Strategic Marketing Plan:BMW P-SERIES

Group Members:Edward-Jo BovyGustavo BezerraIvan MalenicaCornelia Bottke

Business overviewName: BMW Group: - BMW

- Mini- Rolls-Royce Motor Cars Limited

Operational Facts: > 140 countries- over 110,00 employees

Position: International premium automobile market

Customer Value: - High quality product and services- Unique design - Recognition of achievement- High standards of dynamics and technology

Vision/Mission/ObjectivesVision:Mission: until 2020 world’s leading provider of premium products and premium services for individual mobility.

Objectives: the development, manufacture and sale of engines and cars Striving for ecological and social sustainability taking full responsibility for products giving an unequivocal commitment to preserving resources

Target Market – SIGMA Milieus

„Marketing Egg“ of BMW

Strengths- Brand reputation- High quality product- Skilful workforce- RD -> Technology & Innovation- Strong Corporate Social Responsibility “Green” vehicles

WeaknessesHigh production costHigh cost structureWeak brand and car portfolioFirst Pick-Up

Opportunities- Positive attitude towards “green” car- Increase the brand portfolio- Changes in consumer need

Threats- Strong competition- Rising of raw materials prices- The euro exchange rate is growing

SWOT

Array of ProductsProduct Description Starting price Anticipated demand

worldwide

Series P1Small Pick-Up (Size comparable to X1)

$36,959.00 5130 units

Series P 3Medium Pick-Up(Size comparable to X3)

$46,046.00 2700 units

Series P 5Big Pick-Up(Size comparable to X5)

$63,628.00 4400 units

Series P 6Big Coupe Pick-Up (Size comparable to X6)

$71,279.00 1200 units

Growth potential: 253% Growth over the 5 coming years

The market situation• Unique selling position

– Representation of status and achivement– Effective design and features– Competitive post-sales service

• Loyal customers

The market situation• Competitors:

– Audi (well known brand, status symbol)– Mercedes-Benz (leader in innovation, safety patents)– Lexus (reliability and durability)– Acura (quickly built reputation, impresive

performance)

Marketing strategy• Search engine marketing

– Promote brand, ads that link to the BMW website appear on top when specific keywords are typed

• Online public relations– Press release, third party media coverage, extension to social networks

• Online TV– Promotion of core brand values, technology, performance, quality,

interaction among viewers• Online games

– Appeal to the players, enhance awareness, influence players

Advertising and promotional strategy• BMW website

– Easily reach customers worldwide with rich information• E-mail and mobile messaging

– Growing popularity of devices connected to the internet. Promotion, customer retention, obtaining further data that helps learning customer behavior

• Online magazines and newsletters– Engaging reading experience through interactive features with more

information, pictures, and videos. Easier than printing and physical delivery• Social networks

– Potential of reaching a great number of people at a relatively low cost. Multimedia and interactive communication with a large number of consumers

Sales and distribution channels• Car dealers 80%

– Cars are easily available. Salespersons provide personal customer contact

expand car sales without investing capital. – competitive rates for car dealers

• Online purchase 20%– Using the Internet - no need of physical presence – customization of the car via the virtual showroom and

later pay and obtain the car

The InvestmentInitial Investment ($Million)

Marketing $2,953

R&D $5,232

Cost of Material $62,238.46

Personnel Costs $16,015.20

Structure cost $10,676.80

Total $86,439.15

Total Investment 100% $86,439.15

BMW Automotive Finance Co., Ltd45% $38,897.62

BMW Bank GmbH 35% $30,253.70

Own Capital 20% $17,287.83

PriceP-Series Models Store Price Invoice Price FOB Price

P1 $36,959.00 $28,430.00 $11,372.00

P3 $46,046.00 $35,420.00 $14,168.00

P5 $63,628.50 $48,945.00 $19,578.00

P6 $71,279.00 $54,830.00 $21,932.00

  P1 P3 P5 P6  

FOB $11,372.00 $14,168.00 $19,578.00 $21,932.00 100%

Production Cost $3,411.60 $4,250.40 $5,873.40 $6,579.60 30%

Marketing $1,705.80 $2,125.20 $2,936.70 $3,289.80 15%

Taxes $2,274.40 $2,833.60 $3,915.60 $4,386.40 20%

Investment $1,705.80 $2,125.20 $2,936.70 $3,289.80 15%Profit $2,274.40 $2,833.60 $3,915.60 $4,386.40 20%

Sales Expectations

2015-2019 Expected Sales ($Million)

Expected Sales (units)

Expected production Cost

($Million)

Expected Production

(Units)

Expected Profit ($Million)

Germany $179,208.00 22401 $147,641.46 24890 $31,566.54

UK $66,024.00 8253 $54,394.22 9170 $11,629.78

Rest of Europe $188,640.00 23580 $155,412.06 26200 $33,227.94

North America $207,504.00 25938 $170,953.26 28820 $36,550.74

Asia $245,232.00 30654 $202,035.68 34060 $43,196.32

Other Markets $56,592.00 7074 $46,623.62 7860 $9,968.38

Total $943,200.00 117900 $777,060.29 131000 $166,139.71