BMW Pro

Marketing Activities Of BMW
INTRODUCTION
The BMW Group is a manufacturer of luxury automobiles and motorcycles. It has 24 production facilities spread over thirteen countries and the companys products are sold in more than 140 countries. BMW Group owns three brands namely BMW, MINI and RollsRoyce. This project contains detailed information about the marketing and promotional activities of BMW. It contains the history of BMW, its evolution after the world war and its growth as one of the leading automobile brands. This project also contains the information about the growth of BMW as a brand in India and its awards and recognitions that it received in India and how it became the market leader. This project also contains the launch of the mini cooper showroom in India and also the information about the establishment of the first Aston martin showroom in India, both owned by infinity cars. It contains information about infinity cars as a BMW dealership and the success stories of the owners. Apart from this, information about the major events and activities are also mentioned in the project, the 3 series launch which was a major event has also been covered in the project. The two project reports that I had prepared for the company are also a part of this project, The referral program project which is an innovative marketing technique to get more customers is a part of this project and the other project report is about the competitor analysis which contains the marketing and promotional activities of the competitors of BMW like Audi, Mercedes and JLR About BMW BMW (Bavarian Motor Works) is a German automobile, motorcycle and engine manufacturing company founded in 1917. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces the Mini marquee, and is the parent company of RollsRoyce Motor Cars. BMW produces motorcycles under BMW Motorad and Husqvarna brands. In 2010, the BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands. The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. With this in mind, a wideranging product and market offensive was initiated in 2001, which has resulted in the BMW
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Group expanding its product range considerably and strengthening its worldwide market position. The companys brand is extremely strong and is associated with high performance, engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the best in the world, and the company continues to launch a stream of innovative products as part of its battle with German peer Mercedes to be the worlds largest luxury car maker. BMWs focus on engineering excellence allied to leading-edge design continues to drive successful, profitable expansion. In 2007 BMW sales increased by 8%, Mini by 18% and Rolls-Royce by 26% with, for the first time ever, over 1000 of the super luxury cars being produced in one year. To further this growth, a host of new models is being launched, including the Mini Clubman and the new sport utility vehicle, the BMW X6 - the worlds first SUV coupe. While the Clubman reinvents views on vehicle access, the X6 is an excellent example of BMW innovation at work. It combines the safety and convenience of a four-wheel-drive with the on-road performance of a sports car and is designed to appeal to the driver who enjoys a commanding driving position, but also savours the characteristics of a sports car. With its stretched coup silhouette and pronounced performance design, underpinned by hybrid engine options, as previously achieved with the X5 and the X3 in allied markets, the X6 is the latest instance of BMW changing perceptions of what a car should provide for its passengers and its driver alike. At its heart, it restates an aspiration for driving that is both exclusive and yet also available to the mass market.
BMW has also been at the forefront of introducing new IT options to enhance the driving experience. Starting with the iDrive first introduced in the 7-series, BMW Connected Drive is now available across most models and is adding greater functionality. After being one of the first to offer the capability for MP3 connectivity and incorporate RSS feeds including weather information, in 2007 BMW teamed up with Google to offer a PC driven route planning service. Of course this level of innovation does not come cheaply and a key challenge going forward will be to keep research and development costs under control. During the last five years, BMWs average annual R&D investment has been around 2,300 per car, compared with 1,700 spent by arch-rival Mercedes. Alongside the examples above, much of the money has gone into the car maker's Efficient Dynamics programme aimed at making engines more efficient, improving aerodynamics, reducing weight and capturing energy during braking. As the numbers clearly show, BMW is a mass market player but one
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that successfully uses focused innovation to build and maintain the aspirational driving experience for many. Through a constant stream of consumer informed innovations, the company has moved ahead of its peers and future sustained and profitable growth is widely predicted. in the BMW's future strategy, it strongly focus on expand of the potential market. For example, China and Russia. In terms of brand promotion, BMW Group, will seize the opportunity, and vigorously advise and expand public awareness network. At the same time, BMW also advertise their ambitions and sense of responsibility to society. In the automotive manufacturing area, BMW Group proposed to advertise new product concepts and environmental protection. BMW believes that with further development of the industrial era, the traditional energy sources will become a bottleneck restricting the development of society, as with the development of traditional energy sources will gradually disappear. All of these above are only general publicity, from the details; BMW also has many methods of influence to advertise the brand promotion. In the past, BMW through the sponsorship of 007 series of films to lead more people know about BMW. Nowadays, Now, BMW further into the ranks of social charity and welfare to go. I believe that in the future, more new ways to promote the brand BMW will also be generated in the process. From BMWs advertising trends, while BMW focus on its own personality and the brand image. BMW also changed their advertising strategies, slowly trying to go into the market culture. For example, in China, BMW will be promoting the brand through the action to protect the local cultural heritage. In short, any successful brand or product can not be divorced from the success of advertising and publicity.
RESEARCH METHODOLOGY
This research explores how BMW has managed to maintain its strong hold in the Indian market and its innovative marketing activities done to maintain a healthy relationship with its customers and create new prospects through referral marketing. An in depth look at the marketing activities of the competitors of BMW has also been done in order to know the market position of BMW. Objectives of the study To know the market share of BMW in India To reach the potential customers of BMW cars i.e. prospecting To find out the marketing strategies of the competitors. To create more customers through referral marketing. To know how BMW can retain its strong position in the luxury car market
Scope of the study The scope of the study includes all the competitors of BMW like Audi, Mercedes and JLR (Jaguar Land Rover). The study was conducted by observing the various marketing and promotional activities of the competitors. The study focuses only on awareness of BMW among upper class of the society. The study also focuses on the power of referral marketing and how customer reference can gather more customers and make a great difference to business.
HISTORY AND GROWTH OF BMW
To better understand BMW today you have to know and understand BMW history. The last century gives the flavour of todaysBMW cars, the ingredient that makes them so special. This special can be almost seen as the soul of a person. BMW cars have an unmistakably personality and an obsessive care about the feeling of driving, thus their slogan "the ultimate driving machine". This creates a bond between the car and the driver that may last for a lifetime. These three magic letters stand for BayerischeMotorenWerke, or in English, Bavarian Motor Works. The "Motor" is the core of this acronym and is the foundation; the key part around which BMW builds every product. BMW AG originated with three other manufacturing companies, Rapp Motorenwerke and BayerischeFlugzeugwerke (BFW) in Bavaria, and Fahrzeugfabrik Eisenach in Thuringia. Aircraft engine manufacturer Rapp Motorenwerke became BayerischeMotorenwerke in 1916. The engine manufacturer, which built proprietary industrial engines after World War I, was then bought by the owner of BFw who then merged BFw into BMW and moved the engine works onto BFW's premises. BFW's motorcycle sideline was improved upon by BMW and became an integral part of their business. BMW became an automobile manufacturer in 1929 when it purchased Fahrzeugfabrik Eisenach, which, at the time, built Austin Sevens under licence under the Dixi marque. BMW's team of engineers progressively developed their cars from small Seven-based cars into six-cylinder luxury cars and, in 1936, began production of the BMW 328 sports car. Aircraft engines, motorcycles, and automobiles would be BMW's main products until World War II. During the war, against the wishes of its director Franz Josef Popp, BMW
concentrated on aircraft engine production, with motorcycles as a side line and automobile manufacture stopped altogether. After the war, BMW survived by making pots, pans, and bicycles until 1948, when it restarted motorcycle production. Meanwhile, BMW's factory in Eisenach fell in the Soviet occupation zone and the Soviets restarted production of pre-war BMW motorcycles and automobiles there. This continued until 1955, after which they concentrated on cars based on pre-war DKW designs. BMW began building cars in Bavaria in 1952 with the BMW 501 luxury saloon. Sales of their luxury saloons were too small to be profitable, so BMW supplemented this with building Isettas under licence. Slow sales of luxury cars and small profit margins from microcars caused the BMW board to consider selling the operation to Daimler-Benz. However, Herbert Quandt was convinced to purchase a controlling interest in BMW and to invest in its future. Quandt's investment, along with profits from the BMW 700, brought about the BMW New Class and BMW New Six. These new products, along with the absorption of Hans Glas GmbH, gave BMW a sure footing on which to expand. BMW grew in strength, eventually acquiring the Rover Group (most of which was later divested), and the license to build automobiles under the Rolls-Royce marque. In 1910, Otto received German aviation license no. 34 and, in the same year, set up a training school and an aircraft factory, The factory, which was named Otto-Flugzeugwerke in 1913, was located on LerchenauerStrasse, east of the Oberwiesenfeld troop maneuver area in the Milbertshofen district of Munich. Otto concentrated on building Farman inspired pushers (he had got his own license on an Aviatik-Farman), and soon became the main supplier for the BayerischeFliegertruppen (Royal Bavarian Flying Corps). Neither the Otto-Werke nor his AGO Werke companies, which from 1914 developed different aircraft, was successful in getting orders from the Prussian military due to unexplained quality issues. The military urged Otto to revise his production line, but the issues were never resolved. Suffering financially, the Otto company was purchased by a consortium, which included MAN AG as well as some banks, in February 1916. One month later, on this companys premises, the investors established a new business, BayerischeFlugzeugwerke AG. AGO closed down in 1918, and its facilities were taken over by AEG. In 1913 Karl Rapp established Rapp Motorenwerke near the Oberwiesenfeld.[1] Rapp had chosen the site because it was close to Gustav Otto Flugmaschinenfabrik, with whom he had contracts to supply his four-cylinder aircraft engines.[1]
Rapp was sub-contracted by Austro-Daimler to manufacture their V12 aircraft engines. Austro-Daimler at the time was unable to meet its own demands to build V12 Aero engines. The officer supervising aero-engine building at Austro-Daimler on behalf of the Austrian government was Franz Josef Popp. When it was decided to produce Austro-Daimler engines at Rapp Motorenwerke, Popp was delegated to Munich from Vienna to supervise engine quality. However, Popp did not restrict himself to the role of observer, but became actively involved in the overall management of the company. On 7 March 1916, Rapp Motorenwerke became BayerischeMotorenWerke GmbH. Popp was also the person who convinced Karl Rapp to accept the application of Max Friz, a young aircraft engine designer and engineer at Daimler. At first Rapp was going to turn down Frizs request; however, Popp successfully intervened on Frizs behalf, because he recognized that Rapp Motorenwerke lacked an able designer. In the space of a few weeks he designed a new aircraft engine which, with an innovative carburettor and a variety of other technical details, was superior to any other German aeroengine. Later, this engine would gain world renown under the designation BMW IIIa. The recognition that Max Friz gained with his engine made it clear to all the senior managers that up to now Karl Rapp and his inadequate engine designs had held the company back from success. In Friz they now had an excellent chief designer on hand and were no longer dependent on Rapp. In February 1916, the south German engineering company MAN AG and several banks purchased the aircraft builder Gustav Otto Flugmaschinenfabrik. On this companys premises the investors established a new business, BayerischeFlugzeugwerke AG (BFW). There was no time for development work, so BFW manufactured aircraft under license from the AlbatrosFlugzeugwerke of Berlin. This meant that within a month of being set up, the company was able to supply aircraft to the war ministries of Prussia and Bavaria. However, major quality problems were encountered at the start. The German air crews frequently complained about the serious defects that appeared in the first machines from BFW. The same thing had happened with the aircraft from the predecessor company run by Gustav Otto. The reason for these deficiencies was a lack of precision in production. The majority of the workforce had been taken over by BFW from Otto Flugzeugwerke. It was only organizational changes and more intensive supervision of the assembly line that succeeded in resolving these problems by the end of 1916. This done, BFW was able, in the months that followed, to turn out over 100 aircraft per month with a workforce of around 3,000, and rose to become the largest aircraft manufacturer in Bavaria
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The end of the war hit BFW hard, since military demand for aircraft collapsed. The companys management were thus forced to look for new products with which to maintain their position in the market. Since World War I aircraft were largely built from wood to keep their weight down, BFW was equipped with the very latest joinery plant. What is more, the company still held stocks of materials sufficient for about 200 aircraft, and worth 4.7 million reichsmarks. It therefore seemed a good idea to use both the machinery and the materials for the production of furniture and fitted kitchens. In addition, from 1921 onwards, the company manufactured motorcycles of its own design under the names of Flink and Helios. In the autumn of 1921 the Austrian financier CamilloCastiglioni first announced his interest in purchasing BFW. While most of the shareholders accepted his offer, MAN AG initially held on to its shareholding in BFW. But Castiglioni wanted to acquire all the shares. He was supported in this by BMWs Managing Director Franz Josef Popp who, in a letter to the chairman of MAN, described BFW as a dead factory, which possesses no plant worth mentioning, and consists very largely of dilapidated and unsuitable wooden sheds situated in a town that is extremely unfavorable for industrial activities and whose status continues to give little cause for enthusiasm. Apparently Popp was still in close contact with Castiglioni and was perhaps even privy to the latters plans for merging BMW with BFW. It was probably in the spring of 1922 that Castiglioni and Popp persuaded MAN to give up its shares in BFW, so that now the company belonged exclusively to Castiglioni. Then in May of the same year, when the Italian-born investor was able to acquire BMWs engine business from Knorr-Bremse, nothing more stood in the way of a merger between the aircraft company BFW and the engine builders BMW. The name BayerischeFlugzeugwerke AG was revived in 1926 when Udet-Flugzeugbau GmbH was changed into a joint-stock company. In the early stages, BMW AG held a stake in this company and was represented by Popp, who held a place on the Supervisory Board. In time this company was renamed to Messerschmitt, an important and leading aircraft company for the Third Reich. The departure of Karl Rapp enabled a fundamental restructuring of BMW GmbH, formerly Rapp Motorenwerke. While the development side was placed under Max Friz, Franz Josef Popp took over the post of Managing Director. Popp held this key position until his retirement in 1942, and was instrumental in shaping the future of BMW.
