A Project Report On BMW Super Luxury Cars: BMW-The Ultimate Driving Machine

A Project Report on BMW Super Luxury Cars
BMW- The Ultimate Driving Machine

__________________________________________________ An insight into luxury car brand __________________________________________________
Prepared By: Group 5 1. 2. 3. 4. 5. Srilasya G. (11FN-037) Mudit Gupta (11DM-077) Vikas Marwaha (11FN-115) Soumya Ghosh (11DM-156) Rohit Iyer (11FN-082)
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S.No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Topic Introduction.. Luxury Car Market in India....... BMW in India......................................... Product Lineup... BMW India and Competition Product Mapping...... PESTEL Analysis of BMW . SWOT Analysis of BMW. Porter five forces analysis Segmentation, Targeting and positioning strategy for BMW in India Page No. 3 4 6 7 8 8 12 13 15
10. 11. 12. 13. 14. 15. 16. 17.
Marketing Mix.. BCG Matrix and PLC for BMW 3 Series in India Survey Questions and Responses. Conclusion .. Recommendation. Exhibit 1: BMW 3 Series monthly sales data Exhibit 2: BMW Advertisement- Joy is life. References......
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1. Introduction BMW is an acronym for Bayerische Motoren Werke AG--or, in English, Bavarian Motor Works. Whatever you call it, the German-based company is one of the world's most respected automakers, renowned for crafting luxury cars and SUVs that offer superior levels of driving enjoyment. Founded in Munich, the company began in the early 1910s as an aircraft manufacturer. BMW's current logo, designed to represent white propeller blades against a blue sky, reflects these origins; its blue-and-white color scheme also references Bavaria's blue-and-white checkered flag. It wasn't until 1928 that production began on the first BMW automobile, the Dixi. The car proved tremendously popular, and its success helped the manufacturer weather the Depression. BMW's best-known pre-World War II vehicle was the Type 328 roadster, a supple two-seater that racked up over 120 victories on the motorsport circuit between 1936 and 1940. Postwar BMW cars maintained this tradition, winning several racing, rallying and hill climb victories The early 1950s saw the launch of the BMW 501, a roomy, voluptuous sedan that was resplendent with all of the hopefulness of that era. It was soon followed by the 502 which was powered by the world's first light-alloy V8, foreshadowing BMW's ongoing commitment to developing new technology. The best-selling BMW of that decade was the Isetta, a petite twoseat "microcar" typically powered by a 12- or 13-horsepower engine. The mid-'50s also saw the debut of the limited production and breathtakingly beautiful 507 sports car which had an alloy body and used the 502's V8 for propulsion. In the 1960s, BMW sales strengthened significantly, thanks in part to the immense popularity of the 1500, a sporty family sedan. By the 1970s, BMW was establishing itself as a full-fledged car company. It was a pioneer for many emerging technologies, including turbo charging and advanced vehicle electronics. This was also the period when BMW of North America was established and consumers, who coveted both sports and luxury cars, became loyal "Bimmer" owners. The '70s also saw the birth of BMW's three-tier sport sedan range consisting of the 3 Series, 5 Series and 7 Series cars and the creation of its performance M division. More recently, the company has been expanding its reach worldwide. It opened its first U.S. manufacturing plant in the latter half

of the 1990s and has expanded its brand empire to include Mini and Rolls-Royce. BMW also continues to build motorcycles, something it has done since the 1920s. The automaker's famous advertising slogan describes each of its vehicles as "the ultimate driving machine," and it's not mere hyperbole. Over the past couple of decades, BMWs have become the standard for performance and luxury in most of the "over $30,000" segments. With familyfriendly wagons, crisp sedans, distinctive coupes, nimble sports cars and spacious SUVs offered, BMW's model roster is diverse. But its luxury vehicles all share a common characteristic: the ability to make drivers feel gloriously connected to the road. 2. Luxury Car Market in India A luxury car is a luxuriously styled automobile which is designed to give satisfaction and comfort to its owner. A luxury car typically has carrying capacity of 6 passengers. The luxury cars in the Indian market are very expensive, with price tags that start from 20 lakh. Hence, luxury cars can only be afforded by the people who belong to the high income group and there are a lot of such takers in the Indian automobile market. The recent growth in the luxury car market in India is much more than mere market dynamics in a particular car segment. It is a reflection of the changing lifestyle of the affluent class in the country. In India, the luxury car segment (Average Price 25-30 Lakh) has been growing at an average rate of 20% or above during recent years; it seems to be least affected by the global financial crisis. During worst recession period when world was facing low market demand trends, Indian luxury car segment grew at 23% to 6,671 vehicles according to the Society of Indian Automobile Manufacturers (SIAM) despite a 0.5% decline in passenger car sales, to 11.04 lakh has vehicles (April-December shown growth optimistic 2008 Report). But financial year
ended March 2010 lakh vehicles.
