Individual and BMW 7 Series Individual can also be . . . . . . . . . . . . . . . . . . . . .

ordered at BMW India dealerships.

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Product Line Modifications . . . . . . . . . .

BMW entered the Indian car market in the year 2006 with the launch of its . . . . . . . . . . . . . . . . . . . .

first BMW model. The company established a sales subsidiary in Gurgaon in

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2006 to develop its dealer network. In 2007, BMW set up its first state of the . . . . . . . . . . . . . . . . . . .

art manufacturing unit in Chennai. 

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According to the Society of Indian Automobile Manufacturers (Siam), BMW

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India registered growth of 12.76% at 1,016 units from April-July 2009.

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However they have extensive expansion plans and hope to bag a sales figure
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of 3,000 units in 2010. This was planned to do by modifying the product line
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according to the Indian markets.

. . . . . . . . . .

BMW Initially launched the 3 concept cars in India- 3 Series, 5 Series and 7 . . . . . . . . . . . . . . . . . . . . . .

Series which were priced as follows:

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3-Series – Rs. 36-38 L . . .

5-Series – Rs. 45-50 L . . .

7-Series – Starting Rs. 1.08 Cr. . . . . .

The company further studied the Indian market in depth and realized that the
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models launched do no suit the Indian roads as well as the Indian mentality.
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Therefore, the company planned to modify models as per Indian markets. The
. . . . . . . . . . . . . . . . . . . . . .

new models of BMW were altered with some features such as the I-drive
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function; the 7-Series was no more a customized model; standardized

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interiors and many such modifications. Thus, the company was able to cut
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down prices. The new models were priced as follows:

. . . . . . . . . . . . . .

3-Series – Rs. 27-33 L . . .

5-Series – Starting Rs. 39 L . . . . .

7-Series – Rs. 80-90 L . . .

Luxury car maker BMW India achieved 100 per cent growth in its car sales
. . . . . . . . . . . . . . . . . . . .

this year.BMW India have already sold 2,703 cars till November and aims to
. . . . . . . . . . . . . . . . . . . . .

sell 2,800 by the end of this year against 1,387 last year, company’s president
. . . . . . . . . . . . . . . . . .

Peter Kronschnabi told reporters.

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MARKET SHARE AND PERFORMANCE . . . . . . . . .

BMW India Ranks as the Number One in the Luxury Car Segment in India  . . . . . . . . . . . . . . . . . . . . .

BMW India Achieves Leadership Position by Increasing its Market Share in . . . . . . . . . . . . . . . . . . . . . . . . .

the Luxury Segment of the Indian Automotive Market to over 40%

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BMW India is the number one in the luxury car segment in India and portrays . . . . . . . . . . . . . . . . . . . . . . .

a symbol for dynamic and forward striving people.

. . . . . . . . . . . . .

BMW India increased its market share in the luxury segment of the Indian . . . . . . . . . . . . . . . . . . . . . . .

automotive market to over 40% in 2009 (from 9% at the end of 2006). With
. . . . . . . . . . . . . . . . . .

3619 cars delivered to customers in the calendar year 2009, BMW India has . . . . . . . . . . . . . . . . . . . .

achieved the “highest sales by a manufacturer in the luxury car segment in a

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year” till date. . . . . .

In 2009 BMW India sold 

. . . . .

-- BMW 3 Series – 1155 units . . . . .

-- BMW 5 Series – 1590 units . . . . .

-- BMW 6 Series – 28 units . . . . .

-- BMW 7 Series – 350 units . . . . .

-- BMW X3 – 101 units . .

-- BMW X5 – 287 units . .

-- BMW X6 – 83 units . .

-- BMW Z4 – 25 units . .

2007, 2008 and 2009 were demanding years for BMW India and, at the same . . . . . . . . . . . . . . . . .

time, the most successful market entry for BMW in any country recently.
. . . . . . . . . . . . . . . . .

Various activities initiated during this period have provided BMW India with
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a solid basis to develop a strong foundation.

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BMW India Market Competition . . . . . . . . . .

Talking of competition prevailing in the Indian market for BMW India, we

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talk of companies like Mercedes, Audi, Volkswagen, Ferrari, Aston Martin

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and Porsche. Ferrari, Aston Martin and Porsche being car manufacturers are
. . . . . . . . . . . . . . . . . . . . . . .

not considered tough competitors to BMW India because these brands have
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much higher profile in various other markets of the world and will take time
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to establish themselves in the Indian market. Moreover, Ferrari struck the

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Indian markets in 2010 and, Aston Martin and Porsche plan to do that next
. . . . . . . . . . . . . . . . . . .

year. Thus, we can say, major competitors to BMW India are Audi and
. . . . . . . . . . . . . . . . . . . . . .

Mercedes. . . .

BMW has been giving equal fight to both the car manufacturers since its . . . . . . . . . . . . . . . . . . . . .

launch in the Indian market.

. . . . . . . . .

 Story till 2014 . .

German luxury car maker BMW had left behind its closest competitor,

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Mercedes-Benz, by se lling a larger number of cars in the luxury segment in

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2009. Mercedes-Benz has so far been the undisputed leader in the luxury car . . . . . . . . . . . . . . . . . . . . . .

segment in India. The company had started local assembly operations almost
. . . . . . . . . . . . . . . . . . . . . . .

a decade ago, thus making it difficult for competitors to beat its prices.
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Recently, however, both BMW and Audi have started local operations in the
. . . . . . . . . . . . . . . . . . . . . . .

country. In January 2009, BMW ma naged to sell 270 cars, as against the 79
. . . . . . . . . . . . . . . . .

units sold by Mercedes, and 244 units as against Mercedes’ 226. Audi is also
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fast catching up, having sold 109 units.

. . . . . . . . .

Mercedes-Benz CEO Wilfried Aulbur told media persons that BMW’s

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increased sales in recent months was attributable to the heavy discounts it

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was offering. After the launch of the new 3-Series, inventories of the older
. . . . . . . . . . . . . . . . . . . . . . . .

model were cleared with the help of discounts. Taking a direct shot at BMW,
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Aulbur said that Mercedes was against “stuffing” dealers with huge
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inventories to increase numbers and that ideally manufacturers and dealers

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should both get a good deal in the business. He also said that Mercedes-Benz
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was confident of maintaining its edge by launching latest models and

. . . . . . . . . . . . . . . . . . . . .

strengthening sales and service network. . . . . . . . . . . .

 Current scenario . . . . . .

The battle between the Germans is getting serious in India. BMW caught . . . . . . . . . . . . . . . . . . . . . .

Mercedes Benz napping and went past the three pointed star last year.
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However, with the launch of the new E-class, C-class Executive and the
. . . . . . . . . . . . . . . . . . . .

supercar SLS AMG, Mercedes Benz has taken the lead over BMW

. . . . . . . . . . . . . . . .

and Audi in the first seven months of 2010. Mercedes’ sales jumped by a

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massive 79.31% while BMW and Audi witnessed 35.35% and 56.5%

. . . . . . . . . . . . .

respectively in the period Jan-Jul 2010 compared to the same period last
. . . . . . . . . . . . . . . . . . . . . .

year. Mercedes Benz shifted 2,921 units compared to 2,718 for BMW and

. . . . . . . . . . . . . . . .

1,535 for Audi so far in 2010. . . . . . . .

  Future Anticipation . . . . . . . . .

We still have three months left in 2010 and the ultimate winner will depend
. . . . . . . . . . . . . . . . . . . .

on how well the market receives the new F10 5-series and the upcoming
. . . . . . . . . . . . . . . . . . . .

BMW X1. Even the all new X3 and 6-series could come before the end of the . . . . . . . . . . . . . . . . . . . .

year tilting favour towards BMW. In comparison, Mercedes Benz does not
. . . . . . . . . . . . . . . . . . . . .

have any big launches coming up this year. BMW has just got a new
. . . . . . . . . . . . . . . . . .

India head and everyone is eagerly looking at him what new strategy it comes
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up with. Audi has launched their all new A8 this year as well. Their

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competitor to the X1, the Q3 is under consideration for India as well.

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So who will eventually win in 2010? We predict that BMW will take over
. . . . . . . . . . . . . . . . . .

sales as they have a slew of launches in the second half of this year. The new
. . . . . . . . . . . . . . . . . . . . . . .

5-series has also got off to a good start beating the E-class in its first
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month. Audi are getting to the top and they may give Mercedes and BMW
. . . . . . . . . . . . . . . . . . . .

serious threat next year.

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 Audi as a competitor . . . . . . . . .

