Question

In the Marketing Project Report, each of you will be submitting a project report (individually) on a brand of your choice (E.g. Apple, Pfizer, Unilever, Coke, BMW, Nike, IBM, Cisco, Harley Davidson, KFC, McDonald's, British Airways, Gucci, Toyota, Rolls Royce, Tim Horton's).

What you need to write in the report? Here is what your report will cover, written by you in your own words (no copy and paste, strictly your own creative and professional writing):-

Brand: Information on brand you have selected

It's Target Market

It's Market share and

It's History

Solution it is offering in form of products and services

Name those product/services (add images)

What is brand's complete marketing strategy?

What is its Corporate Social Responsibility

Answer 1

INTRODUCTION

Bayerische Motoren Werke AG commonly referred to as BMW, is a German multinational company which produces luxury vehicles and motorcycles. The company was founded in 1916 as a manufacturer of aircraft engines, which it produced from 1917 until 1918 and again from 1933 to 1945.

BMW is headquartered in Munich and produces motor vehicles in Germany, Brazil, China, India, South Africa, the United Kingdom, the United States and Mexico.

The name BMW is an abbreviation for Bayerische Motoren Werke (German pronunciation). This name is grammatically incorrect (in German, compound words must not contain spaces), which is why the name's grammatically correct form Bayerische Motorenwerke (German pronunciation) has been used in several publications and advertisements in the past. Bayerische Motorenwerke translates into English as Bavarian Motor Works.

LOGO

The circular blue and white BMW logo or roundel evolved from the circular Rapp Motorenwerke company logo, which featured a black ring bearing the company name surrounding the company logo, on a plinth a horse's head couped.

SLOGAN

The slogan 'The Ultimate Driving Machine' was first used in North America in 1974. In 2010, this long-lived campaign was mostly supplanted by a campaign intended to make the brand more approachable and to better appeal to women, 'Joy'. By 2012 BMW had returned to 'The Ultimate Driving Machine'.

HISTORY

In August 1918, Bayerische Motoren Werke GmbH became a stock corporation. But the end of the First World War brought a halt to the construction of aircraft engines, as the Treaty of Versailles forbade Germany from building them. So BMW shifted its focus to railway brakes and built-in motors. This was so successful that the Berlin-based brakes company Knorr-Bremse AG took majority ownership of BMW in 1920, integrated the company and relocated to Munich. Bayerische Motoren Werke GmbH as an independent company disappeared temporarily from the scene – albeit not for long.

In 1922, the major investor and aircraft construction pioneer Camillo Castiglioni was the main shareholder of Knorr-Bremse AG. He bought the BMW company name and took over engine construction operations, along with the employees, production facilities and company logo, and transferred everything to BFW, Bayerische Flugzeugwerke AG.

In the same year, the company moved into BFW’s factory buildings in Lerchenauer Strasse and changed its name to Bayerische Motoren Werke AG. And that’s how the BMW name found its way into the commercial register for a second time.

All this means that BMW AG is the legal successor of BFW. The corporate headquarters and parent plant of the BMW Group are still located at the former BFW site in Milbertshofen, Munich to this day. And there’s something else the aircraft manufacturers bequeathed to BMW AG, too: BFW’s founding date of March 7, 1916 is considered to be BMW’s official birthday.

TARGET MARKET OF BMW

The luxury car manufacturer segments its offerings on the basis of demographic, psychographic and Behavioural factors.

A typical customer of BMW is the one in the mid-age (35-50), is excelling in his/her career, have a taste of aspirational products & values his own social status. The benefits required by these people are superiority, performance, reliability & quality.

BMW targets customers from the upper class social group as they are the people for whom BMW will be affordable & moreover they will appreciate the masterpiece. The global frontrunner, BMW has positioned itself as a symbol of quality, technologically advanced, high performance & exclusive automobile brand.

COMPETITIVE ADVANTAGE

Continuous process improvement & technological advancement in its R&D is the core of the competitive advantage of BMW. It is known for its quality, reliability & superior customer service support. BMW has adopted policy of customer service=growth driver as an underlying principle to grow its market.

It is Present in 150+ countries around the world, Europe & North America is the market from where 65% of its sales come from but with the advent of growing developing nations like Asian markets, company started focussing on these markets aggressively to drive the future sales. It has a Strong product portfolio from BMW M –Convertible, BMW – 3 & 5 series – sedan, touring to BMW X3 /X5 –SUV and have strong presence in every segment.

SWOT ANALYSIS

BMW X3 /X5 –SUV is Question mark.

BMW – 3, 5 & 7 series – sedan, touring is Stars since these are the models that tops the sales under the BMW’s portfolio.

BMW Z4, M & 6 series is star.

BMW MINI will always be a star because of competition from Beetle.

Rolls Royce is a cash cow and the Brand driver for BMW.

MARKET ANALYSIS

In an ever growing automobile market where growth of Luxury segment is something which is noticeable. Rising demand of luxury cars in Asian markets, changing lifestyle & growth rate of 33% in developing nation like India is something due to which the sales are rising and people are foraying into this premium segment of cars.

Large numbers of players are now fighting to eat each other over market share. In developing nation company’s like Mercedes & Audi are playing aggressively while BMW is not able to sustain in these markets. Another advantage for these car manufacturers is the support of number of loans available for the purchase of vehicles in developing countries.

PROMOTIONS

One of the key points which makes BMW a unique brand is its promotions. BMW has over time established and reestablished itself to be a very smart marketer. Majority of the promotional campaigns of BMW market the products based on their superior technological advantages, design, and how it is meant to be for the premium people.

DISTRIBUTION STRATEGY

The exclusivity of the stores is definitely a factor to leverage on for BMW; the company had & will continue to invest in the creation of flagship stores, so as to maximize the consumer experience. At the same time company is also expanding the number of authorized dealers.

BMW is currently operating its business through its 6000+ dealerships around the world. The logistics partners are the Local players in the respective country who help in making the product available to the customer @POS (point of sale).

DIFFERENT MODELS

A. BMW 3 Series

B. BMW 5 SERIES SEDAN

C. BMW 8 SERIES GRAN COUPE

CORPORATE SOCIAL RESPONSIBILITY

BMW Group India partnered with Magic Bus, for a focussed skill development program to provide livelihood opportunities to youth. The program was a logical extension of our previous “Sports for Development” engagement with Magic Bus. The project focuses on training disadvantaged youths and supports them in achieving their personal and professional goals by successfully moving into sustained employment or job-based training.

The “CSR Policy” encompasses the company’s philosophy for delineating its responsibility as a responsible corporate citizen. We constantly endeavour to integrate the company into society by addressing key issues through partnerships with implementation partners.