Study of marketing strategies of bmw
ParvSadh
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Aug 26, 2016
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About This Presentation
This project report contains marketing strategies of bmw automobiles corporation.
Slide Content
1
CHAPTER 1
INTRODUCTION
CHAPTER 1
INTRODUCTION
2
Due to the growing business competition and changing consumer trends, BMW had decided
that the company needs to have a marketing program that is based on the principles of
relationship marketing (RM). The program will be developed mainly to attain and obtain
customers from the Worldwide luxury market. The situational analysis of the company
indicated that the company does have the potential to support the program and its
requirements. Based on the needs of the company and its objective, the RM program will
involve the use of a strategy known as integrated marketing communication (IMC). This will
allow the effective combination of various communication channels to satisfy the needs of
the customers.
Three IMC tools had been included for the program. These include media
promotion, product assistance and customer service hotline. Through these tools, the
company will be able to address its market concerns with stronger customer relations, high
rates of loyalty and better brand equity. The program would have to be monitored in order to
ensure success. For this purpose, performance measurement, with both financial and non-
financial indicators, will be used. Specifically, monthly sales reports, records of repeat orders
and customer feedbacks will be used to monitor the program’s success.
Due to the growing business competition and changing consumer trends, BMW had decided
that the company needs to have a marketing program that is based on the principles of
relationship marketing (RM). The program will be developed mainly to attain and obtain
customers from the Worldwide luxury market. The situational analysis of the company
indicated that the company does have the potential to support the program and its
requirements. Based on the needs of the company and its objective, the RM program will
involve the use of a strategy known as integrated marketing communication (IMC). This will
allow the effective combination of various communication channels to satisfy the needs of
the customers.
Three IMC tools had been included for the program. These include media
promotion, product assistance and customer service hotline. Through these tools, the
company will be able to address its market concerns with stronger customer relations, high
rates of loyalty and better brand equity. The program would have to be monitored in order to
ensure success. For this purpose, performance measurement, with both financial and non-
financial indicators, will be used. Specifically, monthly sales reports, records of repeat orders
and customer feedbacks will be used to monitor the program’s success.
3
CHAPTER 2
OBJECTIVES
CHAPTER 2
OBJECTIVES
4
My objectives for making the project on Marketing Strategies of BMW are -:
Firstly, Toknow the BMW company’s position in the global market.
Secondly, To gain the knowledge of BMW and its different products and companies.
Thirdly, To know the future Sales prospectus of BMW.
Research Objectives
The main objectives behind the study of marketing strategy of BMW are as follows:
i) To understand the 4p’s of BMW.
ii) To know the market share of BMW.
iii) To know the marketing strategy of BMW.
iv) To analyse the sales turnover of BMW.
My objectives for making the project on Marketing Strategies of BMW are -:
Firstly, Toknow the BMW company’s position in the global market.
Secondly, To gain the knowledge of BMW and its different products and companies.
Thirdly, To know the future Sales prospectus of BMW.
Research Objectives
The main objectives behind the study of marketing strategy of BMW are as follows:
i) To understand the 4p’s of BMW.
ii) To know the market share of BMW.
iii) To know the marketing strategy of BMW.
iv) To analyse the sales turnover of BMW.
5
CHAPTER 3
RESEARCH
METHODOLOGY
CHAPTER 3
RESEARCH
METHODOLOGY
6
Research is a way to systematically solve the research problem. Research Methodology has
many dimensions and research methodology is wider than the research methods.
Research Methodology are the procedures used in making systematic observations or
otherwise obtaining data, evidence, or information as part of a research project or study.
Research methodology typically involves a full breakdown of all the options that have been
chosen by a company in order to investigate something. This would include the procedures
and techniques used to perform the research; as well as any of the terminology and
explanations of how these methods will be applied effectively.
However, research methodology is not always pin-point specific. Many areas of research
methodology may simply be referring to a generic path or method that a company will apply
in order to retrieve the information they need.
Research methodology is the way in which researchers specify how they are going to retrieve
the all-important data and information that companies will need to make vital decisions.
Research Design
Research Design refers to “framework or plan for a study that guides the collection and
analysis of data”. A typical research design of a company basically tries to resolve the
following issues:
a) Determining Data Collection Design
b) Determining Data Methods
c) Determining Data Sources
d) Determining Primary Data Collection Methods
e) Developing Questionnaires
f) Determining Sampling Plan
Research is a way to systematically solve the research problem. Research Methodology has
many dimensions and research methodology is wider than the research methods.
Research Methodology are the procedures used in making systematic observations or
otherwise obtaining data, evidence, or information as part of a research project or study.
Research methodology typically involves a full breakdown of all the options that have been
chosen by a company in order to investigate something. This would include the procedures
and techniques used to perform the research; as well as any of the terminology and
explanations of how these methods will be applied effectively.
However, research methodology is not always pin-point specific. Many areas of research
methodology may simply be referring to a generic path or method that a company will apply
in order to retrieve the information they need.
Research methodology is the way in which researchers specify how they are going to retrieve
the all-important data and information that companies will need to make vital decisions.
Research Design
Research Design refers to “framework or plan for a study that guides the collection and
analysis of data”. A typical research design of a company basically tries to resolve the
following issues:
a) Determining Data Collection Design
b) Determining Data Methods
c) Determining Data Sources
d) Determining Primary Data Collection Methods
e) Developing Questionnaires
f) Determining Sampling Plan
7
Research Designs used in the project
This type of result is Descriptive research. Descriptive Research includes surveys and
fact finding enquiries of different kinds. The major purpose of Descriptive Research is
description of the state of affairs, as it exists at present.
Descriptive method includes surveys and fact finding enquiries of different kinds. The main
purpose of the descriptive research is description of the state of affairs as it exists in present.
The main characteristic of this method is that the researcher has no control over the variables;
he can only report what has happened or what is happening. For example, studies on
frequency of shopping, preferences of people etc
Data Collection
Data collection is any process of preparing and collecting data, for example, as part of a
process improvement or similar project.
Data can be collected by two methods:
1) Primary Method
2) Secondary Method
Primary methods
Primary sources are original sources from which the researcher directly collects data that
have not been previously collected, e.g., collection of data directly by the researcher on brand
awareness, brand preference, brand loyalty and other aspects of consumer behaviour from a
sample of consumers by interviewing them.
Secondary methods
Secondary data can be gathered quickly and inexpensively, compared to primary data (data
gathered specifically for the problem at hand). Such data are already available and can be
obtained much faster and at a fraction of the cost of collecting them again.
Research Designs used in the project
This type of result is Descriptive research. Descriptive Research includes surveys and
fact finding enquiries of different kinds. The major purpose of Descriptive Research is
description of the state of affairs, as it exists at present.
Descriptive method includes surveys and fact finding enquiries of different kinds. The main
purpose of the descriptive research is description of the state of affairs as it exists in present.
The main characteristic of this method is that the researcher has no control over the variables;
he can only report what has happened or what is happening. For example, studies on
frequency of shopping, preferences of people etc
Data Collection
Data collection is any process of preparing and collecting data, for example, as part of a
process improvement or similar project.
Data can be collected by two methods:
1) Primary Method
2) Secondary Method
Primary methods
Primary sources are original sources from which the researcher directly collects data that
have not been previously collected, e.g., collection of data directly by the researcher on brand
awareness, brand preference, brand loyalty and other aspects of consumer behaviour from a
sample of consumers by interviewing them.
Secondary methods
Secondary data can be gathered quickly and inexpensively, compared to primary data (data
gathered specifically for the problem at hand). Such data are already available and can be
obtained much faster and at a fraction of the cost of collecting them again.
8
The purpose of data collection is to obtain information to keep on record, to make decisions
about important issues and to pass information on to others. Data are primarily collected to
provide information regarding a specific topic.
MY PROJECT IS BASED ON SECONDARY DATA
Secondary Sources
Secondary Sources are those which provide us with secondary data (collected by someone
other than user). These sources are less accurate and more bias than primary sources.
Secondary Data is collected from:
a) Internet
b) Magazines
c) Journals
d) Newspaper
The purpose of data collection is to obtain information to keep on record, to make decisions
about important issues and to pass information on to others. Data are primarily collected to
provide information regarding a specific topic.
MY PROJECT IS BASED ON SECONDARY DATA
Secondary Sources
Secondary Sources are those which provide us with secondary data (collected by someone
other than user). These sources are less accurate and more bias than primary sources.
Secondary Data is collected from:
a) Internet
b) Magazines
c) Journals
d) Newspaper
9
CHAPTER 4
SECONDARY
DATA
CHAPTER 4
SECONDARY
DATA
10
SCOPE
Since the release of BMW’s official strategy back in September 2007, media sources around
the world have speculated about the carmaker looking to either launch its own new brand or
acquire one to help its expansion.
Instead, BMW established a new environmental think-tank dubbed 'Project i', whose task is to
develop a number of solutions for a vehicle designed for congested city motoring.
The Project-I division runs independently to BMW and has been given until the middle of the
next decade to develop a concrete solution for a possible range of city cars. The urbanized car
for the masses connotation has lead to speculation that the Project i cars will be something
low-end and cheap. Nothing could be further from the truth, according to research and
development boss Dr Ulrich Kranz who revealed to Germany’s Handelsblatt that BMW will
be working on bringing the Project i solutions to market completely in-House.
SCOPE
Since the release of BMW’s official strategy back in September 2007, media sources around
the world have speculated about the carmaker looking to either launch its own new brand or
acquire one to help its expansion.
Instead, BMW established a new environmental think-tank dubbed 'Project i', whose task is to
develop a number of solutions for a vehicle designed for congested city motoring.
The Project-I division runs independently to BMW and has been given until the middle of the
next decade to develop a concrete solution for a possible range of city cars. The urbanized car
for the masses connotation has lead to speculation that the Project i cars will be something
low-end and cheap. Nothing could be further from the truth, according to research and
development boss Dr Ulrich Kranz who revealed to Germany’s Handelsblatt that BMW will
be working on bringing the Project i solutions to market completely in-House.
11
AUTOMOBILE INDUSTRY PROFILE
The history of the automobile begins as early as 1769, with the creation of steam-
poweredautomobiles capable of humantransport. In 1806, the first cars powered by internal
combustion engines running on fuel gas appeared, which led to the introduction in 1885 of
the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered
by electricity briefly appeared at the turn of the 20th century but largely disappeared from
commonality until the turn of the 21st century, when interest in low- and zero-emissions
transportation was reignited. As such, the early history of the automobile can be divided into
a number of eras based on the prevalent method of automotive propulsion during that time.
Later periods were defined by trends in exterior styling and size and utility preferences
GermanengineerKarl Benz, inventor of numerous car-related technologies, is generally
regarded as the inventor of the modern automobile. The four-strokepetrol (gasoline) internal
combustion engine that constitutes the most prevalent form of modern automotive propulsion
is a creation of German inventor Nikolaus Otto. The similar four-stroke diesel engine was
also invented by a German, Rudolf Diesel. The hydrogen fuel cell, one of the technologies
hailed as a replacement for gasoline as an energy source for cars, was discovered in principle
by yet another German, Christian Friedrich Schönbein, in 1838. The battery electric car owes
AUTOMOBILE INDUSTRY PROFILE
The history of the automobile begins as early as 1769, with the creation of steam-
poweredautomobiles capable of humantransport. In 1806, the first cars powered by internal
combustion engines running on fuel gas appeared, which led to the introduction in 1885 of
the ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered
by electricity briefly appeared at the turn of the 20th century but largely disappeared from
commonality until the turn of the 21st century, when interest in low- and zero-emissions
transportation was reignited. As such, the early history of the automobile can be divided into
a number of eras based on the prevalent method of automotive propulsion during that time.
Later periods were defined by trends in exterior styling and size and utility preferences
GermanengineerKarl Benz, inventor of numerous car-related technologies, is generally
regarded as the inventor of the modern automobile. The four-strokepetrol (gasoline) internal
combustion engine that constitutes the most prevalent form of modern automotive propulsion
is a creation of German inventor Nikolaus Otto. The similar four-stroke diesel engine was
also invented by a German, Rudolf Diesel. The hydrogen fuel cell, one of the technologies
hailed as a replacement for gasoline as an energy source for cars, was discovered in principle
by yet another German, Christian Friedrich Schönbein, in 1838. The battery electric car owes
12
its beginnings to Hungarian ÁnyosJedlik, one of the inventors of the electric motor, and
Gaston Planté, who invented the lead-acid battery in 1859.
Automobile Industry in India
The first motor car on the streets of India was seen in 1898. Mumbai had its first taxicabs in
the early 1900. Then for the next fifty years, cars were imported to satisfy domestic demand.
Between 1910 and 20's the automobile industry made a humble beginning by setting up
assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew
consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile
Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling
'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started
as a manufacturer of auto components graduated to manufacture cars in 1949.
In the early 80's, a series of liberal policy changes were announced marking another turning
point for the automobile industry. The GOI entered the car business, with a 74% stake in
Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan.
MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian car industry.
The car was launched as a "peoples car" with a price tag of Rs40,000. This changed the
industry's profile dramatically.
The de-licensing of auto industry in 1993 opened the gates to a virtual flood of international
auto makers into the country with an idea to tap the large population base of 950mn people.
Also the lifting of quantitative restrictions on imports by the recent policy is expected to add
up to the flurry of foreign cars in to the country.
Many companies have entered the car manufacturing sector, to tap the middle and premium
end of car industry. The new entrants are Daewoo (Matiz), Telco (Indica) and Hyundai
(Santro) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi, Honda and
Fiat have entered the mid-sized car segment and Mercedes-Benz is in the premium end of
market.
its beginnings to Hungarian ÁnyosJedlik, one of the inventors of the electric motor, and
Gaston Planté, who invented the lead-acid battery in 1859.
Automobile Industry in India
The first motor car on the streets of India was seen in 1898. Mumbai had its first taxicabs in
the early 1900. Then for the next fifty years, cars were imported to satisfy domestic demand.
Between 1910 and 20's the automobile industry made a humble beginning by setting up
assembly plants in Mumbai, Calcutta and Chennai. The import/assembly of vehicles grew
consistently after the 1920's, crossing the 30,000 mark in 1930. In 1946, Premier Automobile
Ltd (PAL) earned the distinction of manufacturing the first car in the country by assembling
'Dodge DeSoto' and 'Plymouth' cars at its Kurla plant. Hindustan Motors (HM), which started
as a manufacturer of auto components graduated to manufacture cars in 1949.