The Audi Q3 will go into serial production in 2011 in Spain and once that
. . . . . . . . . . . . . . . . . . . . . . .

happens, the cross coupe crossover from Audi to take on German rival BMW
. . . . . . . . . . . . . . . . . . . . . .

might just make just make it to Indian shores too. Now, plenty of stuff
. . . . . . . . . . . . . . . . . . . .

happening at Audi India seems to suggest just this. First things first, Audi
. . . . . . . . . . . . . . . . . . . . . . .

India is nowhere near Mercedes Benz India and BMW India when it comes
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to car sa les. This, despite of Audi having an excellent portfolio of world class
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premium cars in its arsenal. Audi India’s weak links have been its pricing and
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its brand awareness amongst the Indian premium car buying populace which
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is way lesser than Mercedes Benz and BMW.

. . . . . . . . . .

Also, Audi India being the latest of the entrant amongst the German car
. . . . . . . . . . . . . . . . . . . . . . .

makers is clearly not as aggressive a BMW India, which really has turned the
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heat on Mercedes Benz with a slew of cheaper and in many cases better
. . . . . . . . . . . . . . . . . . . . .

products. Audi India however has been content playing a distant number
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three and so far hasn’t done anything really, for it to move up and out of this
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position. On the other hand, rivals like BMW a nd Mercedes Benz are
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chalking out very aggressive plans to get into the INR 20-25 lakh segment
. . . . . . . . . . . . . . . . . . .

with their offerings. . . . . . .

BMW India till now did not experience much competition from Audi, but the . . . . . . . . . . . . . . . . . . . . . . . .

coming year and beyond might not be the same. Audi, as read above has a
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better growth rate in terms of sales. This could be the turning point for the
. . . . . . . . . . . . . . . . . . . . .

luxury car segment in the Indian markets and for Audi as well.
. . . . . . . . . . . . . . . . . . .

The Five Forces Model . . . . . . .

Threats from . . .

Potential entrants . . . . . .

Suppliers . . . Competitive . . . . . Buyers . .

Bargaining . . . . Rivalry . . Bargaining power . . . . . .

power . .

Threats from . . .

Substitutes . . . .

Porter explains that there are five forces inherent in a market, which will
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jointly determine the intensity of competition and profitability of BMW a nd

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the automobile industry. The first is the threat posed by new entrants, the
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high capital expenditure and confidence of customers represent significant

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barriers to entry and the market is also sensitive to reputation. However, the
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emergent of low cost manufactures do pose a significant threat. There is an

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opportunity in the low price/ low economy (fast) sector. The second is the
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threats from substitutes, as there are many make and model of other premium
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branded cars, hence, Mercedes Benz, Audi etc. The third force is the threats
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from the bargaining power of buyers, is this strong for both BMW and the
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entire automobile industry with a large number of alternative suppliers,

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hence, the aggressive pricing strategy. This results in a very strong

. . . . . . . . . . . . . . . . . .

competitive rivalry in the industry. This is intensified as a result of little or no

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differentiation in the basic product offered. Finally the threats from the
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suppliers bargaining power, this is fairly low in the automobile industry, due
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to dual sourcing strategies, using arrange of alternative sources of supply for

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parts. .

The five forces analysis gives an improved understanding of the degree of

. . . . . . . . . . . . . . . . . . . . . . . .

competition within the business environment. The analysis shows that the
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automotive industry is highly competitive, with buyers possessing and
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exerting a very powerful influence to the large number of substitute brands

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available to them.
. . . . . . .

SWOT Analysis . . . .

An Internal and corporate analysis in terms of strength, weaknesses,

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opportunities and threats (SWOT) will assist in gaining an understanding of

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where BMW is currently in terms of strengths and where improvement is

. . . . . . . . . . . . . . . . .

required within the business and what outside environmental threats it may
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face as well as what new opportunities are available to the company in the
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short and medium term.

. . . . . .

STRENGTHS . OPPORTUNITIES . . . . . .

 Diverse ranges of . . . . . .  New Products . . .

Products . .  Innovation & Alliances

. . . . . . . . .

 Customers demand change to more

 Strong Cash Flow
. . . . . . . . . .

comfortable and relevantly cheap cars

. . .

Position
. . . . . . . . . . .

Diversification
. . . .

 . . . . . . .

 Increase turnover
. . . . . . .
 New Technologies in Automobiles . . . . . . . . . . . . .

and trading profits

. . . . .

 Strong Balance . . . .

Sheet . .

 World's leading . . . .

Premium Quality . . . . . .

Automobile . . . . . .

Manufacturer . . . . .

 Brand Awareness . . . . .

 Human resources . . . . . .

 Capabilities to turn . . . . . . . .

resources into . . . . . .

advantages
. . . .
WEAKNESSES
. . . . THREATS
. .

 Perception of High
. . . . . .  New & existing competition
. . . . . . . . .

Prices . .  Volatility in Price of Fuel . . . . . . . . . .

 Customer disinterest . . . . . . .  New legislations . . . . . .

 Environmental
. . . . .  Consequences of the oil crisis
. . . . . . . . . . .

issues: Pollutions
. . . . . . .  Economic recession
. . . . . . . .

 Buyer sophistication . . . . . . . .  Market shift to globalization . . . . . . . . . .

and knowledge
. . . .  Takeover bids . . . . .

 Substitute products . . . . . .  Far-East (Japan, Korea, etc.) Automobile

. . . . . . . . . . . . . . .

or technologies
. . . . . . companies expansion
. . . . . . . .

 Extremely high competition for customers and

. . . . . . . . . . . . . .

resources
. . . .
Key Inferences about the Operations Process
. . . . . . . . . . . . . . . .

1. Design of processes
. . . . . .

1.1 it essentially means the various choices that we make with respect
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to the flow of parts in a manufacturing system

. . . . . . . . . . . . .

1.2 the 3 important aspects that influence process are volume, variety
. . . . . . . . . . . . . . . . . . . . .

and flow . .

1.3 volume indicates the average quantity of products produced in a

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manufacturing system . . . . . .

1.4 variety refers to the number of alternative products and variants of

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each product that are produced in a manufacturing system

. . . . . . . . . . . . . . . . . .

1.5 flow provides an understanding of how the components and

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material in an operations system get transformed from the raw

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material stage to finished goods stage . . . . . . . . . . . . . .

1.6 BMW follows a Continuous Flow System. The reasons for the same . . . . . . . . . . . . . . . . . .

are: . .

1.6.1 The Assembling Process, as explained above, is characterized . . . . . . . . . . . . . . . . . . . .

by streamlined flow of processes in the operating system . . . . . . . . . . . . . . . .

1.6.2 The production process is sequential and the required . . . . . . . . . . . . . . . . . . .

resources are organized in stages . . . . . . . . . . . . .

1.7 In the category of Continuous Flow System, BMW follows a Mass

. . . . . . . . . . . . . . . . .

Production manufacturing system. The reasons for the same are: . . . . . . . . . . . . . . . . . . . .

1.7.1 the volume of products is high . . . . . . . . .

1.7.2 the number of variations in the final product is low . . . . . . . . . . . . . . . . .

1.7.3 each product flows into each department in a streamlined . . . . . . . . . . . . . . . . . .

fashion . . .

1.7.4 within each department, there is an orderly flow of raw . . . . . . . . . . . . . . . .

material and component . . . . . . . .

1.7.5 in the context of planning and scheduling of activities , this . . . . . . . . . . . . . . . . . .

type of structure is called as “flow shop” . . . . . . . . . . .

2. Layout . . .

2.1 it deals with physical arrangement of various resources that are

. . . . . . . . . . . . . . . . . . . . . .

available in the system with an objective to improve performance

. . . . . . . . . . . . . . . . . . . . . .

of the operating system thereby providing better customer service

. . . . . . . . . . . . . . . . . . . .

2.2 BMW adopts a Product Layout. The reasons for the same are: . . . . . . . . . . . . . . . . . .

2.2.1 the resources are placed to follow the sequence dictated by . . . . . . . . . . . . . . . . . . . .

the product . . .

2.2.2 the process is standardized . . . . . . . .

 2.2.3 simpler operational control is possible . . . . . . . . . . . . . .

2.2.4 high volume is achieved . . . . . . . . .

3. Cycle time . . .

3.1 The cycle time for making a BMW is 14 Hours (2 working days) . . . . . . . . . . . . . .

3.2 The entire assembling process is explained above . . . . . . . . . . . . . . . . .

Quality at BMW
. . . .

Garvin had proposed 8 quality dimensions and BMW se ems to follow all of
. . . . . . . . . . . . . . . . . . . . .

them. The 8 dimensions followed by BMW are:

. . . . . . . . . . .

