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Professional practices 1 BMW

Introduction
The title of the project is “A STUDY ON CUSTOMER PURCHASE CRITERIA.” Customer Purchase Criteria , a relevant aspect of marketing, studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and this in turn of the global environmental analysis. Through all these analyses the opportunities, strengths, weaknesses and threats of a company can be identified. Finally, with the help of a SWOT analysis, adequate business strategies of a company will be defined. The market analysis is also known as a documented investigation of a market that is used to inform a firm's planning activities, particularly around decisions of inventory, purchase, work force expansion/contraction, facility expansion, purchases of capital equipment, promotional activities, and many other aspects of a company.

CUSTOMER PURCHASE CRITERIA
The actions a person takes in purchasing and using products and services, including the mental and social processes that precede and follow these actions. The behavioral sciences help answer questions such as :Why people choose one product or brand over another, How they make these choices, and How companies use this knowledge to provide value to consumers. FIVE STAGES OF CUSTOMER PURCHASE BEHAVIOUR

CONSUMER DECISION MAKING BEHAVIOR
Consumer decision-making behavior is much more complex than the corporate decisionmaking process. Marketers have researched consumer behavior for many years, and many articles have been published in marketing journals explaining how consumers make purchasing decisions.

We now understand that consumers move through a well-defined process to make a decision. That process includes the following steps:  Recognizing need  Searching for information  Evaluating alternatives  Deciding to purchase In mapping out the buying process that consumers use, researchers have identified several categories of motivation that determine how consumers attach weight to -- or rate the importance of -- product features: Personal: This includes the demographic factors that are correlated with purchase behavior. Psychological : Personality, attitudes, lifestyle, and motivations are a few of the factors included. Social: These influences include friends, family, opinion leaders, role models, and similar factors. Everyone involved in creating advertising and other marketing material knows that consumers are not as interested in a product's features as they are in the benefits they can receive. And it's no surprise to marketers that the way consumers feel about a product heavily influences the likelihood of their making a purchase. However, it may surprise Web marketers just how few e-commerce Web sites actually emphasize benefits in product descriptions.

Professional practices 3 BMW

INTRODUCTION TO BMW
BMW India ,is headquartered in Gurgaon, Haryana and is a 100% subsidiary of the BMW Group. India operations commenced on 29th March 2007, when BMW India officially opened its production plant in Chennai. The Chennai plant produces the BMW 3 Series and BMW 5 Series Sedans in petrol and diesel variants and has a capacity to produce 3000 units per year on a single shift basis. BMW‘s initial investment to set up operations in India was Rupees 110 crores.

Company History
The origins of BMW trace back to 1913 when Karl Friedrich Rapp, a Bavarian who had been a well-known engineer in a German aircraft company, formed Rapp Motoren Werke in a suburb of Munich. The company specialized in airplane engines however Rapp found that they were problematic and suffered from excessive vibration. Nearby, Gustav Otto, also an airplane specialist, set up his own shop, Gustav Flugmaschinefabrik, building small aircraft. In 1917, BMW's first aircraft engine went into production, the 6 cylinder Type IIIa. In 1919, using an aircraft powered by its successor, the Type IV, Franz Zeno Diemer set an altitude record of 9,760 metres (32,013 ft). In 1935 BMW entered the record books once again, this time on two wheels. Riding a streamlined 500cc compressor machine developing 108 hp and an amazing power-to-weigh ratio (282 lb curb weight), Ernst Henne set a world speed record for motorcycles of 173.7 mph (279.5 km/h) in 1937. It stood for nearly two decades. BMW's success was unfortunately short lived. After the Second World War, the company lay in ruins. Its factories had been destroyed or dismantled and a three-year ban on any production activities was imposed by the Allies in response to the production of aircraft engines and rockets by BMW during the War. The first post war model, the V8 equipped 501 luxury sedan produced in 1951 was a poor production choice for a country that was also devastated by the war. Demand was low and the 501 did not even com e close to meeting BMW's expectations. In 1990 BMW re-entered the aircraft engine manufacturing business after forming BMW Rolls-Royce GmbH jointly with Rolls Royce. In 1998, after extended talks concerning the sale of Rolls Royce, BMW officially bought the rights to the Rolls Royce name and logo from Volkswagen, with the transition expected to take place in 2003. 1994 brought about another purchase, as BMW acquired the Rover Group PLC. After heavy losses, the company was finally sold in 2000, with Rover being split up from Land Rover which was

purchased by Ford. BMW held the rights to the new Mini and the hot-hatch goes on sale in early 2002. Today, the Z3, Z8 and all of the 3, 5, 7 and Motorsport series models continue the BMW tradition of building excellent automobiles with a special emphasis on performance, style and technological advancements. 1992 was another year-to-be-remembered for BMW when it, for the first time, outsold Mercedes in Europe. Hopefully in the future the rivalry between these and other makes will persist and companies such as BMW will continue to build great cars. Founded in 1917, the BMW Group is now one of the ten largest car manufacturers in the world and, with its BMW, MINI and Rolls-Royce brands, possesses three of the strongest premium brands in the car industry. The group also has a strong market position in the motorcycle sector and operates a successful financial services business. The company aims to generate profitable growth and above-average returns by focusing on the premium segments of the international automobile markets. With this in mind, a wide-ranging product and market offensive was initiated in 2001, which has resulted in the BMW Group expanding its product range considerably and strengthening its worldwide market position. The company‘s brand is extremely strong and is associated with high performance, engineering excellence and innovation. Indeed, the BMW brand is often cited as one of the ‗best‘ in the world, and the company continues to launch a stream of innovative products as part of its battle with German peer Mercedes to be the world‘s largest luxury car maker. The BMW Group sold approximately 2.29 million cars and approx. 120,000 motorcycles in 2011 and its revenues totaled 70.68 billion Euros.

