outline marketing plan
BMW MARKETING PLAN BRIEF
1. THE BACKGROUND
The BMW Group is one of the world’s most successful manufacturers of automobiles and motorcycles and ranks among Germany’s largest industrial companies. It is also the only automobile company in the world represented in all relevant premium segments, with the brands of BMW, MINI and Rolls-Royce.
The UK is a key market for the business and the company has invested £1 billion since 2000 in developing and modernising its manufacturing facilities for its three brands. In 2008 BMW UK turnover was £3.3 billion of which the BMW brand accounted for sales of 113,132 cars. The company sells to private individuals via its retail distributionnetwork which employs around 11,000 staff across 148 car dealerships (fleet managers who purchase large volumes deal direct with BMW UK). These dealerships are independently owned businesses and are not part of the BMW group although they do receive financial incentives from BMW if they meet agreed sales targets. The relationship between dealer and manufacturer is a close one with BMW responsible for major brand building campaigns whilst the dealerships often run their own small scale campaigns such as to persuade customers to use them for the servicing or repair of their car or to invite customers to new car launches.
2. STRATEGIC CHALLENGE
Sustainability is a key objective for BMW and the company has already taken steps to improve fuel efficiency across its range of cars. Taking this one step further, in 2011 BMW launched the i sub-brand as well as the BMW i 3 and BMW i 8 concept cars. BMW i stands for sustainable mobility in the premium segment and coincides with a belief that premium cars are beingincreasingly defined by their sustainability. In 2013 the i 3 concept car will enter full production and will need to compete not only with other electric/hybrid cars such as the Toyata Prius and Nissan Leaf but also with combustion engine cars that a consumer may decide to purchase. As the first BMW produced all-electric car, theBMW i 3 faces a number of challenges not least is its price: £35,000. It also has an image issue in that the company’s existing products are positioned as ‘the ultimate driving machine’ which brings to mind speed and a hedonistic lifestyle which is quite a different proposition to the one normally associated with electric or dual fuel cars. However, consumer perceptions may vary based on age, income, education level etc.
The car itself comes with a number of innovative features including an electric bike, the i Pedelec, which will allow urban buyers to cycle for the final part of their journey. Two i Pedelecs can be folded and mounted in the back of the i3, and their batteries recharged.The car’s cabin features a host of sustainable materials, with tweed-like wool used on the seats as a nod to its focus on British fashion. Wood also features prominently on the dashboard.There are flat panels rather than dials, and the look is very minimal to make the car as intuitive to use as possible.
3. MARKETING AND SALES AIMS
• Achieve sales of £17.5m (500 cars) in 2013
• To build a reputation as a manufacturer of premiumelectric cars
4. CUSTOMER SEGMENTS
Current BMW drivers migrating to an electric car.
These customers have already bought into the brand and are the lowest cost to convert.
Taking the whole BMW range:-
Series 1. The most cost effective model and usually purchased by aspirational drivers who want to drive a BMW but cannot afford a higher spec model. This segment in the main is unlikely to purchase a BMWi3 for affordability reasons
Series 3. This segment is most likely to purchase due to affordability and currently drive a mid range BMW.
Series 5, 6,7, less likely to purchase as like the power and speed of a combustion engine. The BMW i3 would also be considered too small to a traditional driver of one of these cars
Series X – Four wheel drive owners – unlikely to compromise and change to a smaller electric car
Z4/ M Series –Cars traditionally purchased for speed/power
The most likely segment of the current database to purchase would be 3 series drivers although the i 3 may be purchased either as a second car or for a spouse by a driver of one of the large 5,6 or 7 series cars (research shows that 91% of electric car owners already own another car). The database will need to be segmented into model purchase and price paid in order to be able to target those most likely to convert.
5. PRODUCT LAUNCH
The 2013 launch BMW UK saw a concept store in London being opened and for the first stage of the launch it was envisaged that only a small number of dealerships located within major urban areas will be selected to sell the i 3. For the foreseeable future the i3 is likely to account for only a very small proportion of BMW car sales in the UK.
