AB219 - Unit 8 Daniel Maisonet - 1203C

KapConsultants Marketing Plan
By: {Your Name}
AB/MT219: Marketing DATE
KapConsultants Disclaimer: The organization and characters depicted in this exercise are fictional. Any resemblance to real organizations or individuals is purely coincidental. Page 1
SECTION I. THE BUSINESS Company Description BMW of North America LLC BMW of North America was established in the United States in 1975 but originally was based out of Germany. The BMW Emblem was created in 1917 but actual automotive production did not start until 1928. The main headquarters is located in Woodcliff Lake, NJ but the cars are produced and built in South Carolina USA. BMW as a whole manufactures Motorcycles and Light Trucks but we will be focusing on the vehicles that they produce. BMW has a very wide variety of vehicles for customers to choose from. Our main focus would be on the vehicles that are produced in the USA and are not motorcycles or light trucks. Having variety means that more and more people would be satisfied with the finished product. BMW has come a long way since 1916 and creating aircrafts for World War One. BMW as are clearly associated with premium products, premium prices, and premium experiences. Business Mission BMW of USA has two mission statements that stand out from the competitors. "The BMW brand stands for one thing: sheer driving pleasure. Sporting and dynamic performance combined with superb design and exclusive quality." The meaning of this is to show the quality of the brand BMW as a complete company. Next is a mission statement that shows what BMW offers as a company. "The BMW Group is the world's leading provider of premium products and premium services for individual mobility." This is a statement that shows BMW is the nations leader in the business; you earn this when you are in business for almost 100 years. (BMW 2012) The mission overall would be to design automobiles that meet all challenges posed by the future -Efficient, intelligent, connected. BMW has made those vehicles a reality. (BMW 2012) Company Values BMW like any other company has many values that the company is made up of. For example: the brand aims to clearly differentiate itself from its competitors' image. This means that the product and services would be different then Toyota or Honda (which is BMW competitors). All of the BMW Groups activities are geared towards continuously increasing the companys value over the long term. The company believes that long-term growth results from long-term thinking and sustainable development. (BMW 2012)
SECTION II. THE MARKETING ENVIRONMENT The geographic market that I have chosen to test the BMW Hybrid Luxury Vehicle would be on the West Coast of the United States. This would be because the biggest threat of this product not being efficient is Mother Nature. On the East Coast it snows and on the West Coast it does not, so the feature 4x4 would not have to be implemented. On the West Coast Hybrid Vehicles are needed more than the East Coast because of the need of ethanol that is required in the gasoline. This will help provide people who are paying high gas prices at the pump to have a Luxury Hybrid Vehicle. Social Environment BMW of the West Coast would have to change the mind of consumers by convincing them that a Luxury Hybrid Vehicle is a better investment than the traditional Luxury gasoline vehicle. We need to make a vehicle that appeals to people who are on the market for a vehicle and show them why a Hybrid Vehicle would save them money in the long run. This would be how we influence our customer to buy not only a Luxury Vehicle but a Luxury Hybrid Vehicle that would save the consumer money. Time and money are the most important beliefs that households belief are most important, so this is what BMW will save people. Demographic Environment Generation Yers is the Generation that BMW would aim to sell the Luxury Hybrid Vehicle to. Gen Y kids are known as incredibly sophisticated, technology wise, immune to most traditional marketing and sales pitches...as they not only grew up with it all, theyve seen it all and been exposed to it all since early childhood. This is an opportunity from BMW to appeal to Generation Y by posting the new product online, since it probably is the number one source for Generation Y to see the product. (Generations X,Y, Z, 2012) Economic Environment BMW needs to figure out a way to appeal to the three income classes, so no matter what the financial situation of the consumer is we can have a solution for them. In this economic crisis we cannot turn down any business, even if they have bad credit. BMW will have different packages that suite people and the financial situation they live in. Having an affordable Luxury Hybrid Vehicle is possible because we will make it possible. BMW will have an entry level Hybrid Vehicle and a top of the line Vehicle fully loaded, so there will be something for everyone regardless of the Economic Environment BMW has to deal with. Technological Environment BMW of USA would appeal to many buyers on the West Coast that are on the market for A Luxury Vehicle. One Technological impact that BMW would be impacted by is how advanced the customer is with technology. Technology plays a big role on how customers buy because they can find out a lot about the Hybrid Vehicle before entering the dealership. This would pose as a threat to the business because we would not have a chance to present the product to the customer. Although technology keeps evolving, it would be BMWs job to appeal to the customer from a Technology standpoint.
