Description
As part of restructuring initiative, BMW focused on sports sedan leading to the launch of its first of ‘New Range’ BMW’s in 1961
Greater emphasis on advertising & sales support, combined with improving engineering and performance related aspects.
During 1970’s and 1980’s BMW expanded its operation in the USA Asia and Australia… cars got perceived as more stylish brand than other German brands like Volkswagen and Mercedes and became serious competitors to these brands in the premium car business.
In 1989 BMW appointed Karl Gerlinger (master marketer) to lead marketing division in the USA
Sales in the USA 1991…53,000 units. in 1992…. 66,000 units
Announced to set up new plant outside Germany … Spartanburg, South Carolina (US) in 1992
In 1992 succeeded in outselling Mercedes in Germany
Acquired “ROVER” in 1994, production capacity increased by 3% to 503,526 units in 1995
04/16/15
BMW’s Innovation strategies
1
“The truth is that innovation is a key element for BMW’s success
in the premium market and one of the key motivations to buy a
BMW”
----- BMW Group
04/16/15
BMW’s Innovation strategies
2
04/16/15
BMW’s Innovation strategies
3
BMW MODELS VIDEO
04/16/15
BMW’s Innovation strategies
4
Background Note
BMW founded as Aero-engine
manufacturing company in !"
Motorcyc#e and passengers cars
Restrictions b/o world war
Series of acquisitions & joint venture
$irst motorcyc#e mode# BMW %&' in !'&
04/16/15
BMW’s Innovation strategies
5
Folloed by!""
#i$i %&'(') *&+,& %&'*-) *&',& %&'*-)
04/16/15
BMW’s Innovation strategies
6
((success in internationa# racing events )*o #ig+t,eig+t construction-
outstanding aerodynamics- +ig+ performance and e#egance.(
/ompany prestige crossed 0ermany
BMW (*. sports in &'*/
04/16/15
BMW’s Innovation strategies
7
1nti# !23s BMW concentrated on #imited no( of mode#s and focus on ot+er parts of Europe
BMW 50 Roadster
?
4o,erfu# &(2
#t(- 5-cy#inder
and #ig+t,eig+t
meta# engine.(
?
+uge success in
automo)i#e
,or#d
04/16/15
BMW’s Innovation strategies
8
0ainy #ays!!
In !23’s despite sustained effort to emerge as manufacturer of prestigious
ve+ic#e faced )an6ruptcy on account of dec#ine in motorcyc#e mar6et
Wit+ t+e +e#p of an industria# financer- 7er)ert 8uandt BMW ,as a)#e to
t+,art ta6eover )id )y Mercedes
8uandt e9ercised ma
rity of BMW’s s+ares and initiated restructuring
e9ercise to )ring company )ac6 on trac6
BMW 700- a sma## car- came as t+e muc+ needed )oost and BMW regained its
position in t+e mar6et
04/16/15
BMW’s Innovation strategies
9
As part of restructuring initiative- BMW focused on sports sedan #eading to t+e
#aunc+ of its first of !"ew Ran#e’ BMW’s in !;
0reater emp+asis on advertisin# & sales support- com)ined ,it+ improving
engineering and performance re#ated aspects(
During !"3’s and !53’s BMW e9panded its operation in t+e 1SA Asia and
Austra#ia. cars got perceived as more sty#is+ )rand t+an ot+er 0erman )rands
#i6e Vo#6s,agen and Mercedes and )ecame serious competitors to t+ese )rands in
t+e premium car )usiness(
In !5! BMW appointed $arl Gerlin#er %&aster &ar'eter( to #ead mar6eting
division in t+e 1SA
Sa#es in t+e 1SA !!.2&-333 units( in !!'.( ;;-333 units
Announced to set up ne, p#ant outside 0ermany . Spartanbur#- Sout+ /aro#ina
uired ?R)*+R@ in !!A- production capacity increased )y &B to 23&-2';
units in !!2
04/16/15
BMW’s Innovation strategies
10
?
In !!2 introduced BMW 5 Series and ,- Roadster as ,e##
4ositioned as e#egance dynamic performance and safety
04/16/15
BMW’s Innovation strategies
11
BMW enter into sma## and medium siCe car categories ,it+ ?./e co&pact@
!!" BMW -01# 2o&pact and 503# tourin# version - first European natura#
gas car manufacture(
BMW #iversification %&''1’s)
BMW financial service Bavaria Wirtschaftsagentur 23oftlab
Bavaria 4loyd 0eicburo B5T56 Bar7und 5nergietechnik
6ontron 5lectronic
04/16/15
BMW’s Innovation strategies
12
BMW &''( BMW &''.
Revenue D 2(!" )i##ion D &'('5 )i##ion
"et profit D; mi##ion D A;' mi##ion
In !!" BMW ran6ed ;!t+ among $ortune 0#o)a# 233 companies
$IE uences of t+e oi# crisis
Economic recession
Mar6et s+ift to g#o)a#iCation
$ar-East Automo)i#e companies e9pansion
E9treme#y +ig+ competition for customers and resources
04/16/15
BMW’s Innovation strategies
34
Oeed -------- Ac>uired Oeed=
Ego need
As part of restructuring initiative, BMW focused on sports sedan leading to the launch of its first of ‘New Range’ BMW’s in 1961
Greater emphasis on advertising & sales support, combined with improving engineering and performance related aspects.
