CENTRAL UNIVERSITY OF ODISHA,

KORAPUT

Sub:- Marketing Management

Assignment on
BMW India its product categories & marketing strategies in
India

Submitted to:
Mr. Srinivas Rao K.
(Faculty of Business Management)
Submitted by:
Bhabani chopdar
Roll no: 19/06/DBM/17
2nd semester
2nd mid-term
Department of Business Management
BMW GROUP
BMW (Bayerische Motoren Werke) in English (Bavarian Motor Works)
Group is the leading car manufacturer and seller in the world. BMW Group
is a German company and manufacturers of automobiles and motorcycles.
BMW Group is the parent company of BMW MINI and Rolls Royce car brands.

BMW was founded by Karl Friedrich Rapp in 1913, under the name of BFW (Bayerische
Flugzeug-Werke). But due to difficulties of over expansion, Rapp left and the company was
owned by Franz Josef, an Austrian industrialist in 1917.

The headquarters of BMW Group is in Munich, Germany, the famous four cylinder building
which was developed in December 1971.

BMW Group employs more than 1 million employees in more than 40 countries. BMW Group
has worldwide subsidiaries and manufacturing plants in Germany, the UK, the USA, Egypt,
China, South Africa, Brazil, South Africa etc.

BMW India
BMW India started operations in January 2007. Wide range of its activities include a
manufacturing plant in Chennai, a parts warehouse in Mumbai, a training centre in Gurgaon
NCR and development of a dealer organization across major metropolitan centers of the
country.

BMW Group Plant Chennai

In 2007, BMW set up its first state manufacturing unit in Chennai . BMW Group Plant Chennai
locally produces 11 car models – BMW 3 Series, BMW 3 Series Gran Turismo, BMW 5 Series,
BMW 6 Series Gran Turismo, BMW 7 Series, BMW X1, BMW X3, BMW X4, BMW X5, BMW X7
and MINI Countryman.
BMW India product categories
Assembled Models

 BMW 3 Series
 BMW 5 Series
 BMW 7 Series
 BMW X1
 BMW X3
 BMW X4
 BMW X5
 BMW X6
 BMW Z4
 BMW X7
BMW Models Production

 BMW M3
 BMW M4
 BMW M5
 BMW 6 Series
 BMW M6
 BMW X5 M
 BMW X6 M
 BMW i8

MINI has successfully established itself as a premium small car brand in India since its launch in
January 2012. Presently, the MINI model range in India includes MINI 3-door, MINI John Cooper
Works Hatch, MINI 5-door, MINI Convertible, MINI Countryman and MINI Clubman. The MINI
Countryman is locally produced at BMW Group Plant Chennai. Till date, MINI has established 10
sales outlets in India. MINI has appointed Mr.Vigneswar Rajakumar as Chief Operations Officer
on Dec 2019.

 MINI Cooper
 MINI Cooper Convertible
 MINI Countryman
 MINI Clubman
 Countryman (2010-2016)
 BMW India

BMW 3 series
BMW 5 series BMW 7 series

BMW X7
BMW X3 BMW X5 BMW X5

MINI Cooper
MINI Cooper Convertible MINI Countryman

MINI Clubman
CURRENT BUSINESS STRATEGY OF BMW GROUP
The business strategy of BMW Group is based on having a powerful brand image. This strategy
forms the foundation of the success of the BMW Group. BMW Group believes in maintain core
values as technology, innovation, performance, quality, reliability, exclusivity and customer
satisfaction. The company slogans of BMW Group in English i.e. “The Ultimate Driving Machine”
and “Sheer Driving Pleasure” give us an overview of the marketing strategy it adopts.
“Identify potential and encouraging growth. Knowing what we represent. Recognizing where
our strengths lie and making the best use of every opportunity. Goals we have attained are in
essence the point of departure for new challenges”

Marketing Strategy of BMW Group:

The success of any company is based on how effective marketing and advertising strategy it
adopts. BMW Group adopts a marketing campaign of targeting its customers. In the slogans i.e.
“The Ultimate Driving Machine” and “Sheer Driving Pleasure”. BMW tells its customers and
other people that BMW cars give a pleasure in driving that no other car can give.
The marketing strategy of BMW also consists of a strong advertising strategy. WCRS has been
BMW’s advertising agency since 1979 and have really made a great brand image for BMW by
advertising campaigns including famous actors like James Bond, Tom Cruise etc.

BMW Brand Image:

The brands of BMW Group include BMW, MINI Cooper and Rolls Royce. The three brands speak
for themselves and are of superlative excellence. All of them have great innovation ability and
the customers really feel pleasure in driving.
This is also BMW’s business strategy i.e. to maintain outstanding brand image among
customers. The great advertising strategy of BMW Group is also a reason for BMW’s great
brand image. This brand image of BMW has been built by using over 300 colour
advertisements. BMW Group in all advertisements have remained consistent on the substance
used in the cars themselves. The three brands of BMW Group are:
BMW brand focuses on one thing, “Sheer Driving Pleasure”.
MINI is different; extroverted, spontaneous and in every respect something out of the ordinary
and ideal for a society that is young and unconventional.
SWOT ANALYSIS OF BMW GROUP
A SWOT analysis will be used to see the various Strengths, Weaknesses, Opportunities and
Threats of the BMW Group.

