team 702 utham ks tarun gupta anubhav agarwal team 702 anubhav|tarun|utham

Team 702 Utham KS Tarun Gupta Anubhav Agarwal team 702 anubhav|tarun|utham

Challenge | Strengthen BMWs leadership position Product Reach Communication Identify gaps in the portfolio by doing Competitive profiling Identify supplementary revenue streams Identify gaps in the portfolio by doing Competitive profiling Identify supplementary revenue streams How to increase penetration? How to serve the hinterland market? Identify gaps in the communication platform, if any. How to compete with the strong brand of Mercedes? Ways to increase customer engagement focus areas Problems in a nut shell What is the time frame of focus? How to strangle Audis growing dominance in Metros? How to displace Merc as THE luxury car as perceived in upcountry? Upcountry Metro

Challenge | Strengthen BMWs leadership position Metro Upcountry Product Reach Communication Restructure the BMW offering mix in the entry segment to take on Audi A4 Used car business Restructure the BMW offering mix in the entry segment to take on Audi A4 Used car business Micro segmentation Presence in Rich neighborhoods Micro segmentation Presence in Rich neighborhoods Strategic Alliance with small car players to leverage on their distribution reach Communication should focus on functional benefits targeted at X1, 3 series & 5 series buyers Regional language and appropriate medium Online touch points make it user friendly Airport showrooms, caf + showroom lounges, brand centers focus areas Mainstay markets for luxury consumption Delhi, Mumbai, Bangalore In the next 5- 7 years, at least 5-7 new towns will get added on the luxury map of India Short termLong term Ideas in a nut shell

zooming in execution plan objectives insights leading to objectivesroad blocks insights as-is situationgap in BMWs offerings growth drivers industry analysis competitor analysiscustomer expectations

growth drivers | industry overview increasing demand from the rural areas which is in keeping pace with the economic growth and development 1 India has the highest growth rate of millionaire population - total of 32 lakh millionaire households 2 increasing customer confidence because of the growth of the economy 3 the target customer who used to over 45 (top level executives) earlier has changed to mid 30s (entrepreneurs and those have reached success at a young age) 4 newer reasons to buy these cars such as festivities, gifts and also a means of flaunting ones wealth. todays generation increasingly believes in the phrase got it? flaunt it! 5 + relevant for our marketing strategy

growth drivers | industry overview untapped millionaires with willingness to indulge locked in as black money 1 pockets of affluence spread across India posing challenge in reaching them economically 2 high import rates making the prices of imported luxury cars uncompetitive 3 the growth of this industry tightly coupled with macro elements making its prospects volatile 4 supporting infrastructure in India is not conducive to enjoy the performance and joy of riding luxury cars 5 - relevant for our marketing strategy

growth drivers | competitor analysis|standing BMWMercedesAudi

growth drivers | competitor analysis| Mercedes is synonymous with luxury car in India, helped by it being the oldest player in India - Mercedes Benz India MD & CEO Peter T Honegg current position + Strong Brand (safety & comfort); especially in upcountry Best distribution coverage among top 3 strong leader brand in upcountry market after sales service & spare parts Young perceive it as Old people brand petrol heavy product portfolio >2- scores low on sporty & style quotient Strategy Going forward We will rejig our portfolio, which is currently petrol heavy, since the competitions sales are dominated by diesel- powered cars. We also need to focus more on the customers experience

growth drivers | competitor analysis| We would prefer to be the most aspirational brand rather than a market leader in volumes. We were the last to enter India, but the growth has been faster than expectations - Michael Perschke, who heads Indian operations of Audi current position + customized its cars for long-distance driving on Indian roads best in class style and design strong challenger brand in metro market competitively priced distribution coverage worst among top 3 profitability (India operations) >3- weak presence in upcountry market Strategy Going forward The Audi India strategy encompasses substantial investment in branding, marketing, exclusive dealerships and after-sales service for the coming years

growth drivers | customer expectations Research objective MethodologyResults Capture the perceptions of customers on each of the top 3 brands BMW, Mercedes, Audi Cluster customers based on their expectations Identify customer expectations from this segment

