Description
PROJECT ON COMPARISON BETWEEN TOYOTA AND BMW
W.V.T.T
Joshua Whale, Ashley Varley, Michael Tomkinson and Jonathan Toon
?
? ?
?
?
Founded in 1916 Based in Germany High performance Luxury vehicles Sells products under Mini and Rolls Royce Motor Cars brands
? ?
?
? ?
?
Founded in 1937 Based in Japan One of the largest automobile manufactures in the world Produce automobiles and related parts through more than 26 countries Conventional engine vehicles and hybrid vehicles Sells products under Toyota, Lexus, Hino and Daihatsu brands
1,550,000 1,500,000 1,450,000
1,400,000
Sales 1,350,000 1,300,000 1,250,000 1,200,000 1,150,000
2005
2006
2007
2008
2009
Automobile Deliveries 1,327,992 1,373,970 1,500,678 1,435,876 1,286,310 Total
9,000,000 8,500,000 8,000,000 Sales 7,500,000 7,000,000 6,500,000 6,000,000
2006
2007
2008
2009
2010
Automobile Deliveries 7,974,000 8,524,000 8,913,000 7,567,000 7,237,000 Total
CONTROLLABLE
STRENGTHS • Sustained brand recognition - Helps BMW to charge premium price *(See Figure 1) • Mini sales sky high worldwide • Customers have high income
WEAKNESSES • Low MPG *(See Figure 2) • Increased costs of raw materials, e.g. oil • Falling value of Euro
UNCONTROLLABLE
OPPORTUNITIES • Increasing demand for more fuel efficient vehicles • Emerging markets - Asian Market • Hydrogen and electric cars • Auto industry is set to recover
THREATS • High competition in automotive market • Emission standards increasing - Higher production costs • Future rising fuel prices
CONTROLLABLE
STRENGTHS • Sustained brand recognition - Helps charge premium price *(See Figure 1 and Figure 3) • Focus on R&D departments • Strong distribution network • Production system - Lower costs
WEAKNESSES • Lapses in product quality will damage brand image and sales • Unfunded pension schemes - Adverse effect on cash flow
UNCONTROLLABLE
OPPORTUNITIES • Increasing demand for more fuel efficient vehicles • Emerging markets - Asian Market • Product development - New product launches, keeps customer interest • Auto Industry is set to recover
THREATS • High competition in automotive market • Emission standards increasing - Higher production costs • Future rising fuel prices • Falling JPY against USD
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICAL
LEGAL
ENVIRONMENTAL
UK - Car Scrappage Scheme 2008-10
EU - Threat of government intervention UK Taxation Fuel Duty Excise Duty Company Car Tax VAT 1996 - £30.2 billion 2005 - £43.3 billion
Rising energy costs E.g. Oil
Emerging Markets: China India
Social Network Websites: Facebook
Safer Environmentally Quality Robot Globalisation
Internet, Websites
Tougher Emission Regulations
Demand up for more environmental friendly vehicles
2007-2009 Global Recession: Affecting sales 2008-2013 Expected Annual Growth Rate of 4.4%
EU: 2005 - EURO 4 2009 - EURO 5 2014/15 - EURO 6 USA: 2005 - ZEV 2009 - More states
ASIA: Starting to adopt emission standards Australia: 2008 - New emission standards
Exchange Rate Fluctuations
FACTOR PRICE
BMW • • • Highest price - M6 Convertible £92,175 1995 - 3 Series 318ti Base price $19,990 Lasted until 1998 2008 - Series 1 Cheapest version £17,610 Entry-level models through Mini Brand
TOYOTA • Reducing price & attractive finance packages in US due to the product recalls - E.g. Toyota Prius reduced by $1500 • More willing to negotiate on pricing due to product recalls • Used to be known for quality and reliability • Recent quality issues - leading to product recalls • Produce automobiles and parts in 26+ countries
PRODUCT/SERVICE
•
PLACE/DISTRIBUTION
•
More MEDC’s
PROMOTION
• •
•
•
High class, quality Used to be “Ultimate Driving Machine” Now its “Joy is Maternal” (Mothers and Children) - Most expensive brand-wide campaign ever in North America 2008 - Best value on its advertising - £22 per car. Industry average £233 per car.
