BMW has achieved market leader position in the luxury car segment for 2nd consecutive year - 2010

43% of market share in luxury car segment. 73% growth over 2009. Sales of 6426 units in 2010. Competitor Mercedes Benz sold 5819 units. Presently employs 400 employees. 4/20/12

Situation analysis:

Political;

PESTEL analysis: tax in

Increase in Value added Germany from 16 to 19%

Labor cost control in Europe, had led BMW to expand its production to US Economical; Crises in other industries, leads decrease in the growth rate of German economy. Exchange rate of Euros over Dollars decreases the productivity 4/20/12

Social; Increase in older population of European countries New strategies. Increase in usage of transportation in Europe. public

Technological; Increase in developments of technologies in todays world. To catch up with the competitors, BMW needs more R&D. 4/20/12

Environmental; Consumers are aware of ecological problems BMW need improvements in engine technologies.

Increase in number of consumers, who prefer more environmental friendly vehicles than fuel consumption. Legal; Introduction of fuel consumption declaration, which incurs high costs. The change in legislation of tax provisions 4/20/12

Porters five forces model in Germanys automobile industry.

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New entrance; (Low) high capital expenditure

Strong brand images. Power of buyers; (High) large number of substitutes and high pricing strategy Particular segment; limited number of buyers.substitute; (Low) Threat of Substitutes of industry can be said public transportation and motorcycles, which concerns 4/20/12

Power of suppliers ; (Medium) low switching costs of manufacturers Huge number of suppliers. Competition; (High) High bargaining power of consumers. Increase in the developments from direct competitors like Mercedes Benz, Jaguar and Audi. 4/20/12

SWOT analysis Strengths; BMW Good brand image Latest technology Superior driving experience Low cost and qualified workforce in China Strong connection with suppliers Reputation for its product quality 4/20/12

Strong cash flow position

Weakness; High prices (only high class consumers) Direct substitute products and technology Environmental issues Pollution Increased cost of production and maintenance costs 4/20/12

Spendings on promotions

Opportunities; New products (Demand for small cars are increasing) Expand the business to new markets Economic upturn in Germany Technological Developments (e.g. Alternative energies) 4/20/12

Threats; Increase in taxes Scarcity of resources (Raw materials) Lower income Increase in oil prices Changes in exchange rates Economic recessions 4/20/12

New legislations

To make the new BMW E-Series as a customer inspiring car within the first year. Create awareness among the target market approximately around 70% during the first year. by

Marketing Objectives of BMW E-Series

Position the brand BMW E-Series as a luxurious, unique and reliable product in the market by the end of the first year. To achieve 30% of market share from the target market by end of 2012. Increasing the dealers network and develop the market to three more segments. Make easier for the customers to access test drives and 4/20/12 product information.

Financial Objectives of BMW E-Series 1.5 To achieve a target profit of billion by the end of first year. Increase the companys profit margin by 8.6% and hold the double-digit growth rate of the company. To attain a target sales volume of 50,000 units within the first year. 4/20/12

Introduction of New Product BMW ESeries BMW E-Series is a car specially designed for senior Managers and Executives of Organizations. Busy managers do not have much time to study and plan the thoughts before their meetings, where this car fits best for those individuals. 4/20/12

Marketing Strategy

Major features include:

Wi-Fi facility Programmed workplace interiors Located desktop screens on sides of the car Cam aided driving Signaling mechanism to reduce accidents Accommodates at least 8 people

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Target Market:

Managerial oriented customers High-income male professionals Senior employees of world recognized organizations, like Apple, Google, Microsoft. Government senior officials such as Ministers, Deputy Ministers,

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Strategic Push: Strategic Push defines the Ansoff matrix.

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Product development strategy;

Introduction of BMW E-Series Targets the existing market, Germany, UK, Italy, USA, France, Russia, and China. Special promotional campaigns and advertising strategy to built the heart and mind share of the customers.

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Competitor targets;

Competition increases due to high barging power of customers To defend those competitions from direct competitors; Reducing the direct substitute of BMW E-Series features. Reducing quality problems of ESeries. Developing more distributional 4/20/12 channels.

Market shares per manufacturer in Germany

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Percentage of total revenues by brand

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Competitive Advantage;

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Marketing mix decisions Product; Launching E-Series to fulfill the high customer expectations from the managerial level employees. Product is highly reliable and innovative

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Product lifecycle of BMW ESeries;

Increase the duration at the stage, through as promotional, distributional and pricing strategies. 4/20/12

Marketing mix decisions

Promotions; Advertising TV, Social networks, magazines Arranging meetings with the top priority target audience. Launch the BMW E-Series campaign under the slogan The ultimate review on the way. Faster response to test-drive 4/20/12 request.

Marketing mix decisions Price;

Special leasing arrangement will be provided for customers at the target audience at the introductory stage of the product. 4/20/12

Marketing mix decisions Place;

Through BMW Potential licensed dealers Appointing dealers for other targeted regions. Conducting trainings and seminars to increase the customer retention and profitability. 4/20/12

Marketing Budget

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Action Plan

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Marketing strategy and implementation

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Control

Controlling mechanism is developed through balanced scorecard system. It is monitored based on the marketing objectives and marketing mix

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Controlling mechanism

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Conclusion

Increase in competitions - it is crucial for BMW to build new marketing strategies and achieve more market share. The new product (BMW E-Series) will defend the premium image of BMW, besides will increase the productivity of the Group. 4/20/12

Thank you 4/20/12