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MARKETING PLAN

BMW – 4 Series Coupe

“Designed for Driving Pleasure”

PRESENTED BY:

Group 6:

Asmaa Asad (Group Leader)

M. Omer Leghari

M. Shazer Alim Khan

Zara Syed

Arham Wasim

Zubaria Asma

Salsabeel Sattar

Ayesha Manzoor

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TABLE OF CONTENTS

INTRODUCTION OF THE COMPANY ...................................................................................... 4

MARKETING OBJECTIVES ........................................................................................................ 5

SITUATION ANALYSIS .............................................................................................................. 6

SWOT ANALYSIS ........................................................................................................................ 8

PORTER‟S ANALYSIS ............................................................................................................... 12

PESTLE ANALYSIS.................................................................................................................... 15

TARGET MARKET ..................................................................................................................... 18

PRICING STRATEGY ................................................................................................................. 19

DISTRIBUTION AND LOCATION STRATEGY...................................................................... 20

PROMOTIONAL MIX ................................................................................................................. 21

BUDGETS .................................................................................................................................... 24

CONTROLS ................................................................................................................................. 28

CONCLUSION ............................................................................................................................. 30

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EXECUTIVE SUMMARY

BMW is one of the top luxury cars manufacturers in Europe. They recently launched their MINI

Cooper in Pakistan, which turned out to be a success for the company. This report proposes a

marketing plan to introduce and promote BMW‟s new 4 Series Coupe in Pakistan.

The report consists of the marketing objectives defined by BMW in their mission statement and

values, a detailed situation analysis. The strengths, weaknesses, opportunities and threats are

evaluated in detail using the SWOT Matrix. Moreover, to determine whether the new series have

the potential to be profitable in the new market, the Porter‟s Five Forces Model is applied.

Next we have defined the market and customers that are to be targeted in this marketing plan.

Discussed in detail is the pricing strategy and initial budget for the company. Distribution

strategy discusses the BMW‟s retailer in Pakistan that has been its reliable partner for many

years and can be trusted to distribute the new 4 series effectively

Lastly, we have the proposed advertising and promotional strategies under the topic of

Promotional Mix. It‟s essential to measure the effectiveness of any plan/strategy is executed;

keeping this in mind we have built controls in our plan to determine the effectiveness of the

strategy.

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INTRODUCTION OF THE COMPANY

BMW (Bayerische Motoren Werke AG or Bavarian Motor Works), a Germany based

automobile, motorcycle and engine manufacturing company, founded in 1916 is now one of the

leading luxury car manufacturers in the world, with currently 23 production plants in over 13

countries, 12 Research and Development plants in 5 countries. It manufactures sports bikes, cars

and SUVs (Sports Utility Vehicle). Their current models include Series 1 (that was launched

back in 2004), series 3 (2007) Series 5(2009), Series 6 (2010) , Series 7(2008) other than these

they have a sports car Z4 and a series of electric cars by the name of „i-Series‟. BMW

Back in Dec, 2012 the first official press release about the launch of Series 4 was

released. Series 4 is to replace the current 3 Series coupe to differentiate the more sporty coupe.

Features like alloy wheels, wooden interior, red & blue seat stitching, dash accents, and sport

front bucket seats add a luxury yet sporty BMW-like details to the 4 Series. In this report we

propose the marketing plan for launching the 4 Series here in Pakistan.

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MARKETING OBJECTIVES

BMW Mission Statement:

“The BMW Group is the world's leading provider of premium products and premium

services for individual mobility.”

BMW Brand - "The BMW brand stands for one thing: sheer driving pleasure. Sporting

and dynamic performance combined with superb design and exclusive quality."

BMW Vision:

“Designed for Driving Pleasure.”

BMW Values:

1. Technology

2. Quality

3. Performance

4. Exclusivity

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SITUATION ANALYSIS

Our Product:

The BMW 4 series coupe is a two door, 4 seat hardtop coupe, starting at a price of

£31,575 (PKR5364395 approx).

