FIVE-YEAR MARKETING PLAN

BMW Car Club of America

Beth FoleyChris BrownMike Jacobs

Andrew SauerTom Hoffman

Table of Contents

1. Executive Summary 22. Company Description 33. Strategic Focus and Plan 4

a. Visionb. Goals

4. Situational Analysis 5a. Researchb. SWOT analysisc. Competitor analysisd. Customer analysise. Geographic analysis

5. Marketing / Sales Focus 10a. Identify sales cycleb. Marketing mix strategyc. Product Descriptiond. Pricing Strategye. Placement / Distribution

6. Promotional Plan 14a. Creative Strategyb. Direct marketing / Database marketing

7. Implementation 178. Budget 18

9. Evaluation & Control 1910. Bibliography 20

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Executive Summary

BMW Car Club of America is an enthusiast group focused on enhancing the

BMW experience for their members by providing services, support, information, and

activities that promote camaraderie and encourage social awareness and responsibility.

Through an in-depth analysis of BMW Car Club of America’s strategic focus and

ambitions for growth, we created a comprehensive marketing plan, including the steps

needed to carry out the proposed goals over the next five years.

Through SWOT, industry, competitor and customer analysis, we took a detailed

look at the BMW Car Club of America’s strengths and weaknesses and the trends of the

industry in which the car club is competing. This analysis led to covering the specifics of

the younger demographic and how our plan will gain and retain this target group. Here

we discussed market and service objectives, target markets, points of difference, along

with positioning.

After gaining a better understanding of BMW Car Club of America’s current

positioning and the direction in which they wish to proceed, we have formulated a

marketing plan that can be easily implemented by the club on both the local and national

level in order to achieve maximum future growth.

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Company Description

The year was 1969. There were soldiers in Vietnam; hippies at Woodstock; and in

Boston, a few car nuts were wandering the streets, snapping leaflets to the windshields of

a curious new German import – the BMW 2002. They were recruiting members for a new

car club dedicated to the object of their desire. In time, veterans, hippies, and other

driving purists from all over the spectrum would find common ground in what has

become the world’s largest owner-supported car club – the BMW Car Club of America.

Today, BMW CCA has 65 chapters nationwide, with more than 75,000 members,

mutually enhancing each other’s BMW ownership experience.

It doesn’t matter what model you drive. Whether you’re on your first BMW, or

your thirtieth, there are just certain subjects that only BMW owners are interested in and

BMW CCA addresses all of them.

Their official mission is: to enhance the BMW experience for their members by

providing services, support, information, and activities that promote camaraderie and

encourage social awareness and responsibility. Unofficially, they are a big support group

for Ultimate Driving Machine addiction.

BMW CCA enjoys a strong yet independent relationship with BMW AG and its

BMW of North America subsidiary. They are a not-for-profit corporation governed by a

nine-member elected board of directors -- four national officers and five regional vice-

presidents who serve the interests of the chapters. Each chapter is an independent

corporation chartered by BMW CCA with headquarters located in Greenville, SC.

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Strategic Focus and Plan

Mission/Vision

This section covers the Club’s goals and aspirations for growth, which have

guided the marketing plan we have developed. The prominent goal for BMW CCA is to

create an awareness of the organization among the college-aged future leaders of

America who will own a BMW one day. It is vital to the future of the Club that they

continue to find innovative ways to appeal to the college-aged consumer in order to draw

these potential future owners into the organization and keep them there.

Goals

The marketing plan we have developed for BMW CCA is projected over a five-

year period. With this time period, the Club can focus on all college students, from

current graduate students all the way down to current freshman undergraduates.

1. Utilize the Top 75 schools according to US News & World Report

rankings.

BMW CCA Ultimate College Campus Tour

Campus Representative Program

2. To develop and sustain a relationship with BMW North America

Corporate, and eventually BMW AG.

Dealership contracts

Corporate relationship

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3. To increase communication avenues internally and externally.

Situational Analysis

This situation analysis starts with a snapshot of the current environment in which

the BMW CCA finds itself by providing a brief SWOT (strengths, weaknesses,

opportunities, threats) analysis. After this overview, the analysis probes ever-finer levels

of detail: industry, competitors, and customers.

