BMW PRO

Marketing Activities Of BMW

INTRODUCTION

The BMW Group is a manufacturer of luxury automobiles and motorcycles. It has 24

production facilities spread over thirteen countries and the company’s products are sold in

more than 140 countries. BMW Group owns three brands namely BMW, MINI and Rolls-

Royce.

This project contains detailed information about the marketing and promotional activities of

BMW. It contains the history of BMW, its evolution after the world war and its growth as

one of the leading automobile brands. This project also contains the information about the

growth of BMW as a brand in India and its awards and recognitions that it received in India

and how it became the market leader.

This project also contains the launch of the mini cooper showroom in India and also the

information about the establishment of the first Aston martin showroom in India, both owned

by infinity cars. It contains information about infinity cars as a BMW dealership and the

success stories of the owners.

Apart from this, information about the major events and activities are also mentioned in the

project, the 3 series launch which was a major event has also been covered in the project. The

two project reports that I had prepared for the company are also a part of this project, The

referral program project which is an innovative marketing technique to get more customers

is a part of this project and the other project report is about the competitor analysis which

contains the marketing and promotional activities of the competitors of BMW like Audi,

Mercedes and JLR

About BMW

BMW (Bavarian Motor Works) is a German automobile, motorcycle and engine

manufacturing company founded in 1917. BMW is headquartered in Munich, Bavaria,

Germany. It also owns and produces the Mini marquee, and is the parent company of Rolls-

Royce Motor Cars.

BMW produces motorcycles under BMW Motorad and Husqvarna brands. In 2010, the

BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands.

The company aims to generate profitable growth and above-average returns by focusing on

the premium segments of the international automobile markets. With this in mind, a wide-

ranging product and market offensive was initiated in 2001, which has resulted in the BMW

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Group expanding its product range considerably and strengthening its worldwide market

position. The company’s brand is extremely strong and is associated with high performance,

engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the

‘best’ in the world, and the company continues to launch a stream of innovative products as

part of its battle with German peer Mercedes to be the world’s largest luxury car maker.

BMW’s focus on engineering excellence allied to leading-edge design continues to drive

successful, profitable expansion. In 2007 BMW sales increased by 8%, Mini by 18% and

Rolls-Royce by 26% with, for the first time ever, over 1000 of the super luxury cars being

produced in one year. To further this growth, a host of new models is being launched,

including the Mini Clubman and the new sport utility vehicle, the BMW X6 - the world’s

first SUV coupe. While the Clubman reinvents views on vehicle access, the X6 is an

excellent example of BMW innovation at work. It combines the safety and convenience of a

four-wheel-drive with the on-road performance of a sports car and is designed to appeal to

the driver who enjoys a commanding driving position, but also savours the characteristics of

a sports car. With its stretched coupé silhouette and pronounced performance design,

underpinned by hybrid engine options, as previously achieved with the X5 and the X3 in

allied markets, the X6 is the latest instance of BMW changing perceptions of what a car

should provide – for its passengers and its driver alike. At its heart, it restates an aspiration

for driving that is both exclusive and yet also available to the mass market.

BMW has also been at the forefront of introducing new IT options to enhance the driving

experience. Starting with the iDrive first introduced in the 7-series, BMW Connected Drive is

now available across most models and is adding greater functionality. After being one of the

first to offer the capability for MP3 connectivity and incorporate RSS feeds including

weather information, in 2007 BMW teamed up with Google to offer a PC driven route

planning service. Of course this level of innovation does not come cheaply and a key

challenge going forward will be to keep research and development costs under control.

During the last five years, BMW’s average annual R&D investment has been around €2,300

per car, compared with €1,700 spent by arch-rival Mercedes. Alongside the examples above,

much of the money has gone into the car maker's Efficient Dynamics programme aimed at

making engines more efficient, improving aerodynamics, reducing weight and capturing

energy during braking. As the numbers clearly show, BMW is a mass market player but one

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that successfully uses focused innovation to build and maintain the aspirational driving

experience for many. Through a constant stream of consumer informed innovations, the

company has moved ahead of its peers and future sustained and profitable growth is widely

predicted.

in the BMW's future strategy, it strongly focus on expand of the potential market. For

example, China and Russia. In terms of brand promotion, BMW Group, will seize the

opportunity, and vigorously advise and expand public awareness network.

At the same time, BMW also advertise their ambitions and sense of responsibility to society.

In the automotive manufacturing area, BMW Group proposed to advertise new product

concepts and environmental protection. BMW believes that with further development of the

industrial era, the traditional energy sources will become a bottleneck restricting the

development of society, as with the development of traditional energy sources will gradually

disappear.

All of these above are only general publicity, from the details; BMW also has many methods

of influence to advertise the brand promotion. In the past, BMW through the sponsorship of

007 series of films to lead more people know about BMW. Nowadays, Now, BMW further

into the ranks of social charity and welfare to go. I believe that in the future, more new ways

to promote the brand BMW will also be generated in the process.

From BMW’s advertising trends, while BMW focus on its own personality and the brand

image. BMW also changed their advertising strategies, slowly trying to go into the market

culture. For example, in China, BMW will be promoting the brand through the action to

protect the local cultural heritage.

In short, any successful brand or product can not be divorced from the success of advertising

and publicity.

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RESEARCH METHODOLOGY

This research explores how BMW has managed to maintain its strong hold in the Indian

market and its innovative marketing activities done to maintain a healthy relationship with its

customers and create new prospects through referral marketing. An in depth look at the

marketing activities of the competitors of BMW has also been done in order to know the

market position of BMW.

Objectives of the study

To know the market share of BMW in India

To reach the potential customers of BMW cars i.e. prospecting

To find out the marketing strategies of the competitors.

To create more customers through referral marketing.

To know how BMW can retain its strong position in the luxury car market

Scope of the study

The scope of the study includes all the competitors of BMW like Audi, Mercedes and JLR

(Jaguar Land Rover). The study was conducted by observing the various marketing and

promotional activities of the competitors. The study focuses only on awareness of BMW

among upper class of the society. The study also focuses on the power of referral marketing

and how customer reference can gather more customers and make a great difference to

business.

.

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HISTORY AND GROWTH OF BMW

To better understand BMW today you have to know and understand BMW history. The last

century gives the “flavour” of today’sBMW cars, the ingredient that makes them so special.

This “special” can be almost seen as the soul of a person. BMW cars have an unmistakably

personality and an obsessive care about the feeling of driving, thus their slogan "the ultimate

driving machine". This creates a bond between the car and the driver that may last for a

lifetime. These three magic letters stand for BayerischeMotorenWerke, or in English,

Bavarian Motor Works. The "Motor" is the core of this acronym and is the foundation; the

key part around which BMW builds every product.

BMW AG originated with three other manufacturing companies, Rapp Motorenwerke and

BayerischeFlugzeugwerke (BFW) in Bavaria, and Fahrzeugfabrik Eisenach in Thuringia.

Aircraft engine manufacturer Rapp Motorenwerke became BayerischeMotorenwerke in 1916.

The engine manufacturer, which built proprietary industrial engines after World War I, was

then bought by the owner of BFw who then merged BFw into BMW and moved the engine

works onto BFW's premises. BFW's motorcycle sideline was improved upon by BMW and

became an integral part of their business.

BMW became an automobile manufacturer in 1929 when it purchased Fahrzeugfabrik

Eisenach, which, at the time, built Austin Sevens under licence under the Dixi marque.

BMW's team of engineers progressively developed their cars from small Seven-based cars

into six-cylinder luxury cars and, in 1936, began production of the BMW 328 sports car.

Aircraft engines, motorcycles, and automobiles would be BMW's main products until World

War II. During the war, against the wishes of its director Franz Josef Popp, BMW

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concentrated on aircraft engine production, with motorcycles as a side line and automobile

manufacture stopped altogether.

After the war, BMW survived by making pots, pans, and bicycles until 1948, when it

restarted motorcycle production. Meanwhile, BMW's factory in Eisenach fell in the Soviet

occupation zone and the Soviets restarted production of pre-war BMW motorcycles and

automobiles there. This continued until 1955, after which they concentrated on cars based on

pre-war DKW designs. BMW began building cars in Bavaria in 1952 with the BMW 501

luxury saloon. Sales of their luxury saloons were too small to be profitable, so BMW

supplemented this with building Isettas under licence. Slow sales of luxury cars and small

profit margins from microcars caused the BMW board to consider selling the operation to

Daimler-Benz. However, Herbert Quandt was convinced to purchase a controlling interest in

BMW and to invest in its future.

Quandt's investment, along with profits from the BMW 700, brought about the BMW New

Class and BMW New Six. These new products, along with the absorption of Hans Glas

GmbH, gave BMW a sure footing on which to expand. BMW grew in strength, eventually

acquiring the Rover Group (most of which was later divested), and the license to build

automobiles under the Rolls-Royce marque.

In 1910, Otto received German aviation license no. 34 and, in the same year, set up a training

school and an aircraft factory, The factory, which was named Otto-Flugzeugwerke in 1913,

was located on LerchenauerStrasse, east of the Oberwiesenfeld troop maneuver area in the

Milbertshofen district of Munich. Otto concentrated on building Farman inspired pushers (he

had got his own license on an Aviatik-Farman), and soon became the main supplier for the

BayerischeFliegertruppen (Royal Bavarian Flying Corps). Neither the Otto-Werke nor his

AGO Werke companies, which from 1914 developed different aircraft, was successful in

getting orders from the Prussian military due to unexplained quality issues. The military

urged Otto to revise his production line, but the issues were never resolved. Suffering

financially, the Otto company was purchased by a consortium, which included MAN AG as

well as some banks, in February 1916. One month later, on this company’s premises, the

investors established a new business, BayerischeFlugzeugwerke AG. AGO closed down in

1918, and its facilities were taken over by AEG.

In 1913 Karl Rapp established Rapp Motorenwerke near the Oberwiesenfeld.[1] Rapp had

chosen the site because it was close to Gustav Otto Flugmaschinenfabrik, with whom he had

contracts to supply his four-cylinder aircraft engines.[1]

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Rapp was sub-contracted by Austro-Daimler to manufacture their V12 aircraft engines.

Austro-Daimler at the time was unable to meet its own demands to build V12 Aero engines.

The officer supervising aero-engine building at Austro-Daimler on behalf of the Austrian

government was Franz Josef Popp. When it was decided to produce Austro-Daimler engines

at Rapp Motorenwerke, Popp was delegated to Munich from Vienna to supervise engine

quality.

However, Popp did not restrict himself to the role of observer, but became actively involved

in the overall management of the company. On 7 March 1916, Rapp Motorenwerke became

BayerischeMotorenWerke GmbH. Popp was also the person who convinced Karl Rapp to

accept the application of Max Friz, a young aircraft engine designer and engineer at Daimler.

At first Rapp was going to turn down Friz’s request; however, Popp successfully intervened

on Friz’s behalf, because he recognized that Rapp Motorenwerke lacked an able designer. In

the space of a few weeks he designed a new aircraft engine which, with an innovative

carburettor and a variety of other technical details, was superior to any other German aero-

engine. Later, this engine would gain world renown under the designation “BMW IIIa”.

The recognition that Max Friz gained with his engine made it clear to all the senior managers

that up to now Karl Rapp and his inadequate engine designs had held the company back from

success. In Friz they now had an excellent chief designer on hand and were no longer

dependent on Rapp.

In February 1916, the south German engineering company MAN AG and several banks

purchased the aircraft builder Gustav Otto Flugmaschinenfabrik. On this company’s premises

the investors established a new business, BayerischeFlugzeugwerke AG (BFW). There was

no time for development work, so BFW manufactured aircraft under license from the

AlbatrosFlugzeugwerke of Berlin. This meant that within a month of being set up, the

company was able to supply aircraft to the war ministries of Prussia and Bavaria. However,

major quality problems were encountered at the start. The German air crews frequently

complained about the serious defects that appeared in the first machines from BFW. The

same thing had happened with the aircraft from the predecessor company run by Gustav Otto.

The reason for these deficiencies was a lack of precision in production. The majority of the

workforce had been taken over by BFW from Otto Flugzeugwerke. It was only organizational

changes and more intensive supervision of the assembly line that succeeded in resolving

these problems by the end of 1916. This done, BFW was able, in the months that followed, to

turn out over 100 aircraft per month with a workforce of around 3,000, and rose to become

the largest aircraft manufacturer in Bavaria

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The end of the war hit BFW hard, since military demand for aircraft collapsed. The

company’s management were thus forced to look for new products with which to maintain

their position in the market. Since World War I aircraft were largely built from wood to keep

their weight down, BFW was equipped with the very latest joinery plant. What is more, the

company still held stocks of materials sufficient for about 200 aircraft, and worth 4.7 million

reichsmarks. It therefore seemed a good idea to use both the machinery and the materials for

the production of furniture and fitted kitchens. In addition, from 1921 onwards, the company

manufactured motorcycles of its own design under the names of Flink and Helios.

In the autumn of 1921 the Austrian financier CamilloCastiglioni first announced his interest

in purchasing BFW. While most of the shareholders accepted his offer, MAN AG initially

held on to its shareholding in BFW. But Castiglioni wanted to acquire all the shares. He was

supported in this by BMW’s Managing Director Franz Josef Popp who, in a letter to the

chairman of MAN, described BFW as a “dead factory, which possesses no plant worth

mentioning, and consists very largely of dilapidated and unsuitable wooden sheds situated in

a town that is extremely unfavorable for industrial activities and whose status continues to

give little cause for enthusiasm”. Apparently Popp was still in close contact with Castiglioni

and was perhaps even privy to the latter’s plans for merging BMW with BFW. It was

probably in the spring of 1922 that Castiglioni and Popp persuaded MAN to give up its shares

in BFW, so that now the company belonged exclusively to Castiglioni. Then in May of the

same year, when the Italian-born investor was able to acquire BMW’s engine business from

Knorr-Bremse, nothing more stood in the way of a merger between the aircraft company

BFW and the engine builders BMW.

The name BayerischeFlugzeugwerke AG was revived in 1926 when Udet-Flugzeugbau

GmbH was changed into a joint-stock company. In the early stages, BMW AG held a stake in

this company and was represented by Popp, who held a place on the Supervisory Board. In

time this company was renamed to Messerschmitt, an important and leading aircraft company

for the Third Reich.

The departure of Karl Rapp enabled a fundamental restructuring of BMW GmbH, formerly

Rapp Motorenwerke. While the development side was placed under Max Friz, Franz Josef

Popp took over the post of Managing Director. Popp held this key position until his

retirement in 1942, and was instrumental in shaping the future of BMW.

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The name-change to BayerischeMotorenWerke compelled management to devise a new logo

for the company, therefore the famous BMW trademark is designed and patented at this time.

However, they remained true to the imagery of the previous Rapp Motorenwerke emblem

(which was designed by Karl's brother, Ottmar Rapp). Thus, both the old and the new logo

were built up in the same way: the company name was placed in a black circle, which was

once again given a pictorial form by placing a symbol within it. By analogy with this, the

blue and white panels of the Bavarian national flag were placed at the center of the BMW

logo. Not until the late 1920s was the logo lent a new interpretation as representing a rotating

propeller. The BMW Trademark, called a "roundel", was submitted for registration on the

rolls of the Imperial Patent Office, and registered there with no. 221388 on 10 Dec 1917.

For the small BMW business, the large orders received from the Reichswehr for the BMW

IIIa engine were overwhelming. Under Karl Rapp only a small number of engines had been

produced and the manufacturing facilities were not in any way adequate to handle the mass

production now required. Not only did BMW lack suitable machine tools but, to a very large

degree, skilled manpower as well. However, the most serious drawback was in the small and

aging workshops. Nevertheless, under the state-controlled war economy, officials in the

relevant ministries were able to give BMW extensive practical support. So in a short time

BMW got the skilled workers and machinery it needed. In addition, the Munich company

received a high level of financial assistance, which enabled it to build a completely new

factory from the ground up, in the immediate vicinity of the old workshops. Due to the share

capital being too small, both the building of the new plant and the working capital needed for

materials and wages had to be financed with external funds, i.e. bank loans or state

assistance. The war ministries of Bavaria and Prussia (then both separate kingdoms within the

Kaiser’s Empire) did not, however, wish to go on supporting BMW with loans and

guarantees, and therefore urged the flotation of a public limited company.