Living in the era of higher efficiency dynamics, demands lower emissions with increased

fuel efficient engines. This era has lead manufacturers to now reinvent their old and nature

damaging technologies to nature friendly engines. BMW has already been active in introducing

more nature friendly power units, but with this new 4 series, BMW has not only refined its

engines but has also set a bench mark for other manufacturers. With a 2.0 liter twin turbocharged

and a multi award winning 3.0 liter twin turbo charged engine, the BMW not only gives the

option of extreme performance but also great efficiency. The 428i provides a combined average

of 25km/l (25 kilometers per liter). On the other hand the much more powerful 435i delivers 300

Bhp and has 5.1 seconds 0-100 km acceleration whilst providing an economy of 11km/l. The

equipment levels are second to none, leather, a DAB radio and Bluetooth are standard. Heads up

display is a unique feature that projects the cars speed, economy and other important numbers on

the cars wind shield allowing the driver to take note of important readings without having to take

their eyes of the road. Another unique feature is the new 4WD system which is an optional extra.

A six speed manual transmission is standard while an automatic trip-tonic along with paddle

shifters in optional.

Another feature that is unique to the BMW is the inbuilt IBM ThinkPad that contains

diagnostic software which helps in keeping the car problem free and helps in early solution to

unlikely technical problems. The BMW 4 series does not only out equip the 3 series but is also

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sportier and is significantly lower than its predecessor. The seats are not only firm but are also

comfortable and more supportive making it the only premier brand to offer this feature in

automobile industry for coupes. This highlights the fact that BMW, unlike its rivals, has not only

made a car sportier but also more comfortable for daily use. The adaptive M suspension of the

BMW 4 Series offers optimum handling with even more agility while electronically controlled

dampers adjust to your driving style and the road conditions. The driving dynamics can be

adjusted using the Driving Experience Control which enables you to choose between Sports and

Sports+ giving you the proper stiffness and throttle response while driving the BMW 4 series

faster and harder. The I-Drive Touch Controller gives you convenience in controlling the iDrive

system with one hand. Thanks to the touchpad integrated in the Controller, you can easily enter

information such as, destinations for the navigation system using your own handwriting. The

BMW 4 series safety is another bench mark set by the German manufacturer. Active Protection

is the BMW Connected Drive preventive occupant protection system. If a critical situation arises

on the road, the front safety belts are reversibly pre-tensioned and the side windows are closed -

as is the sliding roof. The feature Driving Assistant combines the camera-based systems lane

departure warning and collision warning. Safety being a priority is shown by the intelligent

emergency call system. The intelligent emergency call permits fast, targeted assistance round the

clock as well as support by trained staff - in your language even if you are abroad. If a serious

accident takes place, an intelligent emergency call is automatically issued. At the touch of a

button you are put through to our BMW Call Centre agents who are available to you as "personal

assistants" while you are on the road. Whether you are looking for a particular restaurant, the

nearest cash dispenser or an emergency pharmacy - the BMW Call Centre agent is there to help

and can send address details directly to your navigation system if you wish.

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The agent can even place a reservation at a restaurant or book a hotel room for you. The

Concierge Service operates independently of your mobile phone and is available to you at home

and abroad round the clock, seven days a week at no extra cost.

SWOT ANALYSIS

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STRENGTHS:

1) Brand reputation: According to Global Rep Trak – the best corporate

reputations, in 2013 BMW topped the ranking and was among the top and most valuable car

brands.

2) High Quality Products: BMW does not compromise on the quality. From the

raw materials upto the final product, the keep a strong check on the quality. Moreover, BMW

hires the most skilled and efficient workforce to design and produce the automobiles.

3) Eco-friendly Cars: Thinking of eco-friendly cars, we focus on what does or

doesnot come out of the car i.e how they treat the environment aound them. But that is not it ,

companies like BMW are taking this concept to a whole new level.. According to ABC, the new

plug-in electric i3 of BMW is the „greenest car in the world‟. Keeping in view the impact their

cars could have on the environment, from the start to the end of production, almost every process

in producing the Electric 13 is eco-friendly. With a minimal processing done to the wood used

for the interior, instead of using harmful chemicals to tan the leather BMW i3 uses olive leaves.

4) Highly Efficient and Skilled Employees: BMW has set up its assembly plants in

countries like Germany and USA where it‟s easy to find the most skilled vehicle assemblers.

And it‟s considered to be the „global employer of skilled workforce‟.

5) Strongest Product: The 3 series is the strongest product launched by BMW. It

has been the best-selling car since its inception.