In the early 80's, a series of liberal policy changes were announced marking another turning
point for the automobile industry. The GOI entered the car business, with a 74% stake in
Maruti Udyog Ltd (MUL), the joint venture with Suzuki Motors Ltd of Japan.
MUL introduced 'Maruti 800' in 1983 providing a complete facelift to the Indian car industry.
The car was launched as a "peoples car" with a price tag of Rs40,000. This changed the
industry's profile dramatically.
The de-licensing of auto industry in 1993 opened the gates to a virtual flood of international
auto makers into the country with an idea to tap the large population base of 950mn people.
Also the lifting of quantitative restrictions on imports by the recent policy is expected to add
up to the flurry of foreign cars in to the country.
Many companies have entered the car manufacturing sector, to tap the middle and premium
end of car industry. The new entrants are Daewoo (Matiz), Telco (Indica) and Hyundai
(Santro) in upper end of economy car market. GM, Ford, Peugeot, Mitsubishi, Honda and
Fiat have entered the mid-sized car segment and Mercedes-Benz is in the premium end of
market.
13
BMW - BayerischeMotorenWerkeAG, Bavarian Motor Works (English)
BMW is a German automobile and motorcycle manufacturing company found in 1916, it is
known for its performance and luxury vehicles. It owns and produces the MINI brand, and is
the parent company of Rolls-Royce Motor Cars.
THE BMW GROUP
With the three brands, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its
sights set firmly on the premium sector of the international automobile market. To achieve its
aims, the company knows how to deploy its strengths with an efficiency that is unmatched in
the automotive industry. From research and development to sales and marketing, BMW
Group is committed to the very highest in quality for all its products and services.
BMW - BayerischeMotorenWerkeAG, Bavarian Motor Works (English)
BMW is a German automobile and motorcycle manufacturing company found in 1916, it is
known for its performance and luxury vehicles. It owns and produces the MINI brand, and is
the parent company of Rolls-Royce Motor Cars.
THE BMW GROUP
With the three brands, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its
sights set firmly on the premium sector of the international automobile market. To achieve its
aims, the company knows how to deploy its strengths with an efficiency that is unmatched in
the automotive industry. From research and development to sales and marketing, BMW
Group is committed to the very highest in quality for all its products and services.
14
Preface by The Chairman of the Board Of Management
Ladies and Gentlemen
The BMW Group achieved positive group earnings for the 2009 financial year, despite the
global economic crisis. The company remains the automobile industry’s leading premium
manufacturer. More than 1.28 million customers purchased a BMW, MINI or Rolls-
Roycelast year, and over 87,000 customers bought a BMW motorcycle. Sales benefited only
Preface by The Chairman of the Board Of Management
Ladies and Gentlemen
The BMW Group achieved positive group earnings for the 2009 financial year, despite the
global economic crisis. The company remains the automobile industry’s leading premium
manufacturer. More than 1.28 million customers purchased a BMW, MINI or Rolls-
Roycelast year, and over 87,000 customers bought a BMW motorcycle. Sales benefited only
15
marginally from the national stimulus programmers initiated in many countries, such as the
scrap page bonus scheme in Germany.
Our accomplishments in 2009 were realized as an independent company. We continue to
chart our own course with courage and determination – and with a clear view to the future.
The image section illustrates how we are translating the four pillars of our Strategy Number
ONE – Future, Growth, Customers and Profitability – into action. It also cites many
examples of how we are conserving resources and gradually realizing sustainable mobility.
Ultimately, companies and products are made by people. Here you can learn about the people
behind our products: Who are the men and women who make up the BMW Group? Above
all, you will have the opportunity to get to know our customers. Who buys our vehicles, and
why? What does their BMW, MINI or Rolls-Royce mean to them?
2009 – Crisis management and innovative projects for the future. Two factors
determined our actions as a company in 2009: active crisis management and innovative
future projects. We acted quickly and decisively in response to the economic crisis: Vehicle
inventories were reduced; fixed costs were substantially trimmed across all divisions; and
several plants temporarily implemented short-time working. We also took steps to secure
sufficient liquidity
We were capable of operating effectively throughout and were able to refinance at relatively
favorable rates on the capital markets at all times.
Parallel to these short-term measures, we also set the course for the successful development
of the BMW Group over the next few years – something I believe is crucial. We invested in
projects for the future and our sites, in particular in Germany, the US, China and India. Our
involvement in India is one of the focal points of this report. Our Strategy Number ONE lays
the foundation and sets out a vision that unites everyone at the BMW Group: to be the
leading provider of premium products and premium services for individual mobility in the
year 2020.
This makes it quite clear that premium is, and will continue to be, our business model. The
concept of “premium” is changing, just as society and people’s lifestyles are changing. To
marginally from the national stimulus programmers initiated in many countries, such as the
scrap page bonus scheme in Germany.
Our accomplishments in 2009 were realized as an independent company. We continue to
chart our own course with courage and determination – and with a clear view to the future.
The image section illustrates how we are translating the four pillars of our Strategy Number
ONE – Future, Growth, Customers and Profitability – into action. It also cites many
examples of how we are conserving resources and gradually realizing sustainable mobility.
Ultimately, companies and products are made by people. Here you can learn about the people
behind our products: Who are the men and women who make up the BMW Group? Above
all, you will have the opportunity to get to know our customers. Who buys our vehicles, and
why? What does their BMW, MINI or Rolls-Royce mean to them?
2009 – Crisis management and innovative projects for the future. Two factors
determined our actions as a company in 2009: active crisis management and innovative
future projects. We acted quickly and decisively in response to the economic crisis: Vehicle
inventories were reduced; fixed costs were substantially trimmed across all divisions; and
several plants temporarily implemented short-time working. We also took steps to secure
sufficient liquidity
We were capable of operating effectively throughout and were able to refinance at relatively
favorable rates on the capital markets at all times.
Parallel to these short-term measures, we also set the course for the successful development
of the BMW Group over the next few years – something I believe is crucial. We invested in
projects for the future and our sites, in particular in Germany, the US, China and India. Our
involvement in India is one of the focal points of this report. Our Strategy Number ONE lays
the foundation and sets out a vision that unites everyone at the BMW Group: to be the
leading provider of premium products and premium services for individual mobility in the
year 2020.
This makes it quite clear that premium is, and will continue to be, our business model. The
concept of “premium” is changing, just as society and people’s lifestyles are changing. To
16
give an example: People still want to be mobile as individuals – and there is a rising demand
for mobility, especially in growth markets such as China and India. But people all over the
world are becoming more interested in how efficient their vehicle is.
Our Efficient Dynamics measures have drastically reduced fuel consumption and CO2
emissions across our entire fleet. Would you ever have believed that BMW could be the
world’s most environmentally friendly premium brand? Or that the average fleet
consumption of the BMW and MINI fleets could be lower than that of the mass
manufacturers – even though they offer much better performance? The statistics of the
German Federal Motor Transport Authority are unequivocal: Average CO2 emissions for
new BMW and MINI vehicles registered in Germany in 2009 were no more than 156 grams
of CO2 per kilometer. That represents an average fuel consumption of 5.9 liters per 100
kilometers.
We will continue to push ahead with Efficient Dynamics
For the BMW Group, the year 2010 will largely be defined by the new BMW 5 Series. I
personally believe that the new BMW 5 Series is one of the best cars we have ever built.
Currently, the vehicle with the best fuel economy and lowest emissions in the BMW model
range is the 320d Efficient Dynamics Edition. Customers will be able to experience its sheer
driving pleasure with a fuel consumption of just 4.1 liters per 100 kilometers and 109 grams
of CO2 per kilometer from spring 2010 onwards. We showcased everything that Efficient
Dynamics still has to offer at the 2009 IAA International Motor Show within our BMW
Vision Efficient Dynamics. This concept car rightly attracted a great deal of attention – not
just for its futuristic design, but also for its innovative drive train, comprising a 3-cylinder
turbo diesel engine with two electric motors mounted on both axles. Consequently, this
thoroughly sporty vehicle consumes an average of just 3.76 liters per 100 kilometers. This
technical masterpiece is highlighted further in detail.
New drive technologies: hybridization and electrification
We also believe premium means offering our customers new technical solutions. The first
two BMW models with hybrid drive will become available in 2010. Our worldwide MINI E
customer test has so far been a resounding success. There are about 600 MINI cars with
give an example: People still want to be mobile as individuals – and there is a rising demand
for mobility, especially in growth markets such as China and India. But people all over the
world are becoming more interested in how efficient their vehicle is.
Our Efficient Dynamics measures have drastically reduced fuel consumption and CO2
emissions across our entire fleet. Would you ever have believed that BMW could be the
world’s most environmentally friendly premium brand? Or that the average fleet
consumption of the BMW and MINI fleets could be lower than that of the mass
manufacturers – even though they offer much better performance? The statistics of the
German Federal Motor Transport Authority are unequivocal: Average CO2 emissions for
new BMW and MINI vehicles registered in Germany in 2009 were no more than 156 grams
of CO2 per kilometer. That represents an average fuel consumption of 5.9 liters per 100
kilometers.
We will continue to push ahead with Efficient Dynamics
For the BMW Group, the year 2010 will largely be defined by the new BMW 5 Series. I
personally believe that the new BMW 5 Series is one of the best cars we have ever built.
Currently, the vehicle with the best fuel economy and lowest emissions in the BMW model
range is the 320d Efficient Dynamics Edition. Customers will be able to experience its sheer
driving pleasure with a fuel consumption of just 4.1 liters per 100 kilometers and 109 grams
of CO2 per kilometer from spring 2010 onwards. We showcased everything that Efficient
Dynamics still has to offer at the 2009 IAA International Motor Show within our BMW
Vision Efficient Dynamics. This concept car rightly attracted a great deal of attention – not
just for its futuristic design, but also for its innovative drive train, comprising a 3-cylinder
turbo diesel engine with two electric motors mounted on both axles. Consequently, this
thoroughly sporty vehicle consumes an average of just 3.76 liters per 100 kilometers. This
technical masterpiece is highlighted further in detail.
New drive technologies: hybridization and electrification
We also believe premium means offering our customers new technical solutions. The first
two BMW models with hybrid drive will become available in 2010. Our worldwide MINI E
customer test has so far been a resounding success. There are about 600 MINI cars with
17
electric drives currently on the roads. No other electric car has clocked as many kilometers
and as many miles as the MINI E. Our customers think it is terrific. They are helping us learn
how e-mobility can succeed in everyday situations. We also presented the first BMW with
electric drive, and will be releasing a further trial fleet of electric vehicles based on the BMW
Concept ActiveE concept car to customers next year.
All of the experience we gain will be incorporated into our Megacity Vehicle. This is much
more than just a highly innovative car. We aim to completely redefine how cars are built –
with regard to vehicle architecture, lightweight construction and use of materials – to create a
sustainable value chain
No automobile manufacturer uses resources more efficiently.
Everybody is talking about sustainability – when action is what is needed. We believe our
vehicles should also be produced in an environmentally responsible manner. In September
2009, the Dow Jones Sustainability Index named the BMW Group as the leading company in
the automobile sector for the fifth consecutive year. For us this is both an incentive and an
obligation.We are committed to sustainability in all areas
That is why we decided to send a clear signal and withdraw from Formula One at the end of
the 2009 season – although it was not an easy decision after ten years of successfully
competing at the highest level in motorsports
New directions with Strategy Number ONE.
We are taking a new direction with our Strategy Number ONE. The small car segment
represents a source of growth opportunities, and we will therefore be offering premium
products for these customers. Collaboration with others will also allow us to achieve
economies of scale. We will continue to rely on strategic partnerships with the best partners
for the task at hand. What is more, increased use of shared modules between models and
brands will enable us to further reduce costs throughout the entire process chain, but still
maintain our high quality
Our industry is currently in a period of tremendous upheaval and technological change. The
economic crisis has further accelerated this trend. In order to be successful in the
electric drives currently on the roads. No other electric car has clocked as many kilometers
and as many miles as the MINI E. Our customers think it is terrific. They are helping us learn
how e-mobility can succeed in everyday situations. We also presented the first BMW with
electric drive, and will be releasing a further trial fleet of electric vehicles based on the BMW
Concept ActiveE concept car to customers next year.
All of the experience we gain will be incorporated into our Megacity Vehicle. This is much
more than just a highly innovative car. We aim to completely redefine how cars are built –
with regard to vehicle architecture, lightweight construction and use of materials – to create a
sustainable value chain
No automobile manufacturer uses resources more efficiently.
Everybody is talking about sustainability – when action is what is needed. We believe our
vehicles should also be produced in an environmentally responsible manner. In September
2009, the Dow Jones Sustainability Index named the BMW Group as the leading company in
the automobile sector for the fifth consecutive year. For us this is both an incentive and an
obligation.We are committed to sustainability in all areas
That is why we decided to send a clear signal and withdraw from Formula One at the end of
the 2009 season – although it was not an easy decision after ten years of successfully
competing at the highest level in motorsports
New directions with Strategy Number ONE.
We are taking a new direction with our Strategy Number ONE. The small car segment
represents a source of growth opportunities, and we will therefore be offering premium
products for these customers. Collaboration with others will also allow us to achieve
economies of scale. We will continue to rely on strategic partnerships with the best partners
for the task at hand. What is more, increased use of shared modules between models and
brands will enable us to further reduce costs throughout the entire process chain, but still
maintain our high quality
Our industry is currently in a period of tremendous upheaval and technological change. The
economic crisis has further accelerated this trend. In order to be successful in the
18
marketplace, companies must find the right answers to the challenges of tomorrow. Our ideas
and actions are geared towards the long term. Our strategy provides us with the plan for
shaping our own future
We achieved a great deal in 2009. I would like to thank every single one of our 96,230
employees for their outstanding personal dedication. I would also like to thank our customers
for their confidence in our products and our company, as well as our entire retail network.
We have also continued to work productively with our suppliers. Last but not least, I would
like to thank our shareholders and investors for their commitment to the BMW Group –
particularly in these times of economic crisis.
