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Transcript of BMW Group
Only some of the cars are targeted at families, the BMW X1 and X3 and maybe also the ActiveHybrid 3, 5 and 7.
The MINI is more for the sort of market that we are hoping to bring into BMW, their cars are of a much lower price range, from £13,750 to £29,440 (MINI, 2014).
"The primary thing that women look for when they're shopping for a car is the safety features, because they have concerns for their own personal safety as well as that of their family and their child."
The Ultimate Driving Machine.
In an Ever Changing World.
The Automobile Industry Macro-environment.
Bayerische Motoren Werke Aktiengessellschaft (BMW AG)
is a global leader in the automobile
and motorcycle industry.
BMW have recovered from the recent economic downturn successfully selling 1.66m vehicles in 2013 - 7.5% increase from the previous year. The brand is also reporting strong figures for the first 3 quarters in 2014 and is predicted to sell 1.90m vehicles by the end of the financial year.
BMW own 3 of the strongest brands in the automobile industry; Mini, BMW & Rolls Royce. They have positioned themselves as a market leader in terms of aesthetics, dynamics, technology & quality.
In order to meet the changes of volatile marketplace BMW have adopted Strategy ONE which is a strategy to focus on;- Growth, Shaping the Future, Profitability and Access to Technologies and Customers.
Long-Term Mission - By 2020 BMW aim to be the leading provider of premium products and sevices for individual mobility
BMW are a major player in the luxury car market. It's main competitors are similar to BMW when in terms of quality, such as Audi & Lexus.
BMW would be mostly in the Market Penetration and Market development segments when positioned In Ansoff's Matrix. This is because they are selling existing and new products (cars, motorcycles) to existing markets (businessmen) and developing secondary markets (families, women, elderly/disabled.).
BMW could be considered a market leader however simply being a leader is no guarantee of long-term success.
"The bigger they are.."
BMW have a very heavy competition when it comes to selling cars. There are quite a few different car companies that are perceived to be of similar quality to BMW.
Most of BMW's main competitors are going for a similar market to BMW, they are providing luxury vehicles that aren't too expensive.
Here are a few of the competitors' advertisements.
In today's "always-on" world brands touch consumers in ways previously thought impossible. They have become ultimately fundamental to our way of life.
In the past marketing used to be about matching the right product to the right person at the right time.
We believe things have evolved. The game has changed.
Our motto is "There is no problem too small" because we believe all big plans can emerge from fine details. To be successful today's marketplace it is vital to integrate digital data into the marketing mix in order to develop different ways engage emerging consumer groups.
At Blue Bonsai we understand this connection between the brand and the key stakeholders that brand influences. It is the core ethos of this understanding that helps us exploit natural synergies and create campaigns that truly move people.
1. Situation Analysis
2. Creative Strategy
3. Advertising Examples
Rising petrol prices
Economic recovery from 2007 UK recession
Rise in car sales on finance plans
Fluctuating GBP:EURO Exchange rates
Around 70% of driving households own more than one car
Increasing levels of green technolgy
Manufacturing breakthroughs (new materials, green production methods)
Integration of "internet of things" in the automobile industry
Increasing demand for eco friendly vehicles
Driver-less cars/augmented reality/new engines
Changing legislation surrounding CO2 and other emissions
Must comply with End-of-life Vehicles Regulations 2003 act when choosing parts.
Low European Import Tax
EU Stability and emerging "Euro-scepticism"
Other UK automobile taxes (VAT, Road tax etc.)
Changing family types (single parents, same sex marriages etc)
Aging population in UK and global markets
Changing consumer attitudes towards spending (Increase "pay-day" loans and finance packages
Rising life expectancy
Gender pay gap increasing in 2014 to 19.1% despite changing attitudes
In An Everchanging World..
SWOT Analysis for BMW in 2014
Good brand reputation
Strong R&D - Environmental vehicles, Driverless cars, Advance safety features
High Quality Product
Strong Global Presence
Economies of Scale
Committed to CSR
Increasing fuel prices = rise in hybrid and green cars
Positive consumer veiws towards green products
Release new products to fuel growth
High workforce & production costs
Perception of high price may alienate some segments
Rise in petrol costs
Changing employment/tax laws may affect costs.
Highly competitive marketplace
Increased cost of raw materials
Increasing fuel price
Growing exchange rates
New mobility solutions such as
Who are we?
PR & Sponsorship
BMW's main selling focus is perceived quality and it is on this quality that this campaign is based.
We also understand that other key selling points for the BMW brand include brand loyalty, brand awareness, positive associations (films, celebs etc) and other assets such as patents, trademarks and supplier relationships.
Brand image will be manipulated and adapted though the use of psychological differentiation(BMW – Still The Ultimate Driving Machine (for woman/for me/for you etc). Guaranteed. ) and symbolic association. (German Engineering – Higher Quality – “Must be safer” in terms of choice in the consumer mind
Our Creative Strategy will focus on adapting the BMW brand image to current sociological trends such as the rise in aspirational women and increased mobility for disabled and elderly markets - it's important to do this without diluting the core brand.
