Introduction of BMW Motorrad X2City in Australia - 4400 Words

Introduction of BMW Motorrad X2City in Australia (Other (Not Listed) Sample) Content: Introduction of BMW Motorrad X2City in Australia[Author name(s), first M. surname, omit titles and qualifications][Institutional affiliation(s)]Executive SummaryBMW is focusing on introducing electric kick-scooters in Australia. The kick-scooter is a premium product, which has zero emission. The paper initially focuses on the steps, which are required during the development of a marketing plan. A detailed analysis of the overall marketing and financial objective of the organization are also discussed in this paper, which is related to the project of BMW. A detail SWOT analysis is helpful for the organization to identify the possible opportunities and threats and its internal strength and weakness. An overall marketing mix and digital promotion strategy have been discussed which is helpful for the organization to place its product in the market and promote effectively. The last part of the paper consists of further action plan along with the implementation and controll ing of the strategies.Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc493092438 \h 2Introduction of BMW Motorrad X2City in Australia PAGEREF _Toc493092439 \h 4Objective of the Paper PAGEREF _Toc493092440 \h 4Marketing Plan PAGEREF _Toc493092441 \h 4SWOT Analysis PAGEREF _Toc493092442 \h 5Competitor Analysis PAGEREF _Toc493092443 \h 6Marketing Objectives PAGEREF _Toc493092444 \h 8Financial Objectives PAGEREF _Toc493092445 \h 8Table 1: Sales of Motorrad PAGEREF _Toc493092446 \h 8Table 2: Cost of Goods Sold PAGEREF _Toc493092447 \h 9Marketing Mix Strategy PAGEREF _Toc493092448 \h 9Digital Marketing Communication Plan PAGEREF _Toc493092449 \h 11Action Plan PAGEREF _Toc493092450 \h 11Implementation and Control of Marketing Plan PAGEREF _Toc493092451 \h 11Conclusion PAGEREF _Toc493092452 \h 12References PAGEREF _Toc493092453 \h 13Introduction of BMW Motorrad X2City in AustraliaBMW is a German company, which manufactures the luxury vehicle, motorcycle, engine, and spo rts car. It is one of the leading automobile manufacturing organizations across the globe, which is able to establish a unique brand identity by its high-end product and target elite group of customers. (BMWGroup, 2017). In order to expand its business operation, the company is targeting Australia to launch a new product, which is Motorrad X2City. It is a kick-scooter, which has a special feature of zero-emissions mobility and it provides a smooth electric auxiliary drive (Press Kit, 2017). The kick-scooter is going to launch at the end of 2017. BMW set an expected price range of the product which is less than 2,500 (ETAuto, 2017).Marketing PlanBMW is going to introduce a kick-scooter, which runs on electric. The name of the product is Motorrad X2City. It is necessary for the organization to design a strong and well-balanced marketing plan to ensure the success of the launching of this product. The concept of a marketing plan is a detail process developed by the top management of t he business organization, in order to design all possible strategies, which can be implemented by the firm (Duermyer, 2017). In order to introduce a new product in the existing market, BMW must initially do a broad situation analysis so that they can have an overview of the current scenario of the Australian market. With the help of this situation analysis, the organization will be able to recognize possible external opportunities that will help in the designing a detail marketing plan which is helpful in expansion of both product line and its business as well.The second step of the marketing plan consists of describing the target audience about the product that is BMW X2City. It is helpful for the organization to understand the buying pattern and choice of the customer, which is supportive in designing an effective marketing and promotion strategy.The third step consists of setting well-specified goals and objectives, which the organization is planning to achieve. The fourth and th e final step related to the marketing plan is to develop several marketing communication strategies that will help BMW to establish their business of X2City kick-scooters in Australia (Entrepreneur, 2015).SWOT AnalysisStrength Weakness BMW is one of the top most luxury automotive brand across the globe.The diverse operation present in different geographical areas, the company does not any effect in the revenue stream.Competence in hybrid and electric cars.Perfect