1 / 19

BMW Films ----Group 16

BMW Films ----Group 16. Songyan He. Emily Walker. Amanda Jones. Mengjia Wang. Elena Ratnikova. Company History. Founded in 1916 as an aircraft engine manufacturer Produced first automobile in 1929 Luxury/performance segment by 1980’s with three Series: 3, 5, 7. BMW in the US.

britannia
Télécharger la présentation

BMW Films ----Group 16

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. BMW Films ----Group 16 Songyan He Emily Walker Amanda Jones Mengjia Wang Elena Ratnikova

  2. Company History • Founded in 1916 as an aircraft engine manufacturer • Produced first automobile in 1929 • Luxury/performance segment by 1980’s with three Series: 3, 5, 7

  3. BMW in the US • Mid 1970’s: niche foreign car manufacturer • Late 1970’s: very popular luxury brand • Late 1980’s: luxury car market shift • BMW as the outdated brand • Competition: Acura (1986), Lexus & Nissan (1989) • 1992 BMW sales fall & very low customer satisfaction

  4. Invigoration & Recovery in the US • INVIGORATION: • 1. Introduced new models within core Series • 2. Aggressive pricing strategy • 3. Reorganization of the dealer network • 4. Introduction of several new Series • Modifications for North America’s market • RECOVERY: • 1996-2001: BMW recovered in the market • 2001: record level of sales: 2% US market share

  5. BMW 5 Short Films • About the film • $15 million • 25% of their media-spending budget, major competitors spent less than 50% on media advertising • To reach 40% increase in sale, increase share of mind • Only available online at BWMFilms.com • Problems • Wrong Segment • Too much budget on short films

  6. Luxury or Mass-market • In case study, BMW targeted sales as high as 300,000 cars and planed to reach new sales goals of an additional 40% in the US • Damage the luxury image of BMW • Various series and models or Reduce models to keep simple as Mercedes-Benz • Raise quantity or price

  7. BMW Current Customers >50 35 - 50 <35 Most profitable 7 Series 5 Series 3 Series

  8. Current Customer Visitor Profile VS • 10% under age of 30 • Average age: 46 • Median income: $143,000 • Gender: 63% male • 25% under age of 25, • 60% under age of 35 • Average age: 31 • Median income: $88,000 • Gender: 88% male

  9. Recommandation: Supplement the locations of Ads Why ? • To better targeting the middle-upper class • To targeting the current consumers How? • Advertising in The Wall Street Journal, BusinessWeek, and finance.yahoo.com • giving them benefits in their customer service plans to heighten retention rates

  10. Maintain BMW films Why ? • To attract the younger, urban and chic neighborhoods • To increase their share of mind and add to their future 3 Series consumer base How? • Release films less frequently (every 2 weeks now) • Produce films quarterly or less frequently

  11. BMW’s Current Image • Producing more cars than sustainable for a small luxury company • Turning point • Do not enter mass market, maintain luxury image • Rise in customer’s perceived value of BMW cars

  12. BMW: Luxury Brand ? • Luxury-something that is expensive and hard to obtain. • Cut down on the number of cars produced • P S1 S D Q

  13. McKinsey’s study

  14. Recommendation: Differentiation • Currently not much variety among 3, 5, and 7 Series Sedans 5 3 5 3 7 7

  15. Why Differentiate? • Better target customers • Avoid cannibalizing brand and entering mass market • Maintain luxury

  16. Differentiation • Break consumers into 3 segments • Segment 1: willing to pay low price = 3 Series • Segment 2: willing to pay moderate price = 5 Series • Segment 3: willing to pay high price = 7 Series • Use self-selection price discrimination

  17. Thank You!

More Related