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BMW - Marketing Communication Mix

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GROUP-11

AKHIM JYOTI BARUAH


ANIRUDHWA ROY TALUKDAR
ARPITA PATI
LAXMIKANTH NENAVID
MEGHA ABHAY DESAI
SOUMITA NANDI

MARKETING
COMMUNICATION MIX
CONTENT

Sr. Topic Page No.


No.

1 Executive company summary 2

2 SWOT Analysis 3

3 Competitive Analysis 4

4 Communication mix strategy 5

5 Identifying target audience 6

6 Design communication 7

7 Selecting channel 7

8 Media Mix 8

9 Budget 9

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1.Company executive summary

Founded in 1916, BMW stands for Bayerische Motoren Werke. One of the worlds most
identified and admired brands, BMW is a manufacturing company based out of Germany
known for its world class cars and motorcycles. Known as one of the big three among
German luxury cars, the company enjoys a worldwide customer demand for its vehicles.
BMW not only has become synonymous with luxury but also status. Owning a BMW vehicle
is a matter of pride for its customers worldwide. The company takes part in various
esteemed events like formula one, bike racing, touring cars and rally cars.

BMW comes across as a strong brand in the market. Its branding is based on four core
values which are : Technology, Quality, Performance and Exclusivity. It has always
portrayed these core values in its advertising campaigns. With a consistent marketing policy,
the market niche strategy has worked wonders for BMW. BMW also relies on its sensitivity
to the environment.

It follows the Sniper Strategy for its advertising. Focusing on a particular niche market, it has
successfully won the loyalty of its customers. Its target market includes high net worth
individuals and professionals. Using mediums like television commercials, internet, print
media and mobile marketing, BMW has left no stone unturned for marketing its products.

BMW also sponsors many major events like Motorsport and Golf Sport. It has launched
several advertising campaigns like BMW is JOY which witnessed stellar success. In a
nutshell, BMW has a very strong communication mix channel. This proposal aims at
estimating the relative weighing in the communication mix, keeping in mind the objectives to
be attained.

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2.SWOT Analysis

STRENGTH WEAKNESS OPPURTUNITY THREAT


BMW is not only a Very few Expanding Stiff competition
car maker, they are strategic automobile market from other
one of the world alliances. and available space companies in
leaders in for competitors is an premium segment
motorcycle Minor opportunity like Audi,
production, aircraft controversies for BMW Mercedes
engines and marine are blown out
engines. of proportion Increasing the Low cost car
Continuous process which affects offered product companies with
improvement & the Brand portfolio along with their stylish &
technological image diversification inexpensive
advancement in its offerings
R&D
Known for its The reputation and
quality, reliability & brand identity BMW needs to
superior customer earned by so many strongly adapt to
service support. years of existence, the need of green
Design of its range of can be leveraged to fuel and green
cars acquire new machines so that it
Pool of 100000+ customers can absorb the
highly skilled potential customers
employees who More inclination of who are looking for
continuously work in affluent customers green car solutions,
100+ countries. to purchase especially in the
The top selling premium global mature markets.
luxury car in brand like BMW
developing
economies like India
and China (in terms
of total number of
vehicles sold in a
year).

COMPETITORS

Audi
Mercedes Benz
Volkswagen

3
3.Competitive analysis (VS AUDI)

For the second year in a row, Audi (81) earned the highest overall brand score in Consumer
Reports annual indicator of which brands make the best cars. Porsche (78), BMW (77),
Lexus (77), and Subaru (74) rounded out the top five in CRs rankings.

Audi bought nearly more than twice the number of networks than BMW as per 2015 report.
Audis online ads generated 20 million online views, outweighing BMW by 10:1.

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4.Communication mix strategy

Considering the competitive market and target market, BMW Group marketing message is focused
on high level of digitalization of BMW Group vehicles and their advanced set of features and
capabilities. BMW Group uses a range of elements of the marketing communication mix such as
print and media advertising, sales promotions, events and experiences, public relations and direct
marketing in an integrated manner in order to communicate its marketing message to the
representatives of the target customer segment.

FIVE Ms OF ADVERTISING

MISSION

Achieve 80% of the


market reach and
increase Car Trial Rate
by 50%

MONEY

Competitive Parity Method


Objective-Task Method

MESSAGE
MEDIA
Focused on high level of digitalization of
Television, Internet, Print, Event
BMW Group vehicles and their advanced
sponsorship, Mobile marketing
set of features and capabilities.