Political Environment The Political Environment would play a big role in how our Vehicles are built and what regulations the company has to follow to build a Luxury Hybrid Vehicle. Depending what state the vehicles are being sold in the State regulations would vary. When building the vehicles BMW has to keep in mind to follow these regulations to keep the state and the consumer happy with the final product. One of the biggest options when consumers look for vehicles is gas mileage, this is where our Hybrid Vehicle would take over the market. A company that will regulate gas mileage on a vehicle is the EPA (Environmental Protection Agency). EPA's regulation gives BMW and every Car Manufacture instructions on how to test vehicles, measure, calculate and report fuel economy information. BMW will follow these regulations to create the best Luxury Hybrid Vehicle for our customers. Competitive Environment BMW has a lot of direct competitors in the United States and beyond. Manufactures such as Chevy, Ford, Chrysler, Jeep, Toyota, Honda, Mercedes and a lot more pose a threat to the BMW vehicle. A consumer has so many options that BMW has to come up with a way to appeal differently than our competitors. One direct competitor that poses a threat because they have a product similar to ours is Toyota with the Prius. The Prius is not known for the Luxury, it is just known for the good gas mileage. BMW will implement the known BMW product which is luxury and place the Hybrid system with that. Having this process would give us the competitive advantage over Toyota. SECTION III. THE CUSTOMER
Customers BMW as I have stated before is known for its Upper Class vehicle that is the greatest Luxury car on the market today. We would like to change that and make the vehicles we provide more affordable for Middle and Lower Class people (speaking income wise). This is what our Luxury Hybrid Vehicle would do , appeal to all different types of buyers. Customers are the biggest part of the business in our business, selling people vehicles. Customers take a lot into consideration when purchasing a vehicle and this ultimately will determine if they purchase our vehicles at BMW or our competitors vehicles. BMW will have to make our market appeal to new and old customers that are on the market to buy a vehicle. There are two factors that will come into factor when customers come to look at our vehicles, Psychological and individual factors. The year a person was born plays
a big role on what it is the individual is looking for in a vehicle. The main two generations that BMW will appeal to are Generation X and Generation Y. Generation X is a bit older then Generation Y, with this said technology is not really a factor unless they keep up with it. Generation X is also looking to be confortable because they are an older Generation. Generation Y is the new Generation and would be looking for a confortable car and something that is up to date with technology. Having said this BMW would have to make a good product that would appeal to different types of customers and the Luxury Hybrid Vehicle would suit both Generations and beyond. The next factor that is very important is the Psychological aspect of the individual that comes into the dealership that is selling the BMW product. Every Salesperson would do things a little different but training would be provided by professionals to insure that our Salespeople are doing it the BMW way. The BMW way would be to treat the customer with respect and guide them into making the right decision. The BMW product over the years has sold itself with advancement in technology. Market Segmentation BMW will use many things to get an effect Market Segmentation. BMW will look at geographic, demographic, behavioural, socioeconomic and beneficial characteristics of society to target the market more effective. Geographically: The main market for BMW that we are going to do most of our business would be in Germany and North America, 65% to be exact. Both of these areas are heavily industrialized locations which results into people being financially able to purchase the Luxury Vehicles that BMW provides. Demographics: People who would be able to purchase a BMW would be between ages 25 to 50 years old. This would mean the individuals would fall in the Generation X and Generation Y category. BMW will not discriminate; Race, or Culture would not matter to us. If you are interested in our vehicles, we are interested in selling you one. Behaviourally: The individuals interested in the BMW product would have successful image of the vehicle in their mind before buying the car. Customers would also like a clean modern or sporty look. The benefit required by these people are is the known performance and reliability of the BMW product that is already known. Target Market BMW is pretty open and easy going when it comes to what type of customers that we would like to attract. Knowing how business is today, not every deal will be a walk in the park. People from all different types of income levels are welcome to take advantage of the BMW product. Good Credit, Bad Credit or No Credit is allowed when wanting a BMW product. BMW will not discriminate based on age, culture, race and religion. Having an open door policy will allow us to be successful and allow our market to expand.