of automotive sector up by 25% to 15.26 sign of recovery of sector. While the
This indicates
Indian auto industry is expected to grow at 17% to 19% on an average, sales of luxury and super-luxury cars are expected to grow exponentially.
Luxury
car
segment accounts only for 3-4% of total car sales in India. But what lures the
international majors is the fact that this segment is growing at 25%-plus (2009 sales), much higher than 15-17% growth registered by the small passenger car segment over the past few years. This growth of luxury car sales is driven majorly by increased wealth-creation within average Indian population and the desire of individuals to join the millionaire-club by flaunting their wealth. 2.1 Luxury car majors in India Mercedes-Benz, BMW and Audi put together have around 85% market share. The German car brand Mercedes-Benz had first-mover advantage as it had started operations in India in 1995 and there was no direct competition in this category. So, it remained Numero Uno luxury car brand in India for more than a decade. But, market dynamics have
changed significantly after the entry of BMW in 2006 followed by Audi in 2007.
The overall market share of
luxury
cars
has
been reorganized
due
to
the
new
entrants. This has resulted in new equations being forged amongst the various players, driven primarily by a rapidly swelling millionaire-club having diversified choices and preferences. In 2006, BMW had 9% market share which has now grown to 42%, catapulting BMW as the number one luxury brand in terms of sales. Audi which started its operations in 2007 has had the fastest growth-rate amongst the three and has now captured 20% of the luxury car market. So, the Indian luxury car market is favorable for new entrants who are capable of grabbing the untapped opportunities by following the customer-oriented approach and having ability to induce demand by innovation at each level of marketing mix.
3. BMW in India BMW entered the Indian car market in the year 2006 with the launch of its first BMW model. The company established a sales subsidiary in Gurgaon in 2006 to develop its dealer network. In 2007, BMW set up its first state of the art manufacturing unit in Chennai. The company's India based manufacturing units cater to the local markets. Currently BMW has a network of 25 dealers across the country and plans to increase it up to 40 by the end of 2012 mostly in Tier II cities. The company imports most of its critical components from its overseas supply base; with only 10 per cent content sourced from the domestic market, which includes seats, leather and door-panels.

4. Product Lineup The BMW lineup consists of highly elegant and exotic cars including the 1 series, 3 series, 5 exotic series and 7 series to be hybrid cars made exclusively to meet the needs of highly executive people and officials from very sound professional backgrounds. These cars are simple yet elegant and have many accessories that make them unique in all terms. In addition to this, there is an ies SUV known as the X3. The M series in BMW is made exclusively in sports related to cars. This product line of BMW is loved by many car lovers for the sporty looks as well as the classi classic engine.
Cars from Bmw in India

BMW 3-Series (Sedan) BMW 5 5-Series (Sedan)
BMW 6Series (Sedan
)
BMW 7-Series (Sedan) Series
BMW (SUV)
BMW 3-Series 320i (Petrol)
BMW 3-Series 320d (Diesel)
BMW 5-Series Series 525i (Petrol)
BMW 5-Series 525d (Diesel)
BMW 6-Series V8 (Petrol)
BMW 7-Series 730Ld (Diesel)
BMW 7-Series 740Li (Petrol)
BMW Series 7-Series 750Li (Petrol)
BMW 7-Series 760Li (Petrol)
BMW X-5 (SUV)
BMW X-5 (Diesel)

5. BMW India and Competition Product Mapping
6. PESTEL Analysis of BMW:
1. Political: Land allocation policies: Land-use conversion is time consuming and becoming complex. It directly affects BMW, which is planning to increase its production capacity of Chennai plant. Taxation: The government may reduce taxes on smaller, fuel-efficient cars while raising them on older, oil-thirsty vehicles. BMW is directly affected because selection of their vehicles have a high performance petrol engine, which means customers will think twice when buying one The consumer protection act: The consumer protection act makes it illegal for BMW to provide cars in a dangerous form. Therefore BMW needs to make sure that all their cars are thoroughly checked and awarded that they are safe before the on set of purchase in a dealer showroom. Local politics: Local politics plays a big role in land and property acquisition.

