bmwi3 f prst part 1 (1)

Direct interactive and digital marketing (DIDM)BMWi3 Yearly plan presentation

UOG STUDENT ID: 000792751 000799959 000799915 000792708 000792732

SUBJECT TITLE : DIDM (MARK 1149)INTAKE : FEB’13SUBJECT TUTOR : MR. PRADEEP SUBJECT LEADER : MR. MJ HOUSDEN

IntroductionAccording to Smith BMW has been referred as the world most reputable companies

(Smith, 2012)

Research problemCreate a marketing plan to generate 5,000 leads with the aim of creating 500 sales with the use of  £400,000.

ObjectivesGenerate 1000 sales instead of 500 sales which has been set by the department.Retain and migrating current customer Borrow famous events to create awareness towards new product (e.g. Olympic)

SWOT analysis (comparison result)Strength Weaknesses

Good reputation (high)Environment friendly vehiclesQuality productsHighly skilled workforceCorporate Social Responsibility (CSR)Strong brand presence in China

High cost structureWeak brand portfolioPerception of high pricesToo few acquisitions and strategic partnerships

Opportunities ThreatsIncreasing fuel pricesPositive attitude towards “green” vehiclesExpand brand portfolioChanging customer needs

Intense competitionRising raw material pricesDecreasing fuel pricesGrowing euro exchange rate

Market Analysis

Title: Youtube Views

BMWi3 Go Green

BMWi3 was the first one to create a car which are the most fuel efficient. (50%)

ECO friendly (BMWI3)

Comparison of fuel efficiency and costs for electric cars

Brand equity

Brand equity is important for the purpose of generating organization reputation

(Chris and Stephanie, 2012)

Brand equity

Aaker, 1996. The model of brand equity.

Brand personality

Source: Aaker, 1996. The diagram of brand personality

Market EntryAccording to Open government licence or GOV.UK

UK (United Kingdom) its government supportUltra low commission vehicles

Provide £900 million Office for low emission vehicles (Position)Contribute to economic growthHelp reduce

Green house effectAir pollution

(sources: gov.uk)

Olympic sponsorship

Olympic sponsorship

PESTEL analysis

Source: Elearn, 2014.

Political factorsEnforcement of new laws (CO2 emission)

Change in EU legislation (life time of vehicle) Political stability (emerging markets) Russia, China, and Brazil (politic that impact BMW) With above countries (political instability)

Have negative impact Consumer spending patterns Company investments (risks)

Economical factorsImpacts of economical factors on BMW GDP fluctuations in EU countries

Last few years (direct effect consumer spending) (affects BMW)

Income level of citizens It may directly influences the purchasing power and behaviour of customersInflation rate Once the increasing of salary is slower than inflation

The expansion of demand will be easierThe subsidiaries of government

Need get support from government otherwise will affect the decision making of consumers

Social factorsSocial tendencies in local and global scales market

Require to be taken in strategic decision-making (BMW)For e.g. changing family patterns Such as single parents Impact consumer spending patterns

Ageing population in European markets Rising life expectancy (developed countries)Changing values, Changing consumer attitudes (savings, spending etc.)

Technological factorsImpacts of technological factors for BMW

Increasing awareness of green marketing Increasing levels of demand for alternative fuelsConcept of driverless car (realisation) Development of internet-enabled technologies (automobile industry)

Legal factorsRules and regulations is compulsory (BMW)

The process of business and activities in :Local regionalGovernmental and international levelThe changing of above rules and regulations (huge impact in BMW)In another way,

Patterns and copyrights is significant legal issuesIt is a must to be approach by BMW in appropriate way

Ecological factorsEcological impact on BMW includes the level of concern by the consumer towards go green productIncreasing levels on the effect of non government environmental organizationThe changing in waste management practice

BMWi3

• This is how BMWi3 design like.

Diffusion theory

Diffusion theory

BCG matrix

• Source: Checkzis, 2013

BCG Matrix

•BMW 3 Series•BMW 7 Series•BMW 1 Series•BMW 5 Series•BMW X Series

•BMW 6 Series

•BMW i3 •BMW 3 Series•BMW 7 Series•BMW 1 Series

Ansoff matrix

• Source: Blatchford, 2013.

Current

customer

Potential

customer

Segmentation, Targeting, and Positioning process

Segmentation (BMWi3)UK country

Those who are environmental friendly concern

Urban areas (City)London (more than 8million population)BirminghamGlasgow

Target market (BMWi3)Primary target market

Working adult (Male and Female)Above 24 years oldMiddle, Middle upper and Upper (Income)

Secondary target marketRetiree (Saving)

Might bought for its children.

