1. Background2. Brand Values3. Products Line4. Existing System5. New project6. Problem Statement7. Proposed System8. Business Preview Reengineering (BPR)

a. Championb. Project Teamc. The role of IT

9. Analysis and Background10. Project Lifecycles

a. The General Modelb. Waterfall Modelc. Incremental Model

11. Process Summary (Design)12. Detailed Description of the preferred Embodiment13. The Business Case

a. Vendor selection and managementb. Demonstrationc. Terms of references (TOR)

i. Payment Termii. Order Termiii. Licences Requirediv. ABC Software licencev. Ownershipvi. Licencevii. Termsviii. Restrictions on transferix. Restrictions against copying or modifying the Licensed

materialsx. Protection and securityxi. Limited warrantyxii. General

14. Recommended Solutionsa. What does it dob. Short listingc. Pre-Interview Testingd. Interviewinge. Rejection

Background:

Bayerische Motoren Werke AG (BMW) is a German automobile manufacturer Founded in 1917,

The BMW Group is now one of the ten largest car manufacturers in the world and, with its

BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car

industry. The Company divides its activities into the segment Automobiles, Motorcycles and

Financial Services segments. Its BMW automobile range encompasses the 1 Series, including

three-door, five-door, coupe and convertible models; the 3 Series, including sedan, touring,

coupe and convertible models; the 5 Series, available in sedan and touring models; the 6 Series,

available as a coupe or convertible; the 7 Series large sedan; the Z4 roadster and coupe; the

sports utility vehicles, X3, X5 and X6 and M models, such as M3, M5 and M6. It also offers cars

under the MINI brand and motorcycles under the BMW brand. The Rolls-Royce brand offers

three luxury cars, Phantom, Drophead Coupe and Coupe. It has producing, assembly, service and

sales subsidiaries throughout the world.

The group also has a strong market position in the motorcycle sector and operates a successful

financial services business. 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 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.

[Brand Values]

Quality, technology, performance and exclusivity are the BMW brand’s core

values. Research and development are ascribed high priority within the

company,

spending a far greater percentage of profits on R&D than any other

automobile

maker. Its R&D centre in Munich employs 5,000 engineers and designers.

From this technological focus, BMW develops automobiles with a highly

individual character. For BMW, performance is more than just the ability to

accelerate

quickly and take corners at speed – it is a balanced harmony between

beautifully designed and crafted working parts.

Product Distinguishing product concepts

and design principles

Customer motivations Core customer

needs and values

satisfied by the brand

Brand Character Values,

archetypal personality,

image, style

Vision The potent

imagination of the future

Cultural Values The

organisational values and

principles that best serve

life in the company

Profound Purpose Why the

company exists; its

profound value for the world

Brand Essence The heart of

the unique brand experience

Organising Idea A unifying

statement of the service mission

expressing the core value proposition

Unique Competence The

unique ability to create

value deriving from

systemic expertise

Positioning Strategic

ownership of exclusive

value in the customer’s mind

Business Model The system

of strategic synergies that

creates sustainable profits

Integrated Dashboard Dynamically

related key performance indicators

http://www.mini.co.uk/

Production

Total world productionin 2006 wa s1,366,838 vehicle sproduced in 5 countries. Since2006,

production in Chennai, India has begun.

Motorcycles

BMWbeganbuildingmotorcycleenginesandthenmotorcyclesafterWorldWarI.Itsmo-

torcycledivisionisnowknownasBMWMotorrad.Theirfirstsuccessfulmotorcycle,afterthefailedHeli

osandFlink,wasthe"R32"in1923.Thishada"Boxer"twinen-gine,inwhichacylinderprojectsintotheair

flowfromeachsideofthemachine.Apartfromtheirsinglecylindermodels(basicallytothesamepattern),

alltheirmotorcyclesusedthisdistinctivelayoutuntiltheearly1980s.ManyBMWsarestillproducedinthi