In 1917 Julius Auspitzer’s son-in-law, Max Wiedmann, held about 80 percent of the shares in

Rapp Motorenwerke. He had obtained most of these shares from his father-in- law in 1914

and had thus become a figure of great influence in the business. Even after the name-change

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to BayerischeMotorenWerke GmbH, Wiedmann remained the principal shareholder in the

company. Wiedmann’s capitulation in July 1918 opened the way for the founding of a public

limited company. On 13 August 1918 BMW AG was entered as a new company in the

Commercial Register and took over from BMW GmbH all its manufacturing assets, order

book and workforce. The old BMW GmbH was renamed

"MaschinenwerkeSchleißheimerstrasse" and was wound up on 12 November 1918. The share

capital of BMW AG amounting to 12 million reichsmarks was subscribed by three groups of

investors. One third of the shares was taken up in equal parts by the Bayerische Bank and the

Norddeutsche Bank. A further third of the shares (worth 4 million reichsmarks) was acquired

by the Nuremberg industrialist, Fritz Neumeyer. This ensured that 50 percent of the capital (6

million reichsmarks) was in the hands of Bavarian businesses or banks. The Bavarian

government placed the highest value on this strong local shareholding. The final one-third of

the BMW shares were taken up by a Viennese financier, CamilloCastiglioni. During the war,

Castiglioni had been one of the principal players in the Austro-Hungarian aircraft industry,

and for a long time had had links with Rapp Motorenwerke. So he had probably already been

influential in negotiating the major order from Austro-Daimler Motoren to Rapp

Motorenwerke in 1916 and would have received a large commission on this. However,

Castiglioni’s interests were not restricted to Austria. As early as 1915, by merging a number

of companies, he had founded BrandenburgischeFlugzeugwerke in the Berlin area, which

supplied aircraft to the German navy. It seemed only logical that he would want to extend his

network of companies by adding a German aero-engine manufacturer.

The end of the war in November 1918 had a huge impact on the entire German aircraft

industry. Since 1914 the military had been placing lucrative orders with aircraft and aero-

engine firms. But now, military demand collapsed completely. However, civil aviation was

still in its infancy, and no substitute business could be expected from that quarter. The end of

the war hit BMW particularly hard, since the BMW IIIa aero-engine was the only product the

company was building in 1918. And suddenly there was no more demand for aircraft engines.

In the years from 1914 to 1918 the German economy had been placed on a war footing. In

order to enable companies to resume civil production as rapidly as possible, a central

demobilization office was set up as soon as the war was over, and branches opened right

across Germany. The Commissioner for Demobilization with responsibility for Bavaria

ordered the closure of BMW’s Munich plant with effect from 6 December 1918. The

employees of the fledgling company faced locked factory gates and a future that was far from

certain. The reason given by the civil servants for this factory closure was the general

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shortage of raw materials such as coal and metals. The small supplies of coal that were still

on hand had to be made available for the freezing population, and such supplies of metals as

remained were diverted to consumer industries. As a former armaments manufacturer, BMW

was sent away empty-handed.

BMW’s top management was not discouraged by the compulsory closure decreed by the

government. When permission was given for the gates to re-open on 1 February 1919,

Managing Director Franz Josef Popp got the design department working constantly in order

to have new products ready to sell to the peacetime market. Engines were designed for boats,

cars, trucks and motorcycles. From the outset, BMW tried to remain an engine manufacturer.

At the same time it also supplied industrial customers with products from its aluminum

foundry.

In 1919 BMW was forced to give up building aircraft engines completely, which it had

initially continued on a modest scale. The Allies had banned Germany from building aircraft

and aircraft engines, and in addition had demanded that all aviation assets manufactured up to

that date should be handed over or destroyed. While the new BMW products for civilian use

were technically advanced, they could not provide the company with any long-term security

in a highly competitive market. The top management therefore began looking for alternatives.

On 18 June 1919, BMW obtained a license agreement for the production of brake assemblies

with the Berlin-based company Knorr-Bremse AG. The contract was to run for ten years and

was intended to provide BMW with employment and profits until 1930. At that time, Knorr-

Bremse manufactured state-of-the-art pneumatic brakes for trains and had the benefit of

large, long-term contracts, which it could not, however, handle at its own factory. For this

reason the Berlin company was looking for a manufacturer to license – and found it in

Munich. One advantage BMW had in negotiating the contract was the announcement by the

Bavarian government that they would be prepared to fit Bavarian trains with Knorr brakes

provided they were manufactured in Bavaria.

From the summer of 1919 onward, the manufacture of pneumatic brakes increasingly

overshadowed engine production. The brake business occupied the majority of the BMW

workforce, which was once again being expanded. This reorientation of the BMW product

range had an effect on the ownership structure. As soon as the war ended, most of the BMW

shareholders had lost interest in the company. Only the major shareholder CamilloCastiglioni

still believed at first that BMW had a future, and took up all the company shares himself.

However, Castiglioni was not an entrepreneur who took the long view; he was an astute

financier in search of a quick return. The manufacture of railway brakes provided an

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opportunity to build up a solid business with sure profits, albeit small ones – too small for

Castiglioni. In August 1920, when the chairman of Knorr-Bremse AG, Johannes Vielmetter,

offered to buy all of Castiglioni's shares in BMW, the Viennese speculator accepted. BMW

was now wholly owned by the Knorr-Bremse company of Berlin. The new proprietors made

only minor alterations to the structure of BMW, since they wished neither to change the

management nor to get involved in the production process

Under the leadership of Knorr-Bremse, BMW’s growth was considerable. Between the end of

1918 and 1921 the workforce grew from 800 to 1,800. In addition, the company set up its

own training program with classes at the factory. In this way, in 1921 alone, BMW was able

to offer solid technical training to some 200 young people. However, the price for this

comfortable commercial situation was dependence on Knorr-Bremse and the abandonment of

its core business of building aircraft engines.

In 1922, CamilloCastiglioni, offered to buy BMW's engine-building division, aluminum

foundry, name, and trademark from Knorr-Bremse. Castiglioni declared that he intended to

set up an engine manufacturing plant of his own, and so he asked for the drawings, patents

and machine tools needed for manufacturing the engines. He also wanted to take with him to

his new company several key figures such as the chief designer, Max Friz, and the chief

executive, Franz Josef Popp. The remainder of the company, including the premises, would

remain under Knorr-Bremse's ownership and would be renamed. His offer of 75 million

reichsmarks was accepted by Knorr-Bremse and, upon the contract being signed on 20 May

1922, the BMW engine-building business was once again in Castiglioni’s hands, while the

remainder of the company became a subsidiary of Knorr-Bremse and was renamed

Südbremse AG.

Castiglioni did not purchase BMW's premises in its transaction with Knorr-Bremse. Instead,

he merged his BayerischeFlugzeugwerke (BFw) into BMW and established BMW's factory

and headquarters at BFw's premises. BMW was moved into the same buildings of Gustav

Otto's former Otto-Flugzeugwerke on LerchenauerStrasse 76. BMW's headquarters have

been at that address ever since.

BMW, with some 200 workers housed in the former BFw's old wooden sheds, began

production on a modest scale. Initially its output was BFw motorcycles, proprietary engines,

and spare parts for aircraft engines. To begin with, business for the “new” BMW AG did not

go particularly well. The market for proprietary engines was still as hotly contested in 1921

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as it had been in 1919 when BMW had gone into brake manufacture as a way of securing its

long-term future.

In light of these circumstances, the purchase of BMW by a skilled and experienced financier

like Castiglioni appears incomprehensible. However, in acquiring the BMW engine-building

business, Castiglioni was not envisaging production in Germany at all; he had already

secured a different deal. Czechoslovakia was looking for suitable engines to equip its air

force and was thinking, among others, of BMW products. Castiglioni had heard of the

Czechoslovak military’s interest and had perhaps even encouraged it, as he was now in a

position to offer BMW aircraft engines to the Czechoslovaks. Shortly after taking over

BMW, Castiglioni concluded an agreement with the Czechoslovak government for the BMW

IIIa and BMW IV models to be manufactured under license by Walter Company of Prague

(not to be confused with Walter Kommanditgesellschaft, Kiel). The substantial profits from

this contract, which ran until the early 1930s, went solely into Castiglioni’s pocket; BMW

made nothing at all out of it.

The aircraft engine business with Russia secured BMW's success in the 1920s. Meanwhile

the competition, Junkers in particular, were confounded as to how BMW was managing to

pay out such huge dividends. They conjectured that BMW was the victim of stock market

speculation and would soon face bankruptcy. Others made allegations that the Munich

company was receiving millions of marks in government subsidies. But all these conjectures

were wide of the mark. BMW had merely succeeded in securing Eastern Europe's biggest

customer early on: the air force of the Red Army. However, while BMW benefited from

these business deals with Russia, sole shareholder Castiglioni benefited even more. As an

alleged brokerage fee, ten percent of the gross price of each aircraft engine delivered to

Russia was paid, through shadow companies, to Castiglioni. In 1926, the financier from

Vienna had to transfer over his majority shareholding to Deutsche Bank to resolve financial

difficulties, but he continued as a major shareholder of BMW.

The “commission payments” to Castiglioni's companies continued until 1928, when an

informer tipped off Deutsche Bank about Castiglioni's unusual accounting methods. The bank

had his accounts investigated retrospectively. To avoid a court case, Castiglioni paid BMW

one million reichsmarks. As a result of these disturbing revelations, he was no longer tenable

to hold a position as a member of the Supervisory Board. When he ran into financial

difficulty once again, Deutsche Bank managed to buy the remaining BMW shares from him.

The Castiglioni era came to an end in 1929.

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The Russian commercial agency in Berlin became aware of the commission payments and

felt ten percent too much had been paid for years. Arbitration proceedings led to an

agreement that BMW would agree to give the Russians the license for the BMW VI aircraft

engine free of charge. In the aftermath, BMW tried desperately to win new contracts from the

Soviets, but failed to do so. BMW's Russian deal ended in 1931.

1923 – the year of decisions

In 1922 BMW had once again become independent, and owed this position to its new major

shareholder, Castiglioni. However, Castiglioni was only interested in making a "quick buck",

which he did through the license agreement with Czechoslovakia, his "commission

payments" from Russia, and various other deals. The long-term future of BMW was secured

by the efforts of its employees and senior management at that time. In particular, the

commitment to BMW of chief executive Franz Josef Popp and chief designer Max Friz

established the company as a permanent international player in the building of aircraft

engines and motorcycles.

In this respect, 1923 was a year of great significance, and it can justifiably be called a

decisive year for BMW. While Germany was forced to live through a year of runaway

inflation and numerous attempted coups, the Munich company made a successful new start –

for it was in 1923 that BMW resumed production of aviation engines. A crucial factor in this

was the interest shown by the Soviet Union in BMW aircraft engines and the solid prospect

of large orders. In the years that followed, the Soviet Union was to become BMW’s most

important customer. In addition to this, on 28 September 1923, BMW launched the first

motorcycle of its own design, the R32. The R32 was the first in a series of products that

would prove successful and profitable over the following years.

R32 motorcycle

At the German Motor Show in Berlin (September 28 – October 7, 1923) BMW exhibited the

R32 to the public for the first time. The first motorcycle from BMW convinced the experts

immediately, and was an instantly popular product with consumers. A comment in the

magazine DER MOTORWAGEN read: "And finally, the culmination of the exhibition, the

new BMW motorcycle (494 cc) with the cylinders arranged transversely. Despite its youth it

is a remarkably fast and successful motorcycle."

In 1924 BMW built its first model motorcycle, the R32. This had a 500 cc air-cooled

horizontally opposed engine, a feature that would resonate among their various models for

decades to come, albeit with displacement increases and newer technology. The major

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innovation was the use of a driveshaft instead of a chain to drive the rear wheel. To this day

the driveshaft and boxer engine are still used on BMW motorcycles.

Austin-licensed BMW Dixi

BMW’s automobile history had begun much earlier than 1924, if only in the form of

proposals and prototypes. Correspondence dating back to 1918 shows the first use of the term

“automobile” in BMW history. But no details, let alone images have come down to us

regarding this fourwheeled primogenitor. Subsequently, BMW manufactured various built-in

motors with four and two cylinders that powered a wide variety of agricultural vehicles in the

early 1920s. The spectrum of machinery driven across the land by BMW units ranged from

single-track cars to huge farm tractors. Around 1925 two specially hired BMW designers,

Max Friz and GotthilfDürrwächter, both former employees of Daimler-Benz in Stuttgart,

were commissioned by BMW’s Managing Director Franz Josef Popp to design a BMW

production car. From this first, demonstrably operational BMW car – though as yet lacking

any bodywork, BMW laid the groundwork for one of the world's most respected

manufacturer of automobiles.

Success for BMW in this industry came from an already proven source-the Seven. In 1927

the tiny Dixi, an Austin Seven produced under license, began production in Eisenach. BMW

bought the Dixi Company the following year, and this became the company's first car, the

BMW 3/15.

BMW designs its own cars

Towards the end of 1930, BMW attempted to introduce a new front axle with independent

wheel suspension for both their models, the BMW 'Dixi' 3/15 DA4 and BMW 'Wartburg'

DA3, but this resulted in accidents with the prototypes because of construction faults.

However, as the license with Austin would end in 1932, BMW decided upon the

development of a completely new model and called in the help of German engineer Josef

Ganz. He was hired as a consultant engineer at BMW in July 1931. At first, Josef Ganz

negotiated with BMW about possible manufacture of his innovative rear-enginedMaikäfer

prototype at BMW. However, BMW decided for a different model, more along the lines of

the previous Dixi model. Therefore, with the assistance of Ganz, work started on the

development of the BMW AM1 (AutomobilkonstruktionMünchen 1), a small car with a

front-mounted engine, rear-wheel drive, and independent wheel suspension with swing-axles.

World War II

The German invasion of Poland and commencement of hostilities meant that manufacturing

facilities in Germany were directed by the Nazi regime to re-focus on the manufacture of

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products required to support the war effort. For BMW, that meant an emphasis on production

of aero (airplane) engines. Josef Popp argued against this, contending that, although

financially lucrative, the change in focus would mean that the BMW AG would be heavily

dependent on decisions made by the Nazi regime. In June 1940, he wrote to the Chairman of

the Supervisory Board, Emil Georg von Stauss, explaining that the situation could “threaten

the very existence of BMW AG if there were any setback to aero engine production”. This

change in focus did in fact lead to a significant increase in external control from political and

military agencies, weakening the position of the BMW management and eroding the position

of Franz Josef Popp, whose leadership of BMW had been relatively autonomous and

autocratic to that point. Statutes enacted on October 1, 1940 required all subsidiaries to

transfer profit and loss responsibility to BMW AG. Expansion of the aero engine business

required several injections of capital to Flugmotorenbau GmbH, with the total capitalization

of BMW AG increasing in stages to RM 100 million by 1944. Further restructuring was

carried out in 1944, with centralization of sales in BMW AG and the GmbHs acting only as

property companies.

The emphasis on aero engines caused significant changes in BMW AG's business.

Motorcycle production located at the Munich manufacturing facility abandoned production of

non-military motorcycles by 1940, producing only the R12 and the R75, which were supplied

to the Wehrmacht. At the beginning of 1942, motorcycle production was transferred to

Eisenach so that the Munich plant could be dedicated to aero engine fabrication, and in 1942,

BMW abandoned motorcycle production altogether. BMW also ceased production of

automobiles in 1940, since cars were not being produced for the military. Only automobile

repair facilities were retained, along with a development department.

A wide range of aero engines were ultimately produced for the Luftwaffe, including one of

the most powerful engines of the time - the BMW 801. Over 30,000 aero engines were

manufactured through 1945, as well as over 500 jet engines such as the BMW 003. To enable

this massive production effort, forced labour was utilized, consisting primarily of prisoners

from concentration camps such as Dachau. By the end of the war, almost 50% of the 50,000

person workforce at BMW AG consisted of prisoners from concentration camps.

BMW AG plants were confiscated by Allied troops at the end of the war, and production of

aero and jet engines for the Luftwaffe was shut down.

Second crisis for BMW AG – WWII aftermath

BMW AG was heavily bombed towards the end of the war, reducing most of the company's

production facilities to rubble. In fact, by the end of the war, the Munich plant was

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completely destroyed. Of its sites, those in eastern Germany (Eisenach-Dürrerhof, Wandlitz-

Basdorf and Zühlsdorf) were seized by the Soviets. After the war the Munich factory took

some time to restart production in any volume. BMW was banned from manufacturing for

three years by the Allies and did not produce a motorcycle, the R24, until 1948, and a car

model until 1952. During the three year ban BMW used scraps and what resources they had

available to manufacture bicycles and kitchen supplies.

In the east, the company's factory at Eisenach was taken over by the Soviet Awtowelo group

which formed finally the Eisenacher Motor-Werke. That company offered "BMWs" for sale

until 1951, when the Bavarian company prevented use of the trademarks: the name, the logo

and the "double-kidney" radiator grille.

The cars and motorcycles were then branded EMW (EisenacherMotoren-Werke), production

continuing until 1955.

In the west, the BAC, Bristol Aeroplane Company, inspected the factory, and returned to

Britain with plans for the 326, 327 and 328 models. These plans, which became official war

reparations, along with BMW engineer Fritz Fiedler allowed the newly formed Bristol Cars

to produce a new, high-quality sports saloon (sedan), the 400 by 1947, a car so similar to the

BMW 327 that it even kept the famous BMW grille.

