BMW s COMPANY OF IDEAS CAMPAIGN

CASE STUDY BY, GROUP-4

INTRODUCTION
The Bavarian Motor Works, commonly known as BMW is a German automobile, motorcycle and engine manufacturing company founded in 1916. It is head quartered at Bavaria, Munich, Germany. The BMW North America LLC is a subsidiary of the BMW AG group. The case talks about an advertising campaign by BMW North America LLC during May 2006 promoting BMW as a "company of ideas. In doing so, the company said that they wanted to take their brand beyond its traditional association with the so-called yuppies , in the age group of 20-30, and attract a wider section of luxury car buyers in the US. The company's new marketing campaign was aimed at the creative class, an influential demographic segment in the US. The case highlights the rationale behind the company's new advertising campaign and the initial reactions it received from analysts, marketing experts, and consumers.

BACKGROUND:
BMW was founded in 1913, basically to manufacture aircraft engines in the Munich district of Germany. In late 1920s they started manufacturing cars, and in 1928 came up with their first car marketed under the name BMW 3/15. During world war 2, BMWs car business took a back seat as it started manufacturing aircraft engine once again. In 1952 they started manufacturing cars again. In 1959, there were talks regarding negotiation merger with Daimler-Benz, but for the good sake of the company, it was unsuccessful. In 1959, they launched BMW 700 , which was a great success. This earned them the reputation as a manufacture of sports sedan. In 1971, they moved into their new headquarters in Munich.

 1992, BMW outsold Mercedes for the first time in Europe, and became the first European car maker to operate in US plant. In 1994, they acquired British car manufacturer ,MG Rovers and gained ownership of the companies successful brands. In 1990, they entered into joint venture with Rolls Royce Motors. In 1998, Volkswagen bought Rolls Royce for 430 million Euros by outbidding BMW but did not have rights over Rolls Royce trademark. In 2000, BMW sold MG Rovers to the phoenix consortium, Land Rover and Range Rover brands to the Ford Motor Company. In 2003, BMW launched its very famous model Rolls- Royce PHANTOM. This high priced model went on to sell a record of 769 units in 2005.

THE COMPANY OF IDEAS CAMPAIGN

After 2005, the company was in a need for change because: 75% of the luxury car buyers did not consider BMW vehicle. New segment products entered the market. To increase global sales. To reach out to new customers and their values.

TARGETTING THE CREATIVE CLASS

The campaign was aimed at the creative class ,consumers who shared many of BMWs principles-an independent spirit, a drive to challenge conventional wisdom, and an appreciation for a brands ability to offer both substance and style. An idea inspired by Richard Florida, a Carnegie-Mellon University professor. This class of people lived by the power of ideas, and admired companies and people who championed creativity and ideas.

CAMPAIGN
Campaign was done through various media such as newspapers, magazines etc.

The Campaign tried to communicate BMWS independent freedom.

They gave little emphasis on high performance features. They gave more emphasis on radical ideas and designs. They wanted the people to know ,how it gets to be known as The Ultimate Driving Machine. Showcased environmental sensitive advertisement(745h ). Placed adds in lifestyle publications, magazines, websites etc.

SWOT ANALYSIS
STRENGTHS Innovation Strong expansion plan Brand Management Passion and dedication WEAKNESSES Confusion among customers Inadequate market research Lack of critique support

OPPORTUNITIES
More focus on branding Launch of new plants

THREATS Increased competition Changing consumer behavior

REACTIONS TO THE CAMPAIGN

Campaign will win advertising awards, by the expansion of customer base.

More people will buy, with a change in perception among customers.

Had come long way since 1980s and will go further ,as long as BMW do not change its philosophy on which it build the ultimate driving machine .

RECOMMENDATIONS
BMW was insecure and felt threatened by the increase in competition.
A bad idea by BMW to try to expand its customer base. Should not try to be, everything to everyone", as it will lead to dilution of brand. BMW should stick to what it is at best at ,The Ultimate Driving Brand.

THANK YOU
Sagar Sen 1321234

Jessica Varma 1321250

Harpreet Kaur 1321248 Tasha Tresa Jose 1321265 Vishnu Salimkumar 1321241 Priyanshu Srivastava 1321258