2. Economical: Inflation: Due to inflation the cost of production increases rapidly due increase in cost of required raw materials, labor etc, thereby increasing price of cars and decreasing its demand. Economic Growth: Due to economic slowdown GDP rate of India is falling and because of which the purchasing power a countrys people is decreasing and they tend to save more money. This can affect sales of BMW. Efficiency of free market: In India the auto sector is open to all, hence it is fiercely competitive. More and more automobile manufacturers are entering the luxury car segment. Luxury car manufacturers like BMW find it difficult to capture and maintain a profitable market share. Quality of infrastructure: Due to the lack of proper infrastructure like roads, petrol pumps, distribution ports and commercial property most car manufacturers have to confine their operations mainly to the urban and metro areas. The above constraints cause problems for expansion plans and also increase distribution cost. Interest Rates: A high rate of interest causes difficulty in raising capital for expansion and growth of business since it is costly to borrow money. This may in turn slow down the growth of the venture. Exchange Rates: The exchange rates of a country affect the demand and feasibility of importing goods and exporting goods
3. Socio-Cultural Factors: Young Consumer: India being one of the youngest countries in the world has significant presence of youth. This offer a big opportunity for BMW. These young people have grown up with internet and are exposed to better living standards. Also, they start making money at an early age. These young people who consider spending more money for performance and quality. Availability of Easy Credit: Presence of car loans has increased the purchasing power of the customers.

Growing Urbanization: Growing urbanization is converting the people from net saver to net spenders. Awareness level: Due to the rise of social media network tools and other mass communication tools awareness level is increasing. Because of these, tools offers and scheme of the BMW can reach the customers very fast. Aspiration: Due to the westernization of Indian culture, consumer behavior is changing. Like now consumers are now more interested in stylish products than they were 10 years ago. Also, it is changing the aspiration value of the customers and offering an opportunity in front of BMW to catch the opportunity. Unemployment: This is one of the most important factors that affect economy adversely. Due to weak global economic conditions, investment banks are recruiting lesser number of people and firing extra staff. Because of this, the demand for luxury cars decreases which further decreases demand for producing such goods, as people tend to save money and cut back on spending. Increase in no. of working women: Because of increase in the work force of women, the characteristic and composition of the potential buyers of BMW is changing.
4. Technological Factors: Supply Chain Management: Over the years supply chain has been strengthened by incorporating technology. It has made possible high participation of the manufacturer and dealers in the market flow of cars. Demand Forecasting: Soft wares are available for demand forecasting, merchandising and seasonality management which if effectively used can change fortunes. Data Mining: There has been a great surge in data mining activities for better understanding of market demand patterns and consumer buying behavior to arm themselves with the best offerings. Customer Support Activities: Better customer support and grievance addressing has been possible due to EDI (Electronic Data Interface), QR (Quick Response) and ECR (Efficient Consumer Response) systems.
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Strategy Building: BMW can incorporate decision making tools at various levels to build the best strategy by collecting and collating data from various sources. Going Online: Effective online activities can be used for building customer relations, advertisement & promotion, customer support and brand building.
5. Environmental Factors: Customer awareness towards environment: Customers are becoming more aware towards environment. By demonstrating concern towards environment, BMW can generate good will. Environmental policies: Environmental policies are becoming more stringent than before. By reducing the carbon emission and designing more efficient cars, BMW can get benefit from government. Global warming: More and more people and getting aware about the issue of global warming. BMW can provide superior and eco friendly design like electric cars, cars using bio fuels to generate goodwill and acceptance.
6. Legal Factors: Custom Duties: Customs duties are levied on import of parts in India. Prolonged Judicial Process: For settling property disputes, it consumes lot of time. Labor Laws: The rigidity in labor laws has led companies to increasingly resort to outsourcing and contracting of labour. Labor strikes are quite frequent now. Since BMW plans to expand its existing capacity, rigid labor laws can adversely affect it.
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7. SWOT Analysis of BMW:
SWOT Analysis-BMW India

Strengths: Weakness
Opportunities
Threads
Product development on core platforms. Keeping its brand intact
Fails to appeal wider range of people due to affordability of car.