slayout,which is designated theR Series.DuringtheSecondWorldWar,BMWpro-

ducedtheBMWR75motorcyclewithaside-

carattached.FeaturingauniquedesigncopiedfromtheZündappKS750,itssidecar

suspension,andaHossack-typefrontforkBMW calls

Duolever.BMWwasoneoftheearliestmanufactur-erstoofferanti-

lockbrakesonproductionmotorcyclesstartinginthelate1980s.Thegenerationofanti-

lockbrakesavailableonthe2006andlaterBMWmotorcyclespavethewayfortheintroductionofsophisti

catedelectronicstabilitycontrol,oranti-skidtech-nology-afirstforproductionmotorcycles-later in the

2007 model

year.BMWhasbeenaninnovatorinmotorcyclesuspensiondesign,takinguptelescopicfrontsuspension

longbeforemostothermanufac-

turers.ThentheyswitchedtoEarlesFork,frontsuspensionbyswingingfork(1955to1969).Mostmodern

BMWsaretrulyrearswingarm,singlesidedattheback(comparewiththeregularswingingforkusually,a

ndwrongly, calledswinging arm).

SomeBMWs

startedusingyetanothertrademarkfrontsuspensiondesign,theTelelever,intheearly1990s.LiketheEarl

esFork,theTeleleversignificantlyreducesdiveunder braking.

Motorcycle clubs

BMWmotorcycleshaveinvokedworldwideinterestfromclubs.ThetwolargestBMWmotorcycleclubs

intheworld,theBMWRidersAssociationandtheBMWMotorcycleOwnersofAmericaareheadquarter

edintheUnited States.

Automobiles

Large-scale production models

New Class

TheNewClass(German:NeueKlasse)wasalineofcompactsedansandcoupesstartingwiththe1962150

0andcontinuingthroughthe last 2002s in 1977.PoweredbyBMW’scelebratedfour-

cylinderM10engine,theNewClassmodelsfea-turedafullyindependentsuspension,MacPh-

ersonstrutsinfront,andfrontdiscbrakes.Initiallyafamilyoffour-doorsedansandtwo-

doorcoupes,theNewClasslinewasbroadenedtotwo-doorsportssedanswiththeadditionofthe

02Series

1600and2002in

1966.Sharinglittleincommonwiththerestthelinebeyondpowertrain,thesportysiblingscaughtautoent

husiasts’attentionandestab-lishedBMWasaninternationalbrand.Pre-

cursorstothefamedBMW3Series,thetwo-doors’successcementedthefirm’sfutureasan upper tier

performance car maker.NewClassfour-doorswithnumbersend-

ingin"0"werereplacedbythelargerBMW5Seriesin1972.Theupscale2000Cand2000CScoupeswerer

eplacedbythesix-cyl-inderBMWE9,introducedin1969withthe2800CS.The1600two-

doorwasdiscontin-uedin1975,the2002replacedbythe320iin1975.

Series generations

Internally,BMWassociatesan"e-code"foreachgenerationofaseries("E"stands for Entwicklung,

Germanfor development or evolution).These"chassiscodes"only change to signify a major

redesign of a series,or the introduction of a new series.

BMWAGreported in September 2006 that BMW would switch to the letter "F" for their future

models, beginning with the F01 7Series replacement.

•BMW E3— (1968–1977)2.5, 2.8, 3.0, 3.3 "New Six" sedans

•BMW E9— (1969–1975) 2800CS, 3.0CS,3.0CSL "New Six" Coupés

•BMW E12— (1974–1981) 5 Series

•BMW E21— (1976–1983) 3 Series

•BMW E23— (1977–1986) 7 Series

•BMW E24— (1976–1989) 6 Series•BMW E26— (1978–1981) M1

•BMW E28— (1981–1987) 5 Series

•BMW E30— (1984–1991) 3 Series(1982-1983 E30 sold in Europe)

•BMW E31— (1989–1997) 8 Series

•BMW E32— (1986–1994) 7 Series

•BMW E34— (1988–1995) 5 Series

•BMW E36— (1992–1999) 3 Series

•BMW E36/5— (1995–1998) 3 SeriesCompact (US market known as "318ti")

