BMW SWOT

1. MARKETING CASE STUDY
PRESENTATION
BY GROUP 3
BMW’S “COMPANY OF
IDEAS” Campaign:
Targeting the “Creative
Class”

2. CASE OVERVIEW
• THE ULTIMATE DRIVING MACHINE.
• GOING BEYOND “THE YUPPIES”.
• TARGETING THE “CREATIVE CLASS”.
• “THE COMPANY OF IDEAS” CAMPAIGN.

3. QUESTIONS
• CRITICALLY ANYLYSE BMW’S “COMPANY OF
IDEAS” CAMPAIGN. DO YOU THINK THAT THIS
CAMPAIGN WHICH TARGETED NEW CLASS OF
CUSTOMERS WAS NECESSARY, CONSIDERING
THE COMPANY’S GOOD PERFORMANCE IN
2005?
• DO YOU AGREE WITH THE CRITICS THAT BMW
WAS LOSING ITS SOUL? DISCUSS.

4. SEGMENT CHANGE
CREATIVE CLASSYUPPIES
•YOUNG URBAN
PROFESSIONALS
•UPPER MIDDLE ECONOMIC
CLASS
•UPWARDLY MOBILE
•AGE GROUP 20 TO 30’S
•SCIENTISTS
•ENGINEERS
•ARCHITECTS
•EDUCATORS
•WRITERS
•ARTISTS
•ENTERTAINERS

5. WHY SEGMENT CHANGE ?
• ONLY 2 % OF THE CURRENT SEGMENT
• 1.6 MILLION BY 2010
• RISE OF CREATIVE CLASS PEOPLE
• HUGE POTENTIAL FOR NEW MARKET
• HIGH COST OF MANUFACTURING
• NET PROFIT NOT INCREASING

6. INNOVATION & CREATION
• AD SHOWS LIEPZIG PLANT WHICH WON
ARCHITECTURE AWARD IN 2004
• FLAME SURFACING DESIGNS (BANGLE BUTT)
• ENVIRONMENT SENSITIVITY

7. AD CAMPAIGN
PRINT AD
NO
MATCH
AIRBAGS
RISKY
TV AD
OVERTHINKERS
EUPHEMISMS
BENEDICT ARNOLD
ENEMY OF IDEAS
“WE MAKE SURE GREAT IDEAS LIVE ON TO BECOME ULTIMATE
DRIVING MACHINES”

9. MARKETING STRATEGY COMPARISON
OLD
AGE
GROUP
INCOME
NEWAGE
GROUP
INCOME
LIFE STYLE
VALUES
PERSONA.
DEMOGRAPHIC
DEMOGRAPHIC +
PSYCHOGRAHIC +
GEOGRAPHIC

10. SWOT ANALYSIS
STRENGTHS
• LEADER IN LUXURY CAR
SEGMENT
• DYNAMISM IN GROUP
• AD CAMPAIGN
MATCHES WITH
COMPANY BASICS.
• STRONG MARKETING
CHAIN AVAILABLE IN US.
WEAKNESSES
• NET PROFIT AT THE END
OF 2005 WAS LOW FOR
BMW GROUP
• CONFUSION OVER AD
• ONLY IN HOUSE STUDY
DONE.
• HEAVY COST ON
PRODUCTION

11. SWOT ANALYSIS
OPPORTUNITIES
• MARKET CAPTURING
THROUGH EMERGING
CREATIVE CLASS
• REVENUE GROWTH
THROUGH NEW SEGMENT
THREATS
• LOSS OF OLD BRAND
IMAGE & CUSTOMER
• CRITISISM FROM EXPERTS
AS DEFENSIVE CAMPAIGN
• HIGH COST OF NEW AD
CAMPAIGN
• IMAGE DEPENDENT ON
NEW AD COMPANY

12. LEARNINGS
• NEED FOR SEGMENTATION
• CRITERIA FOR SEGMENTATION
• TARGETTING THE SEGMENT