Number of millionaries in India are increasing rapidly
Increasing oil prices
BMW in dependently owned
Maintenance cost is very high
Leverage brand Image
Environmental issues
Focus on Being the best
Associated with highly expensive products. Not able to atract vast pool of middle class people in India
Dealer base expansion to teir II cities
Government policies are changing
Extensive Distribution Channel
Growing Market Segment can be exploited with subbrand model
Implemented a Strategy which encompassed supportive marketting program
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8. Porter five forces analysis Porter five forces analysis is done for strategy formulation for BMW.
SubstitutionLuxury Segment. Low Threat
Supplier PowerControl across supply chain Low Threat
CompetitionAudi/ Mercedes High Threat
Buyer Power PowerHigh options, Few purchases Medium Threat
New EntrantsLucrative market High Threat
1. Threat of new competition Luxury car segment is very attractive segment which is growing at high rate even during economic slowdown. By giving higher returns this segment is attracting new firms like Audi. Audi has already acquired 20 % market share within just past two years. Also, the capital and d
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expertise needed to setup an auto or parts manufacturing facility will not be a deterrent for world class auto manufacturer like Audi. Given India's luxury markets incredible growth forecasts, infrastructure progress (especially new and better roads), and ever-expanding financing options to residents, the market is attractive. Thus, the threat of new entrants is high. 2. Threat of substitute products or services India is famous for its two-wheelers (bikes and mopeds) and three-wheelers. These are very real and obvious threats to lower segment auto manufacturers. But for car makers in luxury segment, there will not be significant thread from these products. 3. The bargaining power of buyers/customers Buyers in India have a wide variety of choice. There are more than 20 foreign manufacturers selling in India (including ultra high-end such as Lamborghini). Because of plethora of choices, bargaining power of buyers is increasing. However, since BMW is in the ultra high end segment, the demand in that segment is generally price inelastic. 4. The amount of rivalry among competitors Fierce competition among the major car players can be witnessed in the Indian Car industry. The constant changes in the existing car models with regard to design, innovation, technology, and colors, have led to a fiercely competitive market. Now that technology and innovation are not alien concepts for Indian car makers, Indian cars are becoming increasingly sleek, stylish, and luxurious. Almost all the major luxury car manufacturers are planning to expand in India. 5. The amount of bargaining power suppliers have
BMW imports most of its parts from Germany and manufactures the remaining parts at its Chennai manufacturing plant. Because of this the thread from bargaining power of the suppliers is low for BMW. Apart from it BMW also has an exclusive dealership chain which has helped it to control the entire supply chain effectively. Thus the thread from suppliers is low for BMW.
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9. Segmentation, Targeting and Positioning of BMW in India 9.1 Segmentation strategy for BMW in India: A. Segmentation of car market
Budget Car Segment Over 60 % of the market Preferred price range below Rs. 2.2 lakhs
Compact Car Segment Around 15 % of the market Preferred price range: between Rs. 3 lakhs and Rs. 4.5 lakhs
Family Car Segment Around 10 % of the market Preferred price range: between Rs. 4 lakhs and Rs. 5 lakhs
Premium Car Segment Real world-class car and people who are ready to pay for it Preferred price range: flexible but around Rs. 6 lakhs is acceptable price.
Super Luxury Saloon A tiny segment BMW mainly sells this segment of the market.
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B. Segmentation of Customers
S. No. 1
Base Type
Segmentation Criteria
Explanation
Segments
Geographic
City
Different tier of cities Tier 1, Tier2, Tier3, Metros have different needs,
buying patterns, culture and other differences. For example cities with high income and population density are more suitable for luxury car maker like BMW
Demographic
Age
Different
age
groups
less than 18 years 18 years to 28 years 28 years to 42 years 42 years to 60 years more than 60 years
have requirements from a car. Pattern of usage and criteria of selection is different for different age group Income Purchasing power and Different income levels have different spending capacity. lower cannot cars. People income buy with level luxurious
Earning less than 20 lacs 20 lacs to 50 lacs 50 lacs to 1 crore More than 1 crore
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Occupation Occupation important plays role an Unskilled worker, Skilled in worker, Petty traders, Shop Businessmen,
choosing luxury products owners,
due to time constraints Industrialists, Self employed and timing variations of work. Gender Buying patterns vary a Male,Female lot between male and female. Generally male are more prone to
purchase sports car 3 Psychographic Lifestyle Within the high income Usage oriented, Style
bracket, we can further oriented, Outlook oriented, divide by buying pattern Performance oriented. of customers. use as Some these status
customers luxury cars
symbols, some use them as utility vehicles, and some use them for long distance drives. 4 Behavioral Loyalty Status People with low or None, Medium, Strong,
medium loyalty for other Absolute luxury cars are more prone to switch to BMW.