SWOT Analysis

BMW CCA has many strong points that have made it the company it is today.

Roundel Magazine is the official publication of the BMW CCA, and is available both

online and in paper form. There are 65 chapters nationwide, with a total of 76,000

members, which is incredibly impressive. The Club members possess a strong sense of

brand loyalty and are unwavering in their dedication to BMW and the Car Club. And the

BMW CCA is recognized as a national organization, and thus is able to host national

events. With the marketing plan that we have developed, we hope to capitalize on the

aforementioned strengths and implement new and innovative marketing techniques.

Although Roundel Magazine is a positive asset, the Club has over relied on it to

fully represent the organization. The majority of the 65 chapters act independently

without any direct contact with the National organization. Another weakness of the Car

Club is the lack of a concerted training program for chapter leaders. Although these

weaknesses have not had detrimental effects on the organization, there is definitely room

for improvement and increased efficiency.

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There are many opportunities for improvement available within the Car Club. It

already possesses the structure and finances needed to overcome its weaknesses. And

there is currently a detailed strategic plan and vision for the organization.

The BMW CCA faces the dangerous threat of complacency; however, with the

marketing plan that we have developed, it will be difficult to remain content with the

current state of the Car Club. There is also an “old guard v. new guard” mentality that

needs to be overcome in order to appeal to the college-aged consumer. There have been

issues with BMW enthusiasts forming their own groups, both physical and through online

forums. It is vital that these outside groups make their way under the BMW CCA

umbrella.

Competitor Analysis

BMW CCA faces competition from other car clubs, primarily Audi, Porsche, and

Mercedes-Benz. After engaging in some secondary research, we have uncovered the

following information regarding the competition:

Audi Car Club of AmericaNumber of Members: 10,000Dues: $44 (1 year) - $750 (Lifetime)Membership Benefits:

Audi Club Driver Safety Schools nationwide Care, maintenance and technical tips from Audi experts

Information on new products Sources for enhancement products Parts discounts for club members Access to a range of advertisers Keeping in touch with members across the country Special promotional giveaways from sponsors Camaraderie shared by fellow enthusiasts

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Porsche Car Club of AmericaNumber of Members: 97,000Dues: $42 (1 year), $82 (2 years), $120 (3 years)Membership Benefits:

Local Regions with local newsletters and events. (Some regions have additional fees and requirements).

Vast technical publications — Up-Fixin der Porsche (Vol. 1-11 — reprints of all technical articles ever appearing in Porsche Panorama, organized by year of original publication, fully indexed).

Tech Committee available to answer your questions. Specialists for all models plus exteriors/interiors and historic racecars.

Valuation committee to help you establish the value of your Porsche for insurance purposes.

Access to specialized insurance for Porsches that are second autos/pleasure only/limited use. Translates to money saved on premiums. (Leland-West Insurance — must be a PCA member.)

PCA Club Racing Program — nationwide; modeled on vintage racing rules. Annual national convention (Porsche Parade) gathers in a different location each

year. Over 600 Porsches and 1500 folks gather for a week of noting but Porsche.

Mercedes-Benz Club of AmericaNumber of Members: 29, 894Dues: $45 (1 year), $87 (2 years), $127 (3 years)Membership Benefits:

You will gain access to useful information that will help you to preserve the appearance, performance, and value of your Mercedes-Benz automobile.

You will receive six big issues of The Star Magazine You will be able to participate in dozens of local section activities and events You will receive a local section newsletter several times per year You will be able to attend National Events and conventions You will be able to advertise free in the classifieds section of The Star Magazine You will have access to a technical hotline You will have access to the Club Store You will be able to get technical and vintage reprints of information printed in

The Star Magazine You will keep up to date on new developments and products which are often

previewed to club members

This information about the competitors is vital in developing a strategic marketing

plan that will give BMW CCA the competitive advantage.

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In addition to the aforementioned competitive clubs, BMW CCA also faces

competition from online BMW forums, namely Bimmerfest and Bimmerforum.

