Target, Positioning, and Marketing Mix at Bmw

Target, Positioning, and Marketing Mix at BMW BMW is one of the world’s largest luxury car companies and it is easy to understand why. Not only does this premium auto brand have a high resale value, but strong brand loyalty and an even bigger profit margin than mass-produced cars (Holloway, 2002). This in turn enables the premium maker to spend more on research and development into the minds of its target market to make better, more advanced cars with a powerful brand image.

BMW is a German automobile, motorcycle and engine manufacturing company, which owns and produces the Mini brand, and is the parent company of Rolls-Royce Motor Cars. BMW is well known for its sporty, yet sophisticated image which has been built up since the 1970’s with many motor sports victories, and its BMW Group’s worldwide mission statement, “To be the most successful premium manufacturer in the industry” (http://www. bmwgroup. com). The majority of BMW’s success is attributed to the development of a consistent marketing policy, the ‘market niche’ strategy.

The company has built is brand on four core values, which are technology, quality, performance, and exclusivity, whereas BMW has traditionally positioned its brand to be perceived as the leader in performance (Arnold, n. d. ). In fact, the BMW group and all BMW models are all about performance on the road and inside the plant in which they are manufactured. The fundamental core benefits for BMW customers are reliability, durability, and style. People who buy BMW are also paying for the engineering and quality, not for breakdowns (Arnold, n. d. . Buyers normally expect certain qualities in their cars when they purchase at BMW. Brand associations of German luxury brands like BMW include powerful, high-quality, fast, pricy, luxurious, classy, and sleek (Holloway, 2002). BMW owners usually purchase because they know they can rely on its solid background of high-quality vehicles, and superior performance, but they also know they are getting a vehicle that looks sporty, classy, and expensive at the same time. Technology plays a huge role in the difference between BMW and its competitors.

BMW has combined its superior quality product with that of technology to enhance BMW service experience for its customers. In fact, research by Wanke, Bohner, and Jurkowitsch, (1997) suggest that BMW’s Augmented Reality has created the bridge and extends the real world by adding virtual information to assist BMW Service staff in their highly demanding technical work. Using augmented reality, a BMW mechanic receives additional three-dimensional information on the engine he/she is repairing. For example, augmented reality can be used to help in diagnosing and solving the fault in and engine (Horatiu, 2009).

Apart from the real environment, technicians can see virtually animated components, the tools to be used and hear instruction on each of the working steps through headphones integrated inside the goggles (Horatiu, 2009). Next stands the exclusivity of BMW’s potential product and the ideas’ genesis come up with. BMW now makes cars using resources that would otherwise be wasted by putting them to good use. For instance, the Landfill Gas-to-Energy Project at BMW used to reduce its reliance on natural gas and better utilizes the previously untapped methane, which is a byproduct of decomposing trash and can have harmful effects on air quality.

By turning this methane into energy, the plant has reduced carbon dioxide emissions equivalent to removing 61,000 automobiles from the U. S highways each year (Arnold, n. d. ). Today, 63 percent of the plant’s total energy is derived from landfill gas (Arnold, n. d. ). Not only that, this project has three core benefits, it reduces the amount of harmful greenhouse gases released into the air, allows BMW to use a wasted energy source by transforming the methane gas produced from the nearby Palmetto Landfill into electricity to heat for the plant, and it saves a lot of money for the company as a whole (Arnold, n. . ). BMW is now the first auto company in the world to use green energy to fuel its painting facility. Furthermore, since its inception, the project has been expanded to utilize landfill gas to fuel 23 oven burners in the paint shops at BMW and supply indirect heat to these areas (Arnold, n. d. ). In addition, marketers have classified BMW products as specialty goods because they have a unique characteristic or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort (Kotler & Keller, 2009).

Consumers who purchase BMW’s are willing to go to great lengths and travel afar to buy one. In fact, BMW is a product that stands above the rest requiring very little if any comparison to other brands as buyers already know exactly what they are looking for when in search of this particular type of vehicle (Holloway, 2002). Thus consumers that purchase BMW’s are investment buyers and often have upscale purchasing habits. And it is this reason that BMW, unlike many other marketers, has stopped emphasizing demographics such as targeting customers based on age and income, and tarted targeting based on mind-set and lifestyle. BMW marketers understand that their customers are concerned about status, and so this is what they focus their attention on. When advertising BMW marketers have focused on the specifics of the BWM and emphasis are often placed on the fact that BMW is continuously managing its cars performance quality through time, and research (Boudette, 2005). It consistently strives to improve its products and for years has produced high returns and market shares for this very reason.

Ideally, BMW’s positioning has been maintained over such a long period of time because the company possesses and develops an incredible competitive advantage. In terms of price, BMW’s mid-range vehicles start around $29,400 up to the most prestigious and luxurious vehicles priced around $130,000 (Boudette, 2005). Additionally, every new BMW is covered by a limited warranty for defects in materials or workmanship for the first four years or 50,000 miles, whichever comes first.

BMW also offers a rust protection program for 2006 and newer models, which provides a 12-year limited rust perforation protection without mileage limitations (http://www. bmwgroup. com). Additional accessories and services offered by BMW include iDrive, Real Time Traffic Information, BMW Roadside Assistance, and BMW assist all the more reasons why consumers choose BMW. iDrive links BMW vehicles’ with communications, navigation and entertainment functions allowing owners to make calls, listen to music, plot routes and find places to stop along the way, with just one controller all at the same time.

Real Time Traffic takes owners down shorter and faster routes, preventing them from getting stuck in traffic. It identifies traffic accidents and delays in real time and continuously updates the service 24 hours a day, 7 days a week, while smaller markets report only during normal commuting hours (http://www. bmwgroup. com). BMW Roadside Assistance is a feature most BMW owners find comforting because if they are traveling and get a flat, run out of gas, or need a tow BMW will send someone out immediately to assist no matter where the customer is located.

BMW owners are covered in all 50 states, in Canada and Puerto Rico, even if someone else is driving the vehicle. These services are offered 24 hours, 365 days a year, at no additional cost, and without any mileage restrictions (http://www. bmwgroup. com). BMW assist, on the other hand, works as a sense of security, and is there for BMW customer’s safety. It is a convenient service that adds peace of mind for BMW owners, and is suitably equipped in 2007 and later models. BMW assist is part of the Ultimate Service at BMW, and is included at no additional cost for up to 4 years.

This service connects owners to a response specialist that can help with almost everything, from an emergency situation to directions and traffic information by just a push of a button (http://www. bmwgroup. com). At BMW distribution is about the use of consistent standards of quality, safety, and processes at all locations. They guarantee worldwide premium products made by BMW Group as well as the careful use of resources being the guiding principle behind all production and planning. Its living structure is what enables it to react flexibly to customer demands and market requirements and conditions throughout the world (Ludwig, n. ). This is why they have such flexibility in models, as well as their ability to build additional numbers of certain models in other plants, if necessary. BMW gives its consumers exactly what they want building models with options customized to fit the individual consumer (Ludwig, n. d). As a result, the company’s dealerships keep very few cars on the lot. Instead, BMW offers intimate showrooms where customers can view cars and place orders with individual custom options that they select (Ludwig, n. d).

After the car has been selected and the customer has chosen their individual custom features, BMW directs its manufacturing plant to produce the car and deliver it within a matter of days. Logistically speaking, when it comes to BMW and the channel of information, it means using CRM to strengthen communications with its dealers and make it as easy as possible for potential customers to get all the buyer information they need (Ludwig, n. d). BMW group also uses e-commerce strategies as a means to explore the market for effective business.