growth drivers | customer expectations Research objective MethodologyResults Identify Experiential Factors that are critical for luxury car customers through in-depth interviews with prospects, BMW dealer and CRM representative In depth interview with Merc & Audi dealer to understand the competitive responses Exploratory research Classify customer alignment on the above identified factors Online Primary Research(80+ responses from households with upwards of INR 30 Million annual income) Factor Analysis - to find out the important features influencing customer buying decision Cluster Analysis (Dendogram) - to find clusters of customer segment through correlated features Descriptive Research

growth drivers | customer expectations Research objective MethodologyResults Segmentation Functional style accessories price STYLE AFTER SALES SERVICE DRIVING PLEASURE ACCESSORIES COMFORT & SAFETY ACCESSIBILITY PRICE Rewarding status Comfort & safety Rewarding status Comfort & safety STATUS Indulgence driving pleasure Indulgence driving pleasure

growth drivers | customer expectations | ranking Research objective MethodologyResults ParameterBMWAudiMercedes Style 213 After sales service 23 1 Driving Pleasure 132 Interiors including accessories 213 Comfort 231 Accessibility 231 Discount / Price 312

Trends Fancy and Design centric cars picking the trend Women increasingly important buyer Buyer mindset is still that of an aspirer not that of a connoisseur Demand for more localized products Facts Average age of car buyers down to 32 from 39 20% of buyers are women. Indirect influence much higher 49% of luxury good buyers are those who have just arrived Bad traffic and Road Conditions Insights A4 with LED flashlights and wooden upholstery. 3 Series lacks even a 6 CD Audio Women cant relate to abstract performance positioning High discounts on A4 to gain numbers Indians not ready to pay premium for power in 3 Series growth drivers | consumer behavior trends

Trends Fancy and Design centric cars picking the trend Women increasingly important buyer Buyer mindset is still that of an aspirer not that of a connoisseur Demand for more localized products Facts Average age of car buyers down to 32 from 39 20% of buyers are women. Indirect influence much higher 49% of luxury good buyers are those who have just arrived Bad traffic and Road Conditions Insights A4 gains on flashy interiors and accessories. 3 Series lacks even a 6 CD Audio Women cant relate to abstract performance positioning High discounts on Audi A4 to gain numbers Indians not ready to pay premium for power in 3 Series growth drivers | consumer behavior trends

product portfolio gap analysis and execution plan for portfolio restructuring

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value Perfect positioning for this segment. Best in class style, price & accessories. Strong contender to be the leader in this segment. preferred notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value BMWs best bet in this segment. Customers perceive it to be pricey. Also basic accessories missing. Will face stiff competition. notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value SUV, recently introduced. Competing with brands like Honda CRV, Toyota Fortuner. Targeted for high volumes. notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value To be launched next year as a rival to X1 series at a competitive price. notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value Strong presence in tier 1 & tier 2 cities. Has best in class after- sales service. notes

insights |as-is situation|BMW product map Diesel Portfolio 3 SeriesA4 Series Model 320d Sedan (Corp Edition) 320d Highline2.03.0 Price & Power(kw) 25-26 135@4000 32-33 135@4000 29-30 105@4200 35-37 176@4400 Entry Level Diesel offering of BMW. Low on basic luxury features and interiors. Almost falls in rough cut of luxury notes

insights |as-is situation|BMW product map Diesel Portfolio 3 SeriesA4 Series Model 320d Sedan (Corp Edition) 320d Highline2.03.0 Price & Power(kw) 25-26 135@4000 32-33 135@4000 29-30 105@4200 35-37 176@4400 Unintended comparison. Both models competitive in features, customer not ready to pay premium on power. Audi gives heavy discounts here for the kill notes

insights |as-is situation|BMW product map Diesel Portfolio 3 SeriesA4 Series Model 320d Sedan (Corp Edition) 320d Highline2.03.0 Price & Power(kw) 25-26 135@4000 32-33 135@4000 29-30 105@4200 35-37 176@4400 Best in class power and feature offering by Audi. No competition by BMW here notes

insights |as-is situation|BMW product map Diesel Portfolio 3 SeriesA4 Series Model 320d Sedan (Corp Edition) 320d Highline2.03.0 Price & Power(kw) 25-26 135@4000 32-33 135@4000 29-30 105@4200 35-37 176@4400 BMW differentiates two variants on features. Audi gives good features in both variants, differentiates on both Power and features. notes

