Assignment-3-Marketing-Plan-Bmw

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

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 .

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.

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.

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 Dixi) after a licensing agreement with Austin Motor Company was agreed upon to make a variant of their Austin 7. BMW operates globally under their multiple brands, BMW, MINI as well as Rolls-Royce. They operate 31 production and assembly facilities Sales Volume of BMW within 14 different countries, as well as Vehicles by Model Series in units having sales networks

1 Jan to 30 Sept 1 Jan to 30 within more than 140 Models % CHANGE (2016) Sept (2015) countries globally, BMW 1 with a workforce of 129,081 131,955 -2.2% Series over 120,000.

Financial Overview 2016

BMW 2 BMWs sales increased 146,690 110,066 33.3% Series globally by 5.2% in BMW 3 311,915 331,656 -6.0% 2016, and their Series revenue increased by BMW 4 100,369 114,151 -12.1% Series 2.0% as well. The top BMW 5 selling model series 251,351 258,842 -2.9% Series was the 3 series, BMW 6 10,178 15,201 -33.0% though the largest Series change in sales was BMW 7 41,752 25,187 65.8% Series seen in the BMW X1, BMW X1 149,670 82,258 82.0% with its sales BMW X3 116,702 100,137 16.5% increasing by 82% BMW X4 44,316 40,920 8.3% until Q3. The i series BMW X5 121,608 125,739 -3.3% had gone down by BMW X6 31,907 32,857 -2.9% 2.5% up until the end BMW Z4 4,335 6,235 -30.5% BMW i 20,062 20,576 -2.5% of Q3. Which is why BMW Total 1,479,936 1,395,780 6.0% BMW must change their marketing strategy to boost sales in more eco-friendly vehicles. (BMW Group, 2017)

(BMW Group, 2017)

Current Market Situation Competitive Landscape Product (Specs) Price (CAD) Promotion Place BMW M4 425 HP $76,500 – $123,914 Total package, race Globally 4.1s 0-100km/h, inspired mixed with 2.003 million units 13.7L/100km City luxury. Twin turbo sold in 2016, up 9.1L/100km straight 6 5.2% from 2015 Highway Warranty emphasis. (1.905 million) for 4 Canada (2016) years/80,000km 38,012 sold Lexus RC F 425 HP $85,400 – $91,799 Track, sports Globally 677,500 4.1s 0-100km/h, inspired vehicle, units sold in 2016, 13.7L/100km City suitable for the up 4% from 2015 9.1L/100km streets and (652,000) Canada Highway Warranty blended with (2016) 22,509 sold for 4 luxury. years/80,000km Audi S5 354 HP $65,600 – $75,840 Style and Globally 4.7s 0-100km/h, performance mixed 1.871 million units 13.0L/100km City with a more sold in 2016, up 8.5L/100km utilitarian vehicle 3.8% from 2015 Highway Warranty Quattro AWD (1.803 million) for 4 drivetrain. “Sleek Canada (2016) years/80,000km and Sporty” 30,544 sold Quattro AWD drivetrain. Mercedes C63 469 HP $77,100 – $109,405 Track inspired Globally AMG 4.1s 0-100km/h, performance and 2.197 million units 10.8L/100km City aerodynamic, sold in 2016, up 6.7L/100km fuzzed seamlessly 10% from 2015 (2 Highway Warranty with the million) for 4 quintessential Canada (2016) years/80,000km Mercedes Benz 46,445 sold class. Appealing to the more established older

demographic. Alfa Romeo Giulia 505 HP $87,995 – $106,740 Quintessential Europe Quadrifoglio 3.9s 0-100km/h, Italian design, 66,200 units sold 12.8L/100km City meets state-of- in 2016, up 16.5% 7.5L/100km the-art technology from 2015 (56,688) Highway Warranty and race inspired Canada (2016) 68 for 4 performance “ sold years/80,000km mozzafiato” Italian for “ breathtaking”

In-depth Promotion

BMW M4: The M4 series is marketed as the total package featuring several racing innovations while maintaining the quality and standard of luxury. They emphasize the twin turbo engines as a selling point for the performance of the vehicle. Another selling feature is that the car almost fully customizable if you're inclined to pay for add-ons. For target market, the M4 is promoted to men and women 30-50 years old with relatively high income. These individuals see BMW as a status symbol but still want a vehicle that they can take to tear up the track. Audi S5: Similar to the M4, the S5 focuses on performance and style, with the main importance being on performance. It features a slight edge on the M4 in this area but overall is more utilitarian due to its Quattro permanent AWD drivetrain that is suited to any terrain. The target market for the Audi S5 is similar to the BMW M4, but is seen as more affordable. Audi has unveiled the upcoming RS5, which will compete at a closer edge to the others in the segment.

