abhishreshthaa
Abhijeet S
In the early 2000s, BMW began to restructure its business. It focused on strengthening its position as the market leader in the premium segment of automobiles across the world.
In line with this, it adopted a product offensive strategy which aimed at flooding the automobile market with new launches (i.e. a new product every three months).
BMW increased its R&D expenditure by 53% to support this strategy.
Some of the new cars launched as a part of this strategy were Mini One, Mini Cooper, new BMW 3 Series Compact, new BMW 7 Series and Z4 Roadster.
By 2002, BMW had overtaken Mercedes and stood second in the premium segment of the US automobile market, next only to Lexus
THE STORY BEFORE 2001…
Before 2001 the majority of BMW’s success is attributed to the development of consistent marketing policy, the “market niche” strategy.
The company had four core values
Technology,
Quality,
Performance,
Exclusivity
The company used advertisements as a means of marketing and these advertisements evolved in response to economic, environmental and competitive changes.
Promotion strategies before - 2001
Turning Point - 2001
In year 2001, they launched BMWFilms.com, “The Hire” (a film series consisting of five different short films) has been singled out as the first high profile, big-budget, celebrity-laden Internet marriage of advertising and entertainment.
Traffic to the site was up 55% to 214,000 unique visitors compared to only 138,000 the previous week.
Average work-hard, play-hard customer was 46 years old, with a median income of about $150,000. Two-thirds were male, married, and had no children.
As BMW sliced and diced its market further, an interesting statistic surfaced: Roughly 85% of BMW purchasers used the Internet before purchasing a BMW
In addition to the BMW Films series the promotional campaign consisted of TV spots that copied trailers, and print and online advertising, which were designed to drive consumers to the web site (Hespos, 2002).
Never before (or since) had an automotive company taken such a strong stance to drive consumers to the Web, and the results are compelling. More than 10 million films have been viewed from BMWFilms.com. Nearly 2 million people registered on the site, with 60% of those registrants opting to receive more information via e-mail.
An astonishing 94% of registrants recommended films to others, seeding the viral campaign, and more than 40,000 people voluntarily responded to a survey.
The guerilla public relations campaign
The guerilla public relations campaign utilized several diverse promotion tactics including seeding news of the BMW Films at key Internet entertainment rumor sites and a radio DJ program in 20 key metro markets.
BMW sales increased by 12.5% compared to 2000, surpassing the 200,000 mark for the first time in history.
BMW Car maker uses web mostly to drive its brand.
Car manufacturer BMW takes the phrase 'beyond the banner' seriously. In its ads for the BMW Compact, the car drives out of the banner ad and around the sides of the browser window, to show how much it "loves corners".
BMW's online strategy is highly brand-driven in the UK, with clickthrough considered to be a side benefit.
The company has used traditional banners, banners with pull-down menus, Superstitials, transitional ads which appear between pages, sponsorship and dynamic html ads like the one mentioned above to promote its brand message--the benefits of ownership in terms of the driving experience.
The car company's research shows that of the people who were exposed to its online advertising in a particular environment and then visited BMW.co.uk, more than 80 percent did not click through straightaway, but visited later. This shows, says BMW, that they had retained the brand message, even after leaving the banner.
SUPERSTITIALs are highly interactive, non-banner ads that can be any size on the computer screen and up to 100K in file size, featuring full animation, sound and graphics capable of effectively conveying integrated advertising while protecting a Web site's performance.
SUPERSTITIALs can be used to achieve multiple advertising goals, including branding, direct marketing, commerce and entertainment. SUPERSTITIAL ads play only once fully loaded, ensuring that every user gets a consistent and complete brand message and that each advertiser pays only for guaranteed impressions.
Marketing Channels
Internet
468x60 banners are sold on a run-of-site (ROS) basis, meaning, they will appear on every search results page and on an equal rotating basis with other advertisers' banners. For online ads, each advertiser is given password-protected access to Real-Time advertising statistics,
Television
The percentages of viewers of MSNBC and Bravo who are in BMW’s target income bracket constitute 20.5%. The percentage of viewers in BMW’s target age group (25-34) is 26.5%.