Bimmerfest is portrayed on the their website as the #1 online community for BMW

related information. The website includes discussion boards and topics for more than

100,000 current, new, and past BMW owners. The forums are divided by car model and

into other special interest sections. There is also a special forum for visitors and patrons

to voice their questions to the connected BMW dealers on the site. Bimmerforum is a

website dedicated to owners and enthusiasts of BMW automobiles. It offers informational

bulletins and also message boards where thousands of members discuss BMW related

topics. It would be extremely beneficial for BMW CCA to merge with online forums

such as Bimmerfest and Bimmerforum to create one powerful entity for BMW

enthusiasts nationwide.

Current and Potential Member Analysis

The primary target market consists of every BMW owner in the USA and Puerto

Rico. Currently, the Club does well with the middle-aged and older demographic, but

would like to improve penetration. The Club’s main challenge today is to penetrate the

18-35 year-old market, with an additional emphasis on recruiting female members.

The traditional BMW market consists of the following demographics: upper to

middle class, educated, predominately male, 35-60 years of age, Caucasian, holds a job

making close to or more than $90,000 per year, and religious. As for psychographics, we

believe that the current membership and our younger target market are physically active

or at least were at one point, social, young-minded, energetic, have class, are/were leaders

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in organizations, like to take charge, like to be a part of something, have a competitive

mindset, listen to rock music, and are charitable.

Marketing / Sales Focus

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Identify Sales Cycle

The BMW Car Club of America’s objective – gaining and retaining the younger

demographic for their club – is a very attainable goal.  The primary time to sell this

organization to the specified demographic is during the major graduation months of May

and December.  During these months, many graduates will have job offers and

consequently, an income that will allow them to afford a BMW, giving them the ability to

join the BMW Car Club of America.

Marketing Mix Strategy

Our marketing plan will utilize a multitude of marketing techniques.  We plan on

targeting the Top 75 schools ranked by U.S. News & World Report since the students at

these schools will possess the greatest potential for BMW CCA members.  Using this

target market, we plan on implementing a few different avenues of advertising and

promotion to increase the awareness of the Club.

First, we would like to put into action an experiential marketing tour.  Such a tour

would provide a hands-on experience that would allow consumers to maximize their

learning experience and leave a lasting impression. The general idea is that a consumer

and potential Club member would be more inclined to join the organization after seeing

the service that the club could offer him or her in person.  Logistics would include two to

four BMW’s, a promotional tent or banner, BMW Car Club of America members, and

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promotional materials.  The most financially intriguing avenue would be to ‘outsource’

this promotional show to local chapters as opposed to a national event marketing /

experiential marketing firm.  To save costs, the Car Club could buy a single banner or

tent and the necessary promotional materials and send them to each chapter on a cycling

circuit.  Local members could provide the labor, the cars, and the general knowledge of

the Club.  This personal connection with the Club and its promotion would emanate a

sense of pride and honor of current members, and consequently share this pride with the

potential members.  This form of lead generation among potential consumers will

generate interest, a database of potential members, and also a word of mouth network that

will promote

From these potential customers, the BMW agents present can select people that

are interested in promoting the Car Club on their specific college campus. These campus

representatives can continue advertising and promoting after the show has gone onto the

next campus and can continue to recruit members.  Compensation for these campus

representatives could include cash, membership incentives, or potential fractional

ownership. We would look to the already developed and successful Campus

Representative programs of Apple, Student City, Red Bull, etc. to provide a basic

framework for the BMW CCA program.

Fractional ownership, mentioned above, would be another strategy to entice the

younger demographic to join the Club. Many young graduates, while financially secure,

do not yet have a disposable income.  For this reason, a fractional ownership system

would be ideal.  A member could buy a fraction of a BMW, much like the idea of a time-

share, for a much cheaper price tag. The member would receive all the benefits of full

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ownership, including driving time, social privileges, and a hand on the ultimate driving

machine.  The BMW CCA could either start this program internally, or could partner

with companies already dedicated to this very idea of fractional ownership.

Another marketing technique that would attract potential members is an

interactive recommendation and certification forum / database.  The idea is that members

would have the ability to contribute to and access a database of BMW information.  This

information would include places to list and/or purchase used cars; recommendations of

places to buy parts; lists of auto shops and body shops; places to buy accessories, tires,

etc.  On the national level, the BMW CCA could offer suggestions and a template for

regional and local levels.  These local chapters could then build up their database based

on their members’ recommendations and personal networks.  It can be considered as a

hybrid between the Better Business Bureau and online forums.

