BMW MARKETING PLAN BRIEF
KEY SECTIONS
1. THE BACKGROUND
The BMW Group is one of the world’s most
successful manufacturers of automobiles and motorcycles and ranks among
Germany’s largest industrial companies. It is also the only automobile company
in the world represented in all relevant premium segments, with the brands of
BMW, MINI & Rolls-Royce.
The UK is a key market for the business and
the company has invested £1 billion since 2000 in developing and modernising
its manufacturing facilities for its three brands. In 2008 BMW UK turnover was
£3.3 billion of which the BMW brand accounted for sales of 113,132 cars. The company
sells to private individuals via its retail distribution network which employs
around 11,000 staff across 148 car dealerships (fleet managers who purchase
large volumes deal direct with BMW UK). These dealerships are independently
owned businesses and are not part of the BMW group although they do receive
financial incentives from BMW if they meet agreed sales targets. The
relationship between dealer and manufacturer is a close one with BMW
responsible for major brand building campaigns whilst the dealerships often run
their own small scale campaigns such as to persuade customers to use them for
the servicing or repair of their car or to invite customers to new car
launches.
2.
Strategic challenge
Sustainability is a key objective for BMW
and the company has already taken steps to improve fuel efficiency across its
range of cars. Taking this one step further, in 2011 BMW launched the i
sub-brand as well as the BMW i 3 and BMW i 8 concept cars. BMW i stands for
sustainable mobility in the premium segment and coincides with a belief that
premium cars are being increasingly defined by their sustainability. In 2013 the i 3 concept car will enter full
production and will need to compete not only with other electric/hybrid cars
such as the Toyata Prius and Nissan Leaf but also with combustion engine cars
that a consumer may decide to purchase. As the first BMW produced all-electric
car, the BMW i 3 faces a number of challenges not least is its price: £35,000.
It also has an image issue in that the company’s existing products are
positioned as ‘the ultimate driving machine’ which brings to mind speed and a
hedonistic lifestyle which is quite a different proposition to the one normally
associated with electric or dual fuel cars. However, consumer perceptions may
vary based on age, income, education level etc.
The car itself comes with a number of
innovative features including an electric bike, the i Pedelec, which will allow
urban buyers to cycle for the final part of their journey. Two i Pedelecs can
be folded and mounted in the back of the i3, and their batteries recharged. The
car’s cabin features a host of sustainable materials, with tweed-like wool used
on the seats as a nod to its focus on British fashion. Wood also features
prominently on the dashboard. There are flat panels rather than dials, and the
look is very minimal to make the car as intuitive to use as possible.
3. Marketing
and sales aims
·
Achieve sales of £17.5m (500 cars) in 2013
·
To build a reputation as a manufacturer of premium electric cars
4.
Customer segments
Current
BMW drivers migrating to an electric car.
These customers have already bought into the
brand and are the lowest cost to convert.
Taking the whole BMW range:-
Series 1. The most cost effective model and
usually purchased by aspirational drivers who want to drive a BMW but cannot
afford a higher spec model. This segment in the main is unlikely to purchase a
BMWi3 for affordability reasons
Series 3. This segment is most likely to
purchase due to affordability and currently drive a mid range BMW.
Series 5, 6,7, less likely to purchase as
like the power and speed of a combustion engine. The BMW i3 would also be
considered too small to a traditional driver of one of these cars
Series X – Four wheel drive owners –
unlikely to compromise and change to a smaller electric car
Z4/ M Series –Cars traditionally purchased
for speed/power
The most likely segment of the current
database to purchase would be 3 series drivers although the i 3 may be
purchased either as a second car or for a spouse by a driver of one of the
large 5, 6 or 7 series cars (research shows that 91% of electric car owners
already own another car). The database
will need to be segmented into model purchase and price paid in order to be
able to target those most likely to convert.
5.
Product launch
The 2013 launch BMW UK saw a concept store
in London being opened and for the first stage of the launch it was envisaged
that only a small number of dealerships located within major urban areas will
be selected to sell the i 3. For the foreseeable future the i3 is likely to account
for only a very small proportion of BMW car sales in the UK.
Your Task
Using the case study provided on BMW
i3: answer to the question below:
Question:
Based on your knowledge
of marketing strategy produce an outline marketing plan for the next
year for BMW i3.
You will need to conduct a thorough external marketing audit
(PESTEL) for BMW i3. Then use a SWOT to analyse and consider additional
external/internal factors. Use all this
information to review some of the key strategic options available to the
company, i.e. You need to state your objectives for the marketing plan you are
recommending for the BMW i3 . Use the marketing mix to highlight key tactical
issues the BMW i3 will face as it grows its market within the UK.
Your plan should include the application of a range of
models theories and concepts from the Principles of Marketing Management course
content.
Recommended structure for the plan:
Executive Summary
Contents page
1.0
Introduction
1.1
General discussing to
introduce the BMW i3
2.0
External Audit – PEST/PESTLE
2.1
Make sure this focuses on
the external analysis for the i3 and not any other BMW model.
3.0
SWOT
3.1
Again make sure your
analysis supports the BMW i3.
3.2
Complete your SWOT with
your understanding of the strategic issues arising from your SWOT analysis
which are necessary to build your marketing plan
4.0
Marketing objectives
4.1
Produce 3 / 4 objectives
to support your plan – remember your objectives need to be SMART.
4.2
This is where you take
ownership of the plan –it is your recommended plan based on your analysis that
you are now presenting. You do not analyse BMW i3 anymore. The plan is an
outcome of all of your analysis complete in your PEST and SWOT.
5.0
Tactical issues of plan to be discussed using the marketing
mix i.e. 4 / 7 Ps
5.1 In this section you present your recommended marketing plan
using the marketing mix. What do you think is the right plan for the continued
growth of the BMWi3
6.0
Budget, Implementation & Control
6.1 While you might not be able to get budget costs, you still
need to recognise how the budget will be created and how your plan will be
implemented and controlled
For Quality Research Projects, Assignments, Dissertations, Theses: kojalajohn12@yahoo.com
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