Post on 09-Apr-2018
8/8/2019 Final BMW Slides1
1/50
BMW
The Ultimate Driving
Machine !!
1
8/8/2019 Final BMW Slides1
2/50
Contents
Introduction and History
Mergers And Acquisition
Management Strategy Followed By BMW
STPFacts and Figures
Channels Of Advertisement
Reactions to ad campaign
Suggestions and Conclusion
2
8/8/2019 Final BMW Slides1
3/50
Introduction
BMW WAS ONE OF THE ASTOUNDING COMPANYIN THE WORLD.
THE WORD DRIVING EPITOMISES BMWs WORTH
YUPPIE SIGNIFIES YOUNG URBAN
PROFESSIONAL BMW PROMOTING ITSELF AS COMPANY OF IDEAS
WASNT INITIALLY SUCCESSFUL.
BRAND IMAGE FAILURE IN THE US MARKET.
3
8/8/2019 Final BMW Slides1
4/50
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 manufacturingrailway 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 carengine, which is today globally renowned.
4
8/8/2019 Final BMW Slides1
5/50
Mergers And Acquisitions
In 1928,BMW took over the comapany DIXI which isalso the very first car they launched.
In 1994, BMW acquired MG Rover + gained ownershipof successful brands like MINI, Land rover, TRUMPH,Range Rover.
In 2000,BMW sold MG Rover to Pheonix Co. for a tokenof $10.
In the same year, it sold Land Rover + Range Roverbrands to D Co.
In early 2002 Volkswagen brought Rolls Royce
outbidding for BMW
In 2003 BMW acquired rights over rolls royce
5
8/8/2019 Final BMW Slides1
6/50
Marketing Strategy
The Corporate Marketing Strategy must aimto create and retain a satisfiedcustomer and this is only possible when
the firms add values for the customers.Not only this the customer should also
perceive this value to be distinct from thecompetitors product. When this happens,the firm gets a premium in the form ofprofit
8/8/2019 Final BMW Slides1
7/50
STRATEGY1.IDENTIFYING THE ISSUE: The change in the add campaign from
The Ultimate Driving Machine to TheCompany Of Ideas arouse a question will itbe able to reach the creative class along withretain the yuppies group along with theretaining the creative class?
Dropping a 33 year old successful tagline.
New tagline attacked corporate conventionand compromise.
8/8/2019 Final BMW Slides1
8/50
STUDYING THE MARKET
ENVIRONMENT:By making a SWOT analysis of BMW:
1.S:Strength-The brand itself BMWFavorites among YUPPIESSynonym to performance and driving.
2. W:Weakness-Seen only as a performance based sports car.Couldnt attract a wider market beyond yuppies.
3.O:Opportuniy-The growing number of creative class[38 million].It could add additional economic function transfer to
creative class function.Opportunity to increase the U.S market share which was
just at 2.5%.
4.T:Threat-New add placed little emphasis on performance a sharp
departure from earlier adds.Prompted criticism for dropping a successful strategy for 33
8/8/2019 Final BMW Slides1
9/50
3.ANALYSING THE ISSUE:
Difficult to make impact among thecreative class who wanted brands whichstood for larger values.
A change or a sudden shift from asuccessful strategy may not workespecially when it was brands strength for33 years.
Difficult to retain existing loyalists.
Leesened emphasis on performance.
8/8/2019 Final BMW Slides1
10/50
4.PLANNING:
How to determine the needs of thecustomers?
How to expand their market?
What should be made to attract thegrowing creative class?
How to campaign their new ideaTHE COMPANY OF IDEAS?
8/8/2019 Final BMW Slides1
11/50
5.IMPLEMENTATION:
Changed their add agency from FALLON WORLDWIDETO GSDM to create their new add.
Showcase the companys design prowess andindependence.
Promoted their add through television, print adds,
lifestyle publications[focusing on art, design, travel,luxury, and sports], websites likewww.thegothamist.com, www.gawker.com, that werefrequently visited by the creative class, and also byshowing its environmental sentivity.
Adds sent across message that differentiated BMW fromother companies which destroyed creative and radicalideas.
http://www.thegothamist.com/http://www.gawker.com/http://www.gawker.com/http://www.thegothamist.com/8/8/2019 Final BMW Slides1
12/50
6.CONTROL:
By analyzing the consumers reaction to thenew add and then taking corrective action.
Had come a long way since 1980s,therefore BMW had the confidence to tacklethe critics who said it was creatingconfusion among consumers and wasinsecure and threatened by competition.
Took measures to maintain the originality ofthe ad campaign.
8/8/2019 Final BMW Slides1
13/50
S T P
Segmentation :
Viewing heterogeneous market as agroup of small homogenous market
It is one of the basic element inmarketing strategy
It also helps in focusing corporateresources more sharply on customers
8/8/2019 Final BMW Slides1
14/50
SegmentationBasis ofClassification
Before 2005 After 2005
Age In early 30s to mid
40s
20 - 30
Occupation Hold Jobs inProfessional Sector
They are Musicians,Engineers,
Entrepreneurs.