In 1948 BMW produced its first postwar motorcycle and in 1952 it produced its first

passenger car since the war. However, its car models were not commercially successful;

models such as the acclaimed BMW 507 and 503 were too expensive to build profitably and

were low volume.

By the late 1950s, it was also making bubble-cars such as the Isetta.

Third crisis for BMW AG – a company for sale

In 1959, after BMW had survived takeover attempts made by American Motors and the

Rootes Group, the chairman of BMW's supervisory board suggested a merger with Daimler-

Benz. The dealers and small shareholders opposed this suggestion and rallied around a

counter-proposal, which gained enough support to stop the merger. At that time, the Quandt

Group, led by half-brothers Herbert and HaraldQuandt, stepson of the Third Reich Minister

of Propaganda Joseph Goebbels, had recently increased their holdings in BMW and had

become their largest shareholder. By the end of November 1960, the Quandts owned two-

thirds of BMW's stock between them.

By this time BMW had launched the 700, a small car with an air-cooled, rear-mounted 697 cc

boxer engine derived from the engine powering the R67 motorcycle. It was available as a 2-

door sedan and as a coupe, both versions having been designed by Giovanni Michelotti.

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There was also a more powerful RS model for racing.Competition successes in the 700 began

to secure BMW's reputation for sports sedans.

At the Frankfurt Motor Show in 1961, BMW launched the 1500, a compact sedan with front

disc brakes and four-wheel independent suspension. This modern specification further

cemented BMW's reputation for sporting cars. It was the first BMW to officially feature the

"Hofmeister kink", the rear window line that has been the hallmark of all BMWs since then.

The "New Class" 1500 was developed into 1600 and 1800 models. In 1966, the two-door

version of the 1600 was launched, along with a convertible in 1967. These models began the

'02' series, of which the 2002 was the best known, and which was continued until 1976 when

it was replaced by the BMW 3 Series.

By 1963, with the company back on its feet, BMW offered dividends to its shareholders for

the first time since before World War II

Expansion- Hans Glas GmbH

By 1966, the Munich plant had reached the limits of its production capacity. Although BMW

had initially planned to build an entirely new factory, the company bought the crisis-ridden

Hans Glas GmbH with its factories in Dingolfing and Landshut. Both plants were

restructured, and in the following decades BMW's largest plant took shape in Dingolfing.

In 1968, BMW launched its large "New Six" sedans, the 2500, 2800, and American Bavaria,

and coupés, the 2.5 CS and 2800 CS.

Of major importance to BMW was the arrival of Eberhard von Kuenheim from Daimler-Benz

AG. Just 40 years old, he presided over the company's transformation from a national firm

with a European-focused reputation into a global brand with international prestige.

Already commercially successful by the mid 60s, in December 1971, BMW moved to the

new HQ present in Munich, architecturally modeled after four cylinders.

In 1972, the 5 Series was launched to replace the New Six sedans, with a body styled by

Bertone. The new class coupes were replaced by the 3 Series in 1975, and newly introduced

larger sedans became the 7 Series in 1977. Thus the three-tier sports sedan range was formed,

and BMW essentially followed this formula into the 1990s. Other cars, like the 6 Series

coupes that replaced the CS and the M1, were also added to the mix as the market demanded.

From 1970 to 1993, under von Kuenheim, turnover increased 18-fold, car production

quadrupled and motorcycle production tripled.

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Rover

Between 1994 and 2000, under the leadership of Bernd Pischetsrieder, BMW owned the

Rover Group in an attempt to get into mass market production, buying it from British

Aerospace. This brought the active Rover, Mini and Land Rover brands as well as rights to

many dormant marques such as Austin, Morris, Riley, Triumph and Wolseley under BMW

ownership.

The venture was not successful. For years, Rover tried to rival BMW, if not in product, then

in market positioning and "snob appeal". BMW found it difficult to reposition the English

automaker alongside its own products and the Rover division was faced with endless changes

in its marketing strategy. In the six years under BMW, Rover was positioned as a premium

automaker, a mass-market automaker, a division of BMW and an independent unit. A five

part BBC documentary, When Rover Met BMW (1996), gave some insight into the

difficulties faced by the two firms.

BMW was more successful with the Mini, MG and Land Rover brands, which did not have

parallels in its own range at the time.

In 2000, BMW disposed of Rover after years of losses, with Rover cars going to the Phoenix

Venture Holdings for a nominal £10 and Land Rover going to the Ford Motor Company. The

German press ridiculed the English firm as "The English Patient", after the film. BMW itself,

protected by its product range's image, was largely spared the blame. Even the British press

was not particularly sympathetic towards Rover.

BMW retained the rights to Mini, Triumph and other marques. MINI has been a highly

successful business, though the other names have not been used yet. Following the

bankruptcy of MG Rover in 2005, the Rover name was sold to Ford in 2006 after BMW gave

it a first refusal offer in 2000. However, Ford did not release any Rover-badged cars before

selling the name to Tata Group, while the MG brand has been relaunched by Nanjing

Automobile of China.

Redesign controversy

In the early 2000s, BMW undertook another of its periodic cycles of redoing the design

language of its various series of vehicles, under the auspices of newly promoted design chief

Christopher Bangle. These controversial designs often featured unconventional proportions

with complex concave and convex curved surfaces combined with sharp panel creases and

slashes, a design cue called "flame surfacing". Much of the new language did not rest well

with BMW enthusiasts or the automotive press which referred to the new designs as

"Bangled" or "Bangle-ised". Although Bangle did not pen all of the new designs himself, as

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the design chief he was ultimately responsible for the direction that the company took and

thus received much of the criticism. As Bangle has now been promoted within the company

to the BMW Group Head of Design, leaving him in charge of not only BMW but also Rolls-

Royce and Mini, som questioned what long term effect the disaffection of BMW

traditionalists[clarification needed] for these designs will have on sales, and on the company's

future. Sales at BMW have increased every year since some of his most debated designs have

gone into production.

Many aspects of the "controversial" designs are now beginning to surface in other auto

manufacturer's designs. Though the design debuted and was popularized by BMW's 7-Series,

Hyundai incorporated this design cue in 1999, three years before the 7-Series was released,

and Maybach incorporated it since its first showing in 1997.

Bangle was also responsible for many 'conservative' BMW designs and has worked at BMW

for almost a decade. The first X5 sketches (which closely resembled the production car), were

designed by him, and under his tenure the E46 3 Series came to be. Despite much of the scorn

heaped on Chris Bangle, his design selections were approved by the entire executive board of

BMW AG, including the majority owners, the Quandt family.BMW's design team has won

numerous awards with him at the helm.

Production outside Germany

BMW's Rosslyn, South Africa, plant was the first BMW assembly line established outside

Germany, with production starting in 1973. The wholly owned subsidiary now exports over

70% of its output. In the mid-1990s, BMW invested R1bn to upgrade the Rosslyn factory.

The plant now exports over 50,000 3 Series cars a year, mostly to the USA, Japan, Australia,

Africa and the Middle East.

BMW started producing automobiles at its Spartanburg, South Carolina, plant in 1994.

Today, the plant manufactures the BMW X5 and the BMW X6. The production of the BMW

X3 will be moving to Spartanburg from Europe after the completion of a major expansion of

the U.S. facility.

The Spartanburg plant is open six days a week, producing automobiles approximately 110

hours a week. It employs about 4,700 people and manufactures over 600 vehicles daily.

Recently, the plant has undergone a major renovation switching from 2 production lines

down to one. Both the X5 and the X6 are produced in the same line, one right after the other.

Outside Germany, the largest output of the BMW Group comes from British factories. The

Hams Hall plant manufactures four-cylinder BMW engines for use around the world in 3-

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Series, 1-Series and Z4 vehicles. This is in addition to MINIs and Rolls-Royces made in

Oxford and Goodwood.

BMW signed agreement in 1999 with Avtotor to produce cars in Kaliningrad, Russia. Factory

has been assembling 3 and 5 -series cars.

Starting from October 2004, BMWs intended for the Chinese market are produced in

Shenyang, China. BMW has established a joint venture with Chinese manufacturer Brilliance

to build BMW 3 Series and 5 Series that have been modified for the needs of local markets.

The BMW X3 was manufactured in Graz, Austria between 2004 and 2007 by Magna Steyr

with mainly German components. The X3 production will be moved to the Spartanburg plant

due in part to high production and transportation costs of what was meant to be the "more

affordable" SUV. North American pricing, after said costs, were nearly on par with the

larger, American-built X5.

In 2005, BMW Group built a new manufacturing facility in Egypt. This plant builds 3 Series,

5 Series, 7 Series, and X3 vehicles for the African and Middle East markets.

BMW opened its first assembly plant in Chennai, India in March 2007 to assemble 3-series

and 5-series vehicles. The 20 Million Euro plant aims to produce 1,700 cars per year in the

medium term, though this could rise to up to 10,000 cars if demand grows. The new factory

may also be used to help boost the production of BMW’s super-successful MINI.BMW India

headquarters is located in Gurgaon outside Delhi.

Rolls-Royce

In the early 1990s, BMW and Rolls-Royce Motors began a joint venture that would see the

new Rolls-Royce Silver Seraph and Bentley Arnage adopt BMW engines.

In 1998, both BMW and Volkswagen tried to purchase Rolls-Royce Motors. Volkswagen

outbid BMW and bought the company for £430 million, but BMW outflanked its German

rival. Although Volkswagen had bought rights to the "Spirit of Ecstasy" mascot and the shape

of the radiator grille, it lacked rights to the Rolls-Royce name. Rolls-Royce plc (the aero-

engine business) retained the rights over the Rolls-Royce trademark and wished to strengthen

its existing business partnership with BMW which extended to the BMW Rolls-Royce joint

venture. Consequently, BMW was later in 1998 allowed to acquire the rights to use the name

"Rolls-Royce and "RR" logo on cars for £40 million.

In a separate deal BMW agreed to let Volkswagen use the name "Rolls-Royce and "RR" logo

on cars until 2003 on condition that BMW would get the right to the grille and mascot from

2003, onwards.

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BMW supplied the engines to the current Seraph/Arnage range and their supply contract had

a clause that allowed BMW to stop the supply of engines the day another owner, (than then

Vickers plc), took over the company. BMW could effectively stop Volkswagens

Seraph/Arnage production. This might have biased the deal.

Anyway, Volkswagen was permitted to build Rolls-Royces with all three trademarks at its

Crewe factory only until 2003, but quickly shifted its emphasis to the Bentley brand. BMW

would have all the three key trademarks in 2003.

In the meantime, BMW was faced with the need to build a new factory and develop a new

model. The new factory at Goodwood produced the new Rolls-Royce Phantom, unveiled on

January 2, 2003, and officially launched at the Detroit Auto Show on January 5, 2003. The

model, priced around US$330,000, has experienced record sales worldwide of 796 Phantoms

sold in 2005.

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BMW INDIA

The BMW Group is a manufacturer of luxury automobiles and motorcycles. It has 24

production facilities spread over thirteen countries and the company’s products are sold in

more than 140 countries. BMW Group owns three brands namely BMW, MINI and Rolls-

Royce.

The BMW Group sold approximately 1.29 million cars and approx. 87,000 motorcycles in

2009 and its revenues totalled 50.68 billion Euros.

BMW India is headquartered in Gurgaon, Haryana and is a 100% subsidiary of the BMW

Group. India operations commenced on 29th March 2007, when BMW India officially

opened its production plant in Chennai. The Chennai plant produces the BMW 3 Series and

BMW 5 Series Sedans in petrol and diesel variants and has a capacity to produce 3000 units

per year on a single shift basis. BMW’s initial investment to set up operations in India was

Rupees 110 crores.

As of 2009, BMW India directly employed approximately 200 people with up to 600

additional jobs having been created in the dealer and service network. Currently, BMW has

around 20 dealers and service centres across the country with aggressive plans to open

additional dealerships.

BMW India has also established an International Purchasing Office (IPO) at its headquarters

in Gurgaon. The IPO will focus on the development of exports from India to the BMW

Group International Production Network and work towards increasing the sourcing share

from India over the coming years. The activities include the identification and assessment of

potential suppliers taking into account BMW’s requirements for quality, technology and

logistics. The IPO will explore procurement of production material (components) as well as

IT and Engineering Services.

In 2010, BMW Group introduced BMW Financial Services in India as a 100% subsidiary,

headquartered in Gurgaon (National Capital Region). BMW Financial Services operates as a

Non-Banking Finance Company (NBFC) in India. BMW Financial Services operates with its

three business lines: Retail Finance, Commercial Finance and Insurance Solutions (through

cooperation partners). The services offered through BMW Financial Services are

significantly valuable to the premium clientele in India who require exclusive and flexible

financial solutions.

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Operations

Till date BMW Group has invested more than Rs 180 Crores in India. The wide range of

BMW activities in India include the establishment of a production plant in Chennai, Tamil

Nadu, parts warehouse in Mumbai and development of a dealer organization across major

metropolitan centers of the country.

The BMW Plant at Chennai produces among others, the BMW 3 Series, BMW 5 Series,

BMW X1 in petrol and diesel variants and the BMW 7 series. The new BMW X3 is also

produced. The BMW Plant Chennai has the capacity to produce 11,000 units per year on a

double shift basis.

Vision & Values

BMW’s mission statement is to "Become the most successful premium manufacturer in the

car industry"

Their vision is: uniqueness through diversity, leadership, taking risks, and being courteous.

Management Team

KarimHabib is the Head of Exterior Design for BMW Automobiles. Born in Beirut, Lebanon

in 1970, Mr. Habib worked at the College Stanislas in Montreal, Canada for a period of seven

years. After that he attended the prestigious McGill University and earned his Bachelor’s of

Engineering degree. He also studied at the Art Center Europe and Art Center College of

Design in Pasadena, where he earned a Bachelor’s in Transportation Design. Habib has held

several positions in BMW and in March 2011 he was appointed the Head of Exterior Design

at BMW.

Dr. Andreas Schaaf is the President of BMW India Private Limited. Dr. Schaaf was born in

Haan, Germany in 1970 and joined BMW in 1996. He worked in the Production Department

for 2 years; in the Corporate Strategy Department for 2 years; as the Head of Product

Portfolio Management and New Product Concepts, Central Marketing for 2 years; Head of

Product and Price Planning for Asia, Pacific, Africa and Eastern Europe, Sales for 3 years;

and as Head of Market Development for Asia, Pacific and Africa for 1 year. In 2010, he

joined BMW India and was appointed the president of the company. Dr. Schaaf studied

Business Administration from the University of Bayreuth, EcoleSupérieure de Commerce

Dijon as an Exchange Student, and did his Doctoral Thesis from the University of Bayreuth.

Christian Saffer serves as the Director of Marketing of BMW India Private Limited.

Rodney Woods serves as the Director of Finance, Human Resources, IT and Administration

of BMW India Private Limited.

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Manufacturing Facilities

In 2007, the company opened its production plant in Chennai (Tamil Nadu) to sell cars

exclusively to the Indian market. The BMW plant in Chennai produces the BMW 3 Series

and the BMW 5 Series, both in petrol and diesel variants. The plant has the capacity to

produce 3000 units per year. The German luxury car maker rolled out its 5-Series cars from

Chennai at an ex-showroom price tag ranging between Rs.39.8 lakhs and Rs. 58 lakhs. The

cars were produced both in petrol and diesel variants. While the 523i, 530d and 525d were

produced as Completely Knocked Down (CKD) units in Chennai, the 535i was imported as a

Completely Built Unit (CBU). The production facility in Chennai is BMW’s fifth factory in

Asia and is a part of the company’s goal of selling 1,50,000 cars in Asia in 2007. The

company made an investment of 20 million Euros to open this plant.

The production plant in Chennai, when it started in 2007 had a total workforce of 200 people.

The plant also manufactures the seats and doors of the car but the rest of the parts are

imported.

Technology

BMW has cars that come in both petrol and diesel engines. According to the company, the

petrol engine has a High Precision Injection system that reduces fuel consumption and is part

of BMW’s Efficient Dynamics system that aims to bring fuel efficiency to all BMW cars.

This High Precision Injection technology has the piezo injector which is positioned between

the valves and the spark plug. This technology consists of a number of piezo crystals which

expand when they come in contact with electricity. Improving car performance, the

expansion causes the fuel-air mixture into the combustion chamber at 200 bar. The pressure

causes very little fuel to be used, thereby making this technology an important feature of all

BMW cars.

Since the piezo injections require only 0.14 milliseconds, many injections can be inserted in

one cycle. There is an electronic system that adjusts the timing and dose of fuel injected into

the system. This leads to a reduction in fuel consumption and increase in fuel efficiency.

Awards & Recognition

BMW 5 Series wins Eight Top Media Awards in India.

Best Executive Car of the Year – TopGear Award 2011, received by BMW.

Luxury Prestige Sedan of the Year – ET Zigwheels Award 2011, received by Andreas

Schaaf, President, BMW India.

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Best Sedan of the Year – The Golden Steering Award 2010.