The group introduced an ordering system in 1998 which gives dealers the option of showing customers their desired car on the screen and confirming the delivery date on the spot. Through the use of this system, the time frame when the vehicle can be built with the desired fitting is configured within a few seconds and is reserved in the production process immediately (Ludwig, n. d). Furthermore, the manufacturing logistics department at BMW has such outstanding internal processes to such a level that when changes accord due to customers’ wishes regarding issues as omplicated as engine capacity to something as small as the color of the upholstery it can be immediately communicated, and in most cases resolved prior to shipment of the vehicle. Moreover, the company has adopted a consistent advertising strategy. In addition to the message of its values being portrayed in advertising campaigns, the company explicitly expresses one or more of these values in all BMW advertisements (Jones, 2010). Its design philosophy also runs through every BMW advertisement communicated through TV and print ads.

Its brand imaged has been built up by using over 300 different types of color press advertisements, as well as 64 different types of television commercials (Jones, 2010). BMW ads are always consistent and focus on the substance of the cars themselves. However, it is important to point out that BMW also relies on its sensitivity to the environment, which is clearly seen by how the company’s advertisements evolved in response to economic, environmental and competitive changes.

In addition, since the competition started to imitate BMW’s adverting messages of outstanding quality, BMW decided to come up with a more unique way to reach its target audience. The company did so by hiring Fallon Worldwide, an advertisement agency, to come up with new campaigns. Now BMW uses guerilla public relations campaigning as a means to drive sales. Its diverse promotion tactics include seeding news of the BMW Films at key Internet entertainment rumor sites and radio DJ programs in 20 key metro markets, and BMW manufacturers use web mostly to drive its brand (Jones, 2010).

In fact, BMW takes the phrase “beyond the banner” seriously. In its ads for the BMW Compact, the car drives out of the banner ad and around the sides of the browser window, to show how it loves corners. BMW’s online strategy in the UK is highly-brand drive, with clickthrough considered to be a side benefit (Jones, 2010). Not only that, BMW uses traditional banner ads, with pull-down menus, Superstitials, transitional ads which appear between pages, sponsorship and dynamic html ads like the one mentioned previously to promote its brand message and to drive the benefit of ownership in terms of the driving experience (Jones, 2010).

Superstitials are highly interactive, non-banner ads that can be any size on the computer screen and up to 100k in file size. They can feature animation, sound graphics capable of effectively conveying integrated advertising messages while protecting its Web site’s performance (Jones, 2010). BMW utilizes this form of advertisement to achieve multiple goals, including branding, direct marketing, commerce and entertainment. In conclusion, as a worldwide organization, BMW Group has a long and established heritage of manufacturing premium products and holding true to its four core values of technology, quality, performance, and exclusivity.

Today, BMW is one of the most respected companies and recognizable brands in the world. This is due to the fact that the BMW Group continues its leading position in the premium segments of the domestic and international automobile markets. The BMW Group has long pursued the objective of continuously and permanently increasing its company value and has done so by playing an active role in both shaping internal economic success factors as well as corporate citizenship in society as a means to gain and retain loyal customers. References Arnold, P. V. (n. d. ). BMW: The ultimate reliability machine.

Retrieved March 2, 2011, from http://www. reliableplant. com/Read/5197/bmw-reliability Boudette, N. E. (2005). BMW’s Push to Broaden Line Hits Some Bumps in the Road. The Wall Street Journal. Retrieved March 3, 2011, from http://www. bimmerfest. com/forums/showthread. php? t=83762 Holloway, N. (2002). The best-driven brand. Forbes. com Inc. Retrieved March 01, 2011, from http://www. forbes. com/global/2002/0722/024. html Horatiu, B. (2009). BMW Augmented Reality. BMWBLOG News. Retrieved March 02, 2011, from http://www. bmwblog. com/2009/09/03/bmw-augmented-reality/ Jones, J. (2010).

Driving Success Digitally. Response, 19(1) 30-35. Retrieved March 7, 2011, from EBSCOhost Direct database. Kotler, P. , & Keller, K. L. (2009). Marketing Management. Upper Saddle River, NJ:Prentice Hall. Ludwig, C. (n. d). Standing atop the Welt of BMW’s vehicle distribution. Automotive Logistics. Retrieved March 5, 2011, from EBSCOhost Direct database. Wanke, M. , Bohner, G. , & Jurkowitsch, A. (1997). There Are Many Reasons to Drive a BMW: Does Imagined Ease of Argument Generation Influence Attitudes? Journal of Consumer Research, 24(2) 170-177. Retrieved March 6, 2011, from EBSCOhost Direct database.

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Exploring Business Purpose

The main sorting of businesses is into the primary, secondary and tertiary sectors: I should choose two different organisations covering these sectors and for each one: a) Describe the main activities (what does it makes, what it does, what does it sells or what does it provides? ). b) Explain which sector it is in and why. Primary, secondary and tertiary are sectors in the businesses. A definition of each sector is given underneath:- Primary sector:-

Primary sector is the first step which is business producing raw materials or natural resources from the earth. Farming involves growing crops and rearing animals, providing food, wool and skins. Mining and quarrying involves extracting raw materials – oil and coal, for example – from the earth (or under the sea). Fishing involves catching sea life. Secondary sectors:- This sector is made up of businesses that manufactures / construct goods . For example, Processing raw materials (from the primary sector), such as refining oil into petrol.

Manufacturing – making products from raw materials (or other manufactured products), such as cars. Construction – for example, using raw materials, such as wood and stone, to build houses. Textiles – making clothing products from raw materials, such as wood, or man-made materials, such as plastics. Tertiary sector:- This sector includes all businesses that provide a service to a business or to individuals. This is the largest sector of production. Retail is selling goods produced by the secondary sector in shops.

Tourism is providing services to people who are travelling for fun. Education is teaching people new skills in schools and colleges. Health is providing services to ill people. Banking is providing financial services, such as lending people money and helping them invest their money. All these sectors are linked as a sequence of production. The chain of production diagram is shown below to create a better understanding:- For my primary research I will explain two companies, one local and national.

I am going to choose are:- Millets Farm Centre for my local primary industry and shell for my national industry Primary industry: For my primary local sector I will prefer to write about Millets Farm. Millets Farm is a local Farm in oxford shire because it is only located in Oxford. It opens 7 days a week and has free Entry to all great visitor and retail services. Millets Farm has over 800 free cars parking places for their all customers but especially for disables.

They are Primary they because they growing natural resources from the land like farming and instead for this they are also opened a new farm shop in Evesham, Worcs which provides us with lots of vegetables and fruits such as like carrot, cucumber, cabbage and also with fruits like apple, pear, orange many more from more growing in farm and putting it as through to secondary sector. The address of Millets Farm is: Kingston Road Frilford Nr Abingdon Oxford shire OX13 5HB Primary National industry: For my primary national industry I am going to write about shell because it’s all around the world.

Shell is a worldwide oil company of Dutch and British origins. Forbes Global 2000 in 2007 ranked Shell the eighth largest company in the world. Also in 2007, Fortune magazine ranked Shell as the third-largest private sector energy corporation in the world, behind of Wal-Mart and ExxonMobil and Shell company’s has five main core businesses in the Exploration for and Production, processing transportation and marketing of hydrocarbons oil, Gas and Power, Refining and Marketing, Chemicals (the “downstream”), and Trading/Shipping, and operates in more than 140 countries and territories and employ 108,000 people worldwide.

A shell company was created in February 1907. Shell Ship Management Limited Manannan House Market Square Castletown IM9 1RB 044 (0)1624821500 Secondary – BMW Group Plant Oxford For my local secondary business I will choose Mini BMW which is in the secondary sector in oxford shire and it also known as manufacturing. Why BMW is a secondary business and also why it is known as manufacturing because they are like to metal – and they are also turning raw materials into goods such as BMW mini cars. BMW mini factory is located in Oxford but the Current owner is German. They are producing automotive brand new mini BMW cars.