WEAKNESSES

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1) High cost Structure: BMW‟s cost structure is higher as compared to its competitors such

as Ford, Toyota. The reason behind this high cost structure is buying best quality material and hiring a

highly skilled and trained skill force to produce quality vehicles and automobiles.

2) WEAK BRAND PORTFOLIO: Currently BMW produces three brands only, namely

BMW, MINI & Rolls-Royce. Although they are performing well in their segments but still they are not able

to serve the diverse customer needs in the larger market. In order to do that BMW needs to introduce more

brands

3) HIGH PRICES: Due to BMW‟s high cost structure resulting from the high costs

of the raw materials and efficient workforce the prices of their automobiles are relatively high

4) FEW ACQUISITIONS: Acquisitions and strategic partnerships contribute a

total of 10 percent of BMW‟s growth, without which it is hard for the company to grow even

with the exclusive innovation and engineering capabilities.

OPPORTUNITIES

1) Increasing Fuel Prices: Due to the increasing fuel prices, customers are shifting

to cheaper fuels, opening up larger markets for BMW‟s hydrogen and hybrid cars.

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2) Increasing Trend of Eco-friendly Products: Today the consumers are more

aware and informed of the negative impacts of fuels like petrol diesel and emission of carbon

dioxide on Earth‟s atmosphere. And they prefer to buy eco-friendly products. Resulting in an

increased demand of BMW‟s electric and hydrogen-fueled cars.

3) Brand Portfolio Expansion: In order increase their growth rate, BMW could

introduce new models to its range to satisfy and address the diverse needs of a larger customer-

base. Resulting in expansion of their brand and business portfolio.

4) New regulations on vehicle emissions: Introduction of fuels like hydrogen and

vehicles like their electric i3 series that emit zero carbon dioxide. New regulations on vehicle

emissions promoting ecological vehicles would mean no additional investment for BMW while a

high investment for its competitors, giving BMW an edge over them.

THREATS

1) Intense competition: The fact that markets for the luxury cars are mostly

saturated in developed economies results in an intense competition for BMW. Moreover, the

direct competitors now tend to compete over prices rather than innovation, thus intensifying the

competition

2) Expensive raw material due to increasing prices: The increasing prices of high

quality raw materials results in higher costs and lower profits for companies like BMW.

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3) Decrease in fuel prices: Extraction of shale gas could lead to a decrease in the

fuel prices, which would cause a decrease in the demand for BMW‟s electric, hybrid and

hydrogen-fueled cars. This would lead to BMW groups having to face tremendous losses.

4) Exchange rate Fluctuations: Since most of BMW‟s profits are earned outside of

Europe, thus appreciation of Euro against other currencies especially those outside Europe,

causing huge losses for the company.

PORTER’S ANALYSIS

Threats of new entrants:

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Threats of a new entrant are very low in automobile industry as it requires a lot of capital

and has to face entry barriers, risks and challenges as the cost incurred to set up manufacturing

plant is very high and it needs a lot of knowledge for its design.

Threats of substitutes:

The brand image of BMW is of being powerful and luxurious. It is positioned in the

exclusive car range where there exist many substitutes for BMW like Mercedes, GM and Audi.

Thus the threat of substitutes for BMW is high.

Bargaining power of buyers:

BMW and its competitors are positioned as in exclusive product range. As the buyers can

decide to choose the product according to the price range that shows that the bargaining power of

buyers is high Also with environmental issues hovering over the industry the buyers have the last

say with sample substitutes available.

Bargaining power of suppliers:

BMW has good supply chain management system and had long relationship with

suppliers. The bargaining power of suppliers is high in this industry as the suppliers can dedicate

the price tag for the raw materials. Though long time associations with suppliers can prove

fruitful, the final word lies more or less with the suppliers.

Competitive rivalry

This product has a lot of competition having their rivals‟ products targeting the same

segment and position. US and European market is facing high rivalry competition where as there

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is a stiff competition in Asian market. Furthermore, there is intense competition on all fronts in

the car market in general, not to mention the luxury car market. Major manufacturers such as

Audi and Honda are pinching BMW with their luxury segments (Lexus & Acura) in terms of

quality product and reliability. The main competitors of BMW 4 are shown in the figure.

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PESTLE ANALYSIS

As we are introducing BMW 2014 series in Pakistan, we should be well aware of the PEST

factors affecting our launch.