Alfa Romeo Giulia Quadrifoglio: Alfa Romeo is an emerging competitor in the North American luxury sports car market. Alfa Romeo was reintroduced to North America a few years ago after two decades, Alfa Romeo focused on bringing chic iconic Italian style and

flair to the table. Perfectly blending their state-of-the-art technology, race inspired performance and sleek styling. Again, same target group as M4 and S5.

Lexus RC F: The RC F was put out as a direct answer to the M4 and S5 in the luxury sports car market. It again strives to deliver racing level performance while maintaining the peak of luxury and sleek aggressive styling. Because of the price, the target market skews older, and wealthier than the M4, but still competes with it for top end market share.

Mercedes-Benz C63 AMG: Mercedes-Benz tries to promote its brand and cars such as the C63 AMG the very top end of the segment, it follows just as all other cars in the luxury sports market a focus on performance and luxury in its design. With a blend of the iconic styling of Mercedes Benz, and the raw performance power of their AMG division the Mercedes-Benz C63 AMG delivers above and beyond the others for racing. The target market is the same as the M4, as they are very similar in both product and brand perception, both being the peak of German engineering.

Macro Environment Demographic The global population is consistently growing at a fast rate, as a result markets will anticipate a demand of environmentally friendly vehicle inventory. As the population increases life expectancy is as well, Stats Canada indicates as in other developed countries, life expectancy has increased in Canada and is projected to continue to rise. BMW’s target market falls under the high-income earners and with life expectancy increasing in future generations this may create a demand for more vehicles. Consumers 50 plus currently buy 55 percent of all consumer goods, as they reach their peak earning and spending years.

Economic A number of factors play a role in the uncertainty likely to persist with regard to future economic and political developments. The 2016 Annual Report Indicates these factors include the negotiations between the UK and the EU following the Brexit vote and the future

course of the new US administration. In addition, financial stability is becoming problematic with high sovereign debt levels in Europe and Japan, more restrictive monetary policies in the USA and high levels of corporate debt in China have not diminished compared to 2015. According to the 2015 Annual Report the positive currency impact was mainly attributable to the change in the average exchange rates of the US dollar, the Chinese Renminbi and the British pound against the Euro. In the case of an economic crisis consumers will not have available income to spend on vehicles on the market. If there is rise in interest rates consumers may be reluctant to spend money on new higher end vehicles.

Technology New technology, digitization, increasing automation, and new business models have revolutionized the automotive industry. These innovative forces are giving rise to technology-driven trends in the automotive sector like diverse mobility, autonomous driving, electrification, and connectivity. Technology is essentially the main aspect for BMW. Competitors use new technology to provide an improved performance versus other companies. BMW has already established to purchase technology to be able to keep its competitive benefit and also offer higher quality vehicles. For instance, there are consistent technology transfers from BMW i model to the BMW core brand. The technologies developed for BMW i are now also being incorporated in the models of the BMW core brand. This includes battery cells, the electronic control unit and electric drives from the i3 and i8 models as well as their expertise in lightweight construction. The improvements on the automobiles incorporate new trends, that use new and stylish design to beat the lowered margins on the market.

Environment Consumer preferences for new concept of environment care such as sustainable eco- friendly hybrid and electric vehicles is more apparent than ever. A broad range of innovative, efficient drivetrains plays a crucial role in the increasingly stringent requirements for the reduction of emissions levels. On average, electric vehicles sold today produce less than half the global warming emissions of comparable gasoline-powered vehicles. With global warming concerns increasing consumers are becoming more aware and responsible about

their vehicle choices and prefer vehicles that are environmentally friendly. BMW first anchored an environmental protection policy within its organizational strategy in the 1970 ’s. The company now regards environmental sustainability as core to all aspects of its operations. Sustainability principles apply throughout the entire BMW's supply chain, in the design and operations of its products and processes, as well having nearly all parts of BMW vehicles and production waste recyclable. Water and energy consumption have long been minimized during production, as has waste.