Mission
To provide our clients with the best customer treatment experience. We will under-promise and over-deliver in all we do. We will sell and service our products with the highest quality and integrity. We recognize that the greatest asset in achieving our Mission is the individual effort of each employee. Their own definition, from a customer's point of view, can then be applied in their own personal job description on a daily basis."To become most successful premium manufacturer in the car

Product and servces
1 Series The BMW 1 Series was launched in 2004 and was the first sports hatch in the highly competitive compact car segment. The 1 Series is available in 3-door and 5-door hatch, as well as Coupé and Convertible. Models come in a range of petrol and diesel

Professional practices 5 BMW

engine sizes. EfficientDynamics technology was introduced across the 1 Series range in 2007. 3 Series The BMW 3 Series is the benchmark premium sports saloon, and continues to define the compact executive car segment. The current 3 Series was launched in 2005 and revised in 2008, and is available in four models: Saloon, Touring, Coupé and Convertible. The Saloon and Touring are offered in ES, SE and M Sport and the Coupé and Convertible are available in SE and M Sport. All 3 Series models come in a variety of petrol and diesel engine sizes. 5 Series The BMW 5 Series car was launched in 2003 and is available in both Saloon and Touring models with a number of petrol and diesel engine options. The 5 Series is known for its agility, performance and driving dynamics. Following mid-life changes in 2007 with the development of new EfficientDynamics technologies, it continues to be a globally successful executive car. 6 Series The BMW 6 Series comes in two models, Coupé and Convertible, and is available in a number of petrol and diesel engine sizes. Launched in 2003, the 6 Series has become renowned for its sporting elegance and cutting-edge design. New engines and Efficient Dynamics measures were introduced in 2007, as well as Sport models. In 2008 the models are being offered with a new sports M package aimed at enhancing driving dynamics and adding a more sporting appearance. 7 Series The 7 Series is BMW‘s luxury Saloon, combining performance, elegance and dynamic appeal. The 7 Series comes in a range of petrol and diesel engine models in standard and long-wheelbase derivatives. The model series has a progressive design and a version of the previous 7 Series has been developed using hydrogen as a fuel source. In 2007, BMW Hydrogen 7 was made available to selected influencers on a trial basis. X3The X3 Sports Activity Vehicle (SAV) was launched in 2004 and is available in SE and M Sport in a range of engine models. The X3 received mid-life changes in 2006, with new engine technology and design changes. The X3 features the xDrive all-wheel drive system and offers a combination of practicality, modern design and exceptional technology. X5The BMW X5 was the first car in the Sports Activity Vehicle Segment, when it launched in 1999. The new X5 was launched in 2007 and is available in SE and Sport with a range of petrol and diesel engine models. These can appeal to buyers who enjoy the command driving position, as well as the dynamic driving characteristics of a BMW. X6The BMW X6 offers a unique proposition: four-wheel and drive model, high levels of performance combined with a sports car coupé body style. The BMW X6 model range, launched in 2008 is turbocharged and has Efficient Dynamics technology to enhance

performance and economy yet reduce emissions. The emissions are 217g/km CO2 to ensure the model falls into the Band F Vehicle Excise Duty tier. BMWZ4The Z4 is BMW's premium sports car range, with Z4 Roadster and Coupé models available in a variety of engine sizes. The range, which was launched in 2003, uses innovative technology and a lightweight engine to offer the ultimate ‗wind-in-your-hair‘ driving experience. M Series BMW M combines technology and expertise gained from BMW's motorsport activities and translates it for the road. BMW M launched its first road car (M1) in 1978 and the range has since expanded to include the M3 Coupé, Convertible and Saloon, the M5 Touring and Saloon, the M6 Coupé and Convertible and the Z4 M Roadster and Coupé. BMW Motorcycle There are two models in this series: R (pictured) and K. The BMW Motorcycles are available in five varieties. These include High Performance, Enduro, Urban, X country, Sport and Tour, and each variety is available in a range of models and engine sizes.

Professional practices 7 BMW

SWOT
Internal and corporate analysis in terms of strength, weaknesses, opportunities and threats (SWOT) will assist in gaining an understanding of where BMW is currently in terms of strengths and where improvement is required within the business and what outside environmental threats it may face as well as what new opportunities are available to the company in the short and medium term.

Strengths
 diverses brands : BMW, Mini, Rolls Royce  Diverse Range of Products  Innovation Management System  New Products  Remote Park Assist  BMW Technology  High End Auto-mobile  Excellent Customer Relationships  Strong Brand Name

Opportunities
 New Products  Market shift to globalisation  Innovation & Alliances  Customers demand change to more comfortable cars.  Diversification  New Technologies in Automobiles

Threats
 New & existing competition  Volatility in Price of Fuel  New legislations  Consequences of the oil crisis  Economic recession

Weaknesses
 Cost for Repairs  Only Premium Gas  New and Existing Competition

 Market shift to globalization  Perception of High Prices  Takeover bids  Car Pollution - Environmental Issues  Extremely high competition for  Requires Specialized Skills For Repairs customers and resources.

Professional practices 9 BMW

BMW Marketing Overview
The majority of BMW‘s success is attributed to the development of a consistent marketing policy, the 'market niche' strategy. The company has built its brand on four core values, which are: Technology Quality Performance Exclusivity BMW has maintained these core values since the company‘s inception. Coupled with WCRS (BMW‘s advertising agency since 1979), the company has adopted a consistent advertising strategy. In addition to the message of these values being portrayed in advertising campaigns, the company explicitly expresses one or more of these values in all BMW advertisements. However, it is important to point out that BMW also relies on its sensitively to the environment, which is clearly seen by how the company‘s advertisements evolved in response to economic, environmental and competitive changes. BMW BRAND MANAGEMENT This design philosophy, which runs through every BMW, has been communicated through a number of TV and print ads. The brand image has been built up by using over 300 color press advertisements, and more recently through a total of 64 different television commercials. Throughout this campaign, BMW has remained consistent to its beliefs of focusing on the substance of the cars themselves. In addition to the high profile national color press and television advertising, individual dealers are encouraged to run their own local campaigns. Local press, radio and bus advertisements are all available from BMW dealer marketing. Additionally, brochures, price lists and dealership point-of-sale materials are made accessible through the corporate office. BMW encourages its dealers to make use of these services. Providing the dealers with a central source for advertising, BMW ensures that all communications remain standardized as well as maintaining BMW‘s brand values.