Premium Automobile of the Year – CNBC Overdrive 2011, received by Christian Saffer,

Director, Marketing, BMW India.

Best Design and Styling – Bloomberg-UTV Autocar Award 2011, received by Andreas

Schaaf, President, BMW India.

Premium Car of the Year – Business Standard Motoring Award 2011, received by Rodney

Woods, Director – Finance, Human Resources, IT and Administration, BMW India.

Premium Car of the Year – Car India & Bike India Award 2011, received by Rodney Woods,

Director – Finance, Human Resources, IT and Administration, BMW India.

Premium Sedan of the Year – NDTV Car and Bike Award 2011, received by Christian

Saffer, Director, Marketing, BMW India

BMW India is honored to receive the top automotive excellence awards in India and to be

acknowledged by such a diverse and esteemed panel of judges. The new BMW 5 Series is a

clear winner from the BMW stable. It has significantly contributed to the success and image

of BMW in India. This sixth generation automobile has all the attributes of the ultimate

luxury sedan.

International Operations

The BMW Company is an extremely successful manufacturer of automobiles and

motorcycles globally and has Rolls-Royce, MINI and BMW brands. The company operates

24 production facilities in 13 countries and has a total dealership network in 140 countries.

The company has achieved a global sales volume of 1.29 million automobiles and 87,000

bikes for the 2009 year. As of 2009, the company employed a total workforce of

approximately 96,000 employees.

In Asia, BMW sold 16,959 Minis in 2007, a 3.7 per cent increase from the previous year and

had sales of 142 Rolls-Royce Phantom vehicles.

Graz, Austria is the region which produces the BMW X3 (E83). 45,973 X3s were produced

in 2009. The Spartanburg plant in South Carolina, USA is the hub for production of the

BMW XR (F25). The production figures as per the country in 2008 are as follows:

Germany - 9,01, 898 cars

Mexico - 1,00,000 cars

Russia - 2,000 cars

United Kingdom - 2,36,436 cars

Austria - 83,863 cars

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USA - 1,70,741 cars

South Africa - 47,980 cars

Future Plans

BMW is launching the new 2 Series and is renaming the 1 Series Coupe and Convertible

models to 2 Series. The company is expected to launch the BMW M2 not before 2014. The

company is also launching the BMW 2 Series Coupe and Cabrio in 2013. The 2 Series boasts

of new design movement and the Cabrio will be launched in soft-top and will have clean

design lines and performance.

BMW plans to launch the 1 Series so that it includes the city compact, the Family Activity

Sports Tourer (FAST) and a Gran Tourismo. The 1 Series will have an expanded wheelbase

and have various features of the high end and Premium luxury cars. Stepping into the small

car category, the company will also develop a Z2 and M2 model.

In India, BMW plans to open a dealership in Ludhiana in collaboration with Krishna

Automobiles. According to the President of BMW India, Dr. Andreas Schaaf, the BMW

dealership is expected to employ 30 people. There will also be a team of service engineers at

this facility who would have received their training in Singapore, Malaysia and German

BMW Financial Services

MW Financial Services is currently active in more than 50 countries worldwide offering

competitive financial solutions for BMW and MINI customers. In 20 countries, BMW

Financial Services offers its services through leading local banking and insurance partners.

BMW India has partnered with Bajaj Allianz General Insurance for offering motor insurance

and with ICICI Bank to offer customised financial solutions and ORIX Auto Infrastructure

Services Limited for leasing services for its customers. These products and services are

offered through the BMW Financial Services.

BMW Group Financial Services is now offering information on the BMW Facebook fan

page, becoming the first OEM captive finance organization to offer financial services via

social media.

In a step towards integration, BMW Financial Services and Mini Financial Services now

offer consumer-friendly finance information on their Facebook pages, allowing consumers to

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access all the online content in the same place. The Facebook initiative involves a separate

tab on the fan page for financial services, which then ultimately links to the BMW Web site.

BMW Group Financial Services, which encompasses BMW Financial Services, Mini

Financial Services, Rolls Royce and Motorad, is the first luxury group to offer finance and

leasing information through its Facebook fan page.

BMW USA’s Facebook fan page includes tabs such as, All-new 6, All-new X3, Financial

services,YouTube, Conversations and Events, as well as the typical wall, info, photo and

video links.

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After clicking on the Financial Services tab, users are offered highly-visual snapshots of

special offers and the benefit of personalized BMW accounts for owning and leasing, all of

which are linked to bring the consumer to the BMW Web site.

The bottom of the page boasts a video about the BMW Extended Vehicle Protection program.

The Mini Facebook fan page does not have an exclusive Financial Services tab.

The financial services information is located at the bottom of the World of Mini page, and

includes a video for the Mini protection plan as well as links to the Liquid Assets Game

application and the Financial Services mobile site. The mobile site lets users view their

accounts and make payments via smartphone.

The BMW Financial Services Group offers leasing, retail and commercial financing services

to the US BMW Group customer.

It also provides services to BMW dealers.

The group controls more than $30 billion in serviced assets and 900,000 customers.

With a Facebook fan base of 500,000, BMW claims it is now providing a complete brand

experience to people beyond their current customer base, enticing potential consumers by

inspiring brand loyalty and creating a consumer community.

The group also plans to expand the social media initiative, currently marketed entirely by

word-of-mouth, by providing financial services through the Rolls Royce Facebook fan page.

It will at that point extend the marketing efforts further.With no other OEM captive finance

organizations currently offering financial information on the Web, BMW Group is setting a

precedent in its field and breaking the ice for discussion of luxury prices online.

The BMW Group has increased its investment in BMW Financial Services India to 5.3

billion Indian Rupees (US $ 106 million) in 2012 from 2.3 billion Indian Rupees (US $ 50

million) in 2010.

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In less than two years, BMW Financial Services India has successfully established itself as

the leading provider of customized financing solutions, individually tailored leasing plans and

unrivalled services. BMW Financial Services India has made significant contribution to

BMW Group’s success in India. This investment will help us enhance our product and

service offering in India to further augment BMW India’s market leadership.”

In 2012, BMW Financial Services India will employ more than 80 people at its headquarters

in Gurgaon.

Dr. Andreas Schaaf, President, BMW India said, “BMW India continues to be the leader in

the Indian luxury car segment. An integral part of our winning story in India is BMW

Financial Services, which provides complete peace of mind to BMW customers with

financially attractive offers and professional services to make the transition from showroom

to the highway, pleasurable and memorable. The investment clearly reinforces BMW

Group’s commitment to India.”

In 2012, BMW Financial Services India has also launched an in-house Customer Interaction

Centre to assist existing and prospective BMW customers. The one of its kind Customer

Interaction Centre offers a complete BMW experience and has professionally trained

executives, who provide expert information regarding financing and leasing, insurance, asset

management, dealer financing and company car pools.

BMW Group launched BMW Financial Services India on October 5, 2010 as a 100%

subsidiary headquartered in Gurgaon (National Capital Region). On June 16, 2010, BMW

Financial Services received a license to operate as a Non-Banking Finance Company (NBFC)

from the Reserve Bank of India.

BMW Financial Services operates with three business lines: Retail Finance, Commercial

Finance and Insurance Solutions (through cooperation partners). The services offered through

BMW Financial Services in India are significantly valuable to the premium clientele who

require exclusive and flexible financial solutions. Service excellence is the primary focus of

operations across all business lines.

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BMW Financial Services offers solutions for retail automobile financing for BMW customers

and multi make customers, financing for fleet owners and commercial financing for BMW

dealerships and multi make dealerships. Commercial finance solutions offered to BMW India

dealerships further strengthen operations in the country and reinforce the BMW brand. BMW

Financial Services India also offers BMW Lease for individuals and corporate customers.

BMW Financial Services provides insurance solutions to its customers through its

cooperation partner in India.

Marketing Strategies

BMW India was founded in the year 2006, and the first car was launched in 2007. The

company maintained an aggressive stance and launched several vehicles at different price

points.

BMW was positioned as an aspirational brand for young entrepreneurs and executives and

adopted innovative strategies to reach the segment. It also developed exclusive dealerships,

which were used as touch points to interact with the customers.

Within three years, BMW went on to become the top luxury car manufacturer in India,

surpassing Mercedes-Benz, which had been present in the country for more than a decade.

The cases lists the strategies adopted by BMW on its journey to reach this position and also

discusses the challenges it is likely to face from existing and new competitors like Mercedes

Benz and Audi.

BMW tried to enter the Indian market in 1997 through a joint venture with the Hero Group,

to produce luxury cars of 3 series and 5 series. The government rejected the proposal when

BMW refused to invest US$ 50 million, as per the norms prescribed by the government, for

entering into a Memorandum of Understanding (MoU). Instead, the company was willing to

invest only around US$ 35 million. The company set up another venture in 2000 to sell high-

end bikes priced at over Rs.450, 000. The bikes did not find many takers, and BMW was

forced to halve the price. However, when sales were still low, BMW decided to exit the

venture.

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Journey to the Top

From the beginning, the company aimed at achieving a leading position in the market and

planned to become the largest player in the Indian luxury automobile segment in a span of

four years. According to Kronschnabl, entering India was like qualifying for the Olympic

Games. You don't go to the Olympics hoping to come second. Though India was far behind

other markets which had a higher volume, BMW considered it to be an important market due

to its high potential...

The Vehicle Range

In June 2007, BMW launched its 5 series models in India. Initially four variants - two in

diesel and two petrol were launched. Entering the country by launching high priced models

was also a part of the company's strategy for the Indian market. According to Schaaf, "BMW

believe that when you enter a new market, the business does not start with entry models. The

experience shows if you enter a market which has a relatively small target group, you need to

build a premium image for the brand through the high-end models. Subsequently other

models were introduced...

BMW Bikes

German bike-maker BMW Motorrad known for some of the most iconic motorcycles and

innovation in two-wheeler technologies has made its entry into the Indian market with its

extensive range of high-end superbikes including its adventure motorcycle series. Its entire

line-up is available in India sold via BMW dealerships across the country.

Motorcycling is the greatest and most exciting hobby in the world. There is hardly any other

way to experience such diversity with all five senses: acceleration, banking, sound, nature –

as if everything were made just to create fascinating moments on a motorcycle.

Enjoy perfection down to the last detail, the high-end technology, the very best riding

properties and powerful riding fun – on the road, on the race track and over rough terrain.

To make these priceless moments as pleasant as possible for you – whether on a sporty line, a

big tour or simply for everyday riding, the BMW Motorrad engineers, designers and

developers constantly seek out new solutions which inconspicuously help make your

experience of motorcycling safe, comfortable and sporty –

BMW Motorrad is sheer riding pleasure. That’s what it’s all about.

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Pricing the Luxury Brand

BMW's target client group in India included young up-and-coming entrepreneurs and

corporate executives. It targeted young people who were looking for sporty looking cars.

BMW did not look to reduce its price much compared to its competitors; instead it looked to

provide more features for the same price. According to Kronschnabl, "The price is related to

the value the customer gets and a BMW car owner gets more value for the price the customer

pays. For instance, the 320i model comes with automatic transmission. The total cost of

ownership is low and our car price is reasonable. Within the premium segment, BMW catered

to different price points...

BMW India was the first company to develop a luxury car dealership network in the country.

Though in India, most of the luxury customers did not want to visit automobile showrooms,

preferring instead for the vehicles to be shown to them at their homes / offices, BMW

decided to open dealerships. The company set up showrooms that were of international

standards. BMW also started BMW Studio in New Delhi, to provide the complete BMW

experience to customers. According to Kronschnabl, He looked at the existing dealerships

and most of them looked like covered parking. The customers should be given an experience,

not just show five cars parked next to one another...

Reaching the Customer

By 2015, India is likely to become the fourth largest market for cars in the world. Analysts

were of the view that the demand for vehicles in the premium segment would also grow. The

new generation of Indians in their 30s and 40's had become the main wealth creators, and

they played a major role in growing the demand for luxury goods in the country. According

to DebashisMitra, Director Sales and Marketing of Mercedes Benz India, Buying a luxury car

earlier was a taboo in India. The earlier perception was rich people are bad people. That taboo

is slowly, slowly going out. India will be one of the most important markets for automobiles.

Can BMW Retain its Position?

When BMW entered the Indian market, Benz was the major player in the luxury car segment

in India with a market share of 50%. At that time, analysts had said that Benz was an

aspirational vehicle, and BMW would not be able to challenge it seriously. In 2009, BMW

India went ahead of Mercedes Benz India in sales.

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In March 2011, BMW delivered 1,027 units to the customers. With this feat, it not only

retained its position as the top luxury car manufacturer in the country, but also became the

first luxury car manufacturer to sell over 1,000 cars in a single month in India. On the

achievement, Schaaf said that "This proves that BMW has a whole range of competitive

advantages: exciting new products, first class premium dealerships, superior customer

service, and a very strong and aspirational brand.

BMW Group, headquartered in Munich, Germany, is one of the most successful multi brand

premium automobile manufacturers in the world. The company manufactures, distributes and

sells passenger cars (including Sedans, Coupes, and Convertibles etc) and motorcycles.

BMW operates three business segments namely: Automobiles, Motorcycles and Financial

Services. BMW is the parent company of the Mini and Rolls-Royce car brands, and,

formerly, Rover (car)/Rover. The company's slogans in English are "The Ultimate Driving

Machine" and "Sheer Driving Pleasure". The company produces, and markets, a varied

range of higher end sporty cars and motorcycles. BMW has also manufactured the first

passenger car running on hydrogen ready for common use, although the production figures

are limited by the lack of a respective filling station net.

In addition to cars and motorcycles, BMW operates an aircraft engine division under the

brand name of Rolls Royce. The company has worldwide subsidiaries and manufacturing

plants in Germany, Austria, the UK, the USA, Mexico, Brazil, South Africa, Egypt, Thailand,

Malaysia, Indonesia, the Philippines and Vietnam. BMW Group is comprises of many

segments within its vast portfolio but I would be only concentrating on Automobiles. BMW

group are focused on fabricating a variety of tangible products, and also the group has many

intangible financial services. The BMW Group’s automotive which I am more interested in

this easy is portion of their portfolio consists of the three premium brands: BMW, MINI, and

Rolls-Royce of which I would be more only looking at BMW and would also demonstrate

their marketing. BMW is supported by 11 different model series which are: BMW C1, BMW

1 series, BMW 3 series, BMW 5 series, BMW 6 series, and BMW 7 series, BMW X 3, BMW

X 5, BMW X 6 and the BMW Z4, BMW M5, BMW M6, and BMW Z4 M.

BMW’s guerrilla marketing tactics for Mini

After BMW India discovered last year that over one lakh likes from its Facebook fans were

from India, it took less than six months for the brand to launch its luxury small car, Mini, in

the Indian market. Beetle of Volkswagen is the only competitor of Mini in the Indian market.

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Sale of premium segment cars, largely dominated by Mercedes, Audi and BMW in India has

been growing at a promising rate of over 50 per cent till the last quarter of 2011. Mini plans

to focus on brand building with strong marketing activities in the next two years to cash in on

the growing premium cars segment.

BMW is focused on a strong, surprising, daring and unexpected marketing strategy for the

Indian market, according to Dr Andreas Schaaf, President, BMW Group India.

In the overall marketing spends, the company will spend a large share of money on BTL

activities than on classic ATL activities, informed Bejamin Nagel, Head, Mini India.

Mini’s guerilla marketing strategy

The brand’s dummy cars floating on a lake near Delhi and being placed on the roofs of

skyscrapers is a new strategy adopted by BMW in India. While it may be a replication of

BMW’s global ‘daring’ marketing strategy, as its marketing officials call it, the step appears

seems to counter Volkswagen’s out of home strategy for Polo.

The brand is all set to work with multiple creative and events agencies to devise diverse

innovative ideas. “It is a premium brand, not a mass product; therefore mass media will not

be the key focus of our marketing strategy for the brand. Guerilla and experiential marketing

is at the centre of our plan for Mini in India, as it is in other markets,” asserted Nagel.

Optimistic in 2012

Schaaf said that BMW Group is optimistic about its marketing spends in 2012, despite a

significant increase in the excise duty in General Budget provisions and constant hike in fuel

prices, especially last year.

BMW India increased its marketing spend by 40 per cent in the first quarter of 2012 and it’s

only going to go up in future. “Though there is a sense of uncertainty in the market due to

reasons such as regulatory hurdles and fuel price, I am sure optimistic about the auto sector in

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India. China also went through a similar uncertainty, as did many other markets, but the

uncertainty will not affect our optimism. Our media spend will continue to grow,” he added.

Mini opened its first showroom in Mumbai and has received 100 bookings so far.

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SWOT Analysis

Strengths

BMW independently owned.

Product development on core platforms keeps its various brands distinct.

Focus on being the best.

Extensive distribution channels

BMW implemented a strategy which encompassed supportive marketing programs.

A hydrogen combustion engine offering.

