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BMW European Marketing Study Case Kotler

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  1. 1. Presented by: Mewen Olga Philvie Sonia
  2. 2. CONTENTS About BMW Presentation of the Case Consumer Research + Targeting SIGMA Research + Results SWOT Update European Perspective 4 P’s Marketing Strategy Q&A
  3. 3. ABOUT Bayerische Motoren Werke (BMW) Bavarian Motor Works 1916 Aircraft engines 1923 Motorcycles 1928 Automobiles HQ in Munich, Germany 2001 Owns and produces the MINI brand 1998 Is the parent company of Rolls-Royce Motor Cars Known for its performance and luxury vehicles
  4. 4. CONSUMER RESEARCH During late 90s “Tastes are changing. Customers are slicing the market into Attitudes and values of luxury-car more focused pieces. It's becoming more differentiated…. To buyers were changing be successful, you have to fulfill 100% percent of customers' expectations...” More emphasis on family and leisure time Chief Executive. Helmut Panke Research indicated that people TARGETING would want more vehicle choices, eye-catching designs to suit their changing lifestyles Only targets the premium-priced cars Doesn’t compete in every segment of the industry Focuses strictly on luxury sector (MINI is smaller than Honda Civic, but priced about 2.500€ more)
  5. 5. SIGMA RESEARCH Method of predicting shifts in consumer tastes Beyond demographics (age, income etc) Interview consumers for hours Photographs their homes and offices Build a picture of the mindset of different consumers PREDICTION “...There would be significant expansion of the luxury car market..” As the yuppies (quot;young urban professionalquot;) declined, other groups with different upscale mindsets would increase in number Suggested 4 segments... ...BMW reacted
  6. 6. 1.4 Upper Liberals ? Socially conscious Open-minded professionals Often with families BMW X5 Were successful in the 90s Driving Volvo, Saab and SUV SAAB VOLVO
  7. 7. 2.4 Post-moderns ? High-earning innovators (architects, entrepreneurs, artists) Highly individualistic Open towards “head-turners” (convertibles and roadsters) Rolls-Royce Phantom 3.4 Upper Conservatives Wealthy, traditional thinkers Jaguar Never were interested in driving sporty cars Consider luxury and comfort over driving performance Strive for elegance and sophistication Would purchase S-class Mercedes and Jaguar Mercedes S-class
  8. 8. 4.4 Modern Mainstream Family oriented ? Active Consider BMW too expensive Increasing number are moving up above the middle class Mini Cooper Purchase the near-premium brands (Honda or Volkswagen) Honda Volkswagen
  9. 9. SWOT Opportunities L Strengths L Geographic coverage EU expansion (more market share) A A Great brand image reputation Growing demand for “green” cars Premium car brand N N Customers want cheaper cars Understanding of customer’s needs&wants Growing demand for BMW in China R R Heavy investment in R&D Threats Weaknesses E E Perception of very high prices Decline of the dollar against euro Buyer sophistication/knowledge T T Crisis High cost German product development base Rising prices of raw materials X N (More and more competitors shift product development activities to lower cost countries) Competition E I
  10. 10. UPDATE An all-electric version of the two-door Mini Cooper BMW Z4 Roadster The Z10 ED is expected to become a new car in the future Striving to have hydrogen replace gas as the long term alternative to fossil fuel BMW 118d wins World Green Car of the Year in 2008 Peugeot to focus on building a very modern family of economical engines BMW invest in sustainability teaching aids for students: “H2- Mobility of the future”
  11. 11. 4 P’s Product Price Muscled/luxury car Flexible payments Attractive design Low rate loans Powerful engine Seasonal offers Safety Distinctive car Leasing facilities Multi purpose automobile Brand prestige High mileage guarantee High technologies
  12. 12. Place 4P’s Promotion Media/Internet Plenty of dealerships Advertising Second hand Sports sponsorships (F1 distribution networks team particularly) Wealthy Presence in high class neighborhoods events Brand Loyalty Push and Pull strategies Children Marketing Owner' clubs
  13. 13. WEBSITE
  14. 14. F1 TEAM WEBSITE
  15. 15. European Perspective Take in consideration Europeans‘ purchasing power decrease Reduce sales price Make promotional offers (using States’ subvention) Diversify options Sustainable development Higher European decrease of CO2 emissions (an average of 16g/km in 2008) Strengthen its financial assets Difficulties to make reliable sales previsions for 2009 due to crisis
  16. 16. European Perspective High technologies BMW Active Hybrid (Hydrogen & Electric systems) Efficient Dynamics (System Start/Stop) Biometrics recognition
  17. 17. 1.3 Q&A What is the importance of consumer research? Present time find out where you stand on the market Future find out consumers preferences predict ruptures and trends keep the company’s image gain market shares
  18. 18. 2.3 Q&A How challenging is it to match segmentation to product development? Position of the brand Understanding of future consumers needs Change in tastes Creating a product that match expectations
  19. 19. 3.3 Q&A Were BMW brave to pursue the product development strategy they did in light of the research findings? Yes! SIGMA is a good research company, but... 3 new car models bring a lot of risk
  20. 20. THANK YOU Presented by: Mewen Olga Philvie Sonia