GROUP NO 5 PGEXP 2012-14 |

Bayerische Motoren Werke (BMW)

COMMUNICATION MIX
FOR NEW MODEL

INTRODUCTION The BMW Group The BMW Group is one of the most successful manufacturers of automobiles and motorcycles in the world with its BMW, MINI and Rolls-Royce brands. As a global company, the BMW Group operates 25 production and assembly facilities in 14 countries and has a global sales network in more than 140 countries. During the financial year 2010, the BMW Group sold 1.46 million cars and more than 110,000 motorcycles worldwide. The profit before tax for 2010 was euro 4.8 billion on revenues amounting to euro 60.5 billion. At 31 December 2010, the BMW Group had a workforce of approximately 95,500 employees. The success of the BMW Group has always been built on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. As a result of its efforts, the BMW Group has been ranked industry leader in the Dow Jones Sustainability Indexes for the last seven years. BMW: the most admired car brand in the world BMW is one of the best-known brands in the world. The famous blue and white roundel symbol is clear proof that the owner is driving a prestige car (or motorbike). The symbol also identifies the brand as delivering the finest design, technology, engineering and quality available in motoring today. BMW: Brand Essence As per Helmut Panke, former BMW chairman: The BMW brands stand for a promise of fascinating individual automobiles a promise we do and will keep. Part of this pledge and key to the brand inside the company is: Never build a boring BMW. Twenty years ago, BMW expressed its core identity in the US and UK in the slogan BMW the ultimate driving machine. This is exactly how drivers of the brand sum up their automotive experience to researchers. Globally, the brand now positions itself with the pay-off: The Joy of Driving. BMW: Brand Identity In 1928, BMW licensed the Austin Seven from the British car manufacturer, which it renamed BMW 3/15. In 1933, the blue, white and black BMW spinning propeller roundel logo appeared on the grille and a six-cylinder [GROUP NO 5] Page 2

model with the twin-kidney front grill was introduced a feature and point of recognition for every BMW car on the road today.

BMW: Brand Experience BMW believes strongly in the importance of product consistency. A considerable part of BMWs success is attributable to its focus on the design of both its products and its corporate and brand design. Chris Bangle, Design Director, oversees 220 artists at BMW: We dont make automobiles as utilitarian machines that you use to get from point A to point B. We make cars, moving works of art that express the drivers love of quality. The brand styling is carefully incorporated in the entire spectrum of dealer and customer materials - collateral, showroom interior and exterior, design tradeshow environments and manufacturing facilities. BMW: Brand Values Quality, technology, performance and exclusivity are the BMW brands core values. Research and development are ascribed high priority within the company, spending a far greater percentage of profits on R&D than any other automobile maker. Its R&D centre in Munich employs 5,000 engineers and designers. From this technological focus, BMW develops automobiles with a highly individual character. For BMW, performance is more than just the ability to accelerate quickly and take corners at speed it is a balanced harmony between beautifully designed and crafted working parts.

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BMW INDIA
BMW India is a 100% subsidiary of the BMW. Group headquartered at Gurgaon near New Delhi in the National Capital Region. BMW India also has its own manufacturing facility in Chennai. OPERATION Till date BMW Group has invested more than Rs 180 Crores in India. The wide range of BMW activities in India include the establishment of a production plant in Chennai, Tamil Nadu, parts warehouse in Mumbai and development of a dealer organization across major metropolitan centers of the country. The BMW Plant at Chennai produces among others, the BMW 3 Series, BMW 5 Series, BMW X1 in petrol and diesel variants and the BMW 7 series. The new BMW X3 is also produced. The BMW Plant Chennai has the capacity to produce 11,000 units per year on a double shift basis. EMPLOYEES The total number of employees at BMW India is 1400. Up to 1200 jobs will be created in the dealer and service network. DEALERSHIPS BMW India is the pioneer in bringing luxurious dealerships to India. BMW India has set a decisive course by setting up BMW dealerships of international standards across the country. BMW India has also set very high standards in service quality and customer care. By end of 2012, BMW India will aggressively expand its dealer network by increasing the number of outlets to 40 across major metropolitan centers and emerging markets in India (from the present 22 outlets). [GROUP NO 5] Page 4

Currently, BMW India is present at 22 locations in the Indian market: Ahmedabad - Parsoli Motors, Bangalore - Navnit Motors, Bhubaneswar OSL Prestige, Kozhikode Platino Classic,Chandigarh Krishna Automobiles, Chennai - KUN Exclusive, Coimbatore - KUN Exclusive, Delhi - Bird Automotive, Deutsche Motoren, Goa - Bavaria Motors, Hyderabad - KUN Exclusive, Indore - Infinity Cars, Jaipur - Sanghi Classic, Kochi - Platino Classic, Kolkata - OSL Prestige, Ludhiana - Krishna Automobiles, Mumbai - Infinity Cars, Navnit Motors, Nagpur - Munich Motors, Pune - Bavaria Motors, Raipur Munich Motors, Surat - Parsoli Motors. MODELS

