Assignment-3-Marketing-Plan-Bmw
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Contents Executive Summary ................................................................................................................................................. 2 Company Background ........................................................................................................................................... 4 Financial Overview 2016 ....................................................................................................................................... 5 Current Market Situation ...................................................................................................................................... 9 Competitive Landscape .................................................................................................................................... 9 In-depth Promotion .................................................................................................................................... 10 Macro Environment ......................................................................................................................................... 11 Demographic ................................................................................................................................................. 11 Economic ......................................................................................................................................................... 11 Technology ..................................................................................................................................................... 12 Environment................................................................................................................................................... 12 Target Segment ................................................................................................................................................ 13 Demographic Overview (for the i3) ...................................................................................................... 14 SWOT Analysis................................................................................................................................................... 14 Strengths ......................................................................................................................................................... 14 Weaknesses .................................................................................................................................................... 16 Opportunities ................................................................................................................................................ 17 Threats.............................................................................................................................................................. 18 Objective .................................................................................................................................................................. 19 Marketing Strategy .............................................................................................................................................. 20 Product ................................................................................................................................................................. 20 Price ....................................................................................................................................................................... 20 Promotion ........................................................................................................................................................... 20 Place ...................................................................................................................................................................... 21 1 Integrated Marketing Communications Strategy:................................................................................... 24 Message ............................................................................................................................................................... 24 Media Type ......................................................................................................................................................... 24 Media Vehicles .................................................................................................................................................. 24 Measurement..................................................................................................................................................... 25 Budget .................................................................................................................................................................. 25 References ............................................................................................................................................................... 27 Executive Summary Bavarian Motor Works (BMW) was founded March of 1916 in the German State of Bavaria, originating from the merger between three other manufacturing companies into one, initially manufacturing aircraft engines up until 1929 when they purchased an automobile manufacturing company and began manufacturing their own. Since then they have been an industry leader excelling in both performance and luxury. Today, they operate in 140 different countries featuring multiple brands including BMW, MINI, and Rolls Royce, BMW's sales increased globally by 5.2% in 2016, and their revenue increased by 2.0% as well. The top selling model series was the 3 series, though the largest change in sales was seen in the BMW X1, with its sales increasing by 82% until Q3. BMW is competitively priced capturing both the lower end of the segment with their basic models and the higher end with numerous add ons. For the Luxury performance segment the M4 delivers exceptional quality and performance while maintaining a mid-range price as compared to others such as, Lexus, Audi, Mercedes, and Alfa Romeo. In terms of marketing, it is promoted as the total package, combining race inspired performance with unbeatable luxury with a focus on the twin 6 cylinder engines that provide the power of this beast. It is sold globally in 140 countries, selling just over 2 million units last year, 38,000 of which to the Canadian market . 2 The outside environment looks poised for BMW to have continued success. With a market driven by older consumers, with customers over 50 purchasing 55% of all goods in Canada it falls right into our demographic target. On the other hand, world economics have become fragile, citing the fallout and policy changes from the US election and Brexit among others. Technologically, we are always striving to innovate and keep up with the market, and innovate new solutions. In keeping with the goal of selling 100,000 PHEV and EV’s in 2017, BMW is committed to a healthy environment. Our electric models produce less than half the global warming emissions of comparable gas vehicles. We want to appeal to younger market in the future. Our ideal customer would be a young professional in their late 20s or early 30s. They should have an upscale, and urban lifestyle, and have a higher than normal income of $100,000+ annually. Equally marketed to both men and women, they would be single, or newly married with no kids due to the compact size of the i3. They would ideally be tech-savvy and environmentally conscious. 80% percent of these buyers would be new to BMW and by targeting them would create brand equity early on. BMW is strong hiring 100,000 new employees in 2016 to expand the business. However, the raw materials cost of 47% of each vehicle is one of the highest in the industry. That being said, the Chinese market provides growth opportunities as new regulations have made it a ripe environment for PHEV and EV’s. This comes with threats as well, as the Norwegians have banned the sale of new fossil-fueled cars for the next decade. 3 Our IMC strategy is simple with the main message being purchasing from the iPerformance lineup provides consumers with top-notch luxury and performance while benefitting the environment, to better the future for all. We rely on traditional media types, heavily focusing on television, and cinematics but also utilizing out of home billboards in high traffic areas in urban centers to reach our older target. We will air these on large scale sporting events and upscale lifestyle channels, as well using product placement on premium shows and networks. Our budget for this campaign is $350 million to spend on all marketing activities for the iPerformance line. This campaign will be successful if we achieve our objective of selling 100,000 PHEV and EV models in 2017. 4 Company Background BMW (Bavarian Motor Works) was founded March of 1916 in the German State of Bavaria, originating from the merger between three other manufacturing companies into one, initially manufacturing aircraft engines up until 1929 when they purchased an automobile manufacturing company and began manufacturing their own. The company was formed as a company after a restructuring of the Rapp Motorenwerke aircraft manufacturing company in 1917, which was then forced to no longer produce aircraft engines due to the Treaty of Versailles, in turn they had taken the opportunity to start manufacturing motorcycles in 1923, and then vehicles in 1928 (BMW