1. Performance . . . .

2. Features . . . .

3. Reliability . . . . .

4. Conformance . . . .

5. Durability . . . .

6. Serviceability . . . . . .

7. Aesthetics . . . .

8. Safety . .

The products offered by BMW undoubtedly perform outstandingly on each of

. . . . . . . . . . . . . . . . . . . .

the dimensions mentioned above.

. . . . . . . . . . . .

The Quality Principles followed by the company are:

. . . . . . . . . . . . . . .

a. Prevention instead of Reaction . . . . . . . . . . . .

Forceful redirection of the quality activities from “after the fact” fault
. . . . . . . . . . . . . . . . . . . . . . . . .

correction to “anticipatory” fault prevention

. . . . . . . . . . . . . . . .

b. Conserve best practice, safeguard new techniques . . . . . . . . . . . . . . . .

Assuring best practice by product and process design kits, safeguarding

. . . . . . . . . . . . . . . . . . . .

innovation and changes

. . . . . . . .

c. Mature concepts – little changes . . . . . . . . .

Influence the design of processes and indicators to be able to evaluate

. . . . . . . . . . . . . . . . . . . . . . . . . .

the product and process maturity at any time . . . . . . . . . . . . .

d. Quality adds value . . . . . . .

Initiation of projects and initiatives to achieve the quality targets while

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

considering cost and return principles . . . . . . . . . . .

e. Our concepts lead to top level customer satisfaction

. . . . . . . . . . . . . . . . . .

Transfer of customer feedback to concrete product and process . . . . . . . . . . . . . . . . . .

measures . . . .

f. Quality is a leadership task . . . . . . . . . .

 As BMW creates value for money for its customers, it provides them with
. . . . . . . . . . . . . . . . . . . . .

the best possible services at the time of sale as well as after sale. Before
. . . . . . . . . . . . . . . . . . . . . . . . .

any car is ready to be dispatched for the showroom in different parts of the
. . . . . . . . . . . . . . . . . . . . . .

country, the car is taken through various tests at the plant. A BMW model
. . . . . . . . . . . . . . . . . . . .

undergoes the followings tests:

. . . . . . . . .

 Rolling and ABS Test . . . . .

The performance of the vehicle is checked by rotating its wheels at a speed of

. . . . . . . . . . . . . . . . . . . . . . . .

120-150 km/hr. the engine performance and gear box performance is . . . . . . . . . . . . . . . . .

evaluated. Lights are checked. The vehicle is put into drive mode as well as
. . . . . . . . . . . . . . . . . . . . . . . . .

manual mode to check performance . . . . . . . . . . .

ABS means Anti lock braking syste m. The performance of all the 4 brake
. . . . . . . . . . . . . . . . . . .

lines corresponding to 4 whe els is checked while running the engine. The
. . . . . . . . . . . . . . . . . . . . .

pumps and the pressure levels are also checked.

. . . . . . . . . . . . . .

 Road Test . . .

Before the road test begins, the seat covers are removed, the viper and engine
. . . . . . . . . . . . . . . . . . . . . . . . . .

compartment are checked. The vehicle is made to run for the first time to
. . . . . . . . . . . . . . . . . . . . . .

check the parts setting. The vehicle is driven to various test tracks to test its
. . . . . . . . . . . . . . . . . . . . . .

performance. . . . .

 Sinusoidal track . . . . . .

The track is in sinusoidal waves. The vehicle is driven at a speed of 20 km/hr

. . . . . . . . . . . . . . . . . . . . . . .

to check whether the parts are welded properly or if any crack is there.
. . . . . . . . . . . . . . . . . . .

 Cobble Stone Track . . . . .

The vehicle is made to run on a track having stones to check if there are any
. . . . . . . . . . . . . . . . . . . . . . . .

loose parts. If so, then it will make noise and the defect can be found out.
. . . . . . . . . . . . . . . . . . . . . . . .

 ABS Track . .

The vehicle is made to run on a track on which water has been sprayed. This
. . . . . . . . . . . . . . . . . . . . . .

track helps to check the stability and control of a vehicle in slippery

. . . . . . . . . . . . . . . . . . .

conditions. . . . .

 S-Test .

The vehicle is made to run in S-Shape to check the fitment of parts

. . . . . . . . . . . . . . . . . . .

 Reverse Test . . . .
The vehicle is driven in reverse direction to check for missing parts and if
. . . . . . . . . . . . . . . . . . . . . . .

any abnormal noise is being produced during driving.

. . . . . . . . . . . . . . . . .

 Water Test . . .

The vehicle is placed in a water station for 8 minutes. The water is sprayed
. . . . . . . . . . . . . . . . . . . . . . . .

from all directions on the vehicle. This test helps to find out any leakage in
. . . . . . . . . . . . . . . . . . . . . . . .

the vehicle. . . . .

After the water test, the vehicle is sent to the car wash area where it is
. . . . . . . . . . . . . . . . . . . . . . .

completely washed and dried. After finishing all these tests, the vehicle is
. . . . . . . . . . . . . . . . . . . . . .

sent to the covered parking area and is considered to be ready for use.
. . . . . . . . . . . . . . . . . . . . . . . .

The Purchasing process at BMW. . . . . . .

BMW engages into 2 different kinds of purchase . . . . . . . . . . . . .

a. Direct Material Purchase . . . . . . . . .

This includes the Local Consumables Purchase, Technical Components . . . . . . . . . . . . . . . . . . . .

Purchase. . . .

Local Consumables Purchase includes Adhesive Tape, Assembly . . . . . . . . . . . . . . . . . . . .

Lubricant, Transmission Oil, and Sealing Compound . . . . . . . . . . . . . . . .

Technical Components Purchase includes Seat, Door Trim. . . . . . . . . . . . . . . . . .

b. Indirect Material Purchase . . . . . . . . . .

This includes all the material that assists in the making of the . . . . . . . . . . . . . . . . . . .

automobile but is not a part of the automobile. There are 2 kinds of

. . . . . . . . . . . . . . . . . . . . . . . . .

purchase orders for indirect material purchase. They are:. . . . . . . . . . . . . . . . . . .

1. Standard Purchase Orders . . . . . . .

These purchase orders are used for all those material which do not . . . . . . . . . . . . . . . . . . . . . .

fall under the category of frequent purchases. . . . . . . . . . . . . . .

For Example: Generators, Printer, Trolley, etc . . . . . . . . . . . . .

2. Frame Agreements . . . . . .

These purchase orders are used for all those materials which are . . . . . . . . . . . . . . . . . . . . . .

frequently purchased. The Frame Agreement does not change for a . . . . . . . . . . . . . . . . . . . .

minimum period of 6 months . . . . . . . .

The General Purchasing Process Steps
. . . . . . . . . .

Step Specification of Demand

1

Step 2
Supplier Selection

Step 3 Request for Quotation

Step 4 Purchase Requisition

Step 5 Purchase Requisition Release Strategy

Step 6 Evaluation/ Negotiation

Step 7 Purchase Order creation

Step 8 Purchase Order Release Strategy

Step 9 Goods Receipt Strategy

Step 10 Invoice Receipt

Step 11 Payment

Request for Quotation (RFQ) should contain the following specification

. . . . . . . . . . . . . . . . . . . . . . . .

a. The supplier must accept all BMW Payment terms and conditions . . . . . . . . . . . . . . . .

b. The delivery terns must be stated on the quotation . . . . . . . . . . . . . . . .

c. The quotation must be dated and stamped when received . . . . . . . . . . . . . . . . . .

Purchase Requisition (PR) must contain the following specifications

. . . . . . . . . . . . . . . . . . . . . . .

a. Supplier Name . . . . .

b. Commodity required . . . . . . .

c. Cost center . . .

d. Value as per quote . . . . . . . .

Invoicing must contain the following specifications

. . . . . . . . . . . . . . . . . .

a. Total price including base price, sales tax, service tax and excise duty
. . . . . . . . . . . . . . . . . . . . . . .

b. It must also include the currency of transaction

. . . . . . . . . . . . . . .

As read above, BMW India is known for its quality and creating value for
. . . . . . . . . . . . . . . . . . . . . . . .

money for the customers, this is reflected through their purchasing strategy.
. . . . . . . . . . . . . . . . . . . . .

Selection of suppliers for BMW is done through a very formal procedure to

. . . . . . . . . . . . . . . . . . . . . . .
avoid any sort of quality issues. Supplier selection is based on the result of
. . . . . . . . . . . . . . . . . . . . . . . . . . .

evaluation based on Supplier Performance Scorecard

. . . . . . . . . . . . . . . . . . .