Segmentation, Targeting, and Positioning process

Positioning (BMW i3)

Positioning map (Previous)

Positioning map (Current)

Positioning map (Future)

Event management (Campaign)

Venue: Stadium XYZDates & duration:

Expected audiences: 5,000Title:

“Go green guarantee future”

Test Drive Enhances the interest of prospectsAble to get immediate feedback from audiencePerform the strength parts to prospects Having the opportunity to explainProspect feels satisfy on itBenefits for both parties Win-win philosophy

SMART (BMW) Specific

Introduce new product also known as BMWi3 (create awareness and reduce fuel consumption)

To reach more than 500 sales from 5,000 leads (aim to reach 1000)

SMART (BMW)MeasurableThe objectives of BMWi3 within this year is measurable.

BMWi3 will use its strong points to achieve the objective (go green awareness)Due to the increasing environmental friendly awareness

BMW are able to measure the demand for BMWi3 electric car

There is a proven research for the demand of go green product are higher from year to year

Demand for go green product

SMART (BMW)Achievable1st year: 400k (Given budget)

1st year(2015): Create awareness and conduct promotion by focus on promotion on ATL, BTL, TTL (mostly on TTL) (which are generally focused on ATL and BTL)

Targeted both young and old generation

SMART (BMW)Realistic

Have the ability to conduct the plan with the given budget

BMW having capital resources, man power, specialist workers, experience, appropriate instrument and skilled labour to make objective become actualCooperation with government

Government support on eco-friendly carSome countries taxation has been excluded

New implemented rules and regulation

SMART (TIME)

FOR BMW

JAN FEB MAR APR MAY JUN JULY AUG SEPT OCT NOV DEC

Identifying the problemAnalysing the marketPlan for market entry strategyRe-evaluate the plan

Conducting (plan) promotion, events (eg: test drive )Calculating sales and find out next year objectivePlan for 2nd next year

Integrated marketing communication

AIDCA model (BMWi3)

• Source: Comindwork, 2014.

AIDCA modelAttention

By using the previous IMC tools to generate and create the attention of the public towards BMWi3 Tagline (Go green, guarantee future)With an environmental friendly Vehicle Reduce emission (Pollution)

Reduce fuel consumption (Cost saving)

AIDCA model

InterestBMWi3 (Free Ipad)Environmental friendly (Save fuel)

Environmental concern (Public)

AIDCA modelDesire

Once the customer has interest Product

Desired can be createImportance of environmentCost of fuelGovernment support (reduce tax)

AIDCA model: Conviction/commitment and Action

Convey about the benefits purchasing the car now

Such as the freebies they can get when they purchase now Instalments can be madeNo front payment required for first 1000 customers

Thus, due to the previous reasonProspect to take “Action”

Purchasing BMWI3

Decision making

Source: C-marketing, 2012.

Media

Current promotions of BMWi3 at social media (Twitter)

Current promotions of BMWi3 at social media (Facebook)

MyCityWayFor the purpose of increasing urban mobility MyCityWay has been used as an apps to promote BMWi3.

The ladder of loyalty

Source: Murray & Neil Raphel, 1996

The ladder of loyalty

Source: Neil and Murray Raphel, 2014.

Customer- Brand relationship model

Source: Walter, 2013.

Customer relationship management

Source: Friesner, 2014.

SERVQUAL(BMW after sales service)

Technology Acceptance Model

The perception of the consumer for the facilitates for provided by BMWi3 towards the ease when consuming the product itself

The perception of the consumer on BMWi3 benefits towards them such as eco friendly, save fuel, and others The attitude

of the consumer toward BMWi3 benefits

AwarenessPromotionAll of the IMC tools that has been used

Model of continuous improvement

Kaizen model

BUDGET (Yearly) AMOUNT TotalAdvertising methodA) BillboardB) Newspaper & magazine

£36,000£4,000 £40,000

Public Relation methodA) Car exhibitionB) Olympic sponsorshipC) Campaign

£10,000£70,000£60,000 £140,000

Sales Promotion methodA) Expenses for Freebies £50,000 £50,000Direct Marketing methodA) Commissions for salesperson(Group)

£85,000

£85,000

Personal Selling methodA) Commissions for salesperson (Individual)

£50,000

£50,000

E-marketing methodA) BloggingB) Social media

(facebook, tweeter, instagram, linked in and etc.

£5,000£30,000

£35,000Sum: £400,000