SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

A
PROJECT REPORT
ON

COMPARATIVE ANALYSIS OF AUTOMOBILE

INDUSTRY
WITH REFERENCE TO
BMW & AUDI

SUBMITTED AS
ASSIGNMENT

YEAR 2018-19

SUBMITTED BY:
SHARMA VISHAL (B-20)
PATEL HARSHIL (B-21)

FACULTY:
Prof. MANJARI MUNDANAD

Master of Business Administration

SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS

MANAGEMENT AND COMPUTER APPLICATIONS
Near Infocity Gate 01, Indroda Circle, Koba- Gandhinagar Road, Infocity, Gandhinagar, Gujarat
382007.

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CONTENTS
CHAPTER 1: AUTOMOBILE INDUSTRY ............................................................. 4

1.1 AUTOMOBILE SCENERIO ACROSS THE GLOBE .................................. 4

1.2 AUTOMOBILE SCENERIO IN INDIA .......................................................... 4

CHAPTER 2: RATIONALE OF THE STUDY ........................................................ 6

2.1 WHY THE SELECTION OF BMW AND AUDI? ......................................... 6

2.2 HISTORY OF BRAND ...................................................................................... 7

2.2.1 HISTORY OF BMW ................................................................................... 7

2.2.1 HISTORY OF AUDI ................................................................................... 8

CHAPTER 3: STRATEGIC ANALYSIS ................................................................ 10

3.1 EXTERNAL ANALYSIS ................................................................................ 10

3.1.1 PORTER’S 5 FORCES EXTERNAL ANALYSIS -BMW.................... 10

3.1.2 PORTER’S 5 FORCES EXTERNAL ANALYSIS –AUDI ................... 11

3.2 STP ANALYSIS OF BMW AND AUDI ........................................................ 12

3.2.1 STP ANALYSIS OF BMW ....................................................................... 12

3.2.2 STP ANALYSIS OF AUDI ....................................................................... 13

3.3 4P STRATEGIES OF AUTOMOTIVE BRANDS (BMW & AUDI) .......... 15

3.3.1 4P’s of BMW .............................................................................................. 15

3.3.2 USER FRIENDLY CUSTOMER BUYING............................................ 16

3.3.3 4P’s of AUDI .............................................................................................. 17

3.3.4 USER FRIENDLY CUSTOMER BUYING-AUDI ................................ 18

CHAPTER 4: MARKETING AND ADVERTISEMENT ACTIVITES .............. 19

4.1 BMW’s MARKETING ACTIVITES ............................................................. 19

4.1.1 BMW’S AGGRESSIVE ADVERTISING ............................................... 19

4.1.2 BMW JOINT-CAMPAIGN WITH HD RADIO .................................... 20

4.1.3 BMW Films ................................................................................................ 20

4.1.4 TED Talks .................................................................................................. 21

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SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

4.1.5 3 SERIES SPECIFIC ADVERTISING ................................................... 21

4.1.6 ADVERTISMENTS .................................................................................. 22

4.2 AUDI’s MARKETING ACTIVITES ........................................................ 23

4.2.1 Direct Marketing .................................................................................. 23

4.2.2 Sales Promotion ......................................................................................... 24

4.2.3 Public Relations ......................................................................................... 24

4.2.4 Product Placement ..................................................................................... 24

4.2.5 Official web site .......................................................................................... 25

4.2.6 COMMERCIALS ...................................................................................... 25

4.3 COMPETITIVE RIVALRY –AMBUSH MARKETING ....................... 27

4.4 ONLINE RIVALRY ................................................................................... 29

CHAPTER 5: DISCUSSION AND CONCLUSION .............................................. 30

REFERENCES ........................................................................................................... 31

TABLE OF FIGURES

FIGURE 1: CURRENT TRENDS ........................................................................................ 5

FIGURE 2: MARKET SHARE ........................................................................................... 6
FIGURE 3: BMW VS AUDI -PRINT AD ........................................................................ 20
FIGURE 4: BMW FILMS............................................................................................... 21
FIGURE 5:BMW NIGHT VISION-PRINT AD ................................................................. 22
FIGURE 6: BMW M POWER-PRINT AD ...................................................................... 22
FIGURE 7: AUDI -CO2 EMISSION-PRINT AD. ............................................................ 25
FIGURE 8: AUDI -LED TECHNOLOGY AD .................................................................... 26
FIGURE 9: AUDI HORSEPOWER -PRINT AD ................................................................ 26
FIGURE 10:AMBUSH MARKETING ............................................................................... 28