The aspects covered in the Supplier Performance Scorecard are as

. . . . . . . . . . . . . . . . . . . . .

follows:
. .

Aspects . . Maximum Points . . . . .

Quality . . . 35

Cost . 25

Logistics . . . 20

Management . . . . 20

Total . . 100

Considerations for the Quality Aspect

. . . . . . . . . . . . .

a. No. of issues / volume of car set supplied

. . . . . . . . . . . . . .

b. Count of PIS / Quantity Supplied . . . . . . . . . .

c. No. of repeat quality issues / No. of Quality issues

. . . . . . . . . . . . . . . . . . .

d. No. of VIN affected / No. of cars produced

. . . . . . . . . . . .

e. Count of MCDR’ s / No. of cars produced

. . . . . . . . .

f. No. of VIN reworked / No. of cars produced

. . . . . . . . . . . .

g. No. of Quality points at supplier end / No. of quality issues at BMW

. . . . . . . . . . . . . . . . . . . . .

Considerations for the Cost Aspect

. . . . . . . . . . .

a. Timeliness in quote submission

. . . . . . . . . . . .

b. Response to our queries . . . . . . . . . .

c. Cost –break down and details of the offers

. . . . . . . . . . . .

d. Cost escalation control plan . . . . . . . . .

e. Productivity realization . . . . . . . . . .

f. Exchange rate – review

. . . . . . . .

g. Identify parts for further localization / new product initiative

. . . . . . . . . . . . . . . . . . . . . .
Considerations for the Logistics Aspect
. . . . . . . . . . . . .

a. Packaging issues . . . . . .

b. Schedule adherence – Timeliness . . . . . . . . . . .

Considerations for the Management Aspect

. . . . . . . . . . . . . .

a. TC Planning and smooth implementation . . . . . . . . . . . without . . . disturbing . . .

production . . . .

b. Invoicing and documentation issues . . . . . . . . . . . . . .

BMW Human Resources Policy . . . . . . . .

In response to a changing business environment BMW is being more

. . . . . . . . . . . . . . . . . . . .

business and service focus. In the past decade the organization has
. . . . . . . . . . . . . . . . . . . . . . .

become much more proactive, dealing with new concepts to become more
. . . . . . . . . . . . . . . . . . . . . . .

service and customer focus oriented. The structure of the organization has
. . . . . . . . . . . . . . . . . . . . . . . . . .

been redefined to deal with the new ways of operating. Organizational

. . . . . . . . . . . . . . . . . . . . . . . . .

structure defines important relationship within the business for achieving

. . . . . . . . . . . . . . . . . . . . . . . . .

business objectives. At the same time it helps to define the new business
. . . . . . . . . . . . . . . . . . . . . . . .

culture within BMW. Culture exists with the minds and hearts of BMW's
. . . . . . . . . . . . . . . . .

employees and contributes to business strategies of the organization.

. . . . . . . . . . . . . . . . . . . . . . . . .

Therefore, BMW's human resources policies are critical in the

. . . . . . . . . . . . . . . . . . . . .

organizations structure, conduct and performance.

. . . . . . . . . . . . . . . .

Competitive pressures on BMW and national economies have increased

. . . . . . . . . . . . . . . . . . . . . . . . .

markedly in recent decades. New competitions are emerging and forcing

. . . . . . . . . . . . . . . . . . . . . .

older companies to adopt or reform to survive. Different structures affect

. . . . . . . . . . . . . . . . . . . . . . . .

the way in which human resources are managed. BMW like all other
. . . . . . . . . . . . . . . . . . . .

businesses require the same basic human resources activities like

. . . . . . . . . . . . . . . . . . . . . . . . . .

recruitment, development and training, appraisal and reward syste ms, and
. . . . . . . . . . . . . . . . . . . . .

control and feedback mechanisms. Organizational structures are

. . . . . . . . . . . . . . . . . . . . .

influenced by culture. Employees have strong feelings towards the

. . . . . . . . . . . . . . . . . . . .

organizations they work for. BMW India has inherently a flat, less rigid
. . . . . . . . . . . . . . . . . . . . .

structure. The McKinsey 7 'S' mo del is often used to identify all the areas
. . . . . . . . . . . . . . . . . . . . . .

that make up an organization. Structure, Style, Staff are three such areas.
. . . . . . . . . . . . . . . . . . . . . . . .

BMW has an equal opportunities none sexual discriminating culture . . . . . . . . . . . . . . . . . . . . . . . .

within its organization. BMW actively supports young female executives

. . . . . . . . . . . . . . . . . . . . . . . .

and gives females insight into the field of technology. BMW a lso offers
. . . . . . . . . . . . . . . . . . . . .
extensive training for all level of staffs; BMW‘s Trainee Promotion
. . . . . . . . . . . . . . . . . . . . .

Programme (TPP) provides the perfect combination of theoretical studies

. . . . . . . . . . . . . . . . . . . . . . .

and practical work. BMW tra inees receive many benefits in addition to
. . . . . . . . . . . . . . . . . . . . . . .

their pay, other social payments such as holiday and Christmas bonuses,
. . . . . . . . . . . . . . . . . . . . .

meal and travelling expenses subsidies, health programme and PC

. . . . . . . . . . . . . . . . . . .

training. . . .

BMW claims that it does not see its staff as a cost factor but as an . . . . . . . . . . . . . . . . . . .

essential performance factor. Also the employees are referred to as

. . . . . . . . . . . . . . . . . . . . . . . .

‘associates' rather that works. BMW in its human resources policy states
. . . . . . . . . . . . . . . . . . . . .

that any policy that is not oriented towards its associates will lead to
. . . . . . . . . . . . . . . . . . . . . . .

negative cost effects in the long-run.

. . . . . . . . . . .

As a future-oriented company, we seek to pursue an exemplary, creative

. . . . . . . . . . . . . . . . . . . . . . . . . .

and associate-oriented human resources policy, making significant

. . . . . . . . . . . . . . . . . . . . . . . .

contributions to business success through our human resources activities.

. . . . . . . . . . . . . . . . . . . . . . . . . .

The human resources policy of BMW is an integral feature of our overall

. . . . . . . . . . . . . . . . . . . . . . . . .

corporate policy in both strategic and operative decisions. (Corporate

. . . . . . . . . . . . . . . . . . . . . . . . .

appraisal (or SWOT analysis) consists of the internal appraisal of the

. . . . . . . . . . . . . . . . . . . . . .

organization’s strength and weaknesses and an external appraisal of the

. . . . . . . . . . . . . . . . . . . . . . .

opportunities and threats open to organizations in competition within

. . . . . . . . . . . . . . . . . . . . . . . . . .

industry.
. .
Recruitment at BMW India . . . . . . . .

Process Input Mandatory . . . . . . . Mandatory . . . Output . . .

Step Documents . . . . Tools . .

Step 1 Operational Approved . . . . . . . . . . Completed forms, . . . .

Request of requirement organization

. . . . . . . . . . . . . . . Job description . . . . .

staff for based on chart, . Job . . . . . . sheet of the . . . .

approved. business Description . . . . . . . . . required position . . . . . . . .

job card plan . document, . . . . .

Manpower . . .

Requisition . . . . . .

Form .

Step 2 Job Portfolio results of

. . . . . . . . . Source of Collection
. of . . . . . . . .

Candidate descriptio employees . . . . . . . . . . . . recruitment;

. applications . . . . . . . .

search. n data
. . . . newspaper . . .

Preference sheet . . . . . . advertisements

. . . . .

given to . . . , recruitment . . . .

internal
. . . agency,
. .

candidates . . . . internet
. . .

advertisements
. . . . .

Step 3 . List of Job Description

. . . . . . . Short listed . . .

Short listing . . . applicants Document

. . . . . . applicants for . . . .

of . with their . . . interview and . . . . .

applications
. . . . . applicatio . . . . . finalization of . . . . . . .

ns interview . . . .

schedule . . .

Step 4 . Candidate . . . . Pre employment . . . . Selected . . .

Interview
. . . . and . form-curriculum . . . . . candidates with . . . . .

and . interview
. . . . vitae, interview . . . . . . . agreed target start . . . . . .

Selection . . . . schedule . . . evaluation form

. . . . . . . date . .

Step 5 . A copy of . . . Employment

. . . Completion of . . . . .

Enrollment . . . required . . . . contract, required . . . . . . joining formalities . . . . . . . .

document . . . relevant . . .

s documents from . . . .

candidate . . . .

Step 6 . Orientatio . . . . . . Orientation . . . . . . Feedback on . . . .

Orientation . . . . . . n evaluation form

. . . . . . . orientation
. . . . . .

