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SITUATION ANALYSIS: CURRENT MARKET POSITION: • BMW has achieved market leader position in the luxury car segment for 2 nd consecutive year. • 43% of market share in luxury car segment. • 73% growth over 2009. • Sales of 6426 units in 2010. Archrival Mercedes Benz sold 5819 units. • Presently employs 400 people. • Present in 20 locations across India.
Launch Date: 23rd December 2010 Price: 22 Lakhs-32.5 LakhsModels: X1 sDrive 1.8i X1 sDrive 2.0d X1 sDrive 2.0d Exclusive JOY IS WHAT YOU MAKE OF IT
SITUATION ANALYSIS: COMPETITOR STUDY: SUV Engine Power Price (in Lakhs) BMW X1 (Petrol) 1.8 P 147.5 22 BMW X1 (Diesel) 2.0 D 174 23-32.5 Skoda Yeti 2.0 D 140 17 Ford Endeavour 3.0 D 153 19-20 Chevrolet Captiva 2.0 D 150 19 Toyota Fortuner 3.0 D 170 21 Hyundia Santa fe 2.2 D 197 21 Mitsubishi Outlander 2.4 P 168 22 Nissan X-trail 2.0 D 149 23 Honda CRV 2.4 P 151 24
SITUATION ANALYSIS: SWOT ANALYSIS: • Strengths: Brand Image; Quality; Captive finance solution; X1- relatively affordable BMW; First crossover SUV. • Weaknesses: Dealer network; Service warranty. • Opportunities: Increase in millionaires; Cashing on diesel variants. • Threats: Competitors- Mercedes, Audi, VW, Toyota, Honda, etc.
OBJECTIVES:• To achieve 10% market share in SUV segment by end of 2011.• Make X1 customer’s desired car.• Try to align production with rising market demand.• Increase dealer network.• Easier access to test drives.• Better showcase.
STRATEGIES:• In all promotional activities, present clear, consistent image of quality & service to target market. Target- high income, young male/female drivers. Add- medium high income families.• Expand the market beyond the current locations by inviting more dealerships. Prioritize urban markets, followed by semi urban.• Training programs for sales representatives designed to encourage loyalty and enhance service image of BMW.• Faster response to test-drive request & decrease in waiting period for delivery.
IMPLEMENTATION OF STRATEGIES:• BMW’s ‘Story of Joy’ Campaign.• Apps are already available on Apple’s App Store & Google’s Android Market.• Promotion through games, movies, event sponsoring. Ex- Audi.• Continuation of Internet marketing.• TV adverts on key news & business channels.• Frequent ads in newspapers & magazines; hoardings at key areas.• Promotional activities at malls.
BUDGET:• Cost of placing hoardings at key areas in metro cities cost anywhere between 1.5 Lakhs-4 Lakhs/month. Printing cost: 30000-50000 per hoarding.• If 60 hoardings in 20 existing BMW’s market cities are considered, maximum cost for 4 months would be approximately 96 lakhs.• 30 seconds of ad on TV costs anywhere between 10.5 lakhs/ad – 32 lakhs/ad; depending on the channel, frequency, slots & length of the advert. Most of the channels also provide packages and product relevant TV show & movie telecast sponsorship packages. Estimated cost for a package for 2 months at business channels like CNBC would be 12-13 crores.
BUDGET:Medium Quantity & duration Cost (approx./estimated)Hoardings 60 in existing 20 96 lakhs locations, for 4 months.TV adverts 2 months package 12 croresAd making 2-3 9 croresNewspaper Ads 5 ads/month for 3 12 lakh monthsInternet Marketing 50 top visited websites 20 lakhs (can fluctuate through google ads. as cost is calculated on pay-per-click basis)Malls 20 malls at 20 locations, 40 lakhs twice a month for 2 months. Total 226800000