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CHAPTER 1: AUTOMOBILE INDUSTRY

1.1 AUTOMOBILE SCENERIO ACROSS THE GLOBE

The world’s automobile industry made over sixty-six million cars, vans, trucks and
buses in 2005. These vehicles are essential to the working of the global economy
and to the wellbeing of the world’s citizens. This level of output is equivalent to a
global turnover of €1.9 trillion. If vehicle manufacturing was a country it would be
the sixth largest economy in the world. Building sixty-six million vehicles requires
the employment of more than eight million people directly in making the vehicles
and the parts that go into them. This is over five per cent of the world’s total
manufacturing employment. In addition to these direct employees, about five times
more are employed indirectly in related manufacturing and service provision, such
that an estimated more than 50 million people earn their living from cars, trucks,
buses and coaches. The automobile industry is also a major innovator, investing
almost €85 billion in research, development and production. The auto industry plays
a key role in the technology level of other industries and of society and is one of the
largest investors in Research and Development, with several manufacturers leading
the Top 10. Vehicle manufacture and use are also major contributors to government
revenues around the world, contributing over €430 billion in twenty six countries
alone. The industry is committed to contributing to an integrated approach, with
other stakeholders, to a cleaner environment and reduced carbon emissions.

1.2 AUTOMOBILE SCENERIO IN INDIA

INTRODUCTION

The Indian auto industry became the 4th largest in the world with sales increasing
9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It
was the 7th largest manufacturer of commercial vehicles in 2017. India is also a
prominent auto exporter and has strong export growth expectations for the near
future. Automobile exports grew 26.56 per cent during April-July 2018. It is
expected to grow at a CAGR of 3.05 per cent during 2016-2026. In addition, several
initiatives by the Government of India and the major automobile players in the

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SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

Indian market are expected to make India a leader in the two-wheeler and four
wheeler market in the world by 2020.

MARKET SIZE

Domestic automobile production increased at 7.08 per cent CAGR between FY13-
18 with 29.07 million vehicles manufactured in the country in FY18. During April-
July 2018, automobile production increased 16.69 per cent year-on-year to reach
10.88 million vehicle units. Overall domestic automobiles sales increased at 7.01
per cent CAGR between FY13-18 with 24.97 million vehicles getting sold in FY18.
Two leading luxury car manufacturers, BMW and Mercedes-Benz, recorded their
best-ever half yearly sales in India during January-June 2018. Sales of BMW grew
13 per cent year-on-year to 5,171 units and sales of Mercedes-Benz grew 12.4 per
cent year-on-year to 7,171 units. Sales of electric two-wheelers are estimated to
have crossed 55,000 vehicles in 2017-18.

ROAD AHEAD
The automobile industry is supported by various factors such as availability of
skilled labor at low cost, robust R&D centers and low cost steel production. The
industry also provides great opportunities for investment and direct and indirect
employment to skilled and unskilled labor. Indian automotive industry (including
component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-
282.8 billion) by 2026.

Figure 1: current trends

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CHAPTER 2: RATIONALE OF THE STUDY

2.1 WHY THE SELECTION OF BMW AND AUDI?

The Luxury car sales grow fastest in 5 years in India.

Luxury car sales in India grew at its fastest clip since 2012 with a near 17 percent
jump in sales in 2017 as German carmaker Mercedes Benz retained its crown at the
top of the pile for the third straight year .Mercedes registered sales of 15,300 units
during the year, a growth of 16 percent over 2016 and was the only company to
report five-digit sales for the year. Arch rival BMW reported a 24.6 percent growth
at 9,800 units while Audi's tally was almost stagnant at 7,876 units.

Figure 2: Market share

Statistics shows that there was a phenomenal fluctuation in sales figures of BMW
over a period of time, whereas the sales figures of AUDI shows a continuous growth
over the same period. Along with that the sales figures of AUDI and BMW are near
about same since a couple of years. Hence it would be necessary to understand the
upcoming scenarios and the strategies adopted by both the rivalries.