Positioning Strategy BMW as a group is the Nations leader in high class Luxury Vehicles. The current positioning strategy is going to be Number One, New opportunities and New Efficiency. This means that BMW will be number on, will offer New Opportunities to our customers and give New Efficiency to our target market. Introducing this new product will help use stay with the strategy that we had all along and that would be to introduce our product in steps. This will keep our customers thinking what will be next for BMW?
SECTION IV. MARKETING STRATEGY Place Marketing channels The channel of distribution for BMW of North America product line will follow the already established distribution used for BMW Domestic and International. There will be many channel members that BMW would provide to indirectly but direct dealerships that only represent BMW will get the main floor plans. The BMW dealership will sell and distribute the BMW product that they get directly from the Manufacturing Plant. Channel structure BMW of North America is going to maintain a very close relationship with people who want to open up a BMW Dealership in North America and those who already have a established BMW dealership. Transportation is directly from the manufacturing plant to ensure the customers getting a fresh product off the product line. There will be 10 trucking companies who will be contracted with BMW of North America and some on standby in case some carriers trucks are out of order. The chain of product structure would be as follows: BMW Plant BMW Dealerships Buyer of BMW Product
The structure is very simiple, the vehicles would go from the plan in North Carolina to the BMW dealership that is in need of the vehicle and then the consumer or business who is purchasing the vehicle. Distribution intensity The intensity of the distribution is based on the travel rate of the dealership that is selling the BMW products. BMW does not establish how many vehicles to ship to the Dealership for the floor plan; the General Manager decides that based on the sales.
The travel rate is based on the vehicles that were sold. When one vehicle is sold a similar one is shipped back to the dealership when it comes off the assembly line, this is travel rate. Supply chain management BMW has been managing its supplies and manufacturing for a very long time but modern technology has made it easier to maintain. BMW manufacturing plants have a full inventory of the parts needed to build the vehicles to ship to the BMW dealerships that need them. Up to date technology like computers have helped the inventory system but in order to accomplish positive growth in making progress BMW will implement the eight key supply chain management processes, including Customer relationship management process,Customer service management, Demand management, Order fulfilment, Manufacturing flow management, Supplier relationship management, Product development and commercialization, and Returns management. For BMW of North America to be successful in the long run there are two things that we would focus on for our new Luxury Hybrid Vehicle to be a success, Customer Service Management and Demand Management. Making customers happy with the product that they are receiving and the service that they are getting is very important because we would like people to talk about the good experience that they got at BMW. The Demand Management aspect of it will determine the supply and demand factor of the new Hybrid Vehicle that is available on the market. We have to figure out the target market for the new product and then get people to buy it so we could manage the proper demand cycle for it. Production is based on if the consumer buys the vehicle. Managing logistics As I have stated before BMW will manage its logistics through 10 contracted trucking companies to make sure that our vehicles will be delivered safely and securely. They would be on call and get the vehicles right when they are ready to be shipped out without any delay to ensure our customers get a vehicles fresh off the product line, newly inspected.
SECTION IV. MARKETING STRATEGY Promotion Promotional Strategy: The Promotional Strategy for BMW of North America would be very simple and to the point, unlike other dealerships. We will put our products in the hands of the four promotional elements, which are, advertising, public relations, personal selling and selling promotion. These promotional strategies would be used to help promote the already known BMW product but introduce the new product BMW of North America is creating. The advantage the promotional advantage would provide BMW of North America is selling the Luxury Hybrid Vehicle to customer before the individual even enters the dealership.