The effects of the economic crisis will continue to be felt in 2010. However, we are
cautiously optimistic that we will be able to resume our growth path this year.
We believe in the future of individual mobility – and we are already creating it.
Norbert Reithofer
Chairman of the Board of Management
COMPANY HISTORY
Era Of Aircrafts (1918) “The First Flight”
After World War I, BMW were forced to cease aircraft (engine) production by the terms of
the Versailles Armistice Treaty. The company consequently shifted to motorcycle production
in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in
1928.
marketplace, companies must find the right answers to the challenges of tomorrow. Our ideas
and actions are geared towards the long term. Our strategy provides us with the plan for
shaping our own future
We achieved a great deal in 2009. I would like to thank every single one of our 96,230
employees for their outstanding personal dedication. I would also like to thank our customers
for their confidence in our products and our company, as well as our entire retail network.
We have also continued to work productively with our suppliers. Last but not least, I would
like to thank our shareholders and investors for their commitment to the BMW Group –
particularly in these times of economic crisis.
The effects of the economic crisis will continue to be felt in 2010. However, we are
cautiously optimistic that we will be able to resume our growth path this year.
We believe in the future of individual mobility – and we are already creating it.
Norbert Reithofer
Chairman of the Board of Management
COMPANY HISTORY
Era Of Aircrafts (1918) “The First Flight”
After World War I, BMW were forced to cease aircraft (engine) production by the terms of
the Versailles Armistice Treaty. The company consequently shifted to motorcycle production
in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in
1928.
19
The circular blue and white BMW logo or roundel is often alleged to portray the movement
of an airplane propeller, to signify the white blades cutting through the blue sky - an
interpretation that BMW adopted for convenience in 1929, which was actually twelve years
after the roundel was created.
Era Of Motorcycle (1923):-“Face The Power, The Ride Is On”
BMW began building motorcycle engines and then motorcycles after World War I. Its
motorcycle division is now known as BMW Motorrad. Their first successful motorcycle,
after the failed Helios and Flink, was the "R32" in 1923. Many BMWs are still produced in
this layout, which is designated the R Series.
The circular blue and white BMW logo or roundel is often alleged to portray the movement
of an airplane propeller, to signify the white blades cutting through the blue sky - an
interpretation that BMW adopted for convenience in 1929, which was actually twelve years
after the roundel was created.
Era Of Motorcycle (1923):-“Face The Power, The Ride Is On”
BMW began building motorcycle engines and then motorcycles after World War I. Its
motorcycle division is now known as BMW Motorrad. Their first successful motorcycle,
after the failed Helios and Flink, was the "R32" in 1923. Many BMWs are still produced in
this layout, which is designated the R Series.
20
In 1983 came the K Series affectionately known as "The Flying Brick", shaft drive but
water-cooled and with either 3 or 4 cylinders mounted in a straight line from front to back. In
the early 1990s, BMW updated the airhead Boxer engine which became known as the oil
head.
In 2004, BMW introduced the new K1200S Sports Bike which marked a departure for BMW.
It is both powerful and significantly lighter than previous K models. Innovations include a
unique electronically adjustable front and rear suspension and a Hossack-type front fork
BMW call Duo lever
Era Of Automobiles ( 1928) :-”The Ultimate Driving Machine”
The New Class was a line of compact sedans and coupes starting with the 1962 1500 and
continuing through the last 2002s in 1977.
In 1983 came the K Series affectionately known as "The Flying Brick", shaft drive but
water-cooled and with either 3 or 4 cylinders mounted in a straight line from front to back. In
the early 1990s, BMW updated the airhead Boxer engine which became known as the oil
head.
In 2004, BMW introduced the new K1200S Sports Bike which marked a departure for BMW.
It is both powerful and significantly lighter than previous K models. Innovations include a
unique electronically adjustable front and rear suspension and a Hossack-type front fork
BMW call Duo lever
Era Of Automobiles ( 1928) :-”The Ultimate Driving Machine”
The New Class was a line of compact sedans and coupes starting with the 1962 1500 and
continuing through the last 2002s in 1977.
21
Powered by BMW's celebrated four-cylinder M10 engine, the New Class models featured a
fully independent suspension, Macpherson struts in front, and front disc brakes. Initially a
family of four-door sedans and two-door coupes, the New Class line was broadened to two-
door sports sedans with the addition of the 02 Series 1600 and 2002 in 1966.
Sharing little in common with the rest the line beyond power train, the sporty siblings caught
auto enthusiasts' attention and established BMW as an international brand. Precursors to the
famed BMW 3 Series, the two-doors' success cemented the firm's future as an upper tier
performance car maker.
New Class four-doors with numbers ending in "0" were replaced by the larger BMW 5
Series in 1972. The upscale 2000C and 2000CS coupes were replaced by the six-
cylinder BMW E9, introduced in 1969 with the 2800CS. The 1600 two-door was
discontinued in 1975, the 2002 replaced by the 320i in 1975.
The Automobile Industry Stats
BMW and the five major companies in 2008-09
Company No of vehicles (m) Euro(b)
Powered by BMW's celebrated four-cylinder M10 engine, the New Class models featured a
fully independent suspension, Macpherson struts in front, and front disc brakes. Initially a
family of four-door sedans and two-door coupes, the New Class line was broadened to two-
door sports sedans with the addition of the 02 Series 1600 and 2002 in 1966.
Sharing little in common with the rest the line beyond power train, the sporty siblings caught
auto enthusiasts' attention and established BMW as an international brand. Precursors to the
famed BMW 3 Series, the two-doors' success cemented the firm's future as an upper tier
performance car maker.
New Class four-doors with numbers ending in "0" were replaced by the larger BMW 5
Series in 1972. The upscale 2000C and 2000CS coupes were replaced by the six-
cylinder BMW E9, introduced in 1969 with the 2800CS. The 1600 two-door was
discontinued in 1975, the 2002 replaced by the 320i in 1975.
The Automobile Industry Stats
BMW and the five major companies in 2008-09
Company No of vehicles (m) Euro(b)
22
General Motors 8.5 157.19
Ford 6.7 116.47
Daimler-Chrysler 3.85 144.65
Toyota 6.25 125.30
Volkswagen 5.02 87.15
BMW Group 1.12 41.52
COMPETITORS IN MARKET
BMW BIRDS (PRODUCTS)
1 Series
The 1 Series was launched globally in autumn 2004 and shares many structural, chassis,
power train, hardware and electronic elements with the larger 3 Series. The model was started
to provide a lower point of entry into the BMW range as the 3 Series moved gradually up-
market. The 1 Series coupe and convertible went on sale in the United States in model
year 2008 as the 128i and the 135i.
General Motors 8.5 157.19
Ford 6.7 116.47
Daimler-Chrysler 3.85 144.65
Toyota 6.25 125.30
Volkswagen 5.02 87.15
BMW Group 1.12 41.52
COMPETITORS IN MARKET
BMW BIRDS (PRODUCTS)
1 Series
The 1 Series was launched globally in autumn 2004 and shares many structural, chassis,
power train, hardware and electronic elements with the larger 3 Series. The model was started
to provide a lower point of entry into the BMW range as the 3 Series moved gradually up-
market. The 1 Series coupe and convertible went on sale in the United States in model
year 2008 as the 128i and the 135i.
23
BMW 1 Series 5-door
BMW 1 Series Coupe
BMW 1 Series Coupe
3 Series
The BMW 3 Series is an executive car manufactured since model year 1975. The 3 Series is
currently in its fifth generation, the E90 Current models include the sport sedan (E90), station
wagon (E91), coupe (E92), and convertible (E93). It offers luxury. The 3 series is one of
BMW's most important models, as it accounts for a majority of its worldwide sales.
2007 3-Series Coupe
2006 3-Series Touring
2006 3-Series Sedan
BMW E46 Generation
with ZHP
Performance
5 Series
The M5 is the Motorsport division's version of the 5 Series. The new M5 is powered by
a F1-inspired V10 engine, producing 507 hp (378 kW) and is mated with a 7-speed sequential
manual gearbox (SMG) transmission, which is capable of a top speed of about 330 km/h
(production variants are restricted to 250 km/h, or 155 mph).
2005 5 Series with M
Sport Package
2007 5-Series Touring
with M Sport Package
2007 M5
E39 BMW M5
Sedan
7 Series
BMW 1 Series 5-door
BMW 1 Series Coupe
BMW 1 Series Coupe
3 Series
The BMW 3 Series is an executive car manufactured since model year 1975. The 3 Series is
currently in its fifth generation, the E90 Current models include the sport sedan (E90), station
wagon (E91), coupe (E92), and convertible (E93). It offers luxury. The 3 series is one of
BMW's most important models, as it accounts for a majority of its worldwide sales.
2007 3-Series Coupe
2006 3-Series Touring
2006 3-Series Sedan
BMW E46 Generation
with ZHP
Performance
5 Series
The M5 is the Motorsport division's version of the 5 Series. The new M5 is powered by
a F1-inspired V10 engine, producing 507 hp (378 kW) and is mated with a 7-speed sequential
manual gearbox (SMG) transmission, which is capable of a top speed of about 330 km/h
(production variants are restricted to 250 km/h, or 155 mph).
2005 5 Series with M
Sport Package
2007 5-Series Touring
with M Sport Package
2007 M5
E39 BMW M5
Sedan
7 Series
24
BMW 7-Series (F01)
BMW's full-size flagship executive sedan. Typically, BMW introduces many of their
innovations first in the 7 Series. For example, the somewhat controversial iDrive system
debuted in the 7 Series. The 7 Series Hydrogen, featuring one of the world's
first hydrogen fuelled combustion engines, is fuelled by liquid hydrogen and emits only water
vapour. The V12 engine also runs on gasoline. Numerous engines power the 7 Series
worldwide. BMW offers diesel, straight 6, V8 and V12 motors, as well as the Alpinatuned
supercharged V8.
X SERIES SUVS
X1
The BMW X1 is a compact luxury crossover SUV developed by BMW, and manufactured
by BMW and BMW Brilliance, and marketed worldwide in rear-wheel (sDrive) and all-
wheel-drive (xDrive) configurations. Production followed the debut of a concept version at
the 2008 Paris Motor Show with series manufacture beginning at the BMW Leipzig plant in
October 2009. The sDrive28i and xDrive28i models will offer a 2.0L, 241 horsepower
turbocharged inline four-cylinder (I4) engine, and the xDrive35i model will offer a 3.0L, 300
horsepower single turbocharged inline six-cylinder (I6) engine.
BMW 7-Series (F01)
BMW's full-size flagship executive sedan. Typically, BMW introduces many of their
innovations first in the 7 Series. For example, the somewhat controversial iDrive system
debuted in the 7 Series. The 7 Series Hydrogen, featuring one of the world's
first hydrogen fuelled combustion engines, is fuelled by liquid hydrogen and emits only water
vapour. The V12 engine also runs on gasoline. Numerous engines power the 7 Series
worldwide. BMW offers diesel, straight 6, V8 and V12 motors, as well as the Alpinatuned
supercharged V8.
X SERIES SUVS
X1
The BMW X1 is a compact luxury crossover SUV developed by BMW, and manufactured
by BMW and BMW Brilliance, and marketed worldwide in rear-wheel (sDrive) and all-
wheel-drive (xDrive) configurations. Production followed the debut of a concept version at
the 2008 Paris Motor Show with series manufacture beginning at the BMW Leipzig plant in
October 2009. The sDrive28i and xDrive28i models will offer a 2.0L, 241 horsepower
turbocharged inline four-cylinder (I4) engine, and the xDrive35i model will offer a 3.0L, 300
horsepower single turbocharged inline six-cylinder (I6) engine.
25
X3
BMW X3 (current generation)
BMW's second crossover SUV debuted in November 2003 as a Model Year 2004 (called
SAV or Sports Activity Vehicle by BMW) and is based on the E46/16 3 Series platform. For
2007, the X3 is powered by the N52 inline 6 cylinder engine that debuted on the 2006 E90 3
Series. In 2007 a face lift was given to the X3, including an X-drive update, suspension
adjustments, an engine upgrade, and aesthetics inside and out.
X5
The BMW X5 M is a high-performance derivative of the X5. It was introduced to the press at
the New York Auto Show in April 2009, and started appearing in BMW dealerships in
September 2009. The M offers the V8 M TwinPower Turbo, a twin-turbocharged 4.4-liter V8
delivering 555 bhp (414 kW; 563 PS) at 5,750 rpm and peak torque is 501 lb·ft (679 N·m),
available between 1,500 and 5,650 rpm
Z Series
Z4
A 2-seater roadster and coupe which succeeded the Z3. From 2006 the Z4 Roadster is
available as a 3.0i (3.0 L I6 with 215 hp), a 3.0si available with the new generation 3.0 L I6
with 255 hp (190 kW), a 2.5si with a 2.5 I6 with 218 bhp (163 kW) or a 2.0i with a 150 bhp
X3
BMW X3 (current generation)
BMW's second crossover SUV debuted in November 2003 as a Model Year 2004 (called
SAV or Sports Activity Vehicle by BMW) and is based on the E46/16 3 Series platform. For
2007, the X3 is powered by the N52 inline 6 cylinder engine that debuted on the 2006 E90 3
Series. In 2007 a face lift was given to the X3, including an X-drive update, suspension
adjustments, an engine upgrade, and aesthetics inside and out.
X5
The BMW X5 M is a high-performance derivative of the X5. It was introduced to the press at
the New York Auto Show in April 2009, and started appearing in BMW dealerships in
September 2009. The M offers the V8 M TwinPower Turbo, a twin-turbocharged 4.4-liter V8
delivering 555 bhp (414 kW; 563 PS) at 5,750 rpm and peak torque is 501 lb·ft (679 N·m),
available between 1,500 and 5,650 rpm
Z Series
Z4
A 2-seater roadster and coupe which succeeded the Z3. From 2006 the Z4 Roadster is
available as a 3.0i (3.0 L I6 with 215 hp), a 3.0si available with the new generation 3.0 L I6
with 255 hp (190 kW), a 2.5si with a 2.5 I6 with 218 bhp (163 kW) or a 2.0i with a 150 bhp
26
(112 kW) 2.0 L I4. The Z4 coupé is available only in the high-performance 3.0si trim
powered by the 3.0 L 255 hp (190 kW) I6. The Z4 (E84) was built at the Spartanburg plant.