Your Re-sit Task
Using the case study provided on BMW i3: answer to the question below:
Based on your knowledge of marketing strategy produce an outline marketing plan for the next year for BMW i3.
You will need to conduct a thorough external marketing audit (PESTEL) for BMW i3. Then use a SWOT to analyseand consider additional external/internal factors. Use all this information to review some of the key strategic options available to the company, i.e. You need to state your objectives for the marketing plan you are recommending for the BMW i3 . Use the marketing mix to highlight key tactical issues the BMW i3 will face as it grows its market within the UK.
Your plan should include the application of a range of models theories and concepts from the Principles of Marketing Management course content.
Recommended structure for the plan:
1.1 General discussing to introduce the BMW i3
2.0 External Audit – PEST/PESTLE
2.1 Make sure this focuses on the external analysis for the i3 and not any other BMW model.
3.1 Again make sure your analysis supports the BMW i3.
3.2 Complete your SWOT with your understanding of the strategic issues arising from your SWOT analysis which are necessary to build your marketing plan
4.0 Marketing objectives
4.1 Produce 3 / 4 objectives to support your plan – remember your objectives need to be SMART.
4.2 This is where you take ownership of the plan –it is your recommended plan based on your analysis that you are now presenting. You do not analyse BMW i3 anymore. The plan is an outcome of all of your analysis complete in your PEST and SWOT.
5.0 Tactical issues of plan to be discussed using the marketing mix i.e. 4 / 7 Ps
5.1 In this section you present your recommended marketing plan using the marketing mix. What do you think is the right plan for the continued growth of the BMWi3
6.0 Budget, Implementation & Control
6.1 While you might not be able to get budget costs, you still need to recognise how the budget will be created and how your plan will be implemented and controlled
Supporting information can be found in Mintel and Keynote, these databases can be sourced via the online library.
Word Limit: 3000 (+/- 10%)
Deadline: Monday 14 July 2014 11.59pm via turnitin.
Examine the learning outcomes (a,b,c,d,e,g,h)
LERNING OUTCOMES*: (Max of 10)
Knowledge and Understanding
a) Appreciate the value of the analytical tools and techniques available to marketing professionals when evaluating the marketing environment and developing marketing strategies;
b) Understand the vital necessity of focusing on the customer and the marketplace as the foundation of marketing planning;
c) Critically evaluate the marketing mix of an existing organisation contrasting application to theory;
d) Propose and present an outline marketing plan;
e) Appraise tactical marketing decisions based on situation analysis and in line with strategic marketing plans.
g) Explain and appraise marketing concepts, theories and models clearly and apply these critically to existing organisations;
h) Concise dissemination of information relating to investigative actions;
Mode of working
This is an individual assignment. The University of Northampton policy will apply in all cases of copying, plagiarism or any other methods by which students have obtained or attempted to obtain an unfair advantage.
Format for the submitted work
The assignment should be written for a business audience and presented appropriately. The word limit is 3000 words (+/- 10%). Harvard referencing must be used throughout.
You must submit your assignment electronically.
You will receive an email confirmation and the system will record the date and time you submit. In the unlikely event of work getting lost, the receipts will show that work has been submitted. Without a receipt there is no evidence to show that the work has been undertaken, and you may be given a “G” grade.
All e-copies must be sent by 11:59pm of the deadline day.
An area to submit your assignment will appear on NILE as the assignments become available.
Grading / feedback guidance
The table at the end of this document serves as a general grading guide for students to assist in the self-assessment of their work. Lecturer feedback will also include specific remarks on strengths and aspects for improvement as well as overall comments on the assignment as a whole.
This assignment carries a weighting of 60% for The Principles of Marketing Management module.
GRADE CRITERIA: Level 6
An outstanding Distinction An exceptional first A+ Work which fulfils all the criteria of the grade below, but at an exceptional standard.
A very strong Distinction A good First A Work of distinguished quality which is based on a rigorous, comprehensive and detailed knowledge base, including awareness of the provisional nature of knowledge and its theoretical, ethical and conceptual dimensions, together with its wider context and implications.
