The 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 aircraft company, formed Rapp Motoren Werke in a suburb of Munich. The company specialized in airplane engines however Rapp found that they were problematic and suffered from excessive vibration. Nearby, Gustav Otto, also an airplane specialist, set up his own shop, Gustav Flugmaschine fabrik, building small aircraft. Presentation Transcript

Because of the faulty engines, Rapp Motoren Werke secured a contract with Austro-Daimler, who was unable to meet its demands, to build V12 Aero engines under license. The company expanded too quickly, however, and by 1916 Rapp resigned from the company because of financial troubles. In his place Franz Josef Popp and Max Friz, two Austrians, took over the company. In March that same year, Rapp Motoren Werke merged with

Gustav Flugmaschinefabrik to form Bayersiche Flugzeungwerke. It was shortly afterwards renamed Bayersiche Motoren Werke (Bavarian Motor Works), or BMW, forming the company we know today. In 1917, BMW's first aircraft engine went into production, the 6 cylinder Type IIIa. In 1919, using an aircraft powered by its successor, the Type IV, Franz Zeno Diemer set an altitude record of 9,760 meters (32,013 ft) After the Treaty of Versailles was signed in the same year, prohibiting BMW from building aircraft engines, production switched to air brakes for railway cars. When BMW started once again to build aircraft engines in 1922, no fewer than 29 world records in aviation were set with them. The current BMW logo, introduced in 1920, was based on the circular design of an aircraft propeller.

A couple of years later, with BMW still having no secure financial foothold, one of the most memorable models in its history was introduced. Launched in 1956, the BMW 507 quickly became famous. The light-alloy 2-door bodyshell with a retractable soft top, designed by Alberecht Graf Foertz, has remained timeless as evidenced by the newly introduced Z8, which draws unmistakable clues and its overall shape from it. A large 3168cc V8 engine using dual downdraught carburettors powered the 507 and provided 150 horsepower at 5000rpm, enough for an impressive 124 mph top speed (200 km/h) but not enough to topple its main rival, the Mercedes 300SL. While only 252 examples of the instantly recognizable 507 were ever produced, it remains a symbol of BMW's struggles and ultimate triumphs during the fifties after the end of the War. Today, the Z3, Z8 and all of the 3, 5, 7 and Motorsport series models continue the BMW tradition of building excellent automobiles with a special emphasis on performance, style and technological advancements. 1992 was another year-to-beremembered for BMW when it, for the first time, outsold Mercedes in Europe. Hopefully in the future the rivalry between these and other makes will persist and companies such as BMW will continue to build great cars.

E-Marketing Strategies adopted by BMW.

E-Marketing Strategies adopted by BMW. BY- ASHISH PAREEK PGDM-IB (A.S.M.) CONTENT: CONTENT Company profile Sales report Product strategy Scenario before 2001 Turning point -2001 Target audience Present marketing strategies

Company Profile:
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,Thail and,Malays-ia,Indonesia,Vietnam and Philippines)

Product Split of BMW:

Product Split of BMW

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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:

THE STORY BEFORE 2001 Before 2001 the majority of BMWs 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 BMWFilms.com, 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

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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:

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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 BMWFilms.com. 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 click through considered to be a side benefit.

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The company has used traditional banners, banners with pulldown 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 BMW.co.uk, 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.

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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 runof-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 passwordprotected access to Real-Time advertising statistics, Television The percentages of viewers of MSNBC and Bravo who are in

BMWs target income bracket constitute 20.5%. The percentage of viewers in BMWs target age group (25-34) is 26.5%. Print DVD

Result Of The Campaign:

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 Click through on that Superstitial was 4.7 percent,

E-Commerce In BMW:
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 characterized 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.

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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 optimized internal processes to such a level that changes according to the customer wishes regarding engine capacity, color upholstery can be accommodated up to ten working days before the start of the production without effecting the delivery BMW, utilizes 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

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BMW is the leader in New Zealands 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 BMWs 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 companys 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.