Weaknesses

Fails to appeal wider range due to affordability of the car.

Maintenance cost of the car is expensive.

Competitors had exclusive dealerships

Its associated with highly expensive products and is perceived to be affordable only

by those in the upper level of the society.

Opportunities

Global expansion entering into new markets.

Huge demand for small cars in the market.

Asia is the key market for BMW.

There is a market for luxury/performance cars.

Leverage brand image.

Dealer expansion.

Growing market segments can with sub-brand models.

Threats

Oil prices going higher and higher.

Government policies changing.

Environment/social issues.

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Marketing Mix For BMW

4 P’S

Product

The most important element in the marketing mix is the company’s product because it

provides the useful requirements required by the customers. For eg. A car that does not start

in the morning will not be liked by consumers. Marketing managers develop their products

into brands that help to create a single that helps to position in the minds of customers. The

present models are-BMW 3 series-sedan, coupe, convertible, touring, and compact.

BMW 5 series-sedan, touring, BMW 6 series-coupe, convertible.

BMW 7 series-sedan, BMW Z4-Roadster, BMW X3-SUV, BMW X5-SUV, BMW M-

Convertible, coupe

Each product goes through what is known as a life cycle process.BMW knows the

importance of making sure that not all of its products are at maturity at once, as this might

result in the product beginning to decline at the same time,normally the life cycle has a

particular year when the car launches and after certain years it has on matured leave where

the company has to get something in the series to launch where customers can enjoy the

product to the fullest and with few new features in the car. For eg BMW X5 launched in 2000

and then the company launched higher version of X5 in 2006.

It is clear that BMW has spread over a period of time the life cycle of these products.

The PLC not only helps to ensure more constant income but also allows for the development

of replacement products on a consistent basis. BMW has also been expanding its portfolio

recently and this can be seen by the presence of some new product launches in the last few

years. The above products are all settled. Many of them have been being manufactured for

many years now with several re-designs and re- launches.

Price

BMW price ranges from approximately 30lacs-3crores.There are many factors that affect the

car prices such as engine size, motor sport versions etc.Lets take an example of the price

strategy that has been used by BMW-3series in competition oriented pricing . Most of the

research shows that such as VW, Audi, AlfaRomeo etc in the 3 series market is based around

the same price. This is because the car industry is large and production costs are not

soimportant and creating the largest profit is not as necessary as it would be for a smaller

company.

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Place

BMW use superior market dealerships and imports for non dealer network countries, they

have four car manufacturing plants in the UK. There are more than 156 dealers in the UK

who are franchised to sell BMW cars, additionally 148 dealers are franchised to sell mini.

Worldwide BMW operate in more than 100 countries with approximately 4000 plus dealers

which are authorised to sell both new and used cars, parts and after sales service products.

The distribution pattern is manufacturer to dealer and finally the consumer.

Promotion

BMW has always focused entirely on their cars with same advertising company WCRS being

used since 1979. A broad range of advertising is used by this such as television from

branding campaigns and new car launches, the press with tabloid weekend colour

supplements, regional publications and magazines, outdoor campaigns, sales literature,

brochers, etc.

BMW association is the james bond films since 1983,19994,19997 and 1999. Eg- In the

world is not enough bond drove the new z8 before the car launched and in Austin powers 3-

the mini cooper was used. This kind of move has helped BMW to position its car in front of

vast audiences around the world and also this indicated that the car was fast ,more

technologically advance d and had created an image in the mibd of future customers that have

best quality safety, they are different from others.

With BMW viral marketing started developing, BMW films was the driving force of BMWs

successful interactive marketing campaign, the ultimate Driving machine. In 2001, BMW

released a film called The HIRE a series for feature-quality short films for internet launch.

Each short film featured a central character called the driver who helped people through

difficult circumstances using driving skills in a prominent BMW. BMW films series the

promotional campaign consisted of tv spots that which showed trackers and print and online

advertising. BMW films was a non-traditional concept to show what makes a bmw a bmw.

But it was much successful concept it increased the BMW sales in 2001 by 12.5% as

compare to 2000.

The short films were recommended by 94%. It proved to be immensely popular that BMW

produced a free DVD of the series which included extra features. With this kind of massive

promotional activities BMW was able to achieve in the mind of the customers wish for

individualisation and emotional product as these promotional activities somewhere or the

other make consumers feel like that.

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Most of the people argue that there is always a chance to learn new things. How big is the

company and how successful they are companies needed to think and make plans for them.

For future marketing strategies, BMW cars are considered to be cars for the rich and not the

poor. They can enter the market with small life style cars and they can expand the market. On

the other hand its accessories and parts are expensive for maintenance which can reduce the

desire of the people to purchase the car. In addition this can get few new models in the bmw

mini and can target a different market segment and target females, middle-class and upper

middle class people. BMW can also create a good relationship with female buyers and they

need to do more promotional strategies to attract more of female consumers with like of

limited edition especially for females in existing models or new models in this addition just

by giving a few models in this addition which the females may like. For example- pink colour

,stuff toy, trendy seat covers etc. The Asia pacific region is becoming increasingly crucial for

global automotive sales. Although it has been overshadowed by Chinas rapid growth in

recent years, bmw needs a steady growth and needs to concentrate on the steady market out

there. The markets are going to be huge as there is more population in these countries as

compared to USA and UK.And BMW also needs to come out with more interactive

marketing campaigns. These kind of strategies will create good brand value for the company

and the company will portray itself as it wants in front of the consumers.

BMW wants to double its shares in the next 3 to 5 years and for this it is doing a lot of R&D

as that is its strength and it has an edge over its competitors.

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INFINITY CARS PVT. LTD (BMW/ASTON MARTIN &MINI COOPER

DEALERSHIP)

BMW India announced the opening of Infinity Cars showroom in Worli, its dealership

facility in Mumbai. Infinity Cars brings to Mumbai the BMW standards of sales and service

and the same international experience as any BMW dealership worldwide. The new

showroom is located at Seth MotilalSanghiMarg, opposite Nehru Planetarium in Worli and

the workshop is located in Chembur. The showroom and workshop are headed by Ms.

PoojaChoudary, Managing Director, Infinity Cars.Commenting on the occasion, Mr. Peter

Kronschnabl, President, BMW India said, "Today we are proud to launch an innovative

concept of a car showroom in India. This BMW showroom will be the first of its kind, split in

two levels with a reception area on the ground floor, and a car display on the first floor that

has evolved on the signature-BMW concept of street display and the pavement flanking

alongside the customer area."

Our partnership with Infinity Cars in Mumbai has been very successful and is reflective of

BMW's efforts to connect with its consumers and provide high quality services that are at par

with international standards. We are confident that this partnership in Mumbai, the financial

capital of India, will significantly add momentum to our ambitions in India," Mr.

Kronschnabl added further.

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The Infinity Cars showroom covers nearly 7000 sq ft of space and offers the customers a

unique retail environment. All operations related to sales are efficiently covered from the

space, which ensures comfort to the customer at the point of sales.

The approximate area of the Infinity Cars workshop in Chembur is 18,000 sq ft and has 9

service bays that can service 35 to 40 vehicles a day.

Ms. PoojaChoudary, Managing Director, Infinity Cars said, "Working with BMW in Mumbai

for the last two years has been a very enriching experience. It is an exciting opportunity for us

as BMW symbolizes dynamic forward moving people and is among the most coveted

premium brands in India. We are fully committed to this partnership and look forward to an

exciting time ahead."

As with every other BMW dealership, Infinity Cars has provided its staff intense training in

management of sales, service, spare parts and business systems to ensure customers receive

best-in-class pre and post sales ownership experience. A team of service engineers have also

been trained at BMW's training centers in Singapore, Malaysia and Germany.

If you’ve laid down and given thanks to your maker for seeing many more of those Aston

Martins and BMWs on Indian roads over the last few years, there are two people to whom

you should also pay your respects – husband-wife duo Pooja and LalitChoudary. While she is

the MD of BMW dealership Infinity Cars in Mumbai, he is the Director of Performance Cars

– the first Aston Martin dealership in India.

Infinity Cars is the dealer for BMW cars in Mumbai (worli) and Madhya Pradesh and also the

India distributor for Princess Yachts (part of the LVMH group). The company was founded

in 2006 by its Directors, LalitChoudary and PoojaChoudary.

PoojaChoudary had started her career as an architect and practiced for four years in india and

two years in hongkong ,she later got married and returned to india with her husband in 2005.

It was later in 2006 that they decided to start a car dealership in india.

Pooja and lalitchoudary jointly started infinity cars in 2006 with just two employes. Today

they have a staff of more than 300 people. In 2007 they began sales by selling seven cars a

month and today they sell over 100 BMWs in a month.

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Lalitchoudary was a banker with Lehman Brothers in Hong Kong until 2005. After helping

pooja set up infinity cars in Mumbai he looked around to see which luxury car maker he

could get to india . In 2011 he brought in performance cars and set up the first aston martin

showroom in india. The dealership brought in the right diagnostic tools and service centres to

support the Aston Martin market in India.

The Aston Martin Showroom located at Kemps corner is small yet beautifully built. There is

space for just two cars on display.

Aston Martin is a name that needs little introduction. It has always stood for fine, civilized

high performance sports cars, designed and produced by skilled craftsmen. There is a special

place in the market and in the hearts of owners for classic sports cars which conform to this

ideal. These are cars which bring to life the freedom and enjoyment of the open road.

Even so, every Aston Martin is very much a product of today’s technology. New resources

and new investment in the latest computer aided design and engineering facilities, in

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statistical process control and many other leading edge disciplines are ensuring that for Aston

Martin, the future is every bit as bright as its illustrious past .

Performance Cars has an in-depth understanding of the needs of the high end market. It has

built infrastructure and facilities required to service top end brands and has developed an

organization trained to meet needs of its premier clients.

The 97-year-old car manufacturer, which has gained worldwide fame after being portrayed in

James Bond movies, finally forayed onto Indian roads with the opening of their showroom in

Mumbai on April 15. Aston Martin will offer its entire range in India except Cygnet. The

range includes the basic V8 Vantage to the ultra-exclusive One-77 Hypercar, he said. The

cars are priced between Rs 1.35 crore to a whopping Rs 20 crore.

The opening of the Aston Martin Mumbai showroom strengthens the company’s global

dealership network to a total of 134 dealers in 42 countries. As part of the company’s

ongoing expansion plans Aston Martin has recently entered into Brazil, Chile, Croatia, Czech

Republic, Greece, Taiwan and Turkey whilst seeking continued growth in new markets as

well as emerging markets including China and the Middle East.

Aston Martin remains at the forefront of contemporary manufacturing, a cultural force that

embodies design and engineering excellence, and a brand with a truly special heritage.

Renowned around the world, Aston Martin enters the next decade with the promise of radical

innovation and change, without losing the core qualities that make this strong, independent

British brand so widely revered.

Performance Cars, a division of Infinity Cars Pvt. Ltd., is the official dealership of Aston

Martin in Mumbai.

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After a successful association with the BMW Group over the last five years, Infinity Cars,

one of India’s leading BMW dealers was appointed the first dealership for MINI in India.

Infinity Cars introduced the iconic MINI cars in style – MINI, MINI Convertible and MINI

Countryman- at their showroom off Santacruz Linking Road, Mumbai’s fashion high street.

Car enthusiasts also had the opportunity to experience the iconic brand first hand. The 12,000

square foot, two-storey facility in Mumbai is the home to Mini’s entire line-up for India. The

showroom with its uber cool vibe will soon have an international cuisine all day dining

restaurant, giving it a contemporary lifestyle experience for its patrons. With this distinctive

concept, Infinity Cars hope to bring life’s great passions for cars, food and music together in

a unique environment unseen in Mumbai.

The Infinity Cars Showroom in Mumbai becomes the first exclusive Mini showroom in India.

The dealership is run by the dynamic and versatile entrepreneur Mrs. PoojaChoudary,

Managing Director, Infinity Cars. She is also wife of Mr. LalitChoudary, MD, Performance

Cars, the exclusive Aston Martin dealership in India.

Infinity Cars sets a benchmark in quality with its cutting edge efficiency and vouches to

deliver uncompromising service to its clientele in India. Service centers for the Mini will be

situated in Worli and Chembur

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The iconic Mini brand, once under the British ownership and now part of the BMW Group

has finally landed on the Indian shores with the inaugural of the first Mini showroom in the

country. Over 100 bookings have already been made from all over the country in the run up

to the launch of the Mini range of cars in India.

The Infinity Cars Showroom in Santacruz, Mumbai has been appointed as the first exclusive

Mini dealer in the country. The 12,000 square foot, two-storey facility in Mumbai will be

home to Mini’s entire line-up for India that includes its hatchback, convertible and SUV

models namely, the Mini Cooper, Mini Cooper S, Mini Convertible, Mini Cooper S

Countryman and Mini Cooper S Countryman High. The facility will soon have an all-day

restaurant as well. Service centers for the Mini will be situated in Worli and Chembur. The

BMW Group will also launch two more dealerships in India later this year, which will be

based in New Delhi under Deutsche Motoren and Bird Motoren.

BMW had officially introduced the Mini brand in the country at the 2012 Auto Expo in New

Delhi earlier this year and starting today all the Mini models will go on sale in the country,

which have been brought into the market as Completely Built Units (CBU.)

With the launch of the new showroom in Mumbai, Mini brand has officially entered the

100th country in the world, ever since the brand was incepted in the U.K.

The prices of the entire range of Mini cars for India are mentioned below:

Mini Cooper – Rs 25.50 lakh

Mini Cooper S – Rs 28.60 lakh

Mini Convertible – Rs 30.70 lakh

Mini Cooper S Countryman – Rs 32.80 lakh

Mini Cooper S Countryman High – Rs 35.90 lakh

(All prices are ex-showroom, Mumbai.)

The Mini Cooper was a popular subcompact car produced by the British Motor Corporation

from 1959 through 2000. Its successor, the MINI, is manufactured by BMW AG of Germany.

Today's MINI, which is capitalized by BMW to distinguish itself from the original Mini

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Cooper, bears no relation to its predecessor other than the basic exterior design concept. The

MINI has been in production since 2001

BMW India has launched the much-awaited Mini brand in India at the Auto Expo 2012 in

New Delhi. BMW has launched the entire range of Mini which includes the Mini Cooper,

Cooper S, Cooper Convertible and Cooper Countryman. Prices of Mini Cooper range starts

from Rs. 25.50 lakhs for the Cooper, Cooper S for Rs. 28.60 lakhs, Cooper Convertible is

priced at Rs. 30.70 lakhs and the sports utility variant 'Cooper Countryman' is priced at Rs.

32.80 lakhs (Rs.35.90 for Countryman High). These prices are ex-showroom. Mini Cooper

and Mini Cooper Convertible share same engine and are powered by a 1.6 litre petrol engine

which generates maximum power of 122 bhp at 6000 rpm with maximum torque of 163 nm

at 4250 rpm. The Mini Cooper S and Cooper Countryman share same engine and are

powered a turbo charged 1.6 petrol engine which generates maximum power of 184 bhp at

5500 rpm with maximum torque of 244 nm at 1600 rpm.

Bird Automotive, the official after sales service, will cater to MINI customers through its

workshop in Sector 14, Gurgaon. “We have been working with BMW Group India since

2007 and this association has been very successful and tremendously exciting. We are thrilled

to be a part of the MINI celebration in India with the launch of the new MINI dealership by

Bird Automotive in Delhi. We look forward to an enthusiastic response from our customers

for the charismatic and exciting MINI,” said Gaurav Bhatia, Managing Director, Bird

Automotive. In view of the recent petrol price hike and hike in diesel car prices, Schaaf said

that there are no immediate plans of bringing in diesel powertrains for the brand in India but

it may happen later. He said that the Mumbai dealership has already sold more than 50

vehicles in the last month and expects a similar response in New Delhi

Bird Automotive VasantKunj, is an exclusive MINI dealership that offers a display area of

over 5000 sq ft. It has a six car display set-up spread across two floors. The new MINI

dealership has been uniquely designed in a modern urban layout that represents the iconic

MINI Lifestyle. Alongside its loft architecture, the dealership also has a MINI DJ Lounge,

MINI Lifestyle Collection and MINI Accessories on display. Gaurav Bhatia, Manager

Director, Bird Automotive said, “We have been working with BMW Group India since 2007

and this association has been very successful and tremendously exciting. We are thrilled to be

a part of the MINI celebration in India with the launch of the new MINI dealership by Bird

Automotive in Delhi. We look forward to an enthusiastic response from our customers for the

47


charismatic and exciting MINI.” Bird Automotive will provide after sales support to MINI

customers from its workshop located at MG Road, Opposite Sector -14, Gurgaon. MINI

Financial Services is also launched as a separate brand under BMW Financial Services India.