Target Segment Declan is a 30-year-old investment banker with an above average income. He does not have much interest in cars but, he is an avid health and fitness buff, growing up playing lacrosse, hockey and other sports. He also has a keen eye for finding new vegan restaurants to eat at and spends his weekends volunteering at an animal shelter with his wife. He is very technologically savvy, and has a desire to help save the environment and is quick to adopt new technologies. Declan is a more liberal minded person, who lives a life of luxury and looks to the BMW company as, a brand. He is an early adopter of the electric car, and lives the life in an urban city, with his wife and their two dogs. They live the life of "DINK's". He strives to make others know of his success, lifestyle and possessions; especially his environmentally friendly, fully electric BMW i3. He has not previously owned a BMW but, is contemplating purchasing a second one for his wife. Declan adores the futuristic styling and technology behind the i3 as well as the fact it incorporates recycled material in its construction (GmbH) and feels the utility of it, with its hatch and compact design is perfect for him to lead his urban lifestyle.

Despite not knowing much about cars, Declan loves the thought of being able to charge up his car at the office as well as any of the free charging stations throughout the city, as well as at home at the end of the day. He knows that despite the much more limited range (130- 160 km) compared to a conventional internal combustion engine, he is doing good things for the environment and acknowledges that despite its drawbacks, he is saving money with the lack of maintenance costs, as well as gas. He also loves the interconnectivity between the car and his phone, that it offers. Declan is proud to drive a BMW i3, and knows that the

engineering behind it is second to none, well worth its $45,300 price point, and he also receives $13,000 in rebates from the government.

Demographic Overview (for the i3) Young professionals

Upscale, urban consumer

Equally marketed towards men and women

Higher than average income $100,000+

Single or newly married with no children due to its compact size

Aimed towards tech-savvy and environmentally conscious individuals

80% of BMW i3 buyers are new to the BMW Group and common for households to own two i3’s

(Read) (Boeriu)

SWOT Analysis Strengths

BWW upholds many strengths in the luxury car industry. Being one of the leading brands worldwide, they aim to be the dominant car brand. To uphold this position by the end of 2016 BMW hired over 100,000 employees. This was a significant increase compared to other years due to the demand in more advanced innovation. Specialist in alternative drivetrains and automated driving were hired along with additional experts in financial services business and expansion in mobility services. According to the 2016 annual report the increase was primarily due to the expansion of international production; in result of this network and financial services business skilled workers and IT specialists were recruited for future-oriented areas, such as

software architecture and development, artificial intelligence and autonomous driving (BMW Group, 2017). BMW Group attracts top talent with numerous rankings amongst engineering, IT and business graduates, which has helped with gaining the talent needed to implement digitization in all the business segments. BMW understands the importance and value of educating their associates to ensure the best quality vehicles are made and sold. In 2016 the company invested 350,000- million-euros towards vocational and professional training. The company prides itself in developing the future generation. Changes in technology are moving at a rapid rate and collaborations between research and development is becoming even more customary in the automotive industry. Research and development is a very important part of BMW’s role in innovation and being a leading premium manufacturer. As a part of BMW efficient dynamics strategy there are continual efforts undertaken to improve energy efficiency and reduce emissions across the full range of automobiles. In the last year BMW employed over 13,000 people at 13 locations in five countries worldwide and invested over 5 million in research and development for the BMW Group’s research and innovation networks. With the expansion in electric vehicles, BMW is focused on continually reducing CO2 emission levels in their vehicles to create more sustainable products for its customer base and the future. This initiative has progressed in 2016 into 2017, due to the expansion of the model range and annual sales of electrified BMW vehicles increasing. At the same time, the BMW Group continues to push the boundaries of premium to new levels with its BMW i models. The vehicles are designed to the core for even greater sustainability, the BMW i embodies the vehicle of the future with its electric drivetrain, intelligent lightweight construction, exceptional design and newly developed range of mobility services. The BMW Group is currently the world’s most successful premium provider of plug-in hybrid vehicles. In 2017 they will release two more models: the BMW 5 Series iPerformance and the MINI Countryman. These will be followed in 2018 by the BMW i8 Roadster. A year later, they will launch an all-electric MINI and in 2020, an all-electric BMW X3. BMW is focused on creating common platforms and architectures for economical industrialization of combustion engines with efficient dynamics technology and

electrification across all brands and model series (BMW Group, 2017). BMW proves to dominate the electric car industry by becoming a more sustainable brand that can stay relevant with the latest innovation and top quality technology.