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SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

2.2 HISTORY OF BRAND

2.2.1 HISTORY OF BMW

Initially, BMW started as a struggling airplane engine company, eventually

transitioning into one of the most well-known luxury car manufacturers in the
world. Throughout its history, BMW has survived wars that brought other
manufacturers to their knees. The luxury automobile manufacturer was on a mission
to prove that they were the epitome of excellent German engineering.

In 1917, the first BMW logo was created. It included blue and white, a reflection of
the Bavarian state colors. Over the years, the logo underwent several changes, but
it still stayed true to its roots – maintaining its original blue and white colors.

In 1923, BMW began its first metamorphosis when it expanded from manufacturing
airplane engines to motorcycles. This change was a big step for the company.
Before the transition, BMW had only produced engines as a standalone part. Now,
they were manufacturing an entire vehicle. They announced that their first
motorcycle would be called the R32. The design was considered to be so efficient
that the original 1923 concept is still used to this day in modern day BMW
motorcycles. After their purchase of Fahrzeugfabrik Eisenach, the third largest
automobile manufacturer located in Germany at the time, BMW began working on
their first car. Instead of producing vehicles at their plant in Munich, BMW decided
to use the former Fahrzeugfabrik Eisenach plant in Central Germany. BMW found
the inspiration for their first manufactured automobile from a borrowed design from
the Austin Motor Company.

Over the decades, the name BMW became synonymous with luxury. With its lines
of sedans and sports cars, BMW became one of the great cornerstones of the
automobile industry. Their attention to detail, amongst other things, resonated with
the market. BMW was also known for its daring and ingenuity. For example, in
1990 BMW opened a Research and Innovation Center in Munich, the first of its
kind in the automobile industry. The facility hosted an army of engineers,
managers, scientists, designers, and other innovative staff to collaborate and create
luxury top of the line vehicles.

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It was in 1994 that BMW finally set up shop in the United States. This newest move
allowed BMW not only to expand its global operations, but it also allowed the
company to manufacturer cars right in the backyard of its biggest consumer. The
first plant was built in Spartanburg, South Carolina and was completely dedicated
to producing the Z3 roadster. To this day, the plant continues to produce the Z3 as
well as the X3, X5, and X6. 1994 also saw the acquisition of the British-based Rover
Group by BMW. The Rover Group is best known for their sports vehicles like the
Mini, Mg, and Land Rover. Initially, BMW had big plans involving the Rover
Group, but they eventually sold the group in 2000, keeping the Mini model for their
own purposes.

BMW’s hunger for acquiring other automobile manufacturers didn’t end there. In
1998, BMW purchased the Rolls-Royce group. BMW was able to gain both the
naming rights for Rolls- Royce vehicles and the ownership of the brand.

2.2.1 HISTORY OF AUDI

AUDI AG is a German company which produces cars under the Audi brand. It is
part of the Volkswagen Group. The name Audi is based on a Latin translation of
the surname of the founder August Horch, itself the German word for “listen!"
Audi is headquartered in Ingolstadt, Germany.

The four rings

It's one of the most multi-faceted stories ever told in the history of the automobile.
The Audi emblem with its four rings identifies one of Germany’s oldest-
established automobile manufacturers. It symbolizes the amalgamation in 1932 of
four previously independent motor-vehicle manufacturers: Audi, DKW, Horch
and Wanderer. These companies form the roots of what is today AUDI AG.

August Horch

The story of Audi began in 1899 August Horch founded Horch & Cie. in Cologne.
It was there that he helped build his first car. After differences of opinion with the
board, August Horch left the company and formed a second car company.
Because his surname was already in use and was protected by trademark, he chose

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SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

its Latin translation for the new company. So "horch!" – or "hark" – became
"audi!". It was a brilliant idea that came from the son of one of August Horch's
business partners.

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CHAPTER 3: STRATEGIC ANALYSIS

3.1 EXTERNAL ANALYSIS

3.1.1 PORTER’S 5 FORCES EXTERNAL ANALYSIS -BMW

Substitutes:-

It is very tuff for the customers and the market to think about the substitute for
BMW, because it is has a very strong brand image and is known for its reputation
in the world.

Competitors:-

Since the automotive industry has a very competitive environment, BMW has so
many global companies as competitors who are equally competitive. In the car
manufacturing companies Audi, Mercedes Benz etc and the bike manufacturing
companies like Ducati, Yamaha etc give intense competition. BMW is developing
in the hybrid category, while Toyota is ahead and has a good share market in this
category with its hybrid car “PRIUS”.

