Week 4 (Chap.4)- BMW's Marketing Enviroment

The BMW Group regularly undertakes research into its customers' profiles looking at demographic criteria, such as age and sex, lifestyle, their views on motoring and the way in which they use their cars. The information is used across all areas of the business, from the design and development of the cars themselves, to the way BMW advertises its brands.

One thing all BMW customers have in common is their appreciation of driving fun and sporty, yet elegantly designed cars.

Within the BMW product range, we see various differences in their customers' profiles. For example, their  female customers tend to prefer open driving, reflected in a preference for the BMW 3 Series Convertible and BMW Z4.

The spaciousness and interior versatility of the BMW X Models, X3 and X5, attract modern families with children in their households (50%-60% having at least one child).

Customers of  their 3 Series and 5 Series Touring models are characterized by an active lifestyle, with an exceptionally high interest in outdoor activities, such as water sports, cycling and skiing.

Together with the Z4, the BMW 1 series shows the highest share of urban customers aged 39 years or younger (40%). This truly makes the BMW 1 series, not only in terms of its launch date, a young model in the BMW portfolio. 

The BMW Group faces few majors competitors like: Mercedes Benz, Audi, Jaguar, Porsche, and Lexus.

Examples of Corporate Irresponsibility

Decisions made by businesses have far-reaching effects on society. Generally, most of the companies had made mistakes even though they are big corporation. For example, The Warner-Lambert Company has manufactured and distributed Listerine antiseptic mouthwash since 1879. Its formula has never changed. Ever since Listerine's introduction, the company has represented the products as being beneficial in preventing and curing colds and sore throats. Direct advertising of these claims to consumers began in 1921. Warner-Lambert spent millions of dollars annually advertising these claims in print media and  in television commercials.

After 100 years of Warner- Lambert's making such as claims, the Federal Trade Commission (FTC) filed a complaint against the company, alleging that it had engaged in false advertising violation of federal law. For months of hearings were held before an administrative law judge that produced an evidentiary record of more  than 4,000 pages of documents from 46  witnesses. After examining the evidence, the FTC issued an opinion which held  that the company's representation that Listerine prevented and cured colds and sore throats were false. The U.S court of Appeals affirmed.

Another one is the Johns- Manville Corporation which was a profitable company that made a variety of building and other products. It was a major producer of asbestos, which was used for insulation in buildings and for a variety of other uses. It has been medically proven that excessive exposure to asbestos cause asbestosis, a fatal lung disease. Thousands of employees of the company and consumers who were exposed to asbestos and contracted this fatal disease sued the company for damages. Eventually, the lawsuits were being filed at a rate of more than 400 per week.

In response to the claims, Johns-Manville Corporation filed for reorganization bankruptcy. It argued that if it did not, and otherwise viable company that provided thousand of jobs and served a useful purpose in this country would be destroyed and that without the declaration of bankruptcy , a few of the plaintiffs who first files their lawsuits would win awards of hundreds of millions of dollars, leaving nothing for protection, the company was restructured to survive. As part money to a fund to pay future claimants. the fund was not large enough to pay all injured persons the full amount of their claims.

List of country origin of all clothes I wore today

Shirt - H&M - Made in China
Jeans- Levi - Made in USA
Belt- Hugo Boss-Made in USA
Shoes- American Eagle-Made in China
Socks- Hanes- Made in USA
Boxes- Hugo Boss-Made in USA
Eyewear (glasses)- A/X- Made in USA
Fragrance- Chrome Legend By Azarro- Made in France

Week 3 (Chap. 3)- BMW's Ethics and Social Responsabilty

As a globally active automobile manufacturer, BMW Group takes responsibility for the environment, as well as for the social interests of employees and society as a whole. BMW Group has been listed in the Dow Jones Sustainability Index since 1999.  