They are the only producers of minis in the world the build 355 minis a day they employ 4500 workers. These minis are shipped all over the world from the and sold from BMW show rooms or on online stores BMW employs around 8,000 people in the UK with an additional 11,000 people in its 158-strong dealer network representing the BMW, MINI and Rolls-Royce brands. The UK is BMW Group’s third-largest market by sales and the second-largest production location. The BMW Group has invested over i?? 800 million in its UK operations since 2000. www. mini. co. uk National Secondary Business Cadbury’s

Cadburys was founded in 1989, the headquarters of Cadbury’s is in Berkeley Square, London, England, UK, and is the only major international confectionery manufacturer making chocolate bars and sweets in Birmingham. They are a well-known international industry and have been in business for more than 200year in the UK. They are a secondary business because they take raw materials such as coco beans, sugar, popular Dairy Milk and turning it into chocolate for consumers to buy cheaply. Cadburys is one of the most famous chocolate brands in the world. Cadbury’s Consumer Relations Department Cadbury PO Box 12, Bourneville

Birmingham B30 2LU Tertiary local CHENEY SCHOOL (OCS) Cheney School has been part of the life and education of Oxford since 1797. Cheney school is a local tertiary business because it is only located in oxford shire. It is provides education for all students which are call services as well. So that service get all student somewhere in their life to realise, achieve and brings success in their life for future for e. g. when they do their GCSE Cheney School so after passing their g GCSE things so they can easily go into any Colleges for A- levels, or universities and the students also can get good jobs for in future.

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The BMW Action Plan

Table of contents

BMW Corporation is an automobile manufacturing company established in with a global presence. With the three brands, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its sights set firmly on the premium sector of the international automobile market. To achieve its aims, the company knows how to deploy its strengths with an efficiency that is unmatched in the automotive industry. From research and development to sales and marketing, BMW Group is committed to the very highest in quality for all its products and services.

Along with its automotive concerns, the BMW Group’s activities comprise the development, production and marketing of motorcycles, as well as comprehensive financial services for private and business customers:

  • Automobiles: With BMW, MINI and Rolls-Royce Motor Cars, the BMW Group is the world’s only car maker to pursue a purely premium strategy for all market sectors covered by its brands, from exclusive smaller cars to top-of-the-range luxury limousines.
  • Motorcycles: Premium is the key word for BMW Group motorcycles as well.

It have enjoyed great success with its strategy: to develop and build the best motorcycles, set standards with regard to technology, environmental protection and safety, and provide outstanding customer service in the pre- and after-sales phases.

  • Financial services: BMW Group sees financial services as a key factor for success in today’s mobile world. It has established an extensive product portfolio which supplies expert information and advice for situations and questions relating to the finance sector providing services such as financing and leasing, asset management, dealer financing and company car pools.

Other business interests are insurance (Bavaria Wirtschaftsagentur GmbH), IT consulting and systems integration (Softlab GmbH). BMW Corporation is a transnational company with its headquarters in Munich, Germany and research and development centers in Munich, Austria and California.

The production for BMW Group and its global markets takes place in the following seven countries: Berlin, Great Britain, Sounth Africa, China, USA, Austria, and Brazil. Assembly takes place with the help of external partners in the following locations: Hanoi, Jakarta, Indonesia, Kaliningrad, Russia, Cairo, Egypt, Kuala Lumpur, Malaysia, Manila, Rayong, Thailand.

In order to enhance and maintain its presence in key markets BMW Group marketing subsidiaries are present in Argentina, Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, Germany, Great Britain, Greece, Hungary, Indonesia, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Philippines, Poland, Portugal, Russia, South Africa, South Korea, Spain, Sweden, Switzerland, Thailand and USA. Due to its diverse nature of operations and geographic locations with over 100,000 employees in 120 countries, BMW Group’s Cultural Communication is a significant part of the company’s corporate culture.

By providing a constant flow of internal information on our cultural activities, Cultural Communication gives employees a broad palette of offers for their very own recreation. In addition, BMW Group displays many works of the youngest generation of artists in numerous of its buildings around the world. As a company with significant international presence, the BMW Group regards itself as a global citizen whose task is countering issues that relate to diversity (e. g. Racism) through concrete programs.

For the BMW Group preventive work with children and youth, focusing especially on aspects of intercultural learning, plays the most important role in these programs. The world population has been growing every year however since the late 1980’s population growth has decreased from 85 million per year to average at 75 million per year from the year 2000 onwards. This trend shows that the growth rate percent has decreased from 1. 9% in the 1980’s and will continue to decrease to 0. 9% in the year 2020. The overall rate might be declining but it still means that more people will be added per year, at almost the same rate.

This will increase the overall population of the world by 2050. (Source: United Nations, World Population Prospects: The 2004 Revision (medium scenario), 2005) The diversity trends identified over the period of years are summarized below: General Trends: 1. The population is rapidly growing more ethnically and culturally diverse. The overall population will be 20% higher by 2020 and 50% higher by 2050. 2. The number of older active citizens will increase 3. The English language as a first language is on the decrease, as we become more multicultural.

Business Trends

  1. Businesses in developed countries will have to do more and more with the same or fewer workers. This leads to the need for more adaptable workers and organizations.
  2. Technology, especially the Internet, is transforming the way people work, live and connect.
  3. Concerns about security of property and the effectiveness of governments to provide protection has increased people’s anxiety worldwide.
  4. Businesses have to be more transparent and accountable to their consumers and employees. The Diversity Action Plan for BMW could be:All newly hired employees should be provided with a copy of the Diversity Plan and receive a brief introduction to diversity awareness during their orientation raining.
  5. Each employee should receive more intensive diversity awareness training, which must be completed prior to the commencement of job.
  6. Continue the development of a diversity network to ensure that diversity initiatives and information are distributed throughout the organization.
  7. Provide new supervisors and managers with training on how to manage diversity in the work environment.
  8. Monitor Diversity Plan accomplishments on at least a quarterly basis.
  9. Implement District Strategic Plan objectives by establishing additional communication tools to promote cultural awareness.
  10. Develop a diversity Web Info page that will provide all-inclusive information on District cultural activities, community organizations and agencies, cultural heritage information and resources.
  11. Provide opportunities for District staff and management to attend Diversity training. Identify, contact and hire external diverse speakers for presentations at Staff Day.
  12. Continue to work with community organizations and schools to establish networks to enhance and promote diversity and awareness.
  13. Expand the development of an intern program for prospective staff to introduce the library profession as a truly viable career option to high school and college students.
  14. Develop a meaningful process to evaluate the effectiveness of our mentoring programs.
  15. Develop statistical analysis of District demographics, evaluating and reporting at the close of the calendar year. 13. Provide updates on grievances and external complaints on a semiannual basis: ongoing.
  16. Evaluate and report the accomplishments of last year’s Action Plan.

Develop goals and objectives of the Action Plan for the upcoming year: ongoing. As there will be a more diverse recruitment pool, increased funding opportunities, urban institutions will be having the potential to attract new audiences and more intercultural encounters, though stressful in varying degrees, are inevitable and necessary for intercultural understanding and transformation strategies that correspond to these issues will have to be made.

These strategies may include

  • Research demographic trends data for your community
  • Identify communities for partnerships
  • Develop focus groups
  • Develop programs and special events with partners
  • Market yourselves to potential audiences
  • Create an inclusive environment
  • Set goals and evaluate your progress and redesign as needed
  • Create inclusive work environment for staff and volunteers
  • Form partnership with diverse community groups
  • Market to media, community, educational, social, political, and church groups that serve diverse audiences
  • Create job opportunities and internships
  • Implement training for all staff to increase cultural awareness and to value and work successfully with diverse visitors and co-workers The trends show that apprehension and concerns regarding job security could lead to morale issues if not managed properly, there will be less real person face-time and more technology interaction. Actions pertaining to the following will have to be made.
  • Will need to find technology that is more user friendly and engaging
  • Develop more training programs to help employees adapt to changes or gain new skills
  • Have business departments’ work with all departments to create and evaluate effective business models for all programs and activities
  • Manage outsourced relationships to reflect the institution’s goals of diversity and customer service and evaluate success

The University of Nebraska at Omaha is committed to becoming a leader within the higher education community regarding diversity and the creation of a campus culture of inclusion. In order to realize this leadership, the university made use of a similar diversity action plan. However the results are yet to be determined in the long term.