MINI Customers can now avail attractive finance and insurance options under MINI

Financial Services. In addition, MINI Financial Services will also offer a comprehensive

insurance package: MINI Smile (similar to BMW Secure) which will be a value-add for

MINI customers over and above their basic motor insurance

Activities and events

Automobile trade shows in India display the latest automobile models and automobile

accessories. All the prominent automobile players of India and the world take part in these

trade shows. Automobile Industry in India is growing very rapidly and all the big automobile

players are making a beeline to enter Indian market. A number of automobile expo are held in

India. Read about information on major auto & automobile trade fairs & events to be held in

India.

The competitive nature of the automobile industry has prompted the companies to take up

new and innovative marketing strategies to thwart the competition. The B segment of cars is

the segment which sees maximum competition as the consumer has a number of models to

choose from and it's the volumes which drive the margins.

All the companies as a part of their marketing strategy offers a range of vehicles in all the

segment to make sure that the customer is driving one of their vehicles only.

Advertisements on the Audio visual medium are a rage as it gives the car makers an

opportunity to flaunt their cars. Flashy cars can be demonstrated on television but when it

comes to the finer prints of the cars, print and online media comes to the rescue.

The online medium offers a greater flexibility to the car companies since they come with a lot

of interactive features like demonstrating the interiors of the car with its salient features.

The print medium on the other hand provides an opportunity to the car makers to explain the

function of a car in detail.

Celebrity endorsements and testimonial advertisements have come a long way and they are

also doing their bit to sell the cars.

There are many promotional events that take place at infinity cars. They usually have:-

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1) Test Drive events

2) Showroom events

3) Weekend fest events (annually as per BMW India)

4) New product launches events

5) Self events

1) Test drive events- These events take place monthly; it usually takes place in a city

mall or a bank which provides a platform for the company to showcase its product.

From each sales team at least three or four sales consultants are sent for the event,

there they explain the prospective customers about the product, its features and

interested customers are allowed to take a test drive and the sales consultant has to

accompany the customers during the test drive. The sales consultant asks the

prospects to fill in their details in the feedback form. The sales consultant does the

follow-up with these prospects within the next 48 hours.

2) Showroom events- These are the events which are organised within the showroom

itself. The existing customers and the prospective customers are invited for the event

which is held on a grand scale, with international artists invited to perform and with

cocktails and alcohol for the guests. BMW cars are showcased at the event and

prospective customers are asked to fill in their details. Follow –up is done by the sales

consultants after 48 hours.

3) BMW weekend fest- This event is held annually on the guidelines of BMW India, it is

a two day event and all the guidelines of the event are given by BMW India with set

rules and regulations. In this event customers are invited along with their families, it is

a fest which is organised for kids and different games and activities are organised for

the kids and their families so that they feel comfortable. The sales consultant shows

the customers the cars that are on display and the prospective customers are asked to

fill in the feedback form with their contact details. The prospects on attending the

event are presented with a BMW goody bag.

4) New product launch- This is the event that is set up on a grand scale as per BMW

India. A new BMW which is launched is showcased at the event and a celebrity brand

ambassador is invited to reveal the new product.

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5) Self events-These events are not on the guidelines of BMW India and are organised

by infinity cars itself, the customers are invited for the events and cocktails and

alcohol is brought in for the guests the sales consultants are thre to handle customer

enquiries and thre to help the customers.

An e-invite of the BMW weekend fest that is usually sent to customers

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Major Events

Cocktail Movie Launch Party at the Mini Cooper Showroom

The Mini Cooper showroom in Santa Cruz was pouring with enthusiasm on the 6th of July as

fans waited eagerly for the party of the year to begin. The Mini Cocktail Party one of the

most awaited, with fans who were frenzied with enthusiasm. The stars kick- started the party

with their lavish entry, where Deepika drove the Mini Cooper, seated beside her was the

stunning Diana Penty with Saif seated at the back.

Once the stars entered the paparazzi went wild, and the fans present were ecstatic and

overjoyed during which a small camera mishap took place that was sorted immediately by the

production house.

Fans went gaga clicking pictures with placards from the movie, the placards were on display

and everyone could click pictures and also have them framed on the spot. The fans were

contended with the perfect cocktail party, their favorite stars and memorabilia for a lifetime.

Among all the gifts the fans also got Mini Cooper badges and Bands.

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Everyone was in high spirits as the party had 3 Cocktail drinks named after the three stars,

Gautam, Veronica and Meera, the drinks were the perfect match to their personality. Now

that’s how a perfect Cocktail is served. Also present at the party was director HomiAdajania

with stylist wife AnahitaShroffAdajania, along with the other cast and crew from the movie.

Overall the Cocktail party was the perfect fusion of great music, food and drinks. It was

extraordinary and had fans craving for more.

The e-invite that was sent to the guests before the actual event, more than 300 such invites

were sent to BMW owners and prospective customers for the mini cooper and the BMW.

This turned out to be a successful marketing strategy for both the movie and BMW, not only

the movie turned out to be successful this event created 100 new BMW prospects and was a

good platform for people to do networking and create future business prospects.

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New BMW 3 Series Launch

The Ultimate 3: Introduced in the Luxury and Sport Line, the all-new BMW 3 Series sets a

new dimension in dynamism and elegance.

Engineered with passion, sixth-generation of the world’s most successful premium sedan

combines benchmark design and pioneering technology with revolutionary performance and

unmatched efficiency

Mumbai. The all-new BMW 3 Series sedan was launched today in India. The sixth generation

of the world’s most successful premium sedan was unveiled by Mr. Sachin Tendulkar, the

legendary sportsman, at an exclusive launch event.

The all-new BMW 3 Series is produced (CKD - Completely Knocked Down) at BMW Plant

Chennai and the deliveries start at BMW dealerships across India from July 2012 onwards.

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According to Dr. Andreas Schaaf, President, BMW Group India The all-new BMW 3 Series

is a vehicle that has an unbeatable profile and is born from pioneering technology, a beautiful

design and a lot of passion. In addition to the powerful performance and increased efficiency,

the all-new BMW 3 Series offers unparalleled comfort and space. Since its inception, the

BMW 3 Series has been the undisputable leader in its segment and there is no doubt that the

sixth-generation of the BMW 3 Series will surpass the magnificent success that its

predecessors received. The new BMW 3 Series will establish a new benchmark in the Indian

luxury car segment and contribute to BMW’s winning streak in India.

The all-new BMW 3 Series is available in two exclusive design schemes – Sport Line and

Luxury Line. Sport Line celebrates the rush of adrenaline with sporty styling and interiors

while Luxury Line indulges you to move in style with elegant contours and luxurious

features. The all-new BMW 3 Series exhibits versatility that makes it unique by offering

customers a choice of vehicle that expresses who they are and conforms to their personal

preferences and lifestyle.

The all-new BMW 3 Series is available in a diesel (BMW 320d) and petrol variant (BMW

328i). The all India ex-showroom prices are as follows –

BMW 320d : INR 28,90,000

BMW 320d Sport Line : INR 31,50,000

BMW 320d Luxury Line : INR 31,50,000

BMW 320d Luxury Plus : INR 36,90,000

BMW 328i Sport Line : INR 37,90,000

Price prevailing at the time of delivery will be applicable. Delivery will be made ‘ex-

showroom’. Ex-showroom price excludes Road tax, RTO statutory taxes/ fees, insurance and

Octroi (if applicable). Prices / options subject to change without prior notice.Colors available:

Alpine White and Melbourne Red as non-metallic colors and Black Sapphire, Glacier Silver,

Havanna, Imperial Blue Brilliant Effect and Mineral Grey as metallic colors.

Rooted in history, moving forward in design – the all-new BMW 3 Series receives a fresh

and contemporary face that interprets the iconic features of classic BMW design in a new

way. The all-new BMW 3 Series is the first model to feature the striking new design

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language; with classic BMW double round headlights, now topped off by 'eyebrows’,

reaching the edge of the kidney grille. The wide stance and striking corona rings in headlights

give extra intensity to the classic BMW focused look and a more impressive on-road

presence. But it is the sum of all details – the short overhangs, the long wheelbase, the coupe-

like roofline and the distinctive side creases – that creates the exemplary sporting appeal.

The larger dimensions of the all-new BMW 3 Series (length +93 mm, wheelbase +50 mm)

mean that the rear seat passengers can now enjoy extra legroom. Behind the fully contoured

front seats, 14 mm of additional knee room and 8 mm of extra headroom further enhance the

passenger’s comfort. The volume of the luggage compartment has been increased by 20 litres

to a total of 480 litres.

The cockpit is angled towards the driver by seven degrees and puts all the important controls

within easy reach to provide a sense of personal control and comfort. Seats in the all-new

BMW 3 Series are electrically adjustable on both the driver and front seat passenger sides.

The BMW iDrive (the on-board Driver Information System) with 6.5 inch high-resolution

display and BMW Radio Professional are featured as standard in the all-new BMW 3 Series.

BMW Navigation Professional (integrated Global Positioning System - GPS), with an 8.8-

inch high-resolution display and rear-view camera debut in the all-new BMW 320d Luxury

Plus and all-new BMW 328i Sport Line. The full-color Head-Up Display in the all-new

BMW 328i Sport Line projects driving information directly into the driver’s field of vision

without diverting driver’s attention from the road ahead.

An athlete in top condition, the all-new BMW 3 Series, is always ready to deliver a first class

performance. With the new powerful engines and impressive efficiency, its sporting genes are

apparent on every road, every mile of the way. The all-new BMW 328i accelerates from 0-

100 km/hr in 6.1 seconds with a top speed of 250 km/hr and the all-new BMW 320d

accelerates from 0-100 km/hr in 7.6 seconds with a top speed of 235 km/hr. BMW

EfficientDynamics doubles the Sheer Driving Pleasure of the all-new BMW 3 Series with

features such as Auto Start-Stop, ECO PRO mode, Brake-Energy Regeneration, Intelligent

Lightweight Construction, Electronic Power Steering, 50:50 Weight Distribution and many

other innovative technologies. The fact that the all-new BMW 3 Series is also very fuel

efficient makes it an outstanding vehicle, the best in its class.

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All models of the all-new BMW 3 Series also feature the new ECO PRO mode as standard,

enabling efficient driving and reduced fuel consumption. Using the Driving Experience

Control switch, the driver is able to choose between different driving modes to suit the

driving conditions. (ECO PRO, Comfort, Sport and Sport+). *Sports+ available only in the

new BMW 328i Sport Line.

The new eight-speed automatic transmission performs smooth, almost imperceptible gear

shifts. At any time, in any gear, the transmission collaborates perfectly with the engine,

enabling it to develop its full power and efficiency. The all-new BMW 328i Sport Line also

features Shift Paddles for facilitating more convenient manual gear shifts.

BMW 3 series is here... let's have some drum rolls and some trumpets because this beast is

one delightful machine that is a perfect blend of mean and muscular looks, and at the same

time is elegant, stylish and has a panache that's unmatchable.The BMW 3 series is here to

challenge the Audi A4, Mercedes C Class and the likes. Gracing the launch event was none

other than the first brand ambassador of BMW India, Master Blaster, Sachin Tendulkar along

with Andreas Schaaf, President, BMW Group India.

The new improved 2012 3 series comes at a starting price of Rs 28.90 lakh for the 320d.

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Sachin Tendulkar as the brand Ambassador of BMW

India's top cricketer Sachin Tendulkar, an avid fan of Italian sports car Ferrari, has become

the brand ambassador for rival company BMW.

Sachin launched BMW's new 3 series sedan here. Sachin owns a BMW 5 series and SUV X5,

while wife Anjali owns a BMW 3 series.

Tendulkar was previously brand ambassador for Fiat, Ferrari’s parent company, in 2001 for

its small car Palio.

Tendulkar loves Ferraris, but it’s not that his interest in cars ends with the Italians. He is as

much passionate about BMWs and owns a few of them, according to an industry insider.

This is the first time BMW has associated itself with a celebrity.

The all-new BMW 3 series sedan by German luxury car maker BMW in petrol and diesel

variants is priced between Rs 28.90 lakh and Rs 37.90 lakh (All India ex-showroom). The

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all-new BMW 3 Series is available in two exclusive design schemes- Sport Line and Luxury

Line.

The all-new BMW 3 Series is a vehicle that has an unbeatable profile and is born from

pioneering technology, a beautiful design and a lot of passion, BMW Group India president

Andreas Schaaf mentioned at the launch.

The new BMW 3 Series will establish a new benchmark in the Indian luxury car segment and

contribute to BMW’s winning streak in India, he said adding that BMW enjoys 40 market

share in the luxury car segment in the country.

He said the slowdown in the economy has affected the sales as the year-on-year growth

remains almost the same (flat).

Schaff, however, said that a (interest) rate cut by the central bank could perk up the demand

going forward. The company’s June sales stood at 750 units.

He said that the company has lined up four more launches for this year.

The world will see the brand new six series Coupe, one of the most beautiful cars BMW has

come up with in last 15 years. Its almost a sports sedan. Everyone will see the new

refreshment of seven series. It will also be launched in second half of the year. BMW will

also launch the X1 and X6 in new looks. These four major launches will come up in the next

4-5 months in India.

Stating that BMW cars have been one of his passions from early days, Sachin Tendulkar said

that he drove this car in London and it felt incredible.

To him above all being a car enthusiast, safety is also equally important. He was really

impressed. It is absolutely stunning and the interiors are unbelievable. It has got a lot of

space. Compared to the earlier ones, this is far more spacious, Tendulkar added.

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Data Analysis

1) Referral program(referral marketing)

2) Competitor Analysis

Referral program (Referral marketing)

Everyone knows that word of mouth is the best form of advertising. A genuinely satisfied

client will tell their friends. But, have you ever been told about a specific business only to

forget its name. You still remember that a friend had a recommendation, just not specifically

what it was. That is often the case with word of mouth. It holds weight because it is from a

trusted friend, but it lacks staying power because it is usually verbal. While the samples and

examples provided are specific to the salon/spa industry, the basic principles can be used in

many business types and models. In today's economy this is a crucial way to grow your

business and your businesses profits.

Referral Cards are written word of mouth. It gives the potential new client a tangible

reminder of the exact business that was recommended. Now, even weeks or months later they

will be able to remember your business. Your business goes with them after the initial

recommendation.

The other key factor that a referral card program offers is the incentive. It offers an incentive

for the new client to come into your business and an incentive for your existing client to "tell

a friend”.

Referral cards offer two benefits: word-of-mouth advertisement and an opportunity to

strengthen the business relationship with the referral partner. These benefits materialize

best if the networking business creates a program specifically aimed at referral partner to

maximize effectiveness. Part of a specially designed referral card program includes the

manner in which the cards are delivered or sent. Creativity and personalization is the key to

getting the referral partner excited, willing to participate in the referral card program and

spread a good word or two about the business.

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Referral marketing is a structured and systematic process to maximize word of mouth

potential. Referral marketing does this by encouraging, informing, promoting and rewarding

customers and contacts to think and talk as much as possible about their supplier, their

company, product and service and the value and benefit the supplier brings to them and

people they know.

Referral marketing takes word of mouth from the spontaneous situation to one where

maximum referrals are generated.

Online referral marketing, using digital marketing as a platform, is the internet based

approach to traditional referral marketing. Given the advances in tracking customer behavior

online through the use of web browser cookies, online referral marketing provides a high

degree of tracking and accountability

Benefits of referral programs

A study conducted by the Goethe University Frankfurt and the University of Pennsylvania,

on referral programs and customer value which followed the customer referral program of a

German bank that paid customers 25 euro for bringing in a new customer, was released in

July 2010.According to Professor Van den Bulte, this is the first ever study published on the

financial evaluation of customer referral programs. The study found that referred customers

were both more profitable and loyal than normal customers. Referred customers had a higher

contribution margin, a higher retention rate and were more valuable in both the short and long

run.

On whether customer referral programs are worth the cost, the study says that it records "a

positive value differential, both in the short term and long term, between customers acquired

through a referral program and other customers. Importantly, this value differential is larger

than the referral fee. Hence, referral programs can indeed pay off.

It is quite possible that there is no better, more effective method of advertising than referrals

from clients. They have experienced firsthand the value of teaming with a Virtual Assistant,

and their respected word and opinion almost instantly propels into a “trusted agent” status

with the associate whom they are sharing the benefits of a VA with.

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Referrals are tremendously powerful and offer any business a chance to grow like no other,

but there is one significant caveat. If one does not ask for them (and do so properly), one is

never going to be able harness their full potential. Creating a referral program is a great way

to do that.

Three tips for developing a business building referral program:

•The incentive should have real value for clients. Now, this doesn’t mean that one has to

break the bank, but one should offer something that is substantial enough to sincerely reflect

one’s appreciation for new business directly resulting from their referral.

• To make sure that the program should result in new business from both the referred party

and the existing client, it is important to focus on both the parts, if the latter part is being

ignored then that means one is missing out half of the benefits of the referral process. A good

way of doing this is to offer a discount that will be credited towards the referring party’s next

invoice. This encourages the referring client to continue to find new ways which will be

beneficial for the business.

