The company produces and markets a The company produces and markets a varied range of higher end sporty cars and varied range of higher end sporty cars and motorcyclesmotorcycles

It also operates an aircraft engine division It also operates an aircraft engine division under the brand name of Rolls Royce.under the brand name of Rolls Royce.

““We define what premium means today.We define what premium means today.And we will also define the future of premium And we will also define the future of premium

mobility”mobility”

Bavarian Flag

19232000’s

HistoryAfter World War I, BMW was forced to cease aircraft (engine) production by the terms of the Versailes Armistice Treaty.

The company shifted to motorcycle production in 1923 once the restrictions of the treaty started to be lifted, followed by automobiles in 1928–29.

By 1959 the automotive division of BMW was in financial difficulties and a shareholders meeting was held to decide whether to go into liquidation or find a

way of carrying on

It was decided to carry on and to try to cash in on the current economy car boom enjoyed so

successfully by some of Germany's ex-aircraft manufacturers such as

Messerschmitt and Heinkel.

In 1992, BMW acquired a large stake in California based Industrial design studio DesignworksUSA, which they fully acquired in 1995. In 1994, BMW bought the British ROVER GROUP

By 2000, Rover was making huge lossesBMW decided to sell the combine. The MG and Rover brands were sold to the Phoenix Consortium to form MG Rover, while Land Rover was taken over by Ford. BMW, meanwhile, retained the rights to build the new MINI, which was launched in 2001

FoundedFounded 21 July 191721 July 1917FounderFounder Franz Josef PoppFranz Josef PoppHeadquartersHeadquarters Munich, GermanyMunich, Germany

CEO Dr. Norbert Reithofer.CEO Dr. Norbert Reithofer.

About Manufacturing:About Manufacturing:We sell our vehicles in 140 countries.We sell our vehicles in 140 countries.We produce them at 25 locations in 14 We produce them at 25 locations in 14

different countries.different countries.

Europe is the largest sales market for our Europe is the largest sales market for our company.company.

Plants of BMWPlants of BMWMunich PlantMunich Plant

Making the Z8Making the Z8 BMW’s original plant is also based in MunichBMW’s original plant is also based in Munich

Dingolfing PlantDingolfing Plant More than 1,200 cars leave the plant every dayMore than 1,200 cars leave the plant every day Largest car production plant within the BMW GroupLargest car production plant within the BMW GroupProduction of the most outstanding cars in small, exclusive series- Production of the most outstanding cars in small, exclusive series- BMW M5BMW M5

Regensburg PlantRegensburg Plant Builds approximately 220,000 3 Series each year.Builds approximately 220,000 3 Series each year. Delivers body components for the 3 Series to BMW’s other car Delivers body components for the 3 Series to BMW’s other car production plantsproduction plants

Landshut PlantLandshut Plant Lightweight automotive construction and the production of car Lightweight automotive construction and the production of car

componentscomponents

Wackersdorf Innovation PartWackersdorf Innovation Part Acting as an internal supplier together with 11 external suppliers.Acting as an internal supplier together with 11 external suppliers.

Eisenach PlantEisenach Plant Famous for its great tradition in the world of German automobilesFamous for its great tradition in the world of German automobiles

Leipzig/Halle PlantLeipzig/Halle Plant Build approximately 155,000 BMWs a year after the initial ramp-up Build approximately 155,000 BMWs a year after the initial ramp-up

phasephase

Berlin PlantBerlin Plant Only motorcycle plant in the world, associates build the entire range Only motorcycle plant in the world, associates build the entire range

of BMW motorcycles for the market.of BMW motorcycles for the market.

Steyr PlanSteyr Plan

Responsible for the production of four- and six-cylinder Responsible for the production of four- and six-cylinder diesel and gasoline enginediesel and gasoline engine

Hams Hall PlantHams Hall Plant Builds gasoline engines between 1.6 and 2.0 litersBuilds gasoline engines between 1.6 and 2.0 liters

Oxford PlantOxford Plant Only car production plant responsible for production of the Only car production plant responsible for production of the

new MINInew MINI Spartanburg PlantSpartanburg Plant

Builds the BMW X5, the world’s first sports activity vehicleBuilds the BMW X5, the world’s first sports activity vehicle Rosslyn PlantRosslyn Plant

Builds more than 40,000 BMW 3 Series a yearBuilds more than 40,000 BMW 3 Series a year Goodwood PlantGoodwood Plant

Rolls-Royce cars will be built at GoodwoodRolls-Royce cars will be built at Goodwood

Sales (BMW-brand)Vehicles sold in all markets according to BMW's annual reports.

Year Total2000 822,181

2001 880,677

2002 913,225

2003 928,151

2004 1,023,583

2005 1,126,768

2006 1,185,088

2007 1,276,793

2008 1,202,239

2009 1,068,770

SWOT Analysis of BMW:SWOT Analysis of BMW:Strength Weakness

Strong Brand Image

 Perception of German

Engineering and Quality

BMW makes some of the best

engines in the world.