objective Segments Drivers Portfolio strength functional Style Price accessori es 3 seriesX1 Needs restructuring because Segment with huge growth potential Entry point for Brand ladder which could translate to strong sales in the progressive segments Current positioning on performance plank does not appeal this segment

restructuring plan Diesel Portfolio 3 SeriesA4 Series Model 320d Sedan (Corp Edition) 320d Highline2.03.0 Price & Power(Kw) 25-26 135@4000 32-33 135@4000 29-30 105@4000 35-37 176@4400 Emphasize the Corporate Edition positioning. notes

restructuring plan Diesel Portfolio 3 SeriesA4 Series Model 320d Sedan (Corp Edition) 320d Highline2.03.0 Price & Power(kw) 25-26 135@4000 32-33 135@4000 29-30 105@4200 35-37 176@4400 Match A4 2.0 on all features. Tackle Audi discounts with better financing packages. notes

restructuring plan Diesel Portfolio 3 SeriesA4 Series Model 320d Sedan (Corp Edition) 320d Highline2.03.0 Price & Power(kw) 25-26 lac 135@4000 32-33 lac 135@4000 29-30 lac 105@4200 35-37 lac 176@4400 In long term, introduce a new variant that competes with Audi here, with comparable power notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value Top selling model in BMW product portfolio. Best product in this segment. notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value Recently launched in India. Positioned as business class luxury. BMW dealers for see A6 as a major threat to 5 series. notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value Strong brand. Perceived to be Oldies product. Lacks the sportiness and driving pleasure of BMW equivalents notes

objective Segments Drivers Portfolio strength functional Style Price accessori es 3 seriesX1 rewarding Badge Comfort 5 seriesX3 6 seriesX5 Needs attention because Hugely profitable segment Audi A6 is recently launched which is expected to alter the segment structure Scope for growth of the category

Recently launched A6, with four variants insights |as-is situation|BMW product map notes 5 Series Performance and driving pleasure Amazing driving position and advanced safety features 3 Diesel Variants and Two Petrol one of them high end A6 Features, handling and competitive performance Adaptive air suspension, best for Indian roads Two Diesel and Two Petrol Variants. One each with four wheel drive

BMW cars do well in non-chauffeur driven space. Use this insight in lead generation and in selling proposition. insights |as-is situation|BMW product map notes 5 Series Performance and driving pleasure Amazing driving position and advanced safety features 3 Diesel Variants and Two Petrol one of them high end A6 Features, handling and competitive performance Adaptive air suspension, best for Indian roads Two Diesel and Two Petrol Variants. One each with four wheel drive

Launch a new marketing campaign around 535i, high end petrol. Increased push for numbers till there is no offering by competition in this space execution plan notes 5 Series Performance and driving pleasure Amazing driving position and advanced safety features 3 Diesel Variants and Two Petrol one of them high end A6 Features, handling and competitive performance Adaptive air suspension, best for Indian roads Two Diesel and Two Petrol Variants. One each with four wheel drive

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value BMW boasts of a strong portfolio for this segment with Saloons, SUV & Sportsters notes

insights |as-is situation|BMW product map Segments Drivers functional Style Price accesso ries 3 seriesX1A4Q3 C CL rewarding Badge Comfort 5 seriesX3 A6 Q5E GL 6 seriesX5Q7 CLS - SLS indulgence Perform ance 7 series X6M3 A8RS5 SSLK X6 M Z4 R8TT High volume High value BMW has the best mix of SUVs among the top 3 players in the market. notes

objective Segments Drivers Portfolio strength functional Style Price accessori es 3 seriesX1 rewarding Badge Comfort 5 seriesX3 6 seriesX5 indulgence Performa nce 7 series X6M3 X6 M Z4 High volume High value Powerful portfolio Status quo

used car business..

business landscape for used cars customer insight Strategic fit This will induce brand trial which is more likely to translate into a new car sale; provides attractive ways of reaching wider audience including weddings, top-end schools, polo events and even corporate dos customers opt for a change in luxury car within 3-4 years of purchase drivers interest rate and petrol price hikes are already affecting car sales; and banks nowadays dont hesitate to finance pre-owned cars product specification manufacturer-backed warranty of 6 months, or 15,000 km refurbished and technically checked/certified car support to customers in financing, documentation as well as delivery assurance of the legitimacy of vehicle documents 1-year-old model - 15-20 % lower price 3- or 4-year-old model - 45-50 % lower price > competition Mercedes already into full fledged used car business

