BAYERISCHE MOTOREN WERKE

(bmw)

ByRohit Khandelwal Vikram Jhalani Siddhi Shruti Desai

FOUNDER(S) - FRANZ JOSEF POPP

FOUNDED IN - 1916

PRODUCT- Automobiles, Motorcycles, Bicycles

HEADQUARTERS - Munich, Germany

Revenue - 60.48 billion (2010)

Profit - 3.218 billion (2010) Employees - 95,450 (end 2010) Subsidiaries - Rolls-Royce , mini cooper TOTAL CAR PRODUCED IN 2010 - 1,481,253

HEADQUARTER

BMW was founded in 1913, when Karl Friedrich Rapp set up Bayerische Fligzeug-Werke to manufacture aircraft engines in the Munich district of Germany. 1916 World War I, the company manufactured aircraft engines for the Austrian Hungarian Army.
1917 due to short of funds Rapp collaborated with Camillo Castiglioni & Max Friz & the company rechristened itself as Bayerische Motoren Werke GmbH. Finally in 1918 Franz Joseph Pope took over the company & named it as BMW AG.

1919 company started to manufacturing railway brakes.

1923 started manufacturing motorcycle engines and launched first model R32, a 500cc shaft driven motorcycle, designed by Max Friz. In late 1920s BMW came into car manufacture.

1928 company came up in market with its first car called BMW 3/15.
In world War II, company started making again aircraft engines and took a back seat.

1952 company again began car production but fail to premium segment of cars but later on came up with BMW 700 in sedan segment. 1970, company targeted export market & finally increased its export to US, America & Australia by 1980.
BMW launched a line of luxury cars to compete with Mercedes Benz. 1994, BMW acquired British car manufacture ,M G Rover & gained the ownership of the companys successful brands like MINI & LAND ROVER.

In 2000 BMW sold M G Rover few brands. 1998, both BMW & Volkswagen vied with each other to purchase Rolls Royce. After 2003, BMW acquired the rights of Rolls-Royce and got the rights to use its name and logo. BMW launched the new model of new Rolls-Royce Phantom . In early 2000, BMW launched new cars in its 1 series & 6- series in the entry level cars, and the large coupe and convertible segment.

In 2005, company recorded a sales volume of 1,334,426 units in automobiles alone.

As of end 2005, it provided marketing, sales and financial services for some 340 BMW dealership, 330 BMW SAV dealership, 150 BMW motorcycles retailers, and around 80 MINI dealership.

BMW : The Ultimate Driving Machine

Initially BMW focused too much on two words Driving and Performance in their advertising campaign. BMW then became synonym for driving which was also added to the tagline The Ultimate Driving Machine.

Company was never bothered about the overemphasis on Performance Driving because of the momentous growth rate that it experienced.

Going Beyond The Yuppies :

Yuppie Stands for Young Urban Professional who are highly educated and upwardly mobile. Rise in sales by 62 % in 2005 as compared to 2004. 75% of luxury car buyers did not consider BMW at the time of purchase. That is the reason BMW wanted to go beyond the yuppies and target the larger amount of customers. New advertising contract was given to GSD&M with the motive to RE- POSITION the brand from its current one dimensional focus on performance.

How BMW can define its TARGET GROUP.

Age.

Gender
Location Income level Educational level Occupation

Targeting The CREATIVE CLASS

Emerging Creative class Engineers, musicians, artists, entrepreneur etc. Creative class of people Influential Class of consumer. People who were loyal to the company and stood by it.

THE COMPANY OF IDEAS CAMPAIGN

New Ads Projected BMW as Company Of Ideas

Emphasis on performance features

BMW highlighted its autonomy and commitment to protect new ideas

Environment sensitivity Won the Pritzker Architecture Prize in 2004

Reactions to the campaign

Originality concept - good idea to expand the customer base. - change in perception of customer. Bad advertising - insecurity. - what is the need of explaining themselves?

Vehicle Production
Vehicle Production (units) BMW MINI Rolls-Royce Motorcycles 2004 10,59,978 1,89,492 875 93,836 2005 11,22,308 2,00,119 692 92,012 Growth Rate (in %) 5.9 5.6 -20.9 -1.9

Region-Wise Revenue of BMW Group2005(in%)

Asia

North America

Rest of the Europe

UK

Germany

Other Regions

THANK YOU