Weaknesses

BMW has experienced over the past year a drop in multiband financing by 5.9 percent. The amount of their total portfolio fell to 446,436 contracts, which resulted in 3,714 less contacts from the previous year. The manufacturing costs of vehicles compared to BMW’s competitors is significantly higher. BMW is one of the biggest cost drivers in the automotive industry with raw materials totaling 47% of the cost of each vehicle according to Marketrealist (Kallstorm, 2015). BMW experiences high running costs in keeping up with the quality of new innovative products as they have a good reputation known for their better value which inline contributes to BMW consistently creating high priced vehicles. Due to the nature of their prestigious production creating a lower-end vehicle compared to competitors such as Toyota or Honda is not feasible and prevents them from moving in to more mass market segments.

(Kallstorm, 2015) Opportunities

The international car market is changing, people are becoming more interested in electric and plug in-hybrid electric vehicles, BMW is at the forefront and is accommodating for this increased demand in electrification of vehicles. According to the 2016 BMW annual report at the end of 2016 BMW’s model range included the BMW i3 all-electric, battery-powered vehicle, six plug-in hybrid vehicles for the global market, and an additional plug-in hybrid exclusively developed solely for the Chinese market. The Chinese governments newly introduced regulation (Schmitt) they put in place requiring 8% of all car manufacturers sales in China to be either EV’s or PHEV’s by 2018, is an opportunity for BMW as a result of their wide model range in both electric and plug-in hybrid electric vehicles that they are already producing, and will be producing in the coming years including the one solely for the Chinese market (BMW Group, 2017). People are getting more eco-conscious leading to a demand in

digitalization of products, and a cut back of printed material, BMW has been digitizing their content and it has enabled consumers to be reached on a more targeted and individualized basis thus strengthening long-term relationships. As a result of digital changes BMW has aims to stay relevant in the market by digitalizing sales and marketing completely, such as brochures or information packages. The changes in digitization for BMW helps to creates a more instantaneous customer contact at the earlier stage in the buying decision. This ability provides more customized offers for vehicle sales and services.

(BMW Group, 2017) Threats

The automotive industry is changing drastically and will continue to evolve at a fast rate. BMW is faced with addressing mega trend changes in the automotive industry, such as autonomous driving, connectivity and electrification. BMW Group Middle East Managing Director, Johannes Seibert has stated the changes in the automotive industry BMW will see over the next ten years will probably be more drastic and disruptive than what we've seen over the last 100 years. With the demand of electrification being different for each market globally finding a common ground to

market consistently can be difficult for the BMW brand, for instance Dubai Lynx reports in the Middle East there are very few electric cars on the roads, but in Norway every third car sold (Hockenos) is electric and there will be a ban (Staufenberg) on the sale of fossil fuel-based cars in the next decade. Seibert also states Norway is leading places like California, where there are now a lot of electric cars on the road, while Central, Eastern and European markets are following. The importance of consistency world-wide to BMW is one of their core values, however with changes in technology being at the forefront of the automotive industry BMW should recognize regional differences. Development on international automobiles markets are becoming more apparent, markets like China have implemented regulations starting in 2018 that all carmakers must have 8% of their sales be EV’s or PHEV’s (Schmitt) and the percent is planned to rise over time. BMW is now forced with having the capabilities to deliver more electric vehicles to countries like China where German brands dominate the emerging market. According to the 2016 BMW annual report, competition is likely to intensify in contracting markets, sales volumes in some countries are likely to be significantly affected by challenges in the competitive environment.

Objective

The BMW Groups goal company-wide for 2017 is to increase their overall sustainability as a company and to reduce the CO2 emissions of their vehicle fleet while also improving air quality. They plan to do this through trying to achieve selling and delivering a total of 100,000 electric vehicles between MINI and BMW by the end of 2017, which will significantly reduce the overall emissions of all their vehicles. In 2017 customers, will have seven different fully electric and plug-in hybrid models to choose from including the newly introduced 5 Series iPerformance plug-in hybrid and a plug-in hybrid MINI Countryman. This will be a monumental achievement on BMW’s part because between the introduction of the i3 in 2013 to 2016 they sold around 100,000 electric and plug-in hybrid models. In the following years, they will also release the 2018 BMW i8 Roadster, 2019 an all-electric MINI and, in 2020 an all-electric BMW X3. (BMW Group, 2017)