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9.2 Targeting
S. No.
Base Type
Segmentation Criteria
Segments
Target Segment
1 2
Geographic Demographic
City Age
Tier 1, Tier2, Tier3, Metros less than 18 years 18 years to 28 years 28 years to 42 years 42 years to 60 years more than 60 years Less than 20 lacs 20 lacs to 50 lacs 50 lacs to 1 crore More than 1 crore worker,
Metros, Tier 1 18 years to 28 years 28 years to 42 years 42 years to 60 years
Income Purchasing power
and
20 lacs to 50 lacs 50 lacs to 1 crore More than 1 crore
Occupation
Unskilled
Skilled Businessmen, Self
worker, Petty traders, Shop Industrialists, owners, Businessmen, employed
Industrialists, Self employed Gender 3 Psychographic Lifestyle Male, Female Usage oriented, Male Style Style oriented, Outlook Performance
oriented, Outlook oriented, oriented, Performance oriented. 4 Behavioral Loyalty Status None, for luxury makers other Absolute car Medium, oriented.
Strong, None, Medium
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9.3 Positioning Taglines used by BMW: Ultimate Driving Machine. Product Target Customers Benefits Value Proposition Point Parity of Point of Differentiati Differen ce BMW luxury cars Young/Medium Superior A that provides the best performance , style and quality product Comparable prices Better product Placing Strategy Extensive Distribution, Superior Quality on Strategy
age group male in Quality, high income group High in metros and tier 1 Performa cities performance style lifestyle, with nce, and highly
conscious stylish low
loyalty status for other cars and
white collar jobs.
Positioning Statement: To young working male customers in high income group, who are conscious about style, performance and quality, BMW is the best quality, performance car. With BMW, you can make driving a fun and luxury a way of living. Positioning Diagram for BMW: High Quality
BMW cars
Low Price
High Price
Low Quality
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10. Marketing Mix: Based on the target customer and positioning of the product, marketing mix is decided for the target customers. 10.1 Product:
BMW provides dynamic, sporty, innovative and aesthetic brand to the target customers. The product design ensures the superior performance, features and quality. Main features of BMW cars are:
Features Exterior Features
Special Design Features
Benefits looks, Attractive
Halogen headlights with complex Superior surface lenses Luxury trim: alloy & leather on shifter, wood/woodgrain on doors and wood/woodgrain on dashboard Design
Interior Features
Moonroof Panorama roof Comfort for the Driver,
Cargo Cover Cargo Net Cup Holders Leather-Wrapped Steering Wheel Premium Interior Trim
Superior ambience inside the car
Safety
Brake Assist Child Safety Seat Anchors Driver Air Bag Engine Immobilizer Front Fog Lights Head/Curtain Airbag Internal Emergency Trunk Release
Safety of passenger by design itself, assistance in emergency situation.
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Passenger Air Bag Rear Airbag Stability Control Tire Pressure Monitoring System Sound Entertainment and Compact Disc MP3 Capable Compact Disc Player iPod Connector Seats Leather Seats Best quality seats, comfort Makes driving a fun, provides luxurious environment
while driving Tires and Wheels Alloy Wheels Robust tires, enables driving on rough roads.
These all features are designed for target group
10.2 Price The pricing Strategy for BMW can be understood by determining the price demand sensitivity. The demand for the luxury cars are generally price insensitive. However, the pricing for various models of BMW shows that some models of BMW are price sensitive since they cater upper middle class customers. BMW X1 BMW 3-Series BMW 5-Series BMW X3 BMW X5 BMW Z4 BMW 5-Series GT BMW X6 Rs. 22,61,879 Rs. 24,63,678 Rs. 37,91,967 Rs. 41,39,233 Rs. 55,25,867 Rs. 62,51,563 Rs. 65,66,659 Rs. 69,69,227
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BMW M3 BMW 6-Series BMW 7-Series BMW M5 BMW M6 Rs. 76,41,238 Rs. 81,29,834 Rs. 84,17,438 Rs. 1,00,50,178 Rs. 1,22,34,451
Price - demand elasticity for BMW
For Price Range above 40 lacs, demand is mostly in elastice. Models in this price range: BMW X3/X5/Z4/BMW 5 series GT/ BMW X6/M3/ M5/M6/ BMW series 6/ series 7
Price
For Price Range between 20 lacs to 40 lacs, demand can be elastic. Models in this price range: BMW X1/ BMW 3 series/ 5 series
Demand
Thus from the above curve it is clear that most of the models of BMW lies in the higher price band (above 40 lacs) and they are mostly in the region of demand inelasticity with price. It is because of this, BMW always focuses on quality and performance rather than price. It customers are willing to pay more for superior quality.
