Clever Project - september 2012
Developing Marketing Strategy



                                                               •   Héloïse Broutin
                                                               •   Hannah Chan
                                                               •   Jean de Basquiat
                                                               •   François Fuzeau
                                                               •   Rashmi Kalbalia




  Target: Business man between 30 and 40 years old
  Positioning: The comfort of a car and the flexibility of a
  motorcycle

                                                                                      HéloïseBroutin
Agenda
• Understand the trends in the market of Urban
  Vehicles
  Short introduction to BMW
  Key Trends on the Market & Consumer
  Competitors & Mapping

• Market Sensing
   Segmentation, Target & Positioning

• Marketing Mix Proposals
                                                 HéloïseBroutin
BMW premium positioning stay away from the
automotive industry crisis
             “Bayerische Motoren Werke”
           Founded in 1917
           Automobile, motorcycle and engine
           manufacturing market                                        Despite economical Crisis…
                                                                   BMW has is historical highest growth of
                                                                             turnover in 2011
                                    Premium Image
                                   Powerful
                                   Innovative
                                   High Quality                      Strong market position in the
                                                                          motorcycle sector




                                                                        Motorrad

http://en.wikipedia.org/wiki/BMW
http://alfredlargange.blogspot.fr/2007/10/etude-de-cas-la-bmw-z3_08.html
http://www.grin.com/en/e-book/35573/a-case-analysis-exploring-customer-attitudes-on-bmw                      HéloïseBroutin
Let’s focus on the compact
urban vehicle market



                             HéloïseBroutin
Competitive, evolving and standardised
                  market
                                                    Improvements in
                                                   mobility technologies
                                                   electrical and hybrid
                                                          engines
                     Evolving consumer
                        behaviour :                 Safety and stability
                                                                           Environmental Issues
                        Smaller Family
                                                                              Pollution and
                          Smaller Car
                                                                              urbanization
                    Preference for private
                       transportation




     Political Pressure
                                                    Market of
        Carbon Taxes                                Compact                          Mandatory technical and
                                                                                       security tests for all
    Tolling to reduce
 congestion in city center
                                                     Urban                                   vehicles

                                                     Vehicle

Gmid – 2011
KPMG Global Automotive Executive survey for 2012                                                                HéloïseBroutin
Who is the customer for
compact urban vehicle?



                          HéloïseBroutin
Let’s meet
             Living in the                        Upper middle
            biggest French                       class and Upper
                 cities                                Class




                                                   Live single, in
          28 medium age                           couple, or with
                                                     one child



                                                   Care about
                Love new
                                                  environmental
              technologies
                                                      issues


                               Enjoy busy city
                                  lifestyle

http://www.insee.fr/fr/                                              HéloïseBroutin
Who are the main
competitors?



                   HéloïseBroutin
The market offers various mobility solutions to
                      consumers …
                                                                                           The « classic »
                     The « classic »                                                         2 wheels
                       4 wheels                                          The inovative
                                                                           4 wheels




                                                                                         The innovative
                                                                The self service car
                                                                                           3 wheels
                                                                      rental




http://www.notre-planete.info/actualites/actu_3210_Autolib_Paris_environnement.php
http://rollinfree.blogspot.fr/2009/06/french-motorcyclescooter-market-may.html                               HéloïseBroutin
… and therefore is highly competitive on
traditional segments
                             High Comfort




     Mini
                                                Opportunities in
                                                  high quality

                Autolib’

Standard way                                                  Maneuverability
of driving
                                            Renault
                                             Twizy
      Opportunities in low
            quality                                     Piaggio
                                                         MP3
                                                                    Usual
                                                                   scooters
                             Low Comfort
                                                                                HéloïseBroutin
Who will be the customers
for this market segment?



                            HéloïseBroutin
Considering the urban population in France…
          Non Family
                                     Middle
 Family                Lower class            Upper class
                                      class
          18-30

          30-40

          40-55

           + 55



    Premium positioning in order to be coherent with
                   BMW brand image
       Exclude families due to the product features

                                                            HéloïseBroutin
Going deeper in the segment’s car preferences…


     FEATURES MEN             FEATURES
        PREFER              WOMEN PREFER


     Dynamic &            Round shapes
     sportive shapes
                           Space for their
    Futuristic look        bags & shopping
    Engine roaring        Comfort
     noise
                           Cute design
    High technology
     design



                                                 HéloïseBroutin
So given the
CLEVER design
and features...