The BMW Group is a signatory of the UN Global Compact. The company’s approach to sustainability is guided by this commitment. The Global Compact is the world’s largest global corporate responsibility initiative. It provides a frame-work for businesses that are committed to aligning their operations and strategies with ten universally accepted principles in the areas of human rights, labour standards, the environment and anti-corruption.

BMW Group believes that sustainable mobility must support quality of life and economic prosperity. At the same time, the potential damage to the environment associated with individual mobility must be kept to a minimum.

In recognition of its company strategy orientated to sustainability, BMW Group was awarded the 2006 Excellence Award by the European Foundation for Quality Management.

BMW Group has integrated sustainable development into all areas of the company, covering its social, environmental and economic responsibilities.

The areas in which BMW Group is working to ensure sustainability are shown in the following diagram:

BMW Group is committed to sustainability in many ways: from its responsibility to the environment and reducing CO 2 emissions, to looking after the needs of its employees and the societies in which the company operates.

Environmental management systems at plants

   All BMW production sites adhere to uniform environmental standards. BMW Group manufacturing facilities are either certified according to the international environmental management system ISO14001 or or in full compliance with the European Eco-Management and Audit Scheme (EMAS II). BMW Group was the first major automobile producer to achieve this.

EfficientDynamics

  As demands on the world's energy resources continue to rise, it is increasingly important to create cars that are more efficient. For this reason, BMW has introduced its EfficientDynamics programme.

BMW EfficientDynamics is a range of related technologies that reduce fuel consumption and emissions, while at the same time improving performance. The programme is at the heart of BMW's pledge to reduce its average CO 2 emissions in accordance with the voluntary commitment agreed by the European Car Manufacturers' Association (ACEA). In line with the voluntary commitment, BMW is on target to reduce emissions across its vehicle range to 140g/km (a reduction of approximately 25% compared to 1998) by 2008. In achieving this, BMW is helping to shape the future of driving by pioneering the ultra-efficient engines of tomorrow.

Clear Energy     The H2ague Project is committed to a number of social projects worldwide, including The H2ague Project, which aims to support a renewable hydrogen economy as a long term solution to world energy and increasing environmental problems. Mobility needs energy. To make sure that energy continues to be available in the future too, the BMW Group is committed to developing innovative solutions for tomorrow's mobility –and this will also safeguard the future of sheer driving pleasure. Road Safety   As an automotive company, BMW Group is concerned with the safety of all travellers and for this reason, one of the key aspects of the company's social commitment for many years has been its involvement in the promotion of traffic safety projects all over the world. BMW's Social Responsabilty spendings.

There are 70 full time employees working in the environmental affairs division of BMW Group. At all locations, environmental management systems that far exceed legal requirements are in place to ensure environmental protection at the workplace.

In 1999 BMW Group was the first carmaker in the world to uniformly certify all its production sites to international environmental management standards.

In total, BMW Group has invested around €20.7 million (Germany only) in 2006 into product related environmental protection.

How BMW is committed to the efforts of reducing CO2 emissions?

The automotive sector has a good record in reducing carbon dioxide emissions. Government figures indicate that between 1990 and 2000 the sector reduced carbon emissions from production facilities by 27 per cent, despite significant increases in output.

The recent reductions in CO2 emissions from road transport have come despite growth in the vehicle numbers and distance travelled. This follows significant improvements in vehicle design and technologies used. The latest available data indicates that average CO2 emissions from new passenger cars in the UK have fallen by 9.7 percent between 1997 and 2004.

The motor industry is committed not only to producing cleaner vehicles, but also to making sure that the whole manufacturing process is as clean and green as possible. New vehicles now use less fuel than ever before as manufacturers make them lighter and more efficient. BMW is a world leader in designing cars for ease of manufacture and assembly. Modern cars are also more recyclable as they are designed to be taken apart and used again more easily.

In addition to the actual products, the automotive sector is also making huge strides in cleaner working practices at plants by introducing new technologies such as cleaner water-based paint shops.

