E-Marketing

Strategies adopted by
BMW.

BY-
ASHISH PAREEK
PGDM-IB(A.S.M.)
 CONTENT

 Company profile
 Sales report
 Product strategy
 Scenario before 2001
 Turning point -2001
 Target audience
 Present marketing strategies
COMPANY PROFILE

 BMW (Bayerische Motoron Worke Aktiengesellschaft) was founded

in 1916 and publicly traded since 1969.

 The company produces and markets a varied range of higher end

sporty cars and motorcycles.

 It also operates an aircraft engine division under the brand name of

Rolls Royce.

 The company has worldwide subsidiaries and manufacturing plants

in 13 countries namely
(Germany,Austria,UK,USA,Mexico,Brazil,SouthAfrica,Egypt,Thailan
d,Malays-ia,Indonesia,Vietnam and Philippines)
Product Split of BMW
Brand Recall
Sales figure from 1996 to 2006

Impact of INTERNET
MARKETING is
visible (30% growth)
Sales volume for 2007-2008

Fall by 8.2%
Product Offensive Strategy
FEATURES :

 In the early 2000s, BMW began to restructure its business. It focused on

strengthening its position as the market leader in the premium segment of
automobiles across the world.
 In line with this, it adopted a product offensive strategy which aimed at
flooding the automobile market with new launches (i.e. a new product
every three months).
 BMW increased its R&D expenditure by 53% to support this strategy.
 Some of the new cars launched as a part of this strategy were Mini One,
Mini Cooper, new BMW 3 Series Compact, new BMW 7 Series and Z4
Roadster.
 By 2002, BMW had overtaken Mercedes and stood second in the premium
segment of the US automobile market, next only to Lexus
THE STORY BEFORE 2001…
 Before 2001 the majority of BMW’s success is attributed to the
development of consistent marketing policy, the “market niche”
strategy.

 The company had four core values

 Technology,
 Quality,
 Performance,
 Exclusivity

 The company used advertisements as a means of marketing and

these advertisements evolved in response to economic,
environmental and competitive changes.
Promotion strategies before - 2001

Radio
Bus advertisements
Advertisement
s
TV and Print
ads

Events and
Brochures and Trade fairs.
Price lists
Turning Point - 2001

 In year 2001, they launched BMWFilms.com, “The Hire”

(a film series consisting of five different short films) has
been singled out as the first high profile, big-budget,
celebrity-laden Internet marriage of advertising and
entertainment.

 Traffic to the site was up 55% to 214,000 unique visitors

compared to only 138,000 the previous week.
(according to Web measurement, firm Nielsen/Net Ratings)
TARGET AUDIENCE :
 Average work-hard, play-hard customer was 46 years
old, with a median income of about $150,000. Two-thirds
were male, married, and had no children.

 As BMW sliced and diced its market further, an

interesting statistic surfaced: Roughly 85% of BMW
purchasers used the Internet before purchasing a BMW

 In addition to the BMW Films series the promotional

campaign consisted of TV spots that copied trailers, and
print and online advertising, which were designed to
drive consumers to the web site (Hespos, 2002).
 RESULTS :

 Never before (or since) had an automotive company taken such a

strong stance to drive consumers to the Web, and the results are
compelling. More than 10 million films have been viewed from
BMWFilms.com. Nearly 2 million people registered on the site, with
60% of those registrants opting to receive more information via e-
mail.
 An astonishing 94% of registrants recommended films to others,
seeding the viral campaign, and more than 40,000 people
voluntarily responded to a survey.
The guerilla public relations campaign

 The guerilla public relations campaign utilized several

diverse promotion tactics including seeding news of the
BMW Films at key Internet entertainment rumor sites
and a radio DJ program in 20 key metro markets.

 BMW sales increased by 12.5% compared to 2000,

surpassing the 200,000 mark for the first time in history.
BMW Car maker uses web mostly to
drive its brand.

 Car manufacturer BMW takes the phrase 'beyond the banner'

seriously. In its ads for the BMW Compact, the car drives out
of the banner ad and around the sides of the browser window,
to show how much it "loves corners".

