Sarah Brookes BMW Research 2012.

One of the concerns from recent data, suggests that BMW is becomingA less-loved brand amongst 18-30 year olds.

There is no clear understanding as to why this is happening, but it is apparent that Audi in particular is over-taking us amongst that age group.

While this isn’t a catastrophe right now we are concerned that this could lead to long term damage to the brand as these young people grow up with BMW

lower down on their consideration list.

Contents:Who are Gen Y?

What do they expect from brands?

What are their attitudes to cars and driving?

Why is BMW becoming a less loved brand?

If BMW isn’t loved, who is?

Research & retail behaviours

Insight & proposition

Who Are Gen Y?

Gen Y:

Also known as “Millennials”Born 1980 to 20009.7 million in the UKGrew up with rising oil prices & climate change. Educated and in debtHit by the recession

Aimia_GenY_Whitepaper_UK_2011

Optimistic, ambitious & entrepreneurialExpect reward, recognition & respectIn search of value & meaningFriendship is importantCreative and collaborativeTech savvy & connected 24/7

Aimia_GenY_Whitepaper_UK_2011

Education

Technology & Innovation

Big Ideas

Relationships & friends

Diversity, tolerance, and social good

Environmental & economic sustainability

Work / life balance

Travel & Leisure

What matters to Gen Y?

67% search for a brand or service on SM before Google

50% consider TV, radio, and music as background noise

35% check web-based email via PC – most popular activity

38% check social networks via mobile phones

75% go online everyday

42% listen to music free online

50% use PC, TV or radio to catch-up

25% are tech-junkies

Social & Social Media Friendly

What do they expect from Brands?

Informal InteractionA philosophy / mission

statementA human feelA way to curate their

identityTo take the leadNot be try-hard Culturally relevantThe ability to give

feedbackTo be entertainedOptions for discussion

You like car advertising that…

Why is BMW a less loved brand?

Historically, BMW was seen as the yuppie badge of success. For Gen X there was one mainsuccess – your career. Today Gen Y, who value a work/life balance, are in search of value and meaning through what they do, buy and believe in. Money is secondary in terms of success, but it is important because they don’t have very much of it. Still ambitious to achieve, through enjoying life, being good parents, giving back to society and the environment.

Success has now been redefined.

Hypothesis:

• Educated and aware of their real-time identity• Image is still very important. • The BMW model of success is irrelevant now, even looked down upon.• Gen Y look to brands to express themselves and their values. • It’s no longer cool to be brash. Instead ‘Quietly brilliant, is admired’.• Gen Y want a well priced car, that is stylish too. • A lower grade model could be justified as the ‘intelligent’ choice • Being efficient, environmental and a money-saver. • Less is more.

My GEN Y survey revealed the following concerns:

46% don’t notice BMW advertising

38% rate it as dull and uncreative

83% saw it as an arrogant or male brand

25% saw it as old fashioned and not cool

0% don’t recognise BMW’s environmental credentials

0% saw it as young or for females

50% don’t drive a car

However 16/25 were not against buying a BMW in the future…

Gen Y are increasingly getting used to not owning things…but renting them instead.

Price

Fuel economyIs important with high

Fuel costs and environmental

Damage.

Style

Social networksMake brand image

Important with association

The battle between priceand style.

Ownership Subscription

The cost to own and run a car are not seen as essential for urban-focused Millennials anymore…

So What do Gen Y define as success and what makes them happy?

Environment Price Style

Gen Y make intelligent & emotional choices

Male, arrogant, and needless expense becomes irrelevant

Gen Y have redefined what success and mobility means.

BMW knows that their classic definition of premium is irrelevant to Gen Y and has invested in redefining what an automotive company needs to provide…

Emotional &Intellectual

success

Transactionalsuccess

Mobility needs to be efficient, sustainable and connected.

What are their attitudes towards cars & driving?

Competitor Review

If BMW isn’t loved who is?

6

6

9

9

Starts at £13,640

Starts at £17,830

Engaging wider target audience

Audi / BMW Facebook conversation insight

Brand loyal

Engaging very young audience

• Environmental• Compact• Family• EfficientThe alternative car with lifestyle benefits, not meaningless & expensive style.

30%

Gen Y ownership insight:

62%

72%

32%

94% of all consumers research an average 32 sources online before they purchase a car.

71% purchases are influencedBy positive online opinion.

51% will change their purchase decision due to negative online opinion.

73% value the opinions of others.

What is their approach to retail and research?

Deloitte GEN Y & automotive purchasing behaviours USA (2009)

Insight

The strategic story:

Human Insight:Most people don’t know what they are missing until they experience it

Audience Truth: They are in search of value and meaning

Brand Truth: BMW offers a great driving experience

Market Truth: Gen Y are increasingly looking for alternatives

Engagement truth: 94% research online before purchasing a car70% would like to test drive a vehicle for 24 hours

Technology Truth: Just because they use technology doesn’t mean it has to be onlineExperiences are equally important

Proposition: BMW is a journey worth taking

THANK YOU!