• To announce the referral program in a variety of ways. To tell the customers it is a one-

time event. Send the customers postcards periodically to remind them of it. To post it on the

company website and to mention it in emails and newsletters.

Need for Referral Marketing in the Auto Industry

A major problem faced by many automobile companies today is in marketing the car sales,

maintaining previous year sales figures and to gain more customers instead of losing them.

The main objective of the business is to take care and satisfy the existing customers and

letting them send new customers through referrals.

While a business that is not doing well may have just tried any solution or technique or

strategy to improve its current condition but the one problem it may be ignoring is not taking

good care of its customers or ignoring the behavior of its customers.

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The base of any business to be successful is to maintain a strong relationship with its

customers. At home, we nurture our family and friend relations, and at work we deal with

business contacts and co-workers as well. While the world turns around, our lives revolve

around our relationships as well. As a basic human need, whoever you are, or whatever you

do, whether you are a real estate agent, a care salesman, establishing relationship, though

developed by acquired skills and training, is almost second nature.

Unfortunately the automobile industry today is not successful when it comes to maintaining

relationships with customers. The businesses today lose more contacts faster instead of

gaining new ones. According to a survey an average business loses approximately 19% of its

customer base every year. In some cases it was estimated to be around 40%, which means out

of every 100 customers a business is losing 19-40 of its customers every year.

Losses in sales actually means losing customers and the only solution to stop this is to

maintain a customer base and to follow up with the customers and keep in touch with them

regularly. This gives rise to the creation of a referral program system, through which the firm

keeps in touch with the customers and new customers are introduced through the existing

customers and in return the customers are provided with benefits for giving referrals.

The main benefits a business gets by doing this is:1) A business does not lose its customers;2)

The customers bring in more busines

How to Beef up business’ referral system!

A business referral system is nothing more than the old-age way of letting the customers

know that the business is thinking about them and they appreciate them and would like to

remain in contact with them. The traditional way of keeping in touch with customers was

through greeting cards or thank you cards.

The referral card system is something new. A business sends cards and thank you notes to its

clients. A business firm may even send a thank you note to someone who has bought an

expensive gift from them a year ago, a firm may send greeting cards to its customers on a

regular basis, a business firm may make all these marketing efforts to increase the sale of the

business but the major question is that are they doing it in the right way or most effective

way?

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Studies in the US on car sales have found out that even the simple effort of saying thank you

to customers have made a difference to the sales of these businesses. The studies even found

out that more than half of the sales come from repeat customers.

Examples of successful referral marketing programs

Dropbox - In 2009, Dropbox implemented a referral program to encourage their users to tell

their friends about Dropbox. Their referral program had a two-sided incentive for sharing: the

person who a sign up for Dropbox through a referral link gets more space than through a

normal sign up, and the referrer gets additional space as well. According to Drew Houston,

the Co-founder and CEO of Dropbox, at the Startup Lessons Learnt Conference on 23 April

2010, the referral program was inspired by the Paypal Sign up Bonus program. The referral

program permanently increased their signups by 60%.

Okabashi - In March 2011, Okabashi, the largest US manufacturer of sandals and flip-flops,

implemented their own customer referral program through Referral Candy, a customer

referral web app by Anafore. According to a case study released, the referral program became

one of their top ten drivers of external traffic, boosting sales within a week of

implementation. Referred customers also spent 13.2% more on average compared to regular

non-referred customers

Case study

Referral Campaign Adds 26,000 Customers and Prospects In Six Months

Studies show that two-thirds of all economic activity is influenced by customer

recommendations, proving that referrals from friends and associates are the most trusted

source of information for those considering buying products or services.

Lear Capital, a Los Angeles-based precious metals company, can attest to the benefits of

word of mouth. The company's most recent referral campaign, a $50,000 Refer-A-Friend

Sweepstakes, resulted in 26,000 prospects and customers being added to their data base

within six months.

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Until a few years ago, Lear Capital did not enjoy such successful referral campaigns,

according to Kevin DeMeritt, president. The company had a rewards referral program in

place for years but, as the data base of customers and prospects grew, the program was

becoming increasingly difficult to manage. Regularly developing and distributing new

incentive materials; and tracking, managing, and reporting the resulting referrals was time

consuming and costly.

Realizing the importance both communicating with customers and managing the results, Lear

Capital began using ReferNow.com, an online referral service, to help streamline the process.

ReferNow provides the tools and technology platform to create customized referral

campaigns, track the results and distribute awards.

Further, ReferNow reports on the referral conversion rates, putting the return on investment

of referral business into measurable results. Since they started using ReferNow five years ago

business has increased by 9% resulting in the increase in annual revenue.By accelerating the

natural referral process, ReferNow.com has proven to be a cost-effective means of increasing

client base.

Infinity cars privilege customer referral program

Objective: Generate referral leads through existing customers.

Validity: July 2012-Dec 2012

Offer: Customers filling referral card (fresh lead/case) will be entitled for a dinner

voucher/gift voucher worth Rs 2000-3000.

For vouchers we can tie up with

A) Restaurants

212, worli

Punjab grill (palladium)

TGIF (palladium)

Manchester united café

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Jewel of India

The comedy store (palladium)

B) Gyms and spas

JCB spa

Gold’s gym

Moksh gym and spa

After the referral turns into a customer, the customer who has given the reference gets a gift

voucher worth Rs 25000 from BMW lifestyle items

Procedure

• Step 1:a)During the delivery of the vehicle, the sales consultant explains the customer

referral program to the customer.Referral card to be collected from the CRM

department and needs to be submitted back to the CRM once filled.The referral card

is handed over to the customer asking him to give atleast 5 references of any known

relatives or friends for purchasing the vehicle from infinity cars pvt.ltd.b) Sales

consultant to call the existing customers to inform them about the referral program

and get the card filled which is then submitted to the CRM department.c) Inform the

customers about the program in detail.d) Advertise about the referral program.

• Step 2: Customer to give atleast 5 referrals. Customer to handover the card with

details of the referral for claiming the benefit. Sales staff needs to follow up with all 5

referrals in the next 48 hours and give feedback to CRM department. CRM team will

do the follow up call to recheck the status of the feedback submitted by the sales

person.

• Step 3: After receiving the card from the customer, consultant needs to check that all

the details of the customer and the referral have been filled in the card. CRM

department needs to check if all the references given are fresh leads

• Step 4 On every closure the sales team will need to attach a copy of the referral card

and submit it to the CRM team to collect the BMW lifestyle gift voucher

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• Step 5: Marketing team to track the usage of the dinner vouchers and handle

payments for the same. On every closure the customer gets a gift voucher worth Rs

25000 from BMW lifestyle items.

Terms and conditions of the referral Program

1. This program is available to infinity car customers only.

2. Infinity cars pvt ltd reserves the right to modify or discontinue this program at anytime

without notice.

3. The referring customer will receive acknowledgement of their submission via email.

4. In the event if the referral does not qualify for the reasons listed, the referring individual

will receive notification within 7 days via email.

5. You may not refer yourself.

6. You may not refer any person who is already a Infinity customer.

7. In order for the referral to receive their reward, they must provide their name at the time of

referral by completing the referral card.

8. Mandatory to give 5 referrals.

9. This program cannot be clubbed with any other offer or promotion.

10. You must have internet access and valid email to be eligible to receive the privileges and

benefits of participation in the program.

11. For each successful referral under the Referral program, rewards are not transferable and

not redeemable for cash.

12. If infinity cars determines, in its sole discretion, that you have not compiled with these

terms and conditions or have otherwise abused the referral program in anyway, it may, in

addition to any other rights and remedies it may have against you, immediately and without

notice to you, terminate or suspend your participation in the referral program and withdraw

all rewards issued to you or to be issued to you.

13. This program cannot be clubbed with any other offer or promotions of infinity cars pvt

ltd.

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Referral Card Sample

Referral card sample

Infinity Cars Pvt ltd

Customer Referral Program

Customer name:___________________________ mobile:________________________

Car model:________________________ car number:____________________

Details of Referrals

Name contact no.

1._________________________ _______________________

2._________________________ _______________________

3._________________________ _______________________

4._________________________ ________________________

5._________________________ ________________________

SPECIAL REFERRAL OFFER

Terms and Conditions

1. This program is available to infinity car customers only.

2. Infinity cars pvt ltd reserves the right to modify or discontinue this program at anytime without notice.

3. The referring customer will receive acknowledgement of their submission via email.

4. In the event if the referral does not qualify for the reasons listed, the referring individual will receive notification within 30 days via email.

5. You may not refer yourself.

6. You may not refer any person who is already a Infinity customer.

7. In order for the referral to receive their reward, they must provide their name at the time of referral by completing the referral card.

8. Mandatory to give 5 referrals.

Warmest regards. _________________

(Sales Advisor) ___________________ 67


Competitor Analysis for BMW

As the Indian economy continues on its growth curve, against all odds, wealth creation is a

natural byproduct. And Indian consumers have always been dazzled by big brands, and their

correlation to social status – so it’s not surprising that the luxury car market has been growing

in leaps and bounds. The Indian consumers’ new willingness to spend has seen high-end,

high-status cars find their way into far more driveways than ever before. It’s almost as if

there’s a competition amongst consumers to see who can sport the bigger, better car. And this

has led to another competition, one of greater significance.

With big brands comes fierce and intense competition. Mercedes was the first foreign luxury

carmaker in India, and dominated the market for nearly 15 years. Even with the introduction

of several other luxury brands in the last four years, Mercedes managed to control over 50%

of the market – until last year that is, when its compatriots literally stormed in and crashed the

party. In 2008, BMW sold 700 cars less than Mercedes, but in 2009 BMW whipped past the

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market leader by selling almost 350 more cars. BMW saw its share of the market increase

from 9% in 2006, to a whopping 40% at the end of 2009. In total, BMW sold 3,619 units in

2009 – the highest number of luxury cars sold by a single manufacturer in India in a single

year, and an increase of almost 25% over the previous year. Mercedes, on the contrary, had a

dip in sales of about 10% over the previous year – stating a lack of inventory due to the

introduction of the new E Class as a reason.

India has been resilient in the face of the global economic meltdown, and this has reinforced

the faith that global automakers have invested in this market – especially in the case of the

German luxury triumvirate. As expected, other luxury brands are entering the market as well.

Tata’s Jaguar Land Rover are craving for a piece of the action – as are, at the absolute

stratospheric end of the market, Bentley and Rolls Royce. Each brand is expanding its

presence across the country by opening new dealerships, or, in the case of Mercedes,

revamping its existing setup. The three-pointed star is in no mood to admit defeat, and has big

plans for 2010 with the all-new E Class and GL Class. And, just to be sure, they’ve invested

Rs. 150 crore in a new state-of-the-art plant in Pune, which is also rolling out the new S

500L, which, at Rs. 1 crore, is the most expensive car ever assembled in India.

BMW India has a vast range of artillery themselves, and they’ve taken effective steps to

ensure a smooth and fast transition to become the luxury segment leader. Their aggressive

style, sporty undertones, and immense popularity with the younger generation are certainly

some of the reasons for the surge in sales. More importantly, BMW’s are meant to be driven

– perhaps a quality that resonates well with the new age of wealth creators in the country.

With the exceptional performance of their models, BMW caters to car lovers and not just

status seekers.

And with their high performance soul, BMW have cemented their brand recognition into the

hearts of many driving enthusiasts and luxury seekers alike. Plus, they’ve taken the lead in

the luxury SUV segment as well – with the X3, X5 and X6, and aim to continue in that vein

with the introduction of the entry level X1 later this year. And, of course, there’s jaw

dropping performance available from the likes of the Z4, not to mention the legendary BMW

M cars.

But, being the market leader also means that you have to be that much more vigilant. Audi

has also captured the hearts of many Indians, as was witnessed at the 10th Auto Expo

recently. BMW and Audi were under the same roof, but it was almost impossible to move

past the Audi display. Huge crowds cramped and stampeded just to get a glimpse of the Audi

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vehicles. In its market segment, Audi is the true winner when it comes to growth. The brand

managed to increase its sales by an impressive 50%. In 2009, Audi sold 1,658 units, as

compared to 1,050 units in 2008. You can be sure that Audi will be a strong contender for top

honours in the years to come, as the brand draws in more buyers courtesy of its ‘oh-so-sexy’

designs, its wicked panache, and the technological excellence under the hoods of its cars.

But, here comes the shocker. Although the Indian luxury market seems on a roll, it’s nothing

but a micro-dwarfed midget when compared to its neighbour, China. A glance at the sales

figures is all it takes to understand exactly why China is a force to be reckoned with. With

insurmountable spending power, China is truly every car manufacturers dream market. More

importantly, no one can doubt the fact that China has practically single handedly rescued the

entire automobile industry during the economic collapse last year. Here is how big their pie is

compared to ours – BMW India created a record by selling 3,619 units in 2009, while BMW

China sold an astounding 90,536 units last year, which is an increase of 38% from last years’

sales figures!

Mercedes India sold 3,247 units in 2009, while Mercedes China sold 68,500 units and had a

sales increase of 77%. But again, Audi comes out as the victor. Audi is the leader in the

luxury car market in China, and the VW owned manufacturer from Ingolstadt sold a sky

rocketing 158,941 units in 2009, at an increase of 33% compared to 2008.

It’s not just that China has a stronger economy, and many more millionaires than India, the

main reason behind these sales figures is the fact that there are fewer restrictions on foreign

imports, both for parts and wholly assembled vehicles in China. The government has taken

huge steps to encourage foreign manufacturers, and in some cases they also lowered the

required capital investment for new ventures – neither do they bombard consumers with huge

levies and taxes. Of course, China has a ten-year head start at the very least, and is the third

largest luxury goods market on the planet. High end luxury brands have been around far

longer in China, while India is still being explored as a luxury market.

All said and done, India is very much an emerging market, and will continue down that road.

Only time can tell who will emerge victorious in the race to become market leader in India.

Every high-end luxury brand from across the globe is eyeing this market, and with more

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brands dropping into India by the day, competition will only get fiercer – meanwhile the

Indian consumer can reap the benefits of this healthy brand war.

This study covers the marketing and promotional activities of the three main competitors of

BMW.

1) Mercedes Benz

2) Audi

3) JLR (Jaguar Land Rover)

1) Mercedes Benz

Mercedes is now reorienting its India strategy to target the youth. The company is working on

its model line-ups, marketing and brand positioning to keep them aligned. For example, the

luxury brand is now increasingly emphasising on performance and sportiness of its brand in

India. It is now closely associated with F1 in India. Further, the company has brought in

performance cars from its AMG stable to appeal to young Indian buyers.

It is planning to invest Rs 350 crore as part of its strategy to introduce new small and compact

cars in India by 2015. The company is expected to bring in its B-class, front-wheel-drive

small family car sometime around the festival season (October-November) this year.

Currently Mercedes' cheapest car is the C-Class.

With B-Class hatchbacks, it will lower the entry threshold. The B-Class hatch, owing to its

styling and agile contours will be positioned as sports tourer. During the next few years,

Mercedes-Benz has planned the introduction of most of its 10 new global cars in India, and

for this it is considering assembly of its SUVs ML, GL and GLC-Class here.

The company has recognised the need for more compact cars in countries like India and

China and assembling them in local markets is considered beneficial. With better localisation

of content, they will have a pricing edge over others. On the back of all this, as Indian luxury

car market expands, the company is hoping to sell around 55,000-60,000 cars (from current

7,430) by 2020. This is part of the bigger plan for Mercedes to regain its top slot in India.

ATL (Above The Line activities)

Mercedes Benz spends a huge amount on advertising in leading news papers, magazines &the

internet.

Newspaper advertisements of Mercedes Benz For the first and second quarter for the year

2012.

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On an average two advertisements in a week in the Times of India newspaper.A combination

of tactical advertisements, brand advertisements and dealership advertisements.

An advertisement in the monthly auto car magazine.

On the internet, advertisement on social networking sites like facebook and on youtube. Call

to Action Advertisements with a quick response code which would attract the customers

instantly.

BTL (Below The Line activities)

Posters and bill boards in selective areas, communication through direct mail and by courier.

Monthly events done at the showroom, customer experience events, showroom events and

self events.

Events done at leading city malls where it is very easy to attract customer and make contacts

with many prospects.

Apart from this Mercedes comes up with many different discounts and offers for the

customers.

Mercedes Benz spends a huge amount on all these activities and promotions.

2) Audi

Audi is a subsidiary of Volkswagen. As a manufacturer of high-quality luxury cars, Audi is

one of the world’s leading premium brands. It is represented in 110 countries worldwide and

has been selling cars in India since 2004. These were imported into the country by dealers

without being homologated. In March 2007, Audi established a formal presence in India with

Audi India being a division of Volkswagen Group Sales India Pvt. Ltd.

