Presentation Script of BMW

7/28/2019 Presentation Script of BMW

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The History of BMW

The origins of BMW trace back to 1913 when Karl Friedrich Rapp,

a Bavarian who had been a well-known engineer in a Germanaircraft company, formed Rapp Motoren Werke in a suburb ofMunich. The company specialized in airplane engines howeverRapp found that they were problematic and suffered fromexcessive vibration. Nearby, Gustav Otto, also an airplanespecialist, set up his own shop, Gustav Flugmaschine fabrik,building small aircraft.Presentation Transcript

Because of the faulty engines, Rapp Motoren Werke secured a

contract with Austro-Daimler, who was unable to meet itsdemands, to build V12 Aero engines under license. The companyexpanded too quickly, however, and by 1916 Rapp resigned fromthe company because of financial troubles. In his place FranzJosef Popp and Max Friz, two Austrians, took over the company.In March that same year, Rapp Motoren Werke merged with


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Gustav Flugmaschinefabrik to form Bayersiche Flugzeungwerke.It was shortly afterwards renamed Bayersiche Motoren Werke(Bavarian Motor Works), or BMW, forming the company we knowtoday.

In 1917, BMW's first aircraft engine went into production, the 6cylinder Type IIIa. In 1919, using an aircraft powered by itssuccessor, the Type IV, Franz Zeno Diemer set an altitude recordof 9,760 meters (32,013 ft) After the Treaty of Versailles wassigned in the same year, prohibiting BMW from building aircraftengines, production switched to air brakes for railway cars. WhenBMW started once again tobuild aircraft engines in 1922, nofewer than 29 world records in aviation were set with them. The

current BMW logo, introduced in 1920, was based on the circulardesign of an aircraft propeller.


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A couple of years later, with BMW still having no secure financialfoothold, one of the most memorable models in its history wasintroduced. Launched in 1956, the BMW 507 quickly becamefamous. The light-alloy 2-door bodyshell with a retractable soft

top, designed by Alberecht Graf Foertz, has remained timeless asevidenced by the newly introduced Z8, which draws unmistakableclues and its overall shape from it. A large 3168cc V8 engineusing dual downdraught carburettors powered the 507 andprovided 150 horsepower at 5000rpm, enough for an impressive124 mph top speed (200 km/h) but not enough to topple its mainrival, the Mercedes 300SL. While only 252 examples of theinstantly recognizable 507 were ever produced, it remains a

symbol of BMW's struggles and ultimate triumphs during the fiftiesafter the end of the War.

Today, the Z3, Z8 and all of the 3, 5, 7 and Motorsport seriesmodels continue the BMW tradition of building excellentautomobiles with a special emphasis on performance, style andtechnological advancements. 1992 was another year-to-be-remembered for BMW when it, for the first time, outsold Mercedesin Europe. Hopefully in the future the rivalry between these and

other makes will persist and companies such as BMW willcontinue to build great cars.

E-Marketing Strategies adopted by BMW.

E-Marketing Strategies adopted by BMW. BY- ASHISH PAREEKPGDM-IB (A.S.M.)

CONTENT:CONTENT Company profile Sales report Product strategyScenario before 2001 Turning point -2001 Target audiencePresent marketing strategies


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Company Profile:

COMPANY PROFILE BMW (Bayerische Motoron WorkeAktiengesellschaft) was founded in 1916 and publicly traded since1969. The company produces and markets a varied range ofhigher end sporty cars and motorcycles. It also operates anaircraft engine division under the brand name of Rolls Royce. Thecompany has worldwide subsidiaries and manufacturing plants in13 countries namely(Germany,Austria,UK,USA,Mexico,Brazil,SouthAfrica,Egypt,Thailand,Malays-ia,Indonesia,Vietnam and Philippines)

Product Split of BMW:

Product Split of BMW

Slide 5:Brand Recall

Sales figure from 1996 to 2006:Sales figure from 1996 to 2006 Impact of INTERNETMARKETING is visible (30% growth)

Sales volume for 2007-2008:Sales volume for 2007-2008 Fall by 8.2%

Product Offensive Strategy:Product Offensive Strategy FEATURES: In the early 2000s, BMWbegan to restructure its business. It focused on strengthening itsposition as the market leader in the premium segment ofautomobiles across the world. In line with this, it adopted aproduct offensive strategy which aimed at flooding the automobilemarket with new launches (i.e. a new product every three