The name-change to BayerischeMotorenWerke compelled management to devise a new logo for the company, therefore the famous BMW trademark is designed and patented at this time. However, they remained true to the imagery of the previous Rapp Motorenwerke emblem (which was designed by Karl's brother, Ottmar Rapp). Thus, both the old and the new logo were built up in the same way: the company name was placed in a black circle, which was once again given a pictorial form by placing a symbol within it. By analogy with this, the blue and white panels of the Bavarian national flag were placed at the center of the BMW logo. Not until the late 1920s was the logo lent a new interpretation as representing a rotating propeller. The BMW Trademark, called a "roundel", was submitted for registration on the rolls of the Imperial Patent Office, and registered there with no. 221388 on 10 Dec 1917. For the small BMW business, the large orders received from the Reichswehr for the BMW IIIa engine were overwhelming. Under Karl Rapp only a small number of engines had been produced and the manufacturing facilities were not in any way adequate to handle the mass production now required. Not only did BMW lack suitable machine tools but, to a very large degree, skilled manpower as well. However, the most serious drawback was in the small and aging workshops. Nevertheless, under the state-controlled war economy, officials in the relevant ministries were able to give BMW extensive practical support. So in a short time BMW got the skilled workers and machinery it needed. In addition, the Munich company received a high level of financial assistance, which enabled it to build a completely new factory from the ground up, in the immediate vicinity of the old workshops. Due to the share capital being too small, both the building of the new plant and the working capital needed for materials and wages had to be financed with external funds, i.e. bank loans or state assistance. The war ministries of Bavaria and Prussia (then both separate kingdoms within the Kaisers Empire) did not, however, wish to go on supporting BMW with loans and guarantees, and therefore urged the flotation of a public limited company. In 1917 Julius Auspitzers son-in-law, Max Wiedmann, held about 80 percent of the shares in Rapp Motorenwerke. He had obtained most of these shares from his father-in- law in 1914 and had thus become a figure of great influence in the business. Even after the name-change
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to BayerischeMotorenWerke GmbH, Wiedmann remained the principal shareholder in the company. Wiedmanns capitulation in July 1918 opened the way for the founding of a public limited company. On 13 August 1918 BMW AG was entered as a new company in the Commercial Register and took over from BMW GmbH all its manufacturing assets, order book and workforce. The old BMW GmbH was renamed
"MaschinenwerkeSchleiheimerstrasse" and was wound up on 12 November 1918. The share capital of BMW AG amounting to 12 million reichsmarks was subscribed by three groups of investors. One third of the shares was taken up in equal parts by the Bayerische Bank and the Norddeutsche Bank. A further third of the shares (worth 4 million reichsmarks) was acquired by the Nuremberg industrialist, Fritz Neumeyer. This ensured that 50 percent of the capital (6 million reichsmarks) was in the hands of Bavarian businesses or banks. The Bavarian government placed the highest value on this strong local shareholding. The final one-third of the BMW shares were taken up by a Viennese financier, CamilloCastiglioni. During the war, Castiglioni had been one of the principal players in the Austro-Hungarian aircraft industry, and for a long time had had links with Rapp Motorenwerke. So he had probably already been influential in negotiating the major order from Austro-Daimler Motoren to Rapp Motorenwerke in 1916 and would have received a large commission on this. However, Castiglionis interests were not restricted to Austria. As early as 1915, by merging a number of companies, he had founded BrandenburgischeFlugzeugwerke in the Berlin area, which supplied aircraft to the German navy. It seemed only logical that he would want to extend his network of companies by adding a German aero-engine manufacturer. The end of the war in November 1918 had a huge impact on the entire German aircraft industry. Since 1914 the military had been placing lucrative orders with aircraft and aeroengine firms. But now, military demand collapsed completely. However, civil aviation was still in its infancy, and no substitute business could be expected from that quarter. The end of the war hit BMW particularly hard, since the BMW IIIa aero-engine was the only product the company was building in 1918. And suddenly there was no more demand for aircraft engines. In the years from 1914 to 1918 the German economy had been placed on a war footing. In order to enable companies to resume civil production as rapidly as possible, a central demobilization office was set up as soon as the war was over, and branches opened right across Germany. The Commissioner for Demobilization with responsibility for Bavaria ordered the closure of BMWs Munich plant with effect from 6 December 1918. The employees of the fledgling company faced locked factory gates and a future that was far from certain. The reason given by the civil servants for this factory closure was the general
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shortage of raw materials such as coal and metals. The small supplies of coal that were still on hand had to be made available for the freezing population, and such supplies of metals as remained were diverted to consumer industries. As a former armaments manufacturer, BMW was sent away empty-handed. BMWs top management was not discouraged by the compulsory closure decreed by the government. When permission was given for the gates to re-open on 1 February 1919, Managing Director Franz Josef Popp got the design department working constantly in order to have new products ready to sell to the peacetime market. Engines were designed for boats, cars, trucks and motorcycles. From the outset, BMW tried to remain an engine manufacturer. At the same time it also supplied industrial customers with products from its aluminum foundry. In 1919 BMW was forced to give up building aircraft engines completely, which it had initially continued on a modest scale. The Allies had banned Germany from building aircraft and aircraft engines, and in addition had demanded that all aviation assets manufactured up to that date should be handed over or destroyed. While the new BMW products for civilian use were technically advanced, they could not provide the company with any long-term security in a highly competitive market. The top management therefore began looking for alternatives. On 18 June 1919, BMW obtained a license agreement for the production of brake assemblies with the Berlin-based company Knorr-Bremse AG. The contract was to run for ten years and was intended to provide BMW with employment and profits until 1930. At that time, KnorrBremse manufactured state-of-the-art pneumatic brakes for trains and had the benefit of large, long-term contracts, which it could not, however, handle at its own factory. For this reason the Berlin company was looking for a manufacturer to license and found it in Munich. One advantage BMW had in negotiating the contract was the announcement by the Bavarian government that they would be prepared to fit Bavarian trains with Knorr brakes provided they were manufactured in Bavaria. From the summer of 1919 onward, the manufacture of pneumatic brakes increasingly overshadowed engine production. The brake business occupied the majority of the BMW workforce, which was once again being expanded. This reorientation of the BMW product range had an effect on the ownership structure. As soon as the war ended, most of the BMW shareholders had lost interest in the company. Only the major shareholder CamilloCastiglioni still believed at first that BMW had a future, and took up all the company shares himself. However, Castiglioni was not an entrepreneur who took the long view; he was an astute financier in search of a quick return. The manufacture of railway brakes provided an
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opportunity to build up a solid business with sure profits, albeit small ones too small for Castiglioni. In August 1920, when the chairman of Knorr-Bremse AG, Johannes Vielmetter, offered to buy all of Castiglioni's shares in BMW, the Viennese speculator accepted. BMW was now wholly owned by the Knorr-Bremse company of Berlin. The new proprietors made only minor alterations to the structure of BMW, since they wished neither to change the management nor to get involved in the production process Under the leadership of Knorr-Bremse, BMWs growth was considerable. Between the end of 1918 and 1921 the workforce grew from 800 to 1,800. In addition, the company set up its own training program with classes at the factory. In this way, in 1921 alone, BMW was able to offer solid technical training to some 200 young people. However, the price for this comfortable commercial situation was dependence on Knorr-Bremse and the abandonment of its core business of building aircraft engines. In 1922, CamilloCastiglioni, offered to buy BMW's engine-building division, aluminum foundry, name, and trademark from Knorr-Bremse. Castiglioni declared that he intended to set up an engine manufacturing plant of his own, and so he asked for the drawings, patents and machine tools needed for manufacturing the engines. He also wanted to take with him to his new company several key figures such as the chief designer, Max Friz, and the chief executive, Franz Josef Popp. The remainder of the company, including the premises, would remain under Knorr-Bremse's ownership and would be renamed. His offer of 75 million reichsmarks was accepted by Knorr-Bremse and, upon the contract being signed on 20 May 1922, the BMW engine-building business was once again in Castiglionis hands, while the remainder of the company became a subsidiary of Knorr-Bremse and was renamed Sdbremse AG. Castiglioni did not purchase BMW's premises in its transaction with Knorr-Bremse. Instead, he merged his BayerischeFlugzeugwerke (BFw) into BMW and established BMW's factory and headquarters at BFw's premises. BMW was moved into the same buildings of Gustav Otto's former Otto-Flugzeugwerke on LerchenauerStrasse 76. BMW's headquarters have been at that address ever since. BMW, with some 200 workers housed in the former BFw's old wooden sheds, began production on a modest scale. Initially its output was BFw motorcycles, proprietary engines, and spare parts for aircraft engines. To begin with, business for the new BMW AG did not go particularly well. The market for proprietary engines was still as hotly contested in 1921
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as it had been in 1919 when BMW had gone into brake manufacture as a way of securing its long-term future. In light of these circumstances, the purchase of BMW by a skilled and experienced financier like Castiglioni appears incomprehensible. However, in acquiring the BMW engine-building business, Castiglioni was not envisaging production in Germany at all; he had already secured a different deal. Czechoslovakia was looking for suitable engines to equip its air force and was thinking, among others, of BMW products. Castiglioni had heard of the Czechoslovak militarys interest and had perhaps even encouraged it, as he was now in a position to offer BMW aircraft engines to the Czechoslovaks. Shortly after taking over BMW, Castiglioni concluded an agreement with the Czechoslovak government for the BMW IIIa and BMW IV models to be manufactured under license by Walter Company of Prague (not to be confused with Walter Kommanditgesellschaft, Kiel). The substantial profits from this contract, which ran until the early 1930s, went solely into Castiglionis pocket; BMW made nothing at all out of it. The aircraft engine business with Russia secured BMW's success in the 1920s. Meanwhile the competition, Junkers in particular, were confounded as to how BMW was managing to pay out such huge dividends. They conjectured that BMW was the victim of stock market speculation and would soon face bankruptcy. Others made allegations that the Munich company was receiving millions of marks in government subsidies. But all these conjectures were wide of the mark. BMW had merely succeeded in securing Eastern Europe's biggest customer early on: the air force of the Red Army. However, while BMW benefited from these business deals with Russia, sole shareholder Castiglioni benefited even more. As an alleged brokerage fee, ten percent of the gross price of each aircraft engine delivered to Russia was paid, through shadow companies, to Castiglioni. In 1926, the financier from Vienna had to transfer over his majority shareholding to Deutsche Bank to resolve financial difficulties, but he continued as a major shareholder of BMW. The commission payments to Castiglioni's companies continued until 1928, when an informer tipped off Deutsche Bank about Castiglioni's unusual accounting methods. The bank had his accounts investigated retrospectively. To avoid a court case, Castiglioni paid BMW one million reichsmarks. As a result of these disturbing revelations, he was no longer tenable to hold a position as a member of the Supervisory Board. When he ran into financial difficulty once again, Deutsche Bank managed to buy the remaining BMW shares from him. The Castiglioni era came to an end in 1929.
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The Russian commercial agency in Berlin became aware of the commission payments and felt ten percent too much had been paid for years. Arbitration proceedings led to an agreement that BMW would agree to give the Russians the license for the BMW VI aircraft engine free of charge. In the aftermath, BMW tried desperately to win new contracts from the Soviets, but failed to do so. BMW's Russian deal ended in 1931. 1923 the year of decisions In 1922 BMW had once again become independent, and owed this position to its new major shareholder, Castiglioni. However, Castiglioni was only interested in making a "quick buck", which he did through the license agreement with Czechoslovakia, his "commission payments" from Russia, and various other deals. The long-term future of BMW was secured by the efforts of its employees and senior management at that time. In particular, the commitment to BMW of chief executive Franz Josef Popp and chief designer Max Friz established the company as a permanent international player in the building of aircraft engines and motorcycles. In this respect, 1923 was a year of great significance, and it can justifiably be called a decisive year for BMW. While Germany was forced to live through a year of runaway inflation and numerous attempted coups, the Munich company made a successful new start for it was in 1923 that BMW resumed production of aviation engines. A crucial factor in this was the interest shown by the Soviet Union in BMW aircraft engines and the solid prospect of large orders. In the years that followed, the Soviet Union was to become BMWs most important customer. In addition to this, on 28 September 1923, BMW launched the first motorcycle of its own design, the R32. The R32 was the first in a series of products that would prove successful and profitable over the following years. R32 motorcycle At the German Motor Show in Berlin (September 28 October 7, 1923) BMW exhibited the R32 to the public for the first time. The first motorcycle from BMW convinced the experts immediately, and was an instantly popular product with consumers. A comment in the magazine DER MOTORWAGEN read: "And finally, the culmination of the exhibition, the new BMW motorcycle (494 cc) with the cylinders arranged transversely. Despite its youth it is a remarkably fast and successful motorcycle." In 1924 BMW built its first model motorcycle, the R32. This had a 500 cc air-cooled horizontally opposed engine, a feature that would resonate among their various models for decades to come, albeit with displacement increases and newer technology. The major
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innovation was the use of a driveshaft instead of a chain to drive the rear wheel. To this day the driveshaft and boxer engine are still used on BMW motorcycles. Austin-licensed BMW Dixi BMWs automobile history had begun much earlier than 1924, if only in the form of proposals and prototypes. Correspondence dating back to 1918 shows the first use of the term automobile in BMW history. But no details, let alone images have come down to us regarding this fourwheeled primogenitor. Subsequently, BMW manufactured various built-in motors with four and two cylinders that powered a wide variety of agricultural vehicles in the early 1920s. The spectrum of machinery driven across the land by BMW units ranged from single-track cars to huge farm tractors. Around 1925 two specially hired BMW designers, Max Friz and GotthilfDrrwchter, both former employees of Daimler-Benz in Stuttgart, were commissioned by BMWs Managing Director Franz Josef Popp to design a BMW production car. From this first, demonstrably operational BMW car though as yet lacking any bodywork, BMW laid the groundwork for one of the world's most respected manufacturer of automobiles. Success for BMW in this industry came from an already proven source-the Seven. In 1927 the tiny Dixi, an Austin Seven produced under license, began production in Eisenach. BMW bought the Dixi Company the following year, and this became the company's first car, the BMW 3/15. BMW designs its own cars Towards the end of 1930, BMW attempted to introduce a new front axle with independent wheel suspension for both their models, the BMW 'Dixi' 3/15 DA4 and BMW 'Wartburg' DA3, but this resulted in accidents with the prototypes because of construction faults. However, as the license with Austin would end in 1932, BMW decided upon the development of a completely new model and called in the help of German engineer Josef Ganz. He was hired as a consultant engineer at BMW in July 1931. At first, Josef Ganz negotiated with BMW about possible manufacture of his innovative rear-enginedMaikfer prototype at BMW. However, BMW decided for a different model, more along the lines of the previous Dixi model. Therefore, with the assistance of Ganz, work started on the development of the BMW AM1 (AutomobilkonstruktionMnchen 1), a small car with a front-mounted engine, rear-wheel drive, and independent wheel suspension with swing-axles. World War II The German invasion of Poland and commencement of hostilities meant that manufacturing facilities in Germany were directed by the Nazi regime to re-focus on the manufacture of
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products required to support the war effort. For BMW, that meant an emphasis on production of aero (airplane) engines. Josef Popp argued against this, contending that, although financially lucrative, the change in focus would mean that the BMW AG would be heavily dependent on decisions made by the Nazi regime. In June 1940, he wrote to the Chairman of the Supervisory Board, Emil Georg von Stauss, explaining that the situation could threaten the very existence of BMW AG if there were any setback to aero engine production. This change in focus did in fact lead to a significant increase in external control from political and military agencies, weakening the position of the BMW management and eroding the position of Franz Josef Popp, whose leadership of BMW had been relatively autonomous and autocratic to that point. Statutes enacted on October 1, 1940 required all subsidiaries to transfer profit and loss responsibility to BMW AG. Expansion of the aero engine business required several injections of capital to Flugmotorenbau GmbH, with the total capitalization of BMW AG increasing in stages to RM 100 million by 1944. Further restructuring was carried out in 1944, with centralization of sales in BMW AG and the GmbHs acting only as property companies. The emphasis on aero engines caused significant changes in BMW AG's business. Motorcycle production located at the Munich manufacturing facility abandoned production of non-military motorcycles by 1940, producing only the R12 and the R75, which were supplied to the Wehrmacht. At the beginning of 1942, motorcycle production was transferred to Eisenach so that the Munich plant could be dedicated to aero engine fabrication, and in 1942, BMW abandoned motorcycle production altogether. BMW also ceased production of automobiles in 1940, since cars were not being produced for the military. Only automobile repair facilities were retained, along with a development department. A wide range of aero engines were ultimately produced for the Luftwaffe, including one of the most powerful engines of the time - the BMW 801. Over 30,000 aero engines were manufactured through 1945, as well as over 500 jet engines such as the BMW 003. To enable this massive production effort, forced labour was utilized, consisting primarily of prisoners from concentration camps such as Dachau. By the end of the war, almost 50% of the 50,000 person workforce at BMW AG consisted of prisoners from concentration camps. BMW AG plants were confiscated by Allied troops at the end of the war, and production of aero and jet engines for the Luftwaffe was shut down. Second crisis for BMW AG WWII aftermath BMW AG was heavily bombed towards the end of the war, reducing most of the company's production facilities to rubble. In fact, by the end of the war, the Munich plant was
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completely destroyed. Of its sites, those in eastern Germany (Eisenach-Drrerhof, WandlitzBasdorf and Zhlsdorf) were seized by the Soviets. After the war the Munich factory took some time to restart production in any volume. BMW was banned from manufacturing for three years by the Allies and did not produce a motorcycle, the R24, until 1948, and a car model until 1952. During the three year ban BMW used scraps and what resources they had available to manufacture bicycles and kitchen supplies. In the east, the company's factory at Eisenach was taken over by the Soviet Awtowelo group which formed finally the Eisenacher Motor-Werke. That company offered "BMWs" for sale until 1951, when the Bavarian company prevented use of the trademarks: the name, the logo and the "double-kidney" radiator grille. The cars and motorcycles were then branded EMW (EisenacherMotoren-Werke), production continuing until 1955. In the west, the BAC, Bristol Aeroplane Company, inspected the factory, and returned to Britain with plans for the 326, 327 and 328 models. These plans, which became official war reparations, along with BMW engineer Fritz Fiedler allowed the newly formed Bristol Cars to produce a new, high-quality sports saloon (sedan), the 400 by 1947, a car so similar to the BMW 327 that it even kept the famous BMW grille. In 1948 BMW produced its first postwar motorcycle and in 1952 it produced its first passenger car since the war. However, its car models were not commercially successful; models such as the acclaimed BMW 507 and 503 were too expensive to build profitably and were low volume. By the late 1950s, it was also making bubble-cars such as the Isetta. Third crisis for BMW AG a company for sale In 1959, after BMW had survived takeover attempts made by American Motors and the Rootes Group, the chairman of BMW's supervisory board suggested a merger with DaimlerBenz. The dealers and small shareholders opposed this suggestion and rallied around a counter-proposal, which gained enough support to stop the merger. At that time, the Quandt Group, led by half-brothers Herbert and HaraldQuandt, stepson of the Third Reich Minister of Propaganda Joseph Goebbels, had recently increased their holdings in BMW and had become their largest shareholder. By the end of November 1960, the Quandts owned twothirds of BMW's stock between them. By this time BMW had launched the 700, a small car with an air-cooled, rear-mounted 697 cc boxer engine derived from the engine powering the R67 motorcycle. It was available as a 2door sedan and as a coupe, both versions having been designed by Giovanni Michelotti.