• Brand image problem • In the long term looking to promote the value factor they used to have
FACTOR SEX
BMW Females • Open driving • S Series Convertible and Z4 Males 25-40 • Sport • 1 and 3 Series Males 40 + • Luxury/Professional • 5 and 7 Series Higher - £40,000 + High A and B Class Families • Spaciousness and interior versatility • X3 and X5 Active lifestyles • Interest in outdoor activities, extreme sports • 3 and 5 Series Touring Urban / 39 or younger • Z4 and 1 Series High Little or No interest Global
TOYOTA Females • City/smaller car • iQ, Aygo, Urban cruiser and Yaris Males • Saloons • Avensis, Auris and Prius
INCOME SOCIAL CLASS LIFESTYLE
Average - £25,543 Medium/Low C1 and C2 Class Average family vehicle • Reliable • Spacious • Affordable Appreciative of the environment Urban and Rural / 25 Average High interest Global
POPULATION/AGE LEVELS OF EDUCATION ENVIRONMENTAL POPULATION
BMW - Key Automobile markets 2009
As a percentage of sales volume
Toyota - Key Automobile markets 2009
As a percentage of sales volume
Germany - 20.8 USA - 18.8 UK - 10.7 China - 7.7
Italy - 5.9 France- 4.9 Spain - 3.2 Other - 28.0
USA - 37 Europe - 18 China - 15 Thailand - 5
Australia - 4 Canada - 4 Indonesia - 4 Other - 13
FUNCTIONAL FEATURES QUALITY USE EXPRESSIVELY USER
BMW Sport, Luxury and Open Driving High, top end of market With high performance TOYOTA For more an average user, wider market
BENEFIT
HERITAGE
More MPG and environmentally friendly
High quality reputation since 1970’s
? ? ? ? ? ?
? ? ?
?
?
?
BMW, 2009. Annual report 2009-2010. [online] Available at: [Accessed 17 October 2010] Toyota, 2010. History of Toyota. [online] Available at: [Accessed 7 October 2010] Toyota, 2010. Financial Highlights. [online] Available at: [Accessed 7 October 2010] Toyota, 2010. Market/Toyota Sales and Production. [online] Available at: [Accessed 7 October 2010] Toyota, 2010. Sustainability Report 2010. [online] Available at: [Accessed 7 October 2010] Direct Independent Consumer Opinion from the Motoring Watchdog Group, 2010. Least fuel efficient cars. [online] Available at: [Accessed 20 October 2010] BusinessWeek, 2009. Annual report 2008-2009. [online] Available at: [Accessed 18 October 2010] CNNMoney, 2009, Annual report 2009-2010 [online] Available at: [Accessed 18 October 2010] Unnamed author, 2010. BMW adopts Facebook fan page. New Media Age, [online] 5 August. Available through: Mintel Available at: [Accessed 9 October 2010] Unnamed author, 2009. BMW chief warns against government intervention. Financial Times, [online] Mintel, 4 March. Available through: Mintel Available at: [Accessed 9 October 2010] Steven Cole Smith, 2008. Budget Beemer: BMW's new 1-Series models offer style and flash - but for a lot less cash. Orlando Sentinel. [online]5 April. Available at: [Accessed 9 October 2010] Anderson, Jessica, 2010. Don’t Count Out Toyota. Kiplinger’s Personal Finance. [e-journal] 62{4)p85, Abstract only. Available through: Business Source Premier. [Accessed 10 October 2010]
W.V.T.T
Joshua Whale, Ashley Varley, Michael Tomkinson and Jonathan Toon
doc_355690358.pptx
PROJECT ON COMPARISON BETWEEN TOYOTA AND BMW
W.V.T.T
Joshua Whale, Ashley Varley, Michael Tomkinson and Jonathan Toon
?