Strong commitment to R&D.

Established presence and

Economies of Scale in the big car

markets

Promising presence in growing

markets like India, China and Russia.

Because of its Germany Heavy

base, fixed costs and labour costs are

very high.

Productivity though improved, still

lags behind its Japanese rivals like

Lexus.

Less than perfect response to its

new design direction.

Opportunity Threats

Strong growth of China and India

 Consumer trend towards cleaner

and more fuel efficient high

performance engines which is a BMW

speciality.

The percentage of rich people is

growing worldwide. (Straits Times

Article)

Threat of a long recession in the USA

and Europe

Strengthening of the Euro against the

US Dollar and other currencies can

undercut its top line and affect

profitability.

Fresh and aggressive new direction

at Mercedes Benz

4 P’s of BMW4 P’s of BMW The 1 series, 7 series and the Z4 The 1 series, 7 series and the Z4

roadster are not doing too well. The roadster are not doing too well. The company has two star performers in company has two star performers in the form of the X5 SUV and the X3 the form of the X5 SUV and the X3 mini SUV.mini SUV.

The product list of BMW goes on & onThe product list of BMW goes on & on

PricePrice When compared with its direct competition When compared with its direct competition

like Mercedes Benz, Audi and Lexus etc, like Mercedes Benz, Audi and Lexus etc, BMW is competitively prices as all of these BMW is competitively prices as all of these brands position their brands at more or brands position their brands at more or less the same price in all the segments.less the same price in all the segments.

PlacePlace Part of BMW’s success comes from the unique way in which it gets Part of BMW’s success comes from the unique way in which it gets

cars from the factory to the consumer.cars from the factory to the consumer. Other automakers mass produce vehicles and ship them to local dealerships Other automakers mass produce vehicles and ship them to local dealerships

where they sit until a buyer comes along but BMW’s unique ordering system where they sit until a buyer comes along but BMW’s unique ordering system reverses the process, allowing the customer to order a vehicle before it even reverses the process, allowing the customer to order a vehicle before it even exists.exists.

Customers can visit BMW showrooms to custom order vehicles, Customers can visit BMW showrooms to custom order vehicles, selecting from a broad range of customizable features.selecting from a broad range of customizable features. Once an order is placed, BMW’s manufacturing facilities go to work. While it Once an order is placed, BMW’s manufacturing facilities go to work. While it

would be reasonable to suppose that BMW’s process significantly slows vehicle would be reasonable to suppose that BMW’s process significantly slows vehicle production and delivery time.production and delivery time.

BMW has earned its reputation for producing the highest quality car BMW has earned its reputation for producing the highest quality car with the highest level of customer service. It leads its competitors with the highest level of customer service. It leads its competitors when it comes to these areas.when it comes to these areas.

PromotionPromotion BMW pursues a bold and aggressive marketing campaign that sometimes directly BMW pursues a bold and aggressive marketing campaign that sometimes directly

attacks competitors.attacks competitors. BMW has embarked on a global advertising campaign. What differentiates this BMW has embarked on a global advertising campaign. What differentiates this

promotion is the fact that it remains consistent throughout the company’s international promotion is the fact that it remains consistent throughout the company’s international campaign across the European, USA, Asia, South Africa and the Middle East markets. campaign across the European, USA, Asia, South Africa and the Middle East markets. In over 15 countries there will be:In over 15 countries there will be:

TV spotsTV spots Print advertisementsPrint advertisements Mega-postersMega-posters Radio spotsRadio spots EventsEvents

In all three James Bond films BMW, MGM and EON In all three James Bond films BMW, MGM and EON Productions Ltd worked together on a cross promotion Productions Ltd worked together on a cross promotion project. This was accomplished worldwide with TV project. This was accomplished worldwide with TV commercials, print ads as well as displays in BMW dealer commercials, print ads as well as displays in BMW dealer showrooms.showrooms.

Its “Ultimate Driving Machine” campaign has been one of Its “Ultimate Driving Machine” campaign has been one of the most enduring and loved campaign in the entire the most enduring and loved campaign in the entire Automobile Industry HistoryAutomobile Industry History

Brand ValueBrand Value

Four core values, which are:Four core values, which are:   TechnologyTechnology   QualityQuality   PerformancePerformance   ExclusivityExclusivityBMW has maintained these core values since the BMW has maintained these core values since the

company’s inception.company’s inception.

Segmentation and TargetSegmentation and Target BMW does not believe in a Geographical segmentation BMW does not believe in a Geographical segmentation

of its market. Instead BMW segments its market of its market. Instead BMW segments its market primarily on a Psychographic and Demographic primarily on a Psychographic and Demographic basis. basis. Societal values are changing rapidly.Societal values are changing rapidly.