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10.2.1 The pricing strategy Premium pricing Most of the luxury car makers follow Premium pricing strategy in which they keep the price of a product high in order to encourage favorable perceptions among buyers, based solely on the price
Competition oriented pricing However within the lower price band segment they follow competition oriented pricing. For example: The Volvo S60 D5 price in India is Rs 37 lakhs, BMW 320D is at Rs 35.7 lakhs and Mercedes C220 CDI price in India is Rs 33.2 lakhs
BMW Financial Services BMW Financial Services India operates as a Non-Banking Finance Company (NBFC) in India to offer solutions for Retail Financing for BMW customers and multi make customers, Financing for Fleet owners and Commercial Financing for BMW Dealerships and multi make dealerships. BMW Financial Services India offers Insurance solutions to its customers through its cooperation partner. BMW Financial Services has been successfully operating in India as a part of BMW India with its three business lines: Retail finance Commercial finance for the BMW India Dealerships Insurance solutions through cooperation partners for BMW customers.
Packages and options for customers BMW also provide add on feature options for customers. This helps the customers to add the features based of his/ her price range.
Pricing strategy for BMW X1 With its aggressive price tag, the BMW X1 (22.4 lacs) will not only target customers from luxury car manufacturers like Mercedes and Audi, but also find buyers in consumers who are looking to upgrade from a Toyota Fortuner or a Hyundai Santa Fe, which are available at lower price tags.
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10.3 Promotion
Advertisement
BMW Studio
The BMW Club of India
BMW Art Cars exhibition
Direct Marketing
Promotion
Association with leading fashion designers
Collaboration with e-bay bayonline promotion
BMW Golf Cup Cupengaging customers/ dealers
Film AdvertisingBMW short films
1. Advertisements: For very many years, BMW branding centered around Drive, and the manufacturer proudly promoted itself as the Ultimate Driving Machine. This tagline became synonymous with BMW, but since 2008 it began to shift its emphasis on to Joy. It provides a behind the scenes look at the making of the famous d
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Joy is BMWcommercial
This commercial doesnt aim to promote individual vehicles, instead it tells potential consumers the story of the whole brand.
The viewer feels as though being part of this community must be a very positive and magical experience as it appears to make everyone involved extremely happy.
The BMW Club of India BMW provides facilities and luxurious lifestyle to its customers by providing facilities like BMW club of India. The BMW Club of India is a not-for-profit organization whose activities are funded primarily through membership fees. The BMW Club is arranges a wide variety of social,
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technical and driving events, including autocross, high-performance driver's education, rallies, club racing and owner education on topics such as mechanical repair, automotive maintenance and collecting vintage vehicles. BMW has already roped in stars like SRK, Gul Panag for promotion of The BMW Club of India
Direct Marketing Strategy BMW is one prominent user of the direct marketing strategy. It has employed this style of advertising to boost its brand position. BMW spends huge some of money on direct marketing which the hope of having a massive impact on future sales.BMW sponsors online podcasts to get its branding across as well as it invests in email marketing. BMW also uses software for Data cleansing to improve the quality of its distribution lists so that the right people with in-date addresses are targeted.
Collaboration with e-bay In May 2011, eBay Advertising and BMW announced a new advertising campaign to support the leading car makers first venture into e-commerce. The campaign employed a variety of different targeting techniques to provide relevant advertising to users and drive sales conversions for BMW, including: Category targeting: High impact brand advertising on the eBay Motors homepage Keyword targeting: eBay shoppers searching for BMW or relevant searches of automotive parts and accessories were served BMW branded adverts to direct them to the BMW store Behavioral targeting: raised the awareness of the BMW store by targeting shoppers who have already visited the Vehicle Parts & Accessories category on eBay and fit the target demographics of BMW car owners Re-targeting: advertisements served to eBay shoppers who had already visited the BMW.co.uk website and re-engage with users who showed an interest in BMW
Film Advertising BMW is one of the prominent users of film advertising where they are combining the ideas of producing a series of short films and using the Internet in an advertising campaign. BMW
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assembles a cast of A-list directors and actors, and develops scripts within the basic framework of having a central character that helps people through difficult circumstances using deft driving skillsin a BMW. Thus, the car becomes the star.
