Completed project on BMW

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DECLARATION
This is to certify that I have completed a Project titled "To Study the Marketing Strategy of
BMW Ltd.” under the guidance of Sonal Bharija in the partial fulfilment of the requirement for
the award of Bachelors of Business Administration of Bharati Vidyapeeth University, Delhi.
This is an original piece of work & I have not submitted it earlier elsewhere.
Raj vardhan

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PREFACE
It is designed in such a way that student can grasp maximum knowledge and can get practical
exposure to the corporate world in minimum possible time. Business schools of today realize the
importance of practical knowledge over the theoretical base. The research report is necessary as
it provides an opportunity to the researcher in understanding the industry with special emphasis
on the development of skills in analyzing and interpreting practical problems through the
application of management theories and techniques. It is a new platform of learning through
practical experience.

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ACKNOWLEDGEMENT
This project is a result of dedicated effort. It gives us immense pleasure to prepare this project
report on “BMW Ltd.”. We would like to thank our project guide Sonal Bharija, for consultative
help and constructive suggestions on the matter on this project. We would like to thanks our
parents and colleagues who have helped us in making this project a successful one.
Name of the student
Raj vardhan

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CONTENT
Chapter 1: Introduction to Company 5-12
Nature of Business/ History 5
Organizational Structure 8
Production Lay out 9
Organizational Policies 11
Chapter 2: Industrial Analysis 13-16
Industry Overview –(Growth rate of Industry, Contribution to GDP) 13
Current Issues (From Newspaper, Journals –For Company and Industry) 13
Key Competitors 14
Environmental Scanning –Political environment, Economic environment,
Socio-Cultural Environment 15
CHAPTER 3: Objectives, Researchmethodology and Data analysis 17-29
CHAPTER 4: Marketing strategies 30-45
Products of Company 30
4PS 35
STP 37
Distribution channel 43
Promotion strategies 45
Chapter 5: Financial Analysis 46-59
Sources of Finance 46
Ratio Analysis –Any 5 52
Net profit/Net Balance Sheet 54
Chapter 6: Key Learning’s from the Company and recommendations 60-66
Performance Analysis of the Company 60
Reasons for the expansion/contraction/diversification of Company 61
Comment on Organizational Leadership 63
Market share/growth rate of Company 64
SWOT Analysis of the Company 65
Chapter 7: Findings 67-69
Chapter 8: Conclusions and Suggestions 70
ANNEXURES 71-73

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Chapter-1: Introduction of the company
Nature of Business
History of BMW
These three magic letters stand for Bayerische Motoren Werke, or in English, Bavarian Motor
Works. It is a German automobile, motorcycle and engine manufacturing company founded in
1916.
1913
BMW started as a manufacturer of aircraft engine. In October 1913 Karl Friedrich Rapp
establishes “Rapp-Motoren werke” in a former bicycle factory near Munich. Rapp was an
engineer who arises through Daimler system and “Rapp Motoren werke” was set up a subsidiary
of “Flugwerk”, an airplane maker. He starts manufacturing his own aircraft engines but
unfortunately they suffered from problems with vibrations.

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Karl Friedrice Rapp
Close to Rapp’s factory, Gustav Otto, the son of the inventor of the four-stroke internal
combustion engine, sets up a business building small aircraft. Otto enjoys great success with
“Gustav Flugmaschinefabrik”.
1916
Rapp’s company has secured a contract with Prussia and Austro Hungary to produce 25 large
V12 aircraft engines. Rapp Motoren Werke had problem with the reliability of the engines so
they began buying four-cylinder water-cooled aircraft engines from the Gustav Otto factory. In
the following months Otto’s company is absorbed. Gustav Otto’s “Gustav Flugmaschinefabrik”
merging with “Rapp-Motorenwerke” formed “Bayerische Flugzeug-Werke” or BFW, in English
“Bavarian Aircraft Works”
Franz-Josef Popp, an Austrian engineer, directed Rapp’s business. He was securing the all-
important military contracts. Popp transformed then the existing company into “Bayerische
Motoren Werke GmbH”. BMW formally recognizes its birthday as March 7, 1916. Shortly after
the merge, Popp realized that the company expanded too quickly and they needed financial help.
He turned to Camilo Castiglioni, a Vienna financier, who was head of the Wiener Bankverein.
Popp and Castiglioni recapitalized the company.
Franz-Josef Popp

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BMW headquarters in Munich, Germany
BMW is headquartered in Munich, Bavaria. It also owns and produces Mini cars, and is the
parent company of Rolls-Royce Moto Cars. BMW produce motorcycles under BMW Motorrad.
In 2012, the BMW Group produced 1,845,186 automobiles and 117,109 motorcycles across all
of its brands. BMW is part of the “German Big 3” luxury automakers, along with Audi and
Mercedes-Benz, which are the three best-selling luxury automakers in the world.
BMW Headquarters in Munich. The towers and
museum are visible in the back right.
BMW Isetta with front opening door

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BMW model 3/15PS (BMW Dixi) from 1930
BMW 132 engine
BMW 801 engine
BMW was established as a business entity following a restructuring of the Raoo Motorenwerke
aircraft manufacturing firm in 1917. After the end of World War I in 1918, BMW was forced to
cease aircraft-engine production by the terms of the Versailles Armistice Treaty. The company
consequently shifted to motorcycle production in 1923, once the restrictions of the treaty started
to be lifted, followed by automobiles in 1928-29.

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The first car which BMW successfully produced and
the car which launched BMW on the road to automobile production was the Dixi, it was based
on the Austin 7 and licensed from the Austin Motor Company in Birmingham, England.
BMW’s first significant aircraft engine (and commercial product of any sort) was the BMW IIIa
inline-six liquid-cooled engine of 1918, much preferred for its high-altitude performance. With
German rearmament in the 1930s, the company again began producing aircraft engine for the
Luftwaffe. Among its successful World War II engine designs were the BMW 132 and BMW
801 air-cooled radial engines, and the pioneering BMW 003 axial-flow turbojet, which powered
the tiny, 1944-1945-era jet-powered “emergency fighter”, the Heinkel He 162 Spatz. The BMW
003 jet engine was first tested as a prime power plant in the first prototype of the Messerschmitt
Me 262, the Me 262 V1, but in 1942 tests the BMW prototype engines failed on takeoff with
only the standby Junkers Jumo 210 mosemounted piston engine powering it to a safe landing.
The few Me 262 A-1b test examples built used the more developed version of the 003 jet,
recording an official top speed of 800 km/h (497mph). The first-ever four-jet aircraft ever
flown,the sixth and eighth prototypes of the Arado Ar 234 jet reconnaissance-bomber, used
BMW 003 jets for power. The improving reliability of the 003 as 1944 progressed, earmarked it
as the required power plant for airframe designs competing for the Jagernotprogramm’s light
fighter production contract, won by the Heinkel He 162 Spatz design. The BMW 003 aviation
turbojet also found itself under consideration as the basic starting point for a pioneering
turboshaft powerplant for German armored fighting vehicles in 1944–45, as the GT 101.
Towards the end of the Third Reich BMW developed some military aircraft projects for the
Luftwaffe, the BMW Strahlbomber, the BMW Schnellbomber and the BMW Strahljager, but
none of them were built.

