BMW X1- Marketing Plan

SITUATION ANALYSIS:

• BMW has achieved market leader position in the luxury car segment for 2nd 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.

CURRENT MARKET POSITION:

ABOUT THE PRODUCT:Launch Date: 23rd December 2010

Models: X1 sDrive 1.8i X1 sDrive 2.0d X1 sDrive 2.0d Exclusive

Price: 22 Lakhs-32.5 Lakhs

JOY IS WHAT YOU MAKE OF IT

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

SITUATION ANALYSIS:COMPETITOR STUDY:

• 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.

SITUATION ANALYSIS:SWOT ANALYSIS:

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.

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 loyaltyand enhance service image of BMW.

• Faster response to test-drive request & decrease in waiting period for delivery.

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.

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.

BUDGET:Medium Quantity & duration Cost

(approx./estimated)

Hoardings 60 in existing 20 locations, for 4 months.

96 lakhs

TV adverts 2 months package 12 crores

Ad making 2-3 9 crores

Newspaper Ads 5 ads/month for 3 months

12 lakh

Internet Marketing 50 top visited websites through google ads.

20 lakhs (can fluctuate as cost is calculated on pay-per-click basis)

Malls 20 malls at 20 locations, twice a month for 2 months.

40 lakhs

Total 226800000