Political Factors

BMW is meant for high income level groups, as in Pakistan there is a narrow high

income level group – Therefore the Tax liability would be high, on the manufacturing of

our vehicle as imposed by the government for the balance of economy – The buyers of

our vehicle would have to have to pay a heavy tax to own it, keeping the circumstances of

Pakistan economy in mind.

Moreover since Pakistan is not a very politically stable country there might be issues

regarding trade with international dealers of the vehicle parts, as they might not want to

invest heavily in a country like Pakistan.

Keeping the above political factors in mind, we have priced the car as such that covers

the tax liability as well- the image of the car is kept “leisurely” portraying it

environmentally friendly. The image of the company itself is kept cooperative to avoid

issues like delays in dealers due to political instability.

Economic Factors

Introducing the BMW 2014 series in Pakistan, we have to ensure economic growth. As

economy of our country is uneven – Our targeted income group is in minority – therefore

we have to maintain a fine balance to boost Pak economy as well as ensure our survival.

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This includes the careful analysis of inflation rates. In a highly inflated economy like

ours, we have budgeted our manufacturing and priced our vehicle such that it matches the

inflation rates.

The exchange rates would have to be monitored efficiently – As for export and import of

vehicles it is necessary to preempt the deal in international trade. BMW would want a

major inflow of foreign cash in Pakistan to boost Pakistani economy.

Interest rates also are important to consider- Personal Bank loans for buying the car (if

taken any) would have higher interest rates, since it‟s an inflated economy. Also, interest

rates affect to a firm‟s cost of capital and to what extent a business grows.

Social factors

Socially BMW, in Pakistan, is taken as a status symbol- It‟s a symbol of luxury and

comfort.

Our Target Market is those rich class diplomats, bureaucrats, entrepreneurs and ministers

ranging from age 34-50. They require style, sporty look, leisure and safety – These

factors are present in the BMW vehicle. Therefore socially we are confident for our car to

be very successful.

It is expected to be more popular in rather posh cities like Lahore, Karachi and

Islamabad.

For car lovers it would be a good change to have BMW introduced in Pakistan.

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Technological factors

How the technology of our model would be upgraded and maintained should be our

major concern.

In Pakistan, the major competitors are Mercedes and Audi; therefore we have to keep up

with the technology they introduce in their vehicles

We also to have to watch out for the new entrants, but here we have a slight edge as there

are high “Barriers to entry” in this league of the market, especially in Pakistan.

The rate of change of technology could also affect the minimum efficient level of

production and influence outsourcing decisions. Furthermore technological shifts can also

affect cost, quality and lead to innovation.

Legal Factors

According to the environmental law, we have to make sure our vehicle is not hazardous

for the environment- That is the materials used in manufacturing have to be approved by

the ministry of environment. Other laws we have to be careful about are the consumer

laws, safety standards and labor laws, etc.

Environmental Factors

Because more and more people are becoming conscious of the effect of Global warming,

they are hesitant to buy cars that are not „Green‟. We will need to make sure our product

is eco friendly.

Shift in consumer preferences towards more eco friendly cars, hybrid cars, etc – our

product needs to fulfill these consumer requirements.

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The cars have to be fuel efficient. More people prefer better mileage.

TARGET MARKET

BMW looks at the geographic, demographic, behavioral, socioeconomic and beneficial

characteristics of society which helps them to target the market more effectively. It is targeting

the upper levels of the middle class and those in the upper class as well. This is who their

advertising is aimed at. The company feels these are the people most likely to buy their product.

This product has not been initially introduced in Pakistan so we are introducing it. The high

price of this product differentiates it from the use of common man. As Pakistan is not a well off

country so everyone in Pakistan cannot afford this product. The potential market for BMW 2014

series are the males who earn at least a monthly income of PRK. 1,000,000. . That could be

successful industrialists, business men, high officials, diplomats, ministers etc.

We believe our product is appropriate for target market because we are introducing this

product with new features. As we know this is the age of innovation and society is changing

rapidly, we want new and improved products with the passage of time. Our product has new and

modern features and is also equipped with the features of 3 series. BMW was already introducing

friendly power engines in previous series but now in this series we have refined its power engine

which is also a benchmark for other manufacturers. BMW 4 series model is not only comfortable

and supportive but also is premier brand to offer these new features in automobile industry for

coupes. The '4' in its title headlines this new product line for the coupe and emphasizes not only

its stand-out design, but that any way you look at it, the new 4 Series Coupe represents

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something more than its BMW 3 Series. Group of highly income people would prefer quality

over quantity.