 Strengths:
Strong marketing strategy.
Customers recognize the strong brand name of BMW Group Company.
Strong brand image i.e. BMW, MINI Cooper and Rolls Royce.
Every 2 to 3 years BMW introduces its new version of cars i.e. constant innovation and
technology.

 Weaknesses:
There is an increasing number of duplicate spare parts of BMW and MINI Cooper.
The manufacturing costs of BMW cars are very high as compared to its competitors. This is also
a reason for high pricing of BMW cars.
Not a mass market company like Toyota and their volumes are small.

 Opportunities:
There is an opportunity for BMW Group to increase further innovation and technology in their
cars due to increasing competition in car industry.
BMW Group should also look to make new collaboration with other car manufacturers i.e.
introducing new brands.
BMW Group should also look to produce cheaper cars by new innovation and technology.
Expansion of the BMW Group in Asia Pacific, Asia, Africa and Australia.

 Threats:
Recession which has affected businesses in every part of the world.
To maintain the same level of innovation and performance.
The growing competition in the automobile industry i.e. competitors of BMW Group include
Mercedes, Audi, Jaguar, Ford, Lexus.
The earnings of the BMW Group are Dollar dominated, so the increasing strength of Euro is
another threat for the company.

BMW’s Vision

Today, BMW has achieved global recognition as a leading manufacturer of luxury sports cars.
The corporate image is highly respected and is considered as one of the few companies with an
excellent work environment along with a great corporate structure.
The vision statement of BMW is simplistic and quite realistic. Their vision states, “Uniqueness
through diversity, Leadership and taking risk, courteous.” The vision statement not only reveals
the attitude but strength of the company.
BMW believes in offering unique products embedded with premium quality catering to the
needs and requirements of a niche segment. The company has diversified its product line and
each product highlights the history of the organization marked with impeccable quality and
appeal. The management of BMW believes in taking risk by engaging themselves in exploring
hidden opportunities in the business environment along with challenging technology at every
step to come up with new and innovative products in the short as well as in the long run.
Overall, the vision statement of BMW is unique and practical that creates quite a vivid realistic
image backed by leadership and diversification.

BMW’s Mission

The mission statement of BMW states, “To become most successful premium car manufacturer
in the car industry” (Histesh). BMW is considered as one of the highly admired and desired
automobile brands across the world. The company is famous for its distinctive and innovative
designs, high quality and luxurious approach (Kiley 104).
BMW is one of the greatest automobile brands of all time with great appeal all across the
world. The mission statement might suggest the desire of the organization to become the most
successful premium car manufacturers in the car industry. However, the company is on top of
the list that will offer great solace to come up with new and innovative products to become the
world’s number one automobile company in terms of reach, acceptance and revenue.

Values and Objectives

The values and objectives of BMW are rooted in their golden history embedded with honesty
and high thinking. BMW has always desired of being ahead in the market through
understanding the internal and external business environment. The objectives of BMW include:
 To manufacture environmental friendly cars.
 To stay ahead in the competition.
 To help the society by being responsible.
 To increase the sales all across the world.

Communication Structure

The communication structure of BMW is very clear and direct, making the information
communicated in a desired manner. BMW offers wide arrays of communication tools that are
required to pass the message along with the understanding of feasibility and acceptance. The
communication structure of BMW is well-defined, including the use of newspapers, internet,
intranet, video and audio journals. Apart from this, the company also passes information to the
customers by organizing exhibitions and shows to create an image of their products and
services in an impactful manner. As a result, BMW targeting a specific segment of the market,
including upwardly mobile customers who desire the best and luxury sport car.
MARKETING MIX
4 P’s of marketing i.e. Product, Price, Promotion and Place is called the Marketing Mix.
Furthermore, marketing mix will be used to further research that marketing strategy of BMW.

1. Product:
BMW Group wants an efficient and dynamic look to their products. The major emphasis of
BMW Group is on product innovation and development. The
latest versions of BMW Group include BMW 1 Series, 3 Series, 5 Series, 6 Series and 7 Series,
BMW Z4-Roadster etc. The most recent version of MINI includes the “MINI Countryman”.
In recent times, BMW Group has started making smaller cars, which shows the company’s
innovative structure. Also because of the increasing competition in car industry, BMW Group
has to come up with some new innovative cars to compete with its competitors.

2. Price:
The prices of BMW Group are based on a differentiated strategy. This means that they charge
extra for premium quality. This difference in prices is due to each cars different engine size,
gear levels, fuel consumption, sports version.

3. Promotion:
The BMW Group uses different slogans and advertisements for the promotion of its products.
WCRS has been the advertising agency of BMW Group since 1979. The company invests a large
amount of money for their cars in films e.g. the film “The World Is Not Enough”. James Bond
drove the new Z8 before the car was launched and in “Austin Powers 3-Goldmember” the MINI
Cooper was used. These advertisement techniques have really helped BMW Group in their
promotion of the cars. BMW Group also promotes its cars by using slogans such as “The
Ultimate Driving Machine” and “Sheer Driving Pleasure”.

4. Place & Distribution:

The website of BMW Group regarding Placement and Distribution say that “BMW have 156
dealers in the UK who are franchised to sell BMW cars, additionally 148 dealers are franchised
to sell MINI Cooper. Worldwide BMW operate in 100 different countries with over 4.400
dealers which are authorized to sell both new and used cars, parts and after sales service
products”.