Buyers:-

The customers depend on Reviews from magazines, websites etc. which gives a lot
of information about the cars and they also compare the same segment cars and this
information is widely useful for the customers and the information about pricing,
features and models of the cars play a vital role on the customer’s decision of
purchasing cars and most of them depend on these reviews. All these knowledge
sources gradually increase the bargaining power of customers. The company
designs attractive catalogues and brochures which attract many customers.

Suppliers:-

Suppliers play a major role in manufacturing the products of the company. The
company needs raw materials, labour, parts and services. BMW is very concerned
about the quality of its products so it is very particular about the suppliers and their
costs. The achievement of BMW also directly influences supplier’s profits and their
businesses.

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SHRI JAIRAMBHAI PATEL INSTITUTE OF BUSINESS MANAGEMENT

Barriers to entry:-

It is very difficult for a company to get into the Automobile industry and compete
with one of the best companies in the world. There is intense competition in this
market and for competing with a company like BMW; any new firm needs a lot of
capital, investment, funding, highly skilled technicians and engineers. It needs to
spend a lot of money on marketing and advertising. BMW has one of the best
technicians, engineering and designers who help in developing new model cars and
more innovative methods.

3.1.2 PORTER’S 5 FORCES EXTERNAL ANALYSIS –AUDI

Competitive rivalry:-

Rivalry in the automotive Industry is quite high. The other car manufacturers are
bmw, Mercedes, Toyota, general motors. There is a neck to competition among
these giants some of these sell cheap & some sell at premium prices & few sell
highly premium. They have different strategies to operate. Some firms produce
luxury cars, some produce high speed automobiles & few even produce supercars.

Threat of new entrants:-

Threat of new Entrants is quite low. Organizations ready to join this industry will
have to be potential enough to Compete with these existing giants. Market is
saturated & the new companies will not be enjoying enough shares of the market &
will face cut throat rivalry from the existing once.

Bargaining power of suppliers:-

Suppliers of Audi Ag are very happy to work with it. Infact for many suppliers Audi
is the best to deal with. Audi is very strongly linked to its suppliers. It’s a brand not
only for consumers but also for suppliers who happily suffice Audis orders in terms
of Quality & volume.

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Bargaining power of customers:

Bargaining power of customers is really high in automotive industry. There are so

many choices in the automobile industry because of the presence of so many brands
that people have high potential to bargain.

Threat of Substitute:

Substitutes for a car is not only a car. Substitutes are the products outside the
industry i.e. trains, Buses, bikes, aeroplanes, etc. E.g. A change in price of gasoline
will affect the services of these substitutes which indirectly will influence the
automotive industry.

3.2 STP ANALYSIS OF BMW AND AUDI

3.2.1 STP ANALYSIS OF BMW

SEGMENTATION

BMW Group has a strategy of targeting their customers by using segmentation.

Geographically, BMW Group targets the areas that are more industrialized like
Europe, North America, some parts of Asia and Africa i.e. China and South Africa.
More than 70% of sales of BMW cars are recorded in Europe and North America.

TARGETING:

BMW Group targets people who are aged between 25 and 40 because these people
have a successful image. By, these people have a clean modern look and a feel good
factor. BMW Group focuses on being labeled as a “luxury car” and “a foreign or
international car”, so BMW Group does not look to target one ethnicity or
citizenship.

The aim of BMW Group is to target customers that have an income of 25,000
Pounds.

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POSITIONING:

There is a quotation on the website of the BMW Group, which says that “the image
that BMW Group has positioned itself in exclusivity, performance, quality,
technologically advanced producer in the world. The markets BMW position
themselves are very competitive”.

Most of the people value “a feeling of safety” while using BMW, which positions
BMW Group ahead of its competitors in customer satisfaction.

3.2.2 STP ANALYSIS OF AUDI

SEGMENTATION

Audi mainly utilizes -

• Geographic Segmentation

Geographic segmentation is related to car buyers. The first decision Audi

make is which cars to market in which countries. Europeans drive much
smaller cars than Canadians. Within a country like India, Audi might also
segment the market into rural and urban areas. People who live in rural areas
are more likely to buy a Audi A3 than a Audi A7.