BMW MARKETING STARATEGIES BMW has embarked on a global advertising campaign. What differentiates this promotion is the fact that it remains consistent throughout the company‘s international campaign across the European, USA, Asia, South Africa and the Middle East markets. In over 15 countries

there will be: TV spots Print advertisements Mega-posters Radio spots Events In all three James Bond films BMW, MGM and EON Productions Ltd worked together on a cross promotion project. This was accomplished worldwide with TV commercials, print ads as well as displays in BMW dealer showrooms. BMW Film The best new film series, by the most cutting-edge directors, are not playing at the local theater. Instead, these films are accessible through your home computer, as well as your local BMW dealership. Since its launch at BMWFilms.com, ―The Hire‖ (a film series consisting of five different short films) has been singled out as the first high profile, big-budget, celebrity-laden Internet marriage of advertising and entertainment. It has been reviewed, scrutinized, deconstructed and cited as evidence of the perilous future for traditional advertising. New York Times film critic (Elvis Mitchell) called the series ―a marriage of commerce and creativity, straddling the ever-dwindling line between arts and merchandising.‖ BMWFilms is simply the latest and possibly the hippest Web site to make use of streaming video in order to lure prospective customers. Fast cars, mysterious passengers, Buddhist monks, rock superstars, and sinister enemies are all part of the film series, which are presented in installments by some of Hollywood‘s top di rectors. These films are being advertised on television the same way that movie trailers are advertised; the difference is that instead of the catch phrase ―coming soon to a theater near you,‖ this catch phrase reads ―see it only on BMWFilms.com. Filmgoers, thrill seekers, and potential customers have the option of watching the video using Real Video or QuickTime video players. Another option is to download the BMW Film Player, a fairly simple process offered through the BMW web site, which turns the computer screen into a miniature personal theater complete with ―DVD quality‖ pictures and sound. Installing this player allows the user to download and view the video on the full computer screen while offline. In addition to the full-length videos, BMW also offers trailers for those customers with slower modem connections. These trailers allow viewers the ability to have a ―quick peek‖ at the films. The films all have differentiating styles, however one thing that they all hold in common: the majority of the action takes place in a BMW while the participants are in the middle of a car chase. There is no limit to the actual number of BMWs that you will see; one, two, three, even more Beemers are seen speeding down alleyways and streets, screeching around corners.

Professional practices 11 BMW

Given that the average BMW automobile starts at approximately $30,000, the company‘s decision to design a classy film series, which can be viewed on a high-speed Internet connection by an upscale, mostly male audience, is clearly targeted. The simple concept of these films – BMW wants to sell cars! Film concept BMWFilms has accomplished several objectives; the most important being the tremendous buzz in both the entertainment and business press. This was important to BMW, since one of its goals was to make the BMW look cool, without the old association with the 1980‘s style of yuppie arrogance. BMW MAEKETING CHANNELS Internet Auto manufacturers have taken some innovative approaches to draw Internet users to their web sites. However, it is surprising how quickly innovative becomes ordinary. Slide shows, flash animation, and surround video are now commonplace on most manufacturer‘s sites. In addition, contests have become so common that the possibility of winning a free car may not be enough to hold a viewer for more than a few minutes. 468x60 banners are sold on a run-of-site (ROS) basis, meaning, they will appear on every search results page and on an equal rotating basis with other advertisers' banners. Advertising rates for 468x60 ad banners are computed on a cost-per-thousand (CPM) impression basis and are currently priced at US $10 to $15 CPM. Flashing banners and other methods cost slightly more based on the website and technology involved. For online ads, each advertiser is given password-protected access to Real-Time advertising statistics, including how many impressions were served, how many click-throughs were achieved, and what click-through rate was achieved. The industry standard for the click through rate is anywhere from 0.25% to 2%, for sites like CNN, ZD Net, or Yahoo. Your actual click-through rate will depend on the appearance of your ad, and what it offers in terms of a marketing message and call to action. Just like running a television commercial during prime time, or placing a full-page ad in "Time" magazine, these ads do not necessarily cause people to pick up the phone and order a product at that very moment. Whereas a web-based process which guides the consumer through a systematic process is to make a purchase more likely. Specifically, these types of ads build name recognition for the company and establish it as a major force in the industry. Then, when consumers are ready to buy, your company will come to mind. Television The 1999 American Association of Advertising Agencies Commercial Production Costs Survey revealed that the average cost of a 30 second national commercial for an automobile was a whopping $389,000. The percentages of viewers of MSNBC and Bravo who are in

