THE BMW JOY SALES EVENT

THIS HOLIDAY SEASON, WE'RE SPREADING
JOY WITH A HOLIDAY CREDIT OF UP TO $2,500.
Our favorite time of the year is here. And now you can celebrate it by driving away in an Ultimate Driving Machine®. Until January 3, 2011, take advantage of unprecedented offers on all 2011 models. Enjoy a Holiday Credit of $1,500 on the 1 Series, 3 Series, 5 Series (including the Gran Turismo) and Z4. You'll also receive a $2,500 Holiday Credit on the X5, X6 and 7 Series (excluding the 760Li and Alpina). And when you buy or lease through BMW Financial Services, you'll enjoy financing rates as low as 0.9% or no down payment. 1


Every BMW comes standard with luxurious interiors, stunning exteriors and thrilling performance. And with dozens available for you to choose from, you'll find the model for you. So, visit your local BMW Center before this very special offer ends on January 3, 2011.

Week 14- ( Chap.8)-Segmenting Targeting Markets

In United States, BMW is a niche market. Although BMW, Mercedes-Benz and Audi dominate the market for executive cars, BMW has found its specific target market by focusing on a relatively small group of customers. However, the brand and cars make BMW successful. It often said that said that " its better to be a relatively big fish in a small pond than a small fish in a big pond". BMW does that by shrinking the market and creating a specialized marketing mix for the customers. For example, the customer at BMW dealers look for cars that are classic, executive, and sporty. Generally, the people that own a BMW car are professionals, not saying that an illiterate person shouldn't have it. As a example I have a family who is a doctor and he has one BMW Z4, my boss who is a pharmacist has a BMW M3. In addition, young married/divorced without children are more likely to have a BMW, not saying that elderly or parents shouldn't have it. In my way to BMCC every morning I see business people driving this car. I know for sure that in the future I will be in that position. BMW dealers are more visited in Manhattan Downtown than in The Bronx. It means that they target geographically that community in Downtown because over there customers have more purchasing power and is more accessible. BMW also fulfill the needs of the customer and the environment. They manufactures their car thinking quite a lot about sustainability. BMW is one of the three biggest player in the market for executive cars. The competition for sales between the big three German premium brands is heating up but BMW still remains ahead of rivals Audi and Mercedes-Benz. For November 2010, BMW Group's global sales were 129,014 units - a 20 percent rise over the same month last year. BMW outsold its closest competitor Mercedes-Benz by more than 15,000 units. Mercedes-Benz global sales were 112,300 units while the VW Group's Audi brand were 87,050. BMW benefited from having a new 5-series and the all-new X1 and MINI Countryman models to offer its customers.

Source: Bloomberg

http://www.bloomberg.com/news/2010-12-08/bmw-says-november-sales-gained-putting-2010-car-delivery-goal-in-sight-.html

Week 13-( Chap.11)- Developing and Managing Products

In October 2002, the world-renowned automobile manufacturer from Germany, BMW Group (BMW) was awarded the 'Outstanding Corporate Innovator (OCI)' title for 2002, by the Product Development & Management Association (PDMA).

This award was given for BMW's demonstrated exceptional skill in constantly creating and capturing value, through its innovations and development of new products. Commenting on BMW's selection for the award, the Chairman of the OCI Awards Selection Committee said that the company had shown a strong strategic commitment to innovation. The award came as a major recognition of the company's decision to let innovation be the driving force for its product development process throughout the late 1990s. Industry observers expected this development to further help BMW establish itself as one of the leading players in the premium segment of the global automobile market. According to analysts, BMW's innovation management system, developed in the late 1990s was the main reason behind the company winning the OCI title.

This innovation management system enabled BMW to exploit various path breaking technological innovations, right from the idea generation stage to the market introduction stage. This system enabled BMW to develop a continuous stream of new products and brands. Company sources admitted that by focusing on new product development practices using the innovation approach, BMW successfully withstood competitive pressures and held on to its market position. BMW is already working with consumers. The benefits of embracing new consumer interaction practices and experimenting new ways of seeking consumer inspiration. With the availability of new and technologies and a little imagination they recognize that they cannot maintain competitive advantage by relying only on traditional methods. Companies intrigued by this may want to start by conducting a small experiment such as opening up a design meeting or a brainstorming session to consumers who may have an opinion, product suggestion, or new business idea.