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By the year 1958, the automotive division of BMW
was in financial difficulties and a shareholders meeting was held to decide whether to go into
liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the
current economy car boom enjoyed so successfully by some of Germany's ex-aircraft
manufacturers such as Messerschmitt and Heinkel. The rights to manufacture the Italian Iso
Isetta were bought; the tiny cars themselves were to be powered by a modified form of BMW's
own motorcycle engine. This was moderately successful and helped the company get back on its
feet. The controlling majority shareholder of the BMW Aktiengesellschaft since 1959 is the
Quandt family, which owns about 46% of the stock. The rest is in public float.
BMW acquired the Hans Glas Company based in Dingolfing, Germany, in 1966. Glas vehicles
were briefly badged as BMW until the company was fully absorbed. It was reputed that the
acquisition was mainly to gain access to Glas' development of the timing belt with an overhead
camshaft in automotive applications, although some saw Glas' Dingolfing plant as another
incentive. However, this factory was outmoded and BMW's biggest immediate gain was,
according to themselves, a stock of highly qualified engineers and other personnel. The Glas
factories continued to build a limited number of their existing models, while adding the
manufacture of BMW front and rear axles until they could be closer incorporated into BMW.
BMW 3-Series (F2)
In 1992, BMW acquired a large stake in California based industrial design studio Design works
USA, which they fully acquired in 1995. In 1994, BMW bought the British Rover Group (which
at the time consisted of the Rover, Land Rover and MG brands as well as the rights to defunct
brands including Austin and Morris), and owned it for six years. By 2000, Rover was incurring
huge losses and BMW decided to sell the combine. The MG and Rover brands were sold to the

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Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW,
meanwhile, retained the rights to build the new Mini, which was launched in 2001.
Chief designer Chris Bangle announced his departure from BMW in February 2009, after serving
on the design team for nearly seventeen years. He was replaced by Adrian van Hooydonk,
Bangle's former right-hand man. Bangle was known for his radical designs such as the 2002 7-
Series and the 2002 Z4. In July 2007, the production right for Husqvarna Motorcycles was
purchased by BMW for a reported 93 million euros. BMW Motorrad plans to continue operating
Husqvarna Motorcycles as a separate enterprise. All development, sales and production
activities, as well as the current workforce, have remained in place at its present location at
Varese.
In June 2012, BMW was listed as the #1 most reputable company in the world by Forbes.com.
Rankings are based upon aspects such as "people's willingness to buy, recommend, work for, and
invest in a company is driven 60% by their perceptions of the company and only 40% by their
perceptions of their products."
By 1959 the automotive division of BMW was in
financial difficulties and a shareholders meeting was held to decide whether to go into
liquidation or find a way of carrying on. It was decided to carry on and to try to cash in on the
current economy car born enjoyed so successfully by some of Germany’s ex-aircraft
manufacturers such as Messerschmitt and Heinkel.
In 1992, BMW acquired a large stake in California based
Industrial design studio Designworks USA, which they fully acquired in 1995. In 1994, BMW
bought the British Rover Group

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By 2000, Rover was making huge losses and
BMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix
Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW, meanwhile,
retained the right to build the new MINI, which was launched in 2001.
History of BMW motorcycles
BMW's first motorcycle, the R32
BMW motorcycle history began in 1921 when the company commenced manufacturing engines
for other companies. Motorcycle manufacturing now operates under the BMW Motorrad brand.
BMW (Bayerische Motoren Werke ) introduced the first motorcycle under its name, the R32, in
1923.
BMW's opposed engine and transmission unit in an R 32.
Pre-1921
BMW began in 1916 as a reorganization of Rapp Motorenwerke, an aircraft engine manufacturer
that began production before World War I. With the Armistice, the Treaty of Versailles banned
the German air force and the manufacture of aircraft in Germany, so the company turned to

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making air brakes, industrial engines, agricultural machinery, toolboxes and office furniture and
then to motorcycles and cars.
1921–1945
1920 Helios, made by Bayerische Flugzeugwerke with a BMW M2B15 engine
In 1921, BMW began manufacture of its M2B15 flat-twin engine. Designed by Max Friz for use
as a portable industrial engine, the M2B15 was largely used by motorcycle manufacturers,
notably Victoria of Nuremberg, and Bayerische Flugzeugwerke in their Helios motorcycle. Friz
was also working on car engines.
BMW merged with Bayerische Flugzeugwerke in 1922, inheriting from them the Helios
motorcycle and a small two-stroke motorized bicycle called the Flink. In 1923, BMW's first
"across the frame" version of the boxer engine was designed by Friz. The R32 had a 486 cc (29.7
cubic inches) engine with 8.5 hp (6.3 kW) and a top speed of 95 to 100 km/h (59 to 62 mph). The
engine and gearbox formed a bolt-up single unit. At a time when many motorcycle
manufacturers used total-loss oiling systems, the new BMW engine featured a recirculating wet
sump oiling system with a drip feed to roller bearings. This system was used by BMW until
1969, when they adopted the "high-pressure oil" system based on shell bearings and tight
clearances, still in use today.
The R32 became the foundation for all future boxer-powered BMW motorcycles. BMW oriented
the boxer engine with the cylinder heads projecting out on each side for cooling as did the earlier
British ABC. Other motorcycle manufacturers, including Douglas and Harley-Davidson, aligned
the cylinders with the frame, one cylinder facing towards the front wheel and the other towards
the back wheel. The R32 also incorporated shaft drive. BMW has continued to use shaft drive on
its motorcycles and did not produce a chain driven model until the introduction of the F650 in
1994.

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BMW R2, a 200cc single-cylinder BMW motorcycle. The first single-cylinder BMW was the
1925 R39.
In 1925, BMW introduced the R39, a 250 cc single-cylinder motorcycle. It was not successful
and was discontinued in 1927. In 1931, BMW introduced the single-cylinder shaft-driven R2,
which, as a 200 cc motorcycle, could be operated in Germany without a motorcycle licence at
that time. The R2 headed a series of single-cylinder BMW motorcycles, including the 400 cc R4
in 1932 and the 300 cc R3 in 1936.
BMW R12: the R12 and the R17 were the first production motorcycles with hydraulically
damped telescopic forks
The BMW R12 and R17, both introduced in 1935, were the first production motorcycles with
hydraulically damped telescopic forks.
In 1937, Ernst Henne rode a supercharged 500 cc (31 cubic inches) overhead camshaft BMW
173.88 mph (279.83 km/h), setting a world record that stood for 14 years.