BMW‘s target income bracket constitute 20.5%. The percentage of viewers in BMW‘s target age group (25-34) is 26.5%. Print The advertising rates in a periodical like Time Magazine ranges from $250,000 for a fullpage mono to $360,000 for a full-page color ad. The average age of a Time Magazine subscriber is 45 and they have a median income of $69,000. This audience is of twice the age and half the income of BMW‘s intended target market. Time Magazine is one of the premier periodicals on the market at this time. DVD Promotions/Freebies The cost of producing a DVD master is between $50,000 and $100,000—plus the cost of producing any bonus materials. DVD player penetration in the US today is approximately at 25,600,000 units. This trend is supposed to increase and the DVD is supposed to become the next VHS. BMW COMPETITIVE ANALYSIS In 1997, BMW was in danger of losing its long-standing lead in the import luxury car segment. Mercedes, Lexus, and Audi were coming on strong with great new products and new marketing campaigns designed to dethrone BMW. Nearly half of those considering a luxury car rank "fun to drive" as their number one reason for purchasing the car. However, for the first time since BMW had been tracking its image, consumers ranked BMW at virtually the same level as Mercedes or Lexus on attributes like "fun to drive" and "responsive handling." BMW‘s three biggest competitors have launched new advertising campaigns that highlighted what traditionally had been BMW‘s greatest strength: performance. Therefore, BMW was not able to distinguish itself anymore as the only company that boasted the unparalleled standard of quality as before. Mercedes The range of cars from the giant company DaimlerChrysler is a traditional rival of BMW‘s. In 2000, they sold 1,155,000 units and had revenues of 43.7 billion eu ro. Mercedes‘ strength would be its global presence, strong brand presence, product range and its technology leadership. Mercedes marketing campaigns have always been subdued and low key. Mercedes allocates 25 per cent of its annual marketing budget to innovative Internet strategies, recognizing the power of the Internet for delivering effective and precise marketing campaigns. When the car manufacturer launched the new Mercedes C Class Sports Coupe, it positioned the online campaign right at the top of its marketing mix. Joining in a winning partnership with MSN, another global brand with similar values, Mercedes sponsored A-Ha‘s eagerly awaited homecoming concert. Lexus

Professional practices 13 BMW

Sparked by a decision from Toyota Chairman Eiji Toyoda in 1983 to challenge the best luxury vehicles, Lexus has since grown into one of the world's most inspiring automobile companies. Lexus is a division of Toyota Motor Sales, U.S.A., Inc. They are trying to leverage the Japanese technology to add brand value to their vehicle. Lexus is Ame rica‘s top selling luxury marquee. The tough task for Lexus is to lose the ‗Cheap but Reliable‘ Toyota image. The annual sales of Toyota vehicles in the US have been on the order of $9093 million in recent years. According to Chris Conrad, Lexus‘ national advertising manager, Lexus is targeting its youngest buyers ever with the IS 300, roughly 75% male, between the ages of 35 and 40, married, highly educated with annual household incomes of $100,000. The current average age of a Lexus owner is 50, with the median age of the brand's hottest selling vehicle, the RX 300 sport-utility, at 48. The estimated $32 million campaign for the car broke recently on national TV and will continue for the next six months. Team One, El Segundo, Calif., created the two national TV commercials. Five TV spots for regional dealer ad groups and two magazine ads. The agency also created billboards and six commercials that will be projected on buildings in three cities. Their online presence even for this campaign is limited, though Lexus is one of the advertisers launching a rich-media campaign on the Excite Network, which includes WebCrawler and Classifieds 2000. Audi Audi is an international developer and manufacturer of high-quality cars. In 2000, the company sold more than 650,000 Audi models. The sales revenues of the Audi Group totaled 39 billion Deutsch Marks. The Audi Group has slowly but surely been encroaching on the BMW and Mercedes markets. They have been trying to promote the exclusivity of their cars. Recently, Audi of America has embarked on its most ambitious online-marketing effort ever. The European car importer kicked off the "Double Take" "advertainment" online sweepstakes as part of its $25 million launch of the redesigned 2002 A4 sedan. Visitors to the site can try to solve mysteries after viewing clues from three short episodes involving the A4. They can also register to win prizes while learning about the car and its features. The grand prize is a three-day trip for two to the Audi Driving Experience at the Panoz Driving School in Atlanta, GA. The sweepstakes, run by Don Jagoda Associates, Melville, N.Y., allows prospects to enter up to eight times. "The main thing is to educate and entice users to go to dealerships," said Steve Glauberman, president-CEO of Enlighten, the privately -held Ann Arbor, MI, creator of the site and sweepstakes. Market segmentation is the basis for a differentiated market analysis. Differentiation is important. One main reason is the saturation of consumption, which exists due to the increasing competition in offered products. Consumers ask for more individual products and services and are better informed about the range of products than before. As a consequence,

market segmentation is indispensable.] Segmentation includes a lot of market research, since a lot of market knowledge is required to segment the market. Market research about market structures and processes must be done to define the “relevant market”. The relevant market is an integral part of the whole market, on which the company focuses its activities. To identify and classify the relevant market, a market classification or segmentation has to be done. In 2006 BMW Group confirmed its position as the world's leading premium manufacturer in the automobile industry with record sales, and profits exceeding €4 billion1. Since its inception, the BMW brand has stood for one thing: sheer driving pleasure. For many BMW drivers, owning a BMW has symbolic meaning of quality, efficiency and engineering expertise. BMW‟s long-standing marketing message has been simply “the ultimate driving machine”, which is now 33 years old. In 2000, BMW linked suggested future segments with the redesigns to its product line. The new cars reflected the predicted changes in consumer tastes and behaviour which they had found through commissioned consumer research. Matching future segmentation research to product development or product or line extensions can be difficult. There are strategies to execute line extensions without confusing, and losing, your customers . What these strategies have in common is rigorous attention to the brand's position matched to clear understanding of future customers needs. BMW regularly undertakes research into their customer‟s occupations and hobbies. The information is used across all areas of the business, from the design and development of the cars, through their premium pricing and all elements of the marketing mix. In the late 1990‟s, BMW sensed the attitudes and values of luxury-car buyers were changing with more emphasis on family and leisure time. These new upscale consumers included aging baby boomers, yuppies who had started families, and liberal-minded wealthy professionals. Research indicated they would want more vehicle choices and more eye-catching designs to suit their changing lifestyles. With its future at stake, BMW made an ambitious gamble: It invested heavily on broadening its single, narrow product line into a whole spectrum of upscale cars. It also acquired Rolls Royce and re-launched the Mini, the British cult car of the „60s. It put the BMW brand on sport-utility vehicles, convertibles, roadsters and, most recently, a compact car.

