BMW has kicked off a U.S. agency review for its creative account. The incumbent agency KBS has steadily lost other pieces of BMW's U.S. business in recent months. BMW looks to reclaim its sales leadership as it lost the global luxury sales crown to Mercedes-Benz in 2016, ending over a decade at the top. The document provides background on BMW of North America, the U.S. automotive industry and luxury car market, top brands and models, BMW's sales and falling U.S. sales, and insights into BMW's target millennial luxury car consumers.

1. N E W B U S I N E S S P I T C H B R I E F
DECEMBER 2017

2. T H E D A T A
The BMW creative account is officially up for grabs. The
luxury auto brand has kicked off a U.S. agency review, a
brand spokesman confirmed.
The incumbent is MDC Partners-owned KBS. The shop
has steadily lost other pieces of the brand's U.S.
business in recent months. In December, BMW handed
web development to Omnicom's Critical Mass after a
review. Last year KBS lost the social media work to
Laundry Service and the CRM account to MDC's Gale
Partners.
The changes come as BMW looks to reclaim its sales
mojo. The brand last year lost the global luxury sales
crown to Mercedes-Benz, ending a more than
decade-long run at the top.
Y O U N E E D
T O W I N
T H I S P I T C H
BMW launches
U.S. Agency Review
Creative
Global
October 27, 2017

3. C O M P A N Y B A C K G R O U N D
C L I E N T P R O F I L E / M A R K E T
BMW of North America, LLC (BMW NA) was established in 1975 as
the United States importer of BMW luxury/performance vehicles.
BMW of North America assumed import and distribution
responsibilities for BMW motorcycles in 1980.
BMW of North America also began to distribute light trucks in 1999.
BMW of North America's Corporate Headquarters is located in
Woodcliff Lake, New Jersey. Its Eastern Regional Headquarters and
Technical Training Center is located in Woodcliff Lake, New Jersey.
A Vehicle Preparation Center is in Port Jersey, NJ and a Regional
Distribution Center is in Nazareth, PA.
F I N A N C I A L O V E R V I E W
2016 Sales (mil)
2016 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
1,710
-
-
-
-
-
D E C I S I O N M A R K E R S by M A I N C O M P E T I T O R S
trudy.hardy@bmwna.comVice President,
Marketing
Ms. Trudy Hardy
michael.jobst@bmwna.comNational Marketing
Manager
Mr. Michael Jobst

4. U S A U T O M O T I V E I N D U S T R Y
O F A L L
V E H I C L E S
S O L D A R E
S U V s
6 3 %
V E H I C L E S S O L D
1 7 , 5 5 0
M I L L I O N
V E H I C L E S S O L D
$ 9 9 5
B I L L I O N
O F A F T E R M A R K E T
P R O D U C T S A R E
S O L D O N L I N E
1 2 %

5. T O P B R A N D S A N D M O D E L S
Toyota Corolla/Scion iM 378.2
Honda Civic 366.9
Honda Accord 345.2
Nissan Altima 307.3
Ford Fusion 265.8
Chevrolet Malibu 227.8
Nissan Sentra 214.7
Hyundai Elantra 208.3
B E S T S E L L I N G M O D E L S B Y U N I T S S O L D
Toyota Camry 388.6
Hyundai Sonata 199.4
Ford
Toyota Infiniti
FCA
Honda
Nissan
Hyundai
KIA
Subaru
General Motors
Volkswagen
15%
14%
13%
9%
9%
4%
4%
3%
17&
3%
2 0 1 6

6. L U X U R Y A U T O M A R K E T
LEXUS
(Toyota)
331.2
BMW
(bmw)
313.1
AUDI
(vw)
210.2
MERCEDES - BENZ
(Daimler)
340.2
L U X U R Y C A R B R A N D S B Y U N I T S S O L D
$ 4 3 8
G L O B A L L U X U R Y
C A R M A R K E T S I Z E
B I L L I O N

7. L U X U R Y A U T O M A R K E T
Lexus 16%
BMW 15.1%
Audi 10.1%
Cadillac 8.2%
Acura 7.8%
Infiniti 6.7%
Lincoln 5.4%
Jaguar Land Rover 5.1%
L U X U R Y C A R B R A N D S M A R K E T S H A R E
Mercedes - Benz 16.4%
Volvo 4%
T O P S M A L L S I Z E M O D E L
T O P L A R G E S I Z E M O D E L
T O P M I D S I Z E M O D E L
M E R C E D E S C - C L A S S
77,196
L E X U S E S
58,299
T E S L A S
29,156

8. T H E D E F I N I T I O N O F L U X U R Y C A R H A S C H A N G E D
“Luxury doesn’t have to be defined by how many
cylinders or how many gears you have. For a lot of
buyers, being really high tech and having this
self-driving capability is luxury.”
“The idea of what makes a luxury brand
has changed.
A fast zero-to-60 time used to be
important for any luxury car. But if you’re
buying an all-wheel drive S.U.V., nobody
really cares about that.”