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BMW Sahara, Poland 1944
During World War II the Wehrmacht needed as many vehicles as it could get of all types and
many other German companies were asked to build motorcycles. The R75 performed particularly
well in the harsh operating environment of the North African Campaign. Motorcycles of every
style had performed acceptably well in Europe but, in the desert, the protruding cylinders of the
flat-twin engine performed better than other configurations which overheated in the sun. Shaft
drives also performed better than chain-drives which were damaged by desert grit.
The U.S. Army took note of these advantages and asked Harley-Davidson, Indian and Delco to
produce a motorcycle similar to the side-valve BMW R71. Harley-Davidson copied the BMW
engine and transmissions—simply converting metric measurements to inches—and produced the
shaft-drive 750 cc (46 cubic inches) 1942 Harley-Davidson XA.
1945–1955
Tank roundel with Serif typeface

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BMW R35, built in East Germany after World War II
The first postwar West German BMW, the 1948 250 cc BMW R24 ready for sale
500 cc BMW R51/3
1955–1969
250cc R27, the last BMW shaft-driven single
As the 1950s progressed, motorcycle sales plummeted. In 1957, three of BMW's major German
competitors went out of business. In 1954, BMW produced 30,000 motorcycles. By 1957, that
number was less than 5,500.

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1959 R50
In 1955, BMW began introducing a new range of motorcycles with Earles forks and enclosed
drive shafts. These were the 26 hp (19 kW) 500 cc R50, the 30 hp (22 kW) 600 cc R60, and the
35 hp (26 kW) sporting 600 cc R69.
On June 8, 1959, John Penton rode a BMW R69 from New York to Los Angeles in 53 hours and
11 minutes, slashing over 24 hours from the previous record of 77 hours and 53 minutes set by
Earl Robinson on a 45 cubic inch (740 cc) Harley-Davidson.
Although U.S. sales of BMW motorcycles were strong, BMW was in financial trouble. Through
the combination of selling off its aircraft engine division and obtaining financing with the help of
Herbert Quandt, BMW was able to survive. The turnaround was thanks in part to the increasing
success of BMW's automotive division. Since the beginnings of its motorcycle manufacturing,
BMW periodically introduced single-cylinder models. In 1967, BMW offered the last of these,
the R27. Most of BMW's offerings were still designed to be used with sidecars. By this time
sidecars were no longer a consideration of most riders; people were interested in sportier
motorcycles.
The 26 hp (19 kW) R50/2, 30 hp (22 kW) R60/2, and 42 hp (31 kW) R69S marked the end of
sidecar-capable BMWs. Of this era, the R69S remains the most desirable example of the dubbed
"/2" ("slash-two") series because of significantly greater engine power than other models, among
other features unique to this design.
For the 1968 and 1969 model years only, BMW exported into the United States three "US"
models. These were the R50US, the R60US, and the R69US. On these motorcycles, there were
no sidecar lugs attached to the frame and the front forks were telescopic forks, which were later
used worldwide on the slash-5 series of 1970 through 1973. Earles-fork models were sold
simultaneously in the United States as buyers had their choice of front suspensions.

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1970–1982
BMW R75/5
In 1970, BMW introduced an entirely revamped product line of 500 cc, 600 cc and 750 cc
displacement models, the R50/5, R60/5 and R75/5 respectively, which came with the "US"
telescopic forks noted above. The engines were a complete redesign. The roller and ball-bearings
in the bottom end had been replaced by shell-type journal bearings similar to those used in
modern car engines. The camshaft, which had been at the top of the engine, was placed under the
crankshaft, giving better ground clearance under the cylinders while retaining the low Centre of
gravity of the flat-twin layout. The new engine had an electric starter, although the traditional
gearbox-mounted kick starter was retained. The styling of the first models included chrome-
plated side panels and a restyled tank. The 5 series was given a longer rear swingarm, resulting
in a longer wheelbase. This improved the handling and allowed a larger battery to be installed.
The 5 models were the first to be built at BMW's new motorcycle factory in Spandau, West
Berlin. Motorcycle production had been relocated from the Milbertshofen factory in Munich to
this factory, which had been built on the site earlier occupied by a Siemens aircraft engine
factory.
The 5 models were short-lived, however, being replaced by another new product line in 1974. In
that year the 500 cc model was deleted from the lineup and an even bigger 900 cc model was
introduced, as was a five-speed gearbox, and improvements to the electrical system and frame
geometry. These models were the R60/6, R75/6 and the R90/6. In 1973 a super sport model, the
BMW R90S, was introduced. In 1975, the kick starter was finally eliminated.
1994 BMW R100RT

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In 1977, the product line moved on to the "/7" models. The R80/7 was added to the line. The R90
(898 cc) models, "/6" and R90S models were replaced by updated versions with a new 1,000 cc;
engine, the R100/7, the R100S and the new super sport model the R100RS with a full fairing.
This sleek model, designed through wind-tunnel testing, produced 70 hp (51 kW) and had a top
speed of 200 km/h (124 mph). The R100RS had a shorter rear end ratio to overcome the higher
wind resistance of the full fairing. Many period motorcycle tests in Germany (Das Motorrad)
indicated it was actually slightly slower than the R100S with only 65 hp. In 1978, the R100RT
was introduced into the lineup for the 1979 model year, as BMW's first "full-dress" tourer. The
RS and RT fairings were very similar in appearance; however, the RS fairing was essentially a
lightweight streamlining/protective shell and windscreen with no other functions, while the RT
shell was heavier and had two "glove box" lockable compartments, ventilation louvres and an
adjustable windscreen. The RT fairing was widely used for police motorcycles, with radio
equipment in the fairing compartments.
In 1979, the R60 was replaced with the 650 cc R65, an entry-level motorcycle with 48 hp
(36 kW) that had its very own frame design. Due to its smaller size and better geometrics, front
and rear 18-inch (460 mm) wheels and a very light flywheel, was an incredibly well-handling
bike that could easily keep up and even run away from its larger brothers when in proper hands
on sinuous roads. BMW added a variant in 1982: the R65LS, a "sportier" model with a one-
fourth fairing, double front disc brakes, stiffer suspension and different carburettors that added
5 hp (4 kW).
1983–2003
1986 BMW K100RS
BMW R1200C cruiser

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1996–2004 BMW K1200RS
In early 1983, BMW introduced a 987 cc, in-line four-cylinder, water-cooled fuel injected engine
to the European market, the K100. The K series comes with a simplified and distinctive rear
suspension, a single-sided swingarm. (In 1985 the traditionally powered boxer R80RT touring
bike received this monolever rear suspension system and in 1987 the R100RT received it).
In 1985, BMW introduced a 750 cc three-cylinder version, this one smoothed with another first,
a counterbalance shaft.
In 1986, BMW introduced an electrically adjustable windshield on the K100LT.
In 1988, BMW introduced ABS on its motorcycles. ABS became standard on all BMW K
models. In 1993 ABS was first introduced on BMW's boxer line on the R1100RS. It has since
become available as an option on the rest of BMW's motorcycle range.
In 1989, BMW introduced its version of a full-fairing sport bike, the K1. It was based upon the
K100 engine, but now with four valves per cylinder. Output was near 100 hp (75 kW).
In 1995, BMW ceased production of airhead 2-valve engines and moved its boxer-engined line
completely over to the 4-valve oil head system first introduced in 1993.
During this period, BMW introduced a number of motorcycles including:
 R Series (airheads) - R65GS, R80GS, R100GS, and the R100gspd, which was marketed
to celebrate the winning of the famous Paris to Dakar cross country race by a modified
GS airhead BMW. This model is highly converted among BMW collectors, and long
distances 'around the world' travelers, because of its inherent reliability, and it's simplicity
to work on.
 R Series (oil heads) - R850R/GS/C, R1100S/RS/RT/GS/S, R1150R/RS/RT/GS/S,
R1200C
 F Series - F650 Funduro, F650ST Strada, F650GS, F650GS Dakar, F650CS Scarver
 K Series - K1, K100, K100RS, K100RT, K75, K75C, K75S, K75RT, K1100RS,
K1100LT, K1200RS, K1200LT, K1200GT.
 C1 enclosed scooter