? ?
?
?
Founded in 1916 Based in Germany High performance Luxury vehicles Sells products under Mini and Rolls Royce Motor Cars brands
? ?
?
? ?
?
Founded in 1937 Based in Japan One of the largest automobile manufactures in the world Produce automobiles and related parts through more than 26 countries Conventional engine vehicles and hybrid vehicles Sells products under Toyota, Lexus, Hino and Daihatsu brands
1,550,000 1,500,000 1,450,000
1,400,000
Sales 1,350,000 1,300,000 1,250,000 1,200,000 1,150,000
2005
2006
2007
2008
2009
Automobile Deliveries 1,327,992 1,373,970 1,500,678 1,435,876 1,286,310 Total
9,000,000 8,500,000 8,000,000 Sales 7,500,000 7,000,000 6,500,000 6,000,000
2006
2007
2008
2009
2010
Automobile Deliveries 7,974,000 8,524,000 8,913,000 7,567,000 7,237,000 Total
CONTROLLABLE
STRENGTHS • Sustained brand recognition - Helps BMW to charge premium price *(See Figure 1) • Mini sales sky high worldwide • Customers have high income
WEAKNESSES • Low MPG *(See Figure 2) • Increased costs of raw materials, e.g. oil • Falling value of Euro
UNCONTROLLABLE
OPPORTUNITIES • Increasing demand for more fuel efficient vehicles • Emerging markets - Asian Market • Hydrogen and electric cars • Auto industry is set to recover
THREATS • High competition in automotive market • Emission standards increasing - Higher production costs • Future rising fuel prices
CONTROLLABLE
STRENGTHS • Sustained brand recognition - Helps charge premium price *(See Figure 1 and Figure 3) • Focus on R&D departments • Strong distribution network • Production system - Lower costs
WEAKNESSES • Lapses in product quality will damage brand image and sales • Unfunded pension schemes - Adverse effect on cash flow
UNCONTROLLABLE
OPPORTUNITIES • Increasing demand for more fuel efficient vehicles • Emerging markets - Asian Market • Product development - New product launches, keeps customer interest • Auto Industry is set to recover
THREATS • High competition in automotive market • Emission standards increasing - Higher production costs • Future rising fuel prices • Falling JPY against USD
POLITICAL
ECONOMIC
SOCIAL
TECHNOLOGICAL
LEGAL
ENVIRONMENTAL
UK - Car Scrappage Scheme 2008-10
EU - Threat of government intervention UK Taxation Fuel Duty Excise Duty Company Car Tax VAT 1996 - £30.2 billion 2005 - £43.3 billion
Rising energy costs E.g. Oil
Emerging Markets: China India
Social Network Websites: Facebook
Safer Environmentally Quality Robot Globalisation
Internet, Websites
Tougher Emission Regulations
Demand up for more environmental friendly vehicles
2007-2009 Global Recession: Affecting sales 2008-2013 Expected Annual Growth Rate of 4.4%
EU: 2005 - EURO 4 2009 - EURO 5 2014/15 - EURO 6 USA: 2005 - ZEV 2009 - More states
ASIA: Starting to adopt emission standards Australia: 2008 - New emission standards
Exchange Rate Fluctuations
FACTOR PRICE
BMW • • • Highest price - M6 Convertible £92,175 1995 - 3 Series 318ti Base price $19,990 Lasted until 1998 2008 - Series 1 Cheapest version £17,610 Entry-level models through Mini Brand
TOYOTA • Reducing price & attractive finance packages in US due to the product recalls - E.g. Toyota Prius reduced by $1500 • More willing to negotiate on pricing due to product recalls • Used to be known for quality and reliability • Recent quality issues - leading to product recalls • Produce automobiles and parts in 26+ countries
PRODUCT/SERVICE
•
PLACE/DISTRIBUTION
•
More MEDC’s
PROMOTION
• •
•
•
High class, quality Used to be “Ultimate Driving Machine” Now its “Joy is Maternal” (Mothers and Children) - Most expensive brand-wide campaign ever in North America 2008 - Best value on its advertising - £22 per car. Industry average £233 per car.