Finally this video will show you more about what BMW is doing:

BMW

Week 12- ( Chap.21) -BMW's Customer Relationship Management ( CRM )

In BMW the first approach into CRM was launched in 1999. It was the same at many other companies. It was mainly driven out of the IT community leveraging the new CRM applications and the call-in capabilities for enhanced business processes. As I said in the product concept chapter that BMW's success builds upon two major pillars, brand and products. One of the biggest challenges they have is: to convince the employees that they share knowledge. As you can guess, salespersons see customer knowledge as their personal assets.

Now, the company uses Siebel Automative as their CRM software. Siebel Systems, Inc., is a provider of business applications software, and it announced that "BMW North America Sales (BMWNA) and BMW Financial Services (BMWFS) have deployed Siebel Automotive in their contact centers to enhance the customer experience and increase customer loyalty and retention. BMW has also deployed functionality from Siebel Automotive's Customer- and Vehicle-Centric Service and Integrated Captive Finance solution sets, leveraging the Siebel Automotive embedded best-practice business processes, automotive industry functionality, and common customer infrastructure across business units." 

This system manage and leverages the core functionality : Siebel Sales, Siebel Service, Siebel Call Center, and related products, and builds upon it specific functionality that car companies require. 

Contact center representatives in both Sales and Financial Services now have full visibility into each customer's total relationship with BMW. A representative, for example, can see that a particular customer has more than one BMW product or perhaps has a banking relationship with BMW Financial Services. At the same time, BMW can maintain data confidentiality to meet legal requirements. As a result, customers are receiving more personalized service, resulting in enhanced customer relationships and increased loyalty. Going back to chapter 16, the task of promotion are: informing, persuading, and reminding the target customer about the products and services offered within the company, so with the appropriate IT and CRM application this task can be fulfill and bring tons of profit to the company. For example, according to Nicole Carusso, BMW of Manhattan Marketing Manager, "BMW use its CRM system and database to keep track of anything pending for a customer, supplier or partner. Calls to be made. Appointments scheduled. Forecasted sales. Potential opportunities. Outstanding quotes. Open service issues. This good CRM system has calendars, activity lists and forms so that this kind of information doesn’t fall through the cracks. It has reminders and automatic emails. It has the ability to schedule follow-ups for others in their company. Nothing gets forgotten."

Week 11-(Chap.16)- BMW's Integrated Marketing Communication

BMW is an automobile dealer that manufactures and sells a wide range of vehicles. The BMW automobiles are sold to a special target market and appeals only to a particular stratum of people. BMW vehicles are classy, stylish, comfortable and luxurious. With regard to the BMW films, which can be viewed on www.bmw.com, there are a number of reasons surrounding the success of these films. The films allow prospective customers to view the cars before purchasing them. Marketers ensured that the visitors to the site felt compelled to stay at the site. They associated each model of the vehicle to that of human attributes. For example, the BMW Formula M was described as having a ‘soul’. When consumers see these attributes, they suddenly begin to identify with these attributes, and then create an image and personality of the vehicle for themselves, by also giving the vehicles personal human traits as well. The site also offers consumers the option of customizing their own vehicle to their preference and taste. Another reason the BMW site and films have increased sales for the company is that marketers have used dynamic features for the site. The site is portrayed as a type of one-stop shopping, because not only are BMW vehicles showcased, but an online magazine is on the site. If visitors to the site do not wish to make a purchase, they may opt to view the online magazine. Marketers embarked on an intense Integrated Marketing Campaign that gave rise to increased interest and traffic to the BMW site. Integrated Marketing Communication (IMC) is a strategy used to plan, execute and monitor communication about a brand in a consistent way. In addition, the IMC is aimed at attracting and retaining customers. The marketers of the BMW site had to have extensive knowledge of the brand, competitors and target audience. Through the IMC plan on the Internet, marketers were able to use a direct marketing channel to reach it target audience. In addition, the type of distribution channel that was employed by marketers on the BMW website was to perform the facilitating function, where contact was made with buyers, the needs of buyers were matched with the product and they had ideal communication strategies to ensure effective information transfer. The success of the BMW films also include the that fact that each vehicle is presented with the possible fuel consumption information as well as the model of the vehicle that would be most appropriate for the consumer based on the model chosen and the consumer’s lifestyle. When marketers cater to the needs of customers and a positive perception of the brand has been created, the success of the product is inevitable.