Product Description

            The BMW CCA is not a tangible product, but rather a service with a multitude of

benefits.  These benefits include a network of fellow BMW fanatics, training sessions on

how to drive, how to repair your car, and how to improve your BMW, among other

things.  Local, regional, and even national car shows and seminars are also added benefits

of membership.

Pricing Strategy

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            As an incentive to bring the younger demographic into the Club, we have thought

of a few different ways to price the membership to make it more appealing. Potential

members that have recently graduated or still under a certain age would be offered a

cheaper rate per year than the older members.  Also, another idea would be that new

members could pay a lifetime fee, rather than a yearly fee.  Though more expensive in the

short run, this option offers potential members a sense of belonging, a foundation to build

a long-lasting relationship, and peace of mind knowing that they will never again have to

pay membership fees.

Placement / Distribution

This marketing strategy must first be accepted and started by the national

headquarters.  With this in place, it is guaranteed that uniformity and consistency will

prevail within the regional and local chapters nationwide.  Implementing the ideas listed

above will increase membership across the country and build the BMW CCA’s brand

equity, especially among BMW owners.

Promotional Plan

Creative Strategy

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Our creative strategy focuses on five key components. Each one of the ideas will

benefit the BMW Car Club of America by either improving awareness of the club or

enhancing the Clubs’ current offerings. We intend to improve awareness of the BMW

CCA by utilizing resources around the country to focus attention on the next generation

of BMW owners. We additionally hope to retain and grow the current membership by

improving the current offerings of the Club.

We first intend to create a presence on the campuses of the top 75 schools as

recognized by U.S. News & World Report. We feel that these 75 schools will produce the

graduates that are most likely to be future BMW owners. By creating awareness on these

campuses, through different initiatives, the Club can draw the attention of future

members now.

In order to capture the attention of students on these campuses, the Club should

host a car show on each of these campuses. By having a larger event in a central location,

the Car Club has the potential to draw a large number of students. Through the use of the

car show, the Club could utilize an experiential marketing plan. By doing this, it would

give potential new members the chance to see numerous BMWs on display, sit inside of

them, and learn about them. The focus of the program should be to get people not only

excited about BMW and the idea of owning one, but also to demonstrate how being a part

of a car club improves the experience of owning a BMW.

Following the car shows we think it would benefit the club to continue to improve

your presence on each of the designated campuses. The club could do this by having a

campus representative program. This program would utilize its members by having them

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go to these campuses. The responsibilities of the campus representatives would be to

hand out promotional materials and also to discuss the benefits of car club membership.

We also hope to increase membership by making contracts with BMW North

America as well as with local BMW dealerships. These strategic partnerships would add

value to the Club and to BMW Corporate as well. By improving awareness of the Club, it

would add a new dimension to the offerings that come with the purchase of a BMW.

Many car buyers look for an experience to associate with their purchase, and by making

potential buyers aware of the presence of the Club, sales would potentially improve.

Secondly, we would like to focus on retention of current members. Research of

other car clubs revealed some areas that The BMW Car Club of America could improve.

Other car clubs have created systems to improve their members experience with their car

itself. The BMW Car Club could improve its member satisfaction by creating a system to

advise members in areas of importance. The Club could create a system to certify parts

dealers, body shops, and auto shops in each geographic region, which would be very

useful to members.

The final way that we believe the club could increase its membership is to create a

fractional ownership program. Fractional ownership is the idea that someone who may

not be able to afford a particular item can purchase a fraction of it for use periodically

over the course of a year. Currently, there are many companies in the United States who

have found this type of business plan to be lucrative in the automotive market. Through

this type of venture the Club could not only find a new way to cover its operating

expenses, but also increase membership.

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Database Marketing

The BMW Car Club of America is currently struggling with membership

retention and attracting new members. By speaking with the president of the Ohio

Buckeye chapter, we learned that reaching members is very difficult because they are

only provided mailing addresses for members. We also learned that many members view

the Club as being exclusive and impersonal. By creating a database with member contact

information, it would be far easier to keep in contact with members and notify them of

upcoming opportunities and events. Regular and consistent contact with the members will

also remove the stigma of exclusivity from the club.