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There was also a more powerful RS model for racing.Competition successes in the 700 began to secure BMW's reputation for sports sedans. At the Frankfurt Motor Show in 1961, BMW launched the 1500, a compact sedan with front disc brakes and four-wheel independent suspension. This modern specification further cemented BMW's reputation for sporting cars. It was the first BMW to officially feature the "Hofmeister kink", the rear window line that has been the hallmark of all BMWs since then. The "New Class" 1500 was developed into 1600 and 1800 models. In 1966, the two-door version of the 1600 was launched, along with a convertible in 1967. These models began the '02' series, of which the 2002 was the best known, and which was continued until 1976 when it was replaced by the BMW 3 Series. By 1963, with the company back on its feet, BMW offered dividends to its shareholders for the first time since before World War II Expansion- Hans Glas GmbH By 1966, the Munich plant had reached the limits of its production capacity. Although BMW had initially planned to build an entirely new factory, the company bought the crisis-ridden Hans Glas GmbH with its factories in Dingolfing and Landshut. Both plants were restructured, and in the following decades BMW's largest plant took shape in Dingolfing. In 1968, BMW launched its large "New Six" sedans, the 2500, 2800, and American Bavaria, and coups, the 2.5 CS and 2800 CS. Of major importance to BMW was the arrival of Eberhard von Kuenheim from Daimler-Benz AG. Just 40 years old, he presided over the company's transformation from a national firm with a European-focused reputation into a global brand with international prestige. Already commercially successful by the mid 60s, in December 1971, BMW moved to the new HQ present in Munich, architecturally modeled after four cylinders. In 1972, the 5 Series was launched to replace the New Six sedans, with a body styled by Bertone. The new class coupes were replaced by the 3 Series in 1975, and newly introduced larger sedans became the 7 Series in 1977. Thus the three-tier sports sedan range was formed, and BMW essentially followed this formula into the 1990s. Other cars, like the 6 Series coupes that replaced the CS and the M1, were also added to the mix as the market demanded. From 1970 to 1993, under von Kuenheim, turnover increased 18-fold, car production quadrupled and motorcycle production tripled.
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Rover Between 1994 and 2000, under the leadership of Bernd Pischetsrieder, BMW owned the Rover Group in an attempt to get into mass market production, buying it from British Aerospace. This brought the active Rover, Mini and Land Rover brands as well as rights to many dormant marques such as Austin, Morris, Riley, Triumph and Wolseley under BMW ownership. The venture was not successful. For years, Rover tried to rival BMW, if not in product, then in market positioning and "snob appeal". BMW found it difficult to reposition the English automaker alongside its own products and the Rover division was faced with endless changes in its marketing strategy. In the six years under BMW, Rover was positioned as a premium automaker, a mass-market automaker, a division of BMW and an independent unit. A five part BBC documentary, When Rover Met BMW (1996), gave some insight into the difficulties faced by the two firms. BMW was more successful with the Mini, MG and Land Rover brands, which did not have parallels in its own range at the time. In 2000, BMW disposed of Rover after years of losses, with Rover cars going to the Phoenix Venture Holdings for a nominal 10 and Land Rover going to the Ford Motor Company. The German press ridiculed the English firm as "The English Patient", after the film. BMW itself, protected by its product range's image, was largely spared the blame. Even the British press was not particularly sympathetic towards Rover. BMW retained the rights to Mini, Triumph and other marques. MINI has been a highly successful business, though the other names have not been used yet. Following the bankruptcy of MG Rover in 2005, the Rover name was sold to Ford in 2006 after BMW gave it a first refusal offer in 2000. However, Ford did not release any Rover-badged cars before selling the name to Tata Group, while the MG brand has been relaunched by Nanjing Automobile of China. Redesign controversy In the early 2000s, BMW undertook another of its periodic cycles of redoing the design language of its various series of vehicles, under the auspices of newly promoted design chief Christopher Bangle. These controversial designs often featured unconventional proportions with complex concave and convex curved surfaces combined with sharp panel creases and slashes, a design cue called "flame surfacing". Much of the new language did not rest well with BMW enthusiasts or the automotive press which referred to the new designs as "Bangled" or "Bangle-ised". Although Bangle did not pen all of the new designs himself, as
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the design chief he was ultimately responsible for the direction that the company took and thus received much of the criticism. As Bangle has now been promoted within the company to the BMW Group Head of Design, leaving him in charge of not only BMW but also RollsRoyce and Mini, som questioned what long term effect the disaffection of BMW traditionalists[clarification needed] for these designs will have on sales, and on the company's future. Sales at BMW have increased every year since some of his most debated designs have gone into production. Many aspects of the "controversial" designs are now beginning to surface in other auto manufacturer's designs. Though the design debuted and was popularized by BMW's 7-Series, Hyundai incorporated this design cue in 1999, three years before the 7-Series was released, and Maybach incorporated it since its first showing in 1997. Bangle was also responsible for many 'conservative' BMW designs and has worked at BMW for almost a decade. The first X5 sketches (which closely resembled the production car), were designed by him, and under his tenure the E46 3 Series came to be. Despite much of the scorn heaped on Chris Bangle, his design selections were approved by the entire executive board of BMW AG, including the majority owners, the Quandt family.BMW's design team has won numerous awards with him at the helm. Production outside Germany BMW's Rosslyn, South Africa, plant was the first BMW assembly line established outside Germany, with production starting in 1973. The wholly owned subsidiary now exports over 70% of its output. In the mid-1990s, BMW invested R1bn to upgrade the Rosslyn factory. The plant now exports over 50,000 3 Series cars a year, mostly to the USA, Japan, Australia, Africa and the Middle East. BMW started producing automobiles at its Spartanburg, South Carolina, plant in 1994. Today, the plant manufactures the BMW X5 and the BMW X6. The production of the BMW X3 will be moving to Spartanburg from Europe after the completion of a major expansion of the U.S. facility. The Spartanburg plant is open six days a week, producing automobiles approximately 110 hours a week. It employs about 4,700 people and manufactures over 600 vehicles daily. Recently, the plant has undergone a major renovation switching from 2 production lines down to one. Both the X5 and the X6 are produced in the same line, one right after the other. Outside Germany, the largest output of the BMW Group comes from British factories. The Hams Hall plant manufactures four-cylinder BMW engines for use around the world in 3-
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Series, 1-Series and Z4 vehicles. This is in addition to MINIs and Rolls-Royces made in Oxford and Goodwood. BMW signed agreement in 1999 with Avtotor to produce cars in Kaliningrad, Russia. Factory has been assembling 3 and 5 -series cars. Starting from October 2004, BMWs intended for the Chinese market are produced in Shenyang, China. BMW has established a joint venture with Chinese manufacturer Brilliance to build BMW 3 Series and 5 Series that have been modified for the needs of local markets. The BMW X3 was manufactured in Graz, Austria between 2004 and 2007 by Magna Steyr with mainly German components. The X3 production will be moved to the Spartanburg plant due in part to high production and transportation costs of what was meant to be the "more affordable" SUV. North American pricing, after said costs, were nearly on par with the larger, American-built X5. In 2005, BMW Group built a new manufacturing facility in Egypt. This plant builds 3 Series, 5 Series, 7 Series, and X3 vehicles for the African and Middle East markets. BMW opened its first assembly plant in Chennai, India in March 2007 to assemble 3-series and 5-series vehicles. The 20 Million Euro plant aims to produce 1,700 cars per year in the medium term, though this could rise to up to 10,000 cars if demand grows. The new factory may also be used to help boost the production of BMWs super-successful MINI.BMW India headquarters is located in Gurgaon outside Delhi. Rolls-Royce In the early 1990s, BMW and Rolls-Royce Motors began a joint venture that would see the new Rolls-Royce Silver Seraph and Bentley Arnage adopt BMW engines. In 1998, both BMW and Volkswagen tried to purchase Rolls-Royce Motors. Volkswagen outbid BMW and bought the company for 430 million, but BMW outflanked its German rival. Although Volkswagen had bought rights to the "Spirit of Ecstasy" mascot and the shape of the radiator grille, it lacked rights to the Rolls-Royce name. Rolls-Royce plc (the aeroengine business) retained the rights over the Rolls-Royce trademark and wished to strengthen its existing business partnership with BMW which extended to the BMW Rolls-Royce joint venture. Consequently, BMW was later in 1998 allowed to acquire the rights to use the name "Rolls-Royce and "RR" logo on cars for 40 million. In a separate deal BMW agreed to let Volkswagen use the name "Rolls-Royce and "RR" logo on cars until 2003 on condition that BMW would get the right to the grille and mascot from 2003, onwards.
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BMW supplied the engines to the current Seraph/Arnage range and their supply contract had a clause that allowed BMW to stop the supply of engines the day another owner, (than then Vickers plc), took over the company. BMW could effectively stop Volkswagens Seraph/Arnage production. This might have biased the deal. Anyway, Volkswagen was permitted to build Rolls-Royces with all three trademarks at its Crewe factory only until 2003, but quickly shifted its emphasis to the Bentley brand. BMW would have all the three key trademarks in 2003. In the meantime, BMW was faced with the need to build a new factory and develop a new model. The new factory at Goodwood produced the new Rolls-Royce Phantom, unveiled on January 2, 2003, and officially launched at the Detroit Auto Show on January 5, 2003. The model, priced around US$330,000, has experienced record sales worldwide of 796 Phantoms sold in 2005.
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BMW INDIA
The BMW Group is a manufacturer of luxury automobiles and motorcycles. It has 24 production facilities spread over thirteen countries and the companys products are sold in more than 140 countries. BMW Group owns three brands namely BMW, MINI and RollsRoyce. The BMW Group sold approximately 1.29 million cars and approx. 87,000 motorcycles in 2009 and its revenues totalled 50.68 billion Euros. BMW India is headquartered in Gurgaon, Haryana and is a 100% subsidiary of the BMW Group. India operations commenced on 29th March 2007, when BMW India officially opened its production plant in Chennai. The Chennai plant produces the BMW 3 Series and BMW 5 Series Sedans in petrol and diesel variants and has a capacity to produce 3000 units per year on a single shift basis. BMWs initial investment to set up operations in India was Rupees 110 crores. As of 2009, BMW India directly employed approximately 200 people with up to 600 additional jobs having been created in the dealer and service network. Currently, BMW has around 20 dealers and service centres across the country with aggressive plans to open additional dealerships. BMW India has also established an International Purchasing Office (IPO) at its headquarters in Gurgaon. The IPO will focus on the development of exports from India to the BMW Group International Production Network and work towards increasing the sourcing share from India over the coming years. The activities include the identification and assessment of potential suppliers taking into account BMWs requirements for quality, technology and logistics. The IPO will explore procurement of production material (components) as well as IT and Engineering Services. In 2010, BMW Group introduced BMW Financial Services in India as a 100% subsidiary, headquartered in Gurgaon (National Capital Region). BMW Financial Services operates as a Non-Banking Finance Company (NBFC) in India. BMW Financial Services operates with its three business lines: Retail Finance, Commercial Finance and Insurance Solutions (through cooperation partners). The services offered through BMW Financial Services are significantly valuable to the premium clientele in India who require exclusive and flexible financial solutions.
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Operations Till date BMW Group has invested more than Rs 180 Crores in India. The wide range of BMW activities in India include the establishment of a production plant in Chennai, Tamil Nadu, parts warehouse in Mumbai and development of a dealer organization across major metropolitan centers of the country. The BMW Plant at Chennai produces among others, the BMW 3 Series, BMW 5 Series, BMW X1 in petrol and diesel variants and the BMW 7 series. The new BMW X3 is also produced. The BMW Plant Chennai has the capacity to produce 11,000 units per year on a double shift basis. Vision & Values BMWs mission statement is to "Become the most successful premium manufacturer in the car industry" Their vision is: uniqueness through diversity, leadership, taking risks, and being courteous. Management Team KarimHabib is the Head of Exterior Design for BMW Automobiles. Born in Beirut, Lebanon in 1970, Mr. Habib worked at the College Stanislas in Montreal, Canada for a period of seven years. After that he attended the prestigious McGill University and earned his Bachelors of Engineering degree. He also studied at the Art Center Europe and Art Center College of Design in Pasadena, where he earned a Bachelors in Transportation Design. Habib has held several positions in BMW and in March 2011 he was appointed the Head of Exterior Design at BMW. Dr. Andreas Schaaf is the President of BMW India Private Limited. Dr. Schaaf was born in Haan, Germany in 1970 and joined BMW in 1996. He worked in the Production Department for 2 years; in the Corporate Strategy Department for 2 years; as the Head of Product Portfolio Management and New Product Concepts, Central Marketing for 2 years; Head of Product and Price Planning for Asia, Pacific, Africa and Eastern Europe, Sales for 3 years; and as Head of Market Development for Asia, Pacific and Africa for 1 year. In 2010, he joined BMW India and was appointed the president of the company. Dr. Schaaf studied Business Administration from the University of Bayreuth, EcoleSuprieure de Commerce Dijon as an Exchange Student, and did his Doctoral Thesis from the University of Bayreuth. Christian Saffer serves as the Director of Marketing of BMW India Private Limited. Rodney Woods serves as the Director of Finance, Human Resources, IT and Administration of BMW India Private Limited.
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Manufacturing Facilities In 2007, the company opened its production plant in Chennai (Tamil Nadu) to sell cars exclusively to the Indian market. The BMW plant in Chennai produces the BMW 3 Series and the BMW 5 Series, both in petrol and diesel variants. The plant has the capacity to produce 3000 units per year. The German luxury car maker rolled out its 5-Series cars from Chennai at an ex-showroom price tag ranging between Rs.39.8 lakhs and Rs. 58 lakhs. The cars were produced both in petrol and diesel variants. While the 523i, 530d and 525d were produced as Completely Knocked Down (CKD) units in Chennai, the 535i was imported as a Completely Built Unit (CBU). The production facility in Chennai is BMWs fifth factory in Asia and is a part of the companys goal of selling 1,50,000 cars in Asia in 2007. The company made an investment of 20 million Euros to open this plant. The production plant in Chennai, when it started in 2007 had a total workforce of 200 people. The plant also manufactures the seats and doors of the car but the rest of the parts are imported.
Technology BMW has cars that come in both petrol and diesel engines. According to the company, the petrol engine has a High Precision Injection system that reduces fuel consumption and is part of BMWs Efficient Dynamics system that aims to bring fuel efficiency to all BMW cars. This High Precision Injection technology has the piezo injector which is positioned between the valves and the spark plug. This technology consists of a number of piezo crystals which expand when they come in contact with electricity. Improving car performance, the expansion causes the fuel-air mixture into the combustion chamber at 200 bar. The pressure causes very little fuel to be used, thereby making this technology an important feature of all BMW cars. Since the piezo injections require only 0.14 milliseconds, many injections can be inserted in one cycle. There is an electronic system that adjusts the timing and dose of fuel injected into the system. This leads to a reduction in fuel consumption and increase in fuel efficiency. Awards & Recognition BMW 5 Series wins Eight Top Media Awards in India. Best Executive Car of the Year TopGear Award 2011, received by BMW. Luxury Prestige Sedan of the Year ET Zigwheels Award 2011, received by Andreas Schaaf, President, BMW India.
