Analysis by Claudia Berrevoets Tim Hindriks Gerard Keetman Vishal Paltie

Marketing Communication Analysis

Presentation by Tim Hindriks Vishal Paltie

Introduction

External analysis Internal analysis Conclusion for Dutch Market

Dutch EV Market History

Consumer analysis BMW i

Competition and position Communication MIX

Competitor 1 Target group

Competitor 2

Index

Its innovative LifeDrive architecture

renders the BMW i3 Concept light,

safe, spacious and dynamic.

Sustainable Urban Mobility

The BMW i3 Concept is an

uncompromisingly sustainable

vehicle designed for urban areas.

Driven purely by electric power and

purpose-built to meet the

demands of sustainable and

emission-free mobility. It

embodies an intelligent form of

urban transportation and

commuting.

BMW Connected drive

BMW Connected Drive connects

you and the car to the rest of the

world and makes your journey

convenient, safe and relaxed.

Introduction

The BMW i3 is the new electric mega city car from BMW. They are the first premium car

manufacturer to enter B segment with a premium electric city car.

Technicalities

Innovative use of materials and

intelligent lightweight design, moreover,

not only enable the i3 to travel long

distances (160 km) on a single charge,

they also provide superb safety in the

event of a collision and help give the car

its excellent driving dynamics. The

electric motor over the rear axle – which

generates output of 170 hp and

impressive torque of 250 Nm from a

standstill – and a small turning circle

combine to deliver agile driving

characteristics. The BMW i3

accelerates from 0 to 100 km/h in less

than eight seconds.

DESTEP Trends

Demographic

• The population is aging.

Economic

• The elderly are the most wealthy.

Social and Ecological

• A sustainable lifestyle is

becoming a trend.

Technological

• Product development makes

electric driving more attractive.

Political

• Government promotes EV’s with

incentives like TAX reductions.

The Dutch EV Market

EV market 2012

• Market volume 1.750

• 0,02% of total Dutch fleet

• Market value € 61,2 million

• 2.500 charging stations

Expectance EV market 2020

• Market volume 200.000

• 2,5% of total Dutch fleet

• Market value € 7 billion

• 10.000 charging stations

Automotive media spending

Gross media spending 2011

• 16,5% growth in 2011

• Top 3 media spenders in 2011:

1. BMW € 315 million

2. Volkswagen € 232 million

3. Seat € 226 million

The Dutch EV Market

The Dutch EV Market is growing, and is leading in Europe due to good infrastructure, low

average travelling distances and Government incentives.

Potential customer groups for the Premium B segment are well educated and

have 1 – 3 times model income.

Families

1.2 million households

Men and women

Aged 30-50

In a relationship

With one child ore more

Higher education level

1 - 2 x modal household income

Financially heavily burdened

None to some savings

Mostly sub-urban

Young professionals

400.000 households

Young men and women

Aged 20-40

Single or in a relationship

Without children

Higher education level

1 – 2,5 x modal household income

Financially medium/high

burdened

None to some savings

Mostly urban

Elderly people

800.000 households

Older men and women

Aged 50-70

In a relationship

With or without (grand) children

Higher education level

1,5 - 3 x modal household income

Financially low/medium burdened

High savings

Mostly sub-urban

Potential Customer Analysis

Knowledge & Attitude

Elderly people have the most sustainable attitude towards cars.

Young professionals

Knowledge

Young people know that there will

be a shortage of fossil fuel.

They also know that there is an

alternative like driving electrics,

hybrids or using public transport.

Attitude

Status, design and technology

driven. Specifications, social

approval and brand are important.

They are less interested in the

price because the majority leases

a car.

Families

Knowledge

Families also know that sustainability is

becoming more important, but they don’t

always have de financial strength to live

up to that.

Attitude

Safety, space and price driven. Safety

and space are important because of the

children. Are less open to new products

and techniques.

Elderly people

Knowledge

Elderly people live more sustainable

because they know that fossil fuel is

running out and know the effects of

pollution.

Attitude

Sustainable, safety, comfort and quality

driven. Less pollution means a better

environment for their grand children.

And the interest for new techniques is

growing.

Behavior

Young professionals

Behavior

61% owns one car or more

9% owns two cars or more

56% buys or leases new

20% is from segment B

Most of the time new cars are

bought or ordered through a lease

company and information is

gathered through car brand - and

lease company websites and

social media. They don’t

necessarily need to experience the

car before buying. Cars are mainly

used for work and long

distances. The decision is based

on status and social approval.

Families

Behavior

85% owns one car or more

79% owns two cars or more

38% buys or leases new

23% of second cars are from

segment B

They buy their second car mostly

second hand and with the complete

family. Information and orientation

happens through supply-driven

internet car websites and social

media. The family wants to experience

the car before it is bought.

The cars are for daily family use. The

decision is rational based.

Elderly people

Behavior

89% owns one car or more

72% owns two cars or more

76% buys or leases new

52% of second cars are from

segment B

Information is gathered through

car brand websites, internet blogs,

magazines and dealerships and

seniors want to experience a car

before buying.