Professional practices 15 BMW

Review of literature
This review of the published researches in consumer behavior concludes that the area has been incompletely covered by the research effort. Most of the research attention has been given to pre purchase decision processes for brands. More fundamental consumer problems such as purchase of strategic products and budget allocation problems, as well as post purchase phenomena in general, have been neglected. It is suggested that the bias in the research attention may be traced back to the dominance of a pragmatic marketing tradition in the area, encouraging emphasis on controllable aspects of the decision process. Johan Arndt (1976) ,"Reflections on Research in Consumer Behavior", in NA Advances in Consumer Research Volume 03, focused on more specifically, consumer behavior may be defined as: (1) the mental 'and physical acts of (2) individuals or organized groups of individuals concerned with ultimate consumption, (3) that relate to acquiring, using, and, in some cases, disposing of (4) economic goods and services (5) both from the private and the public sector. In order to delineate the area of consumer behavior further, the various activities constituting "consumer behavior'' may be cross-classified by (1) what may be called stage in the buy-use continuum and (2) by level of process. the marketing contributions to consumer behavior seem to be flawed by six serious shortcomings: - Neglect of consumer behavior with regard to the public sector. - Fragmentation of the subject matter. - Inadequate attention to consumer behavior of groups. - Bias toward decision processes. - Insignificant problems. - Irrelevance of findings. ACMA (2006) presents the recent trends in the Indian auto industry as a whole and their implications for automotive supply chain in India. The market-oriented growth and growing automobile industry in India have ensured bright prospects for the Indian auto component sector, which is vibrant and competitive. Huge future growth potential of the automobile industry and increased access to customers finance may lead India to a place among the top five automotives economies by 2025. (Trout, 2005) Since its inception, the BMW brand has stood for one thing: sheer driving pleasure. For many BMW drivers, owning a BMW has symbolic meaning of quality, efficiency and engineering expertise. BMW‘s long-standing marketing message has been simply ―the ultimate driving machine‖, which is now 33 year old. In 2000, BMW linked suggested future segments with the redesigns to its product line. The

new cars reflected the predicted changes in consumer tastes and behavior which they had found through commissioned consumer research. (Nail,The Nailadms.com,Dec,2012) wrote that ‗BMW is very clear about its targeting. It only targets the premium-priced cars and does not strive to compete in every segment of the auto industry. It avoids the high-volume market of middle-of-the-road vehicles and focuses strictly on the luxury sector. The Mini, for example, is smaller than a Honda Civic, but is priced at about $3,000 (€2,300) more. This strategy has made BMW, despite its relatively small size, one of the world‘s most profitable car makers‘. Research conducted by Cuthbertson & Bridson (2006) highlights the specific marketing strategies employed by retailers to increase customer loyalty. The research presents the internet as a potential medium of driving loyalty in the consumers. Fiorito & Laforge (1984) on the other hand have conducted a research on smaller retailers and what kind of marketing strategies they have employed to stay competitive in the retail industry. The two types of marketing strategies which are highlighted in the research as being commonly used by small retailers pertain to integrated marketing strategy and differential marketing. Many writers, such as Nicosia (1966), Engel, Kollat, and Blackwell (1968, 1973), Howard and Sheth (1969), Robertson (1971), and Hansen (1972) have viewed consumer decision making as a multistage, problem-solving process. Building on Engel, Kollat, and Blackwell (1968, 1973), the following stages may be distinguished. [It should be noted that Engel, Kollat, and Black-well (1968, 1973) are mainly interested in the purchasing process. Hence, they do not include steps 4 and 5 in the model below. Instead, the purchasing stage is followed by post purchase evaluation and cognitive dissonance following in the wake of the decision.] (1) Problem-recognition. (2) Search for information to evaluate alternatives. (a) Internal search. (b) External search. (3) Implementation of the purchase. (4) Physical consumption. (5) Postconsumption activities. At the problem-recognition stage, the consumer becomes aware of a difference between the desired state with regard to the fulfillment of some consumer goal and the actual state. It seems reasonable to assume that this difference has to reach a certain threshold value in order to warrant further action.

Professional practices 17 BMW

RESEARCH METHODOLOGY

Procedures used in making systematic observations or otherwise obtaining data, evidence, or information as part of a research project or study.Research methodology is the systematic way to solve the research problem. It gives an idea about various steps adopted by the researcher in a systematic manner with an objective to determine various manners.

NEED OF THE STUDY
In the present scenario , in the automobile industry there is a strong urge to understand the customer purchase behavior, as trying to sell a luxury car is much more hard then selling a low budget car. Before buying an expensive car a customer would surely do search for other companies , and alternatives . Also there is a possibility that they would be under some influence . We cannot read customer‟s mind but can identify there customer‟s need. A marketer needs to first identify his target consumers and understand their lifestyles, psychologies, income, spending capabilities, mentalities to offer them the right product. Individuals from lower income group would never be interested in buying expensive and luxurious products. He would first fulfill his basic physiological needs like food, air, water etc. It is really essential for the marketers to understand the needs of consumers. Find out what they are actually looking fort he psychology of consumers (what they feel about a particular product and their brand on the whole). How consumers are influenced by their immediate surroundings, family members, friends, co workers and so on. Hence , it is vital to understand the behavior of potential buyers of company to run the company successfully

Professional practices 19 BMW

Scope of the study
 The scope of the study is helpful to that organization for conduction further research.  This study helps to make managerial decisions to the company.

 The scope of the study is limited to the customers visiting to the BMWNavnit motors, Bangalore.  This study is relevant for understanding the customer purchase behavior while buying a car.  This study is vital for developing marketing strategies and plans of organization.