Its successor, also named Z4 (E89) - this time a coupé-convertible with folding hardtop- will
be built in Regensburg alongside the (E93) 3-Series Cabrio.
Z4 M The new Z4 M roadster and coupe have been released with an E46 M3 motor (3.2 L,
333 hp) and also features the M braking, suspension, and styling characteristics.
Z4 Roadster
Z4 Coupe
Z4 M Roadster
M SERIES
BMW M
1 Series M Coupé
BMW M boss Dr. Kay Segler officially announced the making of the M variant of the BMW
1-Series Coupé on July 9, 2010, via an official YouTube video and press release.
[26]
On
December 9, 2010, BMW officially announced all details of the car in the media.
[27
In the 1M
Coupe, the engine produces 340 PS (250 kW) at 5900 rpm and 332 lb·ft (450 N·m) torque
from 1,500 to 4,500 rpm (with +369 lb·ft (500 N·m) overboost). The sole available drivetrain
(112 kW) 2.0 L I4. The Z4 coupé is available only in the high-performance 3.0si trim
powered by the 3.0 L 255 hp (190 kW) I6. The Z4 (E84) was built at the Spartanburg plant.
Its successor, also named Z4 (E89) - this time a coupé-convertible with folding hardtop- will
be built in Regensburg alongside the (E93) 3-Series Cabrio.
Z4 M The new Z4 M roadster and coupe have been released with an E46 M3 motor (3.2 L,
333 hp) and also features the M braking, suspension, and styling characteristics.
Z4 Roadster
Z4 Coupe
Z4 M Roadster
M SERIES
BMW M
1 Series M Coupé
BMW M boss Dr. Kay Segler officially announced the making of the M variant of the BMW
1-Series Coupé on July 9, 2010, via an official YouTube video and press release.
[26]
On
December 9, 2010, BMW officially announced all details of the car in the media.
[27
In the 1M
Coupe, the engine produces 340 PS (250 kW) at 5900 rpm and 332 lb·ft (450 N·m) torque
from 1,500 to 4,500 rpm (with +369 lb·ft (500 N·m) overboost). The sole available drivetrain
27
is a six-speed manual gearbox with a limited slip differential.The 1M coupe has a
significantly wider track and bigger body than the standard E82 coupe, as well as a different
body kit. Despite the car's larger size, it is 77 lb (35 kg) lighter than the standard E82 coupe,
giving it a weight of 3,296 lb (1,495 kg
M3
E92 M3 Coupé
Based on the 3 Series, the M3 defined an entirely new market for BMW: a race-ready
production vehicle. Since its debut, the M3 is heralded in enthusiast circles, in large part due
to its unique geometry and award winning engines. The newest platform became available the
Autumn of 2007 in Europe, and second quarter of 2008 for the U.S. in Coupe (E92), and later
the Cabriolet (E93), and Sedan (E90) variants.
M5
The BMW M5 is a high performance version of the BMW 5-Seriesexecutive car built by the
Motorsport division of BMW. Beginning production in 1986, the first incarnation of the M5
was hand-built utilizing the 535i chassis and a modified BMW M1 engine, being the fastest
production sedan in the world at the time of its introduction.
[1]
Subsequent iterations of the
is a six-speed manual gearbox with a limited slip differential.The 1M coupe has a
significantly wider track and bigger body than the standard E82 coupe, as well as a different
body kit. Despite the car's larger size, it is 77 lb (35 kg) lighter than the standard E82 coupe,
giving it a weight of 3,296 lb (1,495 kg
M3
E92 M3 Coupé
Based on the 3 Series, the M3 defined an entirely new market for BMW: a race-ready
production vehicle. Since its debut, the M3 is heralded in enthusiast circles, in large part due
to its unique geometry and award winning engines. The newest platform became available the
Autumn of 2007 in Europe, and second quarter of 2008 for the U.S. in Coupe (E92), and later
the Cabriolet (E93), and Sedan (E90) variants.
M5
The BMW M5 is a high performance version of the BMW 5-Seriesexecutive car built by the
Motorsport division of BMW. Beginning production in 1986, the first incarnation of the M5
was hand-built utilizing the 535i chassis and a modified BMW M1 engine, being the fastest
production sedan in the world at the time of its introduction.
[1]
Subsequent iterations of the
28
M5 have been built from each generation of the 5-Series platform, including the E34, E39,
E60/E61, and most recently, F10, with the first orders delivered in late 2011.
M6
BMW M6 Coupe
The M6 is the M division's version of the 6 Series. The M6 shares its drive train with the M5.
The V10 produces 508 hp (379 kW) and 383lb/ft (520Nm) of Torque. The production M6
debuted at the 2005 Geneva Motor Show. It is currently available in a coupe and a
convertible version. There is speculation that an M6 CSL version is to be released in the
future.
The vehicle is based on the 6 Series coupe and convertible, which were launched in 2004.
Carbon fiber and other light materials are used in places like the bumpers and roof that are far
from the centre of gravity and/or high up, so that they not only reduce the overall weight but
improve the handling by reducing the moment of inertia and the centre of mass height.
The previous generation was launched in 1983, but ended in 1989 with around 5,855 sold.
M5 have been built from each generation of the 5-Series platform, including the E34, E39,
E60/E61, and most recently, F10, with the first orders delivered in late 2011.
M6
BMW M6 Coupe
The M6 is the M division's version of the 6 Series. The M6 shares its drive train with the M5.
The V10 produces 508 hp (379 kW) and 383lb/ft (520Nm) of Torque. The production M6
debuted at the 2005 Geneva Motor Show. It is currently available in a coupe and a
convertible version. There is speculation that an M6 CSL version is to be released in the
future.
The vehicle is based on the 6 Series coupe and convertible, which were launched in 2004.
Carbon fiber and other light materials are used in places like the bumpers and roof that are far
from the centre of gravity and/or high up, so that they not only reduce the overall weight but
improve the handling by reducing the moment of inertia and the centre of mass height.
The previous generation was launched in 1983, but ended in 1989 with around 5,855 sold.
29
MINI
Mini (styled as MINI) is a British automotive brand owned by the BMW Group that has
produced the successor of the original Mini in Oxford, England since April 2001.
Currently three body variants are available: hatchback, convertible and Clubman.
The car, whose first generation was designed by Frank Stephenson, is drawing inspiration
from the original Mini, which was manufactured by the British Motor Corporation and its
successors from 1959 to 2000. The name of the car's brand, MINI, is all-capitalized to
distinguish it from its predecessor.
The development of the first generation had been done between 1995 and 2001 by Rover
Group in Gaydon, United Kingdom and BMW AG in Munich, Germany and was
accompanied by continual contention between Rover and BMW. Especially the positioning
of the car was contended. Rover wanted an economy car, whilst BMW supported a small
sporting car and finally prevailed. In 1999 BMW assumed control over the whole project
after BMW's CEO Bernd Pischetsrieder had left the company. When BMW divested itself of
Rover in 2000, BMW decided to keep the Mini project and to build the car, which was
originally to be built at Rover's Long bridge plant, [3] the former production plant of the
traditional Mini, at BMW's Oxford plant in Cowley, Oxford, United Kingdom, in what was
historically the Pressed Steel Company body plant. The 2001 to 2006 model years included
four hatchback models: the basic "Mini One", the diesel-engine "Mini One/D", the sportier
"Mini Cooper" and the supercharged "Mini Cooper S".
The Mini was designed and engineered to replace the long running Rover 100 and the
larger Rover 200, both deemed unsuitable for the modern world automobile market. The Mini
MINI
Mini (styled as MINI) is a British automotive brand owned by the BMW Group that has
produced the successor of the original Mini in Oxford, England since April 2001.
Currently three body variants are available: hatchback, convertible and Clubman.
The car, whose first generation was designed by Frank Stephenson, is drawing inspiration
from the original Mini, which was manufactured by the British Motor Corporation and its
successors from 1959 to 2000. The name of the car's brand, MINI, is all-capitalized to
distinguish it from its predecessor.
The development of the first generation had been done between 1995 and 2001 by Rover
Group in Gaydon, United Kingdom and BMW AG in Munich, Germany and was
accompanied by continual contention between Rover and BMW. Especially the positioning
of the car was contended. Rover wanted an economy car, whilst BMW supported a small
sporting car and finally prevailed. In 1999 BMW assumed control over the whole project
after BMW's CEO Bernd Pischetsrieder had left the company. When BMW divested itself of
Rover in 2000, BMW decided to keep the Mini project and to build the car, which was
originally to be built at Rover's Long bridge plant, [3] the former production plant of the
traditional Mini, at BMW's Oxford plant in Cowley, Oxford, United Kingdom, in what was
historically the Pressed Steel Company body plant. The 2001 to 2006 model years included
four hatchback models: the basic "Mini One", the diesel-engine "Mini One/D", the sportier
"Mini Cooper" and the supercharged "Mini Cooper S".
The Mini was designed and engineered to replace the long running Rover 100 and the
larger Rover 200, both deemed unsuitable for the modern world automobile market. The Mini
30
was supposed to replace low-end models of the 200 and high-end models of the 100 with a
Rover 35 replacing high end 200s and low end 400s. After the divestment of MG Rover, the
Mini was instead marketed as a small yet desirable city car rather than a mainstream
replacement of the 100 and 200.
ROLLS-ROYCE MOTOR CARS
Rolls-Royce Motor Cars is a British manufacturer of luxury automobiles based in Goodwood,
England. It is the current producer of Rolls-Royce branded automobiles, whose historical
production dates back to 1904. The factory is located across from the historic Goodwood
Circuit in Goodwood, West Sussex, and England. It is a wholly owned subsidiary of
the BMW Group.
In 1998, owners Vickers decided to sell Rolls-Royce Motors. The most likely buyer
was BMW, who already supplied engines and other components for Rolls-Royce
and Bentley cars, but BMW's final offer of £340m was beaten by Volkswagen's £430m.
A stipulation in the ownership documents of Rolls-Royce dictated that Rolls-Royce plc, the
aero-engine maker would retain certain essential trademarks (the Rolls-Royce name and
logo) if the automotive division was sold. Rolls-Royce plc chose to license not to VW but to
BMW, with whom it had recently had joint business ventures. VW had bought rights to the
was supposed to replace low-end models of the 200 and high-end models of the 100 with a
Rover 35 replacing high end 200s and low end 400s. After the divestment of MG Rover, the
Mini was instead marketed as a small yet desirable city car rather than a mainstream
replacement of the 100 and 200.
ROLLS-ROYCE MOTOR CARS
Rolls-Royce Motor Cars is a British manufacturer of luxury automobiles based in Goodwood,
England. It is the current producer of Rolls-Royce branded automobiles, whose historical
production dates back to 1904. The factory is located across from the historic Goodwood
Circuit in Goodwood, West Sussex, and England. It is a wholly owned subsidiary of
the BMW Group.
In 1998, owners Vickers decided to sell Rolls-Royce Motors. The most likely buyer
was BMW, who already supplied engines and other components for Rolls-Royce
and Bentley cars, but BMW's final offer of £340m was beaten by Volkswagen's £430m.
A stipulation in the ownership documents of Rolls-Royce dictated that Rolls-Royce plc, the
aero-engine maker would retain certain essential trademarks (the Rolls-Royce name and
logo) if the automotive division was sold. Rolls-Royce plc chose to license not to VW but to
BMW, with whom it had recently had joint business ventures. VW had bought rights to the
31
"Spirit of Ecstasy" hood ornament and the shape of the radiator grille, but it lacked rights to
the Rolls-Royce name necessary to build the cars. Likewise, BMW lacked rights to the grille
and mascot. BMW bought an option on the trademarks, licensing the name and "RR" logo for
£40m, a deal that many commentators thought was a bargain for possibly the most valuable
property in the deal. VW claimed that it had only really wanted Bentley anyway.
BMW and VW arrived at a solution. From that date, only BMW would be able to name cars
"Rolls-Royce", and VW's former Rolls-Royce/Bentley division would build only cars called
"Bentley". The Rolls-Royce's Corniche ceased production in 2002.
Environmental Record of BMW
The company is a charter member of the U.S. Environmental Protection Agency's (EPA)
National Environmental Achievement Track, which recognizes companies for their
environmental stewardship and performance. It is also a member of the South Carolina
Environmental Excellence Program and is on the Dow Jones Sustainability Group Index,
which rates environmentally friendly companies. BMW has taken measures to reduce the
impact the company has on the environment. It is trying to design less-polluting cars by
making existing models more efficient, as well as developing environmentally friendly fuels
for future vehicles. Possibilities include: electric power, hybrid power (combustion, engines
and electric motors) hydrogen engines.
"Spirit of Ecstasy" hood ornament and the shape of the radiator grille, but it lacked rights to
the Rolls-Royce name necessary to build the cars. Likewise, BMW lacked rights to the grille
and mascot. BMW bought an option on the trademarks, licensing the name and "RR" logo for
£40m, a deal that many commentators thought was a bargain for possibly the most valuable
property in the deal. VW claimed that it had only really wanted Bentley anyway.
BMW and VW arrived at a solution. From that date, only BMW would be able to name cars
"Rolls-Royce", and VW's former Rolls-Royce/Bentley division would build only cars called
"Bentley". The Rolls-Royce's Corniche ceased production in 2002.
Environmental Record of BMW
The company is a charter member of the U.S. Environmental Protection Agency's (EPA)
National Environmental Achievement Track, which recognizes companies for their
environmental stewardship and performance. It is also a member of the South Carolina
Environmental Excellence Program and is on the Dow Jones Sustainability Group Index,
which rates environmentally friendly companies. BMW has taken measures to reduce the
impact the company has on the environment. It is trying to design less-polluting cars by
making existing models more efficient, as well as developing environmentally friendly fuels
for future vehicles. Possibilities include: electric power, hybrid power (combustion, engines
and electric motors) hydrogen engines.
32
What Critics Says?
“There have been some criticisms in past directed at BMW, and in particular,
accusations of green wash in reference to their BMW Hydrogen 7. Some critics claim
that the emissions produced during hydrogen fuel production outweigh the reduction of
tailpipe emissions, and that the Hydrogen 7 is a distraction from more immediate,
practical solutions for car pollution.”