Other Innovative marketing activities BMW Golf Cup International organized golf tournament across ten cities Kolkata, Bangalore, Chennai, Hyderabad, Delhi, Chandigarh, Pune, Mumbai, Ahmedabad and Gurgaon. It invited its customers, prospects and opinion leaders to take part in this tournament and provided the right mix for an exclusive social interaction. Formal dining and wine tasting events at leading BMW dealerships across India. Communication of the rich heritage of BMW Eras through association with leading fashion designers and events such as the India Couture Week. Indulging customers in lifestyle events such as Culinary Workshops and Art Exhibitions at the BMW Studi. The BMW Art Cars exhibition that was held at the Jahangir Art Gallery in Mumbai. Conceptualized the BMW Studio on Janpath as a venue where our customers can indulge with the brand in an exclusive environment.
10.4 Placement
Chennai Manufacturing/Assembling plant
Dealers Across the country
Customers
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BMW India uses exclusive distribution strategy which involves limiting distribution to a single outlet. Since BMW cars are highly priced it requires the dealers to place much detail in its sell. BMW knows that top down approach doesn't really work in such kind of selling. Also, for deciding location within a city, they select an area where the buying potential is present like upcoming areas and established areas. So, based on the perceived demand they set up their dealers. BMW does not have company owned dealerships, but retail partners. BMW focuses more on its core values of manufacturing of premium cars and leave the selling to the retail people who have a local connect.
Dealership in India BMW India is the pioneer in bringing luxurious dealerships to India. BMW India has set a decisive course by setting up BMW dealerships of international standards across the country. BMW India has also set very high standards in service quality and customer care. BMW knows the importance of dealership in sales generation. Thats why they select the dealers based on criteria like: Dealer location ensures that the potential customers get the best of strategic advantages. The ambiance and the customer service should be such that the customer feel welcome at the car dealers place. Build up the reputation and contribute towards the growth of the company's market share. Should act as a catalyst to promote the sales
By end of 2012, BMW India will aggressively expand its dealer network by increasing the number of outlets to 40 across major metropolitan centers and emerging markets in India (from the present 25 outlets). Currently, BMW India is present at 19 cities in the Indian market; New Delhi, Mumbai, Gurgaon, Indore, Chandigarh, Bangalore, Hyderabad, Chennai, Pune, Kolkata, Bhumneshwar, Ahmadabad, Surat, Kochi, Coimbatore, Jaipur, Raipur, Goa, Ludhiana.
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11. BCG Matrix and PLC for BMW 3 Series in India To plot the PLC for BMW 3 series, monthly sales of BMW 3 series were used.
BMW 3 Series Monthly Sales

350 300 Number of units sold 250 200 150 100 50 0 Feb-07 May-07 Aug-07 Nov-07 Feb-08 May-08 Aug-08 Nov-08 Feb-09 May-09 Aug-09 Nov-09 Feb-10 May-10 Aug-10 Nov-10 Feb-11 May-11 Aug-11 Nov-11 Series1
From the above curve it can be observed the BMW 3 series is more or less entering the maturity phase from the growth phase. Based on PLC we can plot the BCG matrix for BMW 3 Series. Relative Market Share
High
Stars
Question Mark
Market Growth Rate BMW 3 Series Cash Cows Low High Low Dogs
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12. Survey Questions and Responses A total of 8 questions 4 personal details questions 4 questions on Buying Preferences Sample Size: 44 Surveying method: Online Form Filling Surveying Period: First Entry 10th Jan12 22:00hrs Last Entry 14th Jan12 23:55hrs
About the surveyed:
Gender
Monthly Income
Female 43%
Male 57%
less than 20 lacs 9%
more than 1 crore 39%
20 lacs to 50 lacs 20%
50 lacs to 1 crore 32%
Which Region you belong to?
Age Group you belong to?
West 34% North 50% South 16%
More than 60 23% 42-60 18%
18-28 23%
28-42 36%
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About their buying preferences:
Rate of the following attributes that (might have)enticed you to try the BMW (initially)?
