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MARKETING PLANBMW – 4 Series Coupe“Designed for Driving Pleasure”PRESENTED BY:Group 6:Asmaa Asad (Group Leader)M. Omer LeghariM. Shazer Alim KhanZara SyedArham WasimZubaria AsmaSalsabeel SattarAyesha Manzoor1

TABLE OF CONTENTSINTRODUCTION OF THE COMPANY . 4MARKETING OBJECTIVES . 5SITUATION ANALYSIS . 6SWOT ANALYSIS . 8PORTER‟S ANALYSIS . 12PESTLE ANALYSIS. 15TARGET MARKET . 18PRICING STRATEGY . 19DISTRIBUTION AND LOCATION STRATEGY. 20PROMOTIONAL MIX . 21BUDGETS . 24CONTROLS . 28CONCLUSION . 302

EXECUTIVE SUMMARYBMW is one of the top luxury cars manufacturers in Europe. They recently launched their MINICooper in Pakistan, which turned out to be a success for the company. This report proposes amarketing plan to introduce and promote BMW‟s new 4 Series Coupe in Pakistan.The report consists of the marketing objectives defined by BMW in their mission statement andvalues, a detailed situation analysis. The strengths, weaknesses, opportunities and threats areevaluated in detail using the SWOT Matrix. Moreover, to determine whether the new series havethe potential to be profitable in the new market, the Porter‟s Five Forces Model is applied.Next we have defined the market and customers that are to be targeted in this marketing plan.Discussed in detail is the pricing strategy and initial budget for the company. Distributionstrategy discusses the BMW‟s retailer in Pakistan that has been its reliable partner for manyyears and can be trusted to distribute the new 4 series effectivelyLastly, we have the proposed advertising and promotional strategies under the topic ofPromotional Mix. It‟s essential to measure the effectiveness of any plan/strategy is executed;keeping this in mind we have built controls in our plan to determine the effectiveness of thestrategy.3

INTRODUCTION OF THE COMPANYBMW (Bayerische Motoren Werke AG or Bavarian Motor Works), a Germany basedautomobile, motorcycle and engine manufacturing company, founded in 1916 is now one of theleading luxury car manufacturers in the world, with currently 23 production plants in over 13countries, 12 Research and Development plants in 5 countries. It manufactures sports bikes, carsand SUVs (Sports Utility Vehicle). Their current models include Series 1 (that was launchedback in 2004), series 3 (2007) Series 5(2009), Series 6 (2010) , Series 7(2008) other than thesethey have a sports car Z4 and a series of electric cars by the name of „i-Series‟. BMWBack in Dec, 2012 the first official press release about the launch of Series 4 wasreleased. Series 4 is to replace the current 3 Series coupe to differentiate the more sporty coupe.Features like alloy wheels, wooden interior, red & blue seat stitching, dash accents, and sportfront bucket seats add a luxury yet sporty BMW-like details to the 4 Series. In this report wepropose the marketing plan for launching the 4 Series here in Pakistan.4

MARKETING OBJECTIVESBMW Mission Statement:“The BMW Group is the world's leading provider of premium products and premiumservices for individual mobility.”BMW Brand - "The BMW brand stands for one thing: sheer driving pleasure. Sportingand dynamic performance combined with superb design and exclusive quality."BMW Vision:“Designed for Driving Pleasure.”BMW vity5

SITUATION ANALYSISOur Product:The BMW 4 series coupe is a two door, 4 seat hardtop coupe, starting at a price of 31,575 (PKR5364395 approx).Living in the era of higher efficiency dynamics, demands lower emissions with increasedfuel efficient engines. This era has lead manufacturers to now reinvent their old and naturedamaging technologies to nature friendly engines. BMW has already been active in introducingmore nature friendly power units, but with this new 4 series, BMW has not only refined itsengines but has also set a bench mark for other manufacturers. With a 2.0 liter twin turbochargedand a multi award winning 3.0 liter twin turbo charged engine, the BMW not only gives theoption of extreme performance but also great efficiency. The 428i provides a combined averageof 25km/l (25 kilometers per liter). On the other hand the much more powerful 435i delivers 300Bhp and has 5.1 seconds 0-100 km acceleration whilst providing an economy of 11km/l. Theequipment levels are second to none, leather, a DAB radio and Bluetooth are standard. Heads updisplay is a unique feature that projects the cars speed, economy and other important numbers onthe cars wind shield allowing the driver to take note of important readings without having to taketheir eyes of the road. Another unique feature is the new 4WD system which is an optional extra.A six speed manual transmission is standard while an automatic trip-tonic along with paddleshifters in optional.Another feature that is unique to the BMW is the inbuilt IBM ThinkPad that containsdiagnostic software which helps in keeping the car problem free and helps in early solution tounlikely technical problems. The BMW 4 series does not only out equip the 3 series but is also6