         …we will narrow our target down to Men
The target will be


30 - 40 years     • Commuting from home to work
  old male
                  • With busy lifestyle
professional


                  • To cope with BMW premium
High Income         brand image strategy


Innovators
                  • Attracted by high tech design
  & Early           and avant-garde products
 Adopters

                                                    HéloïseBroutin
To summarize our positioning:




« CLEVER brings together the comfort of the car and the flexibility of a
  motorcycle , that enables young businessmen to travel to work
  without worrying about the traffic disagreements»
                                                                           HéloïseBroutin
Our Marketing Plan




                     HéloïseBroutin
Clever by BMW is a proper revolution for
businessmen…
                                                                                     • Compact dimensions of motorcycle
                                                                                     enable to drive through traffic

                                                                                     • Stability and safety of a car
                                                                                                - closed cockpit
                                                                                                - tilting system
                                                                                                - heating pilot seat
                                                                                                - foldable passenger seat

                                                                                     • Ecofriendly hybrid engine

                                                                                     • High connectivity system
                                                                                              - Bluetooth connection
                                                                                              - ultimate stereo sound


… but its advantages need to be explained to the target
and the general public
http://thekneeslider.com/archives/2006/04/27/carver-and-clever-tilting-3-wheelers/                                          HéloïseBroutin
How is Clever creating value for its customers?
                                                            Business
              Maneuverable     Safe &
                                           Eco friendly     friendly
                in traffic   Confortable
                                                          connectivity
   Classic
   scooter
  Compact
  Urban car
   Twizy

    MP3

  Autolib’


   CLEVER



                                                                         HéloïseBroutin
Exclusive channel distribution in France richest
major towns




               We recommend a pull strategy to be coherent with the Brand
                        Image of BMW, and the niche market


http://www.journaldunet.com/economie/magazine/riche-ville/                  HéloïseBroutin
High price policy to deliver the premium value
feeling
        8 000€
                                                                 15 000€




    MP3 Piaggio                                                   BMW
                                                                motorcycle



              we used reference pricing strategy to
               determine our price points


http://www.asso-scooter.org/Trois-roues-Renault-et-Bmw
http://www.bmwblog.com/2009/10/09/bmw-unveils-clever-concept/                HéloïseBroutin
Recommended price according to reference price:




             10 000 € – 12 000 €

                                                  HéloïseBroutin
Promotional Campaign recommendations




                                       HéloïseBroutin
Objective 1: raise awareness of the general
       public
                        Drive test in all BMW outlets in France
                        • Introduce the new vehicle to familiar BMW clients and new
                          comers
                        • Convince about its comfort and maneuverability



                        Sponsoring Paris Marathon 2014
                        • Famous urban event (30 000 participants)
                        • Allows great visibility




                        Press Relation to be on Turbo and Automoto
                        TV shows
                        • Popular TV shows great to introduce a new vehicle




       Democratize this new concept of vehicle to
       French people
www.parismarathon.com                                                                 HéloïseBroutin
Objective 2: trigger the need of target
audience for Clever
              Special Clever show on the BMW Paris Motor
              Show stand
              • Create the buzz
              • Get in touch with the targeted audience



              Clever Stand at the Monaco Grand Prix
              • Link the product to high tech performance, premium lifestyle and
                masculine universe of Formula One Grand Prix




              Advertising in weekly magazines and their
              websites
              • Get in touch with target audience via specific channel




Challenge will be to create the desire for the
product and activate purchase
                                                                                   HéloïseBroutin
Thank you for your attention