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The R1200C, produced from 1997 to 2004, was BMW Motorcycles only entry into the Cruiser
market. At the other end of the model lineup, the C1, produced from 2000 to 2002, was an
enclosed scooter, the only scooter to be offered for sale by BMW.
Since 2004
K series
On 25 September 2004, BMW globally launched a radically redesigned K Series motorcycle, the
K1200S, containing an all new in-line four-cylinder, liquid-cooled engine featuring 123 kW
(165 hp). The K1200S was primarily designed as a Super Sport motorcycle, albeit larger and
heavier than the closest Japanese competitors. Shortly after the launch of the K1200S, problems
were discovered with the new power plant leading to a recall until the beginning of 2005, when
corrective changes were put in place.
In the years after the launch of K1200S, BMW has also launched the K1200R naked roadster,
and the K1200GT sport tourer, which started to appear in dealer showrooms in spring (March–
June) 2006. All three new K-series motorcycles are based on the new in-line four-cylinder
engine, with slightly varying degrees of power. In 2007, BMW added the K1200R Sport, a semi-
faired sport touring version of the K1200R.
In October 2008, BMW launched three new 1,300 cc K-series models: the K1300R, K1300S and
K1300GT. The K1300 models feature an increase in engine capacity of 136 cc, an increase in
power to 175 hp (130 kW), newly styled fairings and a new exhaust system.
In 2011, BMW launched two six-cylinder, 1,600 cc, K1600GT and K1600GTL motorcycles, the
former intended as a sport-tourer and the latter as a luxury touring model. The engine produces
160 hp (120 kW) and 129 lb·ft (175 N·m). They also offer adaptive headlights, traction control,
ABS, tire pressure monitors, and a variety of sound systems.
R series
R1200GS

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2015 BMW R1200RT
In 2004, bikes with the opposed-twin-cylinder "boxer" engine were also revamped. The new
boxer displacement is 1,170 cc (71 cubic inches). The engine is more powerful, and all of the
motorcycles that use it are lighter than their predecessors.
The first motorcycle to be launched with this updated engine was the R1200GS dual-purpose
motorcycle. The R1200RT pourer and R1200ST sports tourer followed shortly behind. BMW
then introduced the 175 kg (386 lb), 105 kW (141 hp) HP2 Enduro, and the 223 kg (492 lb),
100 hp (75 kW) R1200GS Adventure, each specifically targeting the off-road and adventure-
touring motorcycle segment, respectively. In 2007, the HP2 Enduro was joined by the road-
biased HP2 Megamoto fitted with smaller alloy wheels and street tyres.
In 2006, BMW launched the R1200R and the R1200S, which is rated at 81 kW (109 hp) @
7,500 rpm.
In 2014, BMW introduced a completely new R1200RT with 125 hp (92 kW) at 7,750 rpm, 92
lb/ft (125 Nm) torque at 6,500 rpm, and a wet clutch.
In 2015 BMW introduced in the R1200RT keyless ignition and the "San Marino blue" color.
F series
F 800S
BMW has also paid attention to the F Series in 2006. It lowered the price on the existing F650GS
and F650GS Dakar, and eliminated the F650CS Scarver to make room in the lineup for the all-
new F800 Series. The new motorcycles are powered by a parallel twin engine, built by Rotax.
They feature either a belt drive system, similar to the belt drive found on the now defunct

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F650CS, or chain drive. Initially, BMW launched two models of the new F800 Series, the F800S
sport bike and the F800ST sport tourer; these were followed by F650GS and F800GS dual-
purpose motorcycles, both of which use the 798 cc engine despite the different names.
G series
G650 Xchallenge enduro
In October 2006, following a nomenclature change, BMW announced the G series of off-road
style motorcycles co-developed with Aprilia. These were equipped with an uprated single-
cylinder water-cooled 652 cc fuel-injected engine producing 53 hp (40 kW), similar to the one
fitted to the single-cylinder F650GS, and equipped with chain drive. Initially, there were three
models in the series, all produced for BMW by Aprilia in their North Italian Scorzè Plant, each
focused on a slightly different market:
 G650 Xchallenge hard enduro featuring 21 inch front and 18 inch rear spoked wheels
 G650 Xcountry scrambler / adventure sports featuring 19 inch front and 17 inch rear
spoked wheels
 G650 Xmoto street moto / supermoto featuring 17 inch cast alloy wheels.
The G450X, a hard-enduro was introduced in 2007, and discontinued in 2010.
At the end of 2010 BMW introduced the G650GS, an extensively facelifted and reworked
version of the original F650GS.
HP2 Series
First was the 175 kg (386 lb), 105 hp (78 kW) HP2 Enduro, followed by the road-biased HP2
Megamoto fitted with smaller alloy wheels and street tyres in 2007.
In April 2007, BMW announced its return to competitive road racing, entering a factory team
with a "Sport Boxer" version of the R1200S to four 24-hour endurance races. In 2008 they
released this as the HP2 Sport.

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Engine types
There are currently four lines of BMW motorcycles:
 F & G series singles
 F series twins
 R series
 K series
R series flat-twins
Four different BMW airhead and oil head valve covers.
1954 R68's two-fin valve cover
BMW K100 motorcycle engine circa 1986

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Type and ownership pattern
Ownership:-
Stefan Quandt: 17.4%
Johanna Quandt: 16.7%
Susanne Klatten: 12.6%
Free Float: 53.3%
Type:-
Strategic investors: 46.7%
Institutional investors:
North America: 15.8%
United Kingdom and Ireland: 11.8%
Other Europe: 5.7%
Germany: 4.8%
Rest of the world: 2.5%
Other investors: 12.7%

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Production layout
In 2006, BMW produced 1,366,838 four-
wheeled vehicles, which were manufactured in five countries.
In 2009, it manufactured 1,258,417 four-
wheeled vehicles.
In 2009, BMW Motored produced
82,631 motorcycles.