• Demographic Segmentation

Demographics is a general term for any measurable information about

consumers like –

1. Age - The very young and the very old do not drive, Take the Audi A6,
for example. A 20 year old is more likely to choose this car than a 70 year
old because it is flashier.

2. Gender – Certain Audi Models is made for Man’s and Women's also.

3. Income - A person's income level is a major influence on their choice of

car. Audi Produce Car For Every Income Group on world Level. And in
India A man Afford Audi on High Paying Job.

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• Psychographic Segmentation.

Psychographic segmentation is dividing the buyers in the market into groups

based on social class, lifestyle, or personality characteristics. These
variables heavily effected purchase making decisions. Audi aims for Upper
Middle Class to High class people, because it is a luxury brand.

TARGETING:

The Market Targeting of Audi is on 2 Basis first one is basis of Country and second
one is on the basis of Driving Type.

1. Country – Audi Targets Most of The countries around the word at this time
Audi Vehicles Are Produce in 9 Countries and Distributed to the Rest world.
2. Driving – Audi Cars Are available for both purpose driving or luxury use.

Audi India has sold 8,072 Car since January 2014 and changed their target 8000 to
8600.

Audi sold 1,575,480 Cars worldwide in 2013 with target of 1,500,000.

POSITIONING:

Audi Increase his Market positioning by giving stress on these point –

1. By choosing Right Competition like Mercedes and BMW.

2. Differentiation – Audi Launch Some Different and Impressive cars then

Mercedes and BMW.

3. Audi Find his (USP) Unique Selling Proposition to increase Position in

Market.

Audi was again one of the most profitable manufacturers in the automotive industry
worldwide in 2013. The Audi Group increase sales of 10.1 percent.

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3.3 4P STRATEGIES OF AUTOMOTIVE BRANDS (BMW &

AUDI)

3.3.1 4P’s of BMW

Product:

BMW Group is primarily focused on manufacturing high luxury two-wheel and

four-wheel automobiles for the global markets. The products in the BMW
marketing mix are premium sedans, SUVs and sports cars, which offer style,
performance and a status symbol. These products are generally categorized as the
‘niche’ market products.

Price:

The products are all priced at a ‘premium’ compared to its rivals in the category.
The BMW-associated brands like Mini Cooper and Rolls-Royce also convey the
same pricing strategy of the company. These brands are priced a bit higher that the
standard BMW product range.

Place:

BMW marketing mix place strategy covers its global reach to company dealerships
and even other premium car sellers. Many of the manufacturing units cater to the
local requirements and export considerable volumes to nearby countries.

Promotion:

The promotional strategy as a part of its marketing mix focuses on aggressive

advertising using media channels like TV, online ads, billboards, print ads etc so
that it can create a continuous brand awareness. BMW has been a constant
participant in various international rally races for a long time. They have been a
successful team at the F1 races on numerous occasions.

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3.3.2 USER FRIENDLY CUSTOMER BUYING

Find your BMW (Optional needs analyser)

Helps customers find the ideal vehicle for their needs

4 simple questions to select the right car:

• Where do you drive?

• How many people ride in your car?
• What needs to fit in your boot?
• What’s important to you?

Suggests preconfigured cars with options most bought by other customers in the
UK.

Genius live-chat

• Personal support Web chat or email Opening hours from 8am-10pm, 7 days
a week
• Vehicle configuration/ Check Delivery Times Fully configure a car, or Get
a proposal for a pre-built car with faster availability

Finance offer

• Full integration of BMW Financial services

• Easy-to-use finance calculator
• All national offers are included online

Retailer Online showroom

• Chat with a sales executive of the selected retailer

• Arrange a test drive
• Get independent car valuation of your vehicle
• Finalise all elements of the purchase

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Online credit check

• Full online credit check with 90 seconds feedback if auto accepted

• Payment of installment, deposit or full price online or by phone.

3.3.3 4P’s of AUDI

Product:

Audi holds an image of a luxury brand because of its products, its products are
unmistakable. The company offers different products to the market and its cars are
evolving with the change in technology. Audi makes beautiful cars with exceptional
power. The products in Audi marketing mix cater to a wide range of premium cars
i.e. sedan, SUV, sports etc. A8 is a benchmark for design and technology.

