Marketing - Toyota and BMW

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  • Strengths
    Sustained brand recognition
    (See Figure 1) for the 100 best global brands from an annual report in 2008-2009 by Business Week.
    BMW are ranked 14th
    Toyota are ranked 8th

    Weaknesses
    Low MPG *
    (See Figure 2) for research from the Motoring Watchdog Group for the cars up to 3000cc with the lowest MPG
    BMW have two series’ ranked 5th and 10th shown in red



  • Strengths
    Sustained brand recognition
    (See Figure 1) for the 100 best global brands from an annual report in 2008-2009 by Business Week
    Toyota are ranked 8th
    (See Figure 3) for the fortune global 500 (Top 10 * BMW)
    Toyota Motor are ranked 10th
  • Marketing - Toyota and BMW

    1. 1. W.V.T.T JoshuaWhale, AshleyVarley, MichaelTomkinson and JonathanToon
    2. 2.  Founded in 1916  Based in Germany  High performance  Luxury vehicles  Sells products under Mini and Rolls Royce Motor Cars brands
    3. 3.  Founded in 1937  Based in Japan  One of the largest automobile manufactures in the world  Produce automobiles and related parts through more than 26 countries  Conventional engine vehicles and hybrid vehicles  Sells products underToyota, Lexus, Hino and Daihatsu brands
    4. 4. 2005 2006 2007 2008 2009 Automobile Deliveries Total 1,327,992 1,373,970 1,500,678 1,435,876 1,286,310 1,150,000 1,200,000 1,250,000 1,300,000 1,350,000 1,400,000 1,450,000 1,500,000 1,550,000 Sales
    5. 5. 2006 2007 2008 2009 2010 Automobile Deliveries Total 7,974,000 8,524,000 8,913,000 7,567,000 7,237,000 6,000,000 6,500,000 7,000,000 7,500,000 8,000,000 8,500,000 9,000,000 Sales
    6. 6. CONTROLLABLE STRENGTHS • Sustained brand recognition - Helps BMW to charge premium price *(See Figure 1) • Mini sales sky high worldwide • Customers have high income WEAKNESSES • Low MPG *(See Figure 2) • Increased costs of raw materials, e.g. oil • Falling value of Euro UNCONTROLLABLE OPPORTUNITIES • Increasing demand for more fuel efficient vehicles • Emerging markets - Asian Market • Hydrogen and electric cars • Auto industry is set to recover THREATS • High competition in automotive market • Emission standards increasing - Higher production costs • Future rising fuel prices
    7. 7. CONTROLLABLE STRENGTHS • Sustained brand recognition - Helps charge premium price *(See Figure 1 and Figure 3) • Focus on R&D departments • Strong distribution network • Production system - Lower costs WEAKNESSES • Lapses in product quality will damage brand image and sales • Unfunded pension schemes - Adverse effect on cash flow UNCONTROLLABLE OPPORTUNITIES • Increasing demand for more fuel efficient vehicles • Emerging markets - Asian Market • Product development - New product launches, keeps customer interest • Auto Industry is set to recover THREATS • High competition in automotive market • Emission standards increasing - Higher production costs • Future rising fuel prices • Falling JPY against USD
    8. 8. POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL LEGAL ENVIRONMENTAL UK - Car Scrappage Scheme 2008-10 Rising energy costs E.g. Oil Emerging Markets: China India Safer Environmentally Quality Robot Globalisation Tougher Emission Regulations Demand up for more environmental friendly vehicles EU -Threat of government intervention 2007-2009 Global Recession: Affecting sales Social Network Websites: Facebook Internet,Websites EU: 2005 - EURO 4 2009 - EURO 5 2014/15 - EURO 6 ASIA: Starting to adopt emission standards UKTaxation Fuel Duty Excise Duty Company CarTax VAT 1996 - £30.2 billion 2005 - £43.3 billion 2008-2013 Expected AnnualGrowth Rate of 4.4% USA: 2005 - ZEV 2009 - More states Australia: 2008 - New emission standards Exchange Rate Fluctuations
    9. 9. FACTOR BMW TOYOTA PRICE • Highest price - M6Convertible £92,175 • 1995 - 3 Series 318ti Base price $19,990 Lasted until 1998 • 2008 - Series 1 Cheapest version £17,610 • Reducing price & attractive finance packages in US due to the product recalls - E.g.Toyota Prius reduced by $1500 • More willing to negotiate on pricing due to product recalls PRODUCT/SERVICE • Entry-level models through Mini Brand • Used to be known for quality and reliability • Recent quality issues - leading to product recalls PLACE/DISTRIBUTION • More MEDC’s • Produce automobiles and parts in 26+ countries PROMOTION • High class, quality • Used to be “Ultimate Driving Machine” • Now its “Joy is Maternal” (Mothers and Children) - Most expensive brand-wide campaign ever in North America • 2008 - Best value on its advertising - £22 per car. Industry average - £233 per car. • Brand image problem • In the long term looking to promote the value factor they used to have