Increasing the reach deeper penetration in Metros| phased expansion in upcountry

increasing reach | Metros Micro segment based on the expenditure pattern rather than the income target younger customers to boost sales. first-generation entrepreneurs, politicians, Bollywood stars and cricket icons feature in this list young buyers drive car market trends so catch them young FMB programs, alpha males travelling to US Advance Booking: Car rental cos roll out luxury wheels; Companies like Intel, HP And Cisco Go For Luxury Cars For Executive Target rich neighborhoods We also believe that the potential in Delhi and Mumbai has not been fully exploited and that there exists a few more micro markets within these cities that need to be tapped Independent analyst, ET approach Calcutta - Bechbagan - Ballygunge, Jodhpur Park; Indian Institue of Chemical Biology, Dhapa Chennai - Adyar West, Thiruvanmiyur (East), Velachery, Villiwakkam (South), Virugambakkam (North), Kodungaiyur (West), Kolathur, Anna Nagar (West) Bangalore- J.P. Nagar, Padmanavanagar, Srinivasanagar, Ganesh Mandir, Sanjaynagar, Ejipura, Jayanagar Mumbai - Oshiwara, Sahar, Walkeshwar, Mahalakshmi, Versova Creek, Chembur West, Borivilli West Delhi - Rohini, Preet Vihar, Rithala, Greater Kailash, Mahipalpur, Pitampura

increasing reach | Upcountry Strategic alliance with small car players like Maruti After service instead of investing in a far flung after sales network, just sends the mechanic over for a house call Open mini-showrooms in high potential areas Remittances from NRI sons & daughters lead to an unprecedented boom in wealth in some villages Independent analyst, ET approach Zone: Punjab Major source: Canada Zone: Gujarat Major source: Europe Zone: Kerala Major source: Middle east Zone: Andhra Pradesh Major source: U.S of America

Right communication mix.. simplify for Metro| localize for upcountry

communication mix| Metro Buying decisions of Indian Men are more and more influenced by women who look for style & interiors than performan ce insight This phenomen on is more true for functional buyers who buy more by rationale than emotion Observation: BMW positions itself as Joy As-is Concept of joy is too abstract for first time luxury car buyers (evident from our primary survey) Gap Communic ation mix especially in print media should be functionall y strong ( 3 series, X1, 5 series advertise ments) To be 6 Series and Above 5 Series,X3,X5 1 Series (TBL),3 Series, X1 Functional only Mix Functional & Emotional Emotional Only This is specific to all communications on the website Positioning blueprint

communication mix| Metro Buying decisions of Indian Men are more and more influenced by women who look for style & interiors than performan ce insight This phenomen on is more true for functional buyers who buy more by rationale than emotion Observation: BMW positions itself as Joy As-is Concept of joy is too abstract for first time luxury car buyers (evident from our primary survey) Gap Communic ation mix especially in print media should be functionall y strong ( 3 series, X1, 5 series advertise ments) To be Simplify the online experience Add virtual experiential model of all vehicles Competitors have the best in class online asset Plush buying experience - Brand Centers, Airport Lounges, Caf inside showrooms Simplify touch points Must have Nice to have

communication mix| upcountry Reach rural rich Communicate in regional language Event sponsorship Political gatherings, village festivals Relevant Media exposure

Challenge | Strengthen BMWs leadership position Metro Upcountry Product Reach Communication Restructure the BMW offering mix in the entry segment to take on Audi A4 Used car business Restructure the BMW offering mix in the entry segment to take on Audi A4 Used car business Micro segmentation Presence in Rich neighborhoods Micro segmentation Presence in Rich neighborhoods Strategic Alliance with small car players to leverage on their distribution reach Communication should focus on functional benefits targeted at X1, 3 series & 5 series buyers Regional language and appropriate medium Online touch points make it user friendly Airport showrooms, caf + showroom lounges, brand centers focus areas Mainstay markets for luxury consumption Delhi, Mumbai, Bangalore In the next 5- 7 years, at least 5-7 new towns will get added on the luxury map of India Short termLong term Ideas in a nut shell

team 702 utham ks tarun gupta anubhav agarwal team 702 anubhav|tarun|utham

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