History• BMW was founded in 1913 to manufacture aircraft engines in the Munich• 1928, BMW set up a car manufacturing unit and started manufacturing a small car called Dixi’• It was BMWs first car and was marketed under the name BMW 3/15• 328 roadster, were considered very advanced for their time, and the roadster was even nominated as the Car of the Century in 1999
Key features• 1961- launch of BMW 1500 a trendy sporting car• 1973- first overseas plant in south Africa• 1982- 1st euro car maker to set up subsidy in Japan• 1992- BMW outsold Mercedes Benz for the first time in Europe• 1993- BMW entered into joint venture with Rolls-Royce• 2003- BMW launched rolls Royce Phantom this high priced model around US $3,30,000• 2005- BMW sold a record breaking 769 units world wide
The Curve Effect• Christopher bangle chief designer brought our cars with more curvy designs which he called “flame surfacing”• Widely criticized by traditional designers they called them “bangle-ize”• Despite the criticism BMW sales increase year by year• This design was copied by rivals Lexus and Mercedes Benz• Main competitors Alfa romeo , audi , infiniti ,jaguar ,lexus• BMW LLC a subsidiary was established in USA 1975 it imported BMW mini rolls Royce cars and motor cycles
FIXING WHAT AIN’T BROKEN• "company of ideas" advertising campaign was unveiled in may 2006• Wanted to take their brand beyond its traditional association with “YUPPIES”• 2005 BMW LLC record annual sales of 3,07,020 vehicles in the us up 4% over 2,96,111 vehicle sold in 2004• bmw llc felt that almost 75% luxery car buyers in the u.s. were not considering as they still strongly associated with yuppie
BMW – The Ultimate Driving Machine• The original German slogan Freude am Fahren Whch means “joy in driving”• second largest selling European luxury car in America• consistency of the communication and logo• BMW has been the ultimate driving machine for 25 years• three separate advertising agencies• even though BMW retained its strategy .
Going Beyond Yuppies• As per the company’s perspective. BMW management was in need for a change…• WHY?? 75% of the luxury car buyers didn’t consider BMW at all !• Change Perception among the masses.• In search of different avenues to increase sales
Was it necessary??• To reach out to new customers.• To portray themselves into the mindsets of the customers.• To bring in 3 major changes in..• Product Acceptance• Customer Satisfaction• Further adding the new aspect of “DELIGHT” to customer satisfaction
Targeting “The Creative Class”• An independent sprit• A drive to challenge conventional wisdom• An appreciation for the brand’s ability to offer both substance and style
The "Company Of Ideas" Campaign• The ad campaign was unveiled through various media.• The campaign tried to communicate BMWs independence.• Freedom to pursue innovative ideas.• Little emphasis on its high performance features like horsepower, etc.• The ads in this campaign encouraged radical ideas and designs.• They wanted people to know how it gets to be an ultimate driving machine.
Waiting For The Rest Of The World To Catch Up!• "They get there through passion and inspiration -- they arent hindered by idea-killing bureaucracy.“• BMW showcased its environmental sensitivity advertisements(eg: 745h hydrogen car).• They placed their ads in lifestyle publications as well as in magazines like Vogue, The Economist, Vanity fair etc.• A Jackson Pollock painting thrown in a dumpster.
BMW’s Print Ads• NO: Say “no” to compromise and say “yes” to innovative ideas.• MATCH: BMW has the freedom to build cars the way it wants to build them.• AIRBAGS: "Ideas dont have airbags to protect them."• RISKY: : A print ad prominently featuring a BMW 7 Series vehicle with the tag line "Not taking risks is risky“.
BMW’s TV ads• OVERTHINKERS: A shot of the Leipzig plant is seen with a voiceover explaining, "at BMW ideas are everything.“• EUPHEMISMS: The ad focused on teaching a lesson to their counterparts without being too offensive.• ENEMY OF IDEAS: The ad that portrayed personality types, who created barriers to creativity.
SWOT AnalysisStrengths Weakness• Passion & Dedication to • Inadequate market research move forward • Confusion & Dilution• Innovation among customers• Strong expansion plan • No critic’s support• Risk taking• Consistent• communication• Brand management• Environmental sensitivity
SWOT AnalysisOpportunities Threats• Launch of new plants • Increase in competition• Belief in experimental • Fear of U.S. anti-trust branding regulations• Foray into new markets • Complacency• Emotional aspect