                               HéloïseBroutin
References
• http://en.wikipedia.org/wiki/BMW
• http://alfredlargange.blogspot.fr/2007/10/etude-de-cas-la-bmw-
  z3_08.html
• http://www.grin.com/en/e-book/35573/a-case-analysis-exploring-
  customer-attitudes-on-bmw
• http://www.asso-scooter.org/Trois-roues-Renault-et-Bmw
• http://www.bmwblog.com/2009/10/09/bmw-unveils-clever-concept
• http://thekneeslider.com/archives/2006/04/27/carver-and-clever-
  tilting-3-wheelers/
• http://www.journaldunet.com/economie/magazine/riche-ville/
• http://www.asso-scooter.org/Trois-roues-Renault-et-Bmw
• http://www.bmwblog.com/2009/10/09/bmw-unveils-clever-
  concept/
• www.parismarathon.com
• http://www.kpmg.com/GE/en/IssuesAndInsights/ArticlesPublications/D
  ocuments/Global-automotive-executive-survey-2012.pdf (p7)

                                                                       HéloïseBroutin

BMW "Clever" presentation

  • 1.
    Clever Project -september 2012 Developing Marketing Strategy • Héloïse Broutin • Hannah Chan • Jean de Basquiat • François Fuzeau • Rashmi Kalbalia Target: Business man between 30 and 40 years old Positioning: The comfort of a car and the flexibility of a motorcycle HéloïseBroutin
  • 2.
    Agenda • Understand thetrends in the market of Urban Vehicles Short introduction to BMW Key Trends on the Market & Consumer Competitors & Mapping • Market Sensing  Segmentation, Target & Positioning • Marketing Mix Proposals HéloïseBroutin
  • 3.
    BMW premium positioningstay away from the automotive industry crisis “Bayerische Motoren Werke” Founded in 1917 Automobile, motorcycle and engine manufacturing market Despite economical Crisis… BMW has is historical highest growth of turnover in 2011 Premium Image Powerful Innovative High Quality Strong market position in the motorcycle sector Motorrad http://en.wikipedia.org/wiki/BMW http://alfredlargange.blogspot.fr/2007/10/etude-de-cas-la-bmw-z3_08.html http://www.grin.com/en/e-book/35573/a-case-analysis-exploring-customer-attitudes-on-bmw HéloïseBroutin
  • 4.
    Let’s focus onthe compact urban vehicle market HéloïseBroutin
  • 5.
    Competitive, evolving andstandardised market Improvements in mobility technologies electrical and hybrid engines Evolving consumer behaviour : Safety and stability Environmental Issues Smaller Family Pollution and Smaller Car urbanization Preference for private transportation Political Pressure Market of Carbon Taxes Compact Mandatory technical and security tests for all Tolling to reduce congestion in city center Urban vehicles Vehicle Gmid – 2011 KPMG Global Automotive Executive survey for 2012 HéloïseBroutin
  • 6.
    Who is thecustomer for compact urban vehicle? HéloïseBroutin
  • 7.
    Let’s meet Living in the Upper middle biggest French class and Upper cities Class Live single, in 28 medium age couple, or with one child Care about Love new environmental technologies issues Enjoy busy city lifestyle http://www.insee.fr/fr/ HéloïseBroutin
  • 8.
    Who are themain competitors? HéloïseBroutin
  • 9.
    The market offersvarious mobility solutions to consumers … The « classic » The « classic » 2 wheels 4 wheels The inovative 4 wheels The innovative The self service car 3 wheels rental http://www.notre-planete.info/actualites/actu_3210_Autolib_Paris_environnement.php http://rollinfree.blogspot.fr/2009/06/french-motorcyclescooter-market-may.html HéloïseBroutin
  • 10.
    … and thereforeis highly competitive on traditional segments High Comfort Mini Opportunities in high quality Autolib’ Standard way Maneuverability of driving Renault Twizy Opportunities in low quality Piaggio MP3 Usual scooters Low Comfort HéloïseBroutin
  • 11.
    Who will bethe customers for this market segment? HéloïseBroutin
  • 12.
    Considering the urbanpopulation in France… Non Family Middle Family Lower class Upper class class 18-30 30-40 40-55 + 55 Premium positioning in order to be coherent with BMW brand image Exclude families due to the product features HéloïseBroutin
  • 13.
