BMW Has A Major Recall!!!!

BMW has issued a voluntary recall of 2007 to 2010 model cars after an ABC News report stated that vehicle owners are experiencing sudden reductions in vehicle power. BMW issued a recall of 130,000 cars featuring its twin-turbo six-cylinder engine because of a faulty fuel pump that can fail when the cars are driving at high speeds. The company as well as National Highway Traffic Safety Administration received complaints about the cars going into a reduced-power mode, which allows drivers to safely pull off the road. Also, BMW is going to recall 20,800 six-cylinder X5 models to replace the fuel pump. Up to date, no injuries has been reported due to this problem.

Sales Promotion and Personal Selling

BMW is betting on a new, high-tech marketing system to build both sales and owner loyalty rates. The new program is designed to increase contact between the company and their customers. BMW has been offering heavily subsidized loans, often with interest rates of just 0.9% or 1.9% to make it easier to pay down equity in a hurry. BMW is also looking at how much to emphasize leasing. One reason is that leasing provides a steady and predictable supply of used cars that feed BMW’s popular certified pre-owned program.

BMW presents the 2012 BMW 6 Series Coupe

BMW displayed the new BMW 6 Series Coupe at the Paris Motor Show. It is the first vehicle from BMW to get full LED treatment; driving lights, indication lights, brake lights, and rear lights. The BMW 6 Series Coupe offers a state-of-the-art interior design. It has unique lines going across the dashboard, and twisting shapes that connect the center console to the driver and passenger’s own space. It has a high-quality leather trim with double stitching in a contrasting color. It has a panoramic glass roof which enhances the lightness of the design language.

BMW and GSD&M Idea City say their farewells!

The partnership between BMW and the GSD&M Idea City agency will end on December 31, after five years of collaboration. The reasons behind the separation are unclear. Some say that BMW was fired by the agency. Other say the death of BMW’s vice president of marketing, Jack Pitney, earlier this year, weighed heavily in the decision. The separation was initiated by the agency, not BMW. The Joy campaign, which was started by GSD&M Idea City, will still continue.

Rumor!!!!! Next BMW M3 sedan to be replaced by hatchback M3 GT

BMW, for the past 5 years or so, has been on a campaign to up the ante and make more horsepower, replacing the supercharged engines. Now, BMW seems to be returning to the traditional form, with V8s coming back where V10s had been used, and inline 6s coming back in lieu of the V8s that have gone into more modern M3s. with this redesign, will BMW begin to go in a new direction with the styling of the new M3s? with the X6, 5 Series GT, and the X4, BMW has shown that they like the hatchback design, and it might make sense for the car moving forward, to distinguish it from older M3 sedans.

Advertising and Public Relations

In 2010, BMW embarked on one of it’s biggest branding campaigns. A new theme, “The Joy of Driving,” was added to every television, digital and print ad, as well as events. The theme shifted the focus from the car to the car owner. The “Ultimate Driving Machine” slogan still appears in the ads but the shift was apparent in one of the print ads that read “At BMW we don’t make cars, we make Joy.” BMW’s 2010 Joy campaign kicked off in the Winter Olympics. Spots included 60 second commercials showing how BMW brings “Joy” in driving. BMW integrated the message in the Games  by sponsoring NBC’s “Olympic Moments of Joy” segments.

Retailing

Recently I visited Target which is located on Flatbush Avenue in Brooklyn. I was surprised to see how the store was kept. Despite the attempt to keep the place organized, the shoppers would mess things up. The second floor was more disorganized than the second floor, probably because thats where the clothing, the accessories, and the cosmetics are. They also have a Starbucks and a Pizza Hut on this floor. The top floor is where the home entertainment, da electronics, and the toys are. There is where you find most of the young adults and children. As i strolled down the isles, i noticed how limited and empty the shelves were. This is not good for business because the customers should be able to get what they want and need. Despite the store being disorganized and limited, the prices are set at fair standards.

Consumer Decision Making

The primary driver of BMW's success in the US has been their leasing program that makes new BMW's available to lease. The vast majority of new BMW's sold in the US are leased, so cost is a factor. BMW's offer a balance of comfort and handling that sets the standard for sports sedans, and the fact that they are the largest privately owned car company lets them take chances with styling and technology that other firms wouldn't take. BMW's are extremely well engineered, solidly made and responsive at the wheel. BMW offers many brands and styles so they can be purchased by anyone. BMW try to lore constomers in with their reputation of making the fastest cars around. They are also known to be very confortable, which is a very important aspect of buying a car. Together with the speed, comfortability, style, and compatibility, BMW is a confident manufacturing company and assures that people will enjoy their products.

Developing a Global Vision

BMW Financial Services has been successfully operating in India with its three business lines: Retail finance, Commercial finance for the BMW India Dealerships and Insurance solutions through cooperation partners for BMW customers.The services offered through BMW Financial Services have been valuable to the premium clients who require financial solutions. Frank-Peter Arndt, member of the Board of Management of BMW AG, who is also responsible for Production stated, “India is a market that holds great potential for the future for us and is a building block in our global market offensive.”

BMW is considering expanding the range of products offered in China, as well as introducing a leasing-vehicle business, in order to enhance its presence on the Chinese market. BMW plans to increase its network of Chinese suppliers to more than 160 from about 100 now. Starting June 2012, BMW will start to assemble locally the new BMW 3 Series sedan.