Week 10-(Chap.10)- BMW's Product Concepts

I've been talking about BMW company during this project,  and what really make it been successful is its products. BMW is a global brand that has established its product all around the world. To remind you about the BMW history, BMW started building plane motors like the BMW IV six cylinder engine which achieved a world record altitude of 9,760m (32,000 ft). Then it made their First BMW motorcycle, the R32 twin. In 1928 BMW starts car manufacture.  The first car was an Austin Seven built under license. After that BMW has take for consideration to build small and sport cars. In 2001 the launched the MINI. Today, BMW Product line is very large. Here I can show their product standards
BMW
The BMW brand stands for one thing: sheer driving pleasure. Sporting and dynamic performance combined with superb design and exclusive quality. 
MINI
The MINI brand wins hearts and turns heads. MINI is refreshingly different: extroverted, spontaneous and in every respect something out of the ordinary. Ideal for a society that was young, unconventional and ready for change, the MINI Classic became a cult vehicle in the sixties and seventies. Since then the brand has lost none of its youthful charm. MINI is part of a lifestyle that is cosmopolitan and confident, ready for everything.
Rolls–Royce Motor Cars
Rolls-Royce Motor Cars has been part of the BMW Group since 1998 and trading started on January 1, 2003. 
Rolls-Royce is one of the most fascinating and well-known brands in the world, the luxury motor car par excellence. For over 100 years, motor cars of the Rolls-Royce brand have stood for truly outstanding engineering, quality and reliability.
The BMW products are:
1 Series, 3 Series, 5 Series, 6 Series, 7 Series, x3, x5, x6,z4, BMW motorcycle, The Roll-Royce Motor Cars, and M Series(I am focus in this car during this project)

BMW M combines technology and expertise gained from BMW's motorsport activities and translates it for the road. BMW M launched its first road car (M1) in 1978 and the range has since expanded to include the M3 Coupé, Convertible and Saloon, the M5 Touring and Saloon, the M6 Coupé and Convertible and the Z4 M Roadster and Coupé.

Now watch this videos and you will see their concept in th

eir cars:

They also have Clothing,WOW!

Week 9- (Chap.18) -BMW's Sales Promotion and Personal Selling

BMW has many ways to market its products. From creating amazing advertisements to conducting an wonderful advertising campaign. They do everything in order to reach and remind the customers the great benefits of BMW's products. On the other hand, must important is the "Sales Promotion" they often use to create this behavior in customers. As a car manufacturer, BMW focuses on selling to retailers in a B2B condition. For that, they use training to teach retailers how to sell the latest models. In addition, BMW makes trade promotions where they show new product to several customers including retailers. Now, if you go to BMW Central store you will see that prices are less expensive. This is because there're few BMW Central store that distributes the merchandise  throughout the United States. Also, you can find more specials and services like the BMW Ultimate Service. "Only BMW offers a comprehensive suite of premium vehicle maintenance services for absolutely no cost: buy a BMW now and pay no maintenance costs for 4 years or 50,000 miles, whichever comes first". Now this statement just said a key word: " Absolutely free". 

Brand Maintenance Costs*

Acura$970.75

Audi$967.17

BMW$0

Cadillac$744.26

Infiniti$649.40

Jaguar$1112.53

LandRover$233.52

Lexus$974.22

Lincoln$922.14

Mercedes-Benz$1086.60

Porsche$1032.14

Saab$385.29

Volvo$918.93

This extra value or premium service give the customer a great deal when purchasing a BMW in one their central store. My experience is my BMW store visit was that they have a place (part assembling line & tune up and maintenance)  where you can take your BMW and they will receive and fix for you.  

Source:

2007 IntelliChoice, Inc., www.intellichoice.com. Maintenance figures shown based on 4 Years/50,000 Miles, excluding tire replacement costs.