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Week 2 (Chap. 2)-The BMW Group's Strategic Planning for Competitive Advantage

The BMW Group has set course for a successful future with its strategic realignment. “We will consistently align the BMW Group to achieve profitability and increase value over the long term,” said Norbert Reithofer, Chairman of the Board of Management of BMW. This company is focused on its production, and the desire to offer an "ultimate driving experience" to drivers.

The new strategy focuses on increasing value. Also, it focuses on ensuring the company's long-term success and safeguarding its independence. How? Its return on sales is projected to target 8% to 10% in the automobile segment. To be more specific, the BMW Group has set ambitious interim targets for the next fives years: Automobile retail is supposed to rise to more than 1.8 million vehicles by 2012. During this time the company plans to increase in the motorcycle business by 50 % to 150,000 units per annum. The BMW Group's strategic targets for 2020 are equally ambitious: the company intends to increase retail in the automobile business to clearly more than two million vehicles.

The BMW Group will launch a comprehensive efficiency program that will encompass all of the company's divisions and will apply to both performance and costs. The new program is based on principle of EfficientDynamics, a strategy that is successfully applied to the company's automobiles as well: More output for less input.

In addition, the BMW Group has adopted a range of measures that will help achieve significant progress in terms of costs. Besides putting all costs to the test, the company will continue to standardized processes. Further targets include a reduction in cost, capital expenditure and capital employed by vehicle in development, production, sales, and administration. As result, the company aims for a rise in productivity of at least 5 % a year.

The BMW Group expects to be able to achieve the growth planned for the period until 2012 with roughly the same level of personnel as today. The BMW Group will continue its product initiative, making use of modulars systems for all new models in order to increase synergy effects: X1, Grand Turismo, MINI SAV, Rolls- Royce Coupe will be launch by 2012. The BMW Group will continue to invest heavily in future technologies with a view to developing entirely new individual mobility solutions, thus guaranteeing the company's innovation leadership for the next decade as well. With the EfficientDynamics development strategy, the BMW Group has gained a significant edge over competitors, for example reducing carbon emissions." I am firmly convinced that this strategy will lead us to continued business success." Reithofer stated. 

Source: Norbert Reithofer annual strategic speech for 2009

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Week 1( Chap.1)- Overview of Marketing (BMW's History and Mission Statement)

The BMW Company has its starts in 1916 in Munich, the capital of Bavaria, Germany. First, in 1913 Karl Rapp founded a company named Rapp Motorwerke. In the next two years (1916), Rapp resigned from the company. As a result, BMW was renamed as Bayerische Flugzeug-Werke (BFW). It was in 1917 that the Bayerishe Motoren Werke(or in English the Bavarian Motor Works) changed to what we know today as BMW, the company that initially concentrated on the development and production of aircraft engines during World War I, building a reputation for reliability and excellence. In 1923 BMW built its first motorcycle and in 1928 the company's success story as an automobile manufacturer began with the acquisition of the Eisenach vehicle factory. BMW’s first motorcar was a version of the Austin Seven built under license. The famous white and blue symbol of BMW stems from the company's origins as airplane engine manufacturers. Many aircraft were painted in regional colors and those of the Bavarian Luftwaffe were the Bayern white and blue. It is said that the pilot's view through the propeller was one of white and blue alternating segments.

Through the years this image has become stylized into solid quarters of blue and white to declare the identity of today's BMW cars and motorcycles. Since the end of the 1970s BMW has worked to create a standardised international image in terms of statement and presentation so that today whenever people encounter the company's symbols they recognize BMW.

"The mission statement up to the year 2020 is clearly defined: the BMW Group is the world's leading provider of premium products and premium services for individual mobility." 

BMW Group is committed to a number of social projects worldwide, including the H2ague Project, which aims to support a renewable hydrogen economy as long term solution to world energy and increasing environmental problems. Finally, BMW has made a commitment to ensure that its business activities conform to UN guidelines and to plan and implement sustainable growth, respect human rights and adhere to social and environmental standards.

Source(s) http://www.bmweducation.co.uk