Price:

Audi is perceived as a luxury in its customer’s minds. Audi uses premium price
policy to cash its brand image. Since it is a competitive industry, the price strategy
in the Audi marketing mix is primarily based on competition pricing of premium
car manufacturers. Brand equity is high for Audi.

Place:

The place and distribution strategy in the marketing mix of Audi can be understood
as below. Audi is one of the biggest brand serving its customers throughout the
world. Audi’s headquarters are situated in Germany. The company has its
production facilities at nine locations across the world. Audi has established and
maintain its presence through an exclusive network of dealership and after sale
service centers.

Promotion:

Audi’s Logo holds the key to its promotional activities. Audi’s four overlapping
rings automatically create a brand image in customer’s mind. Audi has an active
participation in sponsoring many sport ventures. Besides television, print media and
internet marketing, Audi also engages celebrities to endorse the product. For
example, In India, celebrity filmstars launched Audi RS7 Sports Coupe.

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3.3.4 USER FRIENDLY CUSTOMER BUYING-AUDI

Audi India has revamped its website with more user-friendly interface and site
navigation offering map and geographical location-enabled dealer search to identify
nearest dealer.

"Digitalisation is at the core of Audi's strategy in products as well as across all Audi
touch points...(the revamped website) is a new and fresh approach to reach out to
our prospects and customers digitally and stay connected with them 24x7," Audi
India Head Rahil Ansarisaid in a statement.

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CHAPTER 4: MARKETING AND ADVERTISEMENT

ACTIVITES
4.1 BMW’s MARKETING ACTIVITES

4.1.1 BMW’S AGGRESSIVE ADVERTISING

BMW has always promoted its products as superior vehicles, confidently asserting
its position as an industry leader. The company has associated its brand with class
and prestige and has established its models as benchmarks in their respective
segments. BMW labels itself “The Ultimate Driving Machine,” further suggesting
its eminence as an automobile maker.

With the help of Austin-based advertising agency GSD&M, BMW launched an

alternatively designed campaign in 2006. Rather than focusing on automobile
specification and design, this series of print and television advertisements labels
BMW as a “company of ideas.” The advertisements portray the company as a
cutting-edge, idea-generating company that takes risks and enjoys its freedom as an
independently-held company. The television ads focus on stereotypical bureaucrats
who neglect or reject ideas and separates BMW as a company that “makes sure
great ideas live on to become Ultimate Driving Machines.” The print ads follow
similar themes of BMW’s freedom as an independent carmaker and the risks this
allows them to take.

BMW has also attacked other carmakers. For instance, BMW recently ran a separate
aggressive campaign pitting itself against Audi Motor Corporation, owned by
Volkswagen Worldwide AG. BMW, promoting its 3 Series line of cars,
sarcastically congratulates Audi for winning the “South African Car of the Year
2006,” then closes the advertisement by noting that the 3 Series was named “World
Car of the Year 2006.” Audi ran advertisements responding to BMW’s offensive
promotional strategy. Audi responded with an advertisement congratulating BMW
and noting that its A4 model was the winner of six consecutive Le Mans 24 Hour
Races. The A4, however, has not reached the sales or consumer satisfaction level
as many of its competitors, including the 3 Series.

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Figure 3: BMW Vs Audi -Print Ad

4.1.2 BMW JOINT-CAMPAIGN WITH HD RADIO

BMW began campaigning with the HD Digital Radio Alliance to promote the High
Definition radio service. BMW, which offers HD radio in their cars, provides the
Alliance with a substantial corporate customer to promote its services. Peter Ferrara,
the President and CEO of the HD Radio Alliance, states that “to have BMW as a
marquee name to implement HD Radio is uniquely satisfying,” suggesting that
BMW’s strong brand identity will in turn help HD Radio market its product.

4.1.3 BMW Films

BMW Films, launched in 2001 to promote the company and its cars, was a series
of revolutionary short films that showed BMW vehicles as the centrepiece of
several action-packed plots. Television commercials encouraged viewers to see the
films on the company’s website; the films were viewed nearly 100 million times.
The films were directed by prominent film makers and used intricate plot twists and
effective dialogue to accentuate the features of the vehicle in the movie. Although
well-made and entertaining, the movies were very expensive advertisements that
said little about the functionality and unique properties of the car.