Schedule . . . obtained, training

. . . . . . .

material provided, . . . . . . .

signed JD
. .
 collected . . .

Step 7 . Completio Communication . . . . . . . . . . Updated . . .

Update . . . n of charts . . organization chart

. . . . . . .

department . . . compensat . . .

organizatio
. . . . . . io n . .

n chart . document . . .

Step 8 . Job Probation . . . . . Result . . of .

Probation . . . . Descriptio evaluation form . . . . . . . . . . . evaluation

. . . . . .

Evaluation
. . . . . . n
document, . . .

target . .

agreement . . . .

A vision of things to come

. . . . . . . . .

BMW is aiming to fortify its number one position in the Indian luxury car . . . . . . . . . . . . . . . . . . . . . . . .

market, with 2010 car sales of more than 3,000.

. . . . . . . . . .

BMW India, therefore, also aims to expand its operations by the year 2010- . . . . . . . . . . . . . . . . . . . . . . .

2011. For this purpose, the company is constantly engaged in recruitments. . . . . . . . . . . . . . . . . . . .

The present employee strength of BMW Plant Chennai is 120. The company
. . . . . . . . . . . . . . . . .

aims to recruit around 50 more people and increase its strength to 160-200 by
. . . . . . . . . . . . . . . . . . . . . .

the year 2010-2011. . . .

The sources of recruitment used by the company for this purpose are as
. . . . . . . . . . . . . . . . . . . . . .

follows: . .

 External Sources mainly Campus recruitments, Recruitment . . . . . . . . . . . . . . . . . .

agencies . . . .

Campus recruitments . . . . . .

The selection process for candidates undergoing campus recruitments is as

. . . . . . . . . . . . . . . . . . . . . . . .

follows: . .

a. Technical round / Aptitude Test . . . . . . . . . .

Competency tested: Communication Skills . . . . . . . . . . . .

b. Group Discussion . . . . . .

Competency tested: Communication skillsCC . . . . . . . . . . . .

 c. Personal Interview . . . . . . .

Competency tested: Communication Skills . . . . . . . . . . . .

All candidates are required to appear for the aptitude test and group
. . . . . . . . . . . . . . . . . . . . . . . . .

discussion. The short listed candidates are required to appear for personal
. . . . . . . . . . . . . . . . . . . . . . . . . .

interviews.
. . . .

 Internal Sources mainly transfers and promotions . . . . . . . . . . . . . . .

a. Horizontal Shifts (Transfers) . . . . . . .

b. Vertical Shifts ( Promotions) . . . . . . . .

Brand Building and Sustenance . . . . . . . . .

 Since its inception, the BMW brand has stood for one thing: sheer driving
. . . . . . . . . . . . . . . . . . . .

pleasure. Sporting and dynamic performance combine with peerless design

. . . . . . . . . . . . . . . . . . . . . .

and exclusive quality, resulting in the unique appeal of BMW automobiles.

. . . . . . . . . . . . . . . . . . . . . . . . . . .

BMW has successfully leveraged its history and tradition of excellence along . . . . . . . . . . . . . . . . . . . . . . .

with innovation to become the most famous and recognized carmaker in the
. . . . . . . . . . . . . . . . . . . . . . . . .

world. Typical consumer brand associations for BMW might be “heritage”,

. . . . . . . . . . . . . . . . . . . .

“stylish”, “luxurious”, “powerful”, “elegant”, “performance” and “fuel . . . . . . . . . . . . . . . . . . .

efficient” to an extent.
. . . . . . . .

Also, with our enhanced product portfolio we have engaged with our
. . . . . . . . . . . . . . . . . . . . . . .

customers and prospects in innovative dialogues to ensure that the brand

. . . . . . . . . . . . . . . . . . . . . . . .

affinity transforms into product ownership. There have been initiatives such
. . . . . . . . . . . . . . . . . . . . . . . . .

as the BMW Golf Cup International across 10 cities and the BMW Art Cars
. . . . . . . . . . . . . . . . . . .

exhibition, held at the Jahangir Art Gallery in Mumbai. Conceptualizing the

. . . . . . . . . . . . . . . . . . . . . . . . .

BMW Studio at Janpath, Delhi as a venue where our customers can indulge . . . . . . . . . . . . . . . . . . . . . . . .

with the brand in an exclusive environment is another. There are also formal
. . . . . . . . . . . . . . . . . . . . . . . . .

dining and wine-tasting events at leading BMW dealerships across India.

. . . . . . . . . . . . . . . . . . . . . .

To reiterate the focus of the brand, we have adopted communication of the

. . . . . . . . . . . . . . . . . . . . . . . . . .

rich heritage of BMW Eras through association with leading fashion

. . . . . . . . . . . . . . . . . . . . . . .

designers and events such as the India Couture Week. For us, if actions
. . . . . . . . . . . . . . . . . . . . . . . .

submit to the values recognized as being 'on-brand', it will cumulatively build

. . . . . . . . . . . . . . . . . . . . . . . . .

the organization’s desired long-term reputation. If not, we appreciate that it

. . . . . . . . . . . . . . . . . . . . . . . . . . .

risks fragmenting what our brand stands for, and we won't go with the idea,
. . . . . . . . . . . . . . . . . . .

however compelling it is. This doesn't mean the brand is rigid, nor does it
. . . . . . . . . . . . . . . . . . . . . .
deny BMW opportunities. Rather, it serves as a framework for decision-
. . . . . . . . . . . . . . . . . . . . . .

making, enabling the business to feel confident that all its operational
. . . . . . . . . . . . . . . . . . . . . . . .

decisions are building the brand towards its long-term ambitions.

. . . . . . . . . . . . . . . . . . . .

Corporate Social Responsibility . . . . . . . . . . . .

BMW has undertaken to provide the basic welfare amenities to 3 villages. . . . . . . . . . . . . . . . . . . . . . . . .

The details of the proposal for these 3 villages are as follows:

. . . . . . . . . . . . . . . . . . . .

Management at BMW India . . . . . . . .

 Frank-Peter Arndt, . . . .

President of BMW India Pvt. Ltd. . . . . . . .

Peter was born in Villingen, Germany, in June 1966. He graduated with a

. . . . . . . . . . . . . . . . . . . .

diploma in International Business Management from the Pforzheim

. . . . . . . . . . . . . . . . . . . . . .

University of Applied Sciences, and joined BMW AG in 1995 under the

. . . . . . . . . . . . . . . . . . . .

International Trainee Programme in Sales & Marketing. In 1996 he rose to

. . . . . . . . . . . . . . . . . . . . . . . .

the position of Manager for the Africa Caribbean Region responsible for
. . . . . . . . . . . . . . . . . . . . . . . . . .

product and price. In 1998 he was promoted as Junior Area Manager for the
. . . . . . . . . . . . . . . . . . . . . . .

Region, and held the post of Area Manager during 1999-2002 In 2002 he was
. . . . . . . . . . . . . . . . . . .

elevated as GM Market Development, Asia, Pacific, Africa and Eastern

. . . . . . . . . . . . . . . . . . . . . . . .

Europe Region a post he held till 2005 end when he was appointed as
. . . . . . . . . . . . . . . . . . . . .

President of BMW India Pvt. Ltd. . . . . . . .

 Andreas Schaaf, . . . . .

Managing Director, BMW India Pvt. Ltd. . . . . . . . . .

Andreas Schaaf was born in Berlin, in March 1964. After graduating as

. . . . . . . . . . . . . . . . . . .

Diploma-Ingenieur specialised in the study of Production Technology at

. . . . . . . . . . . . . . . . . . . . . . . . .

Technische Universitat Berlin, From1991 -95 he worked AEG AG Berlin as a

. . . . . . . . . . . . . . . . . . . . .

Production Engineer, and came to BMW AG in 1995 working in the FIZ

. . . . . . . . . . . . . . . . . . .

Munich Plant of BM AG in the Process Planning and Technology Assembly

. . . . . . . . . . . . . . . . .

Department. He was promoted to Manager Production, at the door assembly

. . . . . . . . . . . . . . . . . . . . . .

plant Munich in 1998 till 2001 when he was elevated as head of Assembly
. . . . . . . . . . . . . . . . . .

Process & Structure Planning, Rosslyn Plant, BMW South Africa a position
. . . . . . . . . . . . . . . . . . .

he held till end 2003. In 2004 He returned to his old plant FIZ Munich as
. . . . . . . . . . . . . . . . .

Head of Projects Assembly Products Line-2. From 2005-2006 he was Head of

. . . . . . . . . . . . . . . . .
Projects VPS Value Added Production System at technology Assembly, FIZ
. . . . . . . . . . . . . . . . . . .

