Marketing Of BMW

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E-Marketing Strategies adopted by BMW. : 

E-Marketing Strategies adopted by BMW. BY- ASHISH PAREEK PGDM-IB(A.S.M.)


CONTENT Company profile Sales report Product strategy Scenario before 2001 Turning point -2001 Target audience Present marketing strategies


COMPANY PROFILE BMW (Bayerische Motoron Worke Aktiengesellschaft) was founded in 1916 and publicly traded since 1969. The company produces and markets a varied range of higher end sporty cars and motorcycles. It also operates an aircraft engine division under the brand name of Rolls Royce. The company has worldwide subsidiaries and manufacturing plants in 13 countries namely (Germany,Austria,UK,USA,Mexico,Brazil,SouthAfrica,Egypt,Thailand,Malays-ia,Indonesia,Vietnam and Philippines)

Product Split of BMW : 

Product Split of BMW

Slide 5: 

Brand Recall

Sales figure from 1996 to 2006 : 

Sales figure from 1996 to 2006 Impact of INTERNET MARKETING is visible (30% growth)

Sales volume for 2007-2008 : 

Sales volume for 2007-2008 Fall by 8.2%

Product Offensive Strategy : 

Product Offensive Strategy FEATURES : In the early 2000s, BMW began to restructure its business. It focused on strengthening its position as the market leader in the premium segment of automobiles across the world. In line with this, it adopted a product offensive strategy which aimed at flooding the automobile market with new launches (i.e. a new product every three months). BMW increased its R&D expenditure by 53% to support this strategy. Some of the new cars launched as a part of this strategy were Mini One, Mini Cooper, new BMW 3 Series Compact, new BMW 7 Series and Z4 Roadster. By 2002, BMW had overtaken Mercedes and stood second in the premium segment of the US automobile market, next only to Lexus


THE STORY BEFORE 2001… Before 2001 the majority of BMW’s success is attributed to the development of consistent marketing policy, the “market niche” strategy. The company had four core values Technology, Quality, Performance, Exclusivity The company used advertisements as a means of marketing and these advertisements evolved in response to economic, environmental and competitive changes.

Promotion strategies before - 2001 : 

Promotion strategies before - 2001 Radio advertisements TV and Print ads Brochures and Price lists Events and Trade fairs. Bus Advertisements

Turning Point - 2001 : 

In year 2001, they launched, “The Hire” (a film series consisting of five different short films) has been singled out as the first high profile, big-budget, celebrity-laden Internet marriage of advertising and entertainment. Traffic to the site was up 55% to 214,000 unique visitors compared to only 138,000 the previous week. (according to Web measurement, firm Nielsen/Net Ratings) Turning Point - 2001

Slide 12: 

Average work-hard, play-hard customer was 46 years old, with a median income of about $150,000. Two-thirds were male, married, and had no children. As BMW sliced and diced its market further, an interesting statistic surfaced: Roughly 85% of BMW purchasers used the Internet before purchasing a BMW In addition to the BMW Films series the promotional campaign consisted of TV spots that copied trailers, and print and online advertising, which were designed to drive consumers to the web site (Hespos, 2002). TARGET AUDIENCE :

Slide 13: 

Never before (or since) had an automotive company taken such a strong stance to drive consumers to the Web, and the results are compelling. More than 10 million films have been viewed from Nearly 2 million people registered on the site, with 60% of those registrants opting to receive more information via e-mail. An astonishing 94% of registrants recommended films to others, seeding the viral campaign, and more than 40,000 people voluntarily responded to a survey. RESULTS :

The guerilla public relations campaign : 

The guerilla public relations campaign The guerilla public relations campaign utilized several diverse promotion tactics including seeding news of the BMW Films at key Internet entertainment rumor sites and a radio DJ program in 20 key metro markets. BMW sales increased by 12.5% compared to 2000, surpassing the 200,000 mark for the first time in history.

BMW Car maker uses web mostly to drive its brand. : 

BMW Car maker uses web mostly to drive its brand. Car manufacturer BMW takes the phrase 'beyond the banner' seriously. In its ads for the BMW Compact, the car drives out of the banner ad and around the sides of the browser window, to show how much it "loves corners". BMW's online strategy is highly brand-driven in the UK, with clickthrough considered to be a side benefit.

Slide 16: 

The company has used traditional banners, banners with pull-down menus, Superstitials, transitional ads which appear between pages, sponsorship and dynamic html ads like the one mentioned above to promote its brand message--the benefits of ownership in terms of the driving experience. The car company's research shows that of the people who were exposed to its online advertising in a particular environment and then visited, more than 80 percent did not click through straightaway, but visited later. This shows, says BMW, that they had retained the brand message, even after leaving the banner.

