An internal analysis of BMW
...or the vehicles originates at BMW’s own research labs. BMW invests approximately 3.6 billion dollars in R & D alone. This is because BMW has a forward thinking philosophy that doesn’t borrow ideas from other car companies; unlike, Japanese car companies that borrow ideas from other companies. This approach allows BMW to continuously offer the technology that improves the driving experience. However, there is a lot of risk associated with this approach, which is why companies Like Lexus, take a safe position and only emulate that which is successful. BMW is not only commited to offering the latest technology, they are also dedicated to responding to problems with design very quickly. Auto manufacturers refresh the design of their vehicles to fix major problems consumers have with the vehicles. Most, manufacturers refresh one vehicle a year. However BMW is attempting to refresh 5 models this upcoming year. BMW takes a risk upon introduction and innovates the cars mid way through their cycle. The 2002 7 series is being refreshed this year to adapt to the changes that customers have expressed. BMW refreshes all their cars more often than other manufacturers to ensure that they are satisfying their customers because they have a clear focus on performance and innovation. No other vehicle emphasizes the diversity of features offered in a BMW. Furthermore, BMW balances these features in an attempt to leave no customer partially satisfied. For example, a recent feature added to BMW vehicles is the x drive. The x drive is an all wheel drive system that enhances performance is situations where the driver needs it, like wet roads. BMW strives to offer their customers the latest technology. The features that BMW offers surpass the basic needs, functional needs, and excitement needs of the consumer. This results in a customer that is completely satisfied. Moreover, because research indicates high levels of total overall satisfaction translates into brand loyalty. Moreover, many customer comments stressed that they were so satisfied with the vehicles and performance their next car would definitely be a BMW. Although research and development offers features that customers simply love, the success of BMW’s sales is also intimately connected to Marketing. The features alone do nothing unless the consumer is aware of them. So how has BMW marketed their vehicles.? BMW simply shows the consumers what their car can do. BMW realized that all the features of their vehicles could not be successfully showcased in a 400,000 dollar 30 second television spot. So they placed their product in a James Bond movie. Those who watched the movie observed the full capabilities of a BMW for a time in excess of 30 seconds. Simultaneously, they launched ad campaign featuring James Bond and his BMW. Moreover, in these spots they proclaimed themselves the “Ultimate Driving Machine.” This effort was so effective that consumers when they comment on their BMW actually refer to their vehicle as the “Ultimate Driving Machine.” Furthermore, BMW in 2002 launched one of their most ambitious ad campaigns, it was a series of short action films that emphasize the vehicles performance. This series is called “The Hire.” This series cost nine million dollars to produce the first episodes of the series. Moreover, each film short is directed by the best directors in Hollywood like Ang Lee and Guy Ritchie. These shorts place Clive Owen the “Driver” in dangerous situations. However, these shorts also clearly show that the true hero is the BMW vehicle. BMW posted these films on their website. In the first year alone fourteen million users downloaded episodes of “The Hire”. This approach was adopted because over 85% of automobile consumers use the internet as a research tool before purchasing a vehicle. Once again because these film shorts are longer than 30 seconds and they demonstrate the capabilities of the vehicle to the person watching. These advertisements add value to the customers purchase because the customer knows what his vehicle is capable of. When a person buys a BMW they may never have the opportunity to use their BMW to save the world. However, the consumer is aware that no other car can meet their high performance needs because when James Bond races off to save the world he does it in a BMW. Both the product placement and film series have been effective in demonstrating the capabilities of the vehicle. However, without the technology and features this marketing approach would hav...