Implementation

The primary goal of the BMW CCA five year plan is to increase not only the

current number of members throughout the United States, but to also increase the

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potential of new membership in the college age demographic with a strong focus and

emphasis on women. To achieve this we believe there need to be changes to the way

BMW CCA promotes the experience that it provides to their members.

One of the strongest ways to achieve this goal is through the implementation of

the traveling BMW CCA tour show. As discussed above, through advertising and

promoting on the top 75 college campuses, the tour will be able to reach out to new

consumers in the college market. The goal is to simulate the experience of being a BMW

CCA member to the younger demographic. And, over the next five years, we believe that

having one show a year at each of the 75 schools is very achievable. Additionally, by

providing campus representatives at each of the 75 schools, there will be a continual and

strong presence for promoting the car club.

In addition, we feel that there is potential to create strong and lasting relationships

between the BMW CCA and BMW dealerships across the nation. By combining efforts,

these two organizations will be able to mutually benefit from one another due to the

alignment of their goals and objectives. By promoting at BMW dealerships, BMW CCA

will undoubtedly be reaching a current target of theirs, while also attracting potential new

members who do not currently know about the organization.

Budget

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The budget for the marketing plan and strategies, assuming implementation, will

be very flexible and adjustable from chapter to chapter. Due to the fact that the chapters

across the nation are so different and diverse as far as how many members are involved,

how active the chapter is, and what the primary goals are, we believe that budgets will be

based primarily on an individual chapter basis.

With all of the changes that we have proposed for BMW CCA, the product

remains the same. The product is still the experience that the enthusiasts will be receiving

by paying a monthly or yearly membership fee. Again, we feel that this fee should be

very individualized for each chapter (in addition to the fee that members must pay to

national headquarters).

The budget for our promotional strategies will follow the framework laid out

above. There will be costs associated with travel and getting the cars and promotional

materials to the campuses; however, we feel these costs will be minimal (gas, food,

lodging) and will be easily refundable either through national headquarters or through the

local chapter.

Evaluation and Control

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By setting yearly benchmarks pertaining to the number of new members joining

from the specified demographics, BMW Car Club of America will be able to set and

track quantifiable goals. As time progresses and the effects of these new marketing

tactics are witnessed first-hand, our leadership is prepared to adapt and make

modifications when deemed appropriate.

We will be able to track our progress continually via the online registration

procedures that all new members must complete. The spectrum of profiles registered

through our website will allow for tracking of the changing demographics that make up

BMW CCA’s member population. This data will be available as a summary of the

national population as well as at a chapter-by-chapter level.

In addition to identifying the changing population trends, we will be able to easily

measure the effectiveness of our new marketing techniques. When new members

register, they will be presented with the following prompt: “How did you hear about

BMW CCA?” Answers to this will aid in identifying the most productive methods of

recruiting members of the selected demographic.

Using the developed plan, we plan on observing an overall membership increase

of 5% by 2011. Ideally, this increase would be comprised of at least 40% female

members and 20% college students and/or recent college graduates. If we do not see this

increase and are unable to appeal to the targeted population with the developed methods,

we will adjust accordingly using the data obtained through online registrations as a guide

for future efforts.

Bibliography

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Audi Club North America - Home. 12 Feb. 2009 <http://www.audiclubna.org/>.

Bimmerfest: BMW Forum, BMW Research, BMW European Delivery, 335, M3. 12 Feb. 2009 <http://www.bimmerfest.com/>.

Bimmerforums.com - The Ultimate BMW Forum. 12 Feb. 2009 <http://www.bimmerforums.com/>.

BMW CCA. 12 Feb. 2009 <http://www.bmwcca.org/>.

Mercedes-Benz Club of America. 12 Feb. 2009 <http://www.mbca.org/>.

Saylor, George. "BMW CCA Buckeye Chapter President." Telephone interview. 30 Jan. 2009.

The Porsche Club of America. 12 Feb. 2009 <http://www.pca.org/>.

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