HYPOTHESIS
Hypothesis: NULL (HO): Null hypothesis is a hypothesis which a researcher tries to disprove. Normally, the null hypothesis represents the current view/explanation of an aspect of the world that the researcher wants to challenge. ALTERNATIVE (H1):- Research methodology research hypothesis is often based on observation that evokes suspicion that the null hypothesis is not always correct.

NULL HYPOTHESIS
There is no significant change in the customer‘s purchase behavior to buy car from BMW Navnit motors, bangalore .

ALTERNATIVE HYPOTHESIS
There is a significant change in the customer‘s purchase behavior to buy car from BMW Navnit motors, Bangalore.

Professional practices 21 BMW

Objective of the study
To gain special expertise in the area of retail performance improvement. BMW , Navnit motors,Bangalore.it has its one of the major goal to acquire expertise in the retail performance in Indian market. By realizing significant sale in compare to other states and towns . Main competition is with Delhi and Mumbai retailers of BMW cars. By this study , customer‘s possibility to buy car from other retailers and reasons can be identified ,so that effective and corrective measures can be taken. To support clients in facing challenges by developing the relevant actions to increase efficiency in marketing & sales and after-sales. The automotive industry is under unprecedented pressure to increase customer satisfaction and make sales and service structures and processes more efficient. By the help of this study BMW can get to know the lacking and weaknesses from the customer view and can work on it. To gain competitive advantage in the luxury car segment In light of a stagnating market and increasing competition, incentive spending has risen substantially, thus massively eroding profits. By the help of this research and study BMW, Navnit motors can target at the core requirements of its target market so that unnecessary cost on marketing can be cut and competitive advantage can be gained. To set marketing strategies and plans for future which would bring more effectiveness and efficiency Through this research BMW, Navnit motors , would be able to make more relevant marketing strategies and plans for future, by top management. So that marketing department can get more effective and efficient , which would led to raise in target market and customer satisfaction.

DATA COLLECTION
In dealing with any research problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. The task for data collection begins after a research problem has been defined and research design chalked out. Primary Data: The primary data are those which are collected afresh and for the first time, and thus happen to be original in character Collection of primary data. There are several method of collecting primary data, particularly in surveys and descriptive researches. >Observation Method >Interview Method >Through Questionnaires Questionnaire This method of data collection is quite popular, particularly in case of big enquires. In this method a questionnaire is sent to the persons concerned with a request to answer the questions and return the questionnaire. Secondary Data: Secondary data are those which already been gathered early for some other purpose are secondary data in the hands of the marketing researcher. In contrast, those data which are collected at the first hand either by the researcher or by someone else especially for the purpose of the study are known as primary data. Thus, primary data collected by one person may become the secondary data for another. Secondary data saves much of time, cost of the project. Research is totally based on Primary Data. Secondary Data can be used for the reference. Research has been done by Primary Data, and primary data has been collected by meeting with the employees in the hotel. Data collection has been done through by giving structured questioner and through personal interview. This study will be based on sampling. This is an Exploratory Type of research. The study was aimed at measuring the employees‘ job satisfaction in hotel Royal Orchid and the comparison of employees‘ satisfaction of different hotels on basis of various parameters. SAMPLING TECHNIQUES Simple Random Sampling- In a simple random sample (SRS) of a given size, all such subsets of the frame are given an equal probability. Each element of the frame thus has an equal probability of selection: the frame is not subdivided or partitioned. Furthermore, any given pair of elements has the same chance of selection as any other such pair (and

Professional practices 23 BMW

similarly for triples, and so on). This minimises bias and simplifies analysis of results. In particular, the variance between individual results within the sample is a good indicator of variance in the overall population, which makes it relatively easy to estimate the accuracy of results. Stratified Sampling-Where the population embraces a number of distinct categories, the frame can be organized by these categories into separate "strata." Each stratum is then sampled as an independent sub-population, out of which individual elements can be randomly selected. There are several potential benefits to stratified sampling. First, dividing the population into distinct, independent strata can enable researchers to draw inferences about specific subgroups that may be lost in a more generalized random sample.Second, utilizing a stratified sampling method can lead to more efficient statistical estimates (provided that strata are selected based upon relevance to the criterion in question, instead of availability of the samples). Even if a stratified sampling approach does not lead to increased statistical efficiency, such a tactic will not result in less efficiency than would simple random sampling, provided that each stratum is proportional to the group's size in the population. Third, it is sometimes the case that data are more readily available for individual, pre-existing strata within a population than for the overall population; in such cases, using a stratified sampling approach may be more convenient than aggregating data across groups (though this may potentially be at odds with the previously noted importance of utilizing criterion-relevant strata).Finally, since each stratum is treated as an independent population, different sampling approaches can be applied to different strata, potentially enabling researchers to use the approach best suited (or most cost-effective) for each identified subgroup within the population.

Sample size
For further research the questionnaire will be filled by 100 employees of BMW NAVNIT MOTORS,BANGALORE. Out of 100 respondents, 44 of them were female and 66 of them were male.

