3. Founded in 1916
Based in Germany
High performance
Luxury vehicles
Sells products under Mini and Rolls Royce
Motor Cars brands
4. Founded in 1937
Based in Japan
One of the largest automobile manufactures
in the world
Produce automobiles and related parts
through more than 26 countries
Conventional engine vehicles and hybrid
vehicles
Sells products underToyota, Lexus, Hino and
Daihatsu brands
7. CONTROLLABLE
STRENGTHS
• Sustained brand recognition - Helps
BMW to charge premium price *(See
Figure 1)
• Mini sales sky high worldwide
• Customers have high income
WEAKNESSES
• Low MPG *(See Figure 2)
• Increased costs of raw materials, e.g. oil
• Falling value of Euro
UNCONTROLLABLE
OPPORTUNITIES
• Increasing demand for more fuel
efficient vehicles
• Emerging markets - Asian Market
• Hydrogen and electric cars
• Auto industry is set to recover
THREATS
• High competition in automotive market
• Emission standards increasing - Higher
production costs
• Future rising fuel prices
8. CONTROLLABLE
STRENGTHS
• Sustained brand recognition - Helps
charge premium price *(See Figure 1
and Figure 3)
• Focus on R&D departments
• Strong distribution network
• Production system - Lower costs
WEAKNESSES
• Lapses in product quality will damage
brand image and sales
• Unfunded pension schemes - Adverse
effect on cash flow
UNCONTROLLABLE
OPPORTUNITIES
• Increasing demand for more fuel
efficient vehicles
• Emerging markets - Asian Market
• Product development - New product
launches, keeps customer interest
• Auto Industry is set to recover
THREATS
• High competition in automotive market
• Emission standards increasing - Higher
production costs
• Future rising fuel prices
• Falling JPY against USD
9. POLITICAL ECONOMIC SOCIAL TECHNOLOGICAL LEGAL ENVIRONMENTAL
UK - Car
Scrappage
Scheme
2008-10
Rising energy
costs E.g. Oil
Emerging
Markets:
China
India
Safer
Environmentally
Quality
Robot
Globalisation
Tougher Emission
Regulations
Demand up for more
environmental friendly
vehicles
EU -Threat
of
government
intervention
2007-2009
Global
Recession:
Affecting sales
Social
Network
Websites:
Facebook
Internet,Websites EU:
2005 - EURO 4
2009 - EURO 5
2014/15 - EURO 6
ASIA:
Starting to adopt emission
standards
UKTaxation
Fuel Duty
Excise Duty
Company
CarTax
VAT
1996 - £30.2
billion
2005 - £43.3
billion
2008-2013
Expected
AnnualGrowth
Rate of 4.4%
USA:
2005 - ZEV
2009 - More states
Australia:
2008 - New emission
standards
Exchange Rate
Fluctuations
10. FACTOR BMW TOYOTA
PRICE • Highest price - M6Convertible
£92,175
• 1995 - 3 Series 318ti Base price
$19,990 Lasted until 1998
• 2008 - Series 1 Cheapest version
£17,610
• Reducing price & attractive finance
packages in US due to the product recalls
- E.g.Toyota Prius reduced by $1500
• More willing to negotiate on pricing due
to product recalls
PRODUCT/SERVICE • Entry-level models through Mini
Brand
• Used to be known for quality and
reliability
• Recent quality issues - leading to product
recalls
PLACE/DISTRIBUTION • More MEDC’s • Produce automobiles and parts in 26+
countries
PROMOTION • High class, quality
• Used to be “Ultimate Driving
Machine”
• Now its “Joy is Maternal” (Mothers
and Children) - Most expensive
brand-wide campaign ever in
North America
• 2008 - Best value on its advertising
- £22 per car. Industry average -
£233 per car.
