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Bmw Marketing Plan

Autor:   •  January 8, 2016  •  Case Study  •  777 Words (4 Pages)  •  586 Views

Page 1 of 4

Executive Summary

BMW is preparing to launch a new commercial car with new technological fuel cell engine, which runs on pure hydrogen and has no emission. Even the car industry has huge mature market, its segment in hydrogen vehicles are almost new and developing. Our product offers a unique combination of advanced features, sustainability, technology, safety and status at a value-added price. Company is targeting to a specific segments in the consumer market, taking advantage of opportunities indicated by increasing demand for environmental friendly cars with comfortable, safe and sporty driving functionality in the new developing market with low level of competition.

The primary marketing objectives is to achieve first-year worldwide sales of 1,600 units. The primary financial objectives are to achieve first-year sales revenues of $176 million, take governmental subsidization for emission-free car and keep losses under $170 million, and keep increasing sales in the second year, and also cooperate with competitors in investing in hydrogen fuel infrastructure.

Current Market Situation

History of BMW starts in 1916 by merging companies of Karl Rapp and Gustav Otto. Engine construction and manufacture experience developed through years, bringing to BMW huge success in car market. Company created one of the strongest brand names and has one of the biggest number of loyal customer in the market. Emission-free cars, especially hydrogen vehicles, has a huge potential in being a long term trend or, looking even more further, to replace internal combustion engine in the cars. Research shows that the governments are investing to infrastructure, and the countries like Japan, USA, United Kingdom, Germany and other European countries forces the socialization of new technology.

There’s not much competition from hydrogen fuel models in the market, and therefore there is no intense demand. However industry consolidation continues and governmental subsidies could make it profitable. Toyota, whose Mirai is the first commercial hydrogen vehicle, plans to sell worldwide approximately 700 cars in 2015, increase up to 2000 cars in 2016 and reach 3000 in 2017. Gaining market share in this environment looks like as a potentially successful job for BMW, but company must carefully target specific segments with features that makes BMW brand name valuable and prove the trust of loyal customers. Also to gain a low budget market BMW should transfer the technology to MINI models, and develop a car for this segment.

Market Description

BMW’s market consists of consumers who prefer to drive an environmental friendly and safe vehicle, which also has the features of a dynamic and comfortable car. Moreover BMW h8’s market is in the high price segment due to the specifications, values and brand name. Specific segments being targeted during the first year include motorsport and corporations. Table A1.1 shows how the BMW h8 addresses the needs of targeted consumer and business segments.

In the first year buyers can choose 4-seats specifications of BMW h8. There will be one type of high performance and high efficient fuel cell engine within Hydrogen codes and standards, and emits only H20 as a vapor. A system accelerates h8 from 0 to 100 km/h in 5.7 seconds. The refueling will take no more than 4-5 minutes, and expected total range is 550 km on a full tank in comfortable mode. Table A1.2 shows comparison of fuel economy expressed in MPGe for hydrogen fuel cell vehicles. BMW h8 has two hydrogen tanks with a three-layer armored structure made of high tech carbon fiber and consisting other materials that protect hydrogen inside and from external impacts. Company will provide variety of exterior and interior basic modifications and also provide Build Your Own program for customers to choose colors, materials and other options.

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