Innovations /Progress
All Wheel Drive
All-wheel drive means traction, directional stability and driving safety. With BMW xDrive, it
also means driving pleasure. On dry tarmac, xDrive transfers 40% of the torque to the front
wheels and 60% to the rear, allowing the car to retain the sporty handling characteristics
you'd expect from a BMW. If the situation or surface changes, xDrive redistributes torque
within milliseconds to prevent over- or under steer at the onset. It's the perfect blend of
safety, traction and agility.
Active Steering.
Active Steering adjusts the steering ratio and weight to the car's speed. At low or medium
speeds, it translates steering input directly for easier parking in town and enhanced agility in
What Critics Says?
“There have been some criticisms in past directed at BMW, and in particular,
accusations of green wash in reference to their BMW Hydrogen 7. Some critics claim
that the emissions produced during hydrogen fuel production outweigh the reduction of
tailpipe emissions, and that the Hydrogen 7 is a distraction from more immediate,
practical solutions for car pollution.”
Innovations /Progress
All Wheel Drive
All-wheel drive means traction, directional stability and driving safety. With BMW xDrive, it
also means driving pleasure. On dry tarmac, xDrive transfers 40% of the torque to the front
wheels and 60% to the rear, allowing the car to retain the sporty handling characteristics
you'd expect from a BMW. If the situation or surface changes, xDrive redistributes torque
within milliseconds to prevent over- or under steer at the onset. It's the perfect blend of
safety, traction and agility.
Active Steering.
Active Steering adjusts the steering ratio and weight to the car's speed. At low or medium
speeds, it translates steering input directly for easier parking in town and enhanced agility in
33
bends. At high speeds, the amount the wheel needs turning increases, resulting in greater
directional stability - on motorways for instance - and therefore safety. It means optimum feel
and maximum enjoyment, whatever the speed and situation.
DISTRIBUTION CHANNEL OF BMW
BMW is an automobile dealer that manufacturers and sells a wide range of vehicles.
The BMW automobiles are sold to a special target market and appeals only to a particular
stratum of people. BMW vehicles are classy, stylish, comfortable and luxurious. With regard
to the BMW films, which can be viewed on www.bmw.com, there are a number of reasons
surrounding the success of these films. The films allow prospective customers to view the
cars before purchasing them. Marketers ensured that the visitors to the site felt compelled to
stay at the site. They associated each model of the vehicle to that of human attributes.
For example, the BMW Formula M was described as having a ‘soul’. When consumers see
these attributes, they suddenly begin to identify with these attributes, and then create an
image and personality of the vehicle for themselves, by also giving the vehicles personal
human traits as well. The site also offers consumers the option of customizing their own
vehicle to their preference and taste.
Another reason the BMW site and films have increased sales for the company is that
marketers have used dynamic features for the site. The site is portrayed as a type of one-stop
shopping, because not only are BMW vehicles showcased, but an online magazine is on the
site. If visitors to the site do not wish to make a purchase, they may opt to view the online
magazine. Marketers embarked on an intense Integrated Marketing Campaign that gave rise
to increased interest and traffic to the BMW site.
bends. At high speeds, the amount the wheel needs turning increases, resulting in greater
directional stability - on motorways for instance - and therefore safety. It means optimum feel
and maximum enjoyment, whatever the speed and situation.
DISTRIBUTION CHANNEL OF BMW
BMW is an automobile dealer that manufacturers and sells a wide range of vehicles.
The BMW automobiles are sold to a special target market and appeals only to a particular
stratum of people. BMW vehicles are classy, stylish, comfortable and luxurious. With regard
to the BMW films, which can be viewed on www.bmw.com, there are a number of reasons
surrounding the success of these films. The films allow prospective customers to view the
cars before purchasing them. Marketers ensured that the visitors to the site felt compelled to
stay at the site. They associated each model of the vehicle to that of human attributes.
For example, the BMW Formula M was described as having a ‘soul’. When consumers see
these attributes, they suddenly begin to identify with these attributes, and then create an
image and personality of the vehicle for themselves, by also giving the vehicles personal
human traits as well. The site also offers consumers the option of customizing their own
vehicle to their preference and taste.
Another reason the BMW site and films have increased sales for the company is that
marketers have used dynamic features for the site. The site is portrayed as a type of one-stop
shopping, because not only are BMW vehicles showcased, but an online magazine is on the
site. If visitors to the site do not wish to make a purchase, they may opt to view the online
magazine. Marketers embarked on an intense Integrated Marketing Campaign that gave rise
to increased interest and traffic to the BMW site.
34
Integrated Marketing Communication (IMC) is a strategy used to plan, execute and monitor
communication about a brand. In addition, the IMC is aimed at attracting and retaining
customers. The marketers of the BMW site had to have extensive knowledge of the brand,
competitors and target audience. Through the IMC plan on the Internet, marketers were able
to use a direct marketing channel to reach it target audience.
In addition, the type of distribution channel that was employed by marketers on the BMW
website was to perform the facilitating function, where contact was made with buyers, the
needs of buyers were matched with the product and they had ideal communication strategies
to ensure effective information transfer.
The success of the BMW films also include the that fact that each Vehicle is presented with
the possible fuel consumption information as well as the model of the vehicle that would be
most appropriate for the consumer based on the model chosen and the consumer’s lifestyle.
When marketers cater to the needs of customers and a positive perception of the brand has
been created, the success of the product is inevitable.
Integrated Marketing Communication (IMC) is a strategy used to plan, execute and monitor
communication about a brand. In addition, the IMC is aimed at attracting and retaining
customers. The marketers of the BMW site had to have extensive knowledge of the brand,
competitors and target audience. Through the IMC plan on the Internet, marketers were able
to use a direct marketing channel to reach it target audience.
In addition, the type of distribution channel that was employed by marketers on the BMW
website was to perform the facilitating function, where contact was made with buyers, the
needs of buyers were matched with the product and they had ideal communication strategies
to ensure effective information transfer.
The success of the BMW films also include the that fact that each Vehicle is presented with
the possible fuel consumption information as well as the model of the vehicle that would be
most appropriate for the consumer based on the model chosen and the consumer’s lifestyle.
When marketers cater to the needs of customers and a positive perception of the brand has
been created, the success of the product is inevitable.
35
UNITS DELIVERED
Cars delivered by the BMW Group in 2008-09 (1000 units)
0
200
400
600
800
1000
1200
Ro l ls Roy ce
M IN I
B M W
B M W7 Se ri es
B M W X 5
B M W5 Se ri es
B M W Z4
B M W3 Se ri es
Tot al Del i ve ri es
UNITS DELIVERED
Cars delivered by the BMW Group in 2008-09 (1000 units)
0
200
400
600
800
1000
1200
Ro l ls Roy ce
M IN I
B M W
B M W7 Se ri es
B M W X 5
B M W5 Se ri es
B M W Z4
B M W3 Se ri es
Tot al Del i ve ri es
36
POSITION IN THE MARKET: -
The German carmaker is revving up sales….. ….Overtaking Lexus in the US…..
Billions of dollars
*Forecast by Lehman Brothers
Luxury Model auto sales January through
April
* Including 11,304 minis
Operating Margin*
Porsche 15.8%
Nissan 11.0%
Toyota** 8.5%
BMW Group 7.4%
Volkswagen Group 6.1%
Mercedes & Smart cars 5.8%
PSA Group 5.4%
Volvo Group 2.5%
Renault Group 2.3%
Chrysler cars & trucks 1.5%
0
10
20
30
40
50
60
70
9495969798990001020304* 0 20 40 60 80 100
Porsche
Jaguar
Audi
Infiniti
Volvo
Acura
Cadillac
Mercedes
Lexus
BMW*
POSITION IN THE MARKET: -
The German carmaker is revving up sales….. ….Overtaking Lexus in the US…..
Billions of dollars
*Forecast by Lehman Brothers
Luxury Model auto sales January through
April
* Including 11,304 minis
Operating Margin*
Porsche 15.8%
Nissan 11.0%
Toyota** 8.5%
BMW Group 7.4%
Volkswagen Group 6.1%
Mercedes & Smart cars 5.8%
PSA Group 5.4%
Volvo Group 2.5%
Renault Group 2.3%
Chrysler cars & trucks 1.5%
0
10
20
30
40
50
60
70
9495969798990001020304* 0 20 40 60 80 100
Porsche
Jaguar
Audi
Infiniti
Volvo
Acura
Cadillac
Mercedes
Lexus
BMW*
37
REVENUE AND SALES
During the financial year 2011, the BMW Group sold approximately 1.67 million cars and more than
113,000 motorcycles worldwide. The profit before tax for 2011 was € 7.38 billion on revenues
amounting to € 68.82 billion.
For the year 2012, BMW Group profits were up 4.4 percent to $6.65 billion and increased sales were
a main driver of BMW's improved profits. The Group delivered 1,845,186 BMW, Rolls-Royce and MINI
vehicles last year, marking an increase of 10.6 percent over the prior year.
WORLDWIDE SALES
Vehicles sold in all markets according to BMW's annual reports.
Year BMW MINI Rolls-Royce Motorcycle*
2005 1,126,768 200,428 796 97,474
2006 1,185,088 188,077 805 100,064
2007 1,276,793 222,875 1,010 102,467
2008 1,202,239 232,425 1,212 115,196
2009 1,068,770 216,538 1,002 100,358
2010 1,224,280 234,175 2,711 110,113
2011 1,380,384 285,060 3,538 113,572
2012
[2]
1,540,085 301,525 3,575 117,109
REVENUE AND SALES
During the financial year 2011, the BMW Group sold approximately 1.67 million cars and more than
113,000 motorcycles worldwide. The profit before tax for 2011 was € 7.38 billion on revenues
amounting to € 68.82 billion.
For the year 2012, BMW Group profits were up 4.4 percent to $6.65 billion and increased sales were
a main driver of BMW's improved profits. The Group delivered 1,845,186 BMW, Rolls-Royce and MINI
vehicles last year, marking an increase of 10.6 percent over the prior year.
WORLDWIDE SALES
Vehicles sold in all markets according to BMW's annual reports.
Year BMW MINI Rolls-Royce Motorcycle*
2005 1,126,768 200,428 796 97,474
2006 1,185,088 188,077 805 100,064
2007 1,276,793 222,875 1,010 102,467
2008 1,202,239 232,425 1,212 115,196
2009 1,068,770 216,538 1,002 100,358
2010 1,224,280 234,175 2,711 110,113
2011 1,380,384 285,060 3,538 113,572
2012
[2]
1,540,085 301,525 3,575 117,109
38
OBJECTIVES
As a person with knowledge of business strategy, the author has always brought up to his
superiors the viability of strategy formation regarding the analysis of this topic and at times
fails to understand the reasons or logic behind certain strategic implementations imposed on
it.
By delving into this project paper, the author intends to have better insights into how business
strategy is thought up, formulated and then imparted down into the subsidiaries of the
company or organization. The author hopes to have an in-depth understanding as to how the
implementation of business strategies enables companies and organizations to compete
effectively and profitably in this era of internationalization where competition is extremely
intense.
In order to reinforce the learning objectives, two key focal issues were focused upon, i.e.
innovation and diversity. Innovation was discussed with regard to business strategies where
they were renowned for their developmental capabilities to constantly innovate. Diversity
came under strategic thinking and formation as the author considered the diverse culture,
political climate, economic surroundings, social environment, technological settings,
government policies and legal systems in its bid to become a leading player in order to better
understand the issues being discussed.
EXECUTIVE BRIEF
This essay utilized BMW as the model organization to review its present business strategies
and how they dealt with critical situations. From the analysis, key trends in the business
strategies of BMW were then identified, how they worked and their effectiveness in dealing
with critical situations was ascertained. The paper then moved on to assess these business
strategies with regard to their suitability to critical situations, during which the internal
capabilities of these business strategies in relation to the strategy being followed by BMW
was determined also. An overall analysis of the performance and effectiveness of the business
strategies of BMW was also conducted to assess and compare the capabilities of these
business strategies with those of others. Gaps in the capabilities and environment were then
identified.
OBJECTIVES
As a person with knowledge of business strategy, the author has always brought up to his
superiors the viability of strategy formation regarding the analysis of this topic and at times
fails to understand the reasons or logic behind certain strategic implementations imposed on
it.
By delving into this project paper, the author intends to have better insights into how business
strategy is thought up, formulated and then imparted down into the subsidiaries of the
company or organization. The author hopes to have an in-depth understanding as to how the
implementation of business strategies enables companies and organizations to compete
effectively and profitably in this era of internationalization where competition is extremely
intense.
In order to reinforce the learning objectives, two key focal issues were focused upon, i.e.
innovation and diversity. Innovation was discussed with regard to business strategies where
they were renowned for their developmental capabilities to constantly innovate. Diversity
came under strategic thinking and formation as the author considered the diverse culture,
political climate, economic surroundings, social environment, technological settings,
government policies and legal systems in its bid to become a leading player in order to better
understand the issues being discussed.
EXECUTIVE BRIEF
This essay utilized BMW as the model organization to review its present business strategies
and how they dealt with critical situations. From the analysis, key trends in the business
strategies of BMW were then identified, how they worked and their effectiveness in dealing
with critical situations was ascertained. The paper then moved on to assess these business
strategies with regard to their suitability to critical situations, during which the internal
capabilities of these business strategies in relation to the strategy being followed by BMW
was determined also. An overall analysis of the performance and effectiveness of the business
strategies of BMW was also conducted to assess and compare the capabilities of these
business strategies with those of others. Gaps in the capabilities and environment were then
identified.
39
Finally, several choices of strategies to improve the business strategies of BMW as effective
means in critical situations were recommended and evaluated in terms of appropriateness to
the issues reviewed, feasibility in carrying out the options and acceptability within the key
stakeholders and decision makers. Several key implementation issues related to managing
strategic change were also addressed as well.
OVERVIEW OF BMW
BMW aims for sustainable growth as a broad market leader in the automobile industry as
well as for segment leadership. In both cases, the automobiles of BMW will play a crucial
part. BMW is able to establish its broad leadership usually by acquiring other strong
automobile companies and their cars, which are then combined into a new, larger company.
Offering training to its employees, improving the company operations, and the introduction
of new car technologies then reinforces the positions of the various BMW automobiles. This
practically results in economies of scale that is able to create a distribution network for both
the local and international BMW automobiles. If a market is already in the control of other
automobile companies, BMW devotes its attention towards the development of a premium
segment with its various automobiles.
