1. Introduction

This document entails the BMW South Africa background, the target market for the new

innovative BMW 3 Series. This includes 7 P’S mentioned below to assist in selling the 3

Series BMW, the perceptual map and the positioning statement. BMW South Africa core

values are to produce top class quality cars. This is shown in their end product. They

want to emphasize on safety in the cars they produce, the pleasure of travelling,

achievement that is deserved, and customer satisfaction at all time. That is why BMW

has focus on building and implementing better 1st class quality vehicles than their

competitors; this is also to insure BMW customers drive comfortable, safe cars. The

BMW 3 Series model is at the top of the leader board.

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2. Background information of BMW

BMW has been assembly in South Africa since 1970, when Praetor Monteerders plant

was opened in Rosslyn, near Pretoria. BMW South Africa is one of the premium

manufacturers in this country with a premium segment share of more than 30%. BMW

both shares in Praetor Monteerders in 1973, the company became the first South

African OEM to launch a fully-fledged export program in 1994. The first 500 South

African produced 3 series vehicles which were exported to Australia. In 2009 the

company established itself as South African favorite car brand in the lovemark awards

and it was voted as the coolest car brand for the fifth year in a row in the Sunday Times

generation next survey. The company also became the only motor manufacturer in

South Africa to launch the business ABET learner in partnership with MERSETA local

and provincial Government and the department of labour. Currently BMW Plant Rosslyn

produces approximately 50 000 BMW 3 series 320i, in both left – and right- hand drive,

per year. Approximately 9000 of these cars are sold in South Africa and the remainders

are exported to markets across the world including the USA, United Kingdom, Taiwan

etc.

3. 3 Series Target market

BMW’S Target Market for the 3 series 320i sedan consists of well- educated relatively

affluent males seeking an automobile to satisfy their need for excitement and luxury.

These men are also looking for a performance car that can serve as a practical family

vehicle, offering sufficient space and safety features. While there are some women

driving the 3 series model, the target market is mostly 70% to 80% males. BMW also

targets a rather wide age group: males anywhere between the ages of 25 – 55 are

candidates to purchase this car. The 3 series 320i is well suited for sophisticated

consumers deliberately searching for a refined car with a sporty ride.

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3.1. Psychographic

They are educated, sophisticated and active consumers, BMW 3 Series owners tend to

fit two specific VALS (Values & Lifestyle) groups. Some 3 Series owners are achievers,

goal oriented individuals who value prestige and well made products. They own a 3

Series because it is a reputable automobile and well established model. A 3 Series is

also a demonstration of their success, a quality that many achievers look for in the

products.

3.2. Segmentation

GEOGRAPHIC

Region

Size of city / town

Density

Climate

Cape Town, Port Elizabeth, East

London, Durban.

Under 10 000

Urban, Suburban, Rural

Summer maximum temperature 21.1 C-

28.4C

Winter maximum temperature 16.2C-

22.7C

DEMOGRAPHIC

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Age

Gender

Family size

Income

educational

Religion

Race

18-49

Male & female

Family of four people.

High disposable income

BMW owners also tend to be more

educated than their

Counterparts. Professionals

All

4. 7 Marketing Mix

Product

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Core product

The BMW 3 Series model is a tangible product and will emphasize on the features,

Advantage and benefit.

BMW 328i.

This BMW Twin Power Turbo 4 -cylinder petrol engine delivers its maximum torque

of 350 Nm at just 1250 rpm. Thanks to BMW Twin Power Turbo technology

combining a Twin Scroll turbocharger with Valvetronic, Double-VANOS and High

Precision Injection, this 180 kW ‘power plant accelerates the car from 0 to 100 km/h

in just 59 seconds. Top speed is 250 km/h, while average fuel consumption is 6, 6

litres per 100 km.

Augmented product

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Airbags are part of the safety equipment in a BMW, all components of which are

designed to complement each other perfectly. Six airbags offer specific protection:

the driver and front passenger airbags, the front-to rear (curtain) head airbags, and

the side airbags integrated in the front seat backrests.

Active Protection means that all safety components in the new BMW 3 Series

Sedan are designed to complement each other perfectly. Six airbags offer specific

protection, while crash-active headrests at the front reduce the risk of whiplash

injuries. In a critical situation, Active Protection additionally tightens the front

seatbelts and automatically closes open windows and the optional sunroof. Post-

Crash I Brake is able to stop the vehicle automatically after a collision, thus

mitigating or preventing follow-on collisions.

Product Strategy

The design of the BMW 3 Series has always epitomized athleticism, modernity and

elegance. These three personality traits can also be found in the interior of the new

BMW 3 Series Sedan. Choose between three BMW Lines and thus between three

different design schemes: Modern, Sport and Luxury. In the interior, which always

harmonizes perfectly with the exterior, colours and materials are used to create the

specific character of each BMW Line.

Product Line

The BMW is available in three models which include BMW Luxury Line, BMW Modern

Line, and BMW Sport Line. Which also consist of 3 Series models 320i, 320d and 328i.

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Packaging

You express your personality every day. That includes the car you drive each day. This

is why the new generation of the BMW 3 Series Sedan adapts its design features to

your individual style. With the BMW Lines Modern, Sport and Luxury, you can choose

from three additional design schemes focused on emphasizing one particular attribute

of the new BMW 3 Series.

Comfort package

This includes automatic air conditioning with two-zone control, lights package, storage

compartment package, and folding headrests for the rear Passengers.

Labeling

The label of the car is “BMW Efficient Dynamics Less emissions. More driving pleasure”

which is an attractive line that will draw the consumer’s attention and live them thinking.