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months). BMW increased its R&D expenditure by 53% to supportthis strategy. Some of the new cars launched as a part of thisstrategy were Mini One, Mini Cooper, new BMW 3 SeriesCompact, new BMW 7 Series and Z4 Roadster. By 2002, BMW

had overtaken Mercedes and stood second in the premiumsegment of the US automobile market, next only to Lexus

The Story Before 2001:THE STORY BEFORE 2001 Before 2001 the majority ofBMWs success is attributed to the development of consistentmarketing policy, the market niche strategy. The company hadfour core values Technology, Quality, Performance, Exclusivity

the Company used advertisements as a means of marketing andthese advertisements evolved in response to economic,environmental and competitive changes.

Promotion strategies before - 2001:Promotion strategies before 2001 Radio advertisements TV andPrint ads Brochures and Price lists Events and Trade fairs Bus

Advertisements

Turning Point - 2001:In year 2001, they launched BMWFilms.com, The Hire (a filmseries consisting of five different short films) has been singled outas the first high profile, big-budget, celebrity-laden Internetmarriage of advertising and entertainment. Traffic to the site wasup 55% to 214,000 unique visitors compared to only 138,000 theprevious week. (According to Web measurement, firm Nielsen/Net

Ratings) Turning Point - 2001

Slide 12:Average work-hard, play-hard customer was 46 years old, with amedian income of about $150,000. Two-thirds were male,


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married, and had no children. As BMW sliced and diced its marketfurther, an interesting statistic surfaced: Roughly 85% of BMWpurchasers used the Internet before purchasing a BMW Inaddition to the BMW Films series the promotional campaign

consisted of TV spots that copied trailers, and print and onlineadvertising, which were designed to drive consumers to the website (Hespos, 2002). TARGET AUDIENCE:

Slide 13:Never before (or since) had an automotive company taken such astrong stance to drive consumers to the Web, and the results arecompelling. More than 10 million films have been viewed from

BMWFilms.com. Nearly 2 million people registered on the site,with 60% of those registrants opting to receive more informationvia e-mail. An astonishing 94% of registrants recommended filmsto others, seeding the viral campaign, and more than 40,000people voluntarily responded to a survey. RESULTS :

The guerilla public relations campaign:The guerilla public relations campaign the guerilla public relations

campaign utilized several diverse promotion tactics includingseeding news of the BMW Films at key Internet entertainmentrumor sites and a radio DJ program in 20 key metro markets.BMW sales increased by 12.5% compared to 2000, surpassingthe 200,000 mark for the first time in history.

BMW Car maker uses web mostly to drive itsbrand:BMW Car maker uses web mostly to drive its brand. Carmanufacturer BMW takes the phrase 'beyond the banner'seriously. In its ads for the BMW Compact, the car drives out ofthe banner ad and around the sides of the browser window, toshow how much it "loves corners". BMW's online strategy is highly


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brand-driven in the UK, with click through considered to be a sidebenefit.

Slide 16:The company has used traditional banners, banners with pull-down menus, Superstitials, transitional ads which appear betweenpages, sponsorship and dynamic html ads like the one mentionedabove to promote its brand message--the benefits of ownership interms of the driving experience. The car company's researchshows that of the people who were exposed to its onlineadvertising in a particular environment and then visitedBMW.co.uk, more than 80 percent did not click throughstraightaway, but visited later. This shows, says BMW, that theyhad retained the brand message, even after leaving the banner.

Slide 17:SUPERSTITIALs are highly interactive, non-banner ads that canbe any size on the computer screen and up to 100K in file size,featuring full animation, sound and graphics capable of effectivelyconveying integrated advertising while protecting a Web site's

performance. SUPERSTITIALs can be used to achieve multipleadvertising goals, including branding, direct marketing, commerceand entertainment. SUPERSTITIAL ads play only once fullyloaded, ensuring that every user gets a consistent and completebrand message and that each advertiser pays only for guaranteedimpressions.