Print
DVD
RESULTS OF THE CAMPAIGN
In 2001, BMW sales increased by 12.5% compared to 2000
During the four month core of the promotion, the films were viewed more than 11 million times
Clickthrough on that Superstitial was 4.7 percent,
E-COMMERCE IN BMW
The BMW group uses e-commerce strategies to explore the market for effective business.
The group sees e-commerce as both a challenge and an opportunity for the entire company.
The BMW Groups production network is characterised by agility, the ability to respond quickly and flexibly within a changing framework
The BMW group introduced an online ordering system in 1998 which gives dealers the option of showing customers their desired car on the screen and confirming the delivery date on the spot.
Through the system, the time frame when the vehicle can be built with the desired fitting is fixed in few seconds and the place in the production process is immediately reserved and the manufacturing logistic department informed
The BMW group has optimised internal processes to such a level that changes according to the customer wishes regarding engine capacity, colour upholstery can be accommodated up to ten working days before the start of the production without effecting the delivery
BMW, utilises the internet as an integral tool for developing superior customer relations, through providing an environment inclusive, both to existing and potential customers, through expressing views and providing feedback on product development
Present Marketing Strategies
E-mail Marketing
e-catalogue Brochure
Registration for test-drive
Mail alert
Personalization message
News alerts
New car launches
Used car specials
Events
VIP Club Info -Concerts, musicals, movies and
related show information
BMW accessory offers
Customer Thank you and congratulation
brochures
Campaign For Its Luxury Certified “Pre-Owned. We Swear.” Program
Excellent information.
Major e -Marketing strategies
Website Registration Forms:
Permission based forms allow web visitors to subscribe with automated notification allowing confirmation of subscription and thank you messages.
Registrations for Events and New Vehicle Test Drives:
New Vehicle promotions and Event Registrations are sent out via email, allowing customers to easily register via online forms, advising what time and day they would like a test drive. Brisbane BMW are notified via email lead sheets and customer registration data is automatically compiled in a registration database making it ideal for tracking and follow up. Registering customers also receive an auto reply advising they have been booked in and will be contacted.
Service Reminders and Offers:
Service reminders and special offers are emailed frequently as a cost effective and powerful way of keeping services up to date whilst allowing customers to take advantage of special offers.
Sale Events Notices:
Regular sales event brochures are emailed to prospects and customers advising of great purchasing opportunities.
In line with this, it adopted a product offensive strategy which aimed at flooding the automobile market with new launches (i.e. a new product every three months).
BMW increased its R&D expenditure by 53% to support this strategy.
Some of the new cars launched as a part of this strategy were Mini One, Mini Cooper, new BMW 3 Series Compact, new BMW 7 Series and Z4 Roadster.
By 2002, BMW had overtaken Mercedes and stood second in the premium segment of the US automobile market, next only to Lexus
THE STORY BEFORE 2001…
Before 2001 the majority of BMW’s success is attributed to the development of consistent marketing policy, the “market niche” strategy.
The company had four core values
Technology,
Quality,
Performance,
Exclusivity
The company used advertisements as a means of marketing and these advertisements evolved in response to economic, environmental and competitive changes.
Promotion strategies before - 2001
Turning Point - 2001
In year 2001, they launched BMWFilms.com, “The Hire” (a film series consisting of five different short films) has been singled out as the first high profile, big-budget, celebrity-laden Internet marriage of advertising and entertainment.
Traffic to the site was up 55% to 214,000 unique visitors compared to only 138,000 the previous week.
Average work-hard, play-hard customer was 46 years old, with a median income of about $150,000. Two-thirds were male, married, and had no children.
As BMW sliced and diced its market further, an interesting statistic surfaced: Roughly 85% of BMW purchasers used the Internet before purchasing a BMW
In addition to the BMW Films series the promotional campaign consisted of TV spots that copied trailers, and print and online advertising, which were designed to drive consumers to the web site (Hespos, 2002).
Never before (or since) had an automotive company taken such a strong stance to drive consumers to the Web, and the results are compelling. More than 10 million films have been viewed from BMWFilms.com. Nearly 2 million people registered on the site, with 60% of those registrants opting to receive more information via e-mail.
An astonishing 94% of registrants recommended films to others, seeding the viral campaign, and more than 40,000 people voluntarily responded to a survey.
The guerilla public relations campaign
The guerilla public relations campaign utilized several diverse promotion tactics including seeding news of the BMW Films at key Internet entertainment rumor sites and a radio DJ program in 20 key metro markets.