BMW India produces the following models at its factory in Chennai: BMW 3 Series (BMW 320i, BMW 320d, BMW 320d Dynamic, BMW 320d Exclusive) BMW 5 Series (BMW 523i, BMW 520d, BMW 525d, BMW 530d) BMW X1 (BMW X1 sDrive18i, BMW X1 sDrive20d, BMW X1 sDrive20d Exclusive) BMW X3 (X3 xDrive30d, X3 xDrive20d) It imports the following CBU manufactured models in India: BMW 3 Series (BMW 330d Convertible) BMW 5 Series (BMW 535i) BMW 5 Series Gran Turismo BMW 6 Series (BMW 650i Convertible, BMW 650i Coupe, BMW 640d Coupe) BMW 7 Series (BMW 740Li, BMW 750Li, BMW 760Li, BMW 730Ld) BMW X5 (BMW X5 xDrive50i, BMW X5 xDrive30d) BMW X6 (BMW X6 xDrive50i, BMW X6 xDrive30d) BMW X6#X6 M BMW M3 (Coupe and Convertible) BMW M5 (Sedan) BMW M6 (Coupe and Convertible) BMW Z4 (BMW Z4 sDrive35i)

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BMW is going to launch its least expensive name-plate -- the BMW X9, which they consider an important part of their product strategy & a perfect car for the Indian market since it is SUV (sport utility vehicle) style - has the ground clearance. Leading to building an brand image in this segment of car buyers & capturing a larger market share

BMW: COMMUNICATION MIX STRATEGY FOR NEW CAR IN INDIA NEW MODEL :- BMW X9

TARGET AUDIENCE
BMW has aimed at a target group that drives the future of the country. BMW is perceived as a dynamic, sporty, innovative and aesthetic brand, and hence they have done well with a younger target group. The average age of the BMW buyer in India is 40 years therefore now it is targeting younger group. [GROUP NO 5] Page 6

OBJECTIVE
To devise a integrated marketing communication plan that would sustain product excitement which is generated through word of mouth BMW X9 Expansion of market share and pushing the sales of BMW in Indian market Making BMW as a Global brand (Made in Germany to Made by BMW)

Eye Catching Approaches

Replacement of Made in Germany symbol with symbol of quality saying Made by BMW Feel of nationality 100% made in INDIA Increased interest of dealers by investing in facilities, equipment and manpower

Business Strategy
Adjustment of model prices in light of new competition situation Improvement of dealer network to bring consumer buying experience in line with evolved expectations for service Significant Improvements to product line : For e.g.: BMW will do minor adaptations for the Indian road and weather conditions. These include- a higher suspension as ground clearance in India is low, and different intake filters as the air in the country is more polluted Relative weight age Innovative marketing

INTEGRATED MARKETING COMMUNICATION S.NO INTEGRATED Objective MARKETING COMMUNICATION Mix 1 MASS Innovative marketing COMMUNICATION activities that will help to [GROUP NO 5] Page 7

get close to the customer are like: Professional golf tournaments Wine tasting sessions Events with fashion designers etc.

activity- 10%

Advertisement A perfect personality fit A Salman Khan movie for product placement would be perfect opportunity to reinforce its brand image. Press Launch

Advertisement5%

Press 5%

Launch-

TV show

TV show & Radio DJ Program-5%

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Radio DJ Program

TARGETED COMMUNICATION

We will launch its financing arm in India to service the credit needs of retail customers, fleet owners and dealers. India is a strong financing market and 80 per cent of the cars that we sell are financed. The financing option plays a very crucial part in the buying process further helping in increased customer satisfaction & relationship leading to improved brand Page 9

20%

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IN-STORE COMMUNICATION

experience. There are a few things that have helped BMW be different the product, marketing, dealership network as well as the spirit of the people. Instead of having a huge advertising spend, BMW will develop more touch points where people can have a personal connect with the brand. For example, if you walk into a BMW dealership today, you will see that the place is sophisticated and you will be treated in a certain way.

30%

ONE-TO-ONE COMMUNICATION

BMW does not have company owned dealerships, but retail partners. BMW states that- it is wrong to assume that a company that is very strong in design and manufacturing of premium cars should also be the best in selling those cars. Selling a premium car requires a good network. Hence, the fundamental belief at BMW is to leave the selling to the retail people who have a local connect. BMW call them the local heroes.

20%

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BMW Internet Site

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