BMW Marketing Plan

BMW Group

Shane

Wilson

Zena

Hadjiyerou

Ali

Stamm

Megan

Merlino

(Bavarian Motor Works)

Marketing Mix

Place

Product

• Operates in almost 100 countries
• Approx. 4000 dealers
• Headquarters in Munich, Germany
• The showrooms of BMW are found in the most premium parts of urban cities
• Sleek, easy to use website

• luxury product
• high quality
• excellent brand pull
• for upper class
• powerful engines
• great speed
• safe & reliable
• BMW owns minnie

cooper & Rolls Royce

• 15 different models
• 3 segments-
• vehicles, motorcycles, +

financing

Mission Statement & Strategy Number ONE

Marketing Metrics

Mission and

Strategy Number ONE

• BMW has a mission statement, but their strategy is how the company strives to achieve its goals
• This strategy is called Strategy Number ONE and it and the mission were both brought about in 2007

Price

4 P's

Promotion

Strategy Number ONE

Mission

"The BMW Group is the world’s leading provider of premium products and premium services for individual mobility."

-BMW's mission statement

until the Year 2020

Used to align the BMW Group with two targets: to be profitable and to enhance long-term value in times of change.

The strategy contains four pillars:

• Growth
• Shaping the Future
• Profitability
• Access to Technologies and Customers

Financial Information

Market Share

• Value based pricing
• Premium priced car
• Not aimed at everybody
• High price creates the "want" feeling
• High cost of marketing to maintain brand image
• Prices vary great deal from around $28,000-$150,000
• Factors affecting pricing
• engine size, motor sport version, etc.

• 2012 BMW ranked worlds most reputable company by forbes.com
• Ads- TV commercials, print advertisements, car launches,
• Discount offers for its valuable customers
• Movies- James Bond
• Ads are sleek, higher quality
• Sales promos only in an occasional manner- if used frequently may cause depreciation of premium brand value
• To the public, BMW is associated with success

• According to Forbes Magazine, in May of 2014, BMW had the largest market share in United States Market for Luxury Vehicles

Top 3:

• BMW- 23.6%
• Mercedes- 23.2%
• Lexus- 21.4%

• BMW has continued to rise over the past five year
• Net Profit has multiplied 25 times since 2009, after the recession hit

Growth Strategies

Sustainable Cars

i3

i8

• Began production in 2013
• Product unveiled July 29th
• Retail customer production began September 18th
• 2% of BMW passenger car sales in the American and climbed to 5.4% in September 2014

• Released in Germany in June 2014
• Deliveries to retail customers in the U.S. began in August 2014
• US$135,925
• 397 units through November 2014
• The i8 is sold out in the U.S. through 2015

BMW vs Tesla

• BMW's i3 sales are 70% higher than Tesla's sales
• Tesla sold 600 cars in the U.S. in August compared to BMW i3 sales of 1,025.

SWOT

STP

SWOT

Four Theories of Excellence

STP

Strengths

Four Theories

of Excellence

Threats

• Brand Reputation
• Quality Products
• Environmentally friendly
• Strong social responsibility

• Increasing competition
• Raw material price
• Foreign exchange rates

• Segmentation
• Targeting
• Positioning

• Customer Excellence
• Operational Excellence
• Product Excellence
• Locational Excellence

Weaknesses

Opportunities

Segmentation

Positioning

• High price
• Limited brand portfolio
• High cost structure

"Freude am Fahren - sheer driving pleasure"

• High fuel prices
• Going "green"
• Expansion of portfolio

Locational Excellence

Brand Essence

• WHY: 'unpretentious exclusivity'
• WHAT: equality, continuity, and singularity

Brand Identity

• The experience of driving BMW

Demographic

• Age: 30-50 years old
• Gender: Male & Female
• Stage of Life Cycle: Families with 2-3 children

Behavioral

• High loyalty rates
• New Potential Buyers

Psychographic

• Social Class: Upper Middle Class
• Lifestyle: Succeeder

Benefits

• Status, Comfort & Safety

• BMW has many dealerships in the US to obtain their products:
• 339 BMW passenger car and Sports Activity Vehicle centers
• 139 motorcycle retailers
• 120 MINI passenger car dealers
• 35 Rolls-Royce Motor Car dealers
• Easy to access/operate website
• Social media presence (19 different verified Twitter accounts alone)

Targeting

Product Excellence

• Differentiated targeting strategy

"the market is shifting"

• Luxury brand that people trust, and pay more for because of this
• BMW models have been ranked in the top 10 vehicles in the world by the World Car of Year Awards in 9 of the last 10 years
• In many years, multiple models were recognized
• In 2014, they were awarded the Word Green Car for their i3 model