    10. 10. FACTOR BMW TOYOTA SEX Females • Open driving • S SeriesConvertible and Z4 Males 25-40 • Sport • 1 and 3 Series Males 40 + • Luxury/Professional • 5 and 7 Series Females • City/smaller car • iQ,Aygo, Urban cruiser andYaris Males • Saloons • Avensis, Auris and Prius INCOME Higher - £40,000 + Average - £25,543 SOCIAL CLASS High A and B Class Medium/Low C1 and C2 Class LIFESTYLE Families • Spaciousness and interior versatility • X3 and X5 Active lifestyles • Interest in outdoor activities, extreme sports • 3 and 5 SeriesTouring Average family vehicle • Reliable • Spacious • Affordable Appreciative of the environment POPULATION/AGE Urban / 39 or younger • Z4 and 1 Series Urban and Rural / 25 LEVELS OF EDUCATION High Average ENVIRONMENTAL Little or No interest High interest POPULATION Global Global
    11. 11. USA - 37 Australia - 4 Europe - 18 Canada - 4 China - 15 Indonesia - 4 Thailand - 5 Other - 13 Toyota - Key Automobile markets 2009 As a percentage of sales volume BMW - Key Automobile markets 2009 As a percentage of sales volume Germany - 20.8 Italy - 5.9 USA - 18.8 France- 4.9 UK - 10.7 Spain - 3.2 China - 7.7 Other - 28.0
    12. 12. FUNCTIONAL BMW FEATURES Sport, Luxury and Open Driving QUALITY High, top end of market USE With high performance EXPRESSIVELY TOYOTA USER For more an average user, wider market BENEFIT More MPG and environmentally friendly HERITAGE High quality reputation since 1970’s
    13. 13.  BMW, 2009.Annual report 2009-2010. [online] Available at: <http://www.bmwgroup.com/annualreport2009/_downloads/BMW_Group_2009.pdf> [Accessed 17 October 2010]  Toyota, 2010. History ofToyota. [online] Available at: <http://www2.toyota.co.jp/en/history/> [Accessed 7 October 2010]  Toyota, 2010. Financial Highlights. [online]Available at: <http://www.toyota.co.jp/en/ir/financial/high-light.html> [Accessed 7 October 2010]  Toyota, 2010. Market/Toyota Sales and Production. [online] Available at: <http://www2.toyota.co.jp/en/about_toyota/data/> [Accessed 7 October 2010]  Toyota, 2010. Sustainability Report 2010. [online]Available at: <http://www.toyota.co.jp/en/csr/report/10/download/pdf/sustainability_report10.pdf> [Accessed 7 October 2010]  Direct IndependentConsumer Opinion from the MotoringWatchdogGroup, 2010. Least fuel efficient cars. [online] Available at: <http://www.dicomwg12.org/car-league-tables.php?max=3000&res=10&tab=2&submit=Get+results> [Accessed 20 October 2010]  BusinessWeek, 2009. Annual report 2008-2009. [online]Available at: <http://www.businessweek.com/interactive_reports/best_global_brands_2009.html> [Accessed 18 October 2010]  CNNMoney, 2009, Annual report 2009-2010 [online]Available at: <http://money.cnn.com/magazines/fortune/global500/2009/full_list/> [Accessed 18October 2010]  Unnamed author, 2010. BMW adopts Facebook fan page. New MediaAge, [online] 5 August.Available through: Mintel Available at: <http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=63455/display/id=540841> [Accessed 9 October 2010]  Unnamed author, 2009. BMW chief warns against government intervention. FinancialTimes, [online] Mintel, 4 March. Available through: Mintel Available at: <http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=63455/list/id=63455&type=NSIt em&class=MarketUpdate/display/id=443807&anchor=443807> [Accessed 9October 2010]  Steven Cole Smith, 2008. Budget Beemer: BMW's new 1-Series models offer style and flash - but for a lot less cash. Orlando Sentinel. [online]5April. Available at: <http://articles.orlandosentinel.com/2008-04-05/news/ridelede5_1_c230- 318ti-bmw-and-mercedes> [Accessed 9 October 2010]  Anderson, Jessica, 2010. Don’t Count OutToyota. Kiplinger’s Personal Finance. [e-journal] 62{4)p85, Abstract only. Available through: Business Source Premier. [Accessed 10 October 2010]
    14. 14. W.V.T.T JoshuaWhale, AshleyVarley, MichaelTomkinson and JonathanToon

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