M3 MARKETING PLAN BMW Doug Livengood MKTG 201: Principles of Marketing Professor A. Freed Term Date- Fall 2010 Late Start
A. Brief Company Background BMW or Bayerische Motoren Werke was founded in Germany in 1908 as a stock corporation that built aircraft engines Currently has markets in over 150 countries and averages $50 billion in revenue every year Mission Statement: “With the three brands, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its sights set firmly on the premium sector of the international automobile market. From research and development to sales and marketing, BMW Group is committed to the very highest in quality for all its products and services.”
B. Product Description High performance sports car with a very powerful engine and superior handling Fastest car made by BMW Powered by 4.0 Liter V8 with 414 horsepower Can reach 60 mph in 4.1 seconds Marketing Opportunity Strategy: Product Development BMW offers “BMW Individual”, same market, same product just changed to meet customer needsC. The Marketing Concept Implement Marketing Concept through: Customizable Cars Quality as a top priority 12 year warranty on body work and 2 year warranty on BMW parts regardless of mileage All authorized BMW dealers have professionally trained mechanics
D. SWOT Analysis Strengths: Weaknesses:Long Product History (22 years) High Maintenance CostsCan be sold for large amounts High price tag might lose of money customers Opportunities: Threats:Competitive in the racing world Lots of CompetitionE. Product Mix: BMW makes cars, SUVs and MotorcyclesII. Product Description A.
B. Product Uses, Features and Benefits Uses: The BMW M3 is a street legal car that has all the characteristics of race/track car Feature: Benefit: 414 horsepower engine fun to drive 16 loudspeakers excellent sound quality M Drive System allows you to adjust how the car drives Onboard Navigation easier to find directions Voice Command safer driving rather than using cell phone C. Product Type: The M3 is a good because it is tangible D. Product Class: The M3 is a specialty good because it is a high end, expensive luxury sports car and people would be willing to search for it.
E. Product Line The M3 is a part of the BMW M product line The M series includes top end high performance luxury cars that are made to be fast, have good handling, and lots of horsepower The BMW M line includes the M3 convertible, M3 coupe, M3 sedan, M6 convertible, M6 coupe, X5 M, and the X6 M
F. Product Life Cycle The BMW M3 is a part of the broad generic group of luxury and high performance cars Luxury and high performance cars are in the Maturity stage of the product life cycle there is: Intense competition Lower prices “New and Improved” ProductsG. Branding Pyramid: Brand insistent/ brand loyal product Recognized as one of the best sports cars out there People would be willing to search for this specific carH. New Product? No the M3 has been around for over 20 years
III. Target Market for ProductA. SegmentsB. PSSP Needs: Personal- fun to drive and self esteem- very nice expensive carC. Other Consumer Buyer Behavior? Empty Nesters- high income, kids moved out Social Class- high class
D. Target Market Strategy BMW uses a single-segment marketing strategy They make high end cars for high class customersE. Positioning High Performance Sports Car Has not been repositioned still has same position since it was first produced in the early 1990’sIV. Product Pricing A. Retail prices at four different locations: 1. Baron BMW in Merriam, Kansas- $70, 975 2. Faulkner BMW in Lancaster, Pa- $74,575 3. Apple BMW in York, Pa- $59,275 4. Torrances BMW in Los Angeles, California- $78,505
B. Pricing Objectives of the Company Sales Oriented- aimed at delivering profit growth and build foundation of BMW’s brands and businessC. Price Increase In 2007, BMW came out with a new M3 body style which jumped the price from $48,900 in 2006 to $55,400 in 2007V. Product Placement and Distribution A. BMW uses indirect distribution channels, they use middlemen to reach the final consumer B. BMW moves their products from the producer/manufacturer to the retailer who then sells the product to the final consumer
