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BMW Series 5 Autos in Great Britain: A Marketing Research Survey
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Analyzes BMW showroom displays, sales literature, press reports, & consumer data in order to study the different ways in which BMWs are promoted in Great Britain.... More...
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Paper Abstract:
Analyzes BMW showroom displays, sales literature, press reports, & consumer data in order to study the different ways in which BMWs are promoted in Great Britain.
Paper Introduction:
BMW Series 5 Autos In Great Britain:
A Marketing Research Survey
Summary
In an attempt to study the different ways and means, by which Bavarian Motor Works (BMW) is being promoted, marketed, and serviced in the United Kingdom, the following research methods were employed:
A. Field visits to BMW showrooms in Leeds and London to determine how BMW's were explained, displayed, and marketed.
B. In-depth analysis of available sales literature given out by BMW both in England and in America, in an attempt to see what differences, if any, are taken in approach and attitude.
C. Field interviews with a random cross section of the British populace conducted in person and via telephone to
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Quickfire editing. It buys more than pounds 2 billion-worth of parts every year, 9 per cent from UK suppliers. A sneak peek. By going for a six-cylinder engine, adds Lewin, instead of the four-cylinder diesels of most of its rivals, BMW has eliminated the traditionalroughness of the diesel: on the motorway at 14 kmh the 2.5-litre 525tds isas refined as a petrol car, and probably more responsive.Buyer Lifestyle The market that the BMW Series 5 is targeting is the upper end of theupmarket, those Brits who think nothing of laying down 4 , to 53, bp. Motoring: Mini mania On the eve ofthe Frankfurt motor show. Bulgin, R. Lewin, T. So this is how BMW positions the Mini for the new millenium, the most important British car since, well, the first Mini. This is a reaction to what hasbeen described in the British popular press as the concept of big moneybeing back: Sales of second homes in the country are up. 7 Wood, R. BMW also says its Bond connection has alleviated "certain prejudices" against it being a German company, on account of its takeover of the Rover Group. It is outclassed as a luxurycar by Rolls Royce, Bentley, and even in some markets, the Lexus. (1997, September 13). (1997, Nov. Thetable below shows BMW's UK growth and market share.BMW's UK Market and Market Share, Showing BMW Growth 198 - 1996 198 1,514, 87 13,45 .89 1981 1,484,622 17, 86 1.15 1982 1,555, 27 22,977 1.48 1983 1,791,699 25,178 1.41 1984 1,749,65 25,785 1.47 1985 1,832,4 5 33,448 1.83 1986 1,882,474 35,898 1.91 1987 2, 13,693 37,525 1.86 1988 2,215,574 42,761 1.93 1989 2,3 ,844 48,915 2.13 199 2, 8,934 43, 4 2.14 1991 1,592,326 38,7 7 2.43 1992 1,593,6 1 4 ,672 2.55 1993 1,778,426 4 ,921 2.3 1994 1,91 ,933 45,574 2.38 1995 1,945,366 55, 34 2.83 1996 2, 25,45 56,84 2.81V. Independent on Sunday. All set at the finale of a multimedia shrine to excess, ego and indulgence in lieu of information (Bulgin, 1997, A2).The External Environment By the standards of its domestic competitors,(Ford, Vauxhall, Audi,and Honda) BMW's progress has been unspectacular during 1996 and thus farin 1997. UNS, Two-Ten Communications, 22 Most ofthe other respondents felt that if they were going to pay that much for amotorcar, the preferred choice would be a used Bentley or a Jaguar. (1996, January 1). . . This time around the verywealthy are spending more carefully, more quietly, and with much moretaste," (Morton, 1997, 2).The Price and Competition A stripped down, basic factory Series 5 goes from 38,5 bp inNorthern England to 42,5 bp in London and environs. The European. million a large part of whichwere attributable to its BMW dealesrships." Henlys, which owns Motorpointand Altwood, "two of the largest BMW dealerships in the UK with total newand used car sales volumes of 1,9 units, with attributable pre-taxprofits of ,1.2 m, on turnover of ,49.5 m in the twelve months ended 3 April 1996" (Wood, 1996, 4).Promotion According to the company itself, BMW believes that people buy cars forthe brand first and the model second. . Added extras canpush the tag up to 49,2 bp in the North and to 57,4 bp in London.However, few cars are sold for that price, since BMW has a wide variety ofdiscounts, rebates and other incentives to make the sale. BMW Roadster meets Bond, James Bond.USA TODAY. . (1997, September 9). Independent. Field visits to BMW showrooms in Leeds and London to determine howBMW's were explained, displayed, and marketed. Money to burn. This search for a market identity is seen in the schizoidnature of some of its promotions, especially in print ads. Henlys Group Interim Results: Record pre-tax profitof ,17.l million. using the Bond image in advertising [is an added advantage]. Also, more attention would be paid tothe ways (if any) BMW has modified its marketing to overcome Britishhostility toward the purchase. An inappropriate soundtrack. "We are part of the British family," it claims, proudly. 