The mission of BMW is to secure the growth of the business in a sustainable manner, while
at the same time constantly improving the company’s profitability. The strategy to achieve
this involves four elements:
1. Striving in order to reach a leading position in attractive markets
2. Focusing on securing a competitive share of the automotive market segments.
3. Working in order to improve the company’s efficiency and cut costs in operations.
4. Continuous growth through selective acquisitions for as long as they are able to create
shareholder value.
Finally, several choices of strategies to improve the business strategies of BMW as effective
means in critical situations were recommended and evaluated in terms of appropriateness to
the issues reviewed, feasibility in carrying out the options and acceptability within the key
stakeholders and decision makers. Several key implementation issues related to managing
strategic change were also addressed as well.
OVERVIEW OF BMW
BMW aims for sustainable growth as a broad market leader in the automobile industry as
well as for segment leadership. In both cases, the automobiles of BMW will play a crucial
part. BMW is able to establish its broad leadership usually by acquiring other strong
automobile companies and their cars, which are then combined into a new, larger company.
Offering training to its employees, improving the company operations, and the introduction
of new car technologies then reinforces the positions of the various BMW automobiles. This
practically results in economies of scale that is able to create a distribution network for both
the local and international BMW automobiles. If a market is already in the control of other
automobile companies, BMW devotes its attention towards the development of a premium
segment with its various automobiles.
The mission of BMW is to secure the growth of the business in a sustainable manner, while
at the same time constantly improving the company’s profitability. The strategy to achieve
this involves four elements:
1. Striving in order to reach a leading position in attractive markets
2. Focusing on securing a competitive share of the automotive market segments.
3. Working in order to improve the company’s efficiency and cut costs in operations.
4. Continuous growth through selective acquisitions for as long as they are able to create
shareholder value.
40
The Markets
The main markets for BMW automobiles have been in Europe, the USA, Japan and the
Pacific region, with the markets of Germany and the US accounting for almost half the total
car sales. Important markets have also been the fast-growing UK, and the Italian, French and
Japanese markets. Sales in the USA market have been particularly successful, as they grew
by over 8 per cent on the previous year to 277,000, becoming the biggest market for the
group and overtaking the Lexus brand for the first time. At the end of 2003, the outlook for
2004 by group management and industry observers was upbeat. This view was supported by
the successful launch of the new 5-series, the consolidation in Europe and Asia of the BMW
Z4, the introduction of the BMW X3. The new BMW 1 Series and the BMW 6 Series
cabriolet were launched early in 2004. By far the most successful models were the MINI, the
3-series and the 5-series, but the other models were also in significant demand. In the Chinese
markets there was growing demand for the higher end models of the range, specifically for 7-
series and 5-series.
“We offer our customers emotional products, which, through the strength of the brand and
the substance of the product, fulfill the customer's wish for individualization and
differentiation. The BMW Group will never build boring products.”
0
50
100
150
200
250
300
US A
Ger m any
UK I ta ly
J apan Fra nce
S pai n Ch i na
B el gi um S A f ri ca
The Markets
The main markets for BMW automobiles have been in Europe, the USA, Japan and the
Pacific region, with the markets of Germany and the US accounting for almost half the total
car sales. Important markets have also been the fast-growing UK, and the Italian, French and
Japanese markets. Sales in the USA market have been particularly successful, as they grew
by over 8 per cent on the previous year to 277,000, becoming the biggest market for the
group and overtaking the Lexus brand for the first time. At the end of 2003, the outlook for
2004 by group management and industry observers was upbeat. This view was supported by
the successful launch of the new 5-series, the consolidation in Europe and Asia of the BMW
Z4, the introduction of the BMW X3. The new BMW 1 Series and the BMW 6 Series
cabriolet were launched early in 2004. By far the most successful models were the MINI, the
3-series and the 5-series, but the other models were also in significant demand. In the Chinese
markets there was growing demand for the higher end models of the range, specifically for 7-
series and 5-series.
“We offer our customers emotional products, which, through the strength of the brand and
the substance of the product, fulfill the customer's wish for individualization and
differentiation. The BMW Group will never build boring products.”
0
50
100
150
200
250
300
US A
Ger m any
UK I ta ly
J apan Fra nce
S pai n Ch i na
B el gi um S A f ri ca
41
VIEWS OF OWNERS
VIEWS OF OWNERS
42
GLOBAL BRAND IMAGE
First, let’s take a look at BMW in context of the global automobile industry. In recent
decades, the industry has undergone significant consolidation among manufacturing
enterprises. From multiple acquisitions by Ford to the Daimler-Chrysler merger, many
automakers now enjoy economies of scale and global distribution networks that afford
significant advantages in procurement, R&D, manufacturing, and distribution.
The synergies borne by these scale economies allow larger manufacturers to better weather
fluctuations in the macro-economic environment, yet profit from the evolving needs of the
car consumer. For instance shifting production away from gas-guzzling SUVs to more
economical automobiles helps manufacturers profit in years where oil prices rise; while
developing innovative brands and designs can satisfy new segments of consumers who will
pay premium dollars for differentiated features and styles. Manufacturers that cannot rely on
scale to deliver profitable returns need to ensure that their brands and limited product lines
remain highly differentiated and relevant, and continue to aggregate a growing consumer
following in the face of sophisticated competition.Even without a degree in microeconomics,
you can get a sense of the relative advantage among various manufacturers by examining the
sector below.
GLOBAL BRAND IMAGE
First, let’s take a look at BMW in context of the global automobile industry. In recent
decades, the industry has undergone significant consolidation among manufacturing
enterprises. From multiple acquisitions by Ford to the Daimler-Chrysler merger, many
automakers now enjoy economies of scale and global distribution networks that afford
significant advantages in procurement, R&D, manufacturing, and distribution.
The synergies borne by these scale economies allow larger manufacturers to better weather
fluctuations in the macro-economic environment, yet profit from the evolving needs of the
car consumer. For instance shifting production away from gas-guzzling SUVs to more
economical automobiles helps manufacturers profit in years where oil prices rise; while
developing innovative brands and designs can satisfy new segments of consumers who will
pay premium dollars for differentiated features and styles. Manufacturers that cannot rely on
scale to deliver profitable returns need to ensure that their brands and limited product lines
remain highly differentiated and relevant, and continue to aggregate a growing consumer
following in the face of sophisticated competition.Even without a degree in microeconomics,
you can get a sense of the relative advantage among various manufacturers by examining the
sector below.
43
COMPANY’s MARKETING STRATEGY
OBJECTIVES
As a person with knowledge of business strategy, the author has always brought up to his
superiors the viability of strategy formation regarding the analysis of this topic and at times
fails to understand the reasons or logic behind certain strategic implementations imposed on
it.
By delving into this project paper, the author intends to have better insights into how business
strategy is thought up, formulated and then imparted down into the subsidiaries of the
company or organization. The author hopes to have an in-depth understanding as to how the
implementation of business strategies enables companies and organizations to compete
effectively and profitably in this era of internationalization where competition is extremely
intense.
In order to reinforce the learning objectives, two key focal issues were focused upon, i.e.
innovation and diversity. Innovation was discussed with regard to business strategies where
they were renowned for their developmental capabilities to constantly innovate. Diversity
came under strategic thinking and formation as the author considered the diverse culture,
political climate, economic surroundings, social environment, technological settings,
government policies and legal systems in its bid to become a leading player in order to better
understand the issues being discussed.
EXECUTIVE BRIEF
This essay utilized BMW as the model organization to review its present business strategies
and how they dealt with critical situations. From the analysis, key trends in the business
strategies of BMW were then identified, how they worked and their effectiveness in dealing
with critical situations was ascertained. The paper then moved on to assess these business
strategies with regard to their suitability to critical situations, during which the internal
capabilities of these business strategies in relation to the strategy being followed by BMW
was determined also. An overall analysis of the performance and effectiveness of the business
strategies of BMW was also conducted to assess and compare the capabilities of these
COMPANY’s MARKETING STRATEGY
OBJECTIVES
As a person with knowledge of business strategy, the author has always brought up to his
superiors the viability of strategy formation regarding the analysis of this topic and at times
fails to understand the reasons or logic behind certain strategic implementations imposed on
it.
By delving into this project paper, the author intends to have better insights into how business
strategy is thought up, formulated and then imparted down into the subsidiaries of the
company or organization. The author hopes to have an in-depth understanding as to how the
implementation of business strategies enables companies and organizations to compete
effectively and profitably in this era of internationalization where competition is extremely
intense.
In order to reinforce the learning objectives, two key focal issues were focused upon, i.e.
innovation and diversity. Innovation was discussed with regard to business strategies where
they were renowned for their developmental capabilities to constantly innovate. Diversity
came under strategic thinking and formation as the author considered the diverse culture,
political climate, economic surroundings, social environment, technological settings,
government policies and legal systems in its bid to become a leading player in order to better
understand the issues being discussed.
EXECUTIVE BRIEF
This essay utilized BMW as the model organization to review its present business strategies
and how they dealt with critical situations. From the analysis, key trends in the business
strategies of BMW were then identified, how they worked and their effectiveness in dealing
with critical situations was ascertained. The paper then moved on to assess these business
strategies with regard to their suitability to critical situations, during which the internal
capabilities of these business strategies in relation to the strategy being followed by BMW
was determined also. An overall analysis of the performance and effectiveness of the business
strategies of BMW was also conducted to assess and compare the capabilities of these
44
business strategies with those of others. Gaps in the capabilities and environment were then
identified.
Finally, several choices of strategies to improve the business strategies of BMW as effective
means in critical situations were recommended and evaluated in terms of appropriateness to
the issues reviewed, feasibility in carrying out the options and acceptability within the key
stakeholders and decision makers. Several key implementation issues related to managing
strategic change were also addressed as well.
OVERVIEW OF BMW
BMW aims for sustainable growth as a broad market leader in the automobile
industry as well as for segment leadership. In both cases, the automobiles of BMW will play
a crucial part. BMW is able to establish its broad leadership usually by acquiring other strong
automobile companies and their cars, which are then combined into a new, larger company.
Offering training to its employees, improving the company operations, and the introduction
of new car technologies then reinforces the positions of the various BMW automobiles. This
practically results in economies of scale that is able to create a distribution network for both
the local and international BMW automobiles. If a market is already in the control of other
automobile companies, BMW devotes its attention towards the development of a premium
segment with its various automobiles.
The mission of BMW is to secure the growth of the business in a sustainable manner,
while at the same time constantly improving the company’s profitability. The strategy to
achieve this involves four elements:
1. Striving in order to reach a leading position in attractive markets
2. Focusing on securing a competitive share of the automotive market segments.
3. Working in order to improve the company’s efficiency and cut costs in operations.
4. Continuous growth through selective acquisitions for as long as they are able to create
shareholder value.
business strategies with those of others. Gaps in the capabilities and environment were then
identified.
Finally, several choices of strategies to improve the business strategies of BMW as effective
means in critical situations were recommended and evaluated in terms of appropriateness to
the issues reviewed, feasibility in carrying out the options and acceptability within the key
stakeholders and decision makers. Several key implementation issues related to managing
strategic change were also addressed as well.
OVERVIEW OF BMW
BMW aims for sustainable growth as a broad market leader in the automobile
industry as well as for segment leadership. In both cases, the automobiles of BMW will play
a crucial part. BMW is able to establish its broad leadership usually by acquiring other strong
automobile companies and their cars, which are then combined into a new, larger company.
Offering training to its employees, improving the company operations, and the introduction
of new car technologies then reinforces the positions of the various BMW automobiles. This
practically results in economies of scale that is able to create a distribution network for both
the local and international BMW automobiles. If a market is already in the control of other
automobile companies, BMW devotes its attention towards the development of a premium
segment with its various automobiles.
The mission of BMW is to secure the growth of the business in a sustainable manner,
while at the same time constantly improving the company’s profitability. The strategy to
achieve this involves four elements:
1. Striving in order to reach a leading position in attractive markets
2. Focusing on securing a competitive share of the automotive market segments.
3. Working in order to improve the company’s efficiency and cut costs in operations.
4. Continuous growth through selective acquisitions for as long as they are able to create
shareholder value.
45
1. What is the organization’s strategic position?
BMW’s generic strategy in the automotive market lies on product differentiation. The
differentiated automobiles and motorcycles of BMW are able to satisfy the needs of their
customers through a sustainable competitive advantage. This allows BMW to desensitize the
prices of their automobiles and motorcycles and instead focus on the values that generate not
only a comparatively higher price but also a better margin.
BMW is committed on its efforts to continuously develop original automotive technologies
that generate a high appeal to the general public due to its quality and cost effectiveness.
Over the years, BMW has been able to build a substantial base meant to boost the company’s
designing and manufacturing capabilities. This enables the company to bring to markets truly
original and more importantly efficient automotives that are reasonably priced. The research
and development team of BMW also plays a crucial role in the achievement of this feat. The
company also believes that making a positive impact in the society through their quality
products is the very essence of being a manufacturer.
BMW has been able to maintain its reputation as one of the world's leading
automotive companies for more than 130 years now. It is able to face the challenges
in many of its markets directly. This is made possible by the effective generic
strategies aimed to deliver not only profit growth, but also on building down the
foundation of BMW’s brands and business.
The generic strategies of BMW are focused mainly on driving the growth of its
brands and improving the company’s financial performance. These campaigns have
also helped secure significant acquisitions and partnerships. And more importantly,
these campaigns have led to the release of the potentials of the company’s
employees, thus building a quality performance- based culture.
The generic strategies of BMW’s local automotives are practically reinforced by the
local employees themselves. These moves certainly allow the company to improve
even more without the costs of introducing new technologies. These efforts have
resulted in increased financial gains for the company and have allowed the
establishment of distribution networks for both the local and international BMW
products.
1. What is the organization’s strategic position?
BMW’s generic strategy in the automotive market lies on product differentiation. The
differentiated automobiles and motorcycles of BMW are able to satisfy the needs of their
customers through a sustainable competitive advantage. This allows BMW to desensitize the
prices of their automobiles and motorcycles and instead focus on the values that generate not
only a comparatively higher price but also a better margin.