References

  1. http://www. prb.org/pdf06/06WorldDataSheet. pdf
  2. http://www.aza. org/AboutAZA/Diversity/Documents/DiversityTrendsReport. pdf
  3. http://www.prb.org/Content/NavigationMenu/PRB/PRB_Library/Graphics_Bank/Population_Trends2/Population_Trends. htm

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Mini VS Audi Marketing

Overview:

The automobile industry has forever been in the limelight for just about everyone, from cars that are easily affordable like the Ford  or the Volkswagen there are cars that are made to order as royal  as the Rolls-Royce. But among these are two distinct cars that have made quite a mark in the industry as well as with their target audiences, one has a fan following while the other is a keeper’s piece.

British Motor Company launched its Mini in the year 1959, it was invented as a challenge given to Sir Alec Illiginos, to accommodate adults in a small car that would also be economical to use and have the capacity to fit 4 adults, and big enough to have them travel in it without having any problems, therefore Sir Alec designed the Mini. The Mini has been the heartthrob of housewives initially but later on it became the newest trend when formula one driver and star John Cooper designed the first Mini (here designed does not refer to inventing), this was the first time that anyone had customized a Mini. After that a series of cars, from different stripes to all sorts of flags were printed on the roofs of the Mini’s. The younger generation loved it, as this was easily accessible, as these minis are not very costly, they aren’t cheap either, but still they come in the budgets of many who can’t go for other expensive cars.

The Audi, which was invented in 1932, by the then four major car companies, the Audi though in any of its models, has always been related to prestige and recognition. The Audi is no ‘cheap’ car, for the people who buy Audis are always independent people who are generally more than average income people. The Audi from its very first appearance in 1932 has been the centre of attraction for those who want to ‘show-off’

Here in this report the two cars discussed earlier are going to be discussed in detail.

Target Market:

When speaking of a mini, the picture that comes into the minds of many would be a cherry red, small car with a roof of black and white stripes, with a smiling British girl sitting in the driver’s seat. This is the target market of Mini, as the target audience by description is the people who the product is targeted to, the Mini is a car that usually appeals to the younger lot, and as younger people don’t have many means to make money, the ranges for the money are also kept in mind, most Minis are inexpensive, while they do offer differentiation in the way of customization.

The Audi on the other hand is much of a prestige car, there isn’t any question of customization here, as the real beauty of this car is in its ‘originality’ if the car is supposed to be bought, it is obvious the person belongs to an upper class, upper society family, or that person has made enough income, because Audi’s are not supposed to be easily affordable for just about anyone. The people who drive Audi are independent people who generally are in big positions, have a good pay, or own a business or something of that sort which enables them to have strong finance availability.

The makers of Mini basically wanted to target the teen group (apart from this they have SUVs as well), this group of people is very much into customization as they have a lot of time to spend, they want to be different in a ‘funky’ way. This is why Mini (even after being brought by BMW) did not loose its originality, and is still small in size, comes in different colors, and is still quite a head-turner.

The makers of Audi had another way of looking at things, they wanted to focus on the income of the buyer and then they gave that income group the class and prestige that they deserve and ‘demand’. This way when the target audience actually buys Audi they get a satisfaction of buying the product, though Audi is also a head-turner, but this time it’s the class and the look of a Audi that turns heads, the first thing that comes to the kinds of most people who hear the name of the Audi car is a good looking man, wearing preferably a suit, and has an attitude to himself. This is exactly the sort of personality that the company wanted Audi to have.

Here it would be beneficial to mention that though both, Audi and Mini, are cars and are meant to travel, but they both have special features, and somewhat different from the rest of the cars available in the market.

Brand Comparison:

Audi and Mini have both become big brands, both have a multi sub brands list attached with each of the main brands, but lets first talk about the main  or lets say the parent brands in detail. As mentioned earlier Mini was invented as a challenge by Sir Alec Illignos , after that the brands growth had already started, it was the most popular car amongst the housewives, this was due to its compact size and affordability, as the whole family (talking of medium sized families) could easily fit in the car and still be comfortable. But at that time the customization of the Mini had not started, this was brought in fashion by the formula one star John Cooper, who did his Mini in the British Flag and on the bonnet did a pattern of black and white stripes, it was then that the younger lot became buying the mini, because of the fad that had emerged due to the ‘creation’ by john cooper. The fad never really gave itself up, the fad turned into a trend and before anything more drastic could happen, The Mini was taken up by BMW from British Motor Company. BMW had to let the world know it had the mini now, so they did a few changes, obviously the name Mini had already created a personal appeal of the product, the product therefore couldn’t be changed, what could be changed was the look of the car, the car’s look has changed a bit and it has grown a bit wider since its last shape. But still it is comparatively the smaller car. Talking about Audi, well since the time Audi came into the market, a lot has been said about its class and the prestige that it offers its buyers. The Audis are high class cars, which are built for maximum space, people who drive Audi’s are seen as independent people, the Audi is a spacious car, has the ability to tow, which also tells a lot about how strong its body and the engine are, because if you tow a car or any other heavy object the car’s own weight and that of the other car or whatever goes directly on the engine, this is why the Audi is more popular among the wealthier people as not only is it spacious, it is heavy duty as well. The engine also has to be explained here because the engine’s heavy duty only tells you more about the speed and technology of the car, Audi’s or more frequently they are referred to as SUV’s are the sports utility vehicles, this means that they are not like the normal cars that drive around the town, these are special cars that have special speeds. The one thing that sets Audi different from most cars and Mini as well is that it is very fuel-efficient, what does that mean? – well that means that the mileage (miles traveled) are more in this car than the others, there would be cars that are also much more efficient in fuel than the Audi but talking here about the Audi, it can be said without hesitation that the Audi is better than many when it comes to being fuel efficient. The Audi is also customized in certain ways, how? One may ask, but its very simple to answer that, the Audi as told about ten times, is a “prestige car”, so it cant be having flags or horses painted on its bonnet or roof, neither can it have bright red or orange shades, but what it can have is the Leather seats, the interior done in wood, maybe some other material if you would like, the color of the interior can be changed (basic tones of Metallic colors only) the outer colors are also customized but even here the shades are limited to a few metallic shades, the difference in the customization of both the cars is that with Mini the owner or the buyer doest have to be limited with colors or materials, with Audi, the Company gives a very limited number of shades of Metallic colors only so that the prestige of the company and the satisfaction it is supposed to offer does not get hurt in the eyes of the general buyer. (Here general does not mean the average person for Audi) For Audi the class of people is different and therefore a simple glitch at the hands of even one customer can wound the entire company’s image in the eyes of all the prospective and existing clients.

The price ranges for Mini start from as low as $10,000 (mini one) and may in some cases go up to $23,000 (Mini cooper and clubman included), this price range is done for the affordability, and also these prices are modifies prices for the newer models by BMW, the prices were comparatively low when the company was not owned by BMW. Whereas the Audi’s price ranges starts from $75.000, and go way above than $ 95,000. The huge difference in price does show the difference in the target markets the companies target their products at, but what looks as a cheap car is not so cheap after all, as $ 10,000 is not a meager amount to be paid for a car. The publicity of Mini is done through the open market, which is actually that the product in the market and on the streets markets itself, as for the Audi; special TV commercials are designed to get the Prestige idea across to the target audience. The placement for Mini is done with the help of car dealers, and these car dealers make or customize these cars out on their own and sell them, this actually involves a third party contract for the Mini, the original Mini can also be brought directly from the company, and specifications about the customization designs is given to the company by the buyer. As far as the Audi is concerned, the placement of the Audi is done in special showrooms that are built to accommodate Audi itself, moreover a virtual tour on the internet website can also be taken, special rates and special orders are taken for the Audi, as it is made clear that the Audi is not an ordinary car, the customization does have an added price tag to it depending on what type of customization u want to do.