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Country Make Cars (2006) Cars (2008) Models
Germany BMW 905,057 901,898 Others
United Kingdom Mini 187,454 235,019 All Minis
Rolls-Royce 67 1,417 All Rolls-Royce
Austria BMW 114,306 82,863 BMW X3
USA BMW 105,172 170,741 BMW X5, X6
South Africa BMW 54,782 47,980 BMW 3-Series
Total 1,366,838 1,439,918
Organization policies
1. Mutual respect - a positive culture of conflict.
2. Thinking beyond national and cultural boundaries.
3. The performance of our employees is the basis for remuneration.
4. Team performance is more than the sum of individuals' performance.
5. Secure and attractive jobs for committed and responsible employees.
6. Respect for human rights is a given.
7. Social standards for suppliers and business partners are a basis for doing business.
8. Outstanding benefits for employees and a strong commitment to society.

30
Chapter-2: Industrial Analysis
Industrial overview- (Growth rate of Industry, Contribution to GDP)
Vehicle production forecast for the car alliance BMW Group from 2010 to 2015 (in million
units)
The statistic shows a vehicle production forecast for the car alliance BMW Group from 2010 to
2015. The vehicle production of the car alliance BMW Group is projected to increase from about
1.49 million units in 2010 to about 2.03 million units in 2015. Between 2010 and 2015, the
compound annual growth rate of the BMW Group is projected to be at 6.5 percent.

31
BMW delivered 6,246 cars in 2010, recording 73 per cent growth in sales and capturing 40 per
cent market share in the luxury car segment, which is estimated at around 15,000 units annually.
Its 3 Series and 5 Series showed splendid performance with sale of 2,432 (111 per cent growth)
and 2,403 units (51 per cent growth), respectively. The total number of cars sold in the domestic
market exceeded the company's target of 4,200 units in 2010.
“In 2010, we embarked on the second wave of India
market offensive with a carefully planned and passionately executed business strategy. In terms
of the sales growth rate, India was among the top three markets for BMW after China, which saw
over 80 per cent growth. India and Korea followed it at around the same level,” said BMW India
President Andreas Schaaf.

32
BMW, the world's largest luxury car maker by volume, said on Tuesday sales of its namesake
BMW brand rose 9.2% to 117,164 on the back of double-digit gains in Asia. By region, its
overall sales grew 18% in Asia, 3.8% in the Americas, and 1.4% in Europe.
BMW said January's figures build on gains made in 2013, and that it is targeting a fourth
consecutive year of annual sales increases in 2014.
Current issues
BMW is recalling about
750,000 of its vehicles in the United States, Japan, Canada and South Africa due the chance of an
electrical failure that may cause the cars to stall unexpectedly, U.S. regulators and the company
said. Vehicles sold in Germany, BMW's home market, and the rest of Europe are not involved in
the recall. The recall affects Bayerische Motoren Werke AG's popular 3-Series sedans,
convertibles, coupes and sports wagons, as well as its 1-Series coupes and convertibles and Z4
two-seat roadsters. In some markets, the X1 crossover vehicle is also part of the recall.
The affected vehicles were built between March 2007 and July 2011.A battery cable connection
with a fuse box on the cars may degrade over time, which could cause the engine to stall because
of a loss of electric power, increasing the risk of a crash, the U.S. National Highway Traffic
Safety Administration said in a report issued on Monday.
BMW on Tuesday said that there was one crash, in Canada, related to the issue, which did not
cause injury. There have been no reported crashes or injuries in the United States, BMW said.
Among major BMW markets, the company is recalling 504,545 cars in the United States,
100,000 in Japan, 65,285 in Canada, and 50,000 in South Africa, the company said.
The vehicles involved in the recall include the 3-Series sedans, coupes, convertibles and sports
wagons from the 2007-2011 model years, the 1-Series coupes and convertibles from model years
2008-2012 and the Z4 vehicles from model years 2009-2011.

33
Among the recalls in Canada are 1,800 X1 compact crossover vehicles from the model year
2012. The X1 was not yet on sale in the U.S. market in the period covered by the recall, BMW
said
Key competitors
1. Volvo
2. Lincoln
3. Mercedes-Benz
4. Lexus
5. Acura
6. Audi
7. Jaguar
8. Infiniti

34
9. Cadillac
Environmental scanning
Political environment:- Political environment highlight the probable government laws
and regulations, security measures and restrictions that can apply to the industry as a whole. The
probable environment that effect the automobile industry are:
1. Laws and regulations had affected the automobile industry since its outburst. These laws
generally revolved around the environmental norms that were to be fulfilled by any car industry.
Thus the car manufacturers had to take care of the environmental issues during manufacturing of
cars.
2. Taxes and government foreign policies are critical for the automobile industry. The foreign
policies help to us decide the probability of success in the global market.
3. Introduction of new schemes in the US and Europe automobile industry wherein regulation led
to produce high mileage cars along with increase in automobile sales and production.
Economical environment:- Ecomomical environment related to the exchange rates,
economic growth globally and the business setting prevailing in the industry. Economic
environment for the industry are:
1. There was excess capacity of cars produce thus giving rise to high amount of revenue in
marketing and new product designs. Thus there was lot of revenue withheld even through
demand was less than supply. For example the UK auto market had excess 80% capacity in 2003
which freeze 1.3 billion euro of the automobile industry.
2. Total increase in the GDP globally from 2.0% to 3.1% in the year 2008.
3. Decrease in the exchang rate if euro has hampered the European car makers in a big way.
4. Economic downturn in the US market.
5. Surplus capital and buying power in the developing economies like India and China and their
personal emergence in the global market place.
Socio-cultural environment:- Socio-cultural environment include the changes in
cultures and demo graphics globally apart from change in buying pattern and capacity of the
customer. Socio-cultural environment having an impact on the auto industry are:
1. Changes in the customer predilection from car being a status symbol to fuel efficiency and low
emission cars.

35
2. Changes in buying pattern of the consumers due to recession in mature market.
3. Environmental issues and awareness of the harmful emissions through automobiles.
Technological environment:-
1. Increase in use of technology to gain a clear competitive advantage.
2. Use of new and sophisticated design to overcome the decreased margins in the industry.
3. Modifications or restriction on technology causing environmental pollution.
Legal environment:-
1. Restrictions and strict pollution norms set up in European and US markets.
2. Strict implications of the EURO norms in developing countries e.g, formation of BHARAT
norms in India.
Porters five forces model of competition

36
Chapter-3: Research methodology and Data analysis
Research methodology
The process used to collect information and data for the purpose of making business decisions.
The methodology may include publication research, interview, surveys and other research
techniques, and could include both present and historical information.
Research design
A research design is the “blue print” of the study. The design of a study defines the study type
(descriptive, correlational, semi-experimental experimental, review, meta-analytic) and sub-type
(e.g., descriptive-longitudinal case study), research question, hypotheses, independent and
dependent variables, experimental design, and, if applicable, data collection methods and a
statistical analysis plan. Research design is the framework that has been created to seek answer
to research questions.
Data collection or its methods
Data collection is the process of gathering and measuring information on variable of interest, in
an established systematic fashion that enables one to answer stated research questions, test
hypotheses, and evaluate outcomes. The data collection components of research is common to all
field of study including physical and social sciences, humanities, business, etc.
Methods of data collection
Registration: registers and licences are particularly valuable for complete enumeration, but
are limited to variables that change slowly, such as numbers of fishing vessels and their
characteristics.
Questionnaires: forms which are completed and returned by respondents. An inexpensive
method that is useful where literacy rates are high and respondents are co-operative.
Interviews: forms which are completed through an interview with the respondent. More
expensive than questionnaires, but they are better for more complex questions, low literacy or
less co-operation.
Direct observations: making direct measurements is the most accurate method for many
variables, such as catch, but is often expensive. Many methods, such as observer programmes,
are limited to industrial fisheries.
Reporting: the main alternative to making direct measurements is to require fishers and
others to report their activities. Reporting requires literacy and co-operation, but can be backed
up by a legal requirement and direct measurements.