sportier and is significantly lower than its predecessor. The seats are not only firm but are alsocomfortable and more supportive making it the only premier brand to offer this feature inautomobile industry for coupes. This highlights the fact that BMW, unlike its rivals, has not onlymade a car sportier but also more comfortable for daily use. The adaptive M suspension of theBMW 4 Series offers optimum handling with even more agility while electronically controlleddampers adjust to your driving style and the road conditions. The driving dynamics can beadjusted using the Driving Experience Control which enables you to choose between Sports andSports giving you the proper stiffness and throttle response while driving the BMW 4 seriesfaster and harder. The I-Drive Touch Controller gives you convenience in controlling the iDrivesystem with one hand. Thanks to the touchpad integrated in the Controller, you can easily enterinformation such as, destinations for the navigation system using your own handwriting. TheBMW 4 series safety is another bench mark set by the German manufacturer. Active Protectionis the BMW Connected Drive preventive occupant protection system. If a critical situation ariseson the road, the front safety belts are reversibly pre-tensioned and the side windows are closed as is the sliding roof. The feature Driving Assistant combines the camera-based systems lanedeparture warning and collision warning. Safety being a priority is shown by the intelligentemergency call system. The intelligent emergency call permits fast, targeted assistance round theclock as well as support by trained staff - in your language even if you are abroad. If a seriousaccident takes place, an intelligent emergency call is automatically issued. At the touch of abutton you are put through to our BMW Call Centre agents who are available to you as "personalassistants" while you are on the road. Whether you are looking for a particular restaurant, thenearest cash dispenser or an emergency pharmacy - the BMW Call Centre agent is there to helpand can send address details directly to your navigation system if you wish.7

The agent can even place a reservation at a restaurant or book a hotel room for you. TheConcierge Service operates independently of your mobile phone and is available to you at homeand abroad round the clock, seven days a week at no extra cost.SWOT ANALYSIS8

STRENGTHS:1)Brand reputation: According to Global Rep Trak – the best corporatereputations, in 2013 BMW topped the ranking and was among the top and most valuable carbrands.2)High Quality Products: BMW does not compromise on the quality. From theraw materials upto the final product, the keep a strong check on the quality. Moreover, BMWhires the most skilled and efficient workforce to design and produce the automobiles.3)Eco-friendly Cars: Thinking of eco-friendly cars, we focus on what does ordoesnot come out of the car i.e how they treat the environment aound them. But that is not it ,companies like BMW are taking this concept to a whole new level. According to ABC, the newplug-in electric i3 of BMW is the „greenest car in the world‟. Keeping in view the impact theircars could have on the environment, from the start to the end of production, almost every processin producing the Electric 13 is eco-friendly. With a minimal processing done to the wood usedfor the interior, instead of using harmful chemicals to tan the leather BMW i3 uses olive leaves.4)Highly Efficient and Skilled Employees: BMW has set up its assembly plants incountries like Germany and USA where it‟s easy to find the most skilled vehicle assemblers.And it‟s considered to be the „global employer of skilled workforce‟.5)Strongest Product: The 3 series is the strongest product launched by BMW. Ithas been the best-selling car since its inception. WEAKNESSES9

1)High cost Structure: BMW‟s cost structure is higher as compared to its competitors suchas Ford, Toyota. The reason behind this high cost structure is buying best quality material and hiring ahighly skilled and trained skill force to produce quality vehicles and automobiles.2)WEAK BRAND PORTFOLIO: Currently BMW produces three brands only, namelyBMW, MINI & Rolls-Royce. Although they are performing well in their segments but still they are not ableto serve the diverse customer needs in the larger market. In order to do that BMW needs to introduce morebrands3)HIGH PRICES: Due to BMW‟s high cost structure resulting from the high costsof the raw materials and efficient workforce the prices of their automobiles are relatively high4)FEW ACQUISITIONS: Acquisitions and strategic partnerships contribute atotal of 10 percent of BMW‟s growth, without which it is hard for the company to grow evenwith the exclusive innovation and engineering capabilities. OPPORTUNITIES1)Increasing Fuel Prices: Due to the increasing fuel prices, customers are shiftingto cheaper fuels, opening up larger markets for BMW‟s hydrogen and hybrid cars.10

2)Increasing Trend of Eco-friendly Products: Today the consumers are moreaware and informed of the negative impacts of fuels like petrol diesel and emission of carbondioxide on Earth‟s atmosphere. And they prefer to buy eco-friendly products. Resulting in anincreased demand of BMW‟s electric and hydrogen-fueled cars.3)Brand Portfolio Expansion: In order increase their growth rate, BMW couldintroduce new models to its range to satisfy and address the diverse needs of a larger customerbase. Resulting in expansion of their brand and business portfolio.4)New regulations on vehicle emissions: Introduction of fuels like hydrogen andvehicles like their electric i3 series that emit zero carbon dioxide. New regulations on vehicleemissions promoting ecological vehicles would mean no additional investment for BMW while ahigh investment for its competitors, giving BMW an edge over them. THREATS1)Intense competition: The fact that markets for the luxury cars are mostlysaturated in developed economies results in an intense competition for BMW. Moreover, thedirect competitors now tend to compete over prices rather than innovation, thus intensifying thecompetition2)Expensive raw material due to increasing prices: The increasing prices of highquality raw materials results in higher costs and lower profits for companies like BMW.11

3)Decrease in fuel prices: Extraction of shale gas could lead to a decrease in thefuel prices, which would cause a decrease in the demand for BMW‟s electric, hybrid andhydrogen-fueled cars. This would lead to BMW groups having to face tremendous losses.4)Exchange rate Fluctuations: Since most of BMW‟s profits are earned outside ofEurope, thus appreciation of Euro against other currencies especially those outside Europe,causing huge losses for the company.PORTER’S ANALYSIS Threats of new entrants:12