MARKETING MANAGEMENT

BMW – Bayerische Motoren

Werke AG
GROUP 8:
RITANSHU JAISWAL PGFA1940
ALOK SINGH PGFA1908
KAMAKSHEE BHARDWAJ PGFA1923
SOMYA KAPOOR PGFA1954
PRACHI SINGH PGFA 1923

Jaipuria Institute of
Management, Noida, Uttar
Pradesh.
 BMW GROUP INDIA
A luxury cars manufacturer of cars and motocycles. BAYERISCHE MOTOREN
WERKE. A German multinational company founded in 1916. It consists of
traditional and functional luxury cars of which traditional luxury cars are produced
in US Manufacturer like Cadilac. The main focus is on customer wants and need
and there satisfaction. The parent company of BMW MINI& ROLLS ROYCE car
brands and founded by KARL FRIEDRICH RAPP in 1913. The Headquarter is in
Munich, Germany. After sometimes, the company was left by RAPP And
individually owned by FRANZ JOSEF industrialist in 1917 in AUSTRIA.

Employees are more than 1 million in around 40 countries. BMW

have manufacturing plants in GERMANY, UK, USA, EGYPT, CHINA, BRAZIL, SOUTH
AFRICA etc. The image of business of BMW is very highlighted and powerful. The
belief of BMW Group is to maintain the core values of innovation, good quality,
reliability and customer satisfaction. The slogan of BMW IS “SHEER DRIVING
PLEASURE”.
 ACHIEVEMENTS
With a luxurious look and performance, last year sales of BMW series set a record
of 1.37 million vehicles. It is ranked at the second position by pushing down
DaimlerChrysler AG’s Mercedes Benz. We would like to say congratulations to the
BMW Shop Foreman , Roy "Tom" Grammer In Achievement Award, on his Gold
Level status 2017 Profiles. And a huge congratulations to our BMW Sales Manager,
Troy "TJ" Slivka, he won bronze level status 2017.

The company sells 11015 cars of BMW and Mini, the sale goes up by 13 percent as
compared to 9800 unit sold in 2017. With the robust performance of all the 3
brands, BMW, Mini & BMW Motorrad. The group BMW INDIA achieved highest
sales ever of 10405 units. The SAV Sports Activity Vehicle range with a strong
contribution up to 50 per cent from new series of BMW X3. BMW Motorrad India
created an intense demand among the customer for the ultimate robust
performance car in India.

Many big companies become bankrupt because of big recession in automobile

sector. The General Electric (GE) and TOYOTA become bankrupted and affected by
a huge loss. But, BMW, automaker giant, retains its position and quality under
profitability over last three year in between the global recession.

MARKETING MIX OF BMW

A marketing mix is made up of four points:

 PRICE- I consists of list price, payment period and credit.

 PRODUCT- It consist of brand, quality, features, design and service.
 PROMOTION-A good public relations due to its brand image in the market.
And heavy advertisement in famous magazines like AUTO CAR TOP GEAR,
and in newspaper like Hindustan Times & The Hindu.
 PLACE- it contains distribution channel with 35 BMW dealership across 17
states of India with level 2 channel from manufacturers to dealers to
customers.

MARKET SEGMENTATION, TARGETING and POSITIONING FOR BMW:

 Profile – BMW

A brand formed in 1917, with their famous blue and white colour symbol from
Bavarian Luftwaffe. BMW is famous for its sophisticated, sporty and luxurious
look, since 1970’s which creates different look with new technologies, ranging
from touring car to formula 1.

We would like to say congratulations to our BMW Shop Foreman , Roy "Tom"
Gramer on his Gold Level status 2017 Profiles In Achievement Award! Also,
congratulations to our BMW Sales Manager, Troy "TJ" Slivka , on his Bronze Level
status 2017 Profiles In Achievement Award.

SEGMENTATION
The BMW group are divided into three segments that includes Automobiles,
Motorcycles and The Financial Service segments. Automobile sector deals with
manufacture, assembly and development and sale of cars of BMW, Rolls Royce &
Mini. Also includes spare parts and accessories.

The BMW group operates with 22 production, 34 sales subsidiaries and R&D
NETWORK in the world market.

Deutsche Telekom AG is in partnership with BMW Group and introduced new

variants of 5 series sedan powered with diesel engine and petrol variants also.
BMW is also extending its collaboration with Daimler AG for a project of Nature
Conservation & Nuclear Safety.

