Case Study Bmw

COMPANY PROFILE

Bavarian Motor Works (BMW) was formed in 1916 after two small aircraft engine manufacturers merged. In 1923, BMW began to build motorcycles, then its first car in 1928. BMW is now the only multi-brand automaker that utilizes a pure, premium brand strategy .. The objective behind this strategy is to generate higher income per vehicle on the basis of products with a high intrinsic value and an strong brand image.

BMW’s white-and-blue logo is recognizable worldwide, and recalls the company’s start as an aircraft engine manufacturer.

It symbolizes a pilot’s

view through a propeller as

alternating white and blue segments.

BMW ranked in the top 20 most

recognized global brands.

Today, the BMW Group consists of three primary business segments. The BMW Automobiles Segment develops, manufactures, assembles, and sells automobiles. It includes off-road vehicles, spare parts, and accessories.

The BMW Motorcycle Segment develops, manufactures, assembles, and sells motorcycles, and also includes spare parts and accessories.

The Financial Services Segment focuses on leasing automobiles and financing credit for customers and dealers.

The BMW Automobiles Segment sells several lines of automobiles. The 3-series, 5-series, and 7-series span the low-to-high ends of the luxury automobile market, respectively. Within the last five to ten years, the newer additions to the product line included the popular Z3 roadster and coupe, the M roadster and coupe, and the X5 Sports Activity Vehicle, all of which are exclusively manufactured in Spartanburg, South Carolina.

BMW of North America, LLC has been present in the United States since 1975.. The BMW Group in the United States has grown to include marketing, sales, and financial service organizations for the BMW brand, the MINI brand, and the Rolls-Royce brand of motor vehicles; Designworks/USA, an industrial design firm in California; a technology office in Silicon Valley and various other operations throughout the country. BMW Manufacturing Co., LLC in South Carolina is part of BMW Group's global manufacturing network. In the U.S. there are the following retail distribution networks as of 2005 :

• 340 BMW passenger car centers,

• 335 BMW Sports Activity Vehicle centers,

• 148 BMW motorcycle retailers,

• 80 MINI passenger car dealers,

• 25 Rolls-Royce Motor Car dealers.

BMW (US) Holding Corp., the BMW Group's sales headquarters for North, Central and South America, is located in Woodcliff Lake, New Jersey.

CUSTOMERS

KEY COMPETITORS

BMW’s main competitor in the premium car segment in USA and Europe is DaimlerChrysler’s Mercedes Car Group. The chart below lists other main competitors of BMW by geography.

The principal competitors of BMW’s ultra premium Rolls-Royce brand are DaimlerChrysler’s Maybach brand and Bentley sedans.

BMW Z3 LAUNCH -CHALLENGES

In 1992 A Special Project Group was founded to lead new product development initiatives for BMW. This group was the creative brainchild behind the overarching strategy of brand repositioning for the company. Consistent with this strategy BMW wanted to expand into youthful affluent market segments. In order to achieve this transformation the BMW’s design team was inspired to create the “ultimate driving machine” that appeal to consumer.

The first Z3 rolled off the assembly line on September 20, 1995.