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Best Sedan of the Year The Golden Steering Award 2010. Premium Automobile of the Year CNBC Overdrive 2011, received by Christian Saffer, Director, Marketing, BMW India. Best Design and Styling Bloomberg-UTV Autocar Award 2011, received by Andreas Schaaf, President, BMW India. Premium Car of the Year Business Standard Motoring Award 2011, received by Rodney Woods, Director Finance, Human Resources, IT and Administration, BMW India. Premium Car of the Year Car India & Bike India Award 2011, received by Rodney Woods, Director Finance, Human Resources, IT and Administration, BMW India. Premium Sedan of the Year NDTV Car and Bike Award 2011, received by Christian Saffer, Director, Marketing, BMW India
BMW India is honored to receive the top automotive excellence awards in India and to be acknowledged by such a diverse and esteemed panel of judges. The new BMW 5 Series is a clear winner from the BMW stable. It has significantly contributed to the success and image of BMW in India. This sixth generation automobile has all the attributes of the ultimate luxury sedan. International Operations The BMW Company is an extremely successful manufacturer of automobiles and motorcycles globally and has Rolls-Royce, MINI and BMW brands. The company operates 24 production facilities in 13 countries and has a total dealership network in 140 countries. The company has achieved a global sales volume of 1.29 million automobiles and 87,000 bikes for the 2009 year. As of 2009, the company employed a total workforce of approximately 96,000 employees. In Asia, BMW sold 16,959 Minis in 2007, a 3.7 per cent increase from the previous year and had sales of 142 Rolls-Royce Phantom vehicles. Graz, Austria is the region which produces the BMW X3 (E83). 45,973 X3s were produced in 2009. The Spartanburg plant in South Carolina, USA is the hub for production of the BMW XR (F25). The production figures as per the country in 2008 are as follows: Germany - 9,01, 898 cars Mexico - 1,00,000 cars Russia - 2,000 cars United Kingdom - 2,36,436 cars Austria - 83,863 cars
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USA - 1,70,741 cars South Africa - 47,980 cars Future Plans BMW is launching the new 2 Series and is renaming the 1 Series Coupe and Convertible models to 2 Series. The company is expected to launch the BMW M2 not before 2014. The company is also launching the BMW 2 Series Coupe and Cabrio in 2013. The 2 Series boasts of new design movement and the Cabrio will be launched in soft-top and will have clean design lines and performance. BMW plans to launch the 1 Series so that it includes the city compact, the Family Activity Sports Tourer (FAST) and a Gran Tourismo. The 1 Series will have an expanded wheelbase and have various features of the high end and Premium luxury cars. Stepping into the small car category, the company will also develop a Z2 and M2 model. In India, BMW plans to open a dealership in Ludhiana in collaboration with Krishna Automobiles. According to the President of BMW India, Dr. Andreas Schaaf, the BMW dealership is expected to employ 30 people. There will also be a team of service engineers at this facility who would have received their training in Singapore, Malaysia and German
BMW Financial Services

MW Financial Services is currently active in more than 50 countries worldwide offering competitive financial solutions for BMW and MINI customers. In 20 countries, BMW Financial Services offers its services through leading local banking and insurance partners.
BMW India has partnered with Bajaj Allianz General Insurance for offering motor insurance and with ICICI Bank to offer customised financial solutions and ORIX Auto Infrastructure Services Limited for leasing services for its customers. These products and services are offered through the BMW Financial Services.
BMW Group Financial Services is now offering information on the BMW Facebook fan page, becoming the first OEM captive finance organization to offer financial services via social media.
In a step towards integration, BMW Financial Services and Mini Financial Services now offer consumer-friendly finance information on their Facebook pages, allowing consumers to
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access all the online content in the same place. The Facebook initiative involves a separate tab on the fan page for financial services, which then ultimately links to the BMW Web site.
BMW Group Financial Services, which encompasses
BMW Financial Services, Mini
Financial Services, Rolls Royce and Motorad, is the first luxury group to offer finance and leasing information through its Facebook fan page.
BMW USAs Facebook fan page includes tabs such as, All-new 6, All-new X3, Financial services,YouTube, Conversations and Events, as well as the typical wall, info, photo and video links.
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After clicking on the Financial Services tab, users are offered highly-visual snapshots of special offers and the benefit of personalized BMW accounts for owning and leasing, all of which are linked to bring the consumer to the BMW Web site.
The bottom of the page boasts a video about the BMW Extended Vehicle Protection program.
The Mini Facebook fan page does not have an exclusive Financial Services tab.
The financial services information is located at the bottom of the World of Mini page, and includes a video for the Mini protection plan as well as links to the Liquid Assets Game application and the Financial Services mobile site. The mobile site lets users view their accounts and make payments via smartphone.
The BMW Financial Services Group offers leasing, retail and commercial financing services to the US BMW Group customer.
It also provides services to BMW dealers.
The group controls more than $30 billion in serviced assets and 900,000 customers. With a Facebook fan base of 500,000, BMW claims it is now providing a complete brand experience to people beyond their current customer base, enticing potential consumers by inspiring brand loyalty and creating a consumer community.
The group also plans to expand the social media initiative, currently marketed entirely by word-of-mouth, by providing financial services through the Rolls Royce Facebook fan page.
It will at that point extend the marketing efforts further.With no other OEM captive finance organizations currently offering financial information on the Web, BMW Group is setting a precedent in its field and breaking the ice for discussion of luxury prices online.
The BMW Group has increased its investment in BMW Financial Services India to 5.3 billion Indian Rupees (US $ 106 million) in 2012 from 2.3 billion Indian Rupees (US $ 50 million) in 2010.
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In less than two years, BMW Financial Services India has successfully established itself as the leading provider of customized financing solutions, individually tailored leasing plans and unrivalled services. BMW Financial Services India has made significant contribution to BMW Groups success in India. This investment will help us enhance our product and service offering in India to further augment BMW Indias market leadership. In 2012, BMW Financial Services India will employ more than 80 people at its headquarters in Gurgaon. Dr. Andreas Schaaf, President, BMW India said, BMW India continues to be the leader in the Indian luxury car segment. An integral part of our winning story in India is BMW Financial Services, which provides complete peace of mind to BMW customers with financially attractive offers and professional services to make the transition from showroom to the highway, pleasurable and memorable. The investment clearly reinforces BMW Groups commitment to India.
In 2012, BMW Financial Services India has also launched an in-house Customer Interaction Centre to assist existing and prospective BMW customers. The one of its kind Customer Interaction Centre offers a complete BMW experience and has professionally trained executives, who provide expert information regarding financing and leasing, insurance, asset management, dealer financing and company car pools.
BMW Group launched BMW Financial Services India on October 5, 2010 as a 100% subsidiary headquartered in Gurgaon (National Capital Region). On June 16, 2010, BMW Financial Services received a license to operate as a Non-Banking Finance Company (NBFC) from the Reserve Bank of India.
BMW Financial Services operates with three business lines: Retail Finance, Commercial Finance and Insurance Solutions (through cooperation partners). The services offered through BMW Financial Services in India are significantly valuable to the premium clientele who require exclusive and flexible financial solutions. Service excellence is the primary focus of operations across all business lines.
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BMW Financial Services offers solutions for retail automobile financing for BMW customers and multi make customers, financing for fleet owners and commercial financing for BMW dealerships and multi make dealerships. Commercial finance solutions offered to BMW India dealerships further strengthen operations in the country and reinforce the BMW brand. BMW Financial Services India also offers BMW Lease for individuals and corporate customers. BMW Financial Services provides insurance solutions to its customers through its cooperation partner in India.
Marketing Strategies BMW India was founded in the year 2006, and the first car was launched in 2007. The company maintained an aggressive stance and launched several vehicles at different price points. BMW was positioned as an aspirational brand for young entrepreneurs and executives and adopted innovative strategies to reach the segment. It also developed exclusive dealerships, which were used as touch points to interact with the customers.
Within three years, BMW went on to become the top luxury car manufacturer in India, surpassing Mercedes-Benz, which had been present in the country for more than a decade. The cases lists the strategies adopted by BMW on its journey to reach this position and also discusses the challenges it is likely to face from existing and new competitors like Mercedes Benz and Audi. BMW tried to enter the Indian market in 1997 through a joint venture with the Hero Group, to produce luxury cars of 3 series and 5 series. The government rejected the proposal when BMW refused to invest US$ 50 million, as per the norms prescribed by the government, for entering into a Memorandum of Understanding (MoU). Instead, the company was willing to invest only around US$ 35 million. The company set up another venture in 2000 to sell highend bikes priced at over Rs.450, 000. The bikes did not find many takers, and BMW was forced to halve the price. However, when sales were still low, BMW decided to exit the venture.
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Journey to the Top From the beginning, the company aimed at achieving a leading position in the market and planned to become the largest player in the Indian luxury automobile segment in a span of four years. According to Kronschnabl, entering India was like qualifying for the Olympic Games. You don't go to the Olympics hoping to come second. Though India was far behind other markets which had a higher volume, BMW considered it to be an important market due to its high potential...
The Vehicle Range
In June 2007, BMW launched its 5 series models in India. Initially four variants - two in diesel and two petrol were launched. Entering the country by launching high priced models was also a part of the company's strategy for the Indian market. According to Schaaf, "BMW believe that when you enter a new market, the business does not start with entry models. The experience shows if you enter a market which has a relatively small target group, you need to build a premium image for the brand through the high-end models. Subsequently other models were introduced... BMW Bikes German bike-maker BMW Motorrad known for some of the most iconic motorcycles and innovation in two-wheeler technologies has made its entry into the Indian market with its extensive range of high-end superbikes including its adventure motorcycle series. Its entire line-up is available in India sold via BMW dealerships across the country. Motorcycling is the greatest and most exciting hobby in the world. There is hardly any other way to experience such diversity with all five senses: acceleration, banking, sound, nature as if everything were made just to create fascinating moments on a motorcycle.
Enjoy perfection down to the last detail, the high-end technology, the very best riding properties and powerful riding fun on the road, on the race track and over rough terrain. To make these priceless moments as pleasant as possible for you whether on a sporty line, a big tour or simply for everyday riding, the BMW Motorrad engineers, designers and developers constantly seek out new solutions which inconspicuously help make your experience of motorcycling safe, comfortable and sporty BMW Motorrad is sheer riding pleasure. Thats what its all about.
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Pricing the Luxury Brand BMW's target client group in India included young up-and-coming entrepreneurs and corporate executives. It targeted young people who were looking for sporty looking cars. BMW did not look to reduce its price much compared to its competitors; instead it looked to provide more features for the same price. According to Kronschnabl, "The price is related to the value the customer gets and a BMW car owner gets more value for the price the customer pays. For instance, the 320i model comes with automatic transmission. The total cost of ownership is low and our car price is reasonable. Within the premium segment, BMW catered to different price points... BMW India was the first company to develop a luxury car dealership network in the country. Though in India, most of the luxury customers did not want to visit automobile showrooms, preferring instead for the vehicles to be shown to them at their homes / offices, BMW decided to open dealerships. The company set up showrooms that were of international standards. BMW also started BMW Studio in New Delhi, to provide the complete BMW experience to customers. According to Kronschnabl, He looked at the existing dealerships and most of them looked like covered parking. The customers should be given an experience, not just show five cars parked next to one another...
Reaching the Customer
By 2015, India is likely to become the fourth largest market for cars in the world. Analysts were of the view that the demand for vehicles in the premium segment would also grow. The new generation of Indians in their 30s and 40's had become the main wealth creators, and they played a major role in growing the demand for luxury goods in the country. According to DebashisMitra, Director Sales and Marketing of Mercedes Benz India, Buying a luxury car earlier was a taboo in India. The earlier perception was rich people are bad people. That taboo is slowly, slowly going out. India will be one of the most important markets for automobiles.
Can BMW Retain its Position? When BMW entered the Indian market, Benz was the major player in the luxury car segment in India with a market share of 50%. At that time, analysts had said that Benz was an aspirational vehicle, and BMW would not be able to challenge it seriously. In 2009, BMW India went ahead of Mercedes Benz India in sales.
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In March 2011, BMW delivered 1,027 units to the customers. With this feat, it not only retained its position as the top luxury car manufacturer in the country, but also became the first luxury car manufacturer to sell over 1,000 cars in a single month in India. On the achievement, Schaaf said that "This proves that BMW has a whole range of competitive advantages: exciting new products, first class premium dealerships, superior customer service, and a very strong and aspirational brand. BMW Group, headquartered in Munich, Germany, is one of the most successful multi brand premium automobile manufacturers in the world. The company manufactures, distributes and sells passenger cars (including Sedans, Coupes, and Convertibles etc) and motorcycles. BMW operates three business segments namely: Automobiles, Motorcycles and Financial Services. BMW is the parent company of the Mini and Rolls-Royce car brands, and, formerly, Rover (car)/Rover. The company's slogans in English are "The Ultimate Driving Machine" and "Sheer Driving Pleasure". The company produces, and markets, a varied range of higher end sporty 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 name of 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. BMW Group is comprises of many segments within its vast portfolio but I would be only concentrating on Automobiles. BMW group are focused on fabricating a variety of tangible products, and also the group has many intangible financial services. The BMW Groups automotive which I am more interested in this easy is portion of their portfolio consists of the three premium brands: BMW, MINI, and Rolls-Royce of which I would be more only looking at BMW and would also demonstrate their marketing. BMW is supported by 11 different model series which are: BMW C1, BMW 1 series, BMW 3 series, BMW 5 series, BMW 6 series, and BMW 7 series, BMW X 3, BMW X 5, BMW X 6 and the BMW Z4, BMW M5, BMW M6, and BMW Z4 M. BMWs guerrilla marketing tactics for Mini After BMW India discovered last year that over one lakh likes from its Facebook fans were from India, it took less than six months for the brand to launch its luxury small car, Mini, in the Indian market. Beetle of Volkswagen is the only competitor of Mini in the Indian market.
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Sale of premium segment cars, largely dominated by Mercedes, Audi and BMW in India has been growing at a promising rate of over 50 per cent till the last quarter of 2011. Mini plans to focus on brand building with strong marketing activities in the next two years to cash in on the growing premium cars segment.
BMW is focused on a strong, surprising, daring and unexpected marketing strategy for the Indian market, according to Dr Andreas Schaaf, President, BMW Group India.
In the overall marketing spends, the company will spend a large share of money on BTL activities than on classic ATL activities, informed Bejamin Nagel, Head, Mini India. Minis guerilla marketing strategy The brands dummy cars floating on a lake near Delhi and being placed on the roofs of skyscrapers is a new strategy adopted by BMW in India. While it may be a replication of BMWs global daring marketing strategy, as its marketing officials call it, the step appears seems to counter Volkswagens out of home strategy for Polo.
The brand is all set to work with multiple creative and events agencies to devise diverse innovative ideas. It is a premium brand, not a mass product; therefore mass media will not be the key focus of our marketing strategy for the brand. Guerilla and experiential marketing is at the centre of our plan for Mini in India, as it is in other markets, asserted Nagel.
Optimistic in 2012
Schaaf said that BMW Group is optimistic about its marketing spends in 2012, despite a significant increase in the excise duty in General Budget provisions and constant hike in fuel prices, especially last year. BMW India increased its marketing spend by 40 per cent in the first quarter of 2012 and its only going to go up in future. Though there is a sense of uncertainty in the market due to reasons such as regulatory hurdles and fuel price, I am sure optimistic about the auto sector in
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India. China also went through a similar uncertainty, as did many other markets, but the uncertainty will not affect our optimism. Our media spend will continue to grow, he added.
Mini opened its first showroom in Mumbai and has received 100 bookings so far.
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SWOT Analysis Strengths

BMW independently owned. Product development on core platforms keeps its various brands distinct. Focus on being the best. Extensive distribution channels BMW implemented a strategy which encompassed supportive marketing programs. A hydrogen combustion engine offering.
Weaknesses Fails to appeal wider range due to affordability of the car. Maintenance cost of the car is expensive. Competitors had exclusive dealerships Its associated with highly expensive products and is perceived to be affordable only by those in the upper level of the society. Opportunities
Global expansion entering into new markets. Huge demand for small cars in the market. Asia is the key market for BMW. There is a market for luxury/performance cars. Leverage brand image. Dealer expansion. Growing market segments can with sub-brand models.
Threats Oil prices going higher and higher. Government policies changing. Environment/social issues.