•BMW E36/7— (1996-2002) Z3 SeriesRoadster

•BMW E36/8— (1998-2002) Z3 SeriesCoupé

•BMW E38— (1994–2001) 7 Series

•BMW E38/2— (1994–2001) 7 Series longwheelbase

•BMW E38/3— (1998–2001) 7 Series Protection

•BMW E39— (1995–2003) 5 Series

•BMW E46/5— (2000–2004) 3 SeriesCompact

•BMW E46/4— (1998–2005) 3 SeriesSedan

•BMW E46/3— (1999–2005) 3 SeriesTouring/Sports Wagon

•BMW E46/2— (1999–2006) 3 SeriesCoupé

•BMW E46/C— (1999–2006) 3 SeriesConvertible

•BMW E52— (2000–2003) Z8

•BMW E53— (2000–2006) X5

•BMW E60— (2004–present) 5 Series

•BMW E61— (2004–2007) 5 SeriesTouring/Sports Wagon

•BMW E63— (2004–present) 6 SeriesCoupé

•BMW E64— (2004–present) 6 Seriesconvertible

•BMW E65— (2001–2007) 7 Series shortwheelbase

•BMW E66— (2001–2007) 7 Series longwheelbase

•BMW E67— (2001–2007) 7 SeriesProtection

•BMW E68— (2005–2007) Hydrogen 7

•BMW E70— (2007-present) X5

•BMW E71— (2008) X6

•BMW E81— (2007-present) 1 Series(3-door)

•BMW E82—Coupé

•BMW E83— (2004–present) X3

•BMW E85— (2003–present) Z4

•BMW E86— (2006–present) Z4 Coupé

•BMW E87— (2004–present) 1 Series(5-door)

•BMW E88— (2008) 1 Series Convertible

•BMW E89— (2009) Z4

•BMW E90— (2005–present) 3 Series

•BMW E91— (2005–present) 3 SeriesTouring/Sports Wagon

•BMW E92— (2006–present) 3 SeriesCoupé

•BMW E93— (2007–present) 3 SeriesConvertible

•BMW F01— (2008) 7 Series

•BMW F02— (2009) 7 Series longwheelbase

Bicycles

BMW has created a range of high-end bicycles sold online and through dealer ships. They range

from the Kid’s Bike to the EUR 4,499 Enduro Bike. In the United States, only the Cruise Bike

and Kid’s Bike models are sold.

Existing system :

Overseas subsidiaries

South Africa

BMWs have been assembled in South Africa since1970, when Praetor Monteerders’ plant was

opened in Rosslyn, near Pretoria. BMW acquired the company in 1973, which be-came BMW

South Africa, the first wholly owned Subsidiary Of BMW To be established outside Germany.

Three unique models that BMW Motor sport created for the South Africa an market were the

BMW333i, which added a 6 cylinder 3.2 litre engine to the BMW 3 Series, the BMW325i switch

was powered by an Alpine derived2.7 litreen-gine, andtheE23M745i, which used theen-gine

from the BMW M1. Unlike U.S. manufacturers, such as Ford and GM, which divested from the

country in the 1980s, BMW retained full ownership profits operations in South Africa.

Following the end of apartheid in 1994, and the lowering of import tariffs, BMW South Africa

ended

Local production of the 5-Seriesand 7-Series, in order to concentrate on production of the

3Series for the export market. South African built BMWs are now exported to righ thand

drivemarkets in cluding Japan, Australia, NewZealand, the UnitedKingdom, Singapore, and

HongKong, as well as Sub Saharan Africa. Since1997, BMW South Africa has produced

vehicles in left hand drive for export to Taiwan, the United States and Iran, as well as South

America. BMW’s with a VIN number starting with "NC0" are manufactured in South Africa.