1 Scotthall Cambridge Dealer, 176/178 Cambridge Road Great ShelfordCambridge. Throughout the campaign, BMW has remained consistent to itsbelief in focusing on the substance of the cars themselves. 6 Chaikin, D. Bond the biker: Why is the BritishSecret Service advertising German motorcycles and cars? The last 17 years also bear witness to thesecompanies' (BMW and WCRS) emphasis on the communication of fourinterrelated core brand values: 1) performance, 2) technology, 3) quality,and 4) design. (1997, November 29). Wells, M. Among the otheradvertising and promotional plans for BMW include its first-ever cinemacommercial - a two-minute spot that will run in theatres and an airplane in-flight video. The BMW world,expressed through its advertising, is one where the car is always the hero(people suggest a degree of "fallibility" and are therefore excluded fromvirtually all ads). Not a cent, or a yen or a Deutschmark," says BMW corporate communications director Richard Gaul, who adds that. It hasconsistently fine engineering, and among purists, is a car to be treasuredand adored. According to BMW executives, a more precise description of the typicaltarget for a BMW Series 5 is male, mid-3 s, married, and earning 5 , +pounds a year in an executive or professional position. Adverts on the telly usually show a BMW racing through lushhills of Tuscany or sometimes even feature a strong James Bond theme. Once BMW getsan understanding of the rigors of the English marketplace, it will probablybegin developing cars that Brits want.Research Improvements If more money and time were available, the following improved researchmethods would be utilized: More telephone interviews would be conducted, plus a questionnairewould be prepared with demographic and psychographic questions designed toelicit preferential brand response. Since BMW is so awareof the importance of brand identity, and awareness, it would be beneficialto compare the findings of brand awareness and popularity in the UK withGermany. BMW GB PLC, (1997). The model line features anextremely low drag coefficient, an all-aluminum suspension, a stiff chassisand a unique exhaust system which is described in detail in a review by DonChaikin. (1997). More time to go over all of the TVcommercials would have been helpful, as would in-depth, face-to-faceinterviews with the advertising reps at the agency. . It is the biggest customer for the UK component industry, and the latter is responsible for 4.6 per cent of total UK manufacturing output (All BMW wants..., 1994, 15).Future Trends BMW is a car in search of an audience. Since the BMW, and especially the Series 5 is considered an "upmarketauto," (or one with a great deal of built-in snob appeal), almost all ofthe advertising and promotion concerning the product suggests the affluentlifestyle. BMW has upped its advertising budget and it now averagesaround $12 million US worldwide, with about 15 percent of that slated forUK television and print buys. . Distribution New BMW Series 5 autos are sold through a loosely structured networkof authorized dealers approved through BMW/UK, which is the former BritishRover PLC which was purchased by BMW. BMWis clever about promotional tie ins. C. The expensive German workers turn in a 7-per cent profit on turnover, says BMW's CEO, Bernd Pischetsrieder. English, A. BMW Series 5 Autos In Great Britain: A Marketing Research SurveySummary In an attempt to study the different ways and means, by which BavarianMotor Works (BMW) is being promoted, marketed, and serviced in the UnitedKingdom, the following research methods were employed: A. Of 1 2 peoplesurveyed (see Summary), only 7 agreed that the price seemed fair. Then Michael Caine's voice from The Italian Job boomed out: "You're only supposed to blow the bloody doors off!" . This noise reduction was important since the BMW's 5-series price tag3 , to 45, bp put it in the range of a luxury car, but its noise putit in the class of a speed roadster: With this new 5-series, however, senior managers wielding a company cheque for $4 , can have their cake and eat it. [On-line]. The most expensive restaurants are full; so are executive boxes at the theatre and sporting events. AtRover the workers "do long hours, have low wages, yet the company is makinga loss" (Karacs, 1997, 12). For example if a BMW were shown in front of a house, that house wouldbe modern and hi-tech, a reflection of the high engineering values andmodern technology present in all BMWs; if a BMW were shown on a road, itwould be a well-maintained road, the lines freshly painted, the surfacesmooth and the verges appear to be manicured (BMW, 1997). (new cars in1996)(Buyers Guide). Hmmmm (English, 1997, 3). According to its 1995annual report, the "car market remained very competitive and the MotorDivision recorded operating profits of ,4. Available:http://bizeednet.bris.ac.uk: 8 8 /compfact/bmw (Cited as BMW). It was at this showroom that the tale of the computer executive whogave his sales staff new BMWs was first learned of. 12. This is core to the consistentadvertising strategy that has been adopted, using the same advertisingagency WCRS, since 1979. . 