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Marketing Mix For BMW 4 PS

Product The most important element in the marketing mix is the companys product because it provides the useful requirements required by the customers. For eg. A car that does not start in the morning will not be liked by consumers. Marketing managers develop their products into brands that help to create a single that helps to position in the minds of customers. The present models are-BMW 3 series-sedan, coupe, convertible, touring, and compact. BMW 5 series-sedan, touring, BMW 6 series-coupe, convertible. BMW 7 series-sedan, BMW Z4-Roadster, BMW X3-SUV, BMW X5-SUV, BMW MConvertible, coupe Each product goes through what is known as a life cycle process.BMW knows the importance of making sure that not all of its products are at maturity at once, as this might result in the product beginning to decline at the same time,normally the life cycle has a particular year when the car launches and after certain years it has on matured leave where the company has to get something in the series to launch where customers can enjoy the product to the fullest and with few new features in the car. For eg BMW X5 launched in 2000 and then the company launched higher version of X5 in 2006. It is clear that BMW has spread over a period of time the life cycle of these products. The PLC not only helps to ensure more constant income but also allows for the development of replacement products on a consistent basis. BMW has also been expanding its portfolio recently and this can be seen by the presence of some new product launches in the last few years. The above products are all settled. Many of them have been being manufactured for many years now with several re-designs and re- launches. Price BMW price ranges from approximately 30lacs-3crores.There are many factors that affect the car prices such as engine size, motor sport versions etc.Lets take an example of the price strategy that has been used by BMW-3series in competition oriented pricing . Most of the research shows that such as VW, Audi, AlfaRomeo etc in the 3 series market is based around the same price. This is because the car industry is large and production costs are not soimportant and creating the largest profit is not as necessary as it would be for a smaller company.
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Place BMW use superior market dealerships and imports for non dealer network countries, they have four car manufacturing plants in the UK. There are more than 156 dealers in the UK who are franchised to sell BMW cars, additionally 148 dealers are franchised to sell mini. Worldwide BMW operate in more than 100 countries with approximately 4000 plus dealers which are authorised to sell both new and used cars, parts and after sales service products. The distribution pattern is manufacturer to dealer and finally the consumer. Promotion BMW has always focused entirely on their cars with same advertising company WCRS being used since 1979. A broad range of advertising is used by this such as television from branding campaigns and new car launches, the press with tabloid weekend colour supplements, regional publications and magazines, outdoor campaigns, sales literature, brochers, etc. BMW association is the james bond films since 1983,19994,19997 and 1999. Eg- In the world is not enough bond drove the new z8 before the car launched and in Austin powers 3the mini cooper was used. This kind of move has helped BMW to position its car in front of vast audiences around the world and also this indicated that the car was fast ,more technologically advance d and had created an image in the mibd of future customers that have best quality safety, they are different from others. With BMW viral marketing started developing, BMW films was the driving force of BMWs successful interactive marketing campaign, the ultimate Driving machine. In 2001, BMW released a film called The HIRE a series for feature-quality short films for internet launch. Each short film featured a central character called the driver who helped people through difficult circumstances using driving skills in a prominent BMW. BMW films series the promotional campaign consisted of tv spots that which showed trackers and print and online advertising. BMW films was a non-traditional concept to show what makes a bmw a bmw. But it was much successful concept it increased the BMW sales in 2001 by 12.5% as compare to 2000. The short films were recommended by 94%. It proved to be immensely popular that BMW produced a free DVD of the series which included extra features. With this kind of massive promotional activities BMW was able to achieve in the mind of the customers wish for individualisation and emotional product as these promotional activities somewhere or the other make consumers feel like that.
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Most of the people argue that there is always a chance to learn new things. How big is the company and how successful they are companies needed to think and make plans for them. For future marketing strategies, BMW cars are considered to be cars for the rich and not the poor. They can enter the market with small life style cars and they can expand the market. On the other hand its accessories and parts are expensive for maintenance which can reduce the desire of the people to purchase the car. In addition this can get few new models in the bmw mini and can target a different market segment and target females, middle-class and upper middle class people. BMW can also create a good relationship with female buyers and they need to do more promotional strategies to attract more of female consumers with like of limited edition especially for females in existing models or new models in this addition just by giving a few models in this addition which the females may like. For example- pink colour ,stuff toy, trendy seat covers etc. The Asia pacific region is becoming increasingly crucial for global automotive sales. Although it has been overshadowed by Chinas rapid growth in recent years, bmw needs a steady growth and needs to concentrate on the steady market out there. The markets are going to be huge as there is more population in these countries as compared to USA and UK.And BMW also needs to come out with more interactive marketing campaigns. These kind of strategies will create good brand value for the company and the company will portray itself as it wants in front of the consumers. BMW wants to double its shares in the next 3 to 5 years and for this it is doing a lot of R&D as that is its strength and it has an edge over its competitors.
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INFINITY CARS PVT. LTD (BMW/ASTON MARTIN &MINI COOPER DEALERSHIP)
BMW India announced the opening of Infinity Cars showroom in Worli, its dealership facility in Mumbai. Infinity Cars brings to Mumbai the BMW standards of sales and service and the same international experience as any BMW dealership worldwide. The new showroom is located at Seth MotilalSanghiMarg, opposite Nehru Planetarium in Worli and the workshop is located in Chembur. The showroom and workshop are headed by Ms. PoojaChoudary, Managing Director, Infinity Cars.Commenting on the occasion, Mr. Peter Kronschnabl, President, BMW India said, "Today we are proud to launch an innovative concept of a car showroom in India. This BMW showroom will be the first of its kind, split in two levels with a reception area on the ground floor, and a car display on the first floor that has evolved on the signature-BMW concept of street display and the pavement flanking alongside the customer area."
Our partnership with Infinity Cars in Mumbai has been very successful and is reflective of BMW's efforts to connect with its consumers and provide high quality services that are at par with international standards. We are confident that this partnership in Mumbai, the financial capital of India, will significantly add momentum to our ambitions in India," Mr. Kronschnabl added further.
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The Infinity Cars showroom covers nearly 7000 sq ft of space and offers the customers a unique retail environment. All operations related to sales are efficiently covered from the space, which ensures comfort to the customer at the point of sales.
The approximate area of the Infinity Cars workshop in Chembur is 18,000 sq ft and has 9 service bays that can service 35 to 40 vehicles a day.
Ms. PoojaChoudary, Managing Director, Infinity Cars said, "Working with BMW in Mumbai for the last two years has been a very enriching experience. It is an exciting opportunity for us as BMW symbolizes dynamic forward moving people and is among the most coveted premium brands in India. We are fully committed to this partnership and look forward to an exciting time ahead."
As with every other BMW dealership, Infinity Cars has provided its staff intense training in management of sales, service, spare parts and business systems to ensure customers receive best-in-class pre and post sales ownership experience. A team of service engineers have also been trained at BMW's training centers in Singapore, Malaysia and Germany.
If youve laid down and given thanks to your maker for seeing many more of those Aston Martins and BMWs on Indian roads over the last few years, there are two people to whom you should also pay your respects husband-wife duo Pooja and LalitChoudary. While she is the MD of BMW dealership Infinity Cars in Mumbai, he is the Director of Performance Cars the first Aston Martin dealership in India. Infinity Cars is the dealer for BMW cars in Mumbai (worli) and Madhya Pradesh and also the India distributor for Princess Yachts (part of the LVMH group). The company was founded in 2006 by its Directors, LalitChoudary and PoojaChoudary. PoojaChoudary had started her career as an architect and practiced for four years in india and two years in hongkong ,she later got married and returned to india with her husband in 2005. It was later in 2006 that they decided to start a car dealership in india. Pooja and lalitchoudary jointly started infinity cars in 2006 with just two employes. Today they have a staff of more than 300 people. In 2007 they began sales by selling seven cars a month and today they sell over 100 BMWs in a month.
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Lalitchoudary was a banker with Lehman Brothers in Hong Kong until 2005. After helping pooja set up infinity cars in Mumbai he looked around to see which luxury car maker he could get to india . In 2011 he brought in performance cars and set up the first aston martin showroom in india. The dealership brought in the right diagnostic tools and service centres to support the Aston Martin market in India.
The Aston Martin Showroom located at Kemps corner is small yet beautifully built. There is space for just two cars on display. Aston Martin is a name that needs little introduction. It has always stood for fine, civilized high performance sports cars, designed and produced by skilled craftsmen. There is a special place in the market and in the hearts of owners for classic sports cars which conform to this ideal. These are cars which bring to life the freedom and enjoyment of the open road. Even so, every Aston Martin is very much a product of todays technology. New resources and new investment in the latest computer aided design and engineering facilities, in
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statistical process control and many other leading edge disciplines -are ensuring that for Aston Martin, the future is every bit as bright as its illustrious past .
Performance Cars has an in-depth understanding of the needs of the high end market. It has built infrastructure and facilities required to service top end brands and has developed an organization trained to meet needs of its premier clients. The 97-year-old car manufacturer, which has gained worldwide fame after being portrayed in James Bond movies, finally forayed onto Indian roads with the opening of their showroom in Mumbai on April 15. Aston Martin will offer its entire range in India except Cygnet. The range includes the basic V8 Vantage to the ultra-exclusive One-77 Hypercar, he said. The cars are priced between Rs 1.35 crore to a whopping Rs 20 crore. The opening of the Aston Martin Mumbai showroom strengthens the companys global dealership network to a total of 134 dealers in 42 countries. As part of the companys ongoing expansion plans Aston Martin has recently entered into Brazil, Chile, Croatia, Czech Republic, Greece, Taiwan and Turkey whilst seeking continued growth in new markets as well as emerging markets including China and the Middle East.
Aston Martin remains at the forefront of contemporary manufacturing, a cultural force that embodies design and engineering excellence, and a brand with a truly special heritage. Renowned around the world, Aston Martin enters the next decade with the promise of radical innovation and change, without losing the core qualities that make this strong, independent British brand so widely revered.
Performance Cars, a division of Infinity Cars Pvt. Ltd., is the official dealership of Aston Martin in Mumbai.
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After a successful association with the BMW Group over the last five years, Infinity Cars, one of Indias leading BMW dealers was appointed the first dealership for MINI in India. Infinity Cars introduced the iconic MINI cars in style MINI, MINI Convertible and MINI Countryman- at their showroom off Santacruz Linking Road, Mumbais fashion high street. Car enthusiasts also had the opportunity to experience the iconic brand first hand. The 12,000 square foot, two-storey facility in Mumbai is the home to Minis entire line-up for India. The showroom with its uber cool vibe will soon have an international cuisine all day dining restaurant, giving it a contemporary lifestyle experience for its patrons. With this distinctive concept, Infinity Cars hope to bring lifes great passions for cars, food and music together in a unique environment unseen in Mumbai.
The Infinity Cars Showroom in Mumbai becomes the first exclusive Mini showroom in India. The dealership is run by the dynamic and versatile entrepreneur Mrs. PoojaChoudary, Managing Director, Infinity Cars. She is also wife of Mr. LalitChoudary, MD, Performance Cars, the exclusive Aston Martin dealership in India. Infinity Cars sets a benchmark in quality with its cutting edge efficiency and vouches to deliver uncompromising service to its clientele in India. Service centers for the Mini will be situated in Worli and Chembur
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The iconic Mini brand, once under the British ownership and now part of the BMW Group has finally landed on the Indian shores with the inaugural of the first Mini showroom in the country. Over 100 bookings have already been made from all over the country in the run up to the launch of the Mini range of cars in India.
The Infinity Cars Showroom in Santacruz, Mumbai has been appointed as the first exclusive Mini dealer in the country. The 12,000 square foot, two-storey facility in Mumbai will be home to Minis entire line-up for India that includes its hatchback, convertible and SUV models namely, the Mini Cooper, Mini Cooper S, Mini Convertible, Mini Cooper S Countryman and Mini Cooper S Countryman High. The facility will soon have an all-day restaurant as well. Service centers for the Mini will be situated in Worli and Chembur. The BMW Group will also launch two more dealerships in India later this year, which will be based in New Delhi under Deutsche Motoren and Bird Motoren.
BMW had officially introduced the Mini brand in the country at the 2012 Auto Expo in New Delhi earlier this year and starting today all the Mini models will go on sale in the country, which have been brought into the market as Completely Built Units (CBU.)
With the launch of the new showroom in Mumbai, Mini brand has officially entered the 100th country in the world, ever since the brand was incepted in the U.K.
The prices of the entire range of Mini cars for India are mentioned below: Mini Cooper Rs 25.50 lakh Mini Cooper S Rs 28.60 lakh Mini Convertible Rs 30.70 lakh Mini Cooper S Countryman Rs 32.80 lakh Mini Cooper S Countryman High Rs 35.90 lakh (All prices are ex-showroom, Mumbai.)
The Mini Cooper was a popular subcompact car produced by the British Motor Corporation from 1959 through 2000. Its successor, the MINI, is manufactured by BMW AG of Germany. Today's MINI, which is capitalized by BMW to distinguish itself from the original Mini
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Cooper, bears no relation to its predecessor other than the basic exterior design concept. The MINI has been in production since 2001
BMW India has launched the much-awaited Mini brand in India at the Auto Expo 2012 in New Delhi. BMW has launched the entire range of Mini which includes the Mini Cooper, Cooper S, Cooper Convertible and Cooper Countryman. Prices of Mini Cooper range starts from Rs. 25.50 lakhs for the Cooper, Cooper S for Rs. 28.60 lakhs, Cooper Convertible is priced at Rs. 30.70 lakhs and the sports utility variant 'Cooper Countryman' is priced at Rs. 32.80 lakhs (Rs.35.90 for Countryman High). These prices are ex-showroom. Mini Cooper and Mini Cooper Convertible share same engine and are powered by a 1.6 litre petrol engine which generates maximum power of 122 bhp at 6000 rpm with maximum torque of 163 nm at 4250 rpm. The Mini Cooper S and Cooper Countryman share same engine and are powered a turbo charged 1.6 petrol engine which generates maximum power of 184 bhp at 5500 rpm with maximum torque of 244 nm at 1600 rpm.
Bird Automotive, the official after sales service, will cater to MINI customers through its workshop in Sector 14, Gurgaon. We have been working with BMW Group India since 2007 and this association has been very successful and tremendously exciting. We are thrilled to be a part of the MINI celebration in India with the launch of the new MINI dealership by Bird Automotive in Delhi. We look forward to an enthusiastic response from our customers for the charismatic and exciting MINI, said Gaurav Bhatia, Managing Director, Bird Automotive. In view of the recent petrol price hike and hike in diesel car prices, Schaaf said that there are no immediate plans of bringing in diesel powertrains for the brand in India but it may happen later. He said that the Mumbai dealership has already sold more than 50 vehicles in the last month and expects a similar response in New Delhi Bird Automotive VasantKunj, is an exclusive MINI dealership that offers a display area of over 5000 sq ft. It has a six car display set-up spread across two floors. The new MINI dealership has been uniquely designed in a modern urban layout that represents the iconic MINI Lifestyle. Alongside its loft architecture, the dealership also has a MINI DJ Lounge, MINI Lifestyle Collection and MINI Accessories on display. Gaurav Bhatia, Manager Director, Bird Automotive said, We have been working with BMW Group India since 2007 and this association has been very successful and tremendously exciting. We are thrilled to be a part of the MINI celebration in India with the launch of the new MINI dealership by Bird Automotive in Delhi. We look forward to an enthusiastic response from our customers for the
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charismatic and exciting MINI. Bird Automotive will provide after sales support to MINI customers from its workshop located at MG Road, Opposite Sector -14, Gurgaon. MINI Financial Services is also launched as a separate brand under BMW Financial Services India. MINI Customers can now avail attractive finance and insurance options under MINI Financial Services. In addition, MINI Financial Services will also offer a comprehensive insurance package: MINI Smile (similar to BMW Secure) which will be a value-add for MINI customers over and above their basic motor insurance
Activities and events Automobile trade shows in India display the latest automobile models and automobile accessories. All the prominent automobile players of India and the world take part in these trade shows. Automobile Industry in India is growing very rapidly and all the big automobile players are making a beeline to enter Indian market. A number of automobile expo are held in India. Read about information on major auto & automobile trade fairs & events to be held in India. The competitive nature of the automobile industry has prompted the companies to take up new and innovative marketing strategies to thwart the competition. The B segment of cars is the segment which sees maximum competition as the consumer has a number of models to choose from and it's the volumes which drive the margins. All the companies as a part of their marketing strategy offers a range of vehicles in all the segment to make sure that the customer is driving one of their vehicles only. Advertisements on the Audio visual medium are a rage as it gives the car makers an opportunity to flaunt their cars. Flashy cars can be demonstrated on television but when it comes to the finer prints of the cars, print and online media comes to the rescue. The online medium offers a greater flexibility to the car companies since they come with a lot of interactive features like demonstrating the interiors of the car with its salient features. The print medium on the other hand provides an opportunity to the car makers to explain the function of a car in detail. Celebrity endorsements and testimonial advertisements have come a long way and they are also doing their bit to sell the cars.
