BMW

BMW Films ----Group 16Amanda JonesElena Ratnikova

Mengjia Wang

Emily Walker

Songyan He

Company HistoryFounded in 1916 as an aircraft engine manufacturerProduced first automobile in 1929Luxury/performance segment by 1980s with three Series: 3, 5, 7

BMW in the USMid 1970s: niche foreign car manufacturerLate 1970s: very popular luxury brandLate 1980s: luxury car market shiftBMW as the outdated brandCompetition: Acura (1986), Lexus & Nissan (1989)1992 BMW sales fall & very low customer satisfactionInvigoration & Recovery in the USINVIGORATION:1. Introduced new models within core Series2. Aggressive pricing strategy3. Reorganization of the dealer network4. Introduction of several new SeriesModifications for North Americas marketRECOVERY:1996-2001: BMW recovered in the market2001: record level of sales: 2% US market shareBMW 5 Short FilmsAbout the film$15 million25% of their media-spending budget, major competitors spent less than 50% on media advertisingTo reach 40% increase in sale, increase share of mindOnly available online at BWMFilms.comProblemsWrong SegmentToo much budget on short filmsLuxury or Mass-marketIn case study, BMW targeted sales as high as 300,000 cars and planed to reach new sales goals of an additional 40% in the USDamage the luxury image of BMWVarious series and models or Reduce models to keep simple as Mercedes-BenzRaise quantity or price

BMW Current Customers>50

35 - 50