PROFILE OF RESPONDENTS
Classification of respondents according to their Gender o MALE o FEMALE

70 60 50 40 30 20 10 0 MALE FEMALE Series 1

GENDER

MALE FEMALE TOTAL

NO. of In Respondents Percentage % 66 66% 44 100 44% 100%

Professional practices 25 BMW

Monthly Income of respondent o o o o Below Rs.50,000 Rs. 50,000 – 85,000 Rs.85,000 – 1,20,000 Rs.1,20,000 above No. of Respondent 35 17 20 28 In Percentage% 35% 17% 20% 28%

PER ANNUM SALARY Below 50,000 50,000-85,000 85,000-1,20,000 1,20,000 Above

40 35 30 25 20 15 10 5 0 below 50,000 50,000-85,000 85,000-1,20,000 above 1,20,000 Serie…

Car respondent have currently o SEDAN o SUV o SPORT TYPE OF CAR SEDAN SUV NO. OF Respondents 34 38 In Percentage% 34% 38%

SPORT TOTAL

28 100

28% 100%

40 35 30 25 20 15 10 5 0 SEDAN SUV SPORT Series 1

CLASSIFICATION OF RESPONDENT ACCODING TO AGE o BELOW 25 YRS o 25-40YRS o ABOVE 40YRS AGE Below 25 25-40 40 ABOVE TOTAL NO. OF Respondents 32 38 40 100 In Percentage% 32% 38% 40% 100%

Professional practices 27 BMW

DATA ANALYSIS
The data after collection is to be processed and analyzed in accordance with the outline and down for the purpose at the time of developing plan Technically speaking, processing implies editing, coding, classification and tabulation of collected data so that they are amenable to analysis the term analysis refers to the computation of certain measures along with searching for pattern groups. Thus in the process of analysis relationship or difference should be subjected to satisfaction tests of significance to determine with what validity data can be said to indicate any conclusion . The analysis of data in a general way involves no. of closely related operations, which are performed with the purpose of summarizing the collected data and organizing them in a manner that they answer the research questions above process carefully and it is presented clearly.

TABLE 1: To know the opinion about quality of BMW No. of Respondent Excellent Very Good Good Average 50 25 15 10 In Percentage 50% 25% 15% 10%

FIGURE 1: Represent the opinion of the respondents about the quality of BMW car.

10%

15% 50%

Excellent Very Good Good Average

25%

SOURCE: Survey Data INTERPRETATION: 50% of the respondents had excellent opinion about the quality of car.

TABLE 2: To know the satisfaction with the car model and its features. No. of Respondent Yes No Total 78 22 100 In Percentage 78% 22% 100%

Professional practices 29 BMW

FIGURE 2: Represent the satisfaction level of the respondents with the car’s model and it’s features.

22% Yes No

78%

SOURCE: Survey Data INTERPREATATION: 78% of respondents were satisfied with the car model.

TABLE 3: To know whether the respondents collect information about BMW car before buying it. No. of Respondent 80 20 100 In Percentage 80% 20% 100%

Yes No Total

FIGURE 3: Represent whether the respondents collected information about BMW before purchase .

20%

Yes No

80%

SOURCE: Survey Data INTERPREATION: 80% of respondents collect information before buying BMW car . TABLE 4: To know respondents are interested in buying BMW car in future No. of Respondent Yes No Total 72 28 100 In Percentage 72% 28% 100%

Professional practices 31 BMW

FIGURE: 4 Represent the respondents interested in buying BMW in future.

28% Yes No

72%

SOURCE: Survey Data INTERPREATION: 72% of respondents are interested in buying BMW car in future. TABLE 5: To know through which source did respondent get information about the BMW DEALER NEWSPAPER FRIENDS FAMILY TOTAL No. Of Respondents 23 26 33 18 100 In Percentage% 23% 26% 33% 18% 100%

FIGURE 5: Represent the source through which respondents collected information about the BMW .

18%

23%

Dealer Newspape r Friends 33% 26%
Family

SOURCE: Survey Data INTERPREATION: 33% of respondents got information from friends about the BMW car. TABLE 6 : To know whether the customers would like to attend the BMW promotional events in Bangalore? No. Of Respondents 52 46 2 100 In Percentage 52% 46% 2% 100%

SURE MAY BE NEVER TOTAL

Professional practices 33 BMW

FIGURE 6: Represent whether the respondents would like to attend BMW promotional events in Bangalore.

2%

46%

52%

Sure Maybe Never

SOURCE: Survey Data INFERENCE: 52 % of respondents would surely like to attend the BMW events . TABLE 7: According to you the BMW statement “ sheer driving pleasure” is actually considered. No. Of Respondents 55 45 100% In Percentage 55% 45% 100%

YES NO TOTAL

FIGURE 7: Represent the respondents whether agreed with thw BMW statement “ the sheer driving pleasure”.

45% 55%

Yes No

SOURCE: Survey Data INFERENCE : 55% of the respondents consider the BMW statement “the sheer driving pleasure” true.

TABLE 8: To know what make customer purchase BMW car. BRAND NAME STATUS SYMBOL QUALITY PRICE FEATURES TOTAL No. Of Respondents 20 23 29 13 15 100 In Percentage% 20% 23% 29% 13% 15% 100%

Professional practices 35 BMW

FIGURE 8: Represent the factor which make respondent purchase BMW car.

15%

20% Brand

13%

Status symbol Quality Price 23%
Features

29%

SOURCE : SURVEY DATA INFERENCE: 29 % of the respondents opted for the quality factor which they consider while purchase of car.

TABLE 9: To know the BMW event customer found most interesting that happened in 2013 FASHION SHOW POLO MATCH MOVIE PREMIER TOTAL No. Of Respondents 44 34 22 100 In Percentage 44% 34% 22% 100%

FIGURE 9: Represent the most like event of 2013 by respondents.

22%

Fashion show Polo match Movie premiure 44%

34%

SOURCE : Survey Data INFERENCES : 44% of the respondents found the BMW fashion event most interesting then other events of 2013. Table 10:While purchase of a BMW , what would be your criteria to choose a specific BMW retailer to buy car? No. Of Respondents 44 23 33 100 In Percentage% 44% 23% 33% 100%

TERMS OF SALE PAST EXPERIENCE POLICY TOTAL

Professional practices 37 BMW

FIGURE 10:

33%

44%

Terms of sale Past experience Policy

23%

Table 11:-

Before buying the car how much time do you spent examining other brands, sellers , other attributes?
No. Of Respondents MUCH CONSIDERABLE LITLLE TOTAL 42 38 20 100 In Percentage% 42% 38% 20% 100%

FIGURE 11:

20%

42%

Much Considerable Little

38%

Professional practices 39 BMW

DATA FINDING
 Based on the result of the analysis alternative hypothesis were supported. The customer and clients of luxury cars has a positive opinion about the company , as it was found during research that half of them ,50% has excellent opinion about the BMW‟s quality .  Most of the respondents ,78% are satisfied with the car‟s model and its features . This means that the BMW company is providing customers the desired features and models of car with up gradation of car.  Brand loyalty is very less when it comes to luxury car purchase, as 80% of the respondents considered other brand cars also, while purchase of BMW car. This indicates that, competition is very high, customer purchase behavior is dynamic.