BMW is committed on its efforts to continuously develop original automotive technologies
that generate a high appeal to the general public due to its quality and cost effectiveness.
Over the years, BMW has been able to build a substantial base meant to boost the company’s
designing and manufacturing capabilities. This enables the company to bring to markets truly
original and more importantly efficient automotives that are reasonably priced. The research
and development team of BMW also plays a crucial role in the achievement of this feat. The
company also believes that making a positive impact in the society through their quality
products is the very essence of being a manufacturer.
BMW has been able to maintain its reputation as one of the world's leading
automotive companies for more than 130 years now. It is able to face the challenges
in many of its markets directly. This is made possible by the effective generic
strategies aimed to deliver not only profit growth, but also on building down the
foundation of BMW’s brands and business.
The generic strategies of BMW are focused mainly on driving the growth of its
brands and improving the company’s financial performance. These campaigns have
also helped secure significant acquisitions and partnerships. And more importantly,
these campaigns have led to the release of the potentials of the company’s
employees, thus building a quality performance- based culture.
The generic strategies of BMW’s local automotives are practically reinforced by the
local employees themselves. These moves certainly allow the company to improve
even more without the costs of introducing new technologies. These efforts have
resulted in increased financial gains for the company and have allowed the
establishment of distribution networks for both the local and international BMW
products.
46
DID YOU KNOW ?
A.BMW AG bought the British Rover Group in 1994 and owned it for six years.
B. In year 2000, Rover was making huge losses and BMW decided to sell the combine. The
MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land
Rover was taken over by Ford.
C.BMW built mini in 2001
D.BMW was one of the earliest manufacturers to offer anti-lock brakes on production
motorcycles starting in the late 1980s.
E. BMWSponsors Kumho BMW Championship in UK every year.
Formula One - BMW has won 19 grand prix as an engine supplier..
Sports car
Le Mans 24 Hours - BMW won Le Mans in 1999 with the BMW V12 LMR designed
by Williams Grand Prix Engineering.
24 Hours of Daytona - BMW won 1 time (1976) Rally
RAC Rally - The 328 sport car won this event in 1939.
Paris Dakar Rally - BMW motorcycles have won this event 6 times.
Tour De Corse - The BMW M3 - E30 won this event in 1987
DID YOU KNOW ?
A.BMW AG bought the British Rover Group in 1994 and owned it for six years.
B. In year 2000, Rover was making huge losses and BMW decided to sell the combine. The
MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land
Rover was taken over by Ford.
C.BMW built mini in 2001
D.BMW was one of the earliest manufacturers to offer anti-lock brakes on production
motorcycles starting in the late 1980s.
E. BMWSponsors Kumho BMW Championship in UK every year.
Formula One - BMW has won 19 grand prix as an engine supplier..
Sports car
Le Mans 24 Hours - BMW won Le Mans in 1999 with the BMW V12 LMR designed
by Williams Grand Prix Engineering.
24 Hours of Daytona - BMW won 1 time (1976) Rally
RAC Rally - The 328 sport car won this event in 1939.
Paris Dakar Rally - BMW motorcycles have won this event 6 times.
Tour De Corse - The BMW M3 - E30 won this event in 1987
47
CORPORATE SOCIAL RESPONSIBILITY
BMW is the first company in its industry to ever produce a CSR Annual Report, which
summarizes its achievements in "Corporate Social Contribution Activities" revolving around
'five pillars' – Cultural Promotion, Education Support, Environmental Protection, Corporate
Governance and Customer Integration.
The report also highlights the significance of the activities in BMW's long-term corporate
development, building a win-win situation within society.
Highlight 1: Cultural Promotion
BMW China and BMW Brilliance jointly launched 'BMW Corporate Social Contribution
Activities' in the summer of 2007, dedicating a large budget to promote nearly 20 projects
within 'five pillars'. Among them, "BMW China Culture Journey 2007" was the most
attractive and impactful project. During the exciting, 11-day journey covering over 3,500
kilometres, a fleet of 15 BMW vehicles drove all the way from Beijing to Dunhuang and
visited 11 "Material Cultural Heritage Projects" and 17 "Non-Material Cultural Heritage
Projects". A total of 1 million RMB was donated to provincial cultural departments. The
event called for the protection and restoration of state-level and provincial-level cultural
heritage sites and cultural practices, and was warmly-received nationwide. The CSR Annual
Report notes that as an important part of BMW's Corporate Social Contribution Activities,
the culture journey will continue in years to come.
In addition, in promotion of cultural communication and the arts, BMW also sponsored
several cultural promotion projects, including 'BMW Culture Night and 'BMW Night',
featuring performances by the Liaoning Ballet Tour Show and world renowned violinist Lv
Siqing.
Highlight 2: Education Support
As the key project in education support, BMW launched a long-term "BMW Children's
Traffic Safety Education" program. By providing transportation safety education through
attractive and engaging methods to over 2000 kids aged four to six years over 15 key cities,
the safety training camp generated a great amount of attention to children's traffic education
and transportation safety. Through this project, BMW has proven to be an industry leader in
children's traffic safety education.
Meanwhile, BMW is also actively promoting a five-year "BMW China Scholarship for
Outstanding College Students" project in cooperation with the Song Qing ling Fund by
CORPORATE SOCIAL RESPONSIBILITY
BMW is the first company in its industry to ever produce a CSR Annual Report, which
summarizes its achievements in "Corporate Social Contribution Activities" revolving around
'five pillars' – Cultural Promotion, Education Support, Environmental Protection, Corporate
Governance and Customer Integration.
The report also highlights the significance of the activities in BMW's long-term corporate
development, building a win-win situation within society.
Highlight 1: Cultural Promotion
BMW China and BMW Brilliance jointly launched 'BMW Corporate Social Contribution
Activities' in the summer of 2007, dedicating a large budget to promote nearly 20 projects
within 'five pillars'. Among them, "BMW China Culture Journey 2007" was the most
attractive and impactful project. During the exciting, 11-day journey covering over 3,500
kilometres, a fleet of 15 BMW vehicles drove all the way from Beijing to Dunhuang and
visited 11 "Material Cultural Heritage Projects" and 17 "Non-Material Cultural Heritage
Projects". A total of 1 million RMB was donated to provincial cultural departments. The
event called for the protection and restoration of state-level and provincial-level cultural
heritage sites and cultural practices, and was warmly-received nationwide. The CSR Annual
Report notes that as an important part of BMW's Corporate Social Contribution Activities,
the culture journey will continue in years to come.
In addition, in promotion of cultural communication and the arts, BMW also sponsored
several cultural promotion projects, including 'BMW Culture Night and 'BMW Night',
featuring performances by the Liaoning Ballet Tour Show and world renowned violinist Lv
Siqing.
Highlight 2: Education Support
As the key project in education support, BMW launched a long-term "BMW Children's
Traffic Safety Education" program. By providing transportation safety education through
attractive and engaging methods to over 2000 kids aged four to six years over 15 key cities,
the safety training camp generated a great amount of attention to children's traffic education
and transportation safety. Through this project, BMW has proven to be an industry leader in
children's traffic safety education.
Meanwhile, BMW is also actively promoting a five-year "BMW China Scholarship for
Outstanding College Students" project in cooperation with the Song Qing ling Fund by
48
providing scholarships totalling 2.5 million RMB to 500 outstanding students from 10
universities. 2007 was the third year of this five-year project. Apart from funding 100 distinct
college students per year, BMW also provided internship opportunities to 10 select students
at its Shenyang Plant. So far the project has received wide support and appreciation from
teachers and students.
Lighting up "The Flame of Life."
BMW personnel compose a song to show their support to children affected by the
earthquake.
"Let's stand shoulder to shoulder, lighting up the flame of life / Together embracing the bright
future". Following the Wenchuan earthquake, BMW staff members were moved to compose
and record an original song that would convey their support and love to the children in the
disaster area. Working at a professional recording studio, the group quickly completed the
song, entitled The Flame of Life. Although not professional singers, everyone truly sang their
hearts out, "lighting up the flame of life" and spreading strength, optimism and hope for the
future to those affected.
providing scholarships totalling 2.5 million RMB to 500 outstanding students from 10
universities. 2007 was the third year of this five-year project. Apart from funding 100 distinct
college students per year, BMW also provided internship opportunities to 10 select students
at its Shenyang Plant. So far the project has received wide support and appreciation from
teachers and students.
Lighting up "The Flame of Life."
BMW personnel compose a song to show their support to children affected by the
earthquake.
"Let's stand shoulder to shoulder, lighting up the flame of life / Together embracing the bright
future". Following the Wenchuan earthquake, BMW staff members were moved to compose
and record an original song that would convey their support and love to the children in the
disaster area. Working at a professional recording studio, the group quickly completed the
song, entitled The Flame of Life. Although not professional singers, everyone truly sang their
hearts out, "lighting up the flame of life" and spreading strength, optimism and hope for the
future to those affected.
49
Mutual respect and care.
BMW has always viewed its employees as the foundation and decisive element for its
corporate development. Creating space for its employees to grow is thus an important
objective for BMW. As a result, BMW's commitment to corporate social contribution is also
reflected internally, in attention to employee concerns, the working environment, and the
broader corporate culture. Indeed, BMW sees its employees as creators of the corporate
culture and partners in corporate social responsibility. Encouraging voluntary employee
participation in public welfare activities serves as an embodiment and extension of BMW's
corporate culture and emphasis on corporate social contribution.
Virtuous Actions, Endless Passion.
Hand in hand, contributing to reconstruction in Sichuan.
BMW joins with the China Charity Federation to establish the BMW Warm-Heart Fund.
The Sichuan earthquake, measuring 8.0 on the Richter scale, unleashed its destructive power
in just minutes -- but also instantly produced a tremendous outpouring of concern and
compassion. Together with the China Charity Federation (CCF), BMW China and BMW
Brilliance Automotive have set up the BMW Warm-Heart Fund, which will contribute to
reconstruction projects in the earthquake area. The Warm-Heart Fund also provides a
platform for BMW employees; BMW authorized dealers, BMW car owners as well as all
BMW fans to constantly gathering their love and generosity. It's a perfect channel for the
BMW community to show its support and contribute to reconstruction in the earthquake hit
Mutual respect and care.
BMW has always viewed its employees as the foundation and decisive element for its
corporate development. Creating space for its employees to grow is thus an important
objective for BMW. As a result, BMW's commitment to corporate social contribution is also
reflected internally, in attention to employee concerns, the working environment, and the
broader corporate culture. Indeed, BMW sees its employees as creators of the corporate
culture and partners in corporate social responsibility. Encouraging voluntary employee
participation in public welfare activities serves as an embodiment and extension of BMW's
corporate culture and emphasis on corporate social contribution.
Virtuous Actions, Endless Passion.
Hand in hand, contributing to reconstruction in Sichuan.
BMW joins with the China Charity Federation to establish the BMW Warm-Heart Fund.
The Sichuan earthquake, measuring 8.0 on the Richter scale, unleashed its destructive power
in just minutes -- but also instantly produced a tremendous outpouring of concern and
compassion. Together with the China Charity Federation (CCF), BMW China and BMW
Brilliance Automotive have set up the BMW Warm-Heart Fund, which will contribute to
reconstruction projects in the earthquake area. The Warm-Heart Fund also provides a
platform for BMW employees; BMW authorized dealers, BMW car owners as well as all
BMW fans to constantly gathering their love and generosity. It's a perfect channel for the
BMW community to show its support and contribute to reconstruction in the earthquake hit
50
area in the near future, and will also brought warmth and help to broader regions in the long
term.
Concept of BMW advertisement
BATTLE OF TWO
BMW and Audi are duelling again, but this time, onto the “marketing battle field”. And what
would be the best place to do so other than the one of the top states when it comes to car
luxury sales: California.
area in the near future, and will also brought warmth and help to broader regions in the long
term.
Concept of BMW advertisement
BATTLE OF TWO
BMW and Audi are duelling again, but this time, onto the “marketing battle field”. And what
would be the best place to do so other than the one of the top states when it comes to car
luxury sales: California.
51
On the corner of Santa Monica Blvd. and Beverly Glen Blvd (corrected the
location), Audi has put up some Billboards showing the all new Audi A4 along with the
headline: “Your move, BMW”. Santa Monica BMW, A local dealership, took on the
challenge and entered a virtual chess game ….of course, with cars rather than Pawns, kings or
queens.
Juggernaut Advertising, an independent advertising agency headquartered in Santa Monica,
CA, has initiated a
Tactical outdoor marketing campaign on behalf of BMW of Santa Monica. The campaign is
in response to
Audi’s current billboards challenging BMW with the headline “Your move, BMW.”
Juggernaut Advertising’s creative work features the BMW M3 with the headline
“Checkmate.” and is
Positioned .Prominently within the same sightline to westbound traffic as the Audi ad.
Juggernaut approached
BMW of Santa Monica after identifying a unique and immediate geographical opportunity
along the highly
Trafficked Santa Monica Blvd. corridor between Beverly Hills and Santa Monica.
“When we heard the idea, we loved it and couldn’t resist going forward,” says Del
Montell, Jr. of Santa
Monica BMW.
On the corner of Santa Monica Blvd. and Beverly Glen Blvd (corrected the
location), Audi has put up some Billboards showing the all new Audi A4 along with the
headline: “Your move, BMW”. Santa Monica BMW, A local dealership, took on the
challenge and entered a virtual chess game ….of course, with cars rather than Pawns, kings or
queens.
Juggernaut Advertising, an independent advertising agency headquartered in Santa Monica,
CA, has initiated a
Tactical outdoor marketing campaign on behalf of BMW of Santa Monica. The campaign is
in response to
Audi’s current billboards challenging BMW with the headline “Your move, BMW.”
Juggernaut Advertising’s creative work features the BMW M3 with the headline
“Checkmate.” and is
Positioned .Prominently within the same sightline to westbound traffic as the Audi ad.
Juggernaut approached
BMW of Santa Monica after identifying a unique and immediate geographical opportunity
along the highly
Trafficked Santa Monica Blvd. corridor between Beverly Hills and Santa Monica.
“When we heard the idea, we loved it and couldn’t resist going forward,” says Del
Montell, Jr. of Santa
Monica BMW.
52
The trouble began when BMW released an ad for its new 3-series and congratulated Audi for
winning the South African car of the Year award. Certainly an esteemed honour in it’s own
right, but BMW signed the congratulations with the line, “From the winner of the world
car of the year award 2006.”