engineering leads to a premium quality product, which provides an excellent driving experience.Perfect plan to meet the future trends and encounters. Increase debts of the organization.Less product differentiation.High level of investment in research and innovation may sometimes lead to the over usage of capital.High labor cost for skilled engineers.High maintenance cost of the vehicles. Opportunities Threats Rise in the price of fuel in the upcoming future.Increase in the demand for autonomous vehicles.Weakening in the eur o exchange rate.The release of the time and frequency of a new model. Increase in the level of competition within the automotive industry across the globe.Increase in the introduction of rules and regulations passed by the government that may lead to the rise in cost.Declination of the demand for the automobile industry can be observed in U.S. regions. (Source: Jurevicius, 2016)Competitor AnalysisName of the company Year of establishment Key products and services Annual Revenue/ Operating income (2016) Key Strategies Audi 1909 (Neq, 2017). Luxury vehicles (Audi, 2017). 59,317 million (Audi, 2017) Audi concentrates on making innovated cars with the latest technology and provides a high level of customer service. Customer satisfaction is the strategy that Audi follows (Bhasin, 2016). Volvo 1927 (Volvocars, 2017) Trucks, Construction equipment, buses, financial services and marine and industrial engines (Volvocars, 2017). SEK 20.8 billion (Volvogroup, 2017) The key strategy is to pro vide value added service for the target customers and manufacture automobiles that are in demand (Volvogroup, 2017). Volkswagen AG 1937 (History, 2017) Automobiles (History, 2017). 217,267 million (Volkswagen Annual Report, 2016b). The company is focusing on creating a strategy for earning the level of satisfaction of the customer. This strategy is termed as TOGETHER by Volkswagen (Volkswagen Annual Report, 2016a). Skoda 1895 (Skoda, 2017) Automobiles (Skoda, 2017). US $ 13.7 billion (Annual Report, 2016). Satisfying the customer needs with advanced feature and technology. They even focus on delivering the ultimate design of the product (Annual Report, 2016). Marketing ObjectivesThe idea of marketing objectives are goals set by the organization while promoting its products or services to potential consumers and the same needs to be achieved within giving timeframe (Lake, 2017). There are various luxury automotive brands such as Audi, Volvo, etc. which are the competitors of BMW. Th e company is known for its extraordinary products and greater customer service. BMW wants to establish their business across the globe and hold the top most position in the automotive industry. They want to introduce unique products for the target customers with the help of modern technologies. The company must also introduce a well-organized and innovative communicating strategy to interact with the target customers so that they can gain knowledge. Apart from that, this product is helpful for BMW to improve its sustainability as well, which is one of the core success criteria for modern day business organizations. With the help of innovative and path-breaking marketing strategies, the organization can deliver high level of customer satisfaction, which will help in improving business performance as well (Bhasin, 2017a).Financial ObjectivesFinancial objectives are set by different organizations in order to create a solid plan for moving in the right direction. A financial business o bjective includes the increase in revenue, retrenching during the hardship periods, receiving a return on investment and increase in profit margins (Ingram, 2017).Table 1: Sales of MotorradDetails Sales in 2017 ( in million) Sales in 2018 ( in million) Sales in 2019 ( in million) No. of units produced 77,787 83,000 89,000 Cost per unit 2500 2700 2800 Total sales 194,467,500 224,100,000 249,200,000 (Source: Authors Creation)Table 2: Cost of Goods Sold 2017 2018 2019 Fixed Cost Machinery Cost 20 0 0 Set Up/ Expansion Cost 40 0 0 IT Cost 15 0 0 Variable Cost Labor Cost 30 38 45 Promotional Plan 20 30 40 Logistics 20 28 30 Raw Materials 30 45 50 Total 175 141 165 (Source: Authors Creation)Revenue of 2017 ( in million) = Sales- Cost of goods sold = 194,467,500-175,000,000 = 19,467,500.Revenue of 2018 ( in million) = Sales- Cost of goods sold = 224,100,000-141,000,000 = 83,100,000.Revenue of 2019 ( in million) = Sales- Cost of goods sold = 249,200,000-165,000,000= 84,200,000.M arketing Mix StrategyThe concept of marketing mix comprises of...