Having a comparative advantage over Mercedes for being “sporty and luxurious”, we

also find those customers potential who find BMW‟s youthful high performance attractive. As

Mr. Yang a New York online marketing director once said “My parents always preferred

Mercedes but to me, BMW represents sporty and luxurious, while Mercedes is just luxurious” –

Keeping this quote in mind we could implement the same strategy on the Pakistani rich class,

having similar opinions as Mr. Yang.

The ideal market for BMW would be males ranging from age 25-45, here in Pakistan –

As it is said that the average age of a Mercedes driver is 52 – that is 3-4 years older than a

customer who steers towards BMW due to its “youthful and luxurious” combo.

PRICING STRATEGY

With this new and upcoming model pricing strategy has been revised but not drastically

changed. BMW is still priced above it competitor such as Audi A5 Cabriolet starting at RS

4900000 while the new BMW 4 series has a starting price of RS 5300000. This strategy has been

fruitful for BMW and with this new model it also promises great success. BMW has always

provided a better quality end product and has always charged more. Better performance, better

overall quality, innovation and a luxurious feel is what makes this higher price justified. BMW is

still a unique car in Pakistan; a lower price will make it affordable to the general public which

would take away its USP (Unique selling Point). BMW buyers still prefer to have a unique car

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rather than save money. it is a high end sports car for a higher income group therefore a higher

price has to be charged. Pricing strategy is Pakistan has always been a troubling issue. Duty rates

are high and by the time the product reaches the final customer it has increased almost 3 times.

Current duty rates in Pakistan vary from 150% to 200%. BMW has to keep this extraordinary tax

rate in mind. Duty rates increase with the increase in the size of the engine so BMW has also

introduced a smaller 2.0 liter engine which falls in the lower duty slab.

DISTRIBUTION AND LOCATION STRATEGY

Pakistan has an authorized BMW dealership and the same medium will be used for the

new BMW 4 Series. This retailer has been a reliable partner for BMW for many years and can be

trusted to distribute the new 4 series effectively. With showrooms located ideally in large cities

such as Lahore, Islamabad, Karachi and Faisalabad and more Dewaan motors provides a firm

base for distribution. Not only does Dewaan have remarkable showrooms but also it provides

great services as well. Highly trained staff and well organized sales teams assure a service

matching the standards of any BMW dealership abroad. Cars will be transported via an existing

shipping agreement and stored in the BMW workshop until delivery. A full optional 4 series will

be given to each major showroom as a road test vehicle. Cars will be ordered by the customer

according to their specifications and will be delivered to Dewan motors by the BMW group in

Germany. Customers will receive their cars from these showrooms with proper guidance about

maintenance given by the professionals at Dewaan motors. A rate will be previously decided and

Dewaan motors will receive payment for every car sold. Dewaan motors is the only retailer that

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BMW uses in Pakistan which reduces the mediums of the supply chain assuring a relatively

lower price and guaranteed delivery.

PROMOTIONAL MIX

There are five main aspects of the promotional mix:

1. Advertising

2. Personal Selling

3. Sales Promotion

4. Public Relations

5. Direct Marketing

Additional aspects include Corporate Image (Brand Image) and Sponsorship.

For the BMW 4 Series the two main aspects that will be employed are Advertising and

Corporate/Brand image.

Since 1979 BWM has used the company WCRS for advertising their cars. Therefore, to

launch the new 4 series the same company will be used.

The dominant part of BMW's prosperity is credited to the advancement of a reliable

advertising approach, the 'niche marketing' technique. The organization has based its brand on

four center values. These values are what help sell the products. These are:

1. Technology

2. Quality

3. Performance

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4. Exclusivity

These four values are portrayed in all BMW advertisements. Along with the standard

adverts made and run by the company, BWM encourages individual dealers to run their own

campaigns. Local press, radio and buss advertisements are all standard ways of advertising. The

main focus always has to be the car itself.

Apart from print, TV and radio ads, BWM has also revamped its website to make it

easier for customers to view the product. As Carol Burrows, product communications manager

for BMW, explains,

"The BMW website is an integrated part of the overall marketing strategy for BMW. The

full range of products can be seen and interacted with online. We offer pricing options online.