There are many promotional events that take place at infinity cars. They usually have:48
1) Test Drive events 2) Showroom events 3) Weekend fest events (annually as per BMW India) 4) New product launches events 5) Self events
1) Test drive events- These events take place monthly; it usually takes place in a city mall or a bank which provides a platform for the company to showcase its product. From each sales team at least three or four sales consultants are sent for the event, there they explain the prospective customers about the product, its features and interested customers are allowed to take a test drive and the sales consultant has to accompany the customers during the test drive. The sales consultant asks the prospects to fill in their details in the feedback form. The sales consultant does the follow-up with these prospects within the next 48 hours. 2) Showroom events- These are the events which are organised within the showroom itself. The existing customers and the prospective customers are invited for the event which is held on a grand scale, with international artists invited to perform and with cocktails and alcohol for the guests. BMW cars are showcased at the event and prospective customers are asked to fill in their details. Follow up is done by the sales consultants after 48 hours. 3) BMW weekend fest- This event is held annually on the guidelines of BMW India, it is a two day event and all the guidelines of the event are given by BMW India with set rules and regulations. In this event customers are invited along with their families, it is a fest which is organised for kids and different games and activities are organised for the kids and their families so that they feel comfortable. The sales consultant shows the customers the cars that are on display and the prospective customers are asked to fill in the feedback form with their contact details. The prospects on attending the event are presented with a BMW goody bag. 4) New product launch- This is the event that is set up on a grand scale as per BMW India. A new BMW which is launched is showcased at the event and a celebrity brand ambassador is invited to reveal the new product.
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5) Self events-These events are not on the guidelines of BMW India and are organised by infinity cars itself, the customers are invited for the events and cocktails and alcohol is brought in for the guests the sales consultants are thre to handle customer enquiries and thre to help the customers.
An e-invite of the BMW weekend fest that is usually sent to customers
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Major Events
Cocktail Movie Launch Party at the Mini Cooper Showroom
The Mini Cooper showroom in Santa Cruz was pouring with enthusiasm on the 6th of July as fans waited eagerly for the party of the year to begin. The Mini Cocktail Party one of the most awaited, with fans who were frenzied with enthusiasm. The stars kick- started the party with their lavish entry, where Deepika drove the Mini Cooper, seated beside her was the stunning Diana Penty with Saif seated at the back. Once the stars entered the paparazzi went wild, and the fans present were ecstatic and overjoyed during which a small camera mishap took place that was sorted immediately by the production house. Fans went gaga clicking pictures with placards from the movie, the placards were on display and everyone could click pictures and also have them framed on the spot. The fans were contended with the perfect cocktail party, their favorite stars and memorabilia for a lifetime. Among all the gifts the fans also got Mini Cooper badges and Bands.
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Everyone was in high spirits as the party had 3 Cocktail drinks named after the three stars, Gautam, Veronica and Meera, the drinks were the perfect match to their personality. Now thats how a perfect Cocktail is served. Also present at the party was director HomiAdajania with stylist wife AnahitaShroffAdajania, along with the other cast and crew from the movie. Overall the Cocktail party was the perfect fusion of great music, food and drinks. It was extraordinary and had fans craving for more.
The e-invite that was sent to the guests before the actual event, more than 300 such invites were sent to BMW owners and prospective customers for the mini cooper and the BMW. This turned out to be a successful marketing strategy for both the movie and BMW, not only the movie turned out to be successful this event created 100 new BMW prospects and was a good platform for people to do networking and create future business prospects.
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New BMW 3 Series Launch
The Ultimate 3: Introduced in the Luxury and Sport Line, the all-new BMW 3 Series sets a new dimension in dynamism and elegance. Engineered with passion, sixth-generation of the worlds most successful premium sedan combines benchmark design and pioneering technology with revolutionary performance and unmatched efficiency
Mumbai. The all-new BMW 3 Series sedan was launched today in India. The sixth generation of the worlds most successful premium sedan was unveiled by Mr. Sachin Tendulkar, the legendary sportsman, at an exclusive launch event.
The all-new BMW 3 Series is produced (CKD - Completely Knocked Down) at BMW Plant Chennai and the deliveries start at BMW dealerships across India from July 2012 onwards.
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According to Dr. Andreas Schaaf, President, BMW Group India The all-new BMW 3 Series is a vehicle that has an unbeatable profile and is born from pioneering technology, a beautiful design and a lot of passion. In addition to the powerful performance and increased efficiency, the all-new BMW 3 Series offers unparalleled comfort and space. Since its inception, the BMW 3 Series has been the undisputable leader in its segment and there is no doubt that the sixth-generation of the BMW 3 Series will surpass the magnificent success that its predecessors received. The new BMW 3 Series will establish a new benchmark in the Indian luxury car segment and contribute to BMWs winning streak in India. The all-new BMW 3 Series is available in two exclusive design schemes Sport Line and Luxury Line. Sport Line celebrates the rush of adrenaline with sporty styling and interiors while Luxury Line indulges you to move in style with elegant contours and luxurious features. The all-new BMW 3 Series exhibits versatility that makes it unique by offering customers a choice of vehicle that expresses who they are and conforms to their personal preferences and lifestyle.
The all-new BMW 3 Series is available in a diesel (BMW 320d) and petrol variant (BMW 328i). The all India ex-showroom prices are as follows
BMW 320d : INR 28,90,000 BMW 320d Sport Line : INR 31,50,000 BMW 320d Luxury Line : INR 31,50,000 BMW 320d Luxury Plus : INR 36,90,000 BMW 328i Sport Line : INR 37,90,000 Price prevailing at the time of delivery will be applicable. Delivery will be made exshowroom. Ex-showroom price excludes Road tax, RTO statutory taxes/ fees, insurance and Octroi (if applicable). Prices / options subject to change without prior notice.Colors available: Alpine White and Melbourne Red as non-metallic colors and Black Sapphire, Glacier Silver, Havanna, Imperial Blue Brilliant Effect and Mineral Grey as metallic colors. Rooted in history, moving forward in design the all-new BMW 3 Series receives a fresh and contemporary face that interprets the iconic features of classic BMW design in a new way. The all-new BMW 3 Series is the first model to feature the striking new design
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language; with classic BMW double round headlights, now topped off by 'eyebrows, reaching the edge of the kidney grille. The wide stance and striking corona rings in headlights give extra intensity to the classic BMW focused look and a more impressive on-road presence. But it is the sum of all details the short overhangs, the long wheelbase, the coupelike roofline and the distinctive side creases that creates the exemplary sporting appeal.
The larger dimensions of the all-new BMW 3 Series (length +93 mm, wheelbase +50 mm) mean that the rear seat passengers can now enjoy extra legroom. Behind the fully contoured front seats, 14 mm of additional knee room and 8 mm of extra headroom further enhance the passengers comfort. The volume of the luggage compartment has been increased by 20 litres to a total of 480 litres.
The cockpit is angled towards the driver by seven degrees and puts all the important controls within easy reach to provide a sense of personal control and comfort. Seats in the all-new BMW 3 Series are electrically adjustable on both the driver and front seat passenger sides.
The BMW iDrive (the on-board Driver Information System) with 6.5 inch high-resolution display and BMW Radio Professional are featured as standard in the all-new BMW 3 Series. BMW Navigation Professional (integrated Global Positioning System - GPS), with an 8.8inch high-resolution display and rear-view camera debut in the all-new BMW 320d Luxury Plus and all-new BMW 328i Sport Line. The full-color Head-Up Display in the all-new BMW 328i Sport Line projects driving information directly into the drivers field of vision without diverting drivers attention from the road ahead.
An athlete in top condition, the all-new BMW 3 Series, is always ready to deliver a first class performance. With the new powerful engines and impressive efficiency, its sporting genes are apparent on every road, every mile of the way. The all-new BMW 328i accelerates from 0100 km/hr in 6.1 seconds with a top speed of 250 km/hr and the all-new BMW 320d accelerates from 0-100 km/hr in 7.6 seconds with a top speed of 235 km/hr. BMW EfficientDynamics doubles the Sheer Driving Pleasure of the all-new BMW 3 Series with features such as Auto Start-Stop, ECO PRO mode, Brake-Energy Regeneration, Intelligent Lightweight Construction, Electronic Power Steering, 50:50 Weight Distribution and many other innovative technologies. The fact that the all-new BMW 3 Series is also very fuel efficient makes it an outstanding vehicle, the best in its class.
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All models of the all-new BMW 3 Series also feature the new ECO PRO mode as standard, enabling efficient driving and reduced fuel consumption. Using the Driving Experience Control switch, the driver is able to choose between different driving modes to suit the driving conditions. (ECO PRO, Comfort, Sport and Sport+). *Sports+ available only in the new BMW 328i Sport Line.
The new eight-speed automatic transmission performs smooth, almost imperceptible gear shifts. At any time, in any gear, the transmission collaborates perfectly with the engine, enabling it to develop its full power and efficiency. The all-new BMW 328i Sport Line also features Shift Paddles for facilitating more convenient manual gear shifts.
BMW 3 series is here... let's have some drum rolls and some trumpets because this beast is one delightful machine that is a perfect blend of mean and muscular looks, and at the same time is elegant, stylish and has a panache that's unmatchable.The BMW 3 series is here to challenge the Audi A4, Mercedes C Class and the likes. Gracing the launch event was none other than the first brand ambassador of BMW India, Master Blaster, Sachin Tendulkar along with Andreas Schaaf, President, BMW Group India.
The new improved 2012 3 series comes at a starting price of Rs 28.90 lakh for the 320d.
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Sachin Tendulkar as the brand Ambassador of BMW
India's top cricketer Sachin Tendulkar, an avid fan of Italian sports car Ferrari, has become the brand ambassador for rival company BMW. Sachin launched BMW's new 3 series sedan here. Sachin owns a BMW 5 series and SUV X5, while wife Anjali owns a BMW 3 series. Tendulkar was previously brand ambassador for Fiat, Ferraris parent company, in 2001 for its small car Palio. Tendulkar loves Ferraris, but its not that his interest in cars ends with the Italians. He is as much passionate about BMWs and owns a few of them, according to an industry insider.
This is the first time BMW has associated itself with a celebrity.
The all-new BMW 3 series sedan by German luxury car maker BMW in petrol and diesel variants is priced between Rs 28.90 lakh and Rs 37.90 lakh (All India ex-showroom). The
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all-new BMW 3 Series is available in two exclusive design schemes- Sport Line and Luxury Line.
The all-new BMW 3 Series is a vehicle that has an unbeatable profile and is born from pioneering technology, a beautiful design and a lot of passion, BMW Group India president Andreas Schaaf mentioned at the launch.
The new BMW 3 Series will establish a new benchmark in the Indian luxury car segment and contribute to BMWs winning streak in India, he said adding that BMW enjoys 40 market share in the luxury car segment in the country.
He said the slowdown in the economy has affected the sales as the year-on-year growth remains almost the same (flat).
Schaff, however, said that a (interest) rate cut by the central bank could perk up the demand going forward. The companys June sales stood at 750 units.
He said that the company has lined up four more launches for this year.
The world will see the brand new six series Coupe, one of the most beautiful cars BMW has come up with in last 15 years. Its almost a sports sedan. Everyone will see the new refreshment of seven series. It will also be launched in second half of the year. BMW will also launch the X1 and X6 in new looks. These four major launches will come up in the next 4-5 months in India.
Stating that BMW cars have been one of his passions from early days, Sachin Tendulkar said that he drove this car in London and it felt incredible.
To him above all being a car enthusiast, safety is also equally important. He was really impressed. It is absolutely stunning and the interiors are unbelievable. It has got a lot of space. Compared to the earlier ones, this is far more spacious, Tendulkar added.
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Data Analysis 1) Referral program(referral marketing) 2) Competitor Analysis

Referral program (Referral marketing) Everyone knows that word of mouth is the best form of advertising. A genuinely satisfied client will tell their friends. But, have you ever been told about a specific business only to forget its name. You still remember that a friend had a recommendation, just not specifically what it was. That is often the case with word of mouth. It holds weight because it is from a trusted friend, but it lacks staying power because it is usually verbal. While the samples and examples provided are specific to the salon/spa industry, the basic principles can be used in many business types and models. In today's economy this is a crucial way to grow your business and your businesses profits.
Referral Cards are written word of mouth. It gives the potential new client a tangible reminder of the exact business that was recommended. Now, even weeks or months later they will be able to remember your business. Your business goes with them after the initial recommendation.
The other key factor that a referral card program offers is the incentive. It offers an incentive for the new client to come into your business and an incentive for your existing client to "tell a friend.
Referral cards offer two benefits: word-of-mouth advertisement and an opportunity to strengthen the business relationship with the referral partner. These benefits materialize best if the networking business creates a program specifically aimed at referral partner to maximize effectiveness. Part of a specially designed referral card program includes the manner in which the cards are delivered or sent. Creativity and personalization is the key to getting the referral partner excited, willing to participate in the referral card program and spread a good word or two about the business.
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Referral marketing is a structured and systematic process to maximize word of mouth potential. Referral marketing does this by encouraging, informing, promoting and rewarding customers and contacts to think and talk as much as possible about their supplier, their company, product and service and the value and benefit the supplier brings to them and people they know. Referral marketing takes word of mouth from the spontaneous situation to one where maximum referrals are generated.
Online referral marketing, using digital marketing as a platform, is the internet based approach to traditional referral marketing. Given the advances in tracking customer behavior online through the use of web browser cookies, online referral marketing provides a high degree of tracking and accountability
Benefits of referral programs A study conducted by the Goethe University Frankfurt and the University of Pennsylvania, on referral programs and customer value which followed the customer referral program of a German bank that paid customers 25 euro for bringing in a new customer, was released in July 2010.According to Professor Van den Bulte, this is the first ever study published on the financial evaluation of customer referral programs. The study found that referred customers were both more profitable and loyal than normal customers. Referred customers had a higher contribution margin, a higher retention rate and were more valuable in both the short and long run. On whether customer referral programs are worth the cost, the study says that it records "a positive value differential, both in the short term and long term, between customers acquired through a referral program and other customers. Importantly, this value differential is larger than the referral fee. Hence, referral programs can indeed pay off. It is quite possible that there is no better, more effective method of advertising than referrals from clients. They have experienced firsthand the value of teaming with a Virtual Assistant, and their respected word and opinion almost instantly propels into a trusted agent status with the associate whom they are sharing the benefits of a VA with.
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Referrals are tremendously powerful and offer any business a chance to grow like no other, but there is one significant caveat. If one does not ask for them (and do so properly), one is never going to be able harness their full potential. Creating a referral program is a great way to do that. Three tips for developing a business building referral program: The incentive should have real value for clients. Now, this doesnt mean that one has to break the bank, but one should offer something that is substantial enough to sincerely reflect ones appreciation for new business directly resulting from their referral.
To make sure that the program should result in new business from both the referred party and the existing client, it is important to focus on both the parts, if the latter part is being ignored then that means one is missing out half of the benefits of the referral process. A good way of doing this is to offer a discount that will be credited towards the referring partys next invoice. This encourages the referring client to continue to find new ways which will be beneficial for the business.