United States BMW Manufacturing Co has been manufacturing the X5 and, more recently, the

X6 in Spartanburg, South Carolina, USA. The smaller X3 is slated to begin production in

Spartanburg in 2009-2010.BMW’swithaVIN number starting with "4US" are manufactured in

Spartanburg.

India

BMWestablishedin2006asalessubsidiaryinGurgaon(NationalCapitalRegion)andastate-of-the-

artassemblyplantforBMW3and5Seriesstartedoperationinearly2007inChennai.Theconstructionoft

heplantstartedinJanuary2006withaninitialinvest-

mentofmorethanonebillionIndianRupees.Theplantstartedfullfledgedoperationinthefirstquarterof2

007andproducesthediffer-entvariantsofBMW3SeriesandBMW5Series.

China

InMay2004BMWopenedafactoryinShenyang,north-eastChina,inajointven-

turewithBrillianceChinaAutomotive.

Thefactoryisexpectedtoproduce30,0003and5Seriesannually.BMWalsohasplansfora2ndfactoryinC

hinawherethe1Serieswill be produced.

Canada

InOctober2008,BMWGroupCanadawasnamedoneofGreaterToronto’sTopEmploy-

ersbyMediacorpCanadaInc.,whichwasan-nounced by theToronto Starnewspaper.

Austria

TheBMWX3ismadebyMagnaSteyr,asub-sidiaryofaCanadiancompany,inGraz,Aus-tria under

license from BMW.

New project:

Sales Lead Management System

Sales lead management systems can take a business from mediocre to fantastic by providing a

means of increasing business in an organized manner. When profits are automated through a

sales lead management system, the business owner will reap the benefits in a vitalized and

excited employee force. Think of how this organizational method will transform the way

business is done. If a business owner needs to expand his territory or target calls where product is

moved quickly more specifically, managing the opportunities can help to gain the upper hand in

both areas. A good method can give a manager the qualified assistance that is needed. Business

owners spend many man-hours developing the best customer profile in the business. But

prospects will not come through to completed transactions unless there is a sales lead

management system that can handle the prospective transactions. Prospective target management

will help to move transactions through the miracle of automation. If the businessman has

developed a prospective market database, but needs to expand that base, contact leads can be

vital part of the picture that culminates in financial success. When launching a big campaign for

a new or existing product, managing the prospective transactions and turning them into profits

will be important. Sales lead management systems can provide the needed link to make the

campaign a success. If a businessman has a direct employee force that is waiting for active leads,

he needs to investigate lead management. Or perhaps there is a new product that's sitting on the

shelf, waiting to be distributed to customers. How to get that stock moving quickly is determined

by the effectiveness of sales lead management systems. The investment made in a sales

management system will be fully rewarded in completed transactions. The system will help to

target the people, not merely the companies that salesmen need to contact. Colossians 4:1 says,

"Masters [employers], give unto your servants [salesmen] that which is just and equal; knowing

that ye also have a Master in heaven." Whenever we are responsible for another person's work

conditions, we need to approach our responsibility with humility and diligence. Checking out a

sales lead management system may be part of the business stewardship. Asking the Lord to give

wisdom to a manager as he researches the many sales lead management systems available today

is appropriate. It is possible that a sales system will enable the staff to increase their productivity.

Good planning for future business growth is vital to the long-term success of any business, so

whatever sources are available for turning over inventory and increasing the bottom line should

be pursued enthusiastically.

Proposed system:

Our changing world constantly Demands new ideas. At the BMW Group, we

are working to create cutting-edge mobility solutions for the future. We are a

sustainable company. That is why we accept responsibility for resources, the

environment and society. Our goal is clear: for every person to be able to

experience the freedom of individual mobility

Problem statement:

Our aim is to project a new system in the BMW sales and marketing department which increase

the level of sales in the company and increase its revenues and the profits by adopting the new

challenges of the changing world and the technology today and also keep in view the cost of

production economical in the society.

Identifying potential and encouraging growth. Knowing what we represent. Recognizing where

our strengths lie and making the best use of every opportunity. Following a clear strategy.