Marketing Strategy Product

BMW Group has an emphasis on an efficient and dynamic look for all of their products. They are always looking to integrate the most cutting edge materials and technology inside all of the products they offer. For example, the BMW M3 and M4 are the top of a blend between ultra-performance and luxury, exceptional in all areas including: power, speed, agility, control, capability, influence, strength, aesthetics, design for performance. The BMW i8 pairs the “Engine of the Year 2016” awarded turbocharged 1.4 L three-cylinder engine with the 13- HP electric motor to propel the car to a 0-100km/h in 4.4. seconds, while achieving the phenomenal 2.1L/100km fuel economy in a supercar. ("BMW i8 Wins Engine of the Year", 2017) They also included other cutting edge technology in the making of it including the use of carbon fibre, hybrid aluminum and thermoplastics in the construction of the car in order to make the car lighter and as a result more fuel efficient. (Laird, 2017)

Price BMWs pricing model follows a differentiated strategy, through charging extra for their premium quality. Prices vary based upon the car’s engine size, and mechanical specifications, as well as the trim level of the vehicle, tech packages, and what model of vehicle it is. They also offer add ons to each vehicle, aside from just the base package. BMW also prices their vehicles in order to stay competitive with their competitors in the market segment.

Promotion BMWs promotional strategy for North America includes spending 68% of their marketing budget on national TV ads, 8% on local TV ads, 15% on digital marketing which includes internet and mobile ads, 2% on movie product placement and 7% on print ads. (Boeriu, 2017) BMW spent € 6,030 million on marketing, advertising and sale personnel in 2016, and is projected to spend € 6,280 million in 2017.

Place

BMW’s distribution tactic follows the indirect channel, where to get the product you must go to one of the franchised dealerships to order or purchase it. According to their 2016 annual report, there are currently 3,400 BMW dealerships (of which 1,300 locations are also BMW i dealerships), 1,580 MINI and 140 Rolls-Royce dealerships worldwide, with a total of 5,120 across all BMW Group brands. (BMW Group, 2017) They distribute their vehicles throughout Canada at 34 independently owned dealerships, and 17 of which are BMW i dealers. Though BMW has in recent years began an effort towards digitalization, providing customers with the opportunity to order any BMW model online, fully customizing it, and working through the financing and payment plans, as well as allowing them to trade in used vehicles online. This is in an effort to make customers contact possible in an earlier stage, and to provide each customer with their own individualized offers for vehicles and services.

BMW i Retailers

BMW Retailers

Integrated Marketing Communications Strategy: Message BMW Group is committed to a sustainable future, and cares about the state of the environment while remaining innovative. BMW offers many vehicles that have reduced CO2 emissions, and have a collective goal of improving air quality. Purchasing from the iPerformance lineup, which features their PHEV and Electric offerings, provides consumers with the topnotch BMW luxury feeling, and performance while also benefiting the environment, to better the future for all.

Media Type BMW Group uses a more traditional media distribution strategy relying heavily on channels such as billboard ads and other out of home media types on high traffic of the highway, where people are idling around pumping CO2 into the atmosphere, getting nowhere. They also rely on TV ads and Cinema pre-rolls to reach out to their older demographic. Aside from those old mediums, they are also delving into new experiential marketing and guerilla tactics such as, test drive events because research has shown people are far more likely to buy a BMW after they test drive one, BMW promotional Uber day, provide Uber drivers with BMW’s to drive in order for people to experience iPerformance.

Media Vehicles BMW Global should focus on several different strategies when employing different media vehicles. The first is to focus on television ads during live sporting events to capture the male audience (Super Bowl, sports playoffs and FIFA). Secondly, they should advertise more on lifestyle channels with an upscale demographic such as OLN, Cottage Life Network, and The Shopping Channel. They should also use out of home billboards in affluent, high traffic and extensive idling/congested areas so it can catch potential customer’s eyes, and they will see it for longer periods of time to make it stick for example; near the ACC, Downtown, Gardiner & 427 and near high traffic, international airports. Product placement on premium channels main shows (Homeland, Billions, Entourage, Ballers, and Better Call Saul).

Measurement In order to measure the success of the campaign, BMW must sell and deliver 100,000 accumulatively of their PHEV and EV’s by year end of 2017.

Budget In order to help them reach their company objective of 2017, they will spend around $350 million (€329 million) dollars on marketing and advertising their iPerformance lineup and the Plug-in Hybrid Electric Vehicles and their Electric Vehicles. This will amount to around $3,500 (€3,289) spent per unit sold, if they achieve the goal of selling 100,000 PHEV’s and EV’s over 2017. During the launch of the i8 in the first half of 2014, they spent around €22 million ($23.4 million) on the advertising for the, which had amounted to a marketing cost of €301,818 ($321,161) per unit sold (55 total) ("BMW i8 Advertising Budget", 2014

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