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BMW Digital Proposal Andrea Bell & Ryan Green MBAK619 August 26, 2012

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  • 1. Andrea Bell & Ryan Green MBAK619August 26, 2012

2. Consumer Inspiration Talk Connect Respond Purchase Digital footprint Traditional Media BMW vs. Competitors Consumers Digital Behavior 3. Challenged to interact quickly and moreeffectively with customers. Improve upon the current digital marketingcampaign Budget for project = $250,000 4. Interactive Facebook Application Compare BMW to competitors Specs Engine Performance Speed Accessories Blogging Facebook Application Capture honest feedback from consumers Promote BMWs brand and dedication to improvingthe product 5. Facebook advertising/blogs help bridge thegap between digital world and consumers. Generate new sales and repeat sales 6. Reach, Relevance, Acquisition and Retentionof Customers: Reach Paid Searches, Blogging, Digital News Relevance Connect with the consumers passion Acquisition Engaging in a specific action to promote the brand Retention Consumer purchases another BMW 7. Main Competitors Audi Innovation and Technology Lexus Luxury Mercedes Aesthetics 8. Competitive Positions 9. Age Range: 26-35 House Hold Income: $50K+ Desires: Carry 3-4 passengers, Reliability,Stylish, Efficient 25% of buyers are repeat BMW buyers Nearly all media viewed is digital, very littleuse of print media 10. Digital Consumers Interests Efficient Dynamics Strategy Latest Technology Hybrid and Hydrogen Desire Greater Sustainability High Level of Customer Service Want to be Environmentally Satisfied 11. Current BMW Facebook has 10.8M followers 10% growth annually Respond to 70% of blogs on new site Provide updated information prior to orwithin one day of another outlet posting theinformation. 12. We appreciate the trust you place in BMWand would not want to jeopardize your trustin any way (BMW, 2012). BMW Privacy Policy Applications will follow BMWs Privacy Policy 13. Applications will sit on top of Facebook Easy User Interfaces Detailed Pictures and Graphics Cost Comparisons of Models Prominent Languages of the World Standard Blogging Programming and Layout 14. Facebook Applications Use current logins Options to like and share Normal to users daily routine Posts are shared through individuals social groups 15. Increase in Sales Figures Q1 2012 sales increase by 11.2% over Q1 2011(BMW Blog, 2012). Goal = Increase sales 2.5% to drive $1.8M in annualrevenue Expectations for Market Penetration 10.8M current BMW Facebook followers Increase followers by 10% annually Rely on 3-Series staple product and new 6 and 7-Series models 16. Profit Expectations Current EBIT margin is 18.8% (BMW Blog, 2012) $1.8M in revenue is EBIT $338,400 withoutadditional marketing spend Digital Marketing ROI $338,400 in EIBT minus the $250,000 in marketingspend is a net increase of $88,400. 17. $250,000 Project Budget $140,000 for application development $110,000 for staffing Two additional FTEs Challenge is employee count 10.8M current Facebook followers Potential of significant daily required replies 18. BMW. (2012). Site Usage Disclaimer and Privacy Policy.Retrieved July 8, 2012 from http://bmw.nakedlime.com/Disclaimer.aspx BMW Blog. (2012, May 4). Retrieved August5, 2012, from BMW Blog:http://www.bmwblog.com/2012/05/04/bmw-group-reports-record-figures-for-first-quarter/ Facebook. (2012). Retrieved August 5, 2012, fromFacebook BMW: http://www.facebook.com/#!/BMW