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Figure 4: BMW films

4.1.4 TED Talks

BMW has forged a partnership with TED Talks, an annual conference in California during
which 1,000 thinkers are invited to spread their messages and preach their ideas. The TED
(Technology, Entertainment, and Design) provides a platform for BMW to spread its ideas
and promote its company as a haven for productive and inspiring ideas. As an innovator,
BMW fits well with the spirit of the conference, and it provides another outlet through
which the automaker can share its ideas, beliefs, and concepts.

4.1.5 3 SERIES SPECIFIC ADVERTISING

The 3 Series is a well-established leader in the mid-level luxury performance sedan

market, and BMW promotes the model aggressively with clever advertising. Recent
advertisements have shown how the 3 Series has developed throughout the years,
including one spot that shows the changes the vehicle has undergone as it speeds
around a track.

Another spot, which can be found on BMW’s North American website, explains
how the 3 Series has grown to become a cultural icon and has obtained a loyal
following.

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4.1.6 ADVERTISMENTS
1. Night Vision.

Figure 5:BMW night vision-Print Ad

Bmw focusing on their own better technical aspects and features of their products.
Here in this print ad, emphasis had been laid on their feature of the night vision
technology which was introduced by them.

2. BMW M POWER

Figure 6: BMW M power-Print Ad

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Yup, when you go from 0 – 100 in 5.2 seconds, where else will your heart go, but
out of your mouth signifying the super speed of the car, again showing the
functionality.

3. TV COMMERCIAL-1

The BMW Festive Film. #SheerOwningPleasure.mp4

The commercial focuses on the 360° plan which allows the purchase of the bmw
car by low down payment and interest rates, assured buyback, complimentary
service and maintenance during the festive season.

4. TV COMMERCIAL-2

BMW India Don't Postpone Joy TVC.mp4

This ad was specifically created to target many in the Indian community who
believe in saving for the future and postponing the luxuries of life. The fairly
obvious endgame is to improve luxury car sales. That’s not hidden at all in the
conclusion of BMW’s commercial. (jason, 2016) (Srivastava, 2016) (Essays U. ,
2017) (Boeriu , 2016) (Dudovskiy , 2016) (Grimshaw, 2014)

4.2 AUDI’s MARKETING ACTIVITES

4.2.1 Direct Marketing

One of the elements in Audi Company’s integrated promotional mix is direct
marketing. It is offering a very special surrounding for its consumers to make them
feeling good in all the way of purchasing their new expectative cars. After stepped
in the Customer Center, consumers will be welcomed by Audi Company’s staffs
and they will consult with the consumer to plan their schedule for the day according
to the objective they want to do. The schedule will be included a highlight activities,
factory tour. The tour guide will show them how to produce the Audi Cars by using
advance technology and accuracy workmanship way. Another highlight activity is
visit to Audi shop and Audi museum shop. Audi shop stocks top-quality branded
goods and up market lifestyle articles. In the Audi museum shop you are able to

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browse all the attractive tradition collection and a range of model historical cars are
stored in it. At the end of the day that is the moment of the consumers to pick up
their new car.

4.2.2 Sales Promotion

There is a sales promotion conducted by Audi Company is called as “Happy
Anniversary” and “Happy Oktoberfest”. This program is available for all the range
of the Audi owners. To let more consumers join for this program, Audi Company
has provided all the styles, sophistication and performance of its cars in the
exceptional prices. Furthermore, consumers also able to test-drive an Audi of their
choice to discover which Audi are suitable for them.

4.2.3 Public Relations

Public relations refer to a firm’s communications and relationships with all types of
its customers, such as publics. A very good news which is bring from Audi
Company is that Audi will organizes the INI and HIN events, which serve as an
education forum for everyone. And the INI.JUGEND.KOLLEG and the
HIN.JUGEND.KOLLEG is just focus on the youth which are talented and
interested in the promotion of technologies. During the series of the events, those
participants will gain an opportunity to discuss and obtain some information about
the current social and technical topics. A clear and accessible of the knowledge will
be brought by a team of well-known speakers from Audi partner universities. With
it, Audi Company is able to get more employed with young talent. At the same
times, it can gain a good image from its customers and stronger its Brand Name
throughout the country or the world.