Promotional Goals: The main promotional goal for BMW of North America would be to promote the new product that BMW has on the market, in this case would be the Luxury Hybrid Vehicle. This will be accomplished by using AIDA, which stands for attention, interest, desire, and action. Selling the new product to existing and new customer will be a challenge in itself but BMW will use these tools to help make it easier. BMW of North America will get the attention of new customer by making the new Hybrid Luxury Vehicle affordable to a wide range of buyers. Once the customers have seen the product and is interested in it, BMW needs to prove why the product will suit them. This will be determined by the salespeople, how the product is presented to the customer when they are at the dealership. The advertisement and public relations would be very important key factors that will determine if the product is successful. Factors Affecting the Promotion Mix: Product Lifecycle. BMW vehicles and every other make on the market manufactures vehicles in model years. The model years are not determined by the actual physical year the car is being produced. The next new model year starts in the end of August, so an example would be the new Luxury Hybrid Vehicle will be introduced in August, 2012 but it is classified as a 2013 model year vehicle. The BMW of North America has a product lifecycle span of 7 months because the model year only will last 7 months until a new model year is created. The Luxury Hybrid Vehicle of 2013 will be introduced in September of 2013 and the advertisement of this specific vehicle would be very intense. This would be to promote the new product that BMW has to offer and get people interested. Then after it is drawing closer to the new model year we will advertise the changes and continue the lifecycle of the new product from were the old left off. Target Market Characteristics. The market segment used for target marketing will help the developers of BMW advertisements be effective online and be creative with manufacture discounts that will attract our target market. Selling vehicles is not a customer walking in and just selling them a vehicle; there is more to it then just that. The market characteristics that BMW will have is advertising discounts so customers could feel like they are getting a good deal before they enter the dealership. Push or Pull strategy. BMW of North America will incorporate the Push Strategy. How we will accomplish this is produce the product and introduce the product to our customers through our marketing and advertising channels. The product would go from the production plant in North Carolina to the retailer were the travel rate requires the vehicle or a customer orders one. Integrated Marketing Communications:
Advertising: There will be many different types of Advertising methods that BMW of North America will use to promote the BMW product and the new Luxury Hybrid Vehicle. The methods that would help promote the new BMW Luxury Vehicle and all the BMW products are the Radio, Newspaper, Television and the Internet. The two main sources that we will utilize are the Television and the Internet because the time and technology we have know that is how 90% of the people function. With having the Newspaper in the budget we would focus on promoting the new product on the Sunday paper because 60% of people who read the paper only read it on Sundays. With the rising way of doing things now a days, BMW will stay up with technology and stay up with the ways the customers demand to see our products. Public Relations: BMW will have a general website that is called Dealer-Rater.com that will allow customer to explain the experience they had in the specific BMW dealership that is providing a BMW product. This will allow other people to see an opinion of others who have purchased a BMW product and would like assurance on there purchase. I think that creating a Facebook website with the latest product information would also give customers a way to build interest in the latest product on the BMW market. The new product that people will be talking about is the Full Hybrid Luxury Vehicle that is affordable. Sales Promotion: The use of sales promotions would be based on the month that the customer is purchasing the car. Although the month will determine what Sales promotion is going on there is always room to negotiate. This will help assure the customer that it does not matter when they are ready to buy because the manufacture (BMW) will always give an insentive. Personal Selling: Personal setting will take place when a customer comes into the dealership and is interested in the vehicle. They could come to the dealership to just check the car out and drive it and this is when the Sales person will introduce the actual physical car to the customer. This is when the customer will get a hands on feeling of the vehicle and get to experience it like if it was there own. Closing the sale would be the key for the Sales person because not everyone who comes into a BMW dealership is ready and willing to purchase a BMW product. SECTION IV. MARKETING STRATEGY Pricing Pricing objectives: The primary pricing objective of BMW of North America would be to maximize profit, which will be focused by training the salespeople to have good negotiation skills with the consumer. BMW has an already known product that people feel like they can not afford if they are not making a 5 or 6 figure salary, this is not the case. The new product will introduce a new line or affordability for the BMW product but give the Luxury of a known BMW product. Although the BMW Luxury Hybrid would be