Class Upper middleeconomic class
Creative Class
Taste andPreference
PerformanceDriven Cars
Creativity andIndividuality
8/8/2019 Final BMW Slides1
15/50
Targeting
After the market has been separated into itssegments, the marketer will select a segmentor series of segments and 'target' it
Earlier Targeted Customers
Young Urban Professional
Present Targeted Customers
Creative Class
8/8/2019 Final BMW Slides1
16/50
Positioning
It is creating place in the minds of thecustomers and making themremember our brand in the way we
want them to remember it.
BMW Advertisement
No to Compromise
Yes to innovative idea
Not Taking risk is risky
8/8/2019 Final BMW Slides1
17/50
BMW Vision
8/8/2019 Final BMW Slides1
18/50
8/8/2019 Final BMW Slides1
19/50
8/8/2019 Final BMW Slides1
20/50
Marketing Mix
It Involves a deliberate and careful choiceof organization, product, price,promotion and places and strategies &
polices. Each of them is important, butwhen all the 4 elements of marketing areproperly selected and mixed in the rightproportion ,they enhance the product and
make it attractive to the customers.
8/8/2019 Final BMW Slides1
21/50
Product7 Series Sedan
8/8/2019 Final BMW Slides1
22/50
BMW 745 Hydrogen Car
8/8/2019 Final BMW Slides1
23/50
PriceBMW had fixed prices for various customers of creative
class through which it could be in the shopping list ofthe customer who did not think BMW was aneconomical option
Place BMW had it first overseas plant set up in South Africa
In 1980 it had increased export to US, Asia andAustralia
It became the first European car to set up a subsidiaryin Japan
In 2004 BMW became had outsold Mercedes Benz
8/8/2019 Final BMW Slides1
24/50
Promotion
BMW came up a new ad campaign whichpromoted BMW Company Of Ideas.
It aimed to communicate BMWs independenceand freedom to pursue innovative ideas.
The ad campaign was unveiled through variousmedia such as newspaper, magazines,television, outdoor billboard and the internet.
8/8/2019 Final BMW Slides1
25/50
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 successfultagline.
25
8/8/2019 Final BMW Slides1
26/50
Unique Selling Proposition
Started with manufacturing aircraftengine
328 roadster Car of the Century
BMW 700 and 1500 gainedreputation as a manufacturer ofsports sedans
Acquired MG Rover
Joint venture with Rolls-Royce Motors
Sky is not thelimit
Company wanted to increase its
growth in US market.(less 2% market
share)
US citizens were not considering as
a luxury vehicle.
US people were looking for large
brand value.
8/8/2019 Final BMW Slides1
27/50
Facts And FiguresProduction Curve
27
8/8/2019 Final BMW Slides1
28/50
Net Profit from 2001-05
28
8/8/2019 Final BMW Slides1
29/50
Production Curve 2005-09
29
8/8/2019 Final BMW Slides1
30/50
Net Profit from 2005-09
30
8/8/2019 Final BMW Slides1
31/50
31
8/8/2019 Final BMW Slides1
32/50
AD CAMPAIGN
BMW independence and freedom to pursue innovativeideas, as it was neither owned by nor part of a division ofanother company.
Its tagline The Ultimate Driving Machine signifies the
emphasis on its high performance feature likehorsepower.
The new ad campaign promoted BMW as The CompanyOf Ideas .
With a passion and inspiration- they arent hindered by
idea killing bureaucracy. The print ads were, unconventional and different from
regular automotive advertising campaign.
32
8/8/2019 Final BMW Slides1
33/50
There ads were all text pieces , featuring simple
but bold copy. BMW autonomy and commitment to protect great
ideas.
Ads projected BMW as a company , that fostered
creative. The achievements based on inspiration ,
innovation , and creativity.
33
8/8/2019 Final BMW Slides1
34/50
Ways of Promotions
Placing the ads in lifestyle publications.
Posting ads on websites - creative class.
BMW also showcased its environmental sensitivitythrough one ad that hailed one of its models.
The message BMW was not like othercompanies that destroyed creative and radicalideas.
34
8/8/2019 Final BMW Slides1
35/50
Print Ads
35
8/8/2019 Final BMW Slides1
36/50
Print Ads
NO
MATCH
AIRBAGS RISKY
36
8/8/2019 Final BMW Slides1
37/50
TV Ads
OVERTHINKERS
EUPHEMISMS
BENEDICT ARNOLD ENEMY OF IDEAS
37
8/8/2019 Final BMW Slides1
38/50
38
Defining Innovation
8/8/2019 Final BMW Slides1
39/50
39
8/8/2019 Final BMW Slides1
40/50
Reaction To Campaign
Analyst were struck by the originalityof ad campaign, but some weredisappointed with the ads.
Preventive Maintenance - Atechnique to expand its customerbase.
40
8/8/2019 Final BMW Slides1
41/50
Competitor Bashing
41
8/8/2019 Final BMW Slides1
42/50
8/8/2019 Final BMW Slides1
43/50
8/8/2019 Final BMW Slides1
44/50
Ultimate Driving Machine
44
8/8/2019 Final BMW Slides1
45/50
45
8/8/2019 Final BMW Slides1
46/50
46
8/8/2019 Final BMW Slides1
47/50
Ideas Are Everything
47
8/8/2019 Final BMW Slides1
48/50
8/8/2019 Final BMW Slides1
49/50
Conclusion
49
8/8/2019 Final BMW Slides1
50/50