37
Primary Data
Primary research consists of a collection of original primary data collected by the researcher. It
can be accomplished through various methods, including questionnaires and telephone interview
in market research, or experiments and direct observations in the physical sciences, amongst
others.
Primary data could be collected in three different ways, which is interview by visit, interview by
phone or by questionnaires. Every method has its advantages and disadvantages. In this thesis,
focus has been on telephone interviews.
The telephone interview have the advantages of that they are immediate, the percentage of
answers is high and the necessary complementary questions are easy to ask. The disadvantages
with telephone interview are that the questions have to be rather easy to ask, that the affects by
interviews could influence the respondent and that sensitive questions are not that suitable in this
kind of interview situation.

38
DATA ANALYSIS ON THE BASIS OF ANNEXURE
Q1.Which brand of car you prefer?
a) Audi c) Mercedes-Benz
b) BMW d) Jaguar
Interpretation:- According to this question, we can see that Audi is the most favorite brand
where as 39% of people are liking BMW, 9% people are liking Mercedes-Benz and 10% of
people are liking Jaguar.
Audi
42%
BMW
39%
Mercedes-Benz
9%
Jaguar
10%

39
Q2. Which of these types of cars would you consider driving?
a) Sedan c) Estate
b) Sports d) Prestige car
Interpretation:- According to this question, we can see that Sedan is the most favorite car where
as 25% of people are liking Sports car, 20% of people are liking Estate and 16% of people are
liking Prestige car.
Sedan
39%
Sports
25%
Estate
20%
Prestige car
16%

40
Q3. Would you like to buy a used car?
a) Yes b) No
Interpretation:- According to this question, we can see that people were not buying used car.
They like to buy through BMW showroom.
Yes
11%
NO
89%

41
Q4. Are you satisfied with the services of BMW?
a) Yes b) No
Interpretation:- According to this question, we can see that most of the people are satisfied with
the services of BMW.
Yes
96%
No
4%

42
Q5. Are you satisfied with the price of BMW?
a) Yes b) No
Interpretation:- According to this question, we can conclude that approx. 75% of people are
satisfied with the prices of BMW and approx. 25% of people are not satisfied with prices of the
company.
Yes
75%
NO
25%

43
Q6.If the price of the BMW brand increases, will you purchase the product again?
a) Yes b) No
Interpretation:- According to the question, we can observe that 65% of people will buy the
product of BMW if the prices of the product will increased and rest 35% of people will not buy
the product if the prices will be increased.
Yes
65%
No
35%

44
Q7. If you are using BMW product, are you loyal to it?
a) Yes b) No
Interpretation:- According to the question, we can see that 59% of people are loyal towards the
BMW product and rest are not.
Yes
59%
NO
41%

45
Q8. Do you ever bought the BMW product internationally?
a) Yes b) No
Interpretation:- As we can see that , 9% of people only buy the product internationally and rest
91% of people don’t refer to buy products internationally.
YES
9%
NO
91%

46
Q9. Do you have any complaint regarding the product or brand?
a) Yes b) No
Interpretation:- According to this question, we can see that 95% of people have no complaints
regarding the product or a brand and rest 5% of people are having the complaints about the
products or a brand.
Yes
5%
No
95%

47
Q10. Would you like to switch to another brand with additional features?
a) Yes b) NO
Interpretation:- According to this question, we can see that 67% of people are like to switch the
product with additional features and rest are not.
Yes
67%
No
33%

48
Chapter-4: Marketing strategies
Products of Company
 Wide selection of models
 Different style to meet the customer’s needs
 BMW Universal Bluetooth
 iPod with BMW
 BMW accessories
Products
 BMW 3Series:Sedan, Coupe, Convertible, Touring, Compact
 BMW 5Series:Sedan, Touring
 BMW 6Series:Coupe, Convertible
 BMW 7Series:Sedan
 BMW Z4:Roadster
 BMW X3
 BMW X5
 BMW M:Sedan
 Mini One
 Mini Cooper

50
4 Ps-(Product, Price, Place & Promotion)
Product:
Starting in the early 1900s by building motorcycle and aeroplane engines before moving on to
cars a few years later, BMW has for many years now been at the top of its league in the car
industry. Although BMW is involved in many sports and events, as well as other promotions, the
key aspect for the success of BMW is their range of cars. BMW cars appeal to so many people
including to lower class customers. It is no surprise that BMW is a part of the “Want segment”
now. The upper class WANTS this product. Each of the cars in the series (1, 3, 5 and 7 as well as
X and other classes) is different to drive and have different characteristics. Car enthusiasts
regularly review these cars on the internet and on the television along with testimonials about
how great BMW feels to drive.
To look at this car, on full speed, on a highway is a delight. BMW started with basic models in
its start, but soon progressed to advanced engineering. The cars now boast of powerful engines,
extra ordinary pickup, fantastic speed, and a promise of safety and reliability. Over time, the
powerful promotions have propelled the BMW products to have an “Awe” factor. Whenever you
look at BMW, you really look at it. BMW motorrad too, focuses on high engineering products.
However, the numbers of cars sold by BMW is much higher in comparison to motorcycles.
An important factor here is that BMW is essentially free to operate on its own, while the other
two German brands of Audi and Mercedes are tied to different companies (VW and
Mitsubishi/Chrysler respectively) and therefore have to use parts from across the companies in
order to make savings, BMW has no such restrictions, and is free to use exactly the right part
designed precisely for the job in mind. To the public, this seems to enhance the company’s