reasonably priced the dealership will have to figure out other ways to sell different types of products to gain a bigger total gross amount for the deal. This will attract New and already existing customer to our new product as well as the products that we are evolving. Determinants of Pricing: For BMW of North America to determine pricing for the vehicles that we sell, a lot has to come into factor. The first thing that would play a factor in determining pricing would be the total cost of BMW manufacturing the vehicles. Once this is determined, BMW pricing experts then can determine what the MSRP of any given BMW will be. MSRP stands for Manufacture Suggested Retail Price, this is what the dealer should sell it to a consumer at but with BMW offering Manufacturing Rebates the dealership could get the price more affordable. One major factor that will affect the price of our latest BMW product, the Luxury Hybrid Vehicle, is the cost of shipping from Japan for the Hybrid Parts. Considering a lot of the economy is based on trading with China and Japan, the manufacture year of the vehicle will determine if the cost of shipping did go up. In order for BMW of North America to be competitive and get customers through the door and still maximize profit, pricing compared to our competitors is going to be vital. We will offer more cars more little money to get people through the door, then sell them the best product on the market. For 75% of car buyers price is what the deal broils down to, so knowing that BMW will price accordingly. Pricing strategy: The Strategy that BMW of North America is going to incorporate is going to be we will meet or beat a competitors car if the same equipment is offered at the same price. There will be incentives for first time BMW buyer, 0% financing for people who qualify and high mark up on the vehicles so the dealership could have room to negotiate. The new product that we are introducing into the BMW market, the Hybrid Luxury Vehicle, will be pure priced. ANY BMW in the North America Region has to stay solid on the price because there will be no room to negotiate. BMW would like to incorporate this so customers can see that it is a lot of car for such little money. Everyone who buys the new Hybrid Luxury Vehicle will pay the same price will pay the same price for the equivalent type of equipment. Ethical and legal considerations related to price: BMW of North America must take Legal and Ethical consideration when setting the price of any vehicle that we manufacture. To avoid the customer from thinking that BMW has price fixing we will allow negations when the customer comes through the door. One strategy that BMW of North America will focus on to help set the price is very detailed research on the competitors vehicles and pricing. This will help our market analysis as to what we should set our prices at to attract the customer with price before they enter the dealership. Knowing what other Manufactures have to offer is a huge
advantage to the BMW product because we could see what works and what doesnt before BMW actually releases it. Base Price: BMW of North America would have 3 different types of Luxury Hybrid Vehicles prices. Depending on which type of equipment the customer wants, that would determine the price that is asked. The introductory price for the base model Luxury Hybrid Vehicle is $20,000. The next model would be the model 2 Luxury Hybrid Vehicle, which will be the same as the one but with Navigation and Sunroof; Price would be $25,000. The final Luxury Hybrid Vehicle would be the Model 3, which will have Navigation, Sunroof, Leather and Remote Start; all would be $30,000. Now the customer can take any model and add and subtract what is it that will suit there needs as the customer is always right. Pricing Contingency Plan: Every compony should have a contingency plan encase the profit does not go as planned. Being a BMW Manufacture and Seller, we will sell new and used cars at all of our dealerships. Naturally a used car sale would always result in a bigger profit so this would be our back up plan. The dealerships would have to slow down travel rate and sell more used cars the new to make up for the losses. If this does not work BMW as a whole would have to be more efficient and smart about what cars we product and our shelf life on our vehicles.
References
BMW.com; Company Information (2012) http://www.bmwusa.com/Standard/Content/CompanyInformation/ BMWgroup.com; History (2012) http://www.bmwgroup.com/e/nav/index.html? http://www.bmwgroup.com/e/0_0_www_bmwgroup_com/unternehmen/historie/meilen steine/meilensteine.html Press.BMWGroup.com; Mission Statement (2012) http://retailindustry.about.com/od/retailbestpractices/ig/Company-MissionStatements/BMW-Group-Mission-Statement.htm Generations X,Y, Z and the Others (Schroer, 2012) http://www.socialmarketing.org/newsletter/features/generation3.htm

AB219 - Unit 8 Daniel Maisonet - 1203C

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

AB219 - Unit 8 Daniel Maisonet - 1203C

Încărcat de

Drepturi de autor:

Formate disponibile

KapConsultants Marketing Plan

By: {Your Name}

AB/MT219: Marketing DATE

S-ar putea să vă placă și