Munich before being appointed as Managing Director, BMW Plant Chennai.

. . . . . . . . . . . . . . . . . . . . . .

Organization chart of BMW India

. . . . . . . . . . .

Key inferences from the Organization Chart

. . . . . . . . . . . . . .

1. Horizontal Differentiation . . . . . . . . . . .

 It refers to Departmentalization . . . . . . . . . . . .

 BMW adopts functional departmentalization. . . . . . . . . . . . . . .

2. Vertical Differentiation . . . . . . . . . .

 2.1 It refers to hierarchical levels in an organization . . . . . . . . . . . . . . . . . . .

 2.2 Hierarchy in BMW is that Managing Director- General . . . . . . . . . . . . . . .

Managers-Deputy Manager-Specialists- Team Leader- . . . . . . . . . . . . . . . . .

Associate . . . . .

3. Span of Control . . . .

 3.1 It refers to the number of subordinates a manager can . . . . . . . . . . . . . . . . . .

efficiently and effectively supervise . . . . . . . . . . . . .

 3.2 Ideally, the number is 5-6 subordinates . . . . . . . . . . . .

 3.3. In BMW, the span of control ranges from 3-7 . . . . . . . . .

subordinates . . . . .

4. Centralization . . . . . .

 it refers to the extent to which the decision making . . . . . . . . . . . . . . . .

authority is concentrated at the top management . . . . . . . . . . . . . . . .

 In BMW, the final decision lies in the hands of . . . . . . . . . . . . . .

Managing Director . . . . . .

5. Formalization . . . . . .

 It refers to the extent to which the rules, procedures,

. . . . . . . . . . . . . . . .

communication, and instructions are written down and

. . . . . . . . . . . . . . . . .

followed by organizational members. . . . . . . . . . . . .

 In BMW, formalization is high . . . . . . . . .

 Factors causing high formalization are Nature of task is . . . . . . . . . . . . . . . . . . . .

routine, nature of product is Mass, Predictability of outcome

. . . . . . . . . . . . . . . . . . . . . .
 is high, Cause and Effect relationship is high, Presence of
. . . . . . . . . . . . . . . . . . .

functional departments, low variety, high volume

. . . . . . . . . . . . . . .

6. Specialization . . . . . . .

 6.1 It refers to the work specialization which is the result of . . . . . . . . . . . . . . . . . . .

division of labor . . . . . . .

 6.2 In BMW, there is high specialization . . . . . . . . . . . .

 6.3 Reasons for the same are that every functional head is an . . . . . . . . . . . . . . . . . . . .

expert in his or her area. . . . . . . . . .

Basic principles followed by BMW

. . . . . . . .

 Responsibility . . . . .

 Customer orientation . . . . . . . . .

 Peak performance
. . . . . .

 Effectiveness
. . . . .

 Adaptability
. . . . .

 Dissent . .

 Respect, trust, fairness

. . . . . .

 Leading by example
. . . . . .

 Sustainability . . . . . .

 Society . . .

 Independence
. . . . .

 Associates
. . . . .
RESEARCH METHODOLOGY . . . . . . .

The purpose of methodology is to describe the process involved in research

. . . . . . . . . . . . . . . . . . . . . . . .

work. This includes the overall research design, data collection method, the
. . . . . . . . . . . . . . . . . . . . . . .

field survey and the analysis of data.

. . . . . . . . . . . .

Objectives Of the Study . . . . . . .

Objective of the Study:

. . . . . . .

· To know the consumer satisfaction. . . . . . . . . . . .

· Check Comparitive Performance level. . . . . . . . . . . . .

· To find the satisfaction amongst the customers with the Brand

. . . . . . . . . . . . . . . . .

Sources Of Data Collection . . . . . . . . . .

Primary: . .

For my survey primary data have been used as a questionnaire to collect the
. . . . . . . . . . . . . . . . . . . . . . . . . .

data. . .

Questionnaire . . . . . . .

A questionnaire is a research instrument consisting of a series of questions

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and other prompts for the purpose of gathering information from respondents.
. . . . . . . . . . . . . . . . . . . . . .

Although they are often designed for statistical analysis of the responses, this
. . . . . . . . . . . . . . . . . . . . . . . . .

is not always the case. The questionnaire was invented by Sir Francis Galton.
. . . . . . . . . . . . . . . . . . . . . . . .

Questionnaires have advantages over some other types of surveys in that they
. . . . . . . . . . . . . . . . . . . . . . . . . .

are cheap, do not require as much effort from the questioner as verbal or
. . . . . . . . . . . . . . . . . . . . . . . . .

telephone surveys, and often have standardized answers that make it simple
. . . . . . . . . . . . . . . . . . . . . . .

to compile data. However, such standardized answers may frustrate users.

. . . . . . . . . . . . . . . . . . . . . .

Questionnaires are also sharply limited by the fact that respondents must be
. . . . . . . . . . . . . . . . . . . . . . .

able to read the questions and respond to them. Thus, for some demographic
. . . . . . . . . . . . . . . . . . . . . . .

groups conducting a survey by questionnaire may not be practical.

. . . . . . . . . . . . . . . . . . . . .
SECONDARY: . . .

The secondary data has been collected from the following modes:
. . . . . . . . . . . . . . . . . . .

· Magazines . . . .

· Books . .

· Newspaper . . .

· Data through internet sources . . . . . . . . . .

Research Design . . . . .

Research Design is the arrangement for conditioned for data collection &
. . . . . . . . . . . . . . . . . . . . . . . .

analysis of data in a manner that aims to combined relevance to research

. . . . . . . . . . . . . . . . . . . . . . . . .

purpose with economy in procedure.

. . . . . . . . . . . .

A research design is a master plan or model for the conduct of formal

. . . . . . . . . . . . . . . . . . . . .

investigation. It is blue print that is followed in completing study.

. . . . . . . . . . . . . . . . . . . . .

The research conducted by me is a descriptive research. This is descriptive in

. . . . . . . . . . . . . . . . . . . . . . . .

nature because study is focused on fact investigation in a well structured

. . . . . . . . . . . . . . . . . . . . . . . . . .

from and is based on primary data.

. . . . . . . . . .

RESEARCH PLAN . . . .

· Type of study: For completing my study I have gone for sample study . . . . . . . . . . . . . . . . .

because looking at
. . . . . . . .

the size of population & the time limitation it was not convenient for me to
. . . . . . . . . . . . . . . . . . . . . . . . . . .

cover entire. . . . .

population. Hence, I have gone for sample study rather than census study.
. . . . . . . . . . . . . . . . . . . . . .

Sampling Plan . . .

A sample design is a definite plan for obtaining a sample from a given

. . . . . . . . . . . . . . . . . . . . . . . .

population. It refers to the technique or the procedure that researcher would

. . . . . . . . . . . . . . . . . . . . . . . . . . .
adopt in selecting items to be inched in the sample i.e. the size of sample.
. . . . . . . . . . . . . . . . . . . . . . . .

Sampling plan is determined before data are Collected

. . . . . . . . . . . . . . . . . .

Sampling Unit. . . .

Sampling units are High Class and Educated people , Business Men etc.
. . . . . . . . . . . . . . . . . . . . .

Samples are collected via personal interaction or via electronic media.

. . . . . . . . . . . . . . . . . . . . . . . . . . .
 DATA . .

ANALYSIS
. . .
Name: 50 Clients of Luxury Cars
. . . . . . . .

Address:
. .

South Delhi --- Saket , Malviya Nagar , South Campus Area

. . . . . . . . . . . . . . . . . .

Pin Code____________
. . .

Gender: . .

Male: 35 ( 70%) . .

Female: 15 ( 30% )
. . .
Age:
. .

1) Below18 : 0
. .

2) 18-25 : 5

3) 26-35 : 20

4) 36-50 : 20

5) 51 and above : 5
. . . .
Occupation:
. . . . .

1) Service . . .

2) Business . . .

3) Student . .

4) Housewife . . . . .

Q.1) In your Opinion Which car is the Best ?

. . . . . . . . . . . .

a) BMW ( 68%)
b) Mercedes Benz ( 32% ) . . . .

Q.2) How long have you been associated with BMW or MERCEDES –
. . . . . . . . . . . . . . . . . .

BENZ ? (In years)

. . . .

a) Less than 1 year

. . . . . 8
b) 1- 5 20
c) 5-10 15
d) More than 10 . . . 7
Q.3) How would you rate BMW Motors on the following parameter? . . . . . . . . . . . . . . . . . .

Strongly disagree . . . . .

Disagree . . . .

