BRM PROJECT

Topic – To Study the Marketing Strategy of BMW Ltd

Name – YASH SUNIL KARANDE

Std – SYBMS Marketing

Roll No – 135

Sub – Business Research Methods

Professor Name – Urmila Shetve

Academic Year – 2021-22

 INDEX

Chapter 1- Introduction

Chapter 2- Literature Review

Chapter 3- Research Methodology

Chapter 4- Data analysis & interpretation

Chapter 5- Findings, Suggestions, & Conclusion

Chapter 6- Bibliography, Webliography & Annexure

 Chapter-1: Introduction of the company

 Nature of Business

 History of BMW

The three magic letters stand for Bayerische Motoren Werke, or in English, Bavarian
Motor These 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.
 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 Flugmaschine fabrik” 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 March7,
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

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

 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.
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 Jumo210 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.
  Engine types

There are currently four lines of BMW motorcycles:

1) F & G series singles

2) F series twins
3) R series
4) 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

  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%

  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.

 Country Make Cars (2006) Cars (2008) Models
Germany BMW 905,057 901,898 Others
United Mini 187,454 235,019 All Minis
Kingdom
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

 Criticism of the sources

It is important to take into consideration that the secondary data is more frequently
affected by values and purpose from the origin of the primary data. As mensioned before
the information used in the study is obtain from the BMW and other automotive
manufacturer websites and annual reports. Moreover, to have a critical perspective
towards all the information we will value the information better and distinguish facts
from the subjective opinions.

 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

3. Decreasing fuel prices

4. Growing euro exchange rate

 Chapter- 2 : Literature Review

1. In addition, the BMW brand can be described by the brand model of Dr. Helene
Karmasin as well. In the term of BMW the core attitude is “sheer driving
pleasure” (BMW, 2009a) which means to have fun by driving a BMW car. BMW
achieves this attitude through the code of discipline.

2. Discipline embodies safety which BMW is trying to realize through its famous
anti-lock braking systems (ABS) which enables enhanced performance on the
street. Furthermore the vehicles include high quality of interior and exterior
materials and also high quality engine (BMW, 2009b). The BMW Group always
improves the road safety of its vehicles. According to the press the company
displayed a sample of its cars fitted with innovative technology on the
International Technical Conference on the Enhanced Safety of Vehicles (ESV)
which is the world’s largest and most important conference focusing on the issue
of vehicle safety (BMW, 2009b).

3. The culture of hedonism in a BMW is different to the one of a Mercedes. The

BMW vehicles have a more sportive design than a classic and traditional design.
But all over a BMW embodies enjoyment and the lust for life according to the
history of BMW. For example the BMW 3 series with its perfect road holding and
its stylish and sportive design (BMW, 2009).

4. The code of solidarity BMW is trying to embody through its very low fuel
consumption and its well engineered engines. The brand values of both
manufacturers are evident not only in the products themselves but also in the way
they are distributed. This is particularly clear with “Mercedes-Benz world” and
“BMW world”.

5. There the customers collect their cars in a special atmosphere that is supposed to
make this day a unique experience.
 Chapter-3: Research methodology

 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 Approach

The approach adopted for this study is to generate data, analyze it and reflect with respect
to the customers point of view. The study focuses on exploring the customer preference
for BMW cars. Aim of this Approach is to obtain full 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:

1) 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.
2) 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.
3) 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.
4) 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.
5) 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.

 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.

 Secondry Data

The literature study is the significant part of this topic. The secondary data that is mainly
publish in article and literature is the combination of the foundation of the reference from
the frame work and the models which are described. For the application of the selected
company that is BMW we are taking the reference of the annual reports of the concern
company and different automotive articles.

 Objective of study

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.

  Research Implication

According to BMW's Research & Development, they will increase research and
development (R&D) spending to an all-time high of up to 7 billion euros ($8.6 billion)
this year as part of efforts to bring 25 electrified models to market by 2025. Spending on
developing electric and autonomous cars pushed R&D costs a billion euros higher last
year (2018), reaching 6.1 billion euros. BMW this month reported a 5.3 percent rise in
2017 operating profit on surging demand for high-margin sports utility vehicles, helping
to offset higher research spending. The company has set up a development campus
outside Munich devoted to the development of autonomous driving at least 100 million
euros is to be spent on battery-cell research.
 Chapter – 4 : Data Analysis & Interpretation

 The data is collected through the questionnaire. So their analysis and

interpretation is as follows :-

Q1.Which brand of car you prefer?

a) Audi

b) BMW

c) Mercedes-Benz

d) Jaguar

Audi 42%
BMW 39%
Mercedes-Benz 9%
Jaguar 10%

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%
Q2. Which of these types of cars would you consider driving?

a) Sedan

c) Estate

b) Sports

d) Prestige car

Sedan 39%
Sports 25%
Estate 20%
Prestige Car 16%

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%
Q3. Would you like to buy a used car?

a) Yes

b) No

No 89%
Yes 11%

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
Q4. Are you satisfied with the services of BMW?

a) Yes

b) No

Yess 96%
No 4%

Interpretation:- According to this question, we can see that most of the

people are satisfied with the services of BMW. Yes 96% No 4%

Q5. Are you satisfied with the price of BMW?

a) Yes

b) No

Yess 75%
No 25%

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%

Q6.If the price of the BMW brand increases, will you purchase the product again?
a) Yes

b) No

Yesss 65%
No 35%

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%

Q7. If you are using BMW product, are you loyal to it?
a) Yes

b) No

Yess 59%
No 41%

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%

Q8. Do you ever bought the BMW product internationally?

a) Yes
b) No

No 91%
Yess 9%

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%

Q9. Do you have any complaint regarding the product or brand?

a) Yes
b) No

No 95%
Yes 5%

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%

Q10. Would you like to switch to another brand with additional features?

a) Yes
b) NO

Yess 67%
No 33%

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%

Chapter – 5 : FINDINGS, SUGGESTION & CONCLUSION

 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.

 SUGGESTION :-

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.

 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.

Chapter – 6 : BIBLIOGRAPHY, WEBLIOGRAPHY & ANNEXURE

  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

 WEBLIOGRAPHY :-

Links: https://www.google.co.in/search?
q=porter+five+forces&source=lnms&sa=X&ei=XKFY
U_mvNIiBrgeSfA&ved=0CAcQ_AUoAA&biw=1366&bih=653&dpr=1#q=research+me
thodology+of+bmw

 ANNEXURE :-
 Hi! I am conducting a research on the topic of “BMW company”
Kindly read and fill the questionnaire.
 Thanks.

Q1.Which brand of car you prefer?

a) Audi

b) BMW

c) Mercedes-Benz

d) Jaguar

Q2. Which of these types of cars would you consider driving?

a) Sedan

b) Sports

c) Estate

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

Q7. If you are using BMW product, are you loyal to it?

a) Yes

b) No

Q8. Do you ever bought the BMW product internationally?

a) Yes

b) No

Q9. Do you have any complaint regarding the product or brand?

a) Yes

b) No

Q10. Would you like to switch to another brand with additional features?

a) Yes

b) NO