BMW European Marketing Study Case Kotler

2. Presented by:
Mewen
Olga
Philvie
Sonia

3. CONTENTS
About BMW
Presentation of the Case
Consumer Research + Targeting
SIGMA Research + Results
SWOT
Update
European Perspective
4 P’s
Marketing Strategy
Q&A

4. 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

5. 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)

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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”

12. 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

13. 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

15. WEBSITE

16. F1 TEAM WEBSITE

17. 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

18. European Perspective
High technologies
BMW Active Hybrid (Hydrogen & Electric systems)
Efficient Dynamics
(System Start/Stop)
Biometrics recognition

19. 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

20. 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

21. 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

22. THANK YOU
Presented by:
Mewen
Olga
Philvie
Sonia