1) Demographic Segmentation:
 Age- The company segments its product (Cars) which cater to different age
groups. From 20-30 years, from 30-40 years, from 40-50 years. As a person
aged 22 is more likely to prefer BMW 7 Series as compared to 5 Series, as 7
series is more sporty and flashy looking with robust performance and heavy
engine power with many more features.
Life stage and income- it mainly depends upon married life, family and career
stage. Income of a person majorly influence to buy their preference of car, no
matter how much it costs as the person is highly successful in his stage of life.
BMW serve with a view for person of there budget car. BMW serves with
different price tags for every individual.

2) Psychographic segment: It is based on psychological characteristics such as

motivation, beliefs and priorities. BMW targets young buyers who are willing
to and love and passionate towards car and drive. Love for senior level
 professionals who prefer robust performance, design and style. The
segmentation criteria are as follows:
 Lifestyles –
a) The explorer: person desire to be different in buying BMW, in need
of change and to discover new things.
b) the aspirer: it shows the lifestyle of a person as how others look at
him and his products which shows their high-level status.
c) the reformer: the person does not buy his most like series of BMW
just because to they are new in the market and most expensive. Their
love and passion towards that brands matters a lot.
d) the struggler: “YOU ONLY LIVE ONCE” an approach on which
passionate person for car focus the most.
 Social class – It divides population into different level based on income
of customers.it shows consumer purchasing power for a car. Their
interest and need of the car psychologically. As if one wants to buy
BMW, may be from middle- and upper-class group person and
customer buying MINI of BMW group will be from middle class group
and buyer of Rolls Royce is always from Upper Class.

3) Behavioural segmentation –
a) Based on Occasions – (regular/special) Buying of BMW series at the time of
any festivals specially Diwali and Holi, they get more discounted price for the
car and many other gift hampers and offers and lucky draws.
b) Usage – it depends on usage of a product. A person if previously have series
3 of BMW, have no issues to busy series 5 for his own satisfaction as he will
be use to of that car.
c) Benefit – if you want to compare BMW series 6 with series 3, surely you will
come to conclusion of buying series 6 because of robust performance,
quality speed techniques used while making. You will prefer 6 series instead
of series 3.
4) Geographical SEGMENTATION –
a) Based on country- BMW locates their dealership in middle class to
wealthy neighbourhood in a locality and suburb region. The
b)
 Figure- Above image shows the different series segmentation of BMW.

TARGETING
The company evaluates the different segments and decides where and which
segments it can best serve as well as evaluate and select target segments for the s
ame companies, BMW being a luxury car manufacturer segments, has a typical
customer in the mid age 35 to 50year bandwidth, who are
having a taste for aspirational goods and enjoying his / her own social status, excel
ling in his / her profession.
BMW targets upper class social group buyers as they are the people for whom
BMW is going to be affordable and they will enjoy the masterpiece.
BMW has positioned itself as an icon of reliability, technologically advanced, high-
performance & exclusive automotive brand, the global leader.
 POSITIONING
It depends upon customer talks, belief and interest for the product and its
features, values and tangible benefits. A good comparison between two
companies for its position in the market shows customer experience and evidence.
lots of strategies made by the company to manage the positioning of the product.
Here the product is BMW CAR.

There are 3 basic strategy of positioning of the BMW GROUP INDIA:

 By product and service- It shows different class of the series of BMW

starting from series 3 to series 7. From top to bottom with robust
performance of car attract customers to buy upgraded version, no
matter what it costs to. After sale service of BMW is also very good as
you will get serviced wherever you want, the company will send their
engineers to your point within a day or hour.
 By price and quality- there are more then 1 BMW showrooms in every
Metropolitan Cities. As the showrooms comes under luxurious, they
compete for there quality and pricy strategy. Always try to position
there cars under high level quality and prices. Price depends upon
different series of BMW cars.
 By competitor- as we compare BMW GROUP INDIA with MERCEDES
BENZ, we ll get to know about so many differences in its performance.
But today generation is loving BMW series 7 as it comes with sporty
look and robust performance, which BMW is not giving.
Positioning of the product is very important for any business to survive in the
market for a long time. Change in positioning may occur due to some hindrances
and measures taken for competition. Being familiar with your customer is the first
task to manage the positioning and maintaining the status of the product BMW
cars.

It is all about PERCEPTION, as it keep changes with change of mind of the

customers, what they need and want to buy.
Taking one of the models of BMW series
– BMW i8

BMW Brand Analysis

Parent Company BMW

Sector Automobiles
Category Sports car, Hybrid
Tagline Born Electric

BMW i8 STP

Segmentation Luxury sports car, robust performance for elite

class.
Target Group Rich businessman, young class group and
corporate professionals.
 Positioning Environment friendly, lower running cost and
Hybrid.
BMW i8 COMPETITORS

TESLA MODEL S
HONDA ACURA NSX
JAGUAR
AUDI R8
PORSCHE 918 SPYDER

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