Customers can go to their local dealership via the website to further discuss costs for purchase of

a car. And it is a distribution channel for information that allows people access to the information

24 hours a day at their convenience."

It is a known fact that when BMW releases a new model they make a new TV ad, a short

film and they get a celebrity to endorse it. The 4 series is a luxury convertible. In order to

promote it extensive marketing strategies are adopted. Print ads in high class, sophisticated

lifestyle magazines are published, ads featuring celebrities and NASCAR and Formula1 drivers

are run, and launch parties are thrown to show off the car. BMW has partnered with the James

Bond franchise as well as the F1 driver Michael Schumacher in the past to promote their cars. In

order to release the 4 series in Pakistan and appeal to the local clientele, they will opt to use local

celebrities in their advertisements. Since performance is a key aspect, BMW sponsors

professional race cars, is promoted at racing events and in other driving publications. Local

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racing events in Pakistan include the Shell Helix Formula One racing events. We propose that

BWM should partner with this and showcase the new 4 series model at the event so that it can

garner a lot more interest from racing fans.

Additionally, there are multiple car shows held in all the major cities of Pakistan. By

promoting the car at those forums, the company can target hardcore car enthusiasts.

In a nutshell, we propose that BMW should adopt the aforementioned above-the-line

advertising techniques. The new slogan for 2013-14 is “Designed for Driving Pleasure.” This

will be the focus of every ad published and run. Potential customers will also get the privilege of

taking the car out for a test drive before making the final decision to purchase it.

Although a local ad featuring a Pakistani celebrity will be broadcasted, it is a custom at

BMW to release multiple TV ads. Keeping this in mind the two already existing ads for this 4

series will also be shown all over Pakistan on selected channels.

It is our opinion that BMW should take into account Pakistan‟s cultural values and then

mold their promotional strategies accordingly.

BMW is known for its new film series focusing on all their new models. These short

films, made by the most cutting-edge, high profile directors are widely available for view on the

company‟s website BMWFilms.com. This new model should also be featured on there. These

films are being advertised as movie trailers on TV, with the catchphrase telling the audience “see

it only on BMWFilms.com.” This website is one of the fastest growing websites on the internet.

And with rate at which Pakistan‟s presence is growing on line this is a good promotion strategy

as a wider audience can be reached, excluding the target market.

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The following is a summary of some of the marketing channels BMW will be using to

promote the new model:

BUDGETS

The number of units sold is just a hypothetical figure but looking at the situation in Pakistan, this

is the amount of units we would be able to sell. Revenue is calculated by multiplying selling

price with the number of units sold. Cost of sales is just an estimate of how much money we

have to pay to the car manufacturers. The expenses are all hypothetical figures.

Operating income is calculated by subtracting expenses and the cost of sales from the revenue

we are generating. The tax percentage currently prevailing in Pakistan is 17% so we calculated

the tax by taking 17% out from the operating income and the basic tax of 420,000 which every

business has to pay to operate in the copy. This is how we calculated the profit for the year.

•BMW Films

•468x60 banners sold on a Run on site (ROS) basis, will flash on websites

•Online ads - to build recognition and a force in the industry. When the customer decides to buy the product comes to mind.

Internet

•Multile local and global ads shown on tv

•Local radio stations sponsoring shows and playing promotional messages on air.

•celebrity endorsements

TV and Radio

•Car magazines, other major publications, e.g. Times Magazine, etc. Print

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428i 435i

Price in Dollars 41425 46925

Price in Pak Rupees 4401406.25 4985781.25

Dollar

Pak

Rupee

Today's exchange Rate 1 106.25

Horsepower 240 300

CC 1800 2200

Import Duty 1.5 1.75

Price in Pakistan for base

model 5300000 8725117.188

Total

Expected Sales for year 1 40 30 70

Revenue in Pak Rupees 212000000 261753515.6 473753515.6

Revenue from Maintainance 1752500 1522500 3275000

Total Revenue 213752500 263276015.6 477028515.6

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Cost of Goods Sold

Car Cost 176056250 149573437.5 325629687.5

Transportation Cost 581120 653760 1234880

Total Cost of Goods Sold 176637370 150227197.5 326864567.5

Gross Profit 37115130 113048818.1 150163948.1

Expenses

Electricity

4480000

Premises Rent

2500000

Office Expenses 2000000 2000000 4000000

Salaries 13000000 13000000 26000000

Maintaince of Cars 3000000 3000000 6000000

Insurance

1700000

Depreciation

2000000

Advertising

27000000

Fuel Expenses

250000

Total Expenses 18000000 18000000 73930000

Operating Profit 19115130 95048818.13 76233948.13

Income Tax

13379771.18

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Profit after Tax 62854176.94

