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Presented By:

Amit Dugar
Arpita Jaitly
Gaurav Tandon
Harsha
Neelam Banwari
Neha Nandini
Rishabh Wadhwa
Targeting the “Creative Class”
1. History “Ultimate Driving Machine”

2. Targeting the “Creative class”

3.The “Company of Ideas”

4. Company behind the “Ultimate Driving Machine”

5. Everything to Everyone: Analysis


• BAYRISCHE FLUGZUEG WERKE
•Started in 1913 at Munich, Germany
• First Production Contract of Aircraft
engines in 1916
• Rechristened BMW in 1918 by
Franz Josef Popp
• Manufactured the TYPE IIIa aircraft engine
in 1918.
• 1923 Manufacturing of R32, the first bike
started
• Car manufacturing started in late
1920s at Eisenach, Germany
• Dixi, BMW 3/15, 327 Saloon
• 328 Roadster nominated ‘car of the century’.
• World war 2 – plants destroyed
• Re established car manufacturing in 1952
• Launched BMW 700, BMW 1500 – gained
reputation as manufacturer of sports sedans.
• Moved to the new office headquarters in 1971
and started targeting export markets.
• Outsold Mercedes fn Europe for the first time
• 1994
• Acquired British car maker MG Rover.
• Kept the Mini and Triumph brands.
• Offloaded the rest to Ford and Phoenix.
• Lost to Volkswagen in the race to acquire Rolls
Royce
21
21sstt Century
Century

• Acquired the license for Rolls Royce in 2003 and


launched Rolls Royce Phantom.
• Came out with the 6-series in 2003
• Came out with the entry level 1-series and
6-series in 2004
• The new design 7-series launched with the
radical design by Chris Bangle.
• In 2005, North America provided 24.15 % of
BMWs total revenues.
Chris Bangle: The Change Agent

Top Car Designers

BMW 7 Series, 2002


Designer: Chris Bangle
Whether they love it or hate it, reviewers agree the BMW
7 Series was a bold, ambitious move on the part of
designer Chris Bangle. Previously known for
conservative styling, the 7 Series is bigger, taller, and
has a wider wheel base than previous models. The
biggest controversy has been over the back end, which
is higher and more sculptural.

Bangle shrugs the controversy off, saying other


designers are starting to imitate the look. "If you can't
stand the heat, get out of the kitchen," he says of the
job.
 “BANGLED” or “BANGALIZED”.

 This term was coined for BMW’s new advertisement campaign.

 The new advertisement was more innovation specific.

 Designing given preference over performance.

 “ Undifferentiated Strategy” – equivalent to “everything for


everyone”.
 Shift from “Yuppies” to the “Creative Class”

 Reasons
• 75% people in US do not have BMW on their purchase list.
• Market share of BMW in US was less than 2%.
• Company had target sales of 1.6 million units by 2010.

 Advertisement campaign handled by GSD&M.

 Inter-market Segmentation.
Revenue & Production Figures
Revenue

50000 46656
44335
There was a 5.25 % 40000 38463
42411 41525

30000
increase in revenue 20000 Revenue

during 2004 – 2005 10000

0
2001 2002 2003 2004 2005
(Revenues in million Euros) Year

Production Units

1400000
The combined production of 1200000
160037 174366
189492
200119

1000000 42395
800000
MINI and BMW increased 600000
904335 930221 944072 1059978
1122308 MINI
400000 BMW

by 5.83% in unit terms 200000


0
2001 2002 2003 2004 2005

during 2004 - 2005 Year


BMW and Audi Ad War
 Sales in US have increased by 62%.
 75% did not have BMW as their first choice.
 FALLON to GSD&M – “Company OF Ideas”.
 Expansion of customer base.
 Covered only 2% of the US sales market and had to increase its
market share.
 7 series Bangled Effect.
 Differentiated market strategy – “Creative Class”.
 Admired company who championed creativity.
 Break from the Yuppie impression.
 In spite of criticism the Advertisement campaign was a success.
 Losing its Soul?

 Differentiation

 Confusion among customers

 Change in perception

 Suggested Alternate Approach