Goals we have attained are in essence the point of departure for new challenges. This is the

philosophy that inspires every individual at the BMW Group. It influences the company's

structure and it plays a vital role in the decision-making process. Our corporate ethos finds its

expression in the uncompromising pursuit of the superlative. Outstanding brands with an

unmistakable profile. Automobiles and motorcycles which fascinate people all over the world

and which win legions of new admirers every day.

Business process reengineering: The following team nominated to evaluate the all process.

o Manager HR the Project Heado Manager ITo Finical adviser o Technical managero Plan manageroa) Champion :

b) Project team:

c) Role of IT manager:

Analysis and back ground:

Mid-level Luxury Performance Sedans are a unique product category in the vast field of

automotives. Vehicles in this segment are engineered to provide maximum performance, and are

intuitively designed with responsive suspension, powerful engines, and sleek exterior lines. The

mid-level luxury performance sector is a crossover a hybrid between gas-guzzling sports cars,

fuel-efficient lower-level sedans, and expensive luxury vehicles.Mid-level luxury performance

automobiles are as aesthetically pleasing as they are fun to drive. They are typically fitted with

cutting-edge automotive technology to create an ultimate driving experience. They are

performance cars first and family sedans second. These cars are built to perform and detailed to

impress, aggressively attacking the road while smoothly accommodating their drivers.

Pricing for these vehicles tends to fall between $30,000 and $39,000, reaching no lower than

$26,000. Some cars in this segment can be upgraded with various packages and features, at

which point prices may reach higher than $50,000.

The BMW Group's corporate culture is shaped by clear responsibility, mutual respect and trust.

However, the risk of violations arising from individual misconduct can never be completely

ruled out. The BMW Group makes every effort to minimize these risks wherever possible. For

this purpose, a Compliance Organization has been created and equipped with measures and

instruments to help employees and managers avoid legal risks. The focus of the BMW Group

Compliance Organization is on ensuring legal compliance. Together with the BMW Group's

environment and social initiatives, it forms the cornerstones of its corporate responsibility.

Process summery designs:

BMW’s Aggressive Advertising

BMW has always promoted its products as superior vehicles, confidently asserting its position as

an industry leader. The company has associated its brand with class and prestige and has

established its models as benchmarks in their respective segments. BMW labels itself “The

Ultimate Driving Machine,” further suggesting its eminence as an automobile maker.

With the help of Austin-based advertising agency GSD&M, BMW launched an alternatively

designed campaign in 2006.Rather than focusing on automobile specification and design, this

series of print and television advertisements labels BMW as a “company of ideas.” The

advertisements portray the company as a cutting-edge, idea-generating company that takes risks

and enjoys its freedom as an independently-held company. The television ads focus on

stereotypical bureaucrats who neglect or reject ideas and separates BMW as a company that

“makes sure great ideas live on to become Ultimate Driving Machines.” The print ads follow

similar themes of BMW’s freedom as an independent carmaker and the risks this allows them to

take. One particular print advertisement in this campaign challenges the viewer to match several

other carmakers with their respective parent companies, and it lists competitors such as Lexus,

Infiniti, Mercedes, Audi, and Volvo on the left-hand side and their parent companies (Toyota

Motor Corporation, Nissan Motor Corporation, Ltd., DaimlerChrysler AG,Volkswagen AG, and

Ford Motor Company, respectively) on the right-hand side. The copy of the advertisement

explains“BMW has the autonomy to build cars the way [they] want to build them,” further

suggesting that other automakers may not be able to justify novel risks to their parent companies,

limiting their creativity and production potential.

BMW has also attacked other carmakers. For instance, BMW recently ran a separate aggressive

campaign pitting itself against Audi Motor Corporation, owned by Volkswagen Worldwide AG.