Total

Expected Sales for year 2 43 33 76

Revenue in Pak Rupees 227900000 287928867 515828867.2

Revenue from

Maintainance 2745600 4533500 7279100

Total Revenue 230645600 292462367 523107967.2

Cost of Goods Sold

Car Cost 189260468.8 164530781 353791250

Transportation Cost 624704 719136 1343840

Total Cost of Goods Sold 189885172.8 165249917 355135090

Gross Profit 40760427.25 127212450 167972877.2

Expenses

Electricity

44680000

Premises Rent

2500000

Office Expenses 2500000 2500000 5000000

Salaries 16000000 16000000 32000000

Maintaince of Cars 3000000 3000000 6000000

Insurance

2000000

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Depreciation

2000000

Advertising

21000000

Fuel Expenses

250000

Total Expenses 21500000 21500000 115430000

Operating Profit 19260427.25 105712450 52542877.19

Income Tax

10508575.44

Profit after Tax 42034301.75

CONTROLS

The BMW 4 series is designed to drive pleasure – Hence to handle the control measures

for progress is necessary for us, because definition of “pleasure” is different among different

target markets – therefore are control measures should be strict and effective in attaining goals.

There are following control measures for success:

BMW Efficiency Dynamics

It‟s an intelligent light weight construction of the car body using materials like aluminum

that saves fuel and improves performance – It is an excellent example of how efficient driving

combines with dynamic driving. BMW models with this technology its 4 series model that

ensures progress in sales and standard of performance.

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BMW security vehicles

To increase the credibility of sales, BMW ensures its customers with the safety of

vehicles – Like in the 4 series, It combine the positive characteristics of a series model with a

special reinforcement that‟s undetectable even to the experienced eye. You won‟t find a more

elegant and discrete way to combine driving pleasure and safety.

BMW Diplomatic Sales

With BMW Diplomatic Sales, Customers can select from all BMW models and

equipment variants wherever they are in the world. Fancy an English right-hand drive in

Pakistan? No problem. BMW experts will be happy to help their customers put together their

ideal vehicle in accordance with their individual needs.

As a diplomat, BMW customers constantly face new challenges – so it‟s important that

their BMW doesn‟t become one of them. Wherever their duties take them, a worldwide network

of more than 4,000 dealers and personal service from our BMW specialists, they won‟t have to

worry when it comes to their BMW.

Hence by assuring that a customer gets what wanted – BMW ensures customer interest,

hence high progress in sales.

BMW Corporate sales

Top-quality vehicles with fuel-efficient, money-saving engines, Employees motivated by

the prospect of dynamic driving and greater fuel efficiency in a company BMW or MINI.

Cutting-edge technologies like BMW Efficient Dynamics and BMW Connected Drive as well as

MINIMALISM and MINI Connected that help customers drive more safely and economically. A

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team of International Key Account Managers is on hand to provide expert, cross-border support

in over 150 countries around the world. These are just some of the benefits customers can look

forward to when they join forces with BMW Corporate Sales.

At BMW Corporate Sales, we always offer our customers individualized solutions that

reflect the situation in their specific country.

Above are some of the control measures that BMW takes to determine progress with their

successful implementation

Hence the return on investment also is successfully controlled due to the financial

services BMW executes. Financial services are a key factor for success in today's mobile world.

The ideal partner for private and corporate customers, BMW Financial Services offer an

extensive product portfolio which supplies expert information regarding financing and leasing,

insurance, asset management, dealer financing and company car pools.

CONCLUSION

This report is a complete marketing plan detailing how to launch the new 2014 BMW 4

series Coupe in Pakistan. The figures and the statistics used in this are taken from the BMW

annual reports and or are assumed estimates (stated where used). The marketing mix: product,

price, place and promotion have all been analyzed in detail to come up with a plan that will

hopefully lead to the successful launch of the car in Pakistan at the same time as when it is

released in foreign markets.