Neither agree Nor disagree

. . . . . . . . . . .

Agree . . .

Strongly Agree . . . .

Knowledgeable sales person . . . . . . . . .

Agree : 30 %
. . .

Strongly Agree : 50% . . . .

Disagree : 10% . . . .

Neutral : 20% . . .

ii) Employees spent enough time

. . . . . . . . . . . .

with you: . . .

before sales : 10%

. . . . .

During sales : 80% . . . .

After sales : 10%

. . . .
Q.4) Which Car Have the best Aftersales Service ? . . . . . . . . . . . . .

a) BMW
b) Mercedes Benz . . . .

Q.5) What is your overall opinion about BMW over Mercedes Benz?
. . . . . . . . . . . . . . . . . . . .

Very Bad 0 . .

Bad 5 .

Neither Bad Nor Good 20

. . . . . . .

Good 15 . .

Very Good 10. . .

Q.6) How likely would you recommend BMW over MERCEDES BENZ ?
. . . . . . . . . . . . . . . .

Very . Very .

Unlikely
. . . Likely
. .

1 2 3 4 5

1:0
2 : 10
3 : 25
4 : 15
5:0
Q.7) Which Car provide the Best Value for Money
. . . . . . . . . . . . .

a) BMW : 25
b) Mercedes Benz : 25 . . . .

Q.8) Which Car provides you wide range of Accessories and Add-ons ?
. . . . . . . . . . . . . . . . . . . .

a) BMW : 20
b) Mercedes benz : 30
. . . .

Q.9) Which of the following Features of BMW you pefer more over
. . . . . . . . . . . . . . . . . . .

Mercedes Benz ?
. . . .

a) Sun Roof : 5. . .

b) Auto Visulaizer : 1
. . . . . . . .

c) Auto Sensors Wipes nd Park : 5

. . . . . . . .

d) Control panel : 4 . . . .

e) Drive Controls : 10 . . . .

f) Cruise Controls : 15 . . . . .

g) Convertible Roof : 10
. . . . . .
Q.10) Which Company provides More Powerful and Well Tuned Engines
. . . . . . . . . . . . . . . . . .

a) BMW : 15
b) Mercedes benz : 10
. . . .

c) Both : 25
.

Q.11) Which Engine make you prefer the Most when you Buy a luxury
. . . . . . . . . . . . . . . . . . .

car ?
.

a) V6 : 9
b) V8 : 10
c) V12 : 15
d) VTVT : 10
e) CRDi : 6 .
Marketing Mix . . . .

E. Jerome McCarthy in the 1960’s developed the mnemonic “4Ps” which has become the
. . . . . . . . . . . . . . . . . . . . .

most enduring of the marketing mix frameworks (McCarthy 1965). McCarthy defined the
. . . . . . . . . . . . . . . . . . .

4Ps as product, price, promotion and placement. . . . . . . . . . . . . .

Applying the 4Ps at BMW is as follows:

. . . . . . . .

Product . .

Since its inception BMW has remained a product based organization, this is the reason
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

why BMW has such a wide range of products. The company has three brands; the BMW, . . . . . . . . . . . . . . . . . .

Rolls Royce and the Mini. If talking about the BMW brand the following is the current
. . . . . . . . . . . . . . . . . . . . . . .

portfolio of cars the company has to offer

. . . . . . . . . . . . .

BMW 3 series, 7 series, 1 series, 5 series, 6 series, X1, X3, X5, X6 and Z4, out of these . . . . . . . . . . . . . . . . . . . . .

models the best in running is the BMW 3 series; the car has collecte d the greatest chunk of
. . . . . . . . . . . . . . . . . . . . . . . .

revenue for BMW over the years. But the thing to consider while keeping these models in
. . . . . . . . . . . . . . . . . . . . . . . . . . .

mind is the product life cycle . It shows the sales of the product through their useful life
. . . . . . . . . . . . . . . . . . . . . . . . . .

during different stages of their lifecycle. The stages include Introduction, Growth,
. . . . . . . . . . . . . . . . . . . . . . . . .

Maturity and Decli ne. . . . . . . .

If considering the product life cycle against the portfolio of cars that BMW has to offer
. . . . . . . . . . . . . . . . . . . . . . . . . .

then it can be said that most of the BMW cars are on the maturity stage, even though the
. . . . . . . . . . . . . . . . . . . . . . . . .

BMW X3 has high market share but the market which it belongs to does not show signs of . . . . . . . . . . . . . . . . . . . . .

growing as previously mentioned in the analysis of the BCG matrix. BMW has realized
. . . . . . . . . . . . . . . . . . . . . . . . .

this and has la unched the new version the BMW X3 in 2011 (BMW BLO G).
. . . . . . . . . . . . . .

BMW has to consider and place its products accordingly into the market, if most of the . . . . . . . . . . . . . . . . . . . . . . .

products of the company are going to be in the maturity stage then there will be serious
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

problems for the company as all of them will be going into decline together. Thus consta nt
. . . . . . . . . . . . . . . . . . . . . . . . .

and increased improvement into research and development has to be made in order for
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

BMW cars enter into the growth stage of the product li fe cycle. . . . . . . . . . . . . . . . .

In 2007 BMW launched a cli p on the internet about its GINA Light visionary model, it is
. . . . . . . . . . . . . . . . . . . . . . . . . .

a fabric skinned shape shifting sports car concept built by BMW. The car is enclosed with
. . . . . . . . . . . . . . . . . . . . . .

flexible, stretcha ble water resistant translucent man-made fabric skin – polyurethane-
. . . . . . . . . . . . . . . . . . . . . . . . .

coated Spandex, is resilient and durable. It resists high or low temperatures, does not swell
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

or shrink and the movement does not slacken or damage the fabric. ( DesignBoom.com) .
. . . . . . . . . . . . . . . . . . . . . . . .

Though the car is not for sale and thus hasn’t been introduced into the markets and is kept
. . . . . . . . . . . . . . . . . . . . . . . . . .

at the Munich museum it has caught the atte ntion of the world when it was premiered in
. . . . . . . . . . . . . . . . . . . . . . . . . . .

2007.

BMW should launch this car in the markets now using outdoor campaign and digital . . . . . . . . . . . . . . . . . . . . . . . .

marketing as such mediums should be used for high value impact products. The BMW
. . . . . . . . . . . . . . . . . . . . . . .
Gina can give competition to the Mercedes invisible car as both of them are new and
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

innovative technologies and consumers are willi ng to pay higher prices for such
. . . . . . . . . . . . . . . . . . . . . . . . . .

innovations.
. . . . .

Price . .

Price is the most important and decisive factor for a consumer in making a decision for
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

buying a product, Pricing can have BMW although has high price range for its cars but it
. . . . . . . . . . . . . . . . . . . . . . . .

is certainly value for money. The price range for BMW cars is 19000 to 80000. Most of
. . . . . . . . . . . . . . . . . . . . .

the BMW pricing strategy is based on competitor prices. For e.g. the BMW 3 series and
. . . . . . . . . . . . . . . . . . . . . .

the Audi A4 which represent the same market are loosely priced the same.
. . . . . . . . . . . . . . . . . . . . . . . .

Promotion . . . .

Sometimes promotion is confused with marketing; however promotion is the part of the
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

overall ma rketing mix of a company. So in effect marketing means to create interest for
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

potential customers in the company’s products and services. On the other hand
. . . . . . . . . . . . . . . . . . . . . .

Promotion happens when a company offers a discount, runs an advertising campaign and

. . . . . . . . . . . . . . . . . . . . . . . . . .

links this communication to their value proposition. (Stephen Blacker).

. . . . . . . . . . . . . . . . . . . . . . .

In the GURGAON, BMW markets its product using TV, radio, press and online marketing
. . . . . . . . . . . . . . . . . . . . . . .

(BMW Education). BMW also uses outdoor campaigns for branding and new car . . . . . . . . . . . . . . . . . . . . . .

launches. The BMW 5 series was heavily advertised using outdoor campaigns, the
. . . . . . . . . . . . . . . . . . . . . . . . .

company ran a three-week digital and poster outdoor campaign in London’s Holla nd Park
. . . . . . . . . . . . . . . . . . . . . . . . . . .

Roundabout and selected premium shopping centers to promote its new BMW 5 series
. . . . . . . . . . . . . . . . . . . . . . . . .

range. (Marketing Week).. . . . . . .

Recently because of the boost in the number of internet users around the world, viral
. . . . . . . . . . . . . . . . . . . . . . . . . . .

marketing has become a popular medium of advertisement. It can be delivered by word of

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

mouth or enhanced by the network effects of the internet. Mercedes one of the rivals of
. . . . . . . . . . . . . . . . . . . . . . . . . .

BMW uses this medium very effectively, the Mercedes Invisible car campaign went viral . . . . . . . . . . . . . . . . . . . . . . . . . .

over the internet when its clip was la unched on popular social media websites including
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

YouTube. In one month of its online campaign it has achieved over 9 milli on hits on
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

YouTube. BMW should also use such techniques as it proves a very effecti ve method in
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

promoting its wide portfolio of cars. (Digital Strategy Consulti ng)

. . . . . . . . . . . . . . . . . . . .

Place . .

Place includes all of the business activities involved in making the product available to
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

target customers. BMW sells its cars through a number of showrooms in the GURGAON
. . . . . . . . . . . . . . . . . . . . . .

and as well as from an extensive network of dealers who are provided with far-reaching
. . . . . . . . . . . . . . . . . . . . . . . . . . .

expertise and knowledge from BMW.(BMW Education). Place plays an important part in
. . . . . . . . . . . . . . . . . . . . . . .
the marketing mix as it refers to the ease for the customer in purchasing its products.
. . . . . . . . . . . . . . . . . . . . . . . . . .

BMW realises this but needs to improve onto this aspect by providing excelle nt customers . . . . . . . . . . . . . . . . . . . . . . . . . .

services and after sales services to their customers.

. . . . . . . . . . . . . . . . .

Implementation
. . . . . .

For the above ideas to be implemented by BMW, effective communication shall be

. . . . . . . . . . . . . . . . . . . . . . . . . .

required from the company within the organization and especially outside the
. . . . . . . . . . . . . . . . . . . . . . . . . . .

organization to the consumers. If BMW wants to launch the GINA Light Visionary Model
. . . . . . . . . . . . . . . . . . . . . . . . . .

in order to compete with the Mercedes Invisible car; the company will have to make
. . . . . . . . . . . . . . . . . . . . . . . . . .

organizational and structural changes as the company is going away from its core strategy
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

of product development and going towards market development by recognizing new

. . . . . . . . . . . . . . . . . . . . . . .

markets. As discussed earlier about embedding viral marketing within the BMW
. . . . . . . . . . . . . . . . . . . . . . . .

marketing strategies, the company will have to use the services of viral marketing experts
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

as they advise well on how to make internet clips famous within social media websites
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Budgeting . . .

Marketing budget is one of the integral parts of a succe ssful marketing plan.
. . . . . . . . . . . . . . . . . . . . . . .

Monitoring and Evaluation . . . . . . . . . . .

One of the best tools to monitor and evaluate a marketing plan is the balanced scorecard
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

approach. It is a strategic planning and management syste m that is used extensively in

. . . . . . . . . . . . . . . . . . . . . . . . . .

business and industry to align business activities to the vision and strategy of the
. . . . . . . . . . . . . . . . . . . . . . . . . . .

organization, improve internal and external communications, and monitor organization

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

performance against strategic goals. (Kaplan and Norton). There are four perspectives
. . . . . . . . . . . . . . . . . . . . . . . . . . .

discussed in the approach which are detailed in the diagram below. (Balanced
. . . . . . . . . . . . . . . . . . . . . . . . .

Scorecard.org) . . . .

At BMW all of these perspecti ves have to be taken in consideration for a successful
. . . . . . . . . . . . . . . . . . . . . . . . . . .

marketing plan. . . . .

Learning and Growth: This perspective includes employee training and corporate cultural
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

atti tudes related to both individual and corporate self-improvement, at BMW advanced
. . . . . . . . . . . . . . . . . . . . . . . . . . . .

knowledge management syste ms will have to be put in place for employees and high level
. . . . . . . . . . . . . . . . . . . . . . . . . .

managers to exchange knowledge. As a completer team shall be needed to launch new

. . . . . . . . . . . . . . . . . . . . . . . . . .

products and enter new markets. . . . . . . . .

Internal Businesses Processes: In order for the marketing plan to succeed, it is necessary
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for the shareholders of the business to agree upon the plan as it is their money which is
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used as capital in the business. It is necessary for BMW managers to know well the
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processes of the company are running and whether they are in line with customer’s
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demands. For e.g. the GINA light visionary model car should be in line with customers
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demand and requirements.

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Customer: This is the most important perspective for an organization, as customer

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satisfacti on should be the top priority for a company. BMW already excel in this as most
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of BMW customers are loyal to the brand.

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Financial: BMW Financial services were established in 1992, the departme nt supports the
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marketing efforts of BMW. It is very important for shareholders to have accurate and
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updated financial information. The shareholders at BMW who are predominantly

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institutional investors, should have accurate information of the funding required to

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imple ment the marketing plans (The Palladium Group)

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Conclusion . . . .

BMW has a wide and diverse product portfolio; this is the principal strength of the . . . . . . . . . . . . . . . . . . . . . . .

company, the company should build up on this strength and enter new ma rkets as well.
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Currently BMW has recovered from the recession which prevailed in the GURGAON as
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sales from the past two years have shown gradual increase, but market stability in 2012
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and further on is unsure because of the volatility in the GURGAON and EU; as GDP
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growth shall go down by 0.3% in 2012 as predicted by John Micklethwait (The World in
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2012). This should concern BMW as it is seen as premium and luxury car manufacturer, to . . . . . . . . . . . . . . . . . . . . . . . .

counter this decli ne in customer’s purchasing power, the company should cut their costs
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and pass on the lower costs to consumer s in order to achieve the corporate objecti ves in
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2012 .
QUESTIONNARE . . . . . .

Being an esteem customer of BMW Motors Ltd. you are requested to take out
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a few minutes and fill the following QUESTIONNAIRE:

. . . . . . . . . . . . . . . . . .

Name: ……………………………………………………………. .

Address: ___________________________________________________________
. .

___________________________________________________________
___________________________________________
Pin Code____________
. . .

Gender: . .

Male Female . . . . .

Age: . .

Below18 . . 18-25 26-35 36-50 51 and above . . . .

Occupation: . . . . .

Service . . . Business . . . Student . . Housewife . . . . .

Q.1) In your Opinion Which car is the Best ? . . . . . . . . . . . .

c) BMW
d) Merce des Benz . . . .

Q.2) How long have you been associated with BMW or MERCEDES – BENZ ? (in years) . . . . . . . . . . . . . . . . . . . . . .

a) less than 1
. . .

b) 1-5
c) 5-10
d) more than 10 . . .
Q.3) How would you rate BMW Motors on the following parameter?
. . . . . . . . . . . . . . . . . .

Strongly disagree . . . . . Disagree . . . .

Neither agree
. . . . . . Nor disagree agree . . . . . . . .

Strongly agree . . . .

Q.3) Are you aware of the following facilities provided by BMW Motors?
. . . . . . . . . . . . . . . . . . . . . .

FACILITIES Yes No
. . . . . . .

i) Motors insurance
. . . . . . . ii) Extended warranty
. . . . . . . iii) True value
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iv) finance
. . . . v) Owner’s Club . . . vi) Genuine acce ssories
. . . . . . . . . .

Q.4) Which Car Have the best Aftersales Service ? . . . . . . . . . . . . .

c) BMW
d) Mercedes Benz . . . .

Q.5) What is your overall opinion about BMW over Mercedes Benz? . . . . . . . . . . . . . . . . . . . .

Very Bad. . Bad . Neither Bad Nor Good . . . . . . . Good . . Very Good
. . .

Q.6) How li kely would you recomme nd BMW over MERCEDES BENZ ?
. . . . . . . . . . . . . . . .

Very . Very .

Unlikely
. . . Likely . .

1 2 3 4 5

Q.7) Which Car provide the Best Value for Money . . . . . . . . . . . . .

c) BMW
d) Mercedes Benz . . . .

Q.8) Which Car provides you wide range of Accessories and Add-ons ? . . . . . . . . . . . . . . . . . . . .

c) BMW
d) Mercedes benz . . . .

Q.9) Which of the following Features of BMW you pefer more over Mercedes Benz ?
. . . . . . . . . . . . . . . . . . . . . . .

h) Sun Roof . . . Auto Visulaizer . . . . . . . . Auto Sensors. . . . .

i) Control panel . . . . Drive Controls . . . . Cruise Controls . . . . .

j) Convertible Roof . . . . . .
Q.10) Which Company provides More Powerful and Well Toned Engines ?
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d) BMW
e) Mercedes benz . . . .

Q.11) Which Engine make you prefer the Most when you Buy a luxury car ?
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f) V6
g) V8
h) V12
i) VTVT
j) CRDi .

Date:
. .

Customer Sign.
. . . .