Cars are bought or ordered at the

dealer. Cars are used for short

distances. Decisions are more rational

then emotional based and the

environment is taken into account.

Competition Analysis

The BMW brand is positioned as a premium brand. For now BMW i is the only premium

brand with an EV in the B segment.

Cheap

High Quality

Low Quality

Expensive

The Audi A1 is the only competitor in premium B segment.

Audi A1

The Audi A1 is positioned as a premium car in the B segment. On

that basis the A1 is a competitor of the BMW i3. With the

communication “The big thing” Audi is trying to reach young urban

buyers in the big city's.

The agile, sporty Audi is perfect for use in big cities owing to its

compact dimensions and its excellent fuel economy. Its wide range

of customization options helps its young, urban target group in

particular to express their own personal style.

Communication of Audi

• Website

• Magazine

• TV commercial

• Youtube

• Display

• Poster

• Leaflets

• Facebook page

• Twitter

• Apple app

• brochure

Electric Competitor Nissan Leaf

The Nissan Leaf is an electric competitor within the city.

The coming introduction of the Nissan LEAF marks a major milestone

for the future of personal urban driving. Since the introduction in May

2011 it was the only true green vehicle on the Market.

Target group Nissan Leaf is targeting on the family. The buyer of a Leaf has a

modal income and is at least 45 years old. He is intrested in technique

and is well educated. He owns his own home and drives short

distance every day.

Communication of Nissan

• Website

• Magazine

• TV commercial

• Youtube

• Display

• Poster

• Leaflets

• Free taxi

• Testdrive

• Facebook page

• Twitter

• Apple app

• Brochure

History BMW electric cars

A dedication to the development of sustainable mobility for more than 40 years has led to a steady series of successes.

1969: It started with the BMW

1602 used during the Olympics in

Munich.

1991: The experimental BMW E1

was used to explore the benefits

and disadvantages of the

electric drive in practice.

2004: The Lithium-ion battery solved

the age-old issues of cycle stability

and load resistance.

2009: With the MINI E Project BMW

Group is currently running one of the

largest customer field trials of

electric vehicles.

2011 : BMW Active E started to gain

more feedback on what customers

want from electric vehicles and to test

an early version of the BMW i3

powertrain.

2013: BMW i3 and i8 can be bought.

Imaging BMW

BMW is rated number 23 in the Millward

Brown top 100 and 12 in the Interbrand

top100 of most valuable global brands.

BMW is known as a brand for older

people (30-50 years old).

BMW is known as a man’s car.

BMW is most associated with social

approval and self respect.

Imaging BMW + i

BMW i is seen as the of tomorrow.

sustainable premium electric car

brand

BMW is World leader for

sustainability in the premium

segment.

BMW incorporated the Efficient

Dynamics Development Strategy

into the brand values.

The BMW i Production is High

Technology driven and

sustainable throughout the

complete production chain, with

use of light weight carbon,

aluminum and renewable raw

materials .

Global MC MIX

www.bmw-i.com

BMW i. app.

Facebook and Twitter

BMW i Ventures / collaborations

Youtube

Innovative technology, new media

and community festivals and

exhibitions in big cities.

First BMW i store in London.

International Car shows.

Innovative web and app. platforms.

BMW i electric tour, one year

seven cities (none in The

Netherlands).

BMW i

Mission:

BMW i develops visionary vehicles and technologies for the mobility of tomorrow.

YUP’s and DINKies

Relatively young successful

professional men and women

Aged 28-50

Single or in a relationship

No children

High educated

2 x model income

Financial medium burdened

Savings

Working and living in the mega

cities of tomorrow

Sportive

Behavior New cars are bought or ordered

through a lease company and

information is gathered through

car brand - and lease company

websites and social media. They

don’t necessarily need to experience

the car before buying. Cars are

mainly used for work and short

distances. The decision is based on

status and social approval.

BMW Target group profile global

BMW i focuses at Global YUP’s and DINKies living in the mega cities of tomorrow.

Knowledge They know that there will be a

shortage of fossil fuel and they also

know that there is an alternative

like driving hybrids, EV’s or using

public transport.

Attitude Status, design, social approval

and technology driven.

Specifications, connectivity and

brand are important. They are less

interested in the price.

Globally, YES. Dutch, NO.

Globally the target group of BMW i

for the i3 is a clear choose. And

their marketing communication fills

the need of the targeted group

completely.

But in The Netherlands it’s and

other ballgame.

We don’t have mega cities, our

nationwide infrastructure is

smaller which gives other

opportunities and distance

travelled by the targeted group

is different.

The more interesting group here is

the elderly group.

Questions?

Conclusion for the Dutch market

The wealthy Dutch elderly fit the profile!

Why the wealthy elderly?

They know that there will be a shortage of

fossil fuel know what pollution does to the

environment. They are willing to invest in

their personal life to make it more

sustainable, not directly for themselves

but even more for their children and

grand children.

They really want to make that effort!

They are the most wealthiest group with

the lowest expenses. And the group is

growing in the coming years.

They are the biggest group that buys new

cars and buy the most segment B cars.