Marketing Channels:Marketing Channels Internet 468x60 banners are sold on a run-of-site (ROS) basis, meaning, they will appear on every searchresults page and on an equal rotating basis with other advertisers'banners. For online ads, each advertiser is given password-protected access to Real-Time advertising statistics, TelevisionThe percentages of viewers of MSNBC and Bravo who are in


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BMWs target income bracket constitute 20.5%. The percentageof viewers in BMWs target age group (25-34) is 26.5%. Print DVD

Result Of The Campaign:RESULTS OF THE CAMPAIGN In 2001, BMW sales increasedby 12.5% compared to 2000 During the four month core of thepromotion, the films were viewed more than 11 million times Clickthrough on that Superstitial was 4.7 percent,

E-Commerce In BMW:E-COMMERCE IN BMW the BMW group uses e-commercestrategies to explore the market for effective business. The groupsees e-commerce as both a challenge and an opportunity for theentire company. The BMW Groups production network ischaracterized by agility; the ability to respond quickly and flexiblywithin a changing framework The BMW group introduced anonline ordering system in 1998 which gives dealers the option ofshowing customers their desired car on the screen and confirmingthe delivery date on the spot.

Slide 21:Through the system, the time frame when the vehicle can be builtwith the desired fitting is fixed in few seconds and the place in theproduction process is immediately reserved and themanufacturing logistic department informed The BMW group hasoptimized internal processes to such a level that changesaccording to the customer wishes regarding engine capacity,color upholstery can be accommodated up to ten working days

before the start of the production without effecting the deliveryBMW, utilizes the internet as an integral tool for developingsuperior customer relations, through providing an environmentinclusive, both to existing and potential customers, throughexpressing views and providing feedback on product development


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Slide 22:BMW is the leader in New Zealands booming luxury car market,holding a 24.5 per cent market share Last year, New Zealanderssnapped up a total of 1,600 new BMW vehicles of all types. In2002 customer database system was Unitrac contactmanagement system Goldmine was a critical component ofBMWs shift from a sales orientation to an organization-widecustomer-centric focus. BMW chose Goldmine because it offeredseveral key benefits: Offer excellent value of moneyCustomization to individuals requirements Company has singleview of customer relationship increasing the companys ability toensure satisfaction. Goldmine enables us to get a snapshot of the

environment incredibly quickly Implementation of CRM

Present Marketing Strategies:Present Marketing Strategies E-mail Marketing e-catalogueBrochure Registration for test-drive Mail alert Personalizationmessage News alerts New car launches Used car specialsEvents VIP Club Info -Concerts, musicals, movies and relatedshow information BMW accessory offers Customer Thank you

and congratulation brochures Campaign For Its Luxury CertifiedPre-Owned. We Swear. Program Excellent information

Major e -Marketing strategies:Major e -Marketing strategies Website Registration Forms:Permission based forms allow web visitors to subscribe withautomated notification allowing confirmation of subscription andthank you messages. Registrations for Events and New Vehicle

Test Drives: New Vehicle promotions and Event Registrations aresent out via email, allowing customers to easily register via onlineforms, advising what time and day they would like a test drive.Brisbane BMW are notified via email lead sheets and customerregistration data is automatically compiled in a registrationdatabase making it ideal for tracking and follow up. Registering


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customers also receive an auto reply advising they have beenbooked in and will be contacted. Service Reminders and Offers:Service reminders and special offers are emailed frequently as acost effective and powerful way of keeping services up to date

whilst allowing customers to take advantage of special offers.Sale Events Notices: Regular sales event brochures are emailedto prospects and customers advising of great purchasingopportunities. Accessory Offers: The BMW accessory range isfrequently promoted using email catalogue brochures.

BMW Z4:BMW Z4 BMW recently launched an email marketing campaign

for the release of the long awaited Sporty new Z4 Convertible to aselect group of customers. The purpose of the campaign was togenerate interest for Test Drives. The campaign design includedattractive graphics detailing the impressive characteristics of theZ4 branded Test Drive Registration forms allowing instantresponses from interested recipients Within 24 hours of the 1303recipients who the brochure was sent to, 55% read the email with8.6% responding and 4% registering instantly for a test drive.

