Launch of the BMW 5 Series in Europe - Strategic Marketing

Résumé du document

Here's announcing an overwhelming Enterprise opportunity: Replace the the old version of a Série 5 and you could win an amazing market share - Market is flourishing with middle or high range cars and the competition is vast - Competition is topseeded (3A segment) - Either opt for a Renault or Safrane or even better is Mercedes for Classe E, Audi 100 Traditional competitor is synonymous to the Classe E (People Carriers). This Class E was launched in June 1995, 6 months prior to the launch of the new Série 5 The Class E launch took place on 5th December wherein,the 1995 Sales objectives was equal to 11 000 cars (2 times the sales of the old Série 5)

Extraits

[...] Our Plan The market Development strategies and action plan The market The environment Constant sales in the car sector in France Insurance and gas oil price are very high In average, one new model in the competition class a year 67% of the car sold in the Série 5 competition class are diesel The brand image, the name and its perception are very important Two distribution channels by concessionaires and agents The demand General characteristics 2,5 million of cars sold in France in 1994 New speed limit regulation slows the purchase of sport cars down Opportunity in the professional market ? Growing importance of B2B High potential in the diesel car market: In of the Série 5 buyers asked for a diesel . [...]

[...] Stock of separate parts Means of action and calendar Car presentation to specialized press, and then to daily papers Invitation of 20 VIP in the head office in Munich to show the car Trial sessions Public launch : (to customers, but to businesses, too) Pre-launch in the concessions for selected customers Launch party Trial rounds Multiply the possibilities for the customer to try the car and fill the gap between expected quality and reality Conclusion In that way, we keep the decisive advantage of the brand image of BMW We improve the customer confidence in a high and low-cost service quality We fill the gap between consumer expectation and final satisfaction As such, we get closer to consumer intimacy ! [...]

[...] BMW : the Série 5 launch General presentation Enterprise opportunity : to replace the old version of Série 5 and maybe win market share Market of middle or high range cars Competition class (3A segment) : Renault's Safrane, Mercedes' Classe Audi 100 Traditional competitor = Classe launched in June months before the new Série 5 Launch on 5th December Sales objectives = cars times the sales of the old Série BMW France in 1994 Since 1990, the sales in volume of BMW France have been decreasing Since 1990, the profit increased from 21 to 34 Million euros In 1994, BMW France sold cars = of market share in volume Large products range, but slow evolution Problematic How to efficiently maintain or increase a market share in a competitive market, launching a semi-new product ? How to change customer intimacy with advertising ? [...]

[...] The demand 3 purchase criteria : Services quality (mobility needs a constant assistance, after-sale services, protection against stealing) Economical aspect (purchase price + cost of ownership) Social status (club, values, communication mode) The competition Market penetration Low market share of the Série 5 in the competition class Renault's Safrane market share, leader on the segment) Mercedes' Classe E market share) Peugeot's 605 market share) Citroën's XM market share) Série 5 market share) Audi 100 market share) The competition Comparative analysis Higher awareness level and better image than the Classe E and Audi 100, but it is decreasing High fidelity and conquest levels but lower than the Classe E The competition Competitors' commercial strategy in comparison with the Série 5 Renault's Safrane : same price range, image of comfort and quality + social acceptation. Mercedes' Classe E : far more expensive, image of security and comfort Peugeot's 605 : cheaper, image problem Citroën's XM : far cheaper, image problem Audi 100 : image of security and quality, no social status research. [...]

[...] The development opportunities Competitive advantages of BMW Very dense sales network (212 sales point) Active formation policy, strong relation with the client Best brand image note = 7/10, ex æquo with Safrane The Série 5 has a star product : the 525i of the sales in volume), but a large range : 8 different motorizations The development opportunities Série 5 purchase motivations (only a perception, before use Robustness, in priority (evoked by 45% of buyers) : finish and equipment quality Good performance (20 à Profitability of the investment : middle/high range price, possibility to sell back Conductibility, driving pleasure, comfort Reputation of being esthetical Good correspondance with needs The development opportunities but a few perceived weaknesses to fight with Still, higher cost of ownership than the Safrane Reputation of not being safe Ecological progress has to be made Buyers disappointed by equipment, sales network, and esthetics (due to long life product cycle = 5 years on average) Development strategies and action plan The product strategy The adequacy between product and market Services quality : a constant assistance Economical aspect : low purchase price + low cost of ownership Social status : prestige image to renew An issue : huge discrepancy between customers' perception before use and final satisfaction The product strategy Positioning BMW = specialized brand in the middle/high range berline Quality operator Since ever characteristics = dynamism, innovation and prestige Security concern + driving pleasure 10% cheaper than Mercedes The product strategy Declared target, in comparison with the Classe E B to B to B : 95% men of them are married and 75% have no or one single child 45-year-old men hard to please experts Citizen of them living in Paris High educated Very active businessmen (liberal professions, CEOs) or retired people The product strategy Price strategy 10% cheaper than Mercedes High price (but low cost of ownership) As price competition is not an option, and as to maintain our high fidelity level, we should keep the same price range than before. The product strategy Promotion 3,5 to 4 Million euros planned. [...]