C. Product Readily Available? Yes the M3 can be found at almost any BMW dealership and can actually be custom ordered online The M3 would be in the Maturity stage so its price has not changed much since it became available and is reasonable for the target marketVI. Product Promotion A. Videos- video Target Market: people with high income Hold Attention: Yes Features/Benefits: fast/ fun Take Action: Yes Magazine Articles Target Market: Car enthusiasts Hold Attention: Yes Feature/ Benefits: Handling/ fun Take Action: No
B. Company’s Main Promotional Goal The sports car category which includes the M3 is in the maturity stage of its product life cycle so the main promotional goal of BMW is to remind, persuade and informC. Promotional Mix Advertising: BMW advertises the M3 in Magazines and on their website Personal Selling: My BMW, register online to receive special promotions and get emails about about servicing your BMW Sales Promotion: When you service your car at BMW, they register your name and send you ads in the mail with discounts and promotions Public Relations: BMW uses engines in their new cars that are hybrids which use electric energy combined with gas to promote being green Uses website to show new products and press releases BMW offers special events such as the M track day
D. Opinion Leader Tommy Milner Races for BMW in an M3E. Pull Strategy BMW spends most of their money on advertising and sales promotion to the consumers in order to create demandVII. Product Evaluation A. Technology can help to market the M3 for little cost by releasing videos to sites such as you tube and they can create groups on social networking sites such as Facebook to gain consumer interest for free B. BMW could put hit counters on their website and videos to determine how effective their marketing is Audi a similar car company to BMW, uses basically the same marketing methods as BMW, promoting mostly through there website and having features such as My Audi
C. Lifetime Value of a Customer Theory Develop new and interesting products every year Newsletters and Sales promotions in mail Offers full coverage on parts for the first 50,000 of a new car Every few years BMW comes out with a new M3 which will keep customers interested in product and have them come back to buy the new oneD. In five years? Yes the M3 will be around in 5 years because it has great customer loyalty and is well established in the marketplace, has been around for over 20 years alreadyE. Museum of Losers? No the M3 has a great sales history and has been around a long timeF. Great car but very expensive, the average person cannot afford to drive this car
Works cited Marketing Plan Apple BMW. "Apple BMW - Showroom - 2010 BMW M3." Apple BMW - Apple BMW of York, PA sells new & used BMWs in York, Lancaster, Hanover, Harrisburg & Baltimore. N.p., n.d. Web. 30 Nov. 2010. <http://www.applebmwofyork.com> Audi.com. " Audi of America > Home." Audi of America > Home. N.p., n.d. Web. 30 Nov. 2010. <http://audi.com>. Baron BMW. "New BMW Inventory - Baron BMW - Merriam Used Cars, New Car BMW Dealer, Auto Sales and Service in Merriam, Kansas." Baron BMW - Merriam Used Cars, New Car BMW Dealer, Auto Sales and Service in Merriam, Kansas. N.p., n.d. Web. 30 Nov. 2010. <http://www.baronbmw.com/search/New+M3%20Series%20Coupe+tM>. "BMW Group." BMW Group. N.p., n.d. Web. 17 Oct. 2010. <http://www.bmwgroup.com/e /nav/index.html?../0_0_www_bmwgroup_com/home/home.html&source=overview>. "BMW M3 Sedan : Overview." BMW automobiles - website of the BMW AG. N.p., n.d. Web. 17 Oct. 2010. http://www.bmw.com /com/en/newvehicles/mseries/m3sedan/2007/introduction.html. Cars.com. "2011 BMW M3 Summary." New & Used Cars for Sale, Auto Dealers, Car Reviews and Car Finance Advice. N.p., n.d. Web. 30 Nov. 2010. <http://www.cars.com/bmw/m3> Faulkner BMW. "BMW M3." Faulkner BMW New Inventory. N.p., n.d. Web. 21 Nov. 2010. <http://www.faulknerbmw.com/new-inventory/BMW-M3>. Ivy Thesis. "Report on BMWs Strategy." Ivy Thesis. N.p., n.d. Web. 22 Nov. 2010. <http://ivythesis.typepad.com/term_paper_topics/2009/09/report-on-bmws-strategy-1.html>. KBB.com. "Reviews - Kelley Blue Book." New Cars, Used Cars, Blue Book Values & Car Prices - Kelley Blue Book. N.p., n.d. Web. 30 Nov. 2010. <http://www.kbb.com/recommended-cars/luxury- and-high_performance>. Perreault, William D., Joseph P. Cannon, and E. Jerome McCarthy. Essentials of Marketing: a Marketing Strategy Planning Approach. 12th ed. New York: McGraw-Hill/Irwin, 2010. Print. TomMilner.com . TomMilner.com . N.p., n.d. Web. 30 Nov. 2010. <http://www.tommymilner.com>