PositioningPositioning

BMW has positioned itself as a luxury car BMW has positioned itself as a luxury car maker that offers oodles of driving maker that offers oodles of driving pleasure thrown in along with the pleasure thrown in along with the

luxuryluxury

Porters 5 force analysisPorters 5 force analysis Threat of New Entrants - Very LowThreat of New Entrants - Very Low

In order to enter the automotive market a huge amount of capital is In order to enter the automotive market a huge amount of capital is required. In addition, an entering firm would need to have a required. In addition, an entering firm would need to have a tremendous amount of tacit and explicit knowledge to design and tremendous amount of tacit and explicit knowledge to design and manufacture products.manufacture products.

Threat of Substitutes - MediumThreat of Substitutes - Medium Available substitutes include public transportation such as buses, Available substitutes include public transportation such as buses,

trains, boats, and aircraft. In addition, consumers can use other trains, boats, and aircraft. In addition, consumers can use other conventional means of transportation such as bicycling or walking.conventional means of transportation such as bicycling or walking.

Power of Suppliers – MediumPower of Suppliers – Medium In this market and therefore, the majority of suppliers to major In this market and therefore, the majority of suppliers to major

automotive makers are medium to large businesses. As a result they automotive makers are medium to large businesses. As a result they have some flex in determining product pricing, delivery, and have some flex in determining product pricing, delivery, and distribution.distribution.

Power of Buyers - MediumPower of Buyers - Medium While buyers are individuals and are not grouped together, While buyers are individuals and are not grouped together,

they still have an immense amount of information available to they still have an immense amount of information available to them regarding the pricing and cost to manufacture a BMW. them regarding the pricing and cost to manufacture a BMW. As a result, buyers do have some leverage in being able to As a result, buyers do have some leverage in being able to negotiate a purchasing price from BMW.negotiate a purchasing price from BMW.

Competitive Rivalry - Extremely HighCompetitive Rivalry - Extremely High Any competitor in this market is generally a global company Any competitor in this market is generally a global company

with billions of dollars in assets and can compete on any level with billions of dollars in assets and can compete on any level that BMW can. that BMW can.

5 C’s5 C’s ConvenienceConvenience

BMW doesn’t have online purchase systems but due to the high BMW doesn’t have online purchase systems but due to the high price of their products BUT they have an online test drive price of their products BUT they have an online test drive appointment system for the 7series using which doesn’t need to appointment system for the 7series using which doesn’t need to go to the store to test drive the car, hence making it more go to the store to test drive the car, hence making it more convenient.convenient.

CommunicationCommunication BMW has 24hour hotline numbers to help in communication BMW has 24hour hotline numbers to help in communication

with the company exclusively for certain model customers. They with the company exclusively for certain model customers. They have a website for online communication . They believe in have a website for online communication . They believe in listening to customers when they are “with” you.listening to customers when they are “with” you.

Customer solutionCustomer solution

BMW strives hard to find out what their customers needs are and BMW strives hard to find out what their customers needs are and works hard towards fulfilling them .They believe that it is important to works hard towards fulfilling them .They believe that it is important to satisfy customer needs to keep customers happy and satisfied.satisfy customer needs to keep customers happy and satisfied.

Customer costCustomer cost

BMW also realizes that all the costs taken to design their cars are BMW also realizes that all the costs taken to design their cars are also to be included in the cost of the car. They have retailers selling also to be included in the cost of the car. They have retailers selling their cars in different regions/countries at different prices based on their cars in different regions/countries at different prices based on the acceptable customer cost for that region.the acceptable customer cost for that region.

Mr. Charles Stewart Rolls and Sir. Henry RoyceMr. Charles Stewart Rolls and Sir. Henry Royce

ROLLS ROYCE PLC-1906ROLLS ROYCE PLC-1906

Holding company to ROLLS ROYCE PLC 2003Holding company to ROLLS ROYCE PLC 2003

AeroenginesAeroengines

ROLLS ROYCE LIMITED ROLLS ROYCE LIMITED

ROLLS ROYCE MOTORSROLLS ROYCE MOTORS

1998 VW1998 VW

1998 the name and logo was retained by BMW1998 the name and logo was retained by BMW

2002 Complete subsidary to BMW2002 Complete subsidary to BMW

19591959

British Motor corporationsBritish Motor corporations

MORRIS MINI MANOR & AUSTIN SEVENMORRIS MINI MANOR & AUSTIN SEVEN

Supplied Sweden army rifles

Jumped to motorcycles

1920 engine manufacturing factory

July 2007 BMW bought for 93 million

€

K seriesK seriesBMW globally launched a radically BMW globally launched a radically

redesigned K Series motorcycle, the redesigned K Series motorcycle, the K1200S.K1200S.