51
reputation, and seems to be a rare case of the public expecting to pay a bit more for a product
they perceive to be of high quality.
Price:
It is no doubt, that with such good technology, and with top of the mind positioning, BMW is a
premium priced car and motorcycles company. Prices of BMW cars can vary by a great deal,
depending upon which series, model or extras the buyer intends on purchasing. What can be said
though is that BMW cars are not aimed at everybody, as they are more expensive compared to
other cars because of their image and technology, and they are also more expensive for repairs
and general maintenance.
Looking at the competition, BMW has also launched low priced cars (as per BMW standards)
like the BMW X1. The price of which starts from 22.5 lacs. This is primarily aimed to tap the
Indian market. BMW offers various loan deals and repayment methods to help those who wish to
spread the cost, and has hundreds of dealerships and showrooms word wide.
Place:
BMW has highly skilled people working for them in all areas, from mechanics to customer
helpline staff. All are prompt and professional, and work hard to maintain the company’s image.
BMW has manufacturing facilities in many different countries. In India, the manufacturing
facility is in Chennai, and the facilities were opened in March 2007 and it produces the BMW
series one, three, five and seven. This facility is capable of producing 11,000 units per year, at
maximum output. The spare parts center is located in Mumbai so that transport of these spare
parts can be carried out swiftly.
BMW has a dealerised network for the sales of its automobiles. BMW does not go through
automobile distributors, but directly appoints showroom dealers, because the investment is very
high to assign a distributor and the margins are less for showrooms. Thus, BMW has its
authorised showrooms and the cars are sold from showrooms to customers. However, for
distribution of spare parts, BMW does have distributors and stockists at strategic locations. The
showrooms of BMW are found to be present in the most premium parts of urban cities. Even in a
place like Mumbai, you will find only 3-4 showrooms of BMW, and not more. Because, BMW
will lose some of its brand image if it distributes products too aggressively.
Promotion:
2012 saw BMW ranked as the world’s most reputable company by Forbes.com. Criteria included
‘people’s willingness to buy, recommend and to work for’ the company. Interestingly, the
answers were driven 60% by perception of the company, and 40% by perception of the
company’s actual products. We marketers know that to build a positive brand perception, it takes
years and the same has happened with BMW. BMW has been promoting itself with the most
amazing television commercials, print advertisement, out of home advertisement and now
through online advertising.

52
The company itself knows that its target customers expect a certain quality from them, and are
willing to pay a bit more for it. They also expect exclusivity because the car should not be
available to the masses. Thus, the ads on television are sleek, and seem to be of a higher quality
than other car ads, asking the viewer to apply this logic to their products. BMW ads focus as
much on the looks of the car as on the engine and the technology of the car. BMW also focuses
on customer delight and a purchase of a car is almost always accompanied by gifting a few
memorable moments to the customer for the purchase of the car.
On a general scale, the car is associated in the mind of the public as being connected to success,
someone who has extra to pay for luxury and craftsmanship rather than buy a run of the mill car.
Iconic cricketer Sachin Tendulkar who himself is an avid fan of BMW and West Indies cricket
team captain Darren Sammy were roped in as their brand ambassadors.
STP-(Segmentation, Targeting and Positioning)
BMW Segmentation Targeting and Positioning BMW, as well as, any other business entity has
to divide population into different categories according to a set of certain criteria and develop
products and services that are particularly attractive to this specific group. This marketing
process is known as segmentation, targeting and positioning. Segmentation, targeting and
positioning is important because businesses cannot offer products and services that are attractive
to all members of population in an equal manner. Segmentation implies dividing potential
customers into different groups according to certain criteria such as age, social class, lifestyle
etc. Segmentation can be divided into four types: demographic, behavioural, and psychographic.
Segmentation stage is followed by targeting and this stage is associated with selection of specific
group(s) as a target customer segment. Positioning is the last stage in segmentation, targeting and
positioning and this stage involves selection of the marketing mix that is relevant to the chosen
target customer segment in the best possible manner.

54
Distribution Channels
Promotion Strategies
Same advertising company WCSR since 1979
 James Bond film -
The World Is Not Enough (Z8 before its launch)
 Austin Power 3-Goldmember -( Mini cooper)

55
“VIRAL MARKETING”
 BMW Films (e.g. ‘The Hire’ - increased sales by 12.5% in 2001 compare to 2000
 Marketing campaign ‘The Ultimate Driving Machine’
 Golden Eye: BMW Z 3
 Tomorrow Never Dies: BMW 750iL, R1200 Motorbike

56
Chapter-5: Financial Analysis
Sources of Finance
BMW Financial Services India, which will
function as a non-banking finance company once it gets the necessary regulatory clearances. This
division will offer solutions forRetail Financing for BMW customers and also offer insurance
solutions to its customers through its cooperation partner. We also plan to introduce a pre-owned
car business with the launch of BMW Premium Selection in India. Everything about a BMW
says quality. So whether your BMW is three weeks or three years old, it is still the 'ultimate
driving machine.‟
Ratio Analysis
Ratio Analysis of BMW 2007 to 2009
1. Current Ratio
Current ratio= Current Asset
Current Liabilities
2009
Current Ratio= 39944
36919
Current ratio= 1.08 times
2008
Current ratio= 38670
39287
2007
Current ratio= 32378
33784
Analysis: These ratios tell us to pay 1 liability company has 1.08 current assets. Although in
three years the position of the company is better in tis short term debt. In 2009 the company

57
increases their current asset and minimizes their current liabilities so the company current ratio is
better.
2. Quick ratio
2009
Quick ratio= Current Asset-Inventory
Current Liabilities
Quick ratio= 39944-6555 0.88 times
36919
2008
39287
2007
39287
Analysis:
The Quick ratio shows also the better position than previous years because BMW decreased
inventory from 7290 to 6555 and also increase the current asset.
3. Cash ratio
Cash ratio= cash Equivalents+ Marketable Securities
Current Liabilities
2009
Cash ratio= 7767
36919
Cash ratio= 0.21 times
2008
Cash ratio= 7454
39287
2007
Cash ratio= 2393
33784
Analysis:
Cash ratio is improving, and they increase their cash and cash equivalents. And reduce the
currently liabilities.

58
4. Working capital ratio
2009
Working capital ratio= current assets- current liabilities
39944-36919= 3025
2008
38670-39287= -617
2007
32378-33784= -1406
Analysis
The position of working capital is much better in 2009. BMW increase the current asset and
reduce the current liabilities from the previous years.
5. Days Sales in Inventory
Days sales in inventory= Ending Inventory *365
CGS
2009
Days sales in inventory= 6555 52.75 days
45356
2008
47148
2007
43832
Analysis
This formula tells us the number of days in a year in to cost of goods sold. According the result
company is going in better position.

59
Net Profit/ Balance sheet (from annual report) -Analyses

61
CHAPTER6: KEY LEARNINGS FROM THE COMPANY AND
RECOMMENDATIONS
Performance Analysis of the Company
When analyzing the foreseeable future, 2006-2007, the annual report for the BMW Group during
the five past years, 2001 are applicable. Looking at the mean value for the posts in the income
statement and the balance sheet, an average growth in the figure is found and used as estimates.
Starting with the income statement, the mean value of the yearly growth of revenues was 4.7
percent during the year 2001-2005. Thus, the development of the revenues in the future looks
positive. However, even though the revenues have a yearly increase, the overall costs also do. As
a result the net profit becomes of interest. The mean value for the net profit during the five past
years was 14.8 percent. But when looking at the increase in the revenues year 2001, the growth
was remarkably high in comparison to the following years. For that reason the estimate is
constituted by the mean value of the years 2002-2005. The estimate of a yearly growth by 4.9
percent is 0.2 percent greater than the mean value of the revenues increase in a greater pace than
the overall costs.