Slide 17: 

SUPERSTITIALs are highly interactive, non-banner ads that can be any size on the computer screen and up to 100K in file size, featuring full animation, sound and graphics capable of effectively conveying integrated advertising while protecting a Web site's performance. SUPERSTITIALs can be used to achieve multiple advertising goals, including branding, direct marketing, commerce and entertainment. SUPERSTITIAL ads play only once fully loaded, ensuring that every user gets a consistent and complete brand message and that each advertiser pays only for guaranteed impressions.

Marketing Channels : 

Marketing Channels Internet 468x60 banners are sold on a run-of-site (ROS) basis, meaning, they will appear on every search results page and on an equal rotating basis with other advertisers' banners. For online ads, each advertiser is given password-protected access to Real-Time advertising statistics, Television The percentages of viewers of MSNBC and Bravo who are in BMW’s target income bracket constitute 20.5%. The percentage of viewers in BMW’s target age group (25-34) is 26.5%. Print DVD


RESULTS OF THE CAMPAIGN In 2001, BMW sales increased by 12.5% compared to 2000 During the four month core of the promotion, the films were viewed more than 11 million times Clickthrough on that Superstitial was 4.7 percent,


E-COMMERCE IN BMW The BMW group uses e-commerce strategies to explore the market for effective business. The group sees e-commerce as both a challenge and an opportunity for the entire company. The BMW Groups production network is characterised by agility, the ability to respond quickly and flexibly within a changing framework The BMW group introduced an online ordering system in 1998 which gives dealers the option of showing customers their desired car on the screen and confirming the delivery date on the spot.

Slide 21: 

Through the system, the time frame when the vehicle can be built with the desired fitting is fixed in few seconds and the place in the production process is immediately reserved and the manufacturing logistic department informed The BMW group has optimised internal processes to such a level that changes according to the customer wishes regarding engine capacity, colour upholstery can be accommodated up to ten working days before the start of the production without effecting the delivery BMW, utilises the internet as an integral tool for developing superior customer relations, through providing an environment inclusive, both to existing and potential customers, through expressing views and providing feedback on product development

Slide 22: 

BMW is the leader in New Zealand’s booming luxury car market, holding a 24.5 per cent market share Last year, New Zealanders snapped up a total of 1,600 new BMW vehicles of all types. In 2002 customer database system was Unitrac contact management system GoldMine was a critical component of BMW’s shift from a sales orientation to an organization-wide customer-centric focus. BMW chose GoldMine because it offered several key benefits: Offer excellent value of money Customization to individuals requirements Company has single view of customer relationship increasing the company’s ability to ensure satisfaction. GoldMine enables us to get a snapshot of the environment incredibly quickly Implementation of CRM

Present Marketing Strategies : 

Present Marketing Strategies E-mail Marketing e-catalogue Brochure Registration for test-drive Mail alert Personalization message News alerts New car launches Used car specials Events VIP Club Info -Concerts, musicals, movies and related show information BMW accessory offers Customer Thank you and congratulation brochures Campaign For Its Luxury Certified “Pre-Owned. We Swear.” Program Excellent information.

Major e -Marketing strategies : 

Major e -Marketing strategies Website Registration Forms: Permission based forms allow web visitors to subscribe with automated notification allowing confirmation of subscription and thank you messages. Registrations for Events and New Vehicle Test Drives: New Vehicle promotions and Event Registrations are sent out via email, allowing customers to easily register via online forms, advising what time and day they would like a test drive. Brisbane BMW are notified via email lead sheets and customer registration data is automatically compiled in a registration database making it ideal for tracking and follow up. Registering customers also receive an auto reply advising they have been booked in and will be contacted. Service Reminders and Offers: Service reminders and special offers are emailed frequently as a cost effective and powerful way of keeping services up to date whilst allowing customers to take advantage of special offers. Sale Events Notices: Regular sales event brochures are emailed to prospects and customers advising of great purchasing opportunities. Accessory Offers: The BMW accessory range is frequently promoted using email catalogue brochures.

BMW Z4 : 

BMW Z4 BMW recently launched an email marketing campaign for the release of the long awaited Sporty new Z4 Convertible to a select group of customers. The purpose of the campaign was to generate interest for Test Drives. The campaign design included attractive graphics detailing the impressive characteristics of the Z4 branded Test Drive Registration forms allowing instant responses from interested recipients Within 24 hours of the 1303 recipients who the brochure was sent to, 55% read the email with 8.6% responding and 4% registering instantly for a test drive.

Slide 27: 

Bibliography Case study Brisbane BMW

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