    Going deeper inthe segment’s car preferences… FEATURES MEN FEATURES PREFER WOMEN PREFER  Dynamic & Round shapes sportive shapes Space for their Futuristic look bags & shopping Engine roaring Comfort noise Cute design High technology design HéloïseBroutin
  • 14.
    So given the CLEVERdesign and features... …we will narrow our target down to Men
  • 15.
    The target willbe 30 - 40 years • Commuting from home to work old male • With busy lifestyle professional • To cope with BMW premium High Income brand image strategy Innovators • Attracted by high tech design & Early and avant-garde products Adopters HéloïseBroutin
  • 16.
    To summarize ourpositioning: « CLEVER brings together the comfort of the car and the flexibility of a motorcycle , that enables young businessmen to travel to work without worrying about the traffic disagreements» HéloïseBroutin
  • 17.
    Our Marketing Plan HéloïseBroutin
  • 18.
    Clever by BMWis a proper revolution for businessmen… • Compact dimensions of motorcycle enable to drive through traffic • Stability and safety of a car - closed cockpit - tilting system - heating pilot seat - foldable passenger seat • Ecofriendly hybrid engine • High connectivity system - Bluetooth connection - ultimate stereo sound … but its advantages need to be explained to the target and the general public http://thekneeslider.com/archives/2006/04/27/carver-and-clever-tilting-3-wheelers/ HéloïseBroutin
  • 19.
    How is Clevercreating value for its customers? Business Maneuverable Safe & Eco friendly friendly in traffic Confortable connectivity Classic scooter Compact Urban car Twizy MP3 Autolib’ CLEVER HéloïseBroutin
  • 20.
    Exclusive channel distributionin France richest major towns We recommend a pull strategy to be coherent with the Brand Image of BMW, and the niche market http://www.journaldunet.com/economie/magazine/riche-ville/ HéloïseBroutin
  • 21.
    High price policyto deliver the premium value feeling 8 000€ 15 000€ MP3 Piaggio BMW motorcycle we used reference pricing strategy to determine our price points http://www.asso-scooter.org/Trois-roues-Renault-et-Bmw http://www.bmwblog.com/2009/10/09/bmw-unveils-clever-concept/ HéloïseBroutin
  • 22.
    Recommended price accordingto reference price: 10 000 € – 12 000 € HéloïseBroutin
  • 23.
  • 24.
    Objective 1: raiseawareness of the general public Drive test in all BMW outlets in France • Introduce the new vehicle to familiar BMW clients and new comers • Convince about its comfort and maneuverability Sponsoring Paris Marathon 2014 • Famous urban event (30 000 participants) • Allows great visibility Press Relation to be on Turbo and Automoto TV shows • Popular TV shows great to introduce a new vehicle Democratize this new concept of vehicle to French people www.parismarathon.com HéloïseBroutin
  • 25.
    Objective 2: triggerthe need of target audience for Clever Special Clever show on the BMW Paris Motor Show stand • Create the buzz • Get in touch with the targeted audience Clever Stand at the Monaco Grand Prix • Link the product to high tech performance, premium lifestyle and masculine universe of Formula One Grand Prix Advertising in weekly magazines and their websites • Get in touch with target audience via specific channel Challenge will be to create the desire for the product and activate purchase HéloïseBroutin
  • 26.
    Thank you foryour attention HéloïseBroutin
  • 27.
    References • http://en.wikipedia.org/wiki/BMW • http://alfredlargange.blogspot.fr/2007/10/etude-de-cas-la-bmw- z3_08.html • http://www.grin.com/en/e-book/35573/a-case-analysis-exploring- customer-attitudes-on-bmw • http://www.asso-scooter.org/Trois-roues-Renault-et-Bmw • http://www.bmwblog.com/2009/10/09/bmw-unveils-clever-concept • http://thekneeslider.com/archives/2006/04/27/carver-and-clever- tilting-3-wheelers/ • http://www.journaldunet.com/economie/magazine/riche-ville/ • http://www.asso-scooter.org/Trois-roues-Renault-et-Bmw • http://www.bmwblog.com/2009/10/09/bmw-unveils-clever- concept/ • www.parismarathon.com • http://www.kpmg.com/GE/en/IssuesAndInsights/ArticlesPublications/D ocuments/Global-automotive-executive-survey-2012.pdf (p7) HéloïseBroutin