9. TOTAL
SALES
B M W
94,164
VEHICLES SOLD
WORLDWIDE
UNITS
GROWTH
2,367 + 5.3%MILLION MILLION

10. F A L L I N G I N T H E U S A
460,398 - 7.2%
V E H I C L E S S O L D I N T H E
A M E R I C A N C O N T I N E N T
U N I T S A L E S
Y o Y
366,493 - 9.7%
V E H I C L E S S O L D I N T H E
U N I T E D S T A T E S
U N I T S A L E S
Y o Y
B M W G R O U P
Key automobile markets 2016
CHINA
21.8
USA
15.5
GERMANY
12.6
GREAT BRITAIN
10.7
FRANCE
3.6
ITALY
3.5
JAPAN
3.2
OTHER
29.8

11. I N N O V A T O R S T H R O U G H A D S
"The campaign is innovative, because it allows
audiences to begin their showroom experience
without getting off the couch"
said Robert Aksman, cofounder of connected TV ad
specialist BrightLine, which helped make the ad.
C O - F O U N D E R
BMW is cementing its reputation as an
innovative automaker by using leading-edge
advertising techniques, most recently by
enabling viewers with smart TVs to interact
with its ads via their remote controls

12. I N N O V A T O R S T H R O U G H A D S
The "Whatsnext" campaign ran on BMW's
Periscope channel and invited viewers to steer
the moves of pro rock climber Alex Honnold and
National Geographic photographer Jimmy Chin
as they take a day-long road trip in a BMW X1.
In 2015, BMW launched its new M2 on Periscope
in the brand's first interactive live-action
adventure on the platform.

13. M O S T S U C C E S S F U L A M O N G A U T O M O T I V E B R A N D S
The BMW brand’s international Instagram channel
has broken through the ten million followers’ mark,
making it the most successful automotive brand
on Instagram worldwide.
“The aim of our social media strategy is to
optimise how we use the special features of the
specific channels available to us,” explains Jörg
Poggenpohl, head of Digital Marketing BMW.
“Instagram is made for initiating authentic dialogue
with followers worldwide. It is important to us not
only to celebrate our own achievements, but, above
all, to share the excitement and enthusiasm of our
fans and customers with an audience of millions.”

14. P S Y C H O G R A P H I C S
M A L E S
7 9 . 6 %
1 8 - 2 4 Y E A R S O L D
2 2 . 0 %
W I T H O U T C H I L D R E N
6 9 . 0 %
T O P
M O T O R
L O V E R S
O U T D O O R
E N T H U S I A S T S
G A M E R S
S E E T H E F U L L P R O F I L E
B M W ‘ S A U D I E N C E

15. M I L L E N N I A L
Millennials consumers
interacting with luxury
car brands on Social
Media
(BMW, Audi, Lexus,
Mercedes)
M O T O R L O V E R S
4 . 1 x
G A M E R S
3 . 7 x
O U T D O O R E N T H U S I A S T S
2 . 9 x
T E C H I E S
2 . 5 x
L U X U R Y C A R
C O N S U M E R S

16. M I L L E N N I A L
L U X U R Y C A R
C O N S U M E R S
DEMOGRAPHICS
G E T F U L L I N S I G H T S
MALE
79%
U. S. S T A T E M A P
5 5 %
S I N G L E
6 9 %
W I T H O U T C H I L D R E N
9 3 %
L I V I N G I N
U R B A N A R E A S
7 %
A S I A N

17. G E T F U L L P R O F I L E
M I L L E N N I A L
L U X U R Y C A R
C O N S U M E R S
TARGET OPTIMIZATION
A big chunk of consumers interacting with Luxury Car Brands on social is actually unable to afford a luxury
car. Basic targeting optimization on HHI is therefore needed to analyze real potential consumers.
COLLEGE45%35%COLLEGE
NORTH - EAST1.3x
WEST1.3x
0.8x
1.1x
NORTH - EAST
WEST
OCCUPIED75%75%OCCUPIED
L O W I N C O M E A F F L U E N T
0%
5%
10%
15%
20%
25%
30%
35%
< 40 K 40 K - 70 K 70 K - 100 K 100 K - 200 K + 200 K

18. AFFINITY
INVENTIVE & CURIOUS
Media > Websites
1.30 x
ANALYTICAL & DETACHED
Media > Websites
1.60 x
Open to experiences and are intellectually curious, original,
creative and sensitive to beauty. Millennial Luxury Car
Consumers enjoy exploring new places and disrupting routines.
S T A T U S - S E E K E R S
1 . 7 x
This target is really competitive and think that risk is necessary
for growth. They strive to achieve a high social-status and to
be the best in their work.
G E T F U L L P R O F I L E
( A F F L U E N T )
M I L L E N N I A L
L U X U R Y C A R
C O N S U M E R S
PERSONALITY

19. G E T F U L L I N S I G H T S
( A F F L U E N T )
M I L L E N N I A L
L U X U R Y C A R
C O N S U M E R S
TECH & ENTERTAINMENT
T E C H N O - G A M E R S 2 . 7 x
Millennial Luxury Car Consumers are often
among the first to try new electronic gadgets.
The sole purpose of technology and electronics
for “Techno-gamers” is entertainment.
1 . 9 x
“I want the others to
say “wow” when they
see my electronics”
S T A T U S
E V E N T
L I N K
P H O T O
V I D E O
1.0 x
0.7 x
0.9 x
1.0 x
1.2 x
T Y P E O F C O N T E N T
T V C O N T E N T
Millennial Luxury Car
Consumers enjoy watching
“light” content on TV
SPORTS SHOWS
FAMILY ORIENTED
COMEDIES
1.4x
1.2x
1.1x
I N F L U E N C E R T Y P E S
ENTREPRENEURS
1 . 6 x
MODELS
1 . 4 x

20. I N S I G H T S
S U I T E
C O N S U M E R
Discover BMW’s Target Consumer
on Cubeyou Consumer Insights Suite
T R Y N O W F O R F R E E