This label represents the innovativeness, design of the New 3 Series model.

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Price

The price is the amount paid by the customer to buy the product or avail the services of

the company. This marketing strategy ensures that the pricing of the product is done

correctly and it is not overvalued to the customer and not undervalued to incur loss to

the company. As BMW deals in the niche segment and the customer to which the

company provide is not very much price sensitive. The customers of this brand look for

the value of the money they are getting on the product.

BMW 3 Series Sedan Price

The BMW 3 series is available in several different models: the 320i, 320d, and 328i

standard with all – wheel drive, the “i” models are rear-wheel drive.

Recommended retail price including 14% VAT

Standard model 320i 320d 328i

6 speed Manual R361 000 R390 500 R438 500

8 speed Automatic

Transmission

Steptronic

R379 000 R408 500 R456 500

8 speed sport

Automatic

Transmission

Steptronic

R386 100 R415 600 R463 600

Sport Line

6 speed Manual R379 100 R408 600 R455 900

8 speed Automatic

Transmission

Steptronic

R397 100 R426 600 R473 900

8 speed Automatic

Transmission R404 200 R433 700 R481 000

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Steptronic

Place

In terms of an automotive company, place refers to the volume and prevalence of its

dealerships and production sites. BMW dealerships appear in 50 countries, and

production occurs at 23 plants in 12 countries including South Africa. Where BMW has

a plant in Rosslyn in Pretoria, were they produce the 3 Series models. This model is

produced than distributed along BMW dealerships around South Africa but most of them

are exported overseas, for example in USA, United Kingdom, and Taiwan.

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Promotion

The 3 series is a well-established leader in the 3 series models performance sedan

market. BMW promotes the models aggressively with clever advertising, recently

advertisement have shown how the 3 series has developed throughout the years,

including one spot that shows the changes the vehicle has undergone as it speed

around a track.

Sales Promotion

BMW Joint-Campaign with HD Radio

BMW began campaigning with the HD Digital Radio Alliance to promote the High

Definition radio service. BMW, which offers HD radio in their cars, provides the Alliance

with a substantial corporate customer to promote its services.

Social media

Brilliant two way communication strategy social media and basically free advertising,

which can also be a good strategy for BMW to use to sell innovate 3 series, and

assessing brand performance and measuring service quality and product satisfaction.

BMW needs to keep up to date with their Facebook page, which enables consumers to

post what they think about the car and get answered immediately. A twitter page that

will be guided every day and take people request BMW also has to create a blog page

were consumers are able to keep up to date with the latest news. Social media is there

for organizations to assist them to keep them in base with their current and future

consumers.

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People

To make the marketing activity to be effective, the role of the staff of the organization

cannot be ignored. BMW have a very rich culture which continuously motivates their

staff to perform better for the company. BMW provides various benefits and

compensation, career advancement opportunities to its employees. The sales

consultants from BMW are hired based on their merit, and are academically strong, they

are equipped and are qualified sales people that are trained very well by the BMW head

office that are based in Pretoria.

Process

The satisfaction of the customer is one of the most important roles of marketing. This

involves BMW dealerships assuring that the car is delivered smoothly to the final use or

consumer. BMW insures high quality services at all cost because they value their

customer’s needs.

Physical Evidence

This feature of the product helps to position itself based on its certain physical attribute

so that the customers will get to know how the product is going to benefit them. Thus,

the product manufacturing company develops certain features in its product by which

customer will be able to relate it to the product. BMW targets the comfort of the ride and

the status symbol to provide the physical evidence to its customers. They also insure

test drivers to potential customers so those customers could entitle their opinion about

the car.

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5. Perceptual Mapping

As illustrated by the perceptual mapping below that has four main areas which are

classy distinctive, sporty, practically affordable and conserved. The 3 Series BMW as

presented is positioned as highly sporty, classy, sophisticated and far away from

practically affordable as it cost higher than its competitors.

5.1. Positioning map

High quality

High prices

Low quality

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Toyota Camry

hybrid

Lamborghini

Maybach

Rolls Royce

BMW

Mercedes- Benz

Low prices

Hyundai

Toyota

Chrysler

Ford

5.2. Positioning statement

BMW positions its products as superior vehicles, confidently asserting its position as an

industry leader. The company has associated its brand with class and prestige and has

established it models as benchmarks in their respective segments. BMW labels itself

“The Ultimate Driving Machine,” further suggesting its eminence as an automobile

maker.

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6. Conclusion

BMW should continue to build on its company’s strong brand as well as the prestige of

the 3 Series model. The company should continue to produce clever advertisements,

and place these advertisements across all mediums, especially on the internet, a

medium that has grown substantially as of late.

BMW should also invest in more fuel-efficient technology for their performance lines,

especially the 3 Series. Although the 3 Series is fuel-efficient relative to its competition,

there are many new better on gas than the 3 Series.

BMW should also target women with their 3 Series model, focusing on the safety and

practicality of the car. The 3 Series consumer group is male-dominated, consistent with

the performance sedan segment general if BMW can capture a substantial female

consumer base, it can gain market share ahead of its competition. Aside from young,

professional women seeking an exhilarating automobile, BMW should target the older

female demographic, which holds significant decision-making power within their

families.

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Bibliography

Kotler, P and Keller, K. 2009. Marketing Management. 13ed. New Jersey: Pearson

BMW South Africa (online). 2012. Available WWW: http: www.BMW. co.za (Accesses

06 September 2012)

Shimp, A. 2010. Integrated Marketing Communication: Advertising and Sales

Promotion. 8ed. University of South Carolina

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