Audi’s PR guerrillas, not willing to sit idly by while being assaulted in the print realm fought
back with the ferocity expected from the German carmaker. They parried BMW’s thrust with
an ad proclaiming that the “world car of the year award” was nice, but we’ve kicked butt
at LeMans for six consecutive years, so put that in your pipe and smoke it!
VIEWS
Clever advertising, BMW won the battle but Audi is winning the war. Audi has re-branded
them as the Progressive luxury car. Mercedes is catching up finally with the current redesigns
but how is BMW adapting? By offering maintenance for up to 50,000 miles.. Come on BMW
you can do better, maybe its time for a redesign as well.
BMW and Audi Ad War
The trouble began when BMW released an ad for its new 3-series and congratulated Audi for
winning the South African car of the Year award. Certainly an esteemed honour in it’s own
right, but BMW signed the congratulations with the line, “From the winner of the world
car of the year award 2006.”
Audi’s PR guerrillas, not willing to sit idly by while being assaulted in the print realm fought
back with the ferocity expected from the German carmaker. They parried BMW’s thrust with
an ad proclaiming that the “world car of the year award” was nice, but we’ve kicked butt
at LeMans for six consecutive years, so put that in your pipe and smoke it!
VIEWS
Clever advertising, BMW won the battle but Audi is winning the war. Audi has re-branded
them as the Progressive luxury car. Mercedes is catching up finally with the current redesigns
but how is BMW adapting? By offering maintenance for up to 50,000 miles.. Come on BMW
you can do better, maybe its time for a redesign as well.
BMW and Audi Ad War
53
CHAPTER 5
FINDINGS
AND
ANALYSIS
CHAPTER 5
FINDINGS
AND
ANALYSIS
54
BMW SWOT ANALYSIS
• Strengths
BMW is not the best biggest but the best car company in the world.
BMW has strongly influenced consumers through media and film industry.
Spartanburg demonstrates that BMW is firmly committed to the US market and
rededicated to the performance values that made BMW a cult here in the
1980s.
The Spartanburg plant can build 250 to 300 cars a day and production is set up to be
flexible so that it can produce several models on the same line in random
sequence.
The plant currently employs 1,500 people and the plan is to grow to 2,000 by the end
of this decade.
Spartanburg offer us the opportunity to develop a new set of relationships in North
America.
• Weaknesses
Their corporate image is too serious and tradition-bound.
BMW was perceived to be a German-made car, not an American-made car.
• Opportunities
The cars won't be that expensive as compared to German-manufactured cars.
This is BMW's first auto plant outside Europe. This is the chance for BMW to take a
step away from being a German car manufacturer towards its long-term goal of
becoming a truly global brand.
Spartanburg can really change what BMW stands for.
BMW SWOT ANALYSIS
• Strengths
BMW is not the best biggest but the best car company in the world.
BMW has strongly influenced consumers through media and film industry.
Spartanburg demonstrates that BMW is firmly committed to the US market and
rededicated to the performance values that made BMW a cult here in the
1980s.
The Spartanburg plant can build 250 to 300 cars a day and production is set up to be
flexible so that it can produce several models on the same line in random
sequence.
The plant currently employs 1,500 people and the plan is to grow to 2,000 by the end
of this decade.
Spartanburg offer us the opportunity to develop a new set of relationships in North
America.
• Weaknesses
Their corporate image is too serious and tradition-bound.
BMW was perceived to be a German-made car, not an American-made car.
• Opportunities
The cars won't be that expensive as compared to German-manufactured cars.
This is BMW's first auto plant outside Europe. This is the chance for BMW to take a
step away from being a German car manufacturer towards its long-term goal of
becoming a truly global brand.
Spartanburg can really change what BMW stands for.
55
•Threats
Other luxury car import manufacturers were rumored to have similar concepts
under development.
There are a lot of competitor luxury cars in the country.
Alternative Courses of Action
• Take the traditional marketing strategy of BMW. This is the traditional television and print
advertisement marketing strategy. The television and print ads will be utilized in order for the
new Z3 roadster be advertised all over the United States.
Advantages
In this way, the tradition of television and print advertising will be preserved.
It will be less costly for them to advertise the new Z3 model .
Disadvantages
Their goal of making the new Z3 model unconventional will be defied.
There will be less impact with regards to their new car model.
Strengths
BMW is a well-known company with a high status branding that has a very high recognition
factor. The company has been strengths in both research and development and design as well
as in marketing. For example when it comes to marketing it was a BMW advertisement that
was the first e-advertisement that made it to Campaigns 'Pick of the Week' (Doman).
However, in a long-term purchase such as this there is a need for moire substance than just
marketing, otherwise the life of the company would be relatively short due to the nature of
the purchase. It is in these longer-term systems and strategies that we can see many of the
strengths of BMW, we can consider these by starting with the market position of
thecompany.
•Threats
Other luxury car import manufacturers were rumored to have similar concepts
under development.
There are a lot of competitor luxury cars in the country.
Alternative Courses of Action
• Take the traditional marketing strategy of BMW. This is the traditional television and print
advertisement marketing strategy. The television and print ads will be utilized in order for the
new Z3 roadster be advertised all over the United States.
Advantages
In this way, the tradition of television and print advertising will be preserved.
It will be less costly for them to advertise the new Z3 model .
Disadvantages
Their goal of making the new Z3 model unconventional will be defied.
There will be less impact with regards to their new car model.
Strengths
BMW is a well-known company with a high status branding that has a very high recognition
factor. The company has been strengths in both research and development and design as well
as in marketing. For example when it comes to marketing it was a BMW advertisement that
was the first e-advertisement that made it to Campaigns 'Pick of the Week' (Doman).
However, in a long-term purchase such as this there is a need for moire substance than just
marketing, otherwise the life of the company would be relatively short due to the nature of
the purchase. It is in these longer-term systems and strategies that we can see many of the
strengths of BMW, we can consider these by starting with the market position of
thecompany.
56
BMW as well as Mercedes' and a few other companies have managed too successful attain a
market position where they have a focus on a narrow range of exclusive cars. These can be
seen as aimed at the market place that is not also sensitive to price, and as such we must
argue that the market positioning may be seen as a strength as there will not be such a
reaction if the economic conditions change. The customers that are in the target group are
happy to pay a premium price for what they perceive as a premium product (Thompson).
This may not be so true of the subsidiary companies that have had different problems, such as
the ill-fated Rover group. However, the core product has remained strong (Thompson). This
may be seen as diversification, and some of the diversification may also be seen as a strength,
for example the purchase of Rolls Royce where there is a similar strategy, however the range
and target market are even more focused and exclusive.
The strategy of BMW is designed to be defensive against other car manufactures, and as we
will see when it comes to the section on threats this is a defensive strategy that BMW have
adopted after learning the need for defensive as well as aggressive marketing and strategies.
BMW as well as Mercedes' and a few other companies have managed too successful attain a
market position where they have a focus on a narrow range of exclusive cars. These can be
seen as aimed at the market place that is not also sensitive to price, and as such we must
argue that the market positioning may be seen as a strength as there will not be such a
reaction if the economic conditions change. The customers that are in the target group are
happy to pay a premium price for what they perceive as a premium product (Thompson).
This may not be so true of the subsidiary companies that have had different problems, such as
the ill-fated Rover group. However, the core product has remained strong (Thompson). This
may be seen as diversification, and some of the diversification may also be seen as a strength,
for example the purchase of Rolls Royce where there is a similar strategy, however the range
and target market are even more focused and exclusive.
The strategy of BMW is designed to be defensive against other car manufactures, and as we
will see when it comes to the section on threats this is a defensive strategy that BMW have
adopted after learning the need for defensive as well as aggressive marketing and strategies.
57
CHAPTER 6
LIMITATIONS
CHAPTER 6
LIMITATIONS
58
The Limitations of the project are -:
TIME CONSTRAINST :-
Since the study was taken for a short period .so time was the biggest constraint.
RELIABILITY OF DATA :-
Since subject taken is vast so there are always possibilities that something may not
be forgotten to be mentioned .Data collected may not be 100% reliable and accurate.
SECONDARY DATA:-
It is secondary data so we can’t work upon it .It is not Primary data so we can’t use
statistical tools.
DIFFICULT PATTERN :-
Topic is very vast. Hence, Difficult to monitor the company and celebrity’s pattern
of endorsement.
The Limitations of the project are -:
TIME CONSTRAINST :-
Since the study was taken for a short period .so time was the biggest constraint.
RELIABILITY OF DATA :-
Since subject taken is vast so there are always possibilities that something may not
be forgotten to be mentioned .Data collected may not be 100% reliable and accurate.
SECONDARY DATA:-
It is secondary data so we can’t work upon it .It is not Primary data so we can’t use
statistical tools.
DIFFICULT PATTERN :-
Topic is very vast. Hence, Difficult to monitor the company and celebrity’s pattern
of endorsement.
59
CHAPTER 7
CONCLUSION
CHAPTER 7
CONCLUSION
60
The automotive industry is distinguished by a highly competitive market. Thus, the players
on the market struggle with increasing cost of production, development and mature markets.
With the aim to increase profit margins and reduce costs, Volkswagen, GM and Ford are
some companies, which use the same components in different car models and car brands.
These companies have in other words succeeded in synergising research and development
effects within the company despite car model and business area. By a contrast, BMW, an
individual actor, has yearly shown strong financial results and has retained its market shares.
This becomes of interest to study more profoundly, in order to find the factors behind
successful company and a strong brand.
Purpose: The purpose of this thesis is to analyse the development of BMW during the past
years. Not only are the financial statements taken into consideration. In addition, comparison
to competitors and the market situation is also made.
Delimitation and assumptions: This project is delimited to an analysis of BMW between the
years 2001-2005 basically. The thesis is based on the assumption that BMW is the most
successful automotive manufacturer in the premium segment.
Methodology: In the study of BMW mostly secondary data is used.
Results and Conclusion: BMW is a well known and highly valued brand and has high
diversity in the product portfolio. BMW possesses high internal competence and the company
develop a large part of the car by themselves. The emerging markets in South East Asia,
Russia, Eastern Europe and South America have shown evident growth developments.
Eminent production, transportation and raw material costs have both dampened margins and
affected the buying power of consumers likewise as high oil prices.
Suggestions for further studies: What would be of interest are the services that the
automobile manufacturers offer beside the cars, the after sales services, like financial services
for example. In addition, future research could also include studies of customer loyalty in
association to the after sales services.
The automotive industry is distinguished by a highly competitive market. Thus, the players
on the market struggle with increasing cost of production, development and mature markets.
With the aim to increase profit margins and reduce costs, Volkswagen, GM and Ford are
some companies, which use the same components in different car models and car brands.
These companies have in other words succeeded in synergising research and development
effects within the company despite car model and business area. By a contrast, BMW, an
individual actor, has yearly shown strong financial results and has retained its market shares.
This becomes of interest to study more profoundly, in order to find the factors behind
successful company and a strong brand.
Purpose: The purpose of this thesis is to analyse the development of BMW during the past
years. Not only are the financial statements taken into consideration. In addition, comparison
to competitors and the market situation is also made.
Delimitation and assumptions: This project is delimited to an analysis of BMW between the
years 2001-2005 basically. The thesis is based on the assumption that BMW is the most
successful automotive manufacturer in the premium segment.
Methodology: In the study of BMW mostly secondary data is used.
Results and Conclusion: BMW is a well known and highly valued brand and has high
diversity in the product portfolio. BMW possesses high internal competence and the company
develop a large part of the car by themselves. The emerging markets in South East Asia,
Russia, Eastern Europe and South America have shown evident growth developments.
Eminent production, transportation and raw material costs have both dampened margins and
affected the buying power of consumers likewise as high oil prices.
Suggestions for further studies: What would be of interest are the services that the
automobile manufacturers offer beside the cars, the after sales services, like financial services
for example. In addition, future research could also include studies of customer loyalty in
association to the after sales services.
61
CHAPTER 8
SUGGESTIONS
CHAPTER 8
SUGGESTIONS
62
Some of the suggestions that company should take care of are -:
The BMW group should launch a small lifestyle car which can be afforded by
middle-class people its market share can be extended.
Its accessories and parts of cars are expensive for maintenance which can reduce
the desire of people purchasing its cars.
The company should keep on a regular check on its rivals so that product
development can be done accordingly hence contributing towards growth of the
firm.
Some of the suggestions that company should take care of are -:
The BMW group should launch a small lifestyle car which can be afforded by
middle-class people its market share can be extended.
Its accessories and parts of cars are expensive for maintenance which can reduce
the desire of people purchasing its cars.
The company should keep on a regular check on its rivals so that product
development can be done accordingly hence contributing towards growth of the
firm.
63
BIBLIOGRAPHY
The Following References are taken in consideration for the preparation of this Project.
Website / Webpage
http://www.bmw.in/in/en/
http://www.bmw.com/
http://www.bmwgroup.com
http://www.infibeam.com/cars/make/bmw.html
http://bmw-motorsport.com/ms/en/index.html
http://www.bmwblog.com/
http://www.zigwheels.com/b2cam/home.action
BLOGS
http://www.bmwblog.com/
Books
Chhabra ,T.N , Marketing Management , NaiSarak , Delhi , DhanpatRai& Co.(Pvt)Ltd, 2012
Magazine & Newspaper Articles
AUTOCAR INDIA
BMW AUTHENTIC
ZIGWHEELS
What’s HOT?-Hindustan Times
BIBLIOGRAPHY
The Following References are taken in consideration for the preparation of this Project.
Website / Webpage
http://www.bmw.in/in/en/
http://www.bmw.com/
http://www.bmwgroup.com
http://www.infibeam.com/cars/make/bmw.html
http://bmw-motorsport.com/ms/en/index.html
http://www.bmwblog.com/
http://www.zigwheels.com/b2cam/home.action
BLOGS
http://www.bmwblog.com/
Books
Chhabra ,T.N , Marketing Management , NaiSarak , Delhi , DhanpatRai& Co.(Pvt)Ltd, 2012
Magazine & Newspaper Articles
AUTOCAR INDIA
BMW AUTHENTIC
ZIGWHEELS
What’s HOT?-Hindustan Times
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