BMW(Karan Khanna & Soumya Nair Section - C)

8/8/2019 BMW(Karan Khanna & Soumya Nair Section - C)

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MARKETING MANAGEMENT

BMW

STRATEGIES SOUMYA NAIR 07KARAN KHANNA 44

Section C , M&S(09-11)


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HISTORY OF BMW The origins of BMW trace back to 1913 when Karl Friedrich Rapp, a

Bavarian who had been a well-known engineer in a German aircraftcompany, formed Rapp Motoren Werke in a suburb of Munich.

The company expanded too quickly, however, BMW was founded in 1916and headquartered in Munich.

Rapp Motoren Werke merged with Gustav Flugmaschinefabrik to form

Bayersiche Flugzeungwerke. It was shortly afterwards renamedBayersiche Motoren Werke (Bavarian Motor Works), or BMW, formingthe company we know today.


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BMW has operations in 120 countries all over the world.

1997 production of 12 Lakh vehicles.

BMW is parent company of MINI and Rolls Royce.

BMW technology now allows buyers to design their own models from

350 variations, 500 options and 90 exterior colors and 170 trims.

Company claims that 80% cars bought in Europe and 30% in US are built

to order


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BMW: Selling an Emotional Product that Fulfills

Wishes for Status

To buy a BMW is an attempt to purchase status. BMWs

success, despite all the technological advancements to which

the company can rightly claim, is far more dependent upon thesuccessful branding of their product.


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STRATEGY IN INDIA

Luxury car maker BMW India has achieved 100 per cent

growth in its car sales this year. BMW India have already

sold 2,908 cars by the end of 2008 year against 1,387 in

2007.

The car maker plans to strengthen its dealer network bystepping into tier II markets of Ludhiana, Bhubaneshwar,

Jaipur and Coimbatore by 2009 end. Presently, 12 dealers

represent BMW in the Indian market.


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BMW INDIA - CARS AND PRICES


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CAR / MODEL APPROX PRICE IN LACS(on road delhi) ENGINE cc/cylinder

3 SERIES

320i 325i

320d

27.033.0

29.7 30.7

1995 / 42497 / 6

1995 / 4

5 SERIES

520d

525i

530i

530d

36.9

40.9

46.2

43.2 46.8

1995 / 4

2497 / 6

2996 / 6

2993 / 6

6 SERIES

650i Coupe

650i Convertible

79.6

87.9

4799 / V8

4799 / V8

7SERIES

730Ld

740Li

750Li

760Li

79.38

85.80

93.30

133.92

2993 / 6

2979 / 6

4395 / 8

5972 / 12

XSERIES

X3 2.5si

X5 4.8i

X5 3.0d

X6

41.9

79.0

55.9 62.9

2497 / 6

4799 / V8

2993 / 6

ROADSTER

Z4


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SALES AND COMPETITORS


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BMW GROWTH


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MARKETING MIX

Metropolitan cities Delhi, Mumbai,Bangalore,Hyderabad. (Tier Icities)

Limited promotion

Mainly in Car xpo

New Launches

Price range varyfrom 28 lakhs to1.5 crores

Series

5 Series

series

series

Series

PRODUCT PRICE

PLACEPROMOTION


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POPs and PODs

When BMW made a strong competitive push into the US market in early

1980s it positioned the brand as being the only automobile that offered

both luxury and performance. As American luxury cars were lacking performance and performance cars

were lacking luxury

BMW was able to simultaneously achieve

1. A point-of-difference on luxury and point-of-parity on performance

w.r.t performance.2. A point-of-difference on performance and point-of-parity on luxury

w.r.t luxury.

This justifies the slogan THE ULITIMATE DRIVING MACHINE and this slogan captured the newly created

umbrella category Luxury Performance Cars.


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LINE FILLING

BMW has morphed from one-brand, five model car maker into three-

brand, 10 model power house. Not only has the car maker expandedBMWs product range downward with mini-coopers but it also has built

it upwards with Rolls-Royce.

The company has used line filling successfully to boost its appeal to

wannabe-rich, the rich and the super-rich.


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BMW(Karan Khanna & Soumya Nair Section - C)

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