Slide 27:Bibliography www.autointel.com www.mwerks.com Case studyBrisbane BMW www.google.com www.bmw.com

Slide 28:


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Marketing Strategy of BMW

Bayerische Motoren Werke AG (info) (BMW), (literally English:

Bavarian Motor Works) is a German automobile, motorcycle and

engine manufacturing company founded in 1916. It also owns and

produces the Mini brand, and is the parent company of Rolls-

Royce Motor Cars. BMW produces motorcycles under BMW

Motorrad and Husqvarna brands. BMW is known for its

performance and luxury vehicles, and is in fact global leader in

premium car sales.

After World War I, BMW was forced to cease aircraft (engine)

production by the terms of the Versailles Armistice Treaty.[2] Thecompany consequently shifted to motorcycle production in 1923

once the restrictions of the treaty started to be lifted,[3] followed

by automobiles in 192829.[4][5][6]


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The circular blue and white BMW logo or roundel is portrayed by

BMW as the movement of an aircraft propeller, to signify the white

blades cutting through the blue sky an interpretation that BMW

adopted for convenience in 1929, twelve years after the roundelwas created.[7][8] The emblem evolved from the circular Rapp

Motorenwerke company logo, from which the BMW company

grew, combined with the white and blue colors of the flag of

Bavaria, reversed to produce the BMW roundel. However, the

origin of the logo being based on the movement of a propeller is

in dispute, according to an article recently posted by the New

York Times, quoting "At the BMW Museum in Munich, Anne

Schmidt-Possiwal, explained that the blue-and-white company

logo did not represent a spinning propeller, but was meant to

show the colors of the Free State of Bavaria." [9]

BMW Marketing Innovation

since the competition started to imitate BMWs advertising

messages of outstanding quality, BMW decided to come up with a

unique way of reaching its target audience. The company did so

by hiring Fallon Worldwide, and advertisement agency based in

Minneapolis, MN, to come up with a new campaign. Fallon

developed the concept The Hire series. Fallon's responsibility

also included the way in which these movies were to be delivered

to BMW's target audience. It was also questionable whether the

campaign should be the same throughout the world, or if it should

be localized to adapt to language and consumer taste differences.

In order to attract highly recognized directors, as well as actors,


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BMW was willing to spend a large amount of money.

In addition to coming up with a unique advertising campaign,

BMW also wanted to change their image. One of the goals was tomake BMW look, not only cool, but likeable, which the brand

needs to do to combat negative perceptions some people have

based on old associations with the 80s style yuppie arrogance.

Company Profile

BMW (Bayerische Motoren Werke Aktiengesellschaft) was

founded in 1916 and has been publicly traded since 1969. The

company produces, and markets, a varied range of higher endsporty 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 nameof 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. The company also operates its own

financing company, which offers financing for vehicles.

Automobiles accounted for 78% of 2000 revenues; vehicle

finance leasing, 18%; motorcycles, 3% and other, 1%.


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Global marketing strategy of BMW

A BMW 7 Series sedan is displayed inside the BMW 7 Series

Mobility Lounge which the German automakers Korean unit

opened in Cheongdam-dong, one of the wealthiest districts insouthern Seoul, to cater to the buyers of the flagship luxury

sedan. / Courtesy of BMW Korea

German automaker targets premium segment only

and succeeds

By Park Young-ryeol

The world has continued efforts to globalize the market. Global

players, including BMW, a prominent automaker from Germany,


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are vigorously articulating marketing strategies to create value

that better serves customer needs.

Firms eloquently and heavily emphasize marketing functionsbecause they play a critical part in identifying gaps in the market

and developing new products and services to fill those gaps.

BMW seems to understand this logic of the necessities for global

marketing in an ideal manner to perform beautifully in the Korean

market.

In order to create a successful marketing plan, managers must

configure the varying aspects of marketing mix and identify

precise market segmentation to understand different patterns of

customer purchasing behavior.

BMW implemented a different marketing mix to sell cars to

different socioeconomic segments, aggressively emphasizing

premium segments. BMW initiated the goal of segmenting thepremiummarket by optimizing the fit between the purchasingbehavior of consumers and the marketing mix to maximize sales

to that segment. Responding sensitively to unique values and

purchasing behavior enabled BMW to transcend intended

performance.

Presentation Script of BMW

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