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Bibliography www.autointel.com www.mwerks.com Case study Brisbane BMW www.google.com www.bmw.com

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Marketing Strategy of BMW

Bayerische Motoren Werke AG (info) (BMW), (literally English: Bavarian Motor Works) is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini brand, and is the parent company of RollsRoyce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands. BMW is known for its performance and luxury vehicles, and is in fact global leader in premium car sales. After World War I, BMW was forced to cease aircraft (engine) production by the terms of the Versailles Armistice Treaty.[2] The company consequently shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted,[3] followed by automobiles in 192829.[4][5][6]

The circular blue and white BMW logo or roundel is portrayed by BMW as the movement of an aircraft propeller, to signify the white blades cutting through the blue sky an interpretation that BMW adopted for convenience in 1929, twelve years after the roundel was created.[7][8] The emblem evolved from the circular Rapp Motorenwerke company logo, from which the BMW company grew, combined with the white and blue colors of the flag of Bavaria, reversed to produce the BMW roundel. However, the origin of the logo being based on the movement of a propeller is in dispute, according to an article recently posted by the New York Times, quoting "At the BMW Museum in Munich, Anne Schmidt-Possiwal, explained that the blue-and-white company logo did not represent a spinning propeller, but was meant to show the colors of the Free State of Bavaria." [9]

BMW Marketing Innovation

since the competition started to imitate BMWs advertising messages of outstanding quality, BMW decided to come up with a unique way of reaching its target audience. The company did so by hiring Fallon Worldwide, and advertisement agency based in Minneapolis, MN, to come up with a new campaign. Fallon developed the concept The Hire series. Fallon's responsibility also included the way in which these movies were to be delivered to BMW's target audience. It was also questionable whether the campaign should be the same throughout the world, or if it should be localized to adapt to language and consumer taste differences. In order to attract highly recognized directors, as well as actors,

BMW was willing to spend a large amount of money. In addition to coming up with a unique advertising campaign, BMW also wanted to change their image. One of the goals was to make BMW look, not only cool, but likeable, which the brand needs to do to combat negative perceptions some people have based on old associations with the 80s style yuppie arrogance. Company Profile BMW (Bayerische Motoren Werke Aktiengesellschaft) was founded in 1916 and has been publicly traded since 1969. The company produces, and markets, a varied range of higher end sporty cars and motorcycles. BMW has also manufactured the

first passenger car running on hydrogen ready for common use, although the production figures are limited by the lack of a respective filling station net. In addition to cars and motorcycles, BMW operates an aircraft engine division under the brand name of Rolls Royce. The company has worldwide subsidiaries and manufacturing plants in Germany, Austria, the UK, the USA, Mexico, Brazil, South Africa, Egypt, Thailand, Malaysia, Indonesia, the Philippines and Vietnam. The company also operates its own financing company, which offers financing for vehicles. Automobiles accounted for 78% of 2000 revenues; vehicle finance leasing, 18%; motorcycles, 3% and other, 1%.

Global marketing strategy of BMW

A BMW 7 Series sedan is displayed inside the BMW 7 Series Mobility Lounge which the German automakers Korean unit opened in Cheongdam-dong, one of the wealthiest districts in southern Seoul, to cater to the buyers of the flagship luxury sedan. / Courtesy of BMW Korea

German automaker targets premium segment only and succeeds

By Park Young-ryeol The world has continued efforts to globalize the market. Global players, including BMW, a prominent automaker from Germany,

are vigorously articulating marketing strategies to create value that better serves customer needs. Firms eloquently and heavily emphasize marketing functions because they play a critical part in identifying gaps in the market and developing new products and services to fill those gaps. BMW seems to understand this logic of the necessities for global marketing in an ideal manner to perform beautifully in the Korean market. In order to create a successful marketing plan, managers must configure the varying aspects of marketing mix and identify precise market segmentation to understand different patterns of customer purchasing behavior. BMW implemented a different marketing mix to sell cars to different socioeconomic segments, aggressively emphasizing premium segments. BMW initiated the goal of segmenting the premium market by optimizing the fit between the purchasing behavior of consumers and the marketing mix to maximize sales to that segment. Responding sensitively to unique values and purchasing behavior enabled BMW to transcend intended performance.