FIVE-YEAR MARKETING PLAN
BMW Car Club of America
Beth Foley
Chris Brown
Mike Jacobs
Andrew Sauer
Tom Hoffman
Table of Contents
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Executive Summary
Company Description
Strategic Focus and Plan
a.
Vision
b.
Goals
Situational Analysis
a.
Research
b.
SWOT analysis
c.
Competitor analysis
d.
Customer analysis
e.
Geographic analysis
Marketing / Sales Focus
a.
Identify sales cycle
b.
Marketing mix strategy
c.
Product Description
d.
Pricing Strategy
e.
Placement / Distribution
Promotional Plan
a.
Creative Strategy
b.
Direct marketing / Database marketing
Implementation
Budget
Evaluation & Control
Bibliography
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Executive Summary
BMW Car Club of America is an enthusiast group focused on enhancing the
BMW experience for their members by providing services, support, information, and
activities that promote camaraderie and encourage social awareness and responsibility.
Through an in-depth analysis of BMW Car Club of America’s strategic focus and
ambitions for growth, we created a comprehensive marketing plan, including the steps
needed to carry out the proposed goals over the next five years.
Through SWOT, industry, competitor and customer analysis, we took a detailed
look at the BMW Car Club of America’s strengths and weaknesses and the trends of the
industry in which the car club is competing. This analysis led to covering the specifics of
the younger demographic and how our plan will gain and retain this target group. Here
we discussed market and service objectives, target markets, points of difference, along
with positioning.
After gaining a better understanding of BMW Car Club of America’s current
positioning and the direction in which they wish to proceed, we have formulated a
marketing plan that can be easily implemented by the club on both the local and national
level in order to achieve maximum future growth.
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Company Description
The year was 1969. There were soldiers in Vietnam; hippies at Woodstock; and in
Boston, a few car nuts were wandering the streets, snapping leaflets to the windshields of
a curious new German import – the BMW 2002. They were recruiting members for a new
car club dedicated to the object of their desire. In time, veterans, hippies, and other
driving purists from all over the spectrum would find common ground in what has
become the world’s largest owner-supported car club – the BMW Car Club of America.
Today, BMW CCA has 65 chapters nationwide, with more than 75,000 members,
mutually enhancing each other’s BMW ownership experience.
It doesn’t matter what model you drive. Whether you’re on your first Bimmer, or
your thirtieth, there are just certain subjects that only BMW owners are interested in and
BMW CCA addresses all of them.
Their official mission is: to enhance the BMW experience for their members by
providing services, support, information, and activities that promote camaraderie and
encourage social awareness and responsibility. Unofficially, they are a big support group
for Ultimate Driving Machine addiction.
BMW CCA enjoys a strong yet independent relationship with BMW AG and its
BMW of North America subsidiary. They are a not-for-profit corporation governed by a
nine-member elected board of directors -- four national officers and five regional vicepresidents who serve the interests of the chapters. Each chapter is an independent
corporation chartered by BMW CCA with headquarters located in Greenville, SC.
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Strategic Focus and Plan
Mission/Vision
This section covers the Club’s goals and aspirations for growth, which have
guided the marketing plan we have developed. The prominent goal for BMW CCA is to
create an awareness of the organization among the college-aged future leaders of
America who will own a BMW one day. It is vital to the future of the Club that they
continue to find innovative ways to appeal to the college-aged consumer in order to draw
these potential future owners into the organization and keep them there.
Goals
The marketing plan we have developed for BMW CCA is projected over a fiveyear period. With this time period, the Club can focus on all college students, from
current graduate students all the way down to current freshman undergraduates.
1. Utilize the Top 75 schools according to US News & World Report
rankings.

BMW CCA Ultimate College Campus Tour

Campus Representative Program
2. To develop and sustain a relationship with BMW North America
Corporate, and eventually BMW AG.

Dealership contracts

Corporate relationship
3. To increase communication avenues internally and externally.
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Situational Analysis
This situation analysis starts with a snapshot of the current environment in which
the BMW CCA finds itself by providing a brief SWOT (strengths, weaknesses,
opportunities, threats) analysis. After this overview, the analysis probes ever-finer levels
of detail: industry, competitors, and customers.
SWOT Analysis
BMW CCA has many strong points that have made it the company it is today.
Roundel Magazine is the official publication of the BMW CCA, and is available both
online and in paper form. There are 65 chapters nationwide, with a total of 76,000
members, which is incredibly impressive. The Club members possess a strong sense of
brand loyalty and are unwavering in their dedication to BMW and the Car Club. And the
BMW CCA is recognized as a national organization, and thus is able to host national
events. With the marketing plan that we have developed, we hope to capitalize on the
aforementioned strengths and implement new and innovative marketing techniques.