To announce the referral program in a variety of ways. To tell the customers it is a onetime event. Send the customers postcards periodically to remind them of it. To post it on the company website and to mention it in emails and newsletters. Need for Referral Marketing in the Auto Industry A major problem faced by many automobile companies today is in marketing the car sales, maintaining previous year sales figures and to gain more customers instead of losing them. The main objective of the business is to take care and satisfy the existing customers and letting them send new customers through referrals. While a business that is not doing well may have just tried any solution or technique or strategy to improve its current condition but the one problem it may be ignoring is not taking good care of its customers or ignoring the behavior of its customers.
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The base of any business to be successful is to maintain a strong relationship with its customers. At home, we nurture our family and friend relations, and at work we deal with business contacts and co-workers as well. While the world turns around, our lives revolve around our relationships as well. As a basic human need, whoever you are, or whatever you do, whether you are a real estate agent, a care salesman, establishing relationship, though developed by acquired skills and training, is almost second nature. Unfortunately the automobile industry today is not successful when it comes to maintaining relationships with customers. The businesses today lose more contacts faster instead of gaining new ones. According to a survey an average business loses approximately 19% of its customer base every year. In some cases it was estimated to be around 40%, which means out of every 100 customers a business is losing 19-40 of its customers every year. Losses in sales actually means losing customers and the only solution to stop this is to maintain a customer base and to follow up with the customers and keep in touch with them regularly. This gives rise to the creation of a referral program system, through which the firm keeps in touch with the customers and new customers are introduced through the existing customers and in return the customers are provided with benefits for giving referrals. The main benefits a business gets by doing this is:1) A business does not lose its customers;2) The customers bring in more busines How to Beef up business referral system! A business referral system is nothing more than the old-age way of letting the customers know that the business is thinking about them and they appreciate them and would like to remain in contact with them. The traditional way of keeping in touch with customers was through greeting cards or thank you cards. The referral card system is something new. A business sends cards and thank you notes to its clients. A business firm may even send a thank you note to someone who has bought an expensive gift from them a year ago, a firm may send greeting cards to its customers on a regular basis, a business firm may make all these marketing efforts to increase the sale of the business but the major question is that are they doing it in the right way or most effective way?
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Studies in the US on car sales have found out that even the simple effort of saying thank you to customers have made a difference to the sales of these businesses. The studies even found out that more than half of the sales come from repeat customers. Examples of successful referral marketing programs Dropbox - In 2009, Dropbox implemented a referral program to encourage their users to tell their friends about Dropbox. Their referral program had a two-sided incentive for sharing: the person who a sign up for Dropbox through a referral link gets more space than through a normal sign up, and the referrer gets additional space as well. According to Drew Houston, the Co-founder and CEO of Dropbox, at the Startup Lessons Learnt Conference on 23 April 2010, the referral program was inspired by the Paypal Sign up Bonus program. The referral program permanently increased their signups by 60%.
Okabashi - In March 2011, Okabashi, the largest US manufacturer of sandals and flip-flops, implemented their own customer referral program through Referral Candy, a customer referral web app by Anafore. According to a case study released, the referral program became one of their top ten drivers of external traffic, boosting sales within a week of implementation. Referred customers also spent 13.2% more on average compared to regular non-referred customers Case study Referral Campaign Adds 26,000 Customers and Prospects In Six Months
Studies show that two-thirds of all economic activity is influenced by customer recommendations, proving that referrals from friends and associates are the most trusted source of information for those considering buying products or services.
Lear Capital, a Los Angeles-based precious metals company, can attest to the benefits of word of mouth. The company's most recent referral campaign, a $50,000 Refer-A-Friend Sweepstakes, resulted in 26,000 prospects and customers being added to their data base within six months.
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Until a few years ago, Lear Capital did not enjoy such successful referral campaigns, according to Kevin DeMeritt, president. The company had a rewards referral program in place for years but, as the data base of customers and prospects grew, the program was becoming increasingly difficult to manage. Regularly developing and distributing new incentive materials; and tracking, managing, and reporting the resulting referrals was time consuming and costly. Realizing the importance both communicating with customers and managing the results, Lear Capital began using ReferNow.com, an online referral service, to help streamline the process. ReferNow provides the tools and technology platform to create customized referral campaigns, track the results and distribute awards.
Further, ReferNow reports on the referral conversion rates, putting the return on investment of referral business into measurable results. Since they started using ReferNow five years ago business has increased by 9% resulting in the increase in annual revenue.By accelerating the natural referral process, ReferNow.com has proven to be a cost-effective means of increasing client base. Infinity cars privilege customer referral program Objective: Generate referral leads through existing customers. Validity: July 2012-Dec 2012 Offer: Customers filling referral card (fresh lead/case) will be entitled for a dinner voucher/gift voucher worth Rs 2000-3000. For vouchers we can tie up with A) Restaurants 212, worli Punjab grill (palladium) TGIF (palladium) Manchester united caf
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Jewel of India The comedy store (palladium)
B) Gyms and spas JCB spa Golds gym Moksh gym and spa
After the referral turns into a customer, the customer who has given the reference gets a gift voucher worth Rs 25000 from BMW lifestyle items Procedure Step 1:a)During the delivery of the vehicle, the sales consultant explains the customer referral program to the customer.Referral card to be collected from the CRM department and needs to be submitted back to the CRM once filled.The referral card is handed over to the customer asking him to give atleast 5 references of any known relatives or friends for purchasing the vehicle from infinity cars pvt.ltd.b) Sales consultant to call the existing customers to inform them about the referral program and get the card filled which is then submitted to the CRM department.c) Inform the customers about the program in detail.d) Advertise about the referral program. Step 2: Customer to give atleast 5 referrals. Customer to handover the card with details of the referral for claiming the benefit. Sales staff needs to follow up with all 5 referrals in the next 48 hours and give feedback to CRM department. CRM team will do the follow up call to recheck the status of the feedback submitted by the sales person. Step 3: After receiving the card from the customer, consultant needs to check that all the details of the customer and the referral have been filled in the card. CRM department needs to check if all the references given are fresh leads Step 4 On every closure the sales team will need to attach a copy of the and submit it to the CRM team to collect the BMW lifestyle referral card
gift voucher
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Step 5: Marketing team to track the usage of the dinner vouchers and handle payments for the same. On every closure the customer gets a gift voucher worth Rs 25000 from BMW lifestyle items.
Terms and conditions of the referral Program 1. This program is available to infinity car customers only. 2. Infinity cars pvt ltd reserves the right to modify or discontinue this program at anytime without notice. 3. The referring customer will receive acknowledgement of their submission via email. 4. In the event if the referral does not qualify for the reasons listed, the referring individual will receive notification within 7 days via email. 5. You may not refer yourself. 6. You may not refer any person who is already a Infinity customer. 7. In order for the referral to receive their reward, they must provide their name at the time of referral by completing the referral card. 8. Mandatory to give 5 referrals. 9. This program cannot be clubbed with any other offer or promotion. 10. You must have internet access and valid email to be eligible to receive the privileges and benefits of participation in the program. 11. For each successful referral under the Referral program, rewards are not transferable and not redeemable for cash. 12. If infinity cars determines, in its sole discretion, that you have not compiled with these terms and conditions or have otherwise abused the referral program in anyway, it may, in addition to any other rights and remedies it may have against you, immediately and without notice to you, terminate or suspend your participation in the referral program and withdraw all rewards issued to you or to be issued to you. 13. This program cannot be clubbed with any other offer or promotions of infinity cars pvt ltd.
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Referral Card Sample
Referral card sample
Infinity Cars Pvt ltd

Customer Referral Program Customer name:___________________________ Car model:________________________ mobile:________________________ car number:____________________
Details of Referrals Name 1._________________________ 2._________________________ 3._________________________ 4._________________________ 5._________________________ SPECIAL REFERRAL OFFER contact no. _______________________ _______________________ _______________________ ________________________ ________________________
Terms and Conditions 1. This program is available to infinity car customers only. 2. Infinity cars pvt ltd reserves the right to modify or discontinue this program at anytime without notice. 3. The referring customer will receive acknowledgement of their submission via email. 4. In the event if the referral does not qualify for the reasons listed, the referring individual will receive notification within 30 days via email. 5. You may not refer yourself. 6. You may not refer any person who is already a Infinity customer. 7. In order for the referral to receive their reward, they must provide their name at the time of referral by completing the referral card. 8. Mandatory to give 5 referrals. Warmest regards. _________________ (Sales Advisor) ___________________
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Competitor Analysis for BMW
As the Indian economy continues on its growth curve, against all odds, wealth creation is a natural byproduct. And Indian consumers have always been dazzled by big brands, and their correlation to social status so its not surprising that the luxury car market has been growing in leaps and bounds. The Indian consumers new willingness to spend has seen high-end, high-status cars find their way into far more driveways than ever before. Its almost as if theres a competition amongst consumers to see who can sport the bigger, better car. And this has led to another competition, one of greater significance.
With big brands comes fierce and intense competition. Mercedes was the first foreign luxury carmaker in India, and dominated the market for nearly 15 years. Even with the introduction of several other luxury brands in the last four years, Mercedes managed to control over 50% of the market until last year that is, when its compatriots literally stormed in and crashed the party. In 2008, BMW sold 700 cars less than Mercedes, but in 2009 BMW whipped past the
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market leader by selling almost 350 more cars. BMW saw its share of the market increase from 9% in 2006, to a whopping 40% at the end of 2009. In total, BMW sold 3,619 units in 2009 the highest number of luxury cars sold by a single manufacturer in India in a single year, and an increase of almost 25% over the previous year. Mercedes, on the contrary, had a dip in sales of about 10% over the previous year stating a lack of inventory due to the introduction of the new E Class as a reason.
India has been resilient in the face of the global economic meltdown, and this has reinforced the faith that global automakers have invested in this market especially in the case of the German luxury triumvirate. As expected, other luxury brands are entering the market as well. Tatas Jaguar Land Rover are craving for a piece of the action as are, at the absolute stratospheric end of the market, Bentley and Rolls Royce. Each brand is expanding its presence across the country by opening new dealerships, or, in the case of Mercedes, revamping its existing setup. The three-pointed star is in no mood to admit defeat, and has big plans for 2010 with the all-new E Class and GL Class. And, just to be sure, theyve invested Rs. 150 crore in a new state-of-the-art plant in Pune, which is also rolling out the new S 500L, which, at Rs. 1 crore, is the most expensive car ever assembled in India. BMW India has a vast range of artillery themselves, and theyve taken effective steps to ensure a smooth and fast transition to become the luxury segment leader. Their aggressive style, sporty undertones, and immense popularity with the younger generation are certainly some of the reasons for the surge in sales. More importantly, BMWs are meant to be driven perhaps a quality that resonates well with the new age of wealth creators in the country. With the exceptional performance of their models, BMW caters to car lovers and not just status seekers. And with their high performance soul, BMW have cemented their brand recognition into the hearts of many driving enthusiasts and luxury seekers alike. Plus, theyve taken the lead in the luxury SUV segment as well with the X3, X5 and X6, and aim to continue in that vein with the introduction of the entry level X1 later this year. And, of course, theres jaw dropping performance available from the likes of the Z4, not to mention the legendary BMW M cars. But, being the market leader also means that you have to be that much more vigilant. Audi has also captured the hearts of many Indians, as was witnessed at the 10th Auto Expo recently. BMW and Audi were under the same roof, but it was almost impossible to move past the Audi display. Huge crowds cramped and stampeded just to get a glimpse of the Audi
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vehicles. In its market segment, Audi is the true winner when it comes to growth. The brand managed to increase its sales by an impressive 50%. In 2009, Audi sold 1,658 units, as compared to 1,050 units in 2008. You can be sure that Audi will be a strong contender for top honours in the years to come, as the brand draws in more buyers courtesy of its oh-so-sexy designs, its wicked panache, and the technological excellence under the hoods of its cars. But, here comes the shocker. Although the Indian luxury market seems on a roll, its nothing but a micro-dwarfed midget when compared to its neighbour, China. A glance at the sales figures is all it takes to understand exactly why China is a force to be reckoned with. With insurmountable spending power, China is truly every car manufacturers dream market. More importantly, no one can doubt the fact that China has practically single handedly rescued the entire automobile industry during the economic collapse last year. Here is how big their pie is compared to ours BMW India created a record by selling 3,619 units in 2009, while BMW China sold an astounding 90,536 units last year, which is an increase of 38% from last years sales figures!
Mercedes India sold 3,247 units in 2009, while Mercedes China sold 68,500 units and had a sales increase of 77%. But again, Audi comes out as the victor. Audi is the leader in the luxury car market in China, and the VW owned manufacturer from Ingolstadt sold a sky rocketing 158,941 units in 2009, at an increase of 33% compared to 2008. Its not just that China has a stronger economy, and many more millionaires than India, the main reason behind these sales figures is the fact that there are fewer restrictions on foreign imports, both for parts and wholly assembled vehicles in China. The government has taken huge steps to encourage foreign manufacturers, and in some cases they also lowered the required capital investment for new ventures neither do they bombard consumers with huge levies and taxes. Of course, China has a ten-year head start at the very least, and is the third largest luxury goods market on the planet. High end luxury brands have been around far longer in China, while India is still being explored as a luxury market.
All said and done, India is very much an emerging market, and will continue down that road. Only time can tell who will emerge victorious in the race to become market leader in India. Every high-end luxury brand from across the globe is eyeing this market, and with more
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brands dropping into India by the day, competition will only get fiercer meanwhile the Indian consumer can reap the benefits of this healthy brand war. This study covers the marketing and promotional activities of the three main competitors of BMW. 1) Mercedes Benz 2) Audi 3) JLR (Jaguar Land Rover)
1) Mercedes Benz Mercedes is now reorienting its India strategy to target the youth. The company is working on its model line-ups, marketing and brand positioning to keep them aligned. For example, the luxury brand is now increasingly emphasising on performance and sportiness of its brand in India. It is now closely associated with F1 in India. Further, the company has brought in performance cars from its AMG stable to appeal to young Indian buyers. It is planning to invest Rs 350 crore as part of its strategy to introduce new small and compact cars in India by 2015. The company is expected to bring in its B-class, front-wheel-drive small family car sometime around the festival season (October-November) this year. Currently Mercedes' cheapest car is the C-Class. With B-Class hatchbacks, it will lower the entry threshold. The B-Class hatch, owing to its styling and agile contours will be positioned as sports tourer. During the next few years, Mercedes-Benz has planned the introduction of most of its 10 new global cars in India, and for this it is considering assembly of its SUVs ML, GL and GLC-Class here. The company has recognised the need for more compact cars in countries like India and China and assembling them in local markets is considered beneficial. With better localisation of content, they will have a pricing edge over others. On the back of all this, as Indian luxury car market expands, the company is hoping to sell around 55,000-60,000 cars (from current 7,430) by 2020. This is part of the bigger plan for Mercedes to regain its top slot in India.
ATL (Above The Line activities) Mercedes Benz spends a huge amount on advertising in leading news papers, magazines &the internet. Newspaper advertisements of Mercedes Benz For the first and second quarter for the year 2012.
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On an average two advertisements in a week in the Times of India newspaper.A combination of tactical advertisements, brand advertisements and dealership advertisements. An advertisement in the monthly auto car magazine. On the internet, advertisement on social networking sites like facebook and on youtube. Call to Action Advertisements with a quick response code which would attract the customers instantly.
BTL (Below The Line activities) Posters and bill boards in selective areas, communication through direct mail and by courier. Monthly events done at the showroom, customer experience events, showroom events and self events. Events done at leading city malls where it is very easy to attract customer and make contacts with many prospects. Apart from this Mercedes comes up with many different discounts and offers for the customers. Mercedes Benz spends a huge amount on all these activities and promotions.