Compared to other cars that are available, would you say that BMW is:
Customer care 11% Performance 18%
Good Looks 27%
About the same 14% Much better 38%
Best Quality 20%
Driving experience 24%

Somewhat worse 7%
Somewhat better 41%
What concerns you the most when buying a car?
Are Cars Still Status Symbols?
Speed 22%
Brand 25%
No 32%
Safety 20% Warranty 16%
Price 17%
Yes 68%
Analysis of Survey Results Key points from the survey about the customers: Majority of Indian Customers still believe cars as a status symbol.\ While purchasing a luxury car, people are more concerned with brands, speed and safety rather than price and warranty.
Majority of the users of BMW are satisfied from its performance and consider it superior from other brands.
Before purchasing new car like BMW, majority of people are concerned with good looks and driving experience.
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13. Conclusion BMW has clearly established strong brand identity and equity, and the series 3 has become a leader in the mid level luxury performance segment. BMW is associated with premium performance, high class luxury and unquestionable quality. BMW has now established itself in the Indian market and it has now ample opportunities to build on its strong brand equity. Indian luxury car segment is poised to grow at a high rate and BMW is in a good position to leverage that; however in order to tap that market, BMW shouldnt dilute its brand. 14. Recommendation BMW should continue to build on its strong brand as well as prestige of series model. The company should continue to produce clever advertisement and place the advertisements across all mediums, especially on the internet. BMW should invest in fuel efficient technologies for their performance lines. Although their cars are very stylish, there are many cars performing better than them in terms of fuel efficiency. Company should leverage advanced IT tools and technologies in the field of product promotion, new product development and distribution network. BMW should try to capture female customer base as the number of working women in India is rising rapidly. Company should maintain its strong brand and shouldnt dilute its brand by selling sub standard brands at lower prices. BMWs accessories and parts of cars are expensive for maintenance, which can reduce the desire of people purchasing its cars. Therefore they should try to increase the availability of its parts at lower prices.
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15. Exhibit 1: BMW 3 Series monthly sales data Number of units sold Month 12 Oct-08 Nov33 08 Dec76 08 88 80 28 62 93 75 109 87 56 57 Jan-09 Feb09 Mar09 Apr09 May09 Jun09 Jul-09 Aug09 Sep-09 Number of units sold Month Jun76 10 52 79 99 102 Jul-10 Aug10 Sep-10 Number of units sold 188 196 229 187 198 193 204 164 176 305 240 195 163 126 203 236 298 243 289
Month Feb07 Mar07 Apr07 May07 Jun07 Jul-07 Aug07 Sep-07 Oct-07 Nov07 Dec07 Jan-08 Feb08 Mar08 Apr08 May08 Jun08 Jul-08 Aug08 Sep-08
Oct-10 Nov116 10 Dec109 10 44 64 77 96 88 116 156 189 Jan-11 Feb11 Mar11 Apr11 May11 Jun11 Jul-11 Aug11
Oct-09 Nov90 09 Dec72 09 80 86 101 114 98 Jan-10 Feb10 Mar10 Apr10 May10
192 Sep-11 234 Oct-11 Nov298 11 Dec176 11 165
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16. Exhibit 2: BMW Advertisement- Joy is life
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17. References http://www.bmweducation.co.uk/coFacts/view.asp?docID=61 Hespos, T. (2002) BMW Films: The Ultimate Marketing Scheme, retrieved October 3, 2005, from http://www.imediaconnection.com/content/546.asp Giardina, C. and Lehane, S. (2002) "The Driver Returns," retrieved October 3, 2005, from http://www.dtvprofessional.com/2002/12_dec/features/bmw_returns.htm Films," retrieved October 3, (2002) "BMW from
2005,
http://www.pmalink.org/awards/reggie/2002reggiewinners3.asp www.bmweducation.co.uk/company history www.bmw.co.uk/models www.bmw.co.uk/prices www.bmweducation.co.uk/companyfacts.shtm www.bmweducation.co.uk/statistics \ Kotler, P. and Armstrong, G., (1989) Principles of Marketing, Prentice-Hall International Edition. David Jobber, Principles and Practice of Marketing 5th Edition www.just-auto.com http://www.supercarworld.com/cgi-bin/overview.cgi?BMW
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A Project Report On BMW Super Luxury Cars: BMW-The Ultimate Driving Machine

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