• Brand image problem
• In the long term looking to promote the
value factor they used to have
11. FACTOR BMW TOYOTA
SEX Females
• Open driving
• S SeriesConvertible and Z4
Males 25-40
• Sport
• 1 and 3 Series
Males 40 +
• Luxury/Professional
• 5 and 7 Series
Females
• City/smaller car
• iQ,Aygo, Urban cruiser andYaris
Males
• Saloons
• Avensis, Auris and Prius
INCOME Higher - £40,000 + Average - £25,543
SOCIAL CLASS High
A and B Class
Medium/Low
C1 and C2 Class
LIFESTYLE Families
• Spaciousness and interior versatility
• X3 and X5
Active lifestyles
• Interest in outdoor activities, extreme sports
• 3 and 5 SeriesTouring
Average family vehicle
• Reliable
• Spacious
• Affordable
Appreciative of the environment
POPULATION/AGE Urban / 39 or younger
• Z4 and 1 Series
Urban and Rural / 25
LEVELS OF EDUCATION High Average
ENVIRONMENTAL Little or No interest High interest
POPULATION Global Global
12. USA - 37 Australia - 4
Europe - 18 Canada - 4
China - 15 Indonesia - 4
Thailand - 5 Other - 13
Toyota - Key Automobile markets 2009
As a percentage of sales volume
BMW - Key Automobile markets 2009
As a percentage of sales volume
Germany - 20.8 Italy - 5.9
USA - 18.8 France- 4.9
UK - 10.7 Spain - 3.2
China - 7.7 Other - 28.0
13.
14. FUNCTIONAL BMW
FEATURES Sport, Luxury and Open Driving
QUALITY High, top end of market
USE With high performance
EXPRESSIVELY TOYOTA
USER For more an average user, wider market
BENEFIT More MPG and environmentally friendly
HERITAGE High quality reputation since 1970’s
15. BMW, 2009.Annual report 2009-2010. [online] Available at:
<http://www.bmwgroup.com/annualreport2009/_downloads/BMW_Group_2009.pdf> [Accessed 17 October 2010]
Toyota, 2010. History ofToyota. [online] Available at: <http://www2.toyota.co.jp/en/history/> [Accessed 7 October 2010]
Toyota, 2010. Financial Highlights. [online]Available at: <http://www.toyota.co.jp/en/ir/financial/high-light.html>
[Accessed 7 October 2010]
Toyota, 2010. Market/Toyota Sales and Production. [online] Available at:
<http://www2.toyota.co.jp/en/about_toyota/data/> [Accessed 7 October 2010]
Toyota, 2010. Sustainability Report 2010. [online]Available at:
<http://www.toyota.co.jp/en/csr/report/10/download/pdf/sustainability_report10.pdf> [Accessed 7 October 2010]
Direct IndependentConsumer Opinion from the MotoringWatchdogGroup, 2010. Least fuel efficient cars. [online]
Available at: <http://www.dicomwg12.org/car-league-tables.php?max=3000&res=10&tab=2&submit=Get+results>
[Accessed 20 October 2010]
BusinessWeek, 2009. Annual report 2008-2009. [online]Available at:
<http://www.businessweek.com/interactive_reports/best_global_brands_2009.html> [Accessed 18 October 2010]
CNNMoney, 2009, Annual report 2009-2010 [online]Available at:
<http://money.cnn.com/magazines/fortune/global500/2009/full_list/> [Accessed 18October 2010]
Unnamed author, 2010. BMW adopts Facebook fan page. New MediaAge, [online] 5 August.Available through: Mintel
Available at:
<http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=63455/display/id=540841>
[Accessed 9 October 2010]
Unnamed author, 2009. BMW chief warns against government intervention. FinancialTimes, [online] Mintel, 4 March.
Available through: Mintel Available at:
<http://academic.mintel.com/sinatra/oxygen_academic/search_results/show&/display/id=63455/list/id=63455&type=NSIt
em&class=MarketUpdate/display/id=443807&anchor=443807> [Accessed 9October 2010]
Steven Cole Smith, 2008. Budget Beemer: BMW's new 1-Series models offer style and flash - but for a lot less cash.
Orlando Sentinel. [online]5April. Available at: <http://articles.orlandosentinel.com/2008-04-05/news/ridelede5_1_c230-
318ti-bmw-and-mercedes> [Accessed 9 October 2010]
Anderson, Jessica, 2010. Don’t Count OutToyota. Kiplinger’s Personal Finance. [e-journal] 62{4)p85, Abstract only.
Available through: Business Source Premier. [Accessed 10 October 2010]
Strengths
Sustained brand recognition
(See Figure 1) for the 100 best global brands from an annual report in 2008-2009 by Business Week.
BMW are ranked 14th
Toyota are ranked 8th
Weaknesses
Low MPG *
(See Figure 2) for research from the Motoring Watchdog Group for the cars up to 3000cc with the lowest MPG
BMW have two series’ ranked 5th and 10th shown in red
Strengths
Sustained brand recognition
(See Figure 1) for the 100 best global brands from an annual report in 2008-2009 by Business Week
Toyota are ranked 8th
(See Figure 3) for the fortune global 500 (Top 10 * BMW)
Toyota Motor are ranked 10th