BMW sales increased by 12.5% compared to 2000, surpassing the 200,000 mark for the first time in history.
BMW Car maker uses web mostly to drive its brand.
Car manufacturer BMW takes the phrase 'beyond the banner' seriously. In its ads for the BMW Compact, the car drives out of the banner ad and around the sides of the browser window, to show how much it "loves corners".
BMW's online strategy is highly brand-driven in the UK, with clickthrough considered to be a side benefit.
The company has used traditional banners, banners with pull-down menus, Superstitials, transitional ads which appear between pages, sponsorship and dynamic html ads like the one mentioned above to promote its brand message--the benefits of ownership in terms of the driving experience.
The car company's research shows that of the people who were exposed to its online advertising in a particular environment and then visited BMW.co.uk, more than 80 percent did not click through straightaway, but visited later. This shows, says BMW, that they had retained the brand message, even after leaving the banner.
SUPERSTITIALs are highly interactive, non-banner ads that can be any size on the computer screen and up to 100K in file size, featuring full animation, sound and graphics capable of effectively conveying integrated advertising while protecting a Web site's performance.
SUPERSTITIALs can be used to achieve multiple advertising goals, including branding, direct marketing, commerce and entertainment. SUPERSTITIAL ads play only once fully loaded, ensuring that every user gets a consistent and complete brand message and that each advertiser pays only for guaranteed impressions.
Marketing Channels
Internet
468x60 banners are sold on a run-of-site (ROS) basis, meaning, they will appear on every search results page and on an equal rotating basis with other advertisers' banners. For online ads, each advertiser is given password-protected access to Real-Time advertising statistics,
Television
The percentages of viewers of MSNBC and Bravo who are in BMW’s target income bracket constitute 20.5%. The percentage of viewers in BMW’s target age group (25-34) is 26.5%.
DVD
RESULTS OF THE CAMPAIGN
In 2001, BMW sales increased by 12.5% compared to 2000
During the four month core of the promotion, the films were viewed more than 11 million times
Clickthrough on that Superstitial was 4.7 percent,
E-COMMERCE IN BMW
The BMW group uses e-commerce strategies to explore the market for effective business.
The group sees e-commerce as both a challenge and an opportunity for the entire company.
The BMW Groups production network is characterised by agility, the ability to respond quickly and flexibly within a changing framework
The BMW group introduced an online ordering system in 1998 which gives dealers the option of showing customers their desired car on the screen and confirming the delivery date on the spot.
Through the system, the time frame when the vehicle can be built with the desired fitting is fixed in few seconds and the place in the production process is immediately reserved and the manufacturing logistic department informed
The BMW group has optimised internal processes to such a level that changes according to the customer wishes regarding engine capacity, colour upholstery can be accommodated up to ten working days before the start of the production without effecting the delivery
BMW, utilises the internet as an integral tool for developing superior customer relations, through providing an environment inclusive, both to existing and potential customers, through expressing views and providing feedback on product development
Present Marketing Strategies
E-mail Marketing
e-catalogue Brochure
Registration for test-drive
Mail alert
Personalization message
News alerts
New car launches
Used car specials
Events
VIP Club Info -Concerts, musicals, movies and
related show information
BMW accessory offers
Customer Thank you and congratulation
brochures
Campaign For Its Luxury Certified “Pre-Owned. We Swear.” Program
Excellent information.
Major e -Marketing strategies
Website Registration Forms:
Permission based forms allow web visitors to subscribe with automated notification allowing confirmation of subscription and thank you messages.
Registrations for Events and New Vehicle Test Drives:
New Vehicle promotions and Event Registrations are sent out via email, allowing customers to easily register via online forms, advising what time and day they would like a test drive. Brisbane BMW are notified via email lead sheets and customer registration data is automatically compiled in a registration database making it ideal for tracking and follow up. Registering customers also receive an auto reply advising they have been booked in and will be contacted.
Service Reminders and Offers:
Service reminders and special offers are emailed frequently as a cost effective and powerful way of keeping services up to date whilst allowing customers to take advantage of special offers.
Sale Events Notices:
Regular sales event brochures are emailed to prospects and customers advising of great purchasing opportunities.