BMW, promoting its 3 Series line of cars,sarcastically congratulates Audi for winning the “South

African Car of the Year 2006,” then closes the advertisement by noting that the 3 Series was

named “World Car of the Year 2006.” Audi ran advertisements responding to BMW’s offensive

promotional strategy. Audi responded with an advertisement congratulating BMW and noting

that its A4 model was the winner of six consecutive Le Mans 24 Hour Races. The A4, however,

has not reached the sales or consumer satisfaction level as many of its competitors, including the

3 Series.

BMW Joint-Campaign with HD Radio

BMW began campaigning with the HD Digital Radio Alliance to promote the High

Definition radio service. BMW, which offers HD radio in their cars, provides the

Alliance with a substantial corporate customer to promote its services. Peter Ferrara,

the President and CEO of the HD Radio Alliance, states that “to have BMW as a

marquee name to implement HD Radio is uniquely satisfying,” suggesting that

BMW’s strong brand identity will in turn help HD Radio market its product.

BMW Films

BMW Films, launched in 2001 to promote the company and its cars, was a series of

revolutionary short films that showed BMW vehicles as the centerpiece of several

action-packed plots. Television commercials encouraged viewers to see the films on

the company’s website; the films were viewed nearly 100 million times. The films

were directed by prominent film makers and used intricate plot twists and effective

dialogue to accentuate the features of the vehicle in the movie. Although well-made

and entertaining, the movies were very expensive advertisements that said little about

the functionality and unique properties of the car.

TEDTalks

BMW has forged a partnership with TEDTalks, an annual conference in California

during which 1,000 thinkers are invited to spread their messages and preach their

ideas. The TED (Technology, Entertainment, and Design) provides a platform for

BMW to spread its ideas and promote its company as a haven for productive and

inspiring ideas. As an innovator, BMW fits well with the spirit of the conference, and

it provides another outlet through which the automaker can share its ideas, beliefs,

and concepts.

DETAILED DESCRIPTION OF THE PREFERRED

EMBODIMENT

The new program is designed to increase contact between the company and its customers –

and to convince them to trade in their current BMW products sooner and more often,

explains vice president of sales and marketing for the German maker’s American captive

finance subsidiary.

Currently, about 45% of BMW’s U.S. customers lease their vehicles, while 32% purchase

their vehicles outright using BMW Financial.  Another 23% either pay cash or finance using

an outside lender

Target Market

BMW’s target market for the 3 Series sports sedan consists of well-educated, relatively affluent

males seeking an automobile to satisfy their need for excitement and luxury. In some cases, these

men are also looking for a performance car that can serve as a practical family vehicle, offering

sufficient space and safety features. While there are some women driving the 3 Series model, the

target market is approximately 70 to 80 percent male. BMW also targets a rather wide age group:

males anywhere between the ages of 25-55 are candidates to purchase this car. The 3 Series is

well suited for sophisticated consumers deliberately searching for a refined car with a sporty

ride.

Specific Advertising

The 3 Series is a well-established leader in the mid-level luxury performance sedan market, and

BMW promotes the model aggressively with clever advertising. Recent advertisements have

shown how the 3 Series has developed throughout the years, including one spot that shows the

changes the vehicle has undergone as it speeds around a track. Another spot, which can be found

on BMW’s North American website, explains how the 3 Series has grown to become a cultural

icon and has obtained a loyal following.

Functional Specification (FS)

Target each sagmnet of

THE BUSINESS CASE

a. Sales and marketing Management

The BPR after the project team have select that major differences in the product of company with other three auto makers companies which are at the top ranking of the auto maker brand and are consider the beast auto maker of the world. After this the project team have to eliminate the key point of major differences and the management in all the companies .team also will elaborate the major other cause due to which the company at lower rank.

b. Demonstrations

After the major difference and cause are evaluated the team have to decided whether the lower rank of the company is due to their poor management of resources, outdate technology ,lack of innovation ,cost of production or due to poor advertisement of their products .

If the company is at lower due to the poor management in the sales department or in the poor handling of resource then the team must

eliminate it and rectify as soon as possible as it will generate the profits for the company.