62
Reasons for the expansion/contraction/diversification of Company
Future Expansion Plans
BMW plans to invest Rs 70 crore
BMW Group plans to invest Rs 70 crore by 2012 to strengthen its market share in India. The
new investment will be in addition to Rs 110 crore investments made by the company in setting
up the Chennai plant.
“We will further step up investment in India to cope with the growth market of India. As a first
step, production capacity at the BMW plant in Chennai has been increased from 3,000 to 5,400
units and the dealer network further expanded,” BMW AG Member Board of Management
Frank-Peter Arndt BMW AG said on Tuesday. BMW also launched its new sports utility vehicle
X5. The company’s two new sports utility comes in both petrol and diesel variants and is priced
between Rs 52.99 lakh and Rs 69.50 lakh. In addition to strengthening capacity, a new vehicle
logistics centre will also be set up on the grounds of the Chennai plant, for which land has
already been acquired, he said. To meet rising customer demand for BMW vehicles and services,
its sales network will be systematically expanded to 22 dealerships by 2011 almost doubling its
size since early 2009, Arndt said. Towards the end of this year, BMW Financial Services will
also begin offering its financial services in the Indian market for the first time
COMMENT ON ORGANIZATIONAL LEADERSHIP
Managers are necessary; leaders are essential. Leadership is of the Spirit, compounded of
personality and vision. Management is of the mind, more a matter of accurate calculation,
statistics, methods, timetables, and routine.

63
LEADERSHIP STYLES
SWOT Analysis of the Company
Strengths
1. Brand reputation
2. Environment friendly vehicles
3. Quality products
4. Highly skilled workforce
5. Corporate Social Responsibility (CSR)
6. Strong brand presence in India
Weaknesses
1. High cost structure
2. Weak brand portfolio
3. Perception of high prices
4. Too few acquisitions and strategic partnerships
Opportunities
1. Increasing fuel prices
2. Positive attitude towards “green” vehicles
3. Expand brand portfolio
4. Changing customer needs
Threats
1. Intense competition
2. Rising raw material prices

64
3. Decreasing fuel prices
4. Growing euro exchange rate
Market share/growth rate of Company

66
Chapter-7:FINDINGS
On an average more than 73% people feel that the prices are affordable whereas 12% do not
agree, 74% believe that attractive discount are offered whereas 26% are not satisfied with the
discounts are offered whereas are not satisfied with the discounts offered. 20% said that the test
drives are not offered and 15% said that post sales follow ups are not done regularly whereas
85% said that they were done regularly but people feel that it is the people’s car as it is
satisfaction on all other parameters: knowledgeable sales person, employees spent enough time
before and during sales, display of merchandise is attractive, availability of product, variety of
merchandize, vehicle in good condition, prices are affordable, attractive discount are offered,
décor of the waiting area is pleasing, responds to complaints quickly, service at Motors service
station is excellent, careful with personal information and is value for money. The overall
opinion about Motors is very good. 86% people agreed that the sales persons are knowledgeable
and 14% strongly disagreed that the sales persons are knowledgeable, 64% people agreed that
the sales person spent enough time with the before the sales and 36% strongly agreed with this.
62% agreed that the sales persons spent enough time with them during the sales, while 34%
strongly agreed that the sales person spent enough time with them during sales and only 4%
disagreed with this. 60% agreed that the sales persons spent enough time with them after sales,
26% strongly agreed with this and 14% disagreed that the sales person spent enough time with
them after sales. 94% agreed that the display of merchandize was attractive and 6% strongly
agreed that the display of merchandize was attractive. 91% agreed that the availability of the
product was there, 5% strongly agreed that the availability was there while only 4% said they
disagreed with this. 87% agreed that there was variety/selection of merchandize whereas 7%
strongly agreed that enough variety was there and 6% disagreed with this. 82% agreed that the
vehicle was in good condition when delivered, 16% strongly agreed with this whereas only 2%
disagreed with this. 64% strongly agreed that the price are affordable, 21% agreed that the prices
are affordable whereas only 15% said that they neither disagreed nor agreed with this. 55%
agreed that the discounts offered are attractive, 34% strongly agreed with the while 11%
disagreed and said that the discount offered were not attractive. 80% agreed that the décor of the
waiting area was leasing while 20% strongly agreed that the décor of the waiting area was
pleasing 74% agreed that the test drive was offered to them, 6% strongly agreed that the test
drive was offered while 20% disagreed with this. 59% agreed that the post sales follow ups are
done regularly, 26% strongly agreed and 15% disagreed with this. 4% agreed that the response to
complaints is quick, 18% strongly agreed, 12% neither agreed nor disagreed and 6% disagreed
with this. 82% said that the service at service station is excellent, 14% strongly agreed while only
4% disagreed with this. 85% agreed that yes they were careful with personal information,
strongly agreed with this and 8% neither agreed nor disagreed. 94% strongly agreed that all the
commitment were fulfilled and 6% agreed with this. 98% said yes they are aware about
insurance while only 2% said that they were not aware.

67
Chapter-8:Conclusions and Suggestions
CONCLUSION
Majority of the customers i.e. (82%) are aware about BMW Cars.
Friends i.e. (74%) are the most important source through which
customers came to know about BMW cars.
Price i.e. (80%) & quality i.e. (85%) are the factors which influence the customers to purchase
BMW products
BMW i.e. (76%) is the most preferred brand of car in India
SUGGESTIONS
There are still efforts are needed to make people aware about BMW cars.
BMW Company must provide after sale service to their customers. Companies shall introduce or
increase the range of their product in respect of price.

68
ANNEXURE
Hi!
I am conducting a research on the topic of “BMW company”
Kindly read and fill the questionnaire.
Thanks.
PART A
Q1.Which brand of car you prefer?
a) Audi c) Mercedes-Benz
b) BMW d) Jaguar
Q2. Which of these types of cars would you consider driving?
a) Sedan c) Estate
b) Sports d) Prestige car
Q3. Would you like to buy a used car?
a) Yes b) No
Q4. Are you satisfied with the services of BMW?
a) Yes b) No
Q5.Do you use BMW Products?
a) Yes b) No
Q6. Do you want any changes in the BMW product?
a) Yes b) No

69
Q7. If you use BMW products, are you loyal to it?
a) Yes b) NO
PART-B
Demography’s
1. Gender
A. Male
B. Female
2. Age
A. 20-30yrs.
B. 30-40yrs.
C. 40-50yrs.
D. Above 50yrs.
3. Income (household per annum)
A. Below 2.5lakhs
B. 2.5-3.5lakhs
C. 3.5-4.5lakhs
D. 5.5lakhs and above
4. Education
A. High school
B. Bachelors
C. Masters
D. PhD
5. Marital status
A. Single
B. Married
6. Occupation

70
A. Business
B. Job
C. Student
D. Housewife
BIBLIOGRAPHY
Sites visit:-
 http://en.wikipedia.org/wiki/BMW
 www.bmwproducts.com
 www.google.com
 www.scribd.com
 www.slideshare.com
 www.bmw.in
 www.bmwcars.com
Links:
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U_mvNIiBrgeSfA&ved=0CAcQ_AUoAA&biw=1366&bih=653&dpr=1#q=research+me
thodology+of+bmw

Completed project on BMW

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