4.2.4 Product Placement

Another promotional mix element using by Audi Company is product placement. It
is a non-personal selling marketing strategy. This approach is not only a lower cost-
spending but also a very efficient way to gain more patron exposure to the users.
Recently, Audi Company is using this approach by launching a free iPhone game
which is called “A4 Driving Challenge 2.0”. By choosing iPhone to expend Audi
Company’s customer flows as iPhone has gain a high performance of sales in the
market segmentations from upper-upper to upper-lower. Audi Company is just a
newest brand in using this non-traditional selling method in order to extend sales
and to draw in more future clients as well.

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4.2.5 Official web site

On the other hand, it is a new trend that all companies will use advance technology
to connect with their existing or incoming customers like social wed site or their
own official web site. Same as other company does, Audi Company also having
their own official web site which is http://www.audi.com/com/brand/en.html. By
browsing their pages, customers are able to obtain latest information, latest
improvement and whether there is any latest new product is introduced into market.
If consumers are wish to buy a new Audi, there is a fast and convenient way to
check in the website, it has uploaded a list of details for all types of the Audi.

4.2.6 COMMERCIALS

PRINT ADS
1. AUDI A3 –CO2 EMISSION

Figure 7: AUDI -CO2 emission-Print Ad.

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2. AUDI LED TECHNOLOGY

Figure 8: Audi -Led technology Ad

Focusing on the technical aspect of the product which gives clear message that
led technology is so efficient which makes even night look like a day.

1. Audi Rs 4 – Horsepower

Figure 9: Audi Horsepower -Print Ad

The visuals are so appealing, which represents the power and speed of so many
horses in a single compact car

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4.3 COMPETITIVE RIVALRY –AMBUSH MARKETING

• AUDI : YOUR MOVE,BMW

• BMW: CHECKMATE (Response to Audi)

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• AUDI: YOUR PAWN IS NO MATCH FOR OUR KING

• BMW: GAME-OVER

Figure 10:Ambush marketing

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4.4 ONLINE RIVALRY

In the social media world, Facebook is the center of universe. Audi’s branded fan
page has, as of today, 1.5 million fans, while BMW just passed the 1.9 million mark.
Along with the official fan page, many other BMW-related fan pages can be found
in the popular social network, including our own with over 2,000 followers.

On Twitter, BMW falls short. The expected twitter.com/bmw name is not leading
to the company’s profile, but rather to a person not-related to the brand. Audi’s
presence on Twitter can be found, among many other profiles, at Twitter.com/audi,
where the U.S. operation of the company has over 11, 000 followers. One of
BMW’s Twitter accounts can be found at Twitter.com/bmw_global where 3,000
followers are signed up for updates

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CHAPTER 5: DISCUSSION AND CONCLUSION

Advertising Age crowns Audi as the winner in this marketing comparison, taking a half-
star more than BMW.

“These are two premiere marketers in an incredibly competitive category. The emphasis on
engagement over impressions was a notable feature of both marketers’ media strategies.

BMW is doing a lot of things right with its brand in media, particularly in online and
mobile. But Audi nudged ahead on the basis of a very dynamic television and video strategy
that helped elevate and create distinctiveness for its brand.

There’s a lot that goes into driving sales beyond just advertising, but a 27.1% year to date
increase in Audi’s sales is hard to argue against.”

we expect more marketing initiatives from both automakers and we are ready to bet that
mobile, social media and enthusiasts will play an important role in their advertising efforts.

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REFERENCES

Audi Marketing Mix (4Ps) Strategy. (n.d.).

BMW Marketing Mix (4Ps) Strategy. (n.d.).

Boeriu , H. (2016, 09 22). BMW vs. Audi: Who Has The Best Media Strategy?

DeMattia, N. (2017, 03 14). Best BMW Ads Of All Time.

Dudovskiy , J. (2016, 04 22). BMW Segmentation, Targeting and Positioning.

Essays, M. (2017, 12 05). The Global Business Strategy Of Bmw Group.

Essays, U. (2017, 07 07). Audi Marketing Mix Analysis.

Graham, T. (n.d.). History of the BMW.

Grimshaw, C. (2014, 05 22). BRAND SPEND ANALYSIS - A new ad strategy may be

on the cards if BMW is to repair its damaged image.

jason. (2016, 05 22). BMW vs. Audi: The Best Media Plan on Four Wheels?

PTI. (2018, 01 16). Audi India bets on digital medium to tap customers.

Srivastava, A. (2016, 09 26). Audi & BMW – The Roaring Rivals.

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