 The result indicate that most of customers had favorable experience and view towards BMW cars, 72% of the respondents agree to purchase BMW car in future.  The luxury car customers purchase criteria is to very extent is influenced by external sources, and mostly by friends and relatives , as they get information and got influenced to purchase BMW , by their others in surrounding people.



Almost all the respondents, 98% agree to visit in the BMW‟s promotional events . Which indicate that customers are interested in BMW‟s organized events to stay updated.

 BMW aims to provide the „sheer driving pleasure‟ to its customers, and by the study shows that more than half of the respondents agree with the statement . BMW does understand customer wants and behavior.  Customer purchase criteria to buy BMW depends on many factors. As the study shows , that the factors which make them buy BMW are , 20% respondents goes for Brand name , 23% status , 29% quality, 13% price and 15% features .

 The marketing strategies of BMW company are prompt , as the events organized by company are liked by customers , and make a successful move to achieve customer attention in the city. As 44% of the respondents said that they like bmw fashion event, 34% said polo match , and 22% said movie primer .  The customer criteria to choose a specific retailer in country to buy BMW is different, as 44% of respondents see terms of sale of particular show room , 23% see the past experience of their car dealer and 33% see the buying policy of retailer.

 Before purchase of a luxury car customer spend a considerable time to make a

decision, as 42% of the respondents spend much time , 38% spend considerable time , and 20 % spend less time.

Professional practices 41 BMW

RECOMMENDATIONS
 Timely changes in the prices of the car‘s model should be communicated to the customers.  Immediate step should be taken on competitors move.  New schemes should be personally communicated to the potential customers by organizing campaigns.  Company should sponsor major events in the city.  Close check on the competitors strategies should be done.  Vigorous selling and distribution techniques to be used.  Company should pay more attention on the after sales services.  Company should set up more authorized service stations for customers.  Also, ensure availability of accessories of the car, which are now a days much in demand.

LIMITATIONS OF STUDY
However I shall try my best in collecting the relevant information for my research report, yet there are always some problems faced by the researcher. The prime difficulties which I face in collection of information are discussed below:Short time period: The time period for carrying out the research was short as a result of which many facts have been left unexplored. Lack Of Resources: Lack of time and other resources , as it was not possible to conduct survey at large level. The research and data collection was confined within the BMW, Bangalore showroom‘s customers and clients. Small no. of respondents: Only 100 customers have been chosen which is a very small number, to represent whole of the population. Unwillingness of respondents: While collection of the data many customers and clients were unwilling to fill the questionnaire. Respondents were having a feeling of wastage.

Professional practices 43 BMW

CONCLUSION
From this it is concluded that the success of the BMW Group has always been built on longterm thinking and responsible action. An effective marketing strategy has been the key to success for the company since it was established. In every branch all over the world certain standards are set up by the Germany headquarters which has to be followed by the marketing department of all the show rooms ,of BMW ,company. The BMW Navnit motors Bangalore, has also followed all the marketing strategies to achieve customer satisfaction , to increase sales , and retail its position in the target market. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. For making the company successful it is necessary to know the customer purchase behavior , so that company can focus on the customer satisfaction and increase demand .

BIBLOGRAPHY
BOOKS AND MAGZINES  Kothari,C.R.,Research Methodology,New Delhi,Vikas Publishing House Ltd.,2008  Levin Richard I.,Statistics for management ,New Delhi, Riptence Publishing House,1999 WEBSITES  www.bmwindia.com  www.managementparadise.com  www.bmwgroup.com REFERENCES  http://www.ibef.org/industry/india-automobiles.aspx  http://www.forbes.com/companies/bmw-group/

Professional practices 45 BMW

APPENDIX
RESPONDENT‘S PROFILE
NAME: GENDER: o MALE o FEMALE AGE: o BELOW 25 YRS o 25-40 YRS o 40 ABOVE PER ANNUM INCOME: o BELOW 50,000 o 50,000-85,000 o 85,000-1,20,000 o ABOVE 1,20,000 CAR o o o HAVE CURRENTLY : SEDAN SUV SPORTS

QUESTIONAIRE
1.

   

What is your opinion about BMW car? Excellent Very Good Good Average

Are you satisfied with BMW car‟s model and it‟s feature?  Yes  No
2.

Did you first collected information about the car before buying it?  Yes  No
3.

Would you be interested in buying BMW in future?  Yes  No
4. 5.

   
6.

Through which source did you get information about the BMW? Dealer Newspaper Friends Family

Would you like to attend BMW promotional events in Jaipur?  Sure  Maybe  Never According to you the BMW statement “ the sheer driving pleasure „ is actually considered ?  Yes  No
7. 8.

What make you purchase BMW car ?

Professional practices 47 BMW

     
9.

Brand Name Status Symbol Quality Price Features

Which BMW Event you found most interesting that happened in 2012 ?  Fashion show  Polo Match  Movie primer While purchase of a BMW, what would be your criteria to choose a specific BMW retailer to buy car?  Terms of sale  Past experience with dealer  Policy
10.

Before buying BMW car how much time did you spend on examining other brands, sellers and other attributes ?  Much  Considerable  Less
11.

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