Although Roundel Magazine is a positive asset, the Club has over relied on it to
fully represent the organization. The majority of the 65 chapters act independently
without any direct contact with the National organization. Another weakness of the Car
Club is the lack of a concerted training program for chapter leaders. Although these
weaknesses have not had detrimental effects on the organization, there is definitely room
for improvement and increased efficiency.
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There are many opportunities for improvement available within the Car Club. It
already possesses the structure and finances needed to overcome its weaknesses. And
there is currently a detailed strategic plan and vision for the organization.
The BMW CCA faces the dangerous threat of complacency; however, with the
marketing plan that we have developed, it will be difficult to remain content with the
current state of the Car Club. There is also an “old guard v. new guard” mentality that
needs to be overcome in order to appeal to the college-aged consumer. There have been
issues with BMW enthusiasts forming their own groups, both physical and through online
forums. It is vital that these outside groups make their way under the BMW CCA
umbrella.
Competitor Analysis
BMW CCA faces competition from other car clubs, primarily Audi, Porsche, and
Mercedes-Benz. After engaging in some secondary research, we have uncovered the
following information regarding the competition:
Audi Car Club of America
Number of Members: 10,000
Dues: $44 (1 year) - $750 (Lifetime)
Membership Benefits:
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Audi Club Driver Safety Schools nationwide
Care, maintenance and technical tips from Audi experts
Information on new products
Sources for enhancement products
Parts discounts for club members
Access to a range of advertisers
Keeping in touch with members across the country
Special promotional giveaways from sponsors
Camaraderie shared by fellow enthusiasts
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Porsche Car Club of America
Number of Members: 97,000
Dues: $42 (1 year), $82 (2 years), $120 (3 years)
Membership Benefits:
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Local Regions with local newsletters and events. (Some regions have additional
fees and requirements).
Vast technical publications — Up-Fixin der Porsche (Vol. 1-11 — reprints of all
technical articles ever appearing in Porsche Panorama, organized by year of
original publication, fully indexed).
Tech Committee available to answer your questions. Specialists for all models
plus exteriors/interiors and historic racecars.
Valuation committee to help you establish the value of your Porsche for insurance
purposes.
Access to specialized insurance for Porsches that are second autos/pleasure
only/limited use. Translates to money saved on premiums. (Leland-West
Insurance — must be a PCA member.)
PCA Club Racing Program — nationwide; modeled on vintage racing rules.
Annual national convention (Porsche Parade) gathers in a different location each
year. Over 600 Porsches and 1500 folks gather for a week of noting but Porsche.
Mercedes-Benz Club of America
Number of Members: 29, 894
Dues: $45 (1 year), $87 (2 years), $127 (3 years)
Membership Benefits:
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You will gain access to useful information that will help you to preserve the
appearance, performance, and value of your Mercedes-Benz automobile.
You will receive six big issues of The Star Magazine
You will be able to participate in dozens of local section activities and events
You will receive a local section newsletter several times per year
You will be able to attend National Events and conventions
You will be able to advertise free in the classifieds section of The Star Magazine
You will have access to a technical hotline
You will have access to the Club Store
You will be able to get technical and vintage reprints of information printed in
The Star Magazine
You will keep up to date on new developments and products which are often
previewed to club members
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This information about the competitors is vital in developing a strategic marketing
plan that will give BMW CCA the competitive advantage.
In addition to the aforementioned competitive clubs, BMW CCA also faces
competition from online BMW forums, namely Bimmerfest and Bimmerforum.
Bimmerfest is portrayed on the their website as the #1 online community for BMW
related information. The website includes discussion boards and topics for more than
100,000 current, new, and past BMW owners. The forums are divided by car model and
into other special interest sections. There is also a special forum for visitors and patrons
to voice their questions to the connected BMW dealers on the site. Bimmerforum is a
website dedicated to owners and enthusiasts of BMW automobiles. It offers informational
bulletins and also message boards where thousands of members discuss BMW related
topics. It would be extremely beneficial for BMW CCA to merge with online forums
such as Bimmerfest and Bimmerforum to create one powerful entity for BMW
enthusiasts nationwide.
Current and Potential Member Analysis
The primary target market consists of every BMW owner in the USA and Puerto
Rico. Currently, the Club does well with the middle-aged and older demographic, but
would like to improve penetration. The Club’s main challenge today is to penetrate the
18-35 year-old market, with an additional emphasis on recruiting female members.