Conclusion:

Both cars have different target audiences and are relatively very different than each other but still both are “specialty products”  both have a different taste for everything, and people from different tastes choose them differently. In the end its just the buyers need that actually makes him or her buy the car, the one who buys Mini will be a chic person who likes to be fashionable and still not be too spendthrift, or doest have a lot to spend, on the other hand is the Audi guy who has a lot to spend, he earns it so he wants to spend it, this person wants to show the world he has achieved something in life, and what more better way to show-off than to own a Audi.

References:

Arnold , John . E-Mail Marketing For Dummies . For Dummies,  2007.

Kotler , Philip , ; Armstrong, Gary . Principles of Marketing,.Prentice Hall; 12 edition, 2007.

Murray , Chris , ; Soundview Executive Summaries . The Marketing Gurus: Lessons from the Best Marketing Books of All Time.Portfolio Hardcover, 2006.

http://www.audi.com/audi/com/en2.html

http://en.wikipedia.org/wiki/Mini

http://en.wikipedia.org/wiki/Audi

http://www.mini.com/mini_worldwide/mini_worldwide.html

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Honda HRV advert

I found this advert very effective and has been designed extremely well. In my opinion I believe the whole image revolved around the slogan in some way or another, which brought everything together. Making out the car to be the fifth person in the slogan gave the impression the car is one of the family which effectively is vital, as the reader wants the car to fit into their lifestyle. If you were about to buy a new car you’d want a model which your sure you could get to know and love like anyone else, which is exactly what’s happened in the advert itself. The family have grown to trust the car and be able to leave it wide open and on its own without being stolen so they can enjoy their lives more thoroughly. For all these purposes this advert brings about a car that has only ever been dreamt about.

I decided to use techniques in the Honda HRV advert to create my own car advert. I’ve designed an advert for the BMW XXX , a sports car. My target audience is men in their late twenties and early thirties, who are single. The social groups are aimed to be either A or B as the car is priced at around �20,000. I’m trying to sell the car on the basis that it is fast, safe and classy. The main characteristic of the model, is its speed. Women will be attracted to the car and then move onto the driver. The car itself should bring the buyer a more flexible and enjoyable lifestyle.

My advert consists of a stretched road, a speed camera, plenty of trees and the BMW xxx. The scene is to show an image of every day life if you were to buy the new BMW xxx. The car is in the far distance with just tyre marks left on the road surface. The trees either side of the road, are blurred and the BMW logo and slogan I’ve placed in the top left corner. The speed camera box I’ve coloured yellow and the actual camera, red.

Underneath the BMW logo, on the left I’ve written my slogan, “The new, more potent BMW xxx”. I’ve used this slogan because it has two different meanings, like the Honda’s slogan does. To begin with, the reader will think the car is a potential car, with a lot of stored energy. But the other meaning is that it has great power and influence. Therefore, you’ll have full control over your life and be able to lead it as you wish.

In the top left hand corner, I put the body copy. I’ve included the car logo aswell as information contacts in the same corner. The body copy I’ve used is “The Ultimate Driving Machine”. I felt the copy is very important in the ad so each word begins with a capital letter to indicate this. “The Ultimate” gives the reader the impression that they’ll never drive a better made car than the BMW xxx. As for “Driving Machine”, this is simply explaining how the car is a machine and that it’s reliable and will always keep going.

With the images, I’ve placed the car far away so that the reader believes the car could be in one place and then shoot off without anyone being any the wiser. This should make people who have stressful lives be more interested in the car, as I’m sure they’d like to be able to get away from everyday problems as quickly as possible. The smoke and tyre marks left on the road show how fast the car can go and that the tyres can handle any surface. It’s a sunny day, which is aimed to make the car seem to be a cheerful and a happy vehicle. The speed camera is there to show how quick the car can go on a long stretch of road and the smoke to prevent the number plate from being seen. This makes the reader believe that if he buys the car he’ll be able to have the lifestyle of the risk taker driving the car. On the side of the road the trees show the speed of the car by them being very blurred. The effective this brings is that it shows how fast you can get from one place to another in the car.

The slogan and copy typestyles, in the advert are both very formal and straightforward to read. This I thought was important for the reader because if they have a sight problem they’ll need a clear font to be able to read the slogan and copy. Having the text as a dark black colour ensures the writing stands out. With a lot of light colours surrounding the text, this also helps the sight of the words. I had to decide whether to spread out the slogan and copy but I felt that with them together, in the same corner, they’d be more catching then if they had been elsewhere. The reader’s brain can now realise how the slogan and contact numbers are in that corner and therefore will be aware of this the next time they see the advert.

The layout of my advert I’ve thought through in deep detail. I picked the top left corner for the slogan and logo, as that’s where the eye first looks when it hits the page. Then in the middle of the advert I placed the long road with the car in the distance. The BMW xxx, I coloured a bright red which the reader will be lured to look at. The trees having been blurred, to show speed, and have been stretched out to take up the empty space, which was blank beforehand. I put the speed camera in a primary optical area to make sure the reader recognises it being there.

The world I’m trying to represent is an exciting, thrilling world. I’ve shown this by the car going way over the speed limit and being spontaneous. The reader is supposed to get the impression that if they buy the car they’ll be rewarded with a new pulse racing lifestyle. The advert also makes it seem that the reader would become a risk taker if they bought the car. I’ve done this by putting smoke in the image to prevent the speed camera from recording the registration number. This will make the reader think he’ll have an advantage over other car drivers. The trees play a vital part in my advert because they represent speed, which is the BMW xxx’s best feature. Any man who knows a bit about cars would realise that if he wants to get a woman this could be his perfect method. Most women are attracted to a nice guy who’s riding round in a flash car. This would bring the driver a more social and out-going lifestyle.

I believe my advert is very effective and shows the type of lifestyle any man is entitled to lead. My target audience has been aimed at men in there twenties and I think my advert would appeal to each and every one of them. All of the images in my advert link together well, to produce a risk taking world based on enjoying and having an exciting lifestyle. The readers are given a clear image of the car and what its main qualities are, for their benefit. Overall my advert should make people think about what car they are best suited too and that the BMW xxx is the car for them.

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Brand management of Audi

GAG designs, engineers, manufactures and distributes automobiles. Audio oversees worldwide operations from its headquarters In Inconstant, Bavaria, Germany. Audio-branded vehicles are produced In nine production facilities worldwide. Audio has been a majority owned (99. 55%) subsidiary of Volkswagen Group since 1966, following a phased purchase of AUDIO Jag’s predecessor, Auto Union, from Daimler-Benz. Volkswagen reluctance the Audio brand with the 1965 introduction of the Audio Bestsellers.

The company name Is based on the surname of the founder, August Horror. Horror”, meaning “listen”, becomes “Audio” when translated into Latin. The four rings of the Audio logo each represent one of four car companies that banded together to create Audio’s predecessor company, Auto Union. Audio’s slogan is Pursuing durra Techno, meaning “Advancement through Technology”. Recently In the united States, Dual has updated the slogan to “Truth in Engineering”. Audio is part of the “German Big 3” luxury automakers, along with BMW and Mercedes-Benz, which are the three best-selling luxury automakers in the world.

Audio India Audio has been selling Luxury cars in India since 2004, however the Audio India was established in March 2007 as a division of Volkswagen Group Sales India. [l] Audio is represented In 110 countries worldwide and since 2004; Audio has been selling Its products on the Indian market. In March 2007, Audio set up its own sales company for India. By establishing Audio India as a Division of Volkswagen Group Sales India M. Ltd. In Iambi, Audio is making a clear long-term statement in the country with ambitious growths plans.