3 Moreton, C. Consistently, one or more of these values are expressed in all BMWadvertisements. The hits keep on coming. for a car that has both power and class. 3. In the movie GoldenEye, for instance,Bond trades in his expensive Aston Martin for a BMW. Field interviews with a random cross section of the Britishpopulace conducted in person and via telephone to determine: 1) the extentof their knowledge of BMW; 2) their attitude toward it as a luxury vehicle;and 3) projected purchase preferences. Gossip columns have begun to show signs of the return of conspicuous spending: the pounds 13, meal out; the pounds 3 , crate of wine that was drunk rather than laid down; the computer businessman who gave a new BMW to every one of his sales force to land 25 contracts. Analysis of British press reports on the following topics: thesale of Rover to BMW; the British fears over job loss following the sale;and efforts by BMW to become accepted as "part of the British family."The Product BMW's 5-series, a luxury line introduced in 1995, looks much like itspredecessors, but is tighter and quieter. (1994, February 5).Independent A model future for Rover (1994, February 1). Used BMW series 5 autos are soldthrough a combination of approved new dealers and unapproved multi-dealers. 173: 6 (8). D. As should have been predicted by BMW, its purchase of Rover was illreceived by the British press and the public: If, in the future, there is a conflict of interests between BMW and Rover or between Bavaria and the Midlands (as there surely will be), Germany will come first. B. References All BMW wants is cheap British brawn. It is outclassed as a sportscar by Porsche, Maserati, and Lamborghini. The BMW approach to "Target Britain" still seems to be ill informed.As Russell Bulgin pointed out in his analysis of the 1997 Frankfurt AutoShow, in which BMW previewed its TV ads for the UK: The final video was all Swinging London, Mary Quant and the Monte Carlo Rally, set to Iggy Pop's Lust for life, a song about advanced narcotic dependency. (1995, October 29). He says that it is "similar to the Heimholz resonators attachedto intake systems to reduce intake air sound-wave noise on acceleration.With the Heimholz resonators, when exhaust gases flow by - not through -the dead airspace, they cause the air to produce sound waves of a frequencythat cancels much of the noise in the exhaust-gas waves," which therebyreduces much internal and external noise (Chaikin, 1996, 64). According to thislegend, "the streets around his office are now so full of BMWs that othercompanies have started to complain. 23). The 143 bhp 525 tds diesel concedes very little to the petrol car as far as driving enjoyment is concerned (Lewin, 1996, 3 ). The DailyTelegraph. Some criticism was leveled when the first Bond-BMW tie-ins weremade public about how much money BMW must have spent: "BMW never paid anything. Hackneyed images. (1996, October 31). The company's headquarters in Munich relates the indifferentperformance, not to "the soaring costs of German labour but to problems atRover, BMW's British subsidiary. Teaming BMW and Bond, according to BMW officials was a conscious actdesigned to overcome some still-rampant British resistance to the Germanautomaker. BMW's secrets of success: BMWlaunches new 5-series automobile range. The Daily Telegraph. But there are big differences betweenthe new boom and the Thatcherite Eighties. This ideal targetalso has at least four credit cards, travels on business at least 12 timesa year, and "is slightly disillusioned with his lifestyle" (ScotthallShowroom, Cambridge, 1997). The brand image has been built up using 26 colour pressexecutions and more recently through a total of 49 different televisioncommercials. The 525tds is genuinely economical: running this car rather than the equivalent petrol version for the typical three-year, 1 , km corporate stint could save 2, litres of fuel. In-depth analysis of available sales literature given out by BMWboth in England and in America, in an attempt to see what differences, ifany, are taken in approach and attitude. . Rolls-Royce and BMW are doing better than for several years. Car makers drive up profits.Independent. The largest BMW dealer in the UK is Henlys PLC. Karacs, I. Britain's motor industry - the makers of brakes and bulbs, tyres and track rods, radios and radiators - depends on Rover. Popular Mechanics.
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