Designed as a Super Sport motorcycleDesigned as a Super Sport motorcycle

R seriesR seriesF seriesF seriesG seriesG seriesHP2 SeriesHP2 Series

BMW bought Swiss team Sauber in June BMW bought Swiss team Sauber in June 2005 to form the BMW Sauber F1 Team.2005 to form the BMW Sauber F1 Team.

Debut : 2006 Bahrain Grand PrixDebut : 2006 Bahrain Grand Prix

BMW was an engine supplier to Williams, BMW was an engine supplier to Williams,

Benetton, Brabham, and Arrows. Notable Benetton, Brabham, and Arrows. Notable

drivers who have started their Formula drivers who have started their Formula

One careers with BMW include Jenson One careers with BMW include Jenson

Button, Juan Pablo Montoya, Robert Button, Juan Pablo Montoya, Robert

Kubica and Sebastian Vettel.Kubica and Sebastian Vettel.

BMW and Toyota Sign BMW and Toyota Sign Agreement:Agreement:

Aimed at developing new products and Aimed at developing new products and advanced-power train technologies.advanced-power train technologies.

I believe BMW’s strength is in developing I believe BMW’s strength is in developing sports cars,” Mr. Toyoda said. “I get so sports cars,” Mr. Toyoda said. “I get so excited thinking about the cars that will excited thinking about the cars that will

result from this relationship.”result from this relationship.”

www.nytimes.com

Financial Report as ofFinancial Report as of 30 June 2012 30 June 2012

The BMW Group sold more cars than ever before in the The BMW Group sold more cars than ever before in the second quarter and during the first six months of 2012second quarter and during the first six months of 2012 Once again Once again underlining its excellent state of healthunderlining its excellent state of health. .

Comparison With Other BrandsComparison With Other BrandsThe top ten automotive brands for 2012 in order and value (in billions) The top ten automotive brands for 2012 in order and value (in billions)

are as follows:are as follows: BMW $24.62BMW $24.62 Toyota $21.78Toyota $21.78 Mercedes $16.11Mercedes $16.11 Honda $12.65Honda $12.65 Nissan $9.85Nissan $9.85 Volkswagen $8.52Volkswagen $8.52 Ford $7.03Ford $7.03 Audi $4.70Audi $4.70 Hyundai $3.60Hyundai $3.60 Lexus $3.39 Lexus $3.39

With a total of 475,011 BMW, MINI and Rolls-Royce With a total of 475,011 BMW, MINI and Rolls-Royce brand cars sold in the second quarter (+ 5.4 %) brand cars sold in the second quarter (+ 5.4 %)

and 900,539 in the first half of the year (+ 8.1 %), and 900,539 in the first half of the year (+ 8.1 %), the BMW Group again asserted its undisputed the BMW Group again asserted its undisputed position as the world's leading manufacturer of position as the world's leading manufacturer of

premium vehicles.premium vehicles.

““New product Development”New product Development”

ArgentinaArgentina CanadaCanada FranceFrance GermanyGermany IrelandIreland ItalyItaly JapanJapan SpainSpain United KingdomUnited Kingdom United StatesUnited States

Strength WeaknessCountries Privatizing RailwaysTechnology AvailabilityStrong R&DPromising Presence in other segments like Aircrafts, cars, Motorbikes

New to the sectorHigh Labor and Fixed costs.

Opportunity ThreatNew improved TechnologyCapable of getting new government dealers

Threat of a long recession in the USA and EuropeChinese and Japanese manufacturers

Facebook fansFacebook fans

Almost 10 million fans of BMW.Almost 10 million fans of BMW.Around 3 million fans of MINI.Around 3 million fans of MINI.Almost half a million fans of Rolls-Royce.Almost half a million fans of Rolls-Royce.

No other car company on the social No other car company on the social networks has as many fans. We lead networks has as many fans. We lead

the way here too, because we act with the way here too, because we act with foresight.foresight.

Long – Term GoalsLong – Term Goals

In 2016, BMW will be 100 years old and we aim In 2016, BMW will be 100 years old and we aim

to sell two million cars then.to sell two million cars then.

Our vision for the year 2020 is: to be the leading Our vision for the year 2020 is: to be the leading

provider of premium products and premium provider of premium products and premium

services for individual mobility.services for individual mobility.

Brand Ambassador Brand Ambassador

Sachin BMW

Forbes 78 highest paid Forbes 61raking in global companies

Twitter 9L Twitter 8 lakhs

Face book likes 75 lakhs 1Cr likes

No 1 batsman in the world No 1 engine in the world

Power & strength Power & strength

Your trust is our driving forceYour trust is our driving force

SourcesSourceswww.bmw.comwww.bmw.comwww.bmwblog.comwww.bmwblog.comwww.forbes.comwww.forbes.comwww.nytimes.comwww.nytimes.com