Audio’s goal Is to become the leading automobile luxury brand In the Indian market in the next few years. The Dual India strategy encompasses significant investments in branding, marketing, exclusive dealerships many in India. It has now inched past both its arch rivals BMW and Mercedes Benz. The reason for that are the introduction of new models and constant marketing innovations whereas maintaining the customer experiences the top most priority. Brand Anatomy Brand Identity Audio with time has focused on certain key aspects while positioning its brand.

It’s an inspirational brand for most of the consumer base. Keeping this in mind and to keep its positioning different from its competition from BMW and Mercedes Benz, it has highlighted the following factors. The brand identity prism of Audio gives a view of that. Brand Identity Prism Physique: Audio flaunts a very stylish and sporty look. It looks very modern and a luxurious vehicle. The different models from the company are all designed keeping these parameters in mind.

Relationship: Audio has always put special emphasis on the ultimate driving experience and the fact that their vehicles are fun to drive. Reflection: The products from Audio reflect features like refined, fascinating and visionary. It projects itself as the car of the successful and confident. Personality: All the vehicles from Audio are very sporty, aggressive in nature and represent charming sophistication. It also emerges as a progressive brand. Culture: The brand clearly projects the German cutting edge technologies as their core and is also an inspirational brand for lot of people.

Self Image: User of these cars is someone who is dynamic, young and has an attractive personality. The communication of the brand reemphasizes this image of audience. Brand Essence The brand also compares itself to its competitors and calls itself a very healthy mix of most of them. The essence of the brand is its premium nature. Factors like being sporty, luxurious and comfortable then forms the character of the brand. The character of the brand is projected as that of a sporty, luxurious and a unforgettable car. The communication is based on the same and strengthens this image.

Brand Image Compared to its competition, the other two German giants, BMW and Mercedes Benz, the positioning is quite different and is that of a young brand. Audio has tried to differentiate the brand from Mercedes and BMW by calling it a car for the young and dynamic and not a grandfathers car. It is a niche market that Audio is trying to cater to. The difference between the images of these brands can be explained as below. Brand Image Compared to competition, Audio flaunts a younger look and image; it’s also a modern and a luxurious ride. BMW on the other hands focuses on the delight of driving.

Mercedes Benz on the other hand is more of a glorious car, signifying success and excellence. Brand Equity: its audience strongly connects with the brand. Other characters linked to the brand like being young, dynamic and progressive also strengthen the same. The constant path breaking communication strategies adopted by Audio has always been able to break the clutter and reach its audience. The communication modes opted is also very specific for the brand owning to the niche that it caters to. Another key point is the consistency in quality of products that it offers.

CUBE Model Brand Architecture Branded House as Audio emphasizes a single master brand, and the products are in the same category and offer similar sets of benefits Brand Portfolio The consistent quality levels it provides is what keeps the consumers linked to the brand. All the models that Audio has in different segments of the industry are all consistent with their positioning. This quality level and the sporty and modern look is what the consumers relate most to. The unparalleled driving experience promised is also a key equity generator for the brand. Brand Positioning POP (Points of Parity) German car manufacturer

Durability and Reliability Stylish, sleek designs Attractive POD (Points of Difference) Audio BMW Mercedes-Benz History and Heritage Only independent luxury car maker Quality and Prestige Logo(4 inter-connected rings) Characteristic Symbol Several successful new products Number of variants Comfort Safety Luxury with Performance efficiency and stability Stands for Glamour and Fashion Sporty and Young Dynamic and Innovative Positioning Statement (Audio) For young affluent males , Audio is a high-end luxury car that is sophisticated, urban and technology driven because it is has one a kind styling and focuses on solid reaffirmations and stirring driving performance.

MIMIC (Integrated Marketing Communication) Audio: In order to increase its brand recognition and gain a greater market share in the luxury automobile market, Audio essentially created a blitz-style worldwide marketing campaign a few years back. The effort was very successful in North America, where the German company spent more marketing dollars than any of its competitors by advertising in a variety of different mediums, most notably television. It aired spots during the Super Bowl, President Beam’s inauguration, the 2009 Academy Awards, and other high profile or prime time moments. It also created a very successful viral marketing campaign online, which connected well with a very Internet-savvy global market and increased recognition.

As stated by Audio’s Chief Marketing Officer Scott Gogh, “a brand needs to have buzz” (Holiday, 2009), and that’s exactly what this sophistication, fun, and practicality to a complex American market, and that built momentum for its performance worldwide, where it was able to become the second- leading luxury car manufacturer. Audio has been advertising in Superpowers for the 6th consecutive year in an effort to further build awareness of the luxury auto brand in he U. S. , and also to promote its “Sporty’ image. This year Audio again tapped into shared experience with a topic that’s classic and universal: the high school prom. It features a dateless young man determined to go to the dance anyway, empowered by his dad’s handing him the keys to the new SO in the driveway. Audio asked consumers to vote on the ending as a way to spur early interest and get them involved.

Last year it tapped into the country’s “Twilight”-fueled vampires trend with an ad that featured Audio’s innovative headlight technology – Daylight, Now in a Headlight. The company has seen increasing success in releasing teasers and ads prior to game day. In 2010, its “Green Police” teaser garnered 900,000 views pre-game; 2011 ‘s “Release the Hounds” teaser got 255,000 views; and last year’s Vampire Party’ full ad, released early, garnered 4 million views before the game. When it comes to Audio, everything is about personal selling. Yes they create advertisements on TV, on billboards, on almost everything they can. But once you get past the advertisements, and you actually go into a dealership, everything becomes about you.

They want to sell you a car, obviously, but they understand how big of an investment a $100,000 car is, so they take the time and the care to make sure you are buying exactly the right car to fit your needs. BMW The reintroduction of BMW Mini Cooper automobile to the US market used billboards, print ads, an interactive website, and guerrilla marketing where a Mini was mounted on top of a Chevy Suburban and driven around New York City. Each part of the campaign was well coordinated with the others. Movies have always played a key role in Bum’s promotions. The company has garnered huge waves of publicity from having the Mini Cooper featured in The Italian Job and for arranging or James Bond to drive the new BMW. To reach the internet-savvy buyers, BMW also hired top directors to make short films especially for Web viewing.

Although the films ran online for only 4 years, they were viewed more than 100 million times, won numerous awards, and were later issued on DVD for free distribution to prospective buyers. Bum’s sales promotion efforts also included samples in the form of extended test drives. Eye-catching point of purchase displays in dealer showrooms support the overall MIMIC efforts by echoing the images from the company’s advertising. Ambush Marketing Audio’s latest approach seems to be challenging the luxury cars it aims to outpace and overtake in sales, particularly BMW. Both Audio and BMW are top-notch luxury cars proved creative and entertaining! Audio sort of challenged BMW to a billboard chess game: The Audio Vs.. BMW award Jabs Audio attacks Mercedes with its Q luxury SSL. Ft.

Audio is trying to proclaim itself as the ultimate luxury brand Audio : Global Brand Audio is one of the most respected car companies and recognizable brands in the world. It maintains the global image of being Sport, Progressive and Sophisticated. It aims at creating desirable cars, setting leading standards in craftsmanship and uses pioneered advanced technology. The brand values that Audio hopes to promote worldwide are “sophisticated, urban, and technology-driven” and a brand image comprised of those distinct values has been effectively imbued in the market and the minds of consumers in recent years. Audio’s main differentiating factor is its emphasis on modernity and technology, and it tends to target a slightly younger demographic than BMW.

It creates sporty, elegant cars that are sophisticated enough to qualify as “luxury’, but also fun enough to qualify as young and innovative. This positioning strategy appeals to young entrepreneurs and professionals, often more so than Bum’s general focus on sheer class and sedan-style automobiles. However, certain cases of Localization by the brand are given below. Audio Localization in China those from different regions of the world, and it makes a great effort to create a “globalizes” marketing campaign because of that understanding. Audio caters well to the needs of Chinese and Asian customers, and it also focuses on adapting its business to Asian cultures in order to develop good relationships with suppliers.

