PROJECT REPORT ON

MY DREAM RETAIL COMPANY

BMW STUDIO

Sheer driving pleasure

SUBMITTED TO: SUBMITTED BY:

Prof. A.N. Bhattacharya Satyam Barkataky

IILM GSM PGDRM 09-11

ACKNOWLEDGEMENT

Apart from our efforts, the success of any project report depends largely

on the encouragement and guidelines of the concerned faculty, fellow

students and many others. We take this opportunity to express our

gratitude to the people who have been instrumental in the successful

completion of this project report.

We would like to show our greatest appreciation to Prof. A.N.

Bhattacharya. We express our gratitude for his tremendous support and

guidance. We feel motivated and encouraged to take further such work

in the near future with his help. We also thank our classmates who have

also encouraged and guided us regarding this report. This project would

not have materialized without the combined efforts of the all of

mentioned people above.

Satyam Barkataky

TABLE OF CONTENTS

Company profile

Products and services rendered by BMW Studio

Store Layout

Retail strategies of BMW Studio

Main Competitors of BMW Studio

Competitors Analysis

Merchandise Policy

Bibliography

INTRODUCTION TO BMW STUDIO

BMW Studio is a unique multi functional space concept that delivers a comprehensive BMW experience unlike any other, in India or around the globe. Conveniently located in central Delhi, the BMW Studio offers comprehensive information on BMW products and services, an exclusive BMW lounge and bar, fine dining by Olive Beach Bistro, exhilarating test drives and unparalleled customer service along with BMW business centre for BMW owners. The BMW Studio will also showcase a wide range of BMW lifestyle products. The products extend from classic BMW lifestyle products such as BMW shirts and jackets, sports products in golfing, kids’ mobility equipment, car miniatures, Original Accessories, Baggage and luggage.

PRODUCTS AND SERVICES RENDERED BY BMW STUDIO

BMW Lounge and Dining

Sit back, relax and sip your daily cup of coffee. Unwind after work with a selection

of refreshments. Savour culinary delicacies from Olive Beach Bistro for lunch,

dinner and in between.

The BMW Studio is selectively available as an event venue for private bookings

throughout the year. It provides the perfect ambience and world-class dining

experience by Olive Beach Bistro for comfortably up to 50 guests.

BMW Showcase

Enrich yourself with comprehensive information on BMW products and services and stop by today to view our newest car on display.

Discover the BMW Lifestyle collection and stimulate your senses with a variety of books, music and films in the comfort of BMW luxury.

BMW Business Centre

Exclusively for BMW owners. BMW Studio’s Wi-Fi enabled business centre

provides you access to a private space fully equipped with your communication

requirements. BMW owners can pre-book the BMW Studio for business or

personal meetings and events. A library of BMW Books, BMW Music and BMW

Films will also enhance the brand appeal of the BMW Studio.

STORE LAYOUT

The 1600 sq feet BMW Studio, located in the heart of New Delhi at Janpath, can

accommodate 25-30 guests, and will be open from Monday-Saturday from 10:00

a.m. to 8:00 p.m. The studio will have one car displayed inside and one test car

standing outside. The BMW Studio will be managed by a BMW Studio Manager

who will be supported by well trained staff from the hospitality industry. There are

different departments and sections for different purpose. Like,

BMW Lounge and Bar

BMW Showcase

BMW Business Centre

BMW accessories section for BMW shirts and jackets, sports products in

golfing, kids’ mobility equipment, car miniatures, Original Accessories,

Baggage and luggage.

RETAIL STRATEGY OF BMW STUDIO

Target Market:

Youngsters and adults who belong to higher class income group and corporate as well as the owner of a BMW.

Retail Format:

Company’s owned Retail Outlet only in Jan path, Central Delhi. Retail format size is 1600 sq. feet.

Bases for Competitive Advantages:

To get a thrilling experience of the BMW world by offering the services like

Lounge and dining

Business Centre

BMW Showcase

Driving Instruction tutorials etc.

Facility to customize your BMW with added features.

MAIN COMPETITORS OF BMW STUDIO

BMW Studio is a customized car shop and it is not like other cars showroom or outlets. A BMW car owner is a customer of BMW Studio. So, unlike BMW Studio, there are not other car maker who has this kind of customized shop. So, BMW Studio has no competitors in terms of service rendered to their customers. But as a luxury car maker, it has its following competitors:

Mercedes

Mercedes-Benz is a German manufacturer of luxury automobiles, buses, coaches, and trucks. It is currently a division of the parent company, Daimler AG (formerly DaimlerChrysler AG), after previously being owned by Daimler-Benz.Mercedes in India does not have their company owned outlet. But BMW studio gets tough competition from Mercedes Franchisee Showrooms located at

Delhi.

Audi

Audi - the German luxury car manufacturer, represented in 110 countries worldwide and since 2004, Audi has been selling its products on the Indian market.

With its franchisee showroom, it is one of the major competitors of BMW studio as the German luxury car manufacturer. It has its showrooms in all major cities including Delhi.

Mahindra First Choice

It is a multi brand pre owned Car Company who buys and sells cars to its customers. They also deal with German cars including BMW.

Gaadi.com

Gaadi.com is a online portal of buying and selling of new cars as well as used cars of different brands like BMW, Ford, Porche, Audi, Lexus etc. It has really affected the market share of BMW.

COMPETITORS ANALYSIS

Car maker No. of cars sold in India ( till 2009)

No. of cars sold in India ( till 2010-Jan & Feb)

BMW 3,619 709

Mercedes 3,208 842

Audi 1,658 558

Mahindra First

Source23* No data Available

Gaadi.com 7# No data Available

* (only BMW)

# (Only BMW, In Delhi/NCR)

Source: http://www.technoezine.com/indian-luxury-car-market-is-growing-fast

Market Share of luxury car industry in India

Car maker 2009 2008 2007

BMW 38% 46% 59%

Mercedes 42% 40% 33%

Audi 20% - -

Source: http://www.technoezine.com/indian-luxury-car-market-is-growing-fast

MERCHANDISE POLICY

Necessary of Store Design:

It tells the customer what the store is all about

It creates an image in the minds of customers

For a customer store needs to be easy to navigate, it must appeal to his sensory perceptions and must create a sense of belonging, sense of relationship.

The environment created in the retail store is a combination of exterior look, store interiors, the atmosphere in the store and the events promotions and themes which form a part of retail store

Elements of store environment:

Product and Service Mix:

Space Planning:

Space planning includes Floor Planning that includes,

where merchandise and customer service departments are located,

how customers circulate through the store,

how much space is dedicated to each departments/sections

Basically the Space that BMW Studio had planned was 2000 sq. feet. But as it is located in Central Delhi, they had to compromise with the space and made it limited to 1600 sq. feet.

Procurement of the products:

They basically do not procure any product from anywhere else initially but on the basis of the requirement of the customers, they procure their products from their manufacturing unit i.e. located in Chennai. For example, if customers want to have a portable refrigerator or special sofa cum seat, they order at BMW Studio and then the customer executive manager sends the order to the manufacturing unit. Some of the feature and facilities are not available in manufacturing unit, they are imported from Germany.

They procure the BMW accessories from their respective manufacturing units. They display the accessories for their customers and if a customer needs something extra or new, they order it from their manufacturing unit, if not available in BMW studio.

They hardly take 3 days to deliver the goods to customer in terms of BMW accessories like toys, shirts and jackets etc. and for other car accessories like car steering, refrigerator or a music system, they take 1 week to be delivered

from their manufacturing unit.

Consideration in Setting Retail Prices:

Customers price Sensitivity and Cost:

Generally, as the price of a product or service increases, the sales for the same will decrease because fewer and fewer customers feel the product or service is a good value. Same in the case of BMW studio where a fewer BMW car owner are the customers. As BMW studio is for higher and business class people, the prices are high. Customers are not that much price sensitive, so the sales will not decrease significantly if the prices are increased.

Competition:

As BMW studio has no competitors in terms of customize the luxury cars in India especially in the case of BMW. So, price elasticity is perfectly inelastic. BMW Studio can quote price according to their needs. The chosen

pricing policy must be consistent with the retailer’s overall strategy and its relative market position.

Legal and Ethical pricing Issues:

As per the govt. rules and regulations, BMW Studio cannot set their price too high or too low. Price ceiling and flooring is followed by BMW Studio.

BIBLIOGRAPHY

Retailing Management by Levy and Weitz

WEBLIOGRAPHY

www. bmw .in/in/en/insights/ bmw _ studio /introduction.html

http://www.livemint.com/2008/08/07222455/BMW-opens-its-studio-in- Delhi.html

http://www.domainb.com/companies/companies_b/bmw/ 20080808_studio_premiers.html

http://www.technoezine.com/indian-luxury-car-market-is-growing-fast

www. mercedes -benz.co.in

www.audi.co.in

www.gaadi.com

http://www.mahindrafirstchoice.com/

www.wikipedia.com