2. SITUATION ANALYSIS:
CURRENT MARKET POSITION:
• BMW has achieved market leader position in the luxury car segment for 2 nd
consecutive year.
• 43% of market share in luxury car segment.
• 73% growth over 2009.
• Sales of 6426 units in 2010. Archrival Mercedes Benz sold 5819 units.
• Presently employs 400 people.
• Present in 20 locations across India.

3. Launch Date: 23rd December 2010 Price: 22 Lakhs-32.5 Lakhs
Models:
X1 sDrive 1.8i
X1 sDrive 2.0d
X1 sDrive 2.0d Exclusive
JOY IS WHAT YOU MAKE OF IT

4. SITUATION ANALYSIS:
COMPETITOR STUDY:
SUV Engine Power Price (in Lakhs)
BMW X1 (Petrol) 1.8 P 147.5 22
BMW X1 (Diesel) 2.0 D 174 23-32.5
Skoda Yeti 2.0 D 140 17
Ford Endeavour 3.0 D 153 19-20
Chevrolet Captiva 2.0 D 150 19
Toyota Fortuner 3.0 D 170 21
Hyundia Santa fe 2.2 D 197 21
Mitsubishi Outlander 2.4 P 168 22
Nissan X-trail 2.0 D 149 23
Honda CRV 2.4 P 151 24

5. SITUATION ANALYSIS:
SWOT ANALYSIS:
• Strengths: Brand Image; Quality; Captive finance solution; X1-
relatively affordable BMW; First crossover SUV.
• Weaknesses: Dealer network; Service warranty.
• Opportunities: Increase in millionaires; Cashing on diesel variants.
• Threats: Competitors- Mercedes, Audi, VW, Toyota, Honda, etc.

6. OBJECTIVES:
• To achieve 10% market share in SUV segment by end of 2011.
• Make X1 customer’s desired car.
• Try to align production with rising market demand.
• Increase dealer network.
• Easier access to test drives.
• Better showcase.

7. STRATEGIES:
• In all promotional activities, present clear, consistent image of quality & service
to target market. Target- high income, young male/female drivers. Add-
medium high income families.
• Expand the market beyond the current locations by inviting more dealerships.
Prioritize urban markets, followed by semi urban.
• Training programs for sales representatives designed to encourage loyalty
and enhance service image of BMW.
• Faster response to test-drive request & decrease in waiting period for delivery.

8. IMPLEMENTATION OF STRATEGIES:
• BMW’s ‘Story of Joy’ Campaign.
• Apps are already available on Apple’s App Store & Google’s Android Market.
• Promotion through games, movies, event sponsoring. Ex- Audi.
• Continuation of Internet marketing.
• TV adverts on key news & business channels.
• Frequent ads in newspapers & magazines; hoardings at key areas.
• Promotional activities at malls.

9. BUDGET:
• Cost of placing hoardings at key areas in metro cities cost anywhere between 1.5
Lakhs-4 Lakhs/month. Printing cost: 30000-50000 per hoarding.
• If 60 hoardings in 20 existing BMW’s market cities are considered, maximum cost
for 4 months would be approximately 96 lakhs.
• 30 seconds of ad on TV costs anywhere between 10.5 lakhs/ad – 32 lakhs/ad;
depending on the channel, frequency, slots & length of the advert. Most of the
channels also provide packages and product relevant TV show & movie telecast
sponsorship packages. Estimated cost for a package for 2 months at business
channels like CNBC would be 12-13 crores.

10. BUDGET:
Medium Quantity & duration Cost
(approx./estimated)
Hoardings 60 in existing 20 96 lakhs
locations, for 4 months.
TV adverts 2 months package 12 crores
Ad making 2-3 9 crores
Newspaper Ads 5 ads/month for 3 12 lakh
months
Internet Marketing 50 top visited websites 20 lakhs (can fluctuate
through google ads. as cost is calculated on
pay-per-click basis)
Malls 20 malls at 20 locations, 40 lakhs
twice a month for 2
months.
Total 226800000