BMW

BY B.HARI PRASAD REDDY G.SHAILENDRA LALIT MAHAJAN NIKHILESH DHANDE PRIYAMVADA KALWADIA

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 manufacturing plants in 14 countries namely (Germany,Austria,UK,USA,Mexico,India,Brazil,S outhAfrica,Egypt,Thailand,Malaysia,Indonesia,Vietnam and Philippines)

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Dr. Norbert Reithofer is a businessman and current CEO of BMW AG as well as Chairman of the Board of Management. 1923- first motorcycle BMW R32was produced. 1928- first car the Dixi 3/15 was produced. 2007- BMW India made an initial investment of US$22.31 million in its factory in Chennai, Tamil Nadu. 2011- 1st car produced in India.

BMW R32

Dixi 3/15

History

After World War I, the company faced problems due to the severe restrictions that were placed on the aircraft construction business in the country. BMW then decided to move into the production of motorcycles and passenger cars. The company undertook a series of acquisitions and joint ventures with various motorcycle and car companies. In the early 1920s, when the government eased the restrictions, on the business, BMW once again entered the aircraft construction business. However, the company continued to focus on the automobile

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BMW's reputation as a company manufacturing elegant, prestigious and superior performance automobiles began to spread outside Germany as well. Until the 1950s, BMW concentrated only on a limited number of models. The focus then was more on expanding operations to other parts of Europe, outside Germany. In the late 1950s, despite BMW's sustained efforts to emerge as a manufacturer of prestigious vehicles, the company came to the brink of bankruptcy on account of the decline in the motorcycle market.

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The company soon faced a takeover bid from Mercedes. With the help of an industrial financier, Herbert Quandt ,BMW was able to thwart this takeover bid. Quandt acquired a majority of BMW's shares and initiated a restructuring exercise to bring the company back on track. The success of BMW 700, a small car, launched in 1959, came as the much-needed boost to the company. The company began to consolidate its position in the market, with a focused marketing strategy.

BMW 700

Strategy

BMW gains most of its sales in the last couple years of a product, while most products begin to decline. BMW doesnt use skimming strategy because its uses a more prestige pricing strategy to find its target market. Marketing Strategies: 3 Series, the strategy to be used in this model is the S.T.P(segmentation, targeting and positioning) to find out what my target market is. This may use multicultural marketing to target more Asian countries and try to expand the

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For X5 a skimming/penetration strategy and offer discounts and rebates until the price settle to equilibrium. This would work because it would cover allot of the costs of research and make the customer think their getting a bargain. Also would use brand personality to make the X5 seem like a sophisticated with extraordinary offroad capabilities.

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This would make the car seem more exciting and put BMW the term ultimate driving machine, synonymous with each other. In line with this, BMW 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.

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The company used advertisements as a means of marketing. 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)

BMW 3 Series 1987s 2011s

BMW X5

Uniqueness

BMW has never compromised on its product quality and engineering superiority has delivered the promise that people have expected from this brand: Power, Performance and Luxury. BMW's business strategy has been perfectly aligned to its overall brand strategy, and that's what makes them so successful. BMW has always designed and built cars with much greater responsiveness to a drivers actions, providing a better sense of the road beneath and offering greatly enhanced control.

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BMWs tighter feel and enhanced responsiveness gave drivers the sense they were in complete control, something no other brand of automobile offered. This handling advantage was greatly appreciated by sports car aficionados and car enthusiasts.

Growth
Obviously the BMW board felt that it had to grow in size and widen its appeal to survive as a independent producer of quality cars Its 3 and 5 series car were selling very well. There were new models in the offing (MX5, Z3, Z8, new 3 Series) After implementing the strategies the number of units delivered to the customers increased from 905k on 2001 to 1.3million units by 2006 end.

5 series

MX5

Z3

Z8

BMWs sales figures

1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 Vehicals delivared

Results

By 2002, BMW had made innovation an integral part of its product development process. The company had significantly decreased the 'time-tomarket' new products and linked its revenues to the introduction of leading-edge products. 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.

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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.

BMW 7 Series

Z4 Roadster

Thank You