The Audi India strategy encompasses significant investments in branding, marketing,

exclusive dealerships and after sales service for the upcoming years. At present, Audi is

assembling the Audi A6 and the Audi A4 for the Indian market in Aurangabad. Local

production of the Audi A6 started at the end of 2007 and of the Audi A4 in early October

2008.

AUDI AG develops and produces luxury cars and sold worldwide a total of 1,003,000 cars in

2008. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Györ (Hungary),

Changchun (China) and Brussels (Belgium). The company is active in more than 100 markets

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worldwide. AUDI AG’s wholly owned subsidiaries include Automobili Lamborghini

Holding S.p.A. in Sant’Agata Bolognese (Italy) and Quattro GmbH in Neckarsulm.

Audi currently employs around 57,000 people worldwide, including 45,000 in Germany. It

invests more than €2 billion each year. Audi plans to significantly increase the number of

models in its portfolio by 2015 to 40. The Audi brand celebrated its 100th birthday in 2009.

Audi’s vision is to provide experiences, not cars. The company is passionate about what they

do. They provide great cars and great after-sales service. They are a team of professionals and

have good customer interactions. They want to establish long-term relationships with their

buyers.

Intends to unseat BMW as the No.1 premium brand in the next 3 years.

- Q3 launches to take it to No. 2 slot this year.

- Hopes to increase sales by 10 times in 8 years.

- Localization and sharing of infrastructure with other VW brands part of overall

strategy

ATL (Above the Line activities)

Times of India newspaper- In a week three advertisements, one brand advertisement,

company advertisement and tactical advertisement.

An advertisement in the monthly autocar magazine with offers and new schemes mentioned.

Advertisements on the internet on sites like facebook and twitter with special discounts

flashing as popups

BTL (Below the Line activities)

Various promotional events, showroom events, self events done on a monthly basis.

Test-drive events done in various leading city malls where the customer gets a firsthand

experience of the car.

Posters and billboard put up in various prominent areas of the city where the advertisement is

easily noticeable

3) JLR (Jaguar Land Rover)

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After the acquisition of the British Jaguar Land Rover (JLR) business, which also includes

the Daimler, Lanchester and Rover brands, Tata Motors became a major player in the

international automobile market. On 27 March 2008, Tata Motors reached an agreement with

Ford to purchase their Jaguar Land Rover operations for US$2.3 billion. The sale was

completed on 2 June 2008.

The key acquisition would be of the intellectual property rights related to the technologies.

Under Tata ownership, Jaguar Land Rover has launched new vehicles including the Range

Rover Evoque. It will unveil the Jaguar F-Type and next generation Range Rover at the 2012

Paris Motor Show.

After investing huge sums in advertising and marketing programs, companies will often ask

new customers how they heard about the firm. But all too often those organizations are likely

to hear the stinging words that every marketing executive dreads: "I don't remember." Jaguar

Land Rover wanted to put the brakes on its inability to identify which marketing initiatives

were gunning its revenue and which weren't.

"We were lacking good, solid measurements," says Cathy Ellico, CRM/e-commerce manager

at Jaguar Cars and Land Rover. "A lot of our dealers were putting money in advertising and

they're assuming that they're getting this return from it. They're basing it on the number of

sales that happened during that period."

But this assumption wasn't providing the kind of in-depth analysis that the carmaker wanted.

The auto designer and manufacturer enlisted Who's Calling, a customer capture solution

provider, to pinpoint exactly which of the advertising dollars were garnering the return. The

on-demand service can link individual phone numbers to specific individual ads or

campaigns. According to Alexi Venneri, chief marketing and communications officer of

Who's Calling, when prospects call one of the Jaguar Land Rover dealerships, Who's Calling

records the call and captures the name and address of the callers, then maps where the callers

live.

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The dealers can exactly pinpoint that it was this ad in this paper, it's a billboard, or it's a

program that's actually getting them the return. It's helping the dealers be much smarter about

their advertising budgets."

Take, for instance, Jaguar of Troy, MI, the largest Jag dealer in the country, which uses about 25 to 30

Who's Calling numbers. Its advertising formula incorporates ads in several publications with

additional methods like direct mail, the Yellow Pages, and its Web site. "We track [everything]

through the Who's Calling phone numbers so at any given time period we can tell where we're getting

the best return for our advertising dollars and where we're getting the most calls from," says Molly

Padovini, general manager at Jaguar of Troy.

One of the biggest surprises, Padovini says, was that the dealership gets a tremendous amount

of phone calls from numbers that are published on its Web site: "That really opened our eyes

to how many people are actually using our site and how important that is to us."

Additionally, some of the dealers using Who's Calling also use the recorded phone calls as a

coaching and counselling tool. "They go back and listen to calls and use that knowledge with

the salespeople to improve their performance.

Jaguar of Troy receives about 1,000 calls a month through the Who's Calling numbers, which

translates into 1,000 potential sales, so properly handling the calls is high priority. As a result

of having Who's Calling, the dealership determined it needed more phone training, and in

turn, hired a consultant who trains the sales team and some of the service representatives. "It

helps guide our sales consultants, because now we're actually able to listen to the phone

calls," Padovini says. "And it helps give them some guidance as to things they could do a

little bit better."

Marketing plan of JLR

Target market-Target high net worth individuals, age 30-40 years

Target metro cities like Delhi, Mumbai and Bangalore where rich people are located

Targeting places like pune and Nagpur also where the population of the rich is on an increase

Market segment- luxury car market

Overall marketing strategy- pull strategy, to attract customer to retail showrooms through

heavy advertising and promotions.

To capture the share of the existing market

Communication- through traditional and non-traditional media

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ATL (Above the line activities)

Advertisements in business magazines and auto car magazines, one advertisement in the

times of India news paper in a month.

Advertisements on the internet on websites like twitter and hotmail.

BTL (Below the line activities)

Showroom events and customer experience events only and by this they are getting more and

more prospects.

Posters and billboards in prominent locations.

FINDINGS

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BMW is still dominant and has a greater market share compared to its competitors.

BMW is aggressive and fast, and its Indian journey proves that. Within four years of its

launch, the company unseated Mercedes to become the top-selling luxury car in India, its

market share has moved up from 9% in 2006 to 42% in 2011.

Appealing to the younger buyers (average age of a BMW buyer is 40 years), it has introduced

a varying product range at different price levels, starting with its cheapest model X1 available

at Rs 23.7 lakh. It will further strengthen its portfolio by bringing in its MINI range, a new 3

Series and the new M5 sometime soon. On the back of all this, the country head Andreas

Schaff is hoping to make India among the top 10 countries for BMW globally in the next 10

years.

At its Chennai plant, BMW assembles 3, 5 series and X1 while others like X3, X5 are

imported as a fully built unit. But with growing sales, it may set up its second plant by 2015.

It might also scale up its manufacturing facility from just complete knock-down (CKD) kits.

Their local component sourcing, currently low, will rise. Already, they have a global sourcing

team here to cater to their global needs and have identified 20 vendors so far. This number

should go up in future.

Its marketing strategy has largely been to create touch points like professional golf

tournaments, wine tasting sessions and events with fashion designers. Last year they

organised an Xperience Drive in Gurgaon which brought in international trainers with a live

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performance by the Australian Raw BANG. A test course, with 10 obstacles, was especially

designed to bring out X range's special features.

BMW is growing its dealer network and hopes to touch the 60 mark by 2015. With 80% of its

cars being financed by its own financial services arm, BMW financing is a brisk business. Its

recently launched used-car business BMW Premium Selection will soon be available across

all its dealerships.

BMW VS AUDI

By looking at the first quarter in terms of sale BMW is still ahead of Audi

While the front-runners in the luxury segment--BMW and Mercedes-Benz--continue to be

close rivals despite very different paths to their destinations, Audi's cars often sit aside,

somehow competitive without seeming to care about the race. Perhaps that describes the Audi

buyer as well.

Audi's A4, its bread-and-butter model, sitting in the lucrative and popular entry-luxury sedan

segment, is understated where the Mercedes-Benz C Class is brash and the BMW 3-Series is

bold. The A4's interior is close, but somehow speaks more of an entry-level tailored suit than

the high-end off-the-rack offerings from others. Behind the wheel, the A4 is poised, and

satisfyingly capable, landing somewhere between plush and focused.

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It's this balance that gives the A4 its charm, and it's that balance that makes it a serious rival

to the 3-Series, even though BMW sells many more cars. Under the hood, the base A4

soldiers on with its 2.0T 2.0-liter turbocharged engine--a move made well before BMW's

addition of the turbo four in the 328i in the 2012 model. With 211 horsepower and 258

pound-feet of torque, it's closely matched to the 3-Series, though it ultimately comes up 29

horsepower short.

Unlike the 3-Series, however, you won't find a potent six-cylinder in the mid-range; you have

to jump all the way up to the S4, where you'll find a 333-horsepower supercharged V-6

engine, an aggressive suspension, and rakish styling that rivals the M3's, though again, the

Audi comes up short on power numbers--the M3, still riding on the last-generation chassis,

generates 414 horsepower from a 4.0-liter V-8. BMW, on the other hand, offers the 335i,

with a turbocharged in-line six-cylinder good for 300 horsepower and 300 pound-feet of

torque. The Coupe and Convertible versions of the 3-Series also continue forward on the last-

generation chassis, but offer the 335is trim, which packs an even more potent 3er.

Also unlike the 3-Series, the A4 is a front-drive-based sedan, with quattro all-wheel-drive

available in higher-trim models. While this bias--and its frontward weight bias--ultimately

brings it up somewhat short of the 3-Series' ultimate dynamics, the available quattro system

makes the A4 as competent as any luxury sedan in foul weather. BMW's xDrive system is

available in the 3-Series, but only in a limited range of trim.

Further distancing itself from the 3-Series, the Audi A4 is available as a wagon--or Allroad,

as Audi styles it for the latest model year. BMW is reviving its 3-Series wagon but without

the more overt styling cues.

Front seats are spacious and comfortable in both the 3-Series and the A4, though the latest 3-

Series sedan grows an inch in wheelbase, dedicating most of that to rear seat space, where it

is noticeably roomier than the A4's close quarters, particularly when it comes to leg room.

Neither is spacious, however--a classic tradeoff in the segment.

Quality, fit, and finish are very good in both cars, with the new BMW's design among the

best in class, though some touches can seem out of character--like the optional nav screen

that perches on top of the dash, instead of integrating into it. The A4 is a more seamless

piece, with a lush new LCD screen that renders Google Earth and Street View maps in

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gorgeous detail. For most, it will come down to a matter of taste: where the BMW is

sometimes drab, sometimes busy, the Audi is sleek and polished, uncluttered and largely

intuitive. Creaks, rattles, and other signs of poor build quality are non-existent in the A4.

When it comes to ride quality, both cars err a bit toward the sporty side, showing occasional

harshness over rougher surfaces. Some will call it the price they pay for their sharper

handling, but others will find the Mercedes-Benz C Class's slightly more plush ride

preferable to either.

Both cars also offer a host of advanced technology, with iDrive powering the 3-Series'

infotainment and MMI behind Audi's. While both systems are advanced and capable, MMI is

slightly more intuitive to most. On the flip side, the A4 makes some items, like Bluetooth,

optional upgrades, while they're standard on the 3-Series. The 3-Series also offers an

excellent head-up display (HUD) that's just become available on the A4, tying speed,

navigation, and other information into a display projected onto the windshield. Audi also has

in-car wireless Internet with Audi Connect, which in turn feeds data to that exceptional nav

system.

One bit of technology the A4--and S4--come with that we'd rather it didn't is Drive Select, as

system that offers adjustable control of the steering, damping, and other characteristics of the

car. It comes off as gimmicky, changing feel but not improving the car's communicative

aspects or handling in any noticeable way.

Finally, the matter of safety. The BMW 3-Series isn't yet rated by the National Highway

Traffic Safety Administration (NHTSA) or the Insurance Institute for Highway Safety (IIHS).

The A4 has some five-star scores from the NHTSA, but lacks complete scores under this

newly updated model.

With the wide range of models and body styles tucked under either nameplate, both the

BMW 3-Series and Audi A4 have something to appeal to most luxury buyers. The BMW still

has the performance edge that adrenaline junkies seek out consistently, though the Audi S-

cars aren't far off. But when high-tech gadgets and a purer design are the better lure, it's the

Audi lineup that wins.

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BMW VS MERCEDES

German automobile manufacturer Mercedes-Benz plans to increase investment in India to Rs.850 crore

by 2014.

The company, which has already spent in excess of Rs.600 crore, plans to invest another

Rs.250 crore in its Chakan facility near Pune for local production of a range of products,

including sports utility vehicle (SUV) M-Class.

Mercedes has, however, fallen behind rivals BMW and Audi in terms of sales, as the other

two companies have introduced aggressively priced products.Sales of Mercedes-Benz's cars

fell to 1,257 cars behind Audi's 1,908 cars sold during April to June 2012. BMW stayed in

the lead with 2,088 units sold.

Mercedes-Benz India is adopting a "step-down" strategy to garner market share. It is

preparing to launch an all-new B-Class known as the Sports Tourer in September, in a bid to

rustle up demand and take on BMW and Audi in a segment that is clearly showing signs of a

slowdown.

The Sports Tourer would be the most affordable car from the Mercedes stable in the sub- 25

lakh price bracket. The Indian subsidiary of Daimler AG, currently sells its C-Class at 28.56

lakh (ex-showroom Delhi), its cheapest offering in India. Luxury carmakers operating in

India are driving a bulk of their sales from entry-level models. For BMW, its lowest priced

X1 forms around 30% of its annual sales in 2011 and Audi's cheapest car in India at 26.5

lakh, the recently-launched Q3 compact SUV lakh, has taken the market by storm.

The B-Class, which is ranked lower in the premium segment, may provide some robust

numbers for Mercedes, after sales in the first quarter for the luxury carmaker dipped 24% to

1,257 cars

Mercedes' strategy could work as its gets into the lower end of the market and generate some

strong numbers. The B-Class will hit the Indian market in September this year and the biggest

Mercedes-Benz advantage will be of not having any direct competition.

As its sales wane, Mercedes is expanding its territory to include smaller towns.While metros

would be strong on demand, the smaller cities like Indore, Nagpur, Raipur, Surat, Vadodara

and Bhubaneswar are generating monthly car sales of 8-10 cars, which is very important in a

limited market of 25,000 luxury cars sold in India every year.

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BMW VS JAGUAR

Although jaguar is new in the Indian market itstoo early to compare its sales to the

BMW.

Tata Motors Ltd.'s TTM +2.52% luxury-car unit, Jaguar Land Rover PLC, said Wednesday it

has invested £370 million to upgrade and increase the output of its U.K. manufacturing

facilities to cater to growing demand for its vehicles.

The expansion includes opening of a new plant and stepping up production of its Range Rover sport-utility vehicles.

Land Rover has over the past few years become the main money spinner for Tata Motors and

has bailed out India's biggest auto maker by sales from the economic slowdown that has hurt

vehicle demand worldwide.

aguar Land Rover despatched 110,373 vehicles to its dealerships during the April-July

period, 36% more from a year earlier. This helped its parent to post total sales growth of

10%.

The company manufactures Land Rover vehicles at facilities in Halewood and Solihul and

Jaguar sedans at a plant in Castle Bromwich. It is also setting up a £355 million engine

factory near Wolverhampton.

Tata Motors had earlier said it would increase the capital expenditure on the U.K. unit to £2

billion in the financial year through March 2013 from the earlier planned £1.5 billion due to

higher demand for its luxury vehicles.

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The company said it has created 1,100 jobs at the Castle Bromwich plant. Also, it has moved

to 24-hour production at Halewood to meet demand for the new Range Rover Evoque.

It is spending more than 1.3 billion pounds with suppliers around the world, including 800

million pounds in the U.K. alone.

Jaguar Land Rover has recently introduced a new generation of Range Rover vehicles. It

plans to shortly launch the Jaguar XF Sportbrake and a new F-Type sports car range from the

Jaguar brand, it said Wednesday.

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CONCLUSION

BMW is one of the prominent luxury car manufacturers’ in the world today. Sales of all the

BMW, Rover, and Land Rover vehicles have been on the rise globally. High-profile image

campaigns (such as the James Bond promotion) and the award-winning BMW website

(where users can design their own car) continue to increase the popularity of BMW's

products. BMW cars typically have a product life cycle of seven years. To keep products in

the introductory and growth stages, BMW regularly introduces new models for each of its

series to keep the entire series "new."One of the ways BMW is improving its product offering

seven further is through its innovative website (www.bmwusa.com). At the site, customers

can learn about the particular models, e-mail questions, and request literature or test-drives

from their local BMW dealership. What really sets BMW's website apart from other car

manufacturers, though, is the ability for customers to configure a car to their own

specifications (interior choices, exterior choices, engine, packages, and options) and then

transfer that information to their local dealer.

In order to maintain its dominant position in the market the company has to continue its

innovative marketing tactics and has to invest its time and efforts in R&D in order to continue

to dominate the Indian and the world markets and stay ahead of the competition.

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