During 1970’s and 1980’s BMW expanded its operation in the USA Asia and Australia… cars got perceived as more stylish brand than other German brands like Volkswagen and Mercedes and became serious competitors to these brands in the premium car business.
In 1989 BMW appointed Karl Gerlinger (master marketer) to lead marketing division in the USA
Sales in the USA 1991…53,000 units. in 1992…. 66,000 units
Announced to set up new plant outside Germany … Spartanburg, South Carolina (US) in 1992
In 1992 succeeded in outselling Mercedes in Germany
Acquired “ROVER” in 1994, production capacity increased by 3% to 503,526 units in 1995
04/16/15
BMW’s Innovation strategies
1
“The truth is that innovation is a key element for BMW’s success
in the premium market and one of the key motivations to buy a
BMW”
----- BMW Group
04/16/15
BMW’s Innovation strategies
2
04/16/15
BMW’s Innovation strategies
3
BMW MODELS VIDEO
04/16/15
BMW’s Innovation strategies
4
Background Note
BMW founded as Aero-engine
manufacturing company in !"
Motorcyc#e and passengers cars
Restrictions b/o world war
Series of acquisitions & joint venture
$irst motorcyc#e mode# BMW %&' in !'&
04/16/15
BMW’s Innovation strategies
5
Folloed by!""
#i$i %&'(') *&+,& %&'*-) *&',& %&'*-)
04/16/15
BMW’s Innovation strategies
6
((success in internationa# racing events )*o #ig+t,eig+t construction-
outstanding aerodynamics- +ig+ performance and e#egance.(
/ompany prestige crossed 0ermany
BMW (*. sports in &'*/
04/16/15
BMW’s Innovation strategies
7
1nti# !23s BMW concentrated on #imited no( of mode#s and focus on ot+er parts of Europe
BMW 50 Roadster
?
4o,erfu# &(2
#t(- 5-cy#inder
and #ig+t,eig+t
meta# engine.(
?
+uge success in
automo)i#e
,or#d
04/16/15
BMW’s Innovation strategies
8
0ainy #ays!!
In !23’s despite sustained effort to emerge as manufacturer of prestigious
ve+ic#e faced )an6ruptcy on account of dec#ine in motorcyc#e mar6et
Wit+ t+e +e#p of an industria# financer- 7er)ert 8uandt BMW ,as a)#e to
t+,art ta6eover )id )y Mercedes
8uandt e9ercised ma
rity of BMW’s s+ares and initiated restructuringe9ercise to )ring company )ac6 on trac6
BMW 700- a sma## car- came as t+e muc+ needed )oost and BMW regained its
position in t+e mar6et
04/16/15
BMW’s Innovation strategies
9
As part of restructuring initiative- BMW focused on sports sedan #eading to t+e
#aunc+ of its first of !"ew Ran#e’ BMW’s in !;
0reater emp+asis on advertisin# & sales support- com)ined ,it+ improving
engineering and performance re#ated aspects(
During !"3’s and !53’s BMW e9panded its operation in t+e 1SA Asia and
Austra#ia. cars got perceived as more sty#is+ )rand t+an ot+er 0erman )rands
#i6e Vo#6s,agen and Mercedes and )ecame serious competitors to t+ese )rands in
t+e premium car )usiness(
In !5! BMW appointed $arl Gerlin#er %&aster &ar'eter( to #ead mar6eting
division in t+e 1SA
Sa#es in t+e 1SA !!.2&-333 units( in !!'.( ;;-333 units
Announced to set up ne, p#ant outside 0ermany . Spartanbur#- Sout+ /aro#ina
uired ?R)*+R@ in !!A- production capacity increased )y &B to 23&-2';
units in !!2
04/16/15
BMW’s Innovation strategies
10
?
In !!2 introduced BMW 5 Series and ,- Roadster as ,e##
4ositioned as e#egance dynamic performance and safety
04/16/15
BMW’s Innovation strategies
11
BMW enter into sma## and medium siCe car categories ,it+ ?./e co&pact@
!!" BMW -01# 2o&pact and 503# tourin# version - first European natura#
gas car manufacture(
BMW #iversification %&''1’s)
BMW financial service Bavaria Wirtschaftsagentur 23oftlab
Bavaria 4loyd 0eicburo B5T56 Bar7und 5nergietechnik
6ontron 5lectronic
04/16/15
BMW’s Innovation strategies
12
BMW &''( BMW &''.
Revenue D 2(!" )i##ion D &'('5 )i##ion
"et profit D; mi##ion D A;' mi##ion
In !!" BMW ran6ed ;!t+ among $ortune 0#o)a# 233 companies
$IE uences of t+e oi# crisis
Economic recession
Mar6et s+ift to g#o)a#iCation
$ar-East Automo)i#e companies e9pansion
E9treme#y +ig+ competition for customers and resources
04/16/15
BMW’s Innovation strategies
34
Oeed -------- Ac>uired Oeed=
Ego need