The traditional BMW market consists of the following demographics: upper to
middle class, educated, predominately male, 35-60 years of age, Caucasian, holds a job
making close to or more than $90,000 per year, and religious. As for psychographics, we
believe that the current membership and our younger target market are physically active
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or at least were at one point, social, young-minded, energetic, have class, are/were leaders
in organizations, like to take charge, like to be a part of something, have a competitive
mindset, listen to rock music, and are charitable.
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Marketing / Sales Focus
Identify Sales Cycle
The BMW Car Club of America’s objective – gaining and retaining the younger
demographic for their club – is a very attainable goal. The primary time to sell this
organization to the specified demographic is during the major graduation months of May
and December. During these months, many graduates will have job offers and
consequently, an income that will allow them to afford a BMW, giving them the ability to
join the BMW Car Club of America.
Marketing Mix Strategy
Our marketing plan will utilize a multitude of marketing techniques. We plan on
targeting the Top 75 schools ranked by U.S. News & World Report since the students at
these schools will possess the greatest potential for BMW CCA members. Using this
target market, we plan on implementing a few different avenues of advertising and
promotion to increase the awareness of the Club.
First, we would like to put into action an experiential marketing tour. Such a tour
would provide a hands-on experience that would allow consumers to maximize their
learning experience and leave a lasting impression. The general idea is that a consumer
and potential Club member would be more inclined to join the organization after seeing
the service that the club could offer him or her in person. Logistics would include two to
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four BMW’s, a promotional tent or banner, BMW Car Club of America members, and
promotional materials. The most financially intriguing avenue would be to ‘outsource’
this promotional show to local chapters as opposed to a national event marketing /
experiential marketing firm. To save costs, the Car Club could buy a single banner or
tent and the necessary promotional materials and send them to each chapter on a cycling
circuit. Local members could provide the labor, the cars, and the general knowledge of
the Club. This personal connection with the Club and its promotion would emanate a
sense of pride and honor of current members, and consequently share this pride with the
potential members. This form of lead generation among potential consumers will
generate interest, a database of potential members, and also a word of mouth network that
will promote
From these potential customers, the BMW agents present can select people that
are interested in promoting the Car Club on their specific college campus. These campus
representatives can continue advertising and promoting after the show has gone onto the
next campus and can continue to recruit members. Compensation for these campus
representatives could include cash, membership incentives, or potential fractional
ownership. We would look to the already developed and successful Campus
Representative programs of Apple, Student City, Red Bull, etc. to provide a basic
framework for the BMW CCA program.
Fractional ownership, mentioned above, would be another strategy to entice the
younger demographic to join the Club. Many young graduates, while financially secure,
do not yet have a disposable income. For this reason, a fractional ownership system
would be ideal. A member could buy a fraction of a BMW, much like the idea of a time-
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share, for a much cheaper price tag. The member would receive all the benefits of full
ownership, including driving time, social privileges, and a hand on the ultimate driving
machine. The BMW CCA could either start this program internally, or could partner
with companies already dedicated to this very idea of fractional ownership.
Another marketing technique that would attract potential members is an
interactive recommendation and certification forum / database. The idea is that members
would have the ability to contribute to and access a database of BMW information. This
information would include places to list and/or purchase used cars; recommendations of
places to buy parts; lists of auto shops and body shops; places to buy accessories, tires,
etc. On the national level, the BMW CCA could offer suggestions and a template for
regional and local levels. These local chapters could then build up their database based
on their members’ recommendations and personal networks. It can be considered as a
hybrid between the Better Business Bureau and online forums.
Product Description
The BMW CCA is not a tangible product, but rather a service with a multitude of
benefits. These benefits include a network of fellow BMW fanatics, training sessions on
how to drive, how to repair your car, and how to improve your BMW, among other
things. Local, regional, and even national car shows and seminars are also added benefits
of membership.
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Pricing Strategy
As an incentive to bring the younger demographic into the Club, we have thought
of a few different ways to price the membership to make it more appealing. Potential
members that have recently graduated or still under a certain age would be offered a
cheaper rate per year than the older members. Also, another idea would be that new
members could pay a lifetime fee, rather than a yearly fee. Though more expensive in the
short run, this option offers potential members a sense of belonging, a foundation to build
a long-lasting relationship, and peace of mind knowing that they will never again have to
pay membership fees.
Placement / Distribution
This marketing strategy must first be accepted and started by the national
headquarters. With this in place, it is guaranteed that uniformity and consistency will
prevail within the regional and local chapters nationwide. Implementing the ideas listed
above will increase membership across the country and build the BMW CCA’s brand
equity, especially among BMW owners.
