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BMW

The Ultimate Driving
Machine !!

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Contents

•Introduction and History
•Mergers And Acquisition
•Management Strategy Followed By BMW
•STP
•Facts and Figures
•Channels Of Advertisement
•Reactions to ad campaign
•Suggestions and Conclusion

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Introduction

• BMW WAS ONE OF THE ASTOUNDING COMPANY
IN THE WORLD.
• THE WORD ‘DRIVING’ EPITOMISES BMW’s WORTH
• YUPPIE SIGNIFIES “YOUNG URBAN
PROFESSIONAL”
• BMW PROMOTING ITSELF AS COMPANY OF IDEAS
–WASN’T INITIALLY SUCCESSFUL.
• BRAND IMAGE FAILURE IN THE US MARKET.

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History

• Founded in 1913 by Karl Fredrich Rapp.
• Initially manufactured aircraft engine in Munich.
• In 1916,First World War, BMW manufactured aircraft engines for Hungarian Army.
• In 1918,taken over by Franz Joseph Pope , name changed to BMW-AG.
• In 1919,after ban on manufacturing aircraft engine, started with manufacturing
railway brakes.
• In 1923, it launched its first bike model R3-500cc shaft driven motorcycle.
• In 1928, manufactured car engine based on Austin Seven car license.
• It also acquired DIXI Co.
• During World War-II ,its plants were destroyed.BMW again started production of car
engine, which is today globally renowned.

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Mergers And Acquisitions
• In 1928,BMW took over the comapany ‘DIXI’ which is
also the very first car they launched.
• In 1994, BMW acquired MG Rover + gained ownership
of successful brands like MINI, Land rover, TRUMPH,
Range Rover.
• In 2000,BMW sold MG Rover to Pheonix Co. for a token
of $10.
• In the same year, it sold Land Rover + Range Rover
brands to D Co.
• In early 2002 Volkswagen brought Rolls Royce
outbidding for BMW
• In 2003 BMW acquired rights over rolls royce

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Marketing Strategy The Corporate Marketing Strategy must aim to create and retain a satisfied customer and this is only possible when the firms add values for the customers. the firm gets a premium in the form of profit . Not only this the customer should also perceive this value to be distinct from the competitors product. When this happens.

• New tagline attacked corporate convention and compromise. .IDENTIFYING THE ISSUE: • The change in the add campaign from “The Ultimate Driving Machine ” to “The Company Of Ideas” arouse a question “will it be able to reach the creative class along with retain the yuppies group along with the retaining the creative class?” • Dropping a 33 year old successful tagline. STRATEGY 1.

T:Threat- •New add placed little emphasis on performance a sharp departure from earlier adds. 2. •It could add additional economic function transfer to creative class function.STUDYING THE MARKET ENVIRONMENT: By making a SWOT analysis of BMW: 1.S market share which was just at 2. •Prompted criticism for dropping a successful strategy for 33 . 4. •Opportunity to increase the U.S:Strength- •The brand itself “BMW” •Favorites among “YUPPIES” •Synonym to performance and driving. 3.5%. W:Weakness- •Seen only as a performance based sports car.O:Opportuniy- •The growing number of creative class[38 million]. •Couldn’t attract a wider market beyond yuppies.

. • Difficult to retain existing loyalists.ANALYSING THE ISSUE: • Difficult to make impact among the creative class who wanted brands which stood for larger values. • A change or a sudden shift from a successful strategy may not work especially when it was brands strength for 33 years.3. • Leesened emphasis on performance.

4.PLANNING: • How to determine the needs of the customers? • How to expand their market? • What should be made to attract the growing creative class? • How to campaign their new idea “THE COMPANY OF IDEAS”? .

and sports]. travel. • Adds sent across message that differentiated BMW from other companies which destroyed creative and radical ideas. websites like www. lifestyle publications[focusing on art.gawker. . that were frequently visited by the creative class. 5.com. • Promoted their add through television. www. design. and also by showing its environmental sentivity.IMPLEMENTATION: • Changed their add agency from “FALLON WORLDWIDE” TO “GSDM” to create their new add. • Showcase the company’s design prowess and independence. print adds. luxury.com.thegothamist.

6. • Had come a long way since 1980’s.CONTROL: • By analyzing the consumers reaction to the new add and then taking corrective action. therefore BMW had the confidence to tackle the critics who said it was creating confusion among consumers and was insecure and threatened by competition. • Took measures to maintain the originality of the ad campaign. .

STP Segmentation : Viewing heterogeneous market as a group of small homogenous market It is one of the basic element in marketing strategy It also helps in focusing corporate resources more sharply on customers .

Professional Sector Engineers. Class Upper middle Creative Class economic class Taste and Performance Creativity and Preference Driven Cars Individuality .30 40s Occupation Hold Jobs in They are Musicians. Entrepreneurs. Segmentation Basis of Before 2005 After 2005 Classification Age In early 30s to mid 20 .

Targeting After the market has been separated into its segments. the marketer will select a segment or series of segments and 'target' it Earlier Targeted Customers “Young Urban Professional” Present Targeted Customers “Creative Class” .

BMW Advertisement “No” to Compromise “Yes” to innovative idea “Not Taking risk is risky” . Positioning It is creating place in the minds of the customers and making them remember our brand in the way we want them to remember it.

BMW Vision .

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they enhance the product and make it attractive to the customers. Marketing Mix • It Involves a deliberate and careful choice of organization. promotion and places and strategies & polices. product. price. . Each of them is important. but when all the 4 elements of marketing are properly selected and mixed in the right proportion .

Product 7 Series Sedan .

BMW 745 Hydrogen Car .

Price BMW had fixed prices for various customers of creative class through which it could be in the shopping list of the customer who did not think BMW was an economical option Place • BMW had it first overseas plant set up in South Africa • In 1980 it had increased export to US. Asia and Australia • It became the first European car to set up a subsidiary in Japan • In 2004 BMW became had outsold Mercedes – Benz .

outdoor billboard and the internet. television.Promotion BMW came up a new ad campaign which promoted BMW “Company Of Ideas”. magazines. The ad campaign was unveiled through various media such as newspaper. . It aimed to communicate BMW’s independence and freedom to pursue innovative ideas.

25 . Facts and figure  BMW released a new Tagline “Company of ideas” in 2006  This move took many by surprise  2005 had been good year for BMW with successful tagline then question arises what was the need for changing successful tagline.

(less 2% market share) sports sedans • Acquired MG Rover US citizens were not considering as a luxury vehicle. Sky is not the Unique Selling Proposition limit • Started with manufacturing aircraft engine • 328 roadster “Car of the Century” • BMW 700 and 1500 gained reputation as a manufacturer of Company wanted to increase its growth in US market. US • people Joint venture were with Rolls-Royce Motors looking for large brand value. .

Facts And Figures Production Curve 27 .

Net Profit from 2001-05 28 .

Production Curve 2005-09 29 .

Net Profit from 2005-09 30 .

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 Its tagline “The Ultimate Driving Machine” signifies the emphasis on its high performance feature like horsepower. unconventional and different from regular automotive advertising campaign.  The print ads were. AD CAMPAIGN  BMW independence and freedom to pursue innovative ideas. 32 .they aren’t hindered by idea killing bureaucracy.  The new ad campaign promoted BMW as “The Company Of Ideas” .  With a passion and inspiration. as it was neither owned by nor part of a division of another company.

• The achievements – based on inspiration .• There ads were all text pieces . • BMW autonomy and commitment to protect great ideas. that fostered creative. innovation . • Ads projected BMW as a company . featuring simple but bold copy. and creativity. 33 .

• BMW also showcased its environmental sensitivity through one ad that hailed one of its models. • The message – BMW was not like other companies that destroyed creative and radical ideas. Ways of Promotions • Placing the ads in lifestyle publications. 34 . • Posting ads on websites .creative class.

Print Ads 35 .

Print Ads • “NO” • “MATCH” • “AIRBAGS” • “RISKY” 36 .

TV Ads • “OVERTHINKERS” • “EUPHEMISMS” • “BENEDICT ARNOLD” • “ENEMY OF IDEAS” 37 .

Defining Innovation 38 .

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40 . • Preventive Maintenance . but some were disappointed with the ads. Reaction To Campaign • Analyst were struck by the originality of ad campaign.A technique to expand its customer base.

Competitor Bashing 41 .

Competitors • Mercedes • Lexus • Cadillac 42 .

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Ultimate Driving Machine 44 .

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Ideas Are Everything 47 .

Suggestions 48 .

Conclusion 49 .

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