Advertisements of any product plays an important role for increasing the sale of that so company should pay the full attention for the advertisement of their product and use new ways and means of advisement and publishing which capture all the common men of the society.

c. Term of references:1) Although the BMW 3 Series had the highest total sales in its segment in 2005, some of its

competitors are advancing significantly. Sales of the Cadillac CTS grew by six percent in

2005, and the automobile was named the 2008 Motor Trend Car of the Year. The Acura TL

is a critically acclaimed automobile and adored by most of its loyal consumer-base, and the

Infiniti G35 is a well-made car that offers more luxury features and a larger interior than the

3 Series. Audi is still trying to reposition is A4 to compete with the 3 Series, and Lexus has

made its IS model a serious competitor in the mid-level luxury performance segment.

2) BMW also faces challenges from an environmentally conscious population. More and more

consumers are looking for fuel-efficient automobiles, and at 20 miles per gallon city, the 3

Series is relatively fuel-inefficient when compared to many other mid-level sedans and

hybrid vehicles. Some of BMW’s marketing and advertising expenditures have been

misdirected in recent years.

3) Although well-made and extremely entertaining, the BMW Films series produced limited

year-over-year sales increase. Recent campaigns have focused less on the cars themselves

and more on BMW, possibly limiting the exposure of the automaker’s models (including the

3 Series).

View all the sales market activities:

Keep in mind consumer preferences

Introduce the new style

BMW is most wanted auto maker brand:

BMW has clearly established strong brand identity and brand equity, and the 3 Series has

become a leader in the mid-level luxury performance segment. The 3 Series is now associated

with premium performance, high-class luxury, and unquestionable quality. There are ample

Opportunities to build on the strength of the 3 Series brand, especially as several automakers

attempt to attack the mid-level luxury performance sedan market. BMW also maintains a high

level of freedom because they are an independently-held company.

The car itself is well-engineered and offers superior performance and handling to many of its

competitors. While the 3 Series may be smaller than some of its

Competitors, it is relatively fuel-efficient and safe, making it a practical choice for older

generations seeking a family-friendly automobile.

The automaker is also looking at how much to emphasize leasing, a popular form of low-cost

financing that took some big hits during the last two years of financial meltdown.  In the middle

of the last decade as many as six in 10 BMW vehicles were leased in the U.S. market.  That is

currently down in the mid-40% range, but the maker will try to push that back up to somewhere

short of 50%.

One reason is that leasing provides a steady and predictable supply of used vehicles that feed

BMW’s popular certified pre-owned program.  In recent years, used vehicle volumes have nearly

matched new.  But while the maker’s dealers will take back 143,000 off-lease BMWs in 2010,

that is expected to fall to just 94,000 next year.  It is, “an Achilles Heel” for a company that has

put so much emphasis on its certified pre-owned, or CPO, effort.

That is another reason why BMW is now reaching out to retail customers who might be

convinced to trade in early.  This would not only help boost sales of new cars – but provide an

increased flow of used BMWs to prop up the CPO program.

Recommendations

BMW should continue to build on its company’s strong brand as well as the prestige of

the Series model.

The company should continue to produce clever advertisements, and place these

advertisements across all mediums, especially on the Internet, a medium that has grown

substantially as of late.

However, BMW should not misappropriate its advertising and marketing budget, as it did

with the expensive BMW Films series. Rather, the automaker should ensure that its brand

and model awareness remains high.

BMW should also invest in more fuel-efficient technology for their performance lines,

especially the 3 Series. Although the 3 Series is fuel-efficient relative to its competition,

there are many new cars on the market that are much better on gas than the 3Series.

BMW should also target women with their Series model, focusing on the safety and

practicality of the vehicle. The 3Series consumer group is male-dominated, consistent

with the mid-level luxury performance sedan segment in general.

If BMW can capture a substantial female consumer base, it can gain market share ahead

of its competition.

Aside from young, professional women seeking an exhilarating automobile, BMW

should target the older female demographic, which holds significant decision-making

power within their families.