• Brand image problem • In the long term looking to promote the value factor they used to have
FACTOR SEX
BMW Females • Open driving • S Series Convertible and Z4 Males 25-40 • Sport • 1 and 3 Series Males 40 + • Luxury/Professional • 5 and 7 Series Higher - £40,000 + High A and B Class Families • Spaciousness and interior versatility • X3 and X5 Active lifestyles • Interest in outdoor activities, extreme sports • 3 and 5 Series Touring Urban / 39 or younger • Z4 and 1 Series High Little or No interest Global
TOYOTA Females • City/smaller car • iQ, Aygo, Urban cruiser and Yaris Males • Saloons • Avensis, Auris and Prius
INCOME SOCIAL CLASS LIFESTYLE
Average - £25,543 Medium/Low C1 and C2 Class Average family vehicle • Reliable • Spacious • Affordable Appreciative of the environment Urban and Rural / 25 Average High interest Global
POPULATION/AGE LEVELS OF EDUCATION ENVIRONMENTAL POPULATION
BMW - Key Automobile markets 2009
As a percentage of sales volume
Toyota - Key Automobile markets 2009
As a percentage of sales volume
Germany - 20.8 USA - 18.8 UK - 10.7 China - 7.7
Italy - 5.9 France- 4.9 Spain - 3.2 Other - 28.0
USA - 37 Europe - 18 China - 15 Thailand - 5
Australia - 4 Canada - 4 Indonesia - 4 Other - 13
FUNCTIONAL FEATURES QUALITY USE EXPRESSIVELY USER
BMW Sport, Luxury and Open Driving High, top end of market With high performance TOYOTA For more an average user, wider market
BENEFIT
HERITAGE
More MPG and environmentally friendly
High quality reputation since 1970’s
? ? ? ? ? ?
? ? ?
?
?
?
BMW, 2009. Annual report 2009-2010. [online] Available at: [Accessed 17 October 2010] Toyota, 2010. History of Toyota. [online] Available at: [Accessed 7 October 2010] Toyota, 2010. Financial Highlights. [online] Available at: [Accessed 7 October 2010] Toyota, 2010. Market/Toyota Sales and Production. [online] Available at: [Accessed 7 October 2010] Toyota, 2010. Sustainability Report 2010. [online] Available at: [Accessed 7 October 2010] Direct Independent Consumer Opinion from the Motoring Watchdog Group, 2010. Least fuel efficient cars. [online] Available at: [Accessed 20 October 2010] BusinessWeek, 2009. Annual report 2008-2009. [online] Available at: [Accessed 18 October 2010] CNNMoney, 2009, Annual report 2009-2010 [online] Available at: [Accessed 18 October 2010] Unnamed author, 2010. BMW adopts Facebook fan page. New Media Age, [online] 5 August. Available through: Mintel Available at: [Accessed 9 October 2010] Unnamed author, 2009. BMW chief warns against government intervention. Financial Times, [online] Mintel, 4 March. Available through: Mintel Available at: [Accessed 9 October 2010] Steven Cole Smith, 2008. Budget Beemer: BMW's new 1-Series models offer style and flash - but for a lot less cash. Orlando Sentinel. [online]5 April. Available at: [Accessed 9 October 2010] Anderson, Jessica, 2010. Don’t Count Out Toyota. Kiplinger’s Personal Finance. [e-journal] 62{4)p85, Abstract only. Available through: Business Source Premier. [Accessed 10 October 2010]
W.V.T.T
Joshua Whale, Ashley Varley, Michael Tomkinson and Jonathan Toon
doc_355690358.pptx