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Promotional Plan
Creative Strategy
Our creative strategy focuses on five key components. Each one of the ideas will
benefit the BMW Car Club of America by either improving awareness of the club or
enhancing the Clubs’ current offerings. We intend to improve awareness of the BMW
CCA by utilizing resources around the country to focus attention on the next generation
of BMW owners. We additionally hope to retain and grow the current membership by
improving the current offerings of the Club.
We first intend to create a presence on the campuses of the top 75 schools as
recognized by U.S. News & World Report. We feel that these 75 schools will produce the
graduates that are most likely to be future BMW owners. By creating awareness on these
campuses, through different initiatives, the Club can draw the attention of future
members now.
In order to capture the attention of students on these campuses, the Club should
host a car show on each of these campuses. By having a larger event in a central location,
the Car Club has the potential to draw a large number of students. Through the use of the
car show, the Club could utilize an experiential marketing plan. By doing this, it would
give potential new members the chance to see numerous BMWs on display, sit inside of
them, and learn about them. The focus of the program should be to get people not only
excited about BMW and the idea of owning one, but also to demonstrate how being a part
of a car club improves the experience of owning a BMW.
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Following the car shows we think it would benefit the club to continue to improve
your presence on each of the designated campuses. The club could do this by having a
campus representative program. This program would utilize its members by having them
go to these campuses. The responsibilities of the campus representatives would be to
hand out promotional materials and also to discuss the benefits of car club membership.
We also hope to increase membership by making contracts with BMW North
America as well as with local BMW dealerships. These strategic partnerships would add
value to the Club and to BMW Corporate as well. By improving awareness of the Club, it
would add a new dimension to the offerings that come with the purchase of a BMW.
Many car buyers look for an experience to associate with their purchase, and by making
potential buyers aware of the presence of the Club, sales would potentially improve.
Secondly, we would like to focus on retention of current members. Research of
other car clubs revealed some areas that The BMW Car Club of America could improve.
Other car clubs have created systems to improve their members experience with their car
itself. The BMW Car Club could improve its member satisfaction by creating a system to
advise members in areas of importance. The Club could create a system to certify parts
dealers, body shops, and auto shops in each geographic region, which would be very
useful to members.
The final way that we believe the club could increase its membership is to create a
fractional ownership program. Fractional ownership is the idea that someone who may
not be able to afford a particular item can purchase a fraction of it for use periodically
over the course of a year. Currently, there are many companies in the United States who
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have found this type of business plan to be lucrative in the automotive market. Through
this type of venture the Club could not only find a new way to cover its operating
expenses, but also increase membership.
Database Marketing
The BMW Car Club of America is currently struggling with membership
retention and attracting new members. By speaking with the president of the Ohio
Buckeye chapter, we learned that reaching members is very difficult because they are
only provided mailing addresses for members. We also learned that many members view
the Club as being exclusive and impersonal. By creating a database with member contact
information, it would be far easier to keep in contact with members and notify them of
upcoming opportunities and events. Regular and consistent contact with the members will
also remove the stigma of exclusivity from the club.
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Implementation
The primary goal of the BMW CCA five year plan is to increase not only the
current number of members throughout the United States, but to also increase the
potential of new membership in the college age demographic with a strong focus and
emphasis on women. To achieve this we believe there need to be changes to the way
BMW CCA promotes the experience that it provides to their members.
One of the strongest ways to achieve this goal is through the implementation of
the traveling BMW CCA tour show. As discussed above, through advertising and
promoting on the top 75 college campuses, the tour will be able to reach out to new
consumers in the college market. The goal is to simulate the experience of being a BMW
CCA member to the younger demographic. And, over the next five years, we believe that
having one show a year at each of the 75 schools is very achievable. Additionally, by
providing campus representatives at each of the 75 schools, there will be a continual and
strong presence for promoting the car club.
In addition, we feel that there is potential to create strong and lasting relationships
between the BMW CCA and BMW dealerships across the nation. By combining efforts,
these two organizations will be able to mutually benefit from one another due to the
alignment of their goals and objectives. By promoting at BMW dealerships, BMW CCA
will undoubtedly be reaching a current target of theirs, while also attracting potential new
members who do not currently know about the organization.
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Budget
The budget for the marketing plan and strategies, assuming implementation, will
be very flexible and adjustable from chapter to chapter. Due to the fact that the chapters
across the nation are so different and diverse as far as how many members are involved,
how active the chapter is, and what the primary goals are, we believe that budgets will be
based primarily on an individual chapter basis.
With all of the changes that we have proposed for BMW CCA, the product
remains the same. The product is still the experