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Sujin Rye, Junyoung Eum , Daniel Bae , Rosa Hernandez. Current CEO: Norbert Reithofer (2006~) 28 plants through 13 countries 2012 Revenue : €60,477 millions 2013 Revenue : €68,812 millions Employees : 109,871 . Executive Summary. BMW (Bavarian Motor Works), founded in 1916
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Current CEO: Norbert Reithofer (2006~) • 28 plants through 13 countries • 2012 Revenue : €60,477 millions • 2013 Revenue : €68,812 millions • Employees : 109,871 Executive Summary
BMW (Bavarian Motor Works), founded in 1916 • Originally 3 aircraft engine manufactures • Product first vehicle in 1929 • By the 1980s, established itself in the luxury/ performance segment of the global automotive market • Subordinated companies (Mini, Rolls Royce) • Fun fact Background & Heritage
https://www.youtube.com/watch?v=plxNfU-PA2c https://www.youtube.com/watch?v=VmyuA_Zp0CU Stimulating Market Performance for BMW ad
Brand based comparative method: it is a method tries to examine consumer’s response to identical marketing response to different brand in the same product category Comparative Method
Marketing based comparative method : tries to understand consumer response under different marketing promotions Warranty changed • California emission control warranty • 7yrs 70,000 miles to 15yrs 150,000miles Comparative Method
Survey-based multivariate technique that enables • marketers to profile the consumer decision process • with respect to products and brands • The case held in 1999 regarding 3series Conjoint Analysis
In 1999, the 3rd generation 3-series designed as • compact car; offered minimal passenger comfort • Received complained regarding 3-series cramped rear • seat and other interior for purchasing $40,000 for • compact (plastic interior heavily criticized) • Faced new competition from other luxurious brand Case Study - Objective
Using the conjoint analysis and figuring out most • important factors in purchasing behavior for a new vehicle • Two most important factor for producing the safest and best • driving machine • • Product components and product qualities • Benchmarking competitors’ product • • Analyzing their noise control and comforts • A goal for new 3 series is to be one of the quietest, safest, • comforts in its class Case Study - Solutions
Interbrand is an American global branding consultancy, specializing in vast brand services including brand strategy, brand analytics, brand valuation. 6. Interbrand’s Brand Valuation
Demographic : men and women aged 30-50 years old Behavioral : These people have successful image Segmentation Geographic : Main markets are Europe and North America
BMW’s economic profit : net value added minus government/public sector Economic profit : 2012 : €15,678 million 2013 : €16,121 million Financial Analysis
Role of brand : measures the part of the purchase decision that is attributable to the brand. Demand Analysis Role of Brand Index : quantifies this as a percentage
Brand reputation Quality products Environment-friendly vehicles Competitive Analysis
Topped US luxury auto sales in 2012 Increased car sales 40 percent in the Chinese market Sustainability and urban mobility • i3 and i8 models • Chargepoint mobile app BMW Brand Value
Largest markets for electric vehicle sales • US, China & Europe London showroom for i series of electric and hybrid vehicles BMW Brand Value
What would be the next step? • targeting lower class automotive manufactures? • targeting high class automotive manufactures? Recommendation
"Mission Statement of BMW." BMW Mission Statement 2013. N.p., n.d. Web. 06 Apr. 2014."Measuring Outcomes of Brand Equity." Measuring Outcomes of Brand Equity. N.p., n.d. Web. 06 Apr. 2014. Service and Warranty Information 2013. WOODCLIFF LAKE: BMW North America, LLC, June 20012. PDF. Service and Warranty Information 2010. WOODCLIFF LAKE: BMW North America, LLC, Aug. 2009. PDF. “2013 Car Brand Perception Survey.” ConsumerReports.org Official Site. ConsumerReports, Feb. 2013. Web. 1 Apr. 2014 “Best Global Brands 2013.” Interbrand Official Site. Interbrand. n.d. Web. 1 Apr. 2014 Resources
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