 BMW's online strategy is highly brand-driven in the UK, with

clickthrough considered to be a side benefit.
Marketing Channels
 Internet
468x60 banners are sold on a run-of-site (ROS) basis, meaning, they will
appear on every search results page and on an equal rotating basis with
other advertisers' banners. For online ads, each advertiser is given
password-protected access to Real-Time advertising statistics,
 Television
The percentages of viewers of MSNBC and Bravo who are in BMW’s
target income bracket constitute 20.5%. The percentage of viewers in
BMW’s target age group (25-34) is 26.5%.

 Print
 DVD
RESULTS OF THE CAMPAIGN

 In 2001, BMW sales increased by 12.5% compared to

2000

 During the four month core of the promotion, the films

were viewed more than 11 million times

 Clickthrough on that Superstitial was 4.7 percent,

E-COMMERCE IN BMW
 The BMW group uses e-commerce strategies to explore the market
for effective business.

 The group sees e-commerce as both a challenge and an

opportunity for the entire company.

 The BMW Groups production network is characterised by agility, the

ability to respond quickly and flexibly within a changing framework

 The BMW group introduced an online ordering system in 1998

which gives dealers the option of showing customers their desired
car on the screen and confirming the delivery date on the spot.
 Implementation of CRM
BMW is the leader in New Zealand’s booming luxury car market, holding a 24.5
per cent market share

 Last year, New Zealanders snapped up a total of 1,600 new BMW vehicles of
all types.

 In 2002 customer database system was Unitrac contact management system

 GoldMine was a critical component of BMW’s shift from a sales orientation to

an organization-wide customer-centric focus. BMW chose GoldMine because it
offered several key benefits:
•Offer excellent value of money
•Customization to individuals requirements

 Company has single view of customer relationship increasing the company’s

ability to ensure satisfaction.

 GoldMine enables us to get a snapshot of the environment incredibly quickly

Present Marketing Strategies
 E-mail Marketing
 e-catalogue Brochure
 Registration for test-drive
 Mail alert
 Personalization message
 News alerts
 New car launches
 Used car specials
 Events
 VIP Club Info -Concerts, musicals, movies and
 related show information
 BMW accessory offers
 Customer Thank you and congratulation
 brochures
 Campaign For Its Luxury Certified “Pre-Owned. We Swear.” Program

 Excellent information.
 Major e -Marketing strategies
 Website Registration Forms:
Permission based forms allow web visitors to subscribe with automated notification
allowing confirmation of subscription and thank you messages.
 Registrations for Events and New Vehicle Test Drives:
New Vehicle promotions and Event Registrations are sent out via email, allowing
customers to easily register via online forms, advising what time and day they would like
a test drive. Brisbane BMW are notified via email lead sheets and customer registration
data is automatically compiled in a registration database making it ideal for tracking and
follow up. Registering customers also receive an auto reply advising they have been
booked in and will be contacted.
 Service Reminders and Offers:
Service reminders and special offers are emailed frequently as a cost effective and
powerful way of keeping services up to date whilst allowing customers to take advantage
of special offers.
 Sale Events Notices:
Regular sales event brochures are emailed to prospects and customers advising of great
purchasing opportunities.
 Accessory Offers:
The BMW accessory range is frequently promoted using email catalogue brochures.
 BMW Z4
BMW recently launched an email marketing
campaign for the release of the long awaited Sporty new
Z4 Convertible to a select group of customers.

The purpose of the campaign was to generate interest for

Test Drives.
The campaign design included
attractive graphics detailing the impressive
characteristics of the Z4
branded Test Drive Registration forms allowing
instant responses from interested recipients
Within 24 hours of the 1303 recipients who the brochure
was sent to, 55% read the email with 8.6% responding and
4% registering instantly for a test drive.
 Bibliography
 www.autointel.com
 www.mwerks.com
 Casestudy Brisbane BMW
 www.google.com
 www.bmw.com