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BMW of North America

Dream it. Build it. Drive it.

1918

Out of aircraft

engine business

1920

1928

BMW manufactured motorcycles, aircraft engines, and missiles for the German army.

Most of the BMW factories were destroyed during this period.

Three year ban, caused downsizing of BMW's manufacturing capacity.

1948

1970

1975

1990

1994

2000

2002

2003

2008

U.S. Car distribution:

- The internet changed the way people bought cars.

- The declining interest in cars among young people.

- BMW franchise

BMW group:

- €45 billon market capitalization

- Quandt family owns 47% of the company stock

- 53% of the stocks is publicly traded on the Frankfurt Stock Exchange.

- Headquatered in Munich

- Sold in 130 countries

- 25 manufacuring facilities

- Highest unit sales: 1.6 million cars

1995

1997

1999

2011

2006

2012

Manufacturing

1992

Mass customization

1922

Dream It. Build It. Drive It.

2009: U.S. sold 15% of customized cars and Europe sold 50%.

2010: New marketing program X3 model: Dream it. Build it. Drive it.

The communication Manager at BMW Patrick McKenna explained why BMW chose the X3: “We picked the X3 for this project because it was a new product, and because any new BMW only comes every seven years so the lifecycle is pretty long. When you consider adding something to a product, you can only do so where there is a completely new product involved.”

The customers are engaged in the customizing process

- Dream about the car

- Involved in individual customizing (recorded with cameras to make an experience)

- Driving it when it is delivered

Dream it. Build it. Drive it.

America is different from the world if they want something they want it now.

- Delivery time 7 weeks.

- Moved to South Carolina.

- New Delivery time 2-3 weeks in the U.S.

- Germany extra delivery time of 1 month.

- Competitors Audi and Mercedes delivery time 8 -16 weeks.

The main reasons for “Dream It. Build It. Drive It.” was because the sales of the previous X3 was dramatically dropping in the U.S. This worked X3 became the best-selling car in 2011.

To expand the BMW success:

- New target group woman

- Focus on new media

- App for Apple’s mobile advertising network called iAD.

- Woman’s glossy magazines

- TV appearance with Martha Stewart

Joseph Wierda:

- BMW X3 Product Manager

- Customization program: Dream it. Build it. Drive it.

- Important question: Extend across all BMW product lines?

Effect for regional and global manufacturing strategy, sales and distribution strategy and overall competitive positioning

James Bond movie The World Is Not Enough: BMW Z8 luxury convertible

First introduction of the BMW X3

Overall U.S. car sales dropped

Return on motorcycle

and car production

BMW bought British Rover Group PLC

End of BMW's James Bond engagement

Introduction logo

James Bond movie Tomorrow Never Dies: flagship executive sedan BMW 750iL

Dream it. Build it. Drive it

Should the BMW of North America Group expand its “Dream It. Build It. Drive It.” campaign to its flagship X5 full-size SUVs in order to revitalize the models declining sales?

Or should BMW use the campaign for the new X4 launch planned for 2014?

Was the personalization aspect overrated?

Start of the Billboard Battle with Audi

BMW of North America:

First office established in the U.S. New Jersey, Woodcliff Lake

Mission impossible ghost protocol X3 and 6 series BMW i8 concept car

BMW: Bayerische Motoren Werke

Introducing BMW 3, 5 and 7

series

First appearance in James Bond movie, Golden Eye, of BMW Sporty Z3

First BMW car

- three cylinder

- 15-horsepower

Introduction of Efficient Dynamics Concept

Change in consumer behaviour: cars were kept for a longer period

Successor of Rapp Motorenwerke

Change in strategy to major technological improvements

The Treaty of Versailles

The BMW X3 target customers:

- New to the luxury market

- Young families who don't need large space

- Empty nesters

Customization at BMW

2000: the KOVP concept launched (Customer-oriented sales and production process)

- Making vehicle equipment in the last moment

BMW Individual program was available for all cars in Europe and in the U.S. only for the 6 and 7 Series.

Joseph Wierda: "The BMW Individual Program caters more to high-end customers who order something that is beyond what is typically available."

BMW returned to aircraft

engine manufacturing

BMW successfully relaunched the MINI-brand with a new strategy

Joint venture with Rolls Royce

Use slogan: Ultimate driving machine (1970)

1945

1940

1918

1922

1945

1948

2001

2003

The Hire movies.

BMW Individual Program

Russia: assembly for the 3, 5, 7 series and the X3

Great Britain: Home of MINI and Rolls Royce production

Berlin: BMW's sport and touring motorcycles manufacturing

Germany: The main BMW manufacturing sites

No product development only pre-war copies.

1945

1952

Italy: motocross and endure bikes manufacturing

Close to being acquired by Daimler-Benz.

1950

1960

South Carolina: Plant Spartanburg

Egypt: assembly for the 3, 5, 7 series and the X3

India: assembly for the 3, 5, 7 series and the X3

“Use of flexible processes and organizational structures to produce varied and individually customized products and services at the price of standardized mass-produced alternatives.”

Benefits for the manufactures:

- Lower cost

- Reduce overheads

- Higher margins

- Benefit for the customers

- Find what they want without paying for it

Here’s a car, where’s the customer for it?

Thailand: assembly for the 3, 5, 7 series and the X3

Maleysia: assembly for the 3, 5, 7 series and the X3

Indonesia: assembly for the 3, 5, 7 series and the X3

.

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