2) Audi
Audi is a subsidiary of Volkswagen. As a manufacturer of high-quality luxury cars, Audi is one of the worlds leading premium brands. It is represented in 110 countries worldwide and has been selling cars in India since 2004. These were imported into the country by dealers without being homologated. In March 2007, Audi established a formal presence in India with Audi India being a division of Volkswagen Group Sales India Pvt. Ltd. The Audi India strategy encompasses significant investments in branding, marketing, exclusive dealerships and after sales service for the upcoming years. At present, Audi is assembling the Audi A6 and the Audi A4 for the Indian market in Aurangabad. Local production of the Audi A6 started at the end of 2007 and of the Audi A4 in early October 2008. AUDI AG develops and produces luxury cars and sold worldwide a total of 1,003,000 cars in 2008. Audi produces vehicles in Ingolstadt and Neckarsulm (Germany), Gyr (Hungary), Changchun (China) and Brussels (Belgium). The company is active in more than 100 markets
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worldwide. AUDI AGs wholly owned subsidiaries include Automobili Lamborghini Holding S.p.A. in SantAgata Bolognese (Italy) and Quattro GmbH in Neckarsulm. Audi currently employs around 57,000 people worldwide, including 45,000 in Germany. It invests more than 2 billion each year. Audi plans to significantly increase the number of models in its portfolio by 2015 to 40. The Audi brand celebrated its 100th birthday in 2009. Audis vision is to provide experiences, not cars. The company is passionate about what they do. They provide great cars and great after-sales service. They are a team of professionals and have good customer interactions. They want to establish long-term relationships with their buyers. Intends to unseat BMW as the No.1 premium brand in the next 3 years. - Q3 launches to take it to No. 2 slot this year. - Hopes to increase sales by 10 times in 8 years. - Localization and sharing of infrastructure with other VW brands part of overall strategy
ATL (Above the Line activities) Times of India newspaper- In a week three advertisements, one brand advertisement, company advertisement and tactical advertisement. An advertisement in the monthly autocar magazine with offers and new schemes mentioned. Advertisements on the internet on sites like facebook and twitter with special discounts flashing as popups
BTL (Below the Line activities) Various promotional events, showroom events, self events done on a monthly basis. Test-drive events done in various leading city malls where the customer gets a firsthand experience of the car. Posters and billboard put up in various prominent areas of the city where the advertisement is easily noticeable
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3) JLR (Jaguar Land Rover)
After the acquisition of the British Jaguar Land Rover (JLR) business, which also includes the Daimler, Lanchester and Rover brands, Tata Motors became a major player in the international automobile market. On 27 March 2008, Tata Motors reached an agreement with Ford to purchase their Jaguar Land Rover operations for US$2.3 billion. The sale was completed on 2 June 2008.
The key acquisition would be of the intellectual property rights related to the technologies. Under Tata ownership, Jaguar Land Rover has launched new vehicles including the Range Rover Evoque. It will unveil the Jaguar F-Type and next generation Range Rover at the 2012 Paris Motor Show.
After investing huge sums in advertising and marketing programs, companies will often ask new customers how they heard about the firm. But all too often those organizations are likely to hear the stinging words that every marketing executive dreads: "I don't remember." Jaguar Land Rover wanted to put the brakes on its inability to identify which marketing initiatives were gunning its revenue and which weren't. "We were lacking good, solid measurements," says Cathy Ellico, CRM/e-commerce manager at Jaguar Cars and Land Rover. "A lot of our dealers were putting money in advertising and they're assuming that they're getting this return from it. They're basing it on the number of sales that happened during that period."
But this assumption wasn't providing the kind of in-depth analysis that the carmaker wanted. The auto designer and manufacturer enlisted Who's Calling, a customer capture solution provider, to pinpoint exactly which of the advertising dollars were garnering the return. The on-demand service can link individual phone numbers to specific individual ads or campaigns. According to Alexi Venneri, chief marketing and communications officer of Who's Calling, when prospects call one of the Jaguar Land Rover dealerships, Who's Calling records the call and captures the name and address of the callers, then maps where the callers live.
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The dealers can exactly pinpoint that it was this ad in this paper, it's a billboard, or it's a program that's actually getting them the return. It's helping the dealers be much smarter about their advertising budgets."
Take, for instance, Jaguar of Troy, MI, the largest Jag dealer in the country, which uses about 25 to 30 Who's Calling numbers. Its advertising formula incorporates ads in several publications with additional methods like direct mail, the Yellow Pages, and its Web site. "We track [everything] through the Who's Calling phone numbers so at any given time period we can tell where we're getting the best return for our advertising dollars and where we're getting the most calls from," says Molly Padovini, general manager at Jaguar of Troy.
One of the biggest surprises, Padovini says, was that the dealership gets a tremendous amount of phone calls from numbers that are published on its Web site: "That really opened our eyes to how many people are actually using our site and how important that is to us." Additionally, some of the dealers using Who's Calling also use the recorded phone calls as a coaching and counselling tool. "They go back and listen to calls and use that knowledge with the salespeople to improve their performance. Jaguar of Troy receives about 1,000 calls a month through the Who's Calling numbers, which translates into 1,000 potential sales, so properly handling the calls is high priority. As a result of having Who's Calling, the dealership determined it needed more phone training, and in turn, hired a consultant who trains the sales team and some of the service representatives. "It helps guide our sales consultants, because now we're actually able to listen to the phone calls," Padovini says. "And it helps give them some guidance as to things they could do a little bit better." Marketing plan of JLR Target market-Target high net worth individuals, age 30-40 years Target metro cities like Delhi, Mumbai and Bangalore where rich people are located Targeting places like pune and Nagpur also where the population of the rich is on an increase Market segment- luxury car market
Overall marketing strategy- pull strategy, to attract customer to retail showrooms through heavy advertising and promotions. To capture the share of the existing market
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Communication- through traditional and non-traditional media
ATL (Above the line activities) Advertisements in business magazines and auto car magazines, one advertisement in the times of India news paper in a month. Advertisements on the internet on websites like twitter and hotmail.
BTL (Below the line activities) Showroom events and customer experience events only and by this they are getting more and more prospects. Posters and billboards in prominent locations.
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FINDINGS
BMW is still dominant and has a greater market share compared to its competitors.
BMW is aggressive and fast, and its Indian journey proves that. Within four years of its launch, the company unseated Mercedes to become the top-selling luxury car in India, its market share has moved up from 9% in 2006 to 42% in 2011.
Appealing to the younger buyers (average age of a BMW buyer is 40 years), it has introduced a varying product range at different price levels, starting with its cheapest model X1 available at Rs 23.7 lakh. It will further strengthen its portfolio by bringing in its MINI range, a new 3 Series and the new M5 sometime soon. On the back of all this, the country head Andreas Schaff is hoping to make India among the top 10 countries for BMW globally in the next 10 years.
At its Chennai plant, BMW assembles 3, 5 series and X1 while others like X3, X5 are imported as a fully built unit. But with growing sales, it may set up its second plant by 2015. It might also scale up its manufacturing facility from just complete knock-down (CKD) kits. Their local component sourcing, currently low, will rise. Already, they have a global sourcing team here to cater to their global needs and have identified 20 vendors so far. This number should go up in future.
Its marketing strategy has largely been to create touch points like professional golf tournaments, wine tasting sessions and events with fashion designers. Last year they
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organised an Xperience Drive in Gurgaon which brought in international trainers with a live performance by the Australian Raw BANG. A test course, with 10 obstacles, was especially designed to bring out X range's special features.
BMW is growing its dealer network and hopes to touch the 60 mark by 2015. With 80% of its cars being financed by its own financial services arm, BMW financing is a brisk business. Its recently launched used-car business BMW Premium Selection will soon be available across all its dealerships.
BMW VS AUDI
By looking at the first quarter in terms of sale BMW is still ahead of Audi While the front-runners in the luxury segment--BMW and Mercedes-Benz--continue to be close rivals despite very different paths to their destinations, Audi's cars often sit aside, somehow competitive without seeming to care about the race. Perhaps that describes the Audi buyer as well.
Audi's A4, its bread-and-butter model, sitting in the lucrative and popular entry-luxury sedan segment, is understated where the Mercedes-Benz C Class is brash and the BMW 3-Series is bold. The A4's interior is close, but somehow speaks more of an entry-level tailored suit than the high-end off-the-rack offerings from others. Behind the wheel, the A4 is poised, and satisfyingly capable, landing somewhere between plush and focused.
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It's this balance that gives the A4 its charm, and it's that balance that makes it a serious rival to the 3-Series, even though BMW sells many more cars. Under the hood, the base A4 soldiers on with its 2.0T 2.0-liter turbocharged engine--a move made well before BMW's addition of the turbo four in the 328i in the 2012 model. With 211 horsepower and 258 pound-feet of torque, it's closely matched to the 3-Series, though it ultimately comes up 29 horsepower short.
Unlike the 3-Series, however, you won't find a potent six-cylinder in the mid-range; you have to jump all the way up to the S4, where you'll find a 333-horsepower supercharged V-6 engine, an aggressive suspension, and rakish styling that rivals the M3's, though again, the Audi comes up short on power numbers--the M3, still riding on the last-generation chassis, generates 414 horsepower from a 4.0-liter V-8. BMW, on the other hand, offers the 335i, with a turbocharged in-line six-cylinder good for 300 horsepower and 300 pound-feet of torque. The Coupe and Convertible versions of the 3-Series also continue forward on the lastgeneration chassis, but offer the 335is trim, which packs an even more potent 3er.
Also unlike the 3-Series, the A4 is a front-drive-based sedan, with quattro all-wheel-drive available in higher-trim models. While this bias--and its frontward weight bias--ultimately brings it up somewhat short of the 3-Series' ultimate dynamics, the available quattro system makes the A4 as competent as any luxury sedan in foul weather. BMW's xDrive system is available in the 3-Series, but only in a limited range of trim.
Further distancing itself from the 3-Series, the Audi A4 is available as a wagon--or Allroad, as Audi styles it for the latest model year. BMW is reviving its 3-Series wagon but without the more overt styling cues. Front seats are spacious and comfortable in both the 3-Series and the A4, though the latest 3Series sedan grows an inch in wheelbase, dedicating most of that to rear seat space, where it is noticeably roomier than the A4's close quarters, particularly when it comes to leg room. Neither is spacious, however--a classic tradeoff in the segment.
Quality, fit, and finish are very good in both cars, with the new BMW's design among the best in class, though some touches can seem out of character--like the optional nav screen that perches on top of the dash, instead of integrating into it. The A4 is a more seamless piece, with a lush new LCD screen that renders Google Earth and Street View maps in
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gorgeous detail. For most, it will come down to a matter of taste: where the BMW is sometimes drab, sometimes busy, the Audi is sleek and polished, uncluttered and largely intuitive. Creaks, rattles, and other signs of poor build quality are non-existent in the A4.
When it comes to ride quality, both cars err a bit toward the sporty side, showing occasional harshness over rougher surfaces. Some will call it the price they pay for their sharper handling, but others will find the Mercedes-Benz C Class's slightly more plush ride preferable to either.
Both cars also offer a host of advanced technology, with iDrive powering the 3-Series' infotainment and MMI behind Audi's. While both systems are advanced and capable, MMI is slightly more intuitive to most. On the flip side, the A4 makes some items, like Bluetooth, optional upgrades, while they're standard on the 3-Series. The 3-Series also offers an excellent head-up display (HUD) that's just become available on the A4, tying speed, navigation, and other information into a display projected onto the windshield. Audi also has in-car wireless Internet with Audi Connect, which in turn feeds data to that exceptional nav system.
One bit of technology the A4--and S4--come with that we'd rather it didn't is Drive Select, as system that offers adjustable control of the steering, damping, and other characteristics of the car. It comes off as gimmicky, changing feel but not improving the car's communicative aspects or handling in any noticeable way. Finally, the matter of safety. The BMW 3-Series isn't yet rated by the National Highway Traffic Safety Administration (NHTSA) or the Insurance Institute for Highway Safety (IIHS). The A4 has some five-star scores from the NHTSA, but lacks complete scores under this newly updated model.
With the wide range of models and body styles tucked under either nameplate, both the BMW 3-Series and Audi A4 have something to appeal to most luxury buyers. The BMW still has the performance edge that adrenaline junkies seek out consistently, though the Audi Scars aren't far off. But when high-tech gadgets and a purer design are the better lure, it's the Audi lineup that wins.
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BMW VS MERCEDES German automobile manufacturer Mercedes-Benz plans to increase investment in India to Rs.850 crore
by 2014.
The company, which has already spent in excess of Rs.600 crore, plans to invest another Rs.250 crore in its Chakan facility near Pune for local production of a range of products, including sports utility vehicle (SUV) M-Class. Mercedes has, however, fallen behind rivals BMW and Audi in terms of sales, as the other two companies have introduced aggressively priced products.Sales of Mercedes-Benz's cars fell to 1,257 cars behind Audi's 1,908 cars sold during April to June 2012. BMW stayed in the lead with 2,088 units sold. Mercedes-Benz India is adopting a "step-down" strategy to garner market share. It is preparing to launch an all-new B-Class known as the Sports Tourer in September, in a bid to rustle up demand and take on BMW and Audi in a segment that is clearly showing signs of a slowdown. The Sports Tourer would be the most affordable car from the Mercedes stable in the sub- 25 lakh price bracket. The Indian subsidiary of Daimler AG, currently sells its C-Class at 28.56 lakh (ex-showroom Delhi), its cheapest offering in India. Luxury carmakers operating in India are driving a bulk of their sales from entry-level models. For BMW, its lowest priced X1 forms around 30% of its annual sales in 2011 and Audi's cheapest car in India at 26.5 lakh, the recently-launched Q3 compact SUV lakh, has taken the market by storm. The B-Class, which is ranked lower in the premium segment, may provide some robust numbers for Mercedes, after sales in the first quarter for the luxury carmaker dipped 24% to 1,257 cars Mercedes' strategy could work as its gets into the lower end of the market and generate some strong numbers. The B-Class will hit the Indian market in September this year and the biggest Mercedes-Benz advantage will be of not having any direct competition. As its sales wane, Mercedes is expanding its territory to include smaller towns.While metros would be strong on demand, the smaller cities like Indore, Nagpur, Raipur, Surat, Vadodara and Bhubaneswar are generating monthly car sales of 8-10 cars, which is very important in a limited market of 25,000 luxury cars sold in India every year.
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BMW VS JAGUAR
Although jaguar is new in the Indian market itstoo early to compare its sales to the BMW. Tata Motors Ltd.'s TTM +2.52% luxury-car unit, Jaguar Land Rover PLC, said Wednesday it has invested 370 million to upgrade and increase the output of its U.K. manufacturing facilities to cater to growing demand for its vehicles.
The expansion includes opening of a new plant and stepping up production of its Range Rover sport-utility vehicles.
Land Rover has over the past few years become the main money spinner for Tata Motors and has bailed out India's biggest auto maker by sales from the economic slowdown that has hurt vehicle demand worldwide. aguar Land Rover despatched 110,373 vehicles to its dealerships during the April-July period, 36% more from a year earlier. This helped its parent to post total sales growth of 10%.
The company manufactures Land Rover vehicles at facilities in Halewood and Solihul and Jaguar sedans at a plant in Castle Bromwich. It is also setting up a 355 million engine factory near Wolverhampton.
Tata Motors had earlier said it would increase the capital expenditure on the U.K. unit to 2 billion in the financial year through March 2013 from the earlier planned 1.5 billion due to higher demand for its luxury vehicles.
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The company said it has created 1,100 jobs at the Castle Bromwich plant. Also, it has moved to 24-hour production at Halewood to meet demand for the new Range Rover Evoque.
It is spending more than 1.3 billion pounds with suppliers around the world, including 800 million pounds in the U.K. alone.
Jaguar Land Rover has recently introduced a new generation of Range Rover vehicles. It plans to shortly launch the Jaguar XF Sportbrake and a new F-Type sports car range from the Jaguar brand, it said Wednesday.
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CONCLUSION
BMW is one of the prominent luxury car manufacturers in the world today. Sales of all the BMW, Rover, and Land Rover vehicles have been on the rise globally. High-profile image campaigns (such as the James Bond promotion) and the award-winning BMW website (where users can design their own car) continue to increase the popularity of BMW's products. BMW cars typically have a product life cycle of seven years. To keep products in the introductory and growth stages, BMW regularly introduces new models for each of its series to keep the entire series "new."One of the ways BMW is improving its product offering seven further is through its innovative website (www.bmwusa.com). At the site, customers can learn about the particular models, e-mail questions, and request literature or test-drives from their local BMW dealership. What really sets BMW's website apart from other car manufacturers, though, is the ability for customers to configure a car to their own specifications (interior choices, exterior choices, engine, packages, and options) and then transfer that information to their local dealer. In order to maintain its dominant position in the market the company has to continue its innovative marketing tactics and has to invest its time and efforts in R&D in order to continue to dominate the Indian and the world markets and stay ahead of the competition.
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