Social responsible view

MEASUREMENT

Recognition and recall tests for print


media.
Pretest Techniques like Trailer tests
and theatre tests for measuring
Effectiveness of broadcast ads
Number of exposure increased

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5.Identifying target audience

Segmentation-target-positioning(STP)

Type of Segmentation Segmentation Criteria Target Segment

Geographic Region Domestic/International

Age 20-65
Demographics
Gender Both males and females

Income High

Occupation Professionals and Executives

Degree of Loyalty Both hard-core loyal and Switchers


Behavioural
Benefits Sought Reliability, sense of achievement , speed

Personality Determined and Ambitious

User Status Regular Users

Psychographic Social Class Upper Middle Class

Key Product features in the communication mix of BMW

Luxury segment
High Quality products
Excellent brand pull
Good service

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6.DESIGN COMMUNICATION

Message strategy Focus on social and ego satisfaction. Emphasize on


the quality and standard of BMW.

Creative Strategy
High level of digitalization of BMW Group
vehicles.
Informational appeals Advanced set of features and capabilities of the
latest cars
Focus on the brand credibiltity.
Excellent after service and premium range of
Transformational appeals products.
Association with movies and films to create social
impact.

7.SELECTING CHANNELS

CHANNEL ACTION ADVANTAGE


Use celebrity respected by the increasing the levels of credibility,
Celebrity endorsement target audience. enhancing the level of brand recall
enhancing the appeal of BMW.
80% of its customer conduct internet
E-Marketing(Internet) research before purchasing. Rich
Marketing information quickly, on-time
and low costs through e newsletter, e-
magazine, online broadcast, emails and
text messages.

Social Networks Use platforms for satisfied Deliver its advertisements to a large
customers to easily recommend number of people at an instant and easily
their products to others. draw them to its websites at a relatively
Use data to understand current low cost.
trend among consumers. Allow multimedia and interactive
communication with a large number of
consumers enabling to conduct viral,
communal and influenced marketing
campaigns

Newspaper Focus ads on business Flexibility, timeliness, good local market


newspapers and national coverage, high believability
newspapers only to target the
segment planned. Make ads more
visually appealing.

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Television Increase airing time by 35%. Appealing to senses, high reach , high
Collaborate with local favourite attention.
programmes for product
placement.
Magazines Showcase latest launch , Increase High demographic and geographic
content on the quality aspects. selectivity, creibility and prestige, long
life.
Radio Partnership with radio channels Mass use, Low cost, High demographic
in major cities and ad programs and geographical selectivity
on BMW history, fun facts and
latest updates. Daily updates for
current customers

8.MEDIA MIX

The evolution of World Wide Web has shifted the power online, from the static corporate content of
the past to dynamic interaction driven by the active participation of consumers. Thus BMW need to
harness the power of different forms of communication within media, being a mix of the traditional
television, radio and print together with todays web, social and digital approaches in order to
become players in todays very competitive marketing environment to attract the attention of their
ultimate consumer.

Below mentioned table gives an approximate percentage of usage of different media platforms by
BMW as per their impact to their potential customers.

PLATFORM MEDIA MIX CONTRIBUTION

Cinema 0.5%

Internet 30.6%

Magazine 6.9%

Newspaper 17%

Radio 13.8%

Television 30.2%

others 1%

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9.BUDGET

The automobile, motorcycle and engine manufacturer invested 349.6 million U.S. dollars in
advertising in the United States in 2016. BMW belongs to the largest advertisers among car
manufacturers in the United States and worldwide. In 2016, the company generated 94.16 billion
euros in sales revenue.

Munich based luxury car maker BMW Group India posted a strong double digit growth in 2016 after
two years of decline, and has carried the momentum into this year by logging 8% growth till May,
thus holding on to the tag of being the fastest growing luxury car brand.

Thus keeping the growth in mind the communication mix budget should also be increased and more
focus should be placed on E-marketing and celebrity endorsement.

India is also the highest producer of cinema and thus a large audience can be captured by proper
product placement in the upcoming movies. Strategic partnership with different production houses
and films to increase product visibility.

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References

http://economictimes.indiatimes.com/articleshow/59209060.cms?utm_source=contentofinter
est&utm_medium=text&utm_campaign=cppst

http://wardsauto.com/ideaxchange/audi-takes-advertising-lead-bmw-escalating-luxury-brand-battle

https://www.consumerreports.org/media-room/press-
releases/2017/02/audi_leads_pack_of_luxury_brands_in_consumer_reports_2017_annual_brand_r
eport_card/

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