Objective - To establish BMW as a leading choice for professional women's cars and grow the market by 15% by 2020.
(The Car Connection, 2012)
I hope you find the information we've presented to you interesting. We understand change can be scary, but we'll be with you every step of the way. We want to change and develop attitudes towards the BMW brand in order to help you grow sales and shape the future. We understand that BMW might sell a lot of cars - but we also know that it might not be as much as you would like to sell. We can help with this.
We look forward to hearing from you soon.
Marketing Communications Mix
Marketing Communications Mix (Fill, Hughes 2007)
1. Advertising –[What ad’s will we run? Where? To who? Why? What channels radio tv etc?]
(Ad’s used to be one to many but now the distinction between ads and personal selling is shrinking due to the increase in targeted ads and analytic software]
2. Sales Promotion [Are we having a finance deal? What about “Green” systems – e.g “Women deserve better – Trade up your Mini Cooper to a BMW
3. Public Relations - Brand messages, "The Eco Journey Documentary"
4. Personal Selling - Dealerships, Online, 3rd party dealers
5. Direct Marketing - Targeted ads, Flyers.
- Marketing Communications Mix (Fill, Hughes 2007)
Sponsorship is a very effective marketing communication tool in today’s modern celebrity culture (Friedman, 2004 sited in Hughes and Fill, 2006)
It is vital that the sponsors we choose really represent the brands core ethos of high quality and prestige.
One idea we can suggest is the sponsorship of celebrity couples.
The man can show its still a product for men while the women shows that we are targeting new markets. It also plays on the fact that households tend to have more than one car now
From a Public Relations perspective BMW can show that it is an ethical company by standing for certain social issues such as lowering the gap in pay between men and women. This should allow like-minded consumers to attach an emotional component to the brand which should promote loyalty.
If the pay gap between men and women, they will have established themselves as a reliable, safe and ethical choice for an emerging market of women who will have more disposable income and may require a quality car to establish new status.
Here's a little breakdown of how we will use our £27m budget:
BMW Target Market Segmentation
There will be 7 people in the agency (Dan, 2012) Their salaries will be as follows:
Marketing Director - £75,000
Market researcher - £47,000
Campaign Manager - £36,000
Account Manager - £35,000
Marketing executive - £29,000
Online Marketing Executive - £27,000
PR Executive - £25,000
Total Salary - £274,000
Eco-friendly mini launch
Background words designed to have an
emotive appeal in order to convince our
target market the new Eco-Mini is cool.
The chosen colours stand out and
show that this is a fun product.
It shows that it can be customized and made
unique which is an important factor in our target
markets buyer behavior
Prompts viewer to seek more information on the product.
Sell the quality & performance of the brand
Deliberately targeting both aspirational men and women
Sales promotion & prompt
Reassuring professional image; smart colors
Reoccurring tag line reminds consumer
that although things have changed BMW is still a leader in quality.
Our MarComms Priority
2. Sharable Experiences
3. Return on Investment
Predominantly Male, may be Female.
Full-Nest 1 life cycle stage
High brand loyalty
Seekers of Status & Comfort
Successful, A/B social class
Professional / Retired
Empty Nest life cycle stage
Very high brand loyalty
Seekers of Status
Succeeder. A Social class
Growing Female Demographic.
Bachelor life cycle stage
Medium loyalty, some cult status
Seekers of Self Expression
Aspirational, B/C social class
The BMW Group must utilize effective segmentation, targeting and positioning in order to offer products that are attractive to different members of population. Special attention must be paid to the core target market however BMW must continue to focus on developing emerging secondary markets
We will spend the rest of the budget on the following:
Marketing Mix: £10,690,400 (40%)
R&D: £8,017,800 (30%)
Sponsorship and PR: £4,008,900 (15%)
Market Research: £4,008,900 (15%)
commitment to technology
This advert would be run
for our CORE market in
order to make sure they
do not feel alienated.
Note the use of masculine colors
and shapes as apposed to the Mini ad.
how BMW will embrace
and continue to create new
technology in the future
and it is a sharable experience
Primary Market - Professional Males aged 30-50
Secondary Market - Aspirational Professional Females aged 25-45
Tertiary Market - Disabled and Elderly customers
Market Research shows that females and disabled customers resonate best with concepts of Safety, Quality, Individualism (Personalization) & Prestige.
Tactics to Target New Markets
Conduct further research into the emerging markets (female, elderly) to discover which brand attributes of BMW emotionally resonate with the customer.
Conduct further research to discover which automobile product features are preferred by females in 2014
Develop new products to appeal to these emerging markets
Develop the brand through the use of social media, mobile applications and emerging web 2.0 tools to truly connect with people (not just to advertise)
We also want to get current users to continue to use BMW's cars and services as well as attracting new users to the brand