Audio currently holds the greatest market share in the Chinese market, and has for the past two decades. The company’s business in China increased over 37% in 2011, making it the largest market in the world for Audio. Today, China is Audio’s largest single country market in the world, where the company has shifted gears from “official car” for Chinese governments at various levels, as 85 to 90 percent of its vehicles were delivered to private users. Under its localization strategy, Audio added Q into its local production list, enriched its product portfolio in China from 19 to 31 oodles, increased the localization rate of its vehicles to 65 percent and expanded its distribution network from 167 to 309 dealerships.

In February 2013, Audio inaugurated its Asia research and development centre in Beijing, to develop terrain and e- mobility systems as well as technology cooperation with local suppliers, for China market and surrounding Asian markets. The company is currently planning to build its RSI Q concept car at the Beijing auto show, a crossover automobile that is expected to attract a great deal of attention in China and expand the company’s already impressive reach within the country. Audio Localization in Australia: Audio launched its first ever made-in-Australia ad campaign in August, running the theme ‘Australia. Land of equator. ‘ The $3 million campaign, which focuses on the suitability of Audio’s four-wheel-drive technology for Australia, is designed to assist the German marquee in its goal of becoming Australia’s top-selling premium car maker by 2020.

As a sign of confidence in its equator technology, Audio has launched localized versions of the same campaign all around the world. The ad campaign brings out the characteristics always associated with Audio – adventure, sport and has been a big hit n the Australian market. This ad campaign was launched to generate awareness of Audio’s leading all-wheel drive technology and it’s suitability for the Australian landscape and lifestyle. Using the custom-built ‘Land of equator’ Microsoft, interested Australians will be invited to design and direct their own TV from millions of footage options available. With around 1. 2 billion possible combinations, no two TV’s will be the same.

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How Bmw Is Improving The Way It Works Accounting Essay

This study will be looking at how BMW is bettering the manner it works. It will concentrate on how BMW trades with environmental protection, merely in clip production and employment patterns and what consequence these betterments have on the company.

Report

The first country this study will look at is how BMW is bettering its environmental protection patterns. BMW is a charter member of the U.S. Environmental Protection Agency ‘s ( EPA ) National Environmental Achievement Track which recognises companies for their environmental public presentation ; it is besides present on the Dow Jones Sustainability Group Index, which rates environmentally friendly companies ( Walker and Bird 2005 ) . The BMW group looks to “ carry on responsible and sustainable environmental policies, which are besides economically feasible. ” ( BMW Group 2003 ) . The BMW Group have set out environmental guidelines as the footing of how they conduct their day-to-day operations as a agency of accomplishing this. BMW aims to utilize resources in a responsible and efficient mode and undertake to protect our environment for the long term. As a consequence all divisions of the BMW Group are guided by the International Environment Charter ( ICC Charter for Sustainable Development ) . The group realises it has a corporate committedness and duty for environmental protection which reaches to all members of the BMW Group, directors and executives are expected to implement the environmental guidelines and to actuate employees through illustration puting to presume the same duty ( BMW Group 2003 ) .

The BMW Group has made a witting determination to reexamine the success of the environmental protection steps and to do farther betterments where necessary or as directed by ordinance or jurisprudence. BMW strive to cut down the effects of their operation on the environment wheresoever proficient, scientific or managerial know – how can accomplish economically feasible criterions which will ever transcend those required by jurisprudence. In development, design, production and the operation of installations, BMW use proficient and economic agencies for conserving resources and understating impact wherever possible particularly when presenting new production procedures and methods. Any new production procedure or method is assessed to see its environmental compatibility in the context of proficient, commercial and economic determinations.

As stated in the ICC Charter BMW “ take into consideration the efficient usage of energy and natural stuffs, the sustainable usage of renewable resources, the minimization of all inauspicious environmental impact and waste coevals, and the safe and responsible disposal of residuary wastes ” ( BMW Group 2003 ) . The BMW group implement environmental direction systems to measure all important environmental facets in progress.

BMW are to the full cognizant of their duty to the environment and are systematically using advanced engineering to understate exhaust emanations, fuel ingestion and noise emanations. By planing their merchandises to an optimal degree BMW guarantee that any environmental impacts are kept to a lower limit and by educating clients on the usage and care of BMW vehicles the group aims to go on protecting the environment long after the vehicle has left the mill ( BMW Group 2003 ) . Another manner BMW has found of protecting the environment one time the vehicle has left the mill comes at the terminal of the vehicles life where BMW promotes the recycling of the vehicle to avoid waste coevals and do usage of the secondary natural stuffs, This decreases the overall energy and resource ingestion in production and operation while finishing the rhythm for the reuse of stuffs taking to less waste traveling to landfill and fouling the environment. BMW expression to continue resources and better the environmental compatibility of their vehicles by developing alternate propulsion engineering such as H cell and biofuel which are invariably being upgraded and improved as patterned advance in engineering allows.

BMW have developed the CleanEnergy system which gives vehicles both a Hydrogen and gasoline armored combat vehicle which automatically switches between armored combat vehicles depending on what is required from the engine. The engine burning of H produces merely energy with H2O as a waste merchandise which gives a theoretically emission free fuel and possible a future free from emanations. ( BMW Group n.d. ) . Some critics of BMW accuse them of “ greenwash ” in mention to the BMW Hydrogen 7 which is the first auto to be made utilizing CleanEnergy Technology. It is claimed that the emanations produced during H fuel production outweigh the decrease of tailpipe emanations and that the Hydrogen 7 is a distraction from more immediate and practical solutions for cut downing emanations ( Wust 2006 ) . BMW do non restrict the alternate fuel doctrine to their vehicles as is seen in the illustration of the BMW works in Spartanburg in the U.S. which uses methane gas from a nearby landfill for 60 % of its energy demands which resulted in the works bring forthing about 60,000 metric tons less C02 per twelvemonth. For this accomplishment the Spartanburg works received the Energy Partner of the Year 2007 from the Us Environmental Protection Agency ( EPA ) . Amid other developments on the site this twelvemonth the Spartanburg works will breathe 92,000 metric tons of C02 less and salvage 7 million U.S. dollars per twelvemonth compared to 2008 ( BMW Group 2009 ) ( Njeri 2009 ) .

With about 16 billion ton-kilometres per transported to provide the BMW Group ‘s production sites with stuffs, deliver trim parts and accoutrements to the gross revenues operations and administer new vehicles worldwide. BMW needs to understate the environmental impact this creates by utilizing efficient conveyance logistics, such as meeting ends in increasing the per centum of low emanations bearers and capacity use. BMW expression at the per centum of metric ton kilometers covered by rail, route, sea and air and Aim to better these figures yearly. BMW sends their conveyance agents orders bundled harmonizing to volume and progressively merely pay them for the volume transported. This has the consequence of incentivising the conveyance agent to organize services in a more clip efficient and environmentally friendly mode so capacity is used and empty tallies are avoided.

Reclaimable disposable packaging has besides been optimised in order to maximize cargo capacity. ( BMW Group 2009 )

BMW ever try to choose the method of transit which produces the lowest emanations. As a consequence really small if anything is shipped via air as sea cargo is the preferable method. Over land route draw is minimised and rail transit is maximised wherever possible. In 2008 more than half of all new vehicles left the workss by rail with some workss despatching every bit much as 90 % of new vehicles to their finish by rail. Specialized trains are used to transport stuffs and trim parts and thanks to a new port in Brunswick distances screen by route cargo in the U.S. have been reduced dramatically. ( BMW Group 2009 ) .

