BMW Presentation Example1111

7/27/2019 BMW Presentation Example1111

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Films


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Company Background

BMW = Bavarian Motor Works

Founded in 1916

Originally an aircraft engine manufacturerProduced first automobile in 1929

By the 1980s, established itself in the

luxury/ performance segment of theglobal automotive market


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Product Line

3 Series Entry Level Sedan

$25K to $40K

5 Series Mid-range Sedan

$37K to $44K

7 Series Flagship Sedan

$54K to $70K


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The BMW Customer

Average BMW Customer Profile:

Approx. 46 years old

Median income = $150K

Well-educated Married and no children

2/3 were male

Technology is important

Very loyal to the BMW brand

Driving is a form of personal ex

pression

Work hard and play hard!


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BMW Films

In 2000, BMW had a unique window ofopportunity

Sales were highest ever in the U.S.

Brand has never been stronger

No new products being launched over next 6months


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BMW Films

Non traditional approach Previous success with product in films

Unique opportunity to sell brand and not cars

Advertising campaign to incorporate theInternet to produce a series short films:http://www.youtube.com/watch?v=oGVLuu-P4KU&mode=related&search=

Over 9 million hitsComprised of 5 films

Over 2 Million visitors registered
http://www.youtube.com/watch?v=oGVLuu-P4KU&mode=related&searchhttp://www.youtube.com/watch?v=oGVLuu-P4KU&mode=related&searchhttp://www.youtube.com/watch?v=oGVLuu-P4KU&mode=related&searchhttp://www.youtube.com/watch?v=oGVLuu-P4KU&mode=related&searchhttp://www.youtube.com/watch?v=oGVLuu-P4KU&mode=related&search


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Problem IdentificationHow to increase sales in

the U.S. 40% (which wouldrepresent a 2% marketshare) over the nextseveral years to 300,000cars per year.


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Question 1

What are some of the concernsabout future customer acquisitions?

BMW is more of afashion brand.BMW is position as a

vehicle for self-expressionBMW success is may beinherently cyclical.Challenge of marketing

to a generation ofconsumers (or moreprecisely, whoseparents generation)own and drive BMWs


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Question 2What are some of the issues that

must be addressed in order to successfullymarket to the prospective future customer?

Establishing BMW as an aspirationalbrand among young drivers (GenerationY) is difficult because these prospectivefuture customers are:

Jaded, cynical, and suspicious of marketing

Inundated with marketingHard to reach through traditional marketingchannels

Unpredictable with their tastes


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Question 3What is the concern about managing

the retention and acquisition of customers at the

high-luxury end?

The challenge is to figure out how to

aggressively build aspirational mindshareamong younger drivers without offendingmore conservative older and the mostprofitable customer segmentpremiumcustomers who currently own (or areconsidering ownership of) high-marginBMW models.


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Question 4

What are some of the issues thatBMW has with managing growth?

BMW future growth strategy is focused onachieving greater market share in every sub-segment of the luxury car market by:

Providing luxury buyers of all types, fromthe entry-level young professional to the 65year old chief executive many alternatives.Protecting and building BMWsluxury/performance brand cache as pricingpoints creep lower.Maximizing the effectiveness of themarketing dollar as the number of brandsincrease since competitors have biggermarketing budgets


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RecommendationsTo focus on long-term strategic objectives rather thanpush a particular model or series:

To avoid a future sales dip in a trend/fashion-driven salescycle. This involves achieving aspirational mindshare amongthe elusive young driver segment, even if only in the marketshort-term for a luxury car.To avoid alienating or offending older luxury customers whileengaged in this campaign to aggressively pursue the youthtarget market.

To reinforce BMWs prestige/performance brand cache in thecontext of a product line that is rapidly expanding.To expand and develop the marketing competenciesnecessary to compete effectively against players with biggermarketing budgets.


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Rationale for RecommendationsBy focusing on every sub-segment of the luxury carmarket rather than to pursue every segment of theautomobile market, BMW has a more concentratedstrategy

Achieving aspirational mindshare among the youngdriver segment will obtain the customers for the future.Avoiding alienation and/or offending older luxurycustomers while pursuing the younger target retainsthese very profitable customers.

Reinforcing BMWs prestige/performance brand cachewhile expanding the product line avoids deterioration ofbrand equity.In order to be successful, BMW must develop ways toefficiently market its brand to compete effectively

against players with bigger marketing budgets.


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Films

Questions?

BMW Presentation Example1111

Documents

Transcript of BMW Presentation Example1111