Work will demonstrate sustained ability to engage in analysis of new/abstract data and situations, synthesise data and concepts to design novel solutions, critically evaluate evidence and its contradictions, and confidence in application to define and propose resolutions to complex problems relevant to the field of study or assessment task. This will be the basis for authoritative arguments and judgements and work which meets professional standards in relation to a full range of key skills.
There will be strong evidence of competence across a range of specialised skills using them to plan, develop and evaluate problems solving strategies, to challenge received opinion and develop reflective judgements and reports. Clear evidence of capability to operate autonomously with minimal guidance in complex and unpredictable contexts using a wide range of innovative and standard techniques will be demonstrated. Outputs will be communicated effectively, accurately and reliably.
A clear Distinction A First A- Work of very good quality which displays most but not all of the criteria for the grade above.
A Distinction A high upper second B+ Work of highly commendable quality which clearly fulfils the criteria for the grade below, but shows a greater degree of capability in relevant intellectual/subject/key skills.
A very strong Merit A good upper second B Work of commendable quality based on a strong comprehensive/detailed knowledge base for the field of study, including an assured grasp of concepts, principles and major theories, and demonstrating some awareness of the provisional nature of such knowledge and understanding together with its wider implications. There will be evidence of considered and confident analysis of new/abstract data/situations, synthesis of data/concepts, critical evaluation of evidence and effective application of knowledge skills to address complex problems. The ability to work effectively within professional contexts with minimum direction to meet objectives and take responsibility for quality of outputs and criticize them will also be evident. There will be evidence of capability in all relevant subject based and key skills, including the ability to self-evaluate and work autonomously with minimal direction to use effectively a range of innovative and standard techniques in complex and unpredictable contexts.
A strong Merit An upper second B- Work of good quality which contains most, but not all of the characteristics of the grade above.
A clear Merit A high lower second C+ Work which clearly fulfils all the criteria of the grade below, but shows a greater degree of capability in relevant intellectual/subject/key skills.
A Merit A good lower second C Work of sound quality based on a firm detailed/comprehensive knowledge base for the field of study and its developing and provisional nature, including a good grasp of current theories and issues both abstract and practical, together with the ability to organise and communicate effectively. The work may be rather standard and limited in its insight/theoretical grasp or depth, but will be mostly accurate and provide some evidence of the ability to analyse the new or abstract, synthesise data/concepts, critically evaluate and apply appropriate methods/techniques, with minimal guidance. There will be no serious omissions or inaccuracies and there will be capability in professional contexts. There will be good evidence of ability to take responsibility for own learning, some capability to challenge received opinion and make use of a range of resources to form judgements. Evidence of the ability to operate with autonomy in complex and unpredictable situations, selecting and applying appropriate techniques will be demonstrated within limits. There will be competence in relevant key skills.
A very strong Pass A lower second C- Work of capable quality which contains some of the characteristics of grade above.
A strong Pass A high third D+ Work of satisfactory quality demonstrating a reliable knowledge base and evidence of developed key skills and/or subject based skills, but still containing limited evidence of analysis, synthesis, evaluation or application, or of appropriate detail or skill application.
A Pass A good third D Work of broadly satisfactory quality based on a knowledge base which is coherent and of appropriate depth/detail for the field of study, including an awareness of current theories and issues and some key theories, appropriately presented and organised. However work will be primarily derivative, with limited evidence of autonomous/creative analysis, synthesis, and evaluation or application. Although there will be limits to knowledge and intellectual skills, such that work may contain omissions, there will be some evidence of an ability to deploy established techniques of analysis and enquiry, sound conceptual understanding and capacity to manage own learning and communicate effectively and appropriately. There will be some evidence of operating with autonomy in predictable contexts, but less evidence of ability to operate in more complex or unpredictable situations. However, an ability to select and apply a variety of standard and possible innovative techniques, and to meet threshold standards of competence in relevant key skills, will be demonstrated.