BMW usage Just In Time production ( JIT ) which is an stock list scheme that strives to better a concern ‘ return on investing by cut downing in-process stock list and associated costs. Implemented right, JIT can dramatically better a fabrication administration ‘s return on investing, quality and efficiency. The BMW Group is bettering the manner it works in the country of Just in Time production to better run into the more specific demands of its clients. BMW clients can do many petitions for additions and can do their ain specifications for their vehicle so JIT is really of import. The BMW Spartanburg works produces many of the latest vehicles such as the X5 Sport Activity Vehicle and the Z3 Roadster. BMW usage mySAPa„? Automotive to run a tight provider web that keeps parts coming to the two assembly lines in a JIT manner to run into client demand ( My SAP 2002 ) .

mySap Automotive receives usage configured fabricating orders from the BMW planning system. The orders include all the parts required to construct each auto, the X5 for illustration has 100s of constituents listed in the vehicle measure of stuffs. mySAP generates the bringing agendas for each portion to fit BMW ‘s assembly line planning and sequencing. These long term prognosiss and short term JIT bringing agendas are so sent by BMW to its providers. BMW has an electronic informations interchange with its larger providers whereas other providers can entree the mySAP Automotive Supplier Portal where BMW posts the demands to supply up to day of the month information on its bringing demands. Using merely an cyberspace browser, providers can see release agendas, buying paperss, bills and technology paperss in existent clip.

When providers ship parts they send BMW progress transportation presentments ( ASNs ) to supply the auto maker with exact information on portion counts and bringing day of the months so that when the parts arrive at the BMW bringing dock they can be transferred straight to the fabrication lines ( My SAP 2002 ) . BMW besides uses the mySAP Automotive system to supervise production position in existent clip as it registers production verification information every three proceedingss, any parts consumed during assembly are removed from the stock list count and costs are posted to cipher the value of work in advancement.

mySAP Automotive helps BMW to cut down order to bringing clip and strengthens the auto makers supply concatenation activities in the countries of demand planning and the trailing and tracing of stuff bringings. This significantly reduces clip to client. By utilizing this JIT system BMW expeditiously manages stuff flow. JIT allows BMW to maintain the right degree of stock at the right phase of production in order to personalize every vehicle to run into the client ‘s specifications, for illustration one client may desire sat nav, leather interior and snow Surs whereas another client may desire cloth inside, metal wheels and cruise control. The JIT processes that BMW has in topographic point allows for this degree of personalisation where other companies may merely do two versions of a vehicle for illustration the Nissan Micra where you can either hold the vehicle with air conditioning and cruise control or you can hold the vehicle with neither you can non hold one or the other.

BMW are said to hold now entered the station merely in clip epoch and are presently looking to switch from the merely in clip method to bringing on demand. Many BMW workss are trying to do telling a vehicle and acquiring it on the same twenty-four hours as easy as possible, at first glimpse this seems rather an impossible undertaking. To do this possible BMW is doing major alterations in fabrication procedures ; Vehicles are being redesigned to cut down fluctuations in sheet metal to cut down the figure of differences in organic structure construction. For illustration the current three series has merely two organic structure fluctuations whereas the one before it had up to sixteen ( Chappell 2002 ) . BMW has besides improved from JIT by altering its process of delegating vehicles to clients. Previously when BMW received an order for a auto it would stomp a VIN figure onto a newly welded organic structure which meant the vehicle remained assigned to one client as it moved through the production procedure. Now BMW assigns the VIN one time the organic structure of the auto is constructed and painted. This purposeful hold gives clients longer to alter their heads and gives BMW more scheduling freedom. At franchises BMW has introduced a computing machine telling system which allows traders to work with clients to configure the vehicle wanted, when submitted the bringing day of the month will return to the screen in five seconds. When the order is submitted, it goes straight to BMW ‘s cardinal office in Munich where orders will be calculated every night and distributed to mills worldwide. ( Chappell 2002 ) . By following this station JIT method BMW are going more flexible to run intoing the clients ‘ demands while protecting themselves from one client altering their heads about a vehicle throwing off the production agenda.

BMW believes that companies are made by people and the more people encouraged to pull on single competences, thoughts and capablenesss, the better the company performs as a whole so the concluding country this study will look at is BMW ‘s employment patterns. BMW bases its human resources and societal policies on guidelines detailed in the United Nations Global Compact, the ICC Business Charter for Sustainable Development every bit good as the BMW Group ‘s Joint Declaration on Human Rights and Working Conditions. BMW promotes the enlargement of accomplishments every bit good as employees ‘ mental and physical productiveness. They support a diverseness of civilizations and ways of life at the company by implementing a assortment of working theoretical accounts to assist employees accomplish a work-life balance.

BMW offers competitory, public presentation based wage every bit good as legion benefits to honor employees for their committedness.

BMW shows grasp to employees and the direction by giving them the chance to actively determine the company by agencies of alteration direction programmes. The company encourages the motivational direction of staff and guarantees great employee satisfaction. ( BMW Group 2009 )

The BMW Group human resources administration was restructured in 2009 to run into new marks they had set in corporate scheme. Due to the recent economic crisis and the subsequent demand to cut down costs the BMW Group human resources sees itself chiefly as an advanced, efficient web that assumes a planetary function in structuring ad designing procedures. BMW offers much in footings of public presentation based wage ; each employee receives a fixed wage of 12 monthly wages. The fixed wage is complemented with farther elements harmonizing to local conditions and is assessed and adapted one time a twelvemonth. There is no difference in wage between male and female employees. BMW besides complements the fixed wage with engagement in the corporate consequence. The sum of the company bonuses paid out is based on the overall consequence of the company. BMW besides offer an single fillip which rewards employees ‘ single public presentation and retirement benefits. BMW besides offers extra benefits such as favorable conditions on vehicles, corporate accident insurance for executives and extra wellness coverage for wellness services in India and China. ( BMW Group 2009 )

BMW is regarded as a household friendly company and has household policy within its human resources policy with the purpose of assisting employees find a balance between their calling and personal aims. BMW offers telecommuting, portion clip work and sabbaticals to assist employees cover with household and personal issues. BMW besides offer 20 yearss unpaid leave per twelvemonth, many of these flexible working strategies aim male employees whose chances to take on duties of child care have improved dramatically. BMW expression to actively pull female staff as they are clearly underrepresented among the company ‘s consumption from learners, housemans, pupils and PhD campaigners every bit good as in managerial places. The portion of female directors at BMW has risen 66 % over the last six twelvemonth and females ‘ now make up 13 % of BMWs work force today ( BMW Group 2009 ) .

BMW actively look to vouch workplace safety and biotechnologies to maintain staff healthy and to understate the hazard of occupational accidents by incorporating staff with public presentation limitations and by assisting employees lead a healthy life style. BMW have wellness and occupational safety direction systems in line with OHRIS and OHSAS demands at 12 out of 24 locations. This means that 80 % of all employees are certified harmonizing to direction systems. BMW besides lead a assortment of runs to maintain staff healthy such as free wellness check-ups, nutrition runs and fittingness constructs. BMW besides has assorted programmes on dependence and disease bar such as “ covering with intoxicant ” and “ smoke free ” every bit good as flu shootings and chest malignant neoplastic disease and colon malignant neoplastic disease early diagnosing. These programmes raise consciousness among employees and promote employees to look after themselves by taking advantage of these offers.

In decision BMW is clearly an industry leader in environmental protection, they are making new emanation free engineerings and puting in the substructure required to implement these engineerings. BMW implement recycling and waste minimising patterns in all of their workss and usage renewable energy beginnings to understate the effects their fabrication procedures have on the environment. BMW have besides improved on the merely in clip production procedure and have developed bringing on demand to do their production processes more robust and less unfastened to fabricating holds. By utilizing mySAP BMW has made full usage of communicating and mechanization to do the supply concatenation flow every bit seamlessly as possible. BMW have first-class employment practises and purpose to help employees in any manner the can, from implementing working strategies such as telecommuting and portion clip to looking after their employees ‘ wellness and fittingness through strategies that look at smoke, imbibing and general wellness. Employees are cardinal to BMWs success and are valued as such.

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