MARKET PROFILE FOR 7 – SERIES September 2009

BMW in India BMW opened its 1st assembly plant at Chennai in India in March 2007 BMW has the following products in its Indian stable: 3 Series 5 series 7 series X series Each having variants in engine capacity, petrol and diesel BMW established its Indian headquarters at Gurgaon, Central parts warehouse in Mumbai and has 13 dealers all over India BMW has lately unveiled the 5th generation of its flagship in India with the launch of the all – new 7 series This will be available in 3 variants 730 Ld 740 Li 750 Li

7 series product category and market segment Luxury Exclusivity Status symbol The target market for the 7 series would primarily include: Urban India House-holds with disposable income of more than Rs. 12 lacs/ annum Owns mostly a segment D/E car, that is, a premium/luxury salon like a Honda Accord, Skoda Octavia etc. Resides in 'posh' localities Brand conscious Indian

Classification of Indian luxury consumer UBPs of 7 series High need for distinction Technological advancement Business identity Brand Ergonomics After sales support and service Classification of Indian luxury consumer Purchaser of superior functionality and high quality Logical choice maker Emotional choice maker Indulger (feel good)

Competition in Indian markets The BMW 7 series has 3 arch rivals eying the same target consumers in India Audi A8 Mercedes S -Class Other potential sedans competing in this segment in the near future Porsche Panamera Bentley Continental Jaguar XJ

Primary attributes identified in competition BMW 7-Series Audi A8 Mercedes S -Class Tranquility on wheels Design: Fusion (Contemporary + Modern) No offence to anyone Innovative technology Masculine Imposing/ Menacing appeal Spacious leg room Elegance Subtle Text book styling (Right beef at right places) Respectful 1st look stunner

Brand Aspirations in India Automobile brand aspirations for age group 22 – 27 years

Brand Aspirations in India Automobile brand aspirations for age group 50 – 65 years

Indian target audience The Household Income Survey by the National Council of Applied Economic Research says that by 2010, there will be 140,000 households with an annual income of more than Rs. 1 crore i.e. 10 million USD. There are over one million luxury customers in India and this figure is expected to triple by 2010. The BMW 750Li is currently priced at Rs. 93,30,000/- (ex showroom)

Advertising and promotion PRINT

FILMS

INTERACTIVE WEBSITE

BILLBOARDS

CROWD PULLERS

Direct mailers Task: Development of a Powerful CRM. To encourage Interested users and potential buyers (Hot Leads) as they consider making a purchase. Strategy: An unsolicited, personalised print brochure is sent by mail to hot leads after they have configured a BMW 7 Series online. Each brochure is unique. Execution: The BMW 7 Series online configurator supplies the contents of the personalised brochure Including images and information of the vehicle which are also there in the print brouchre

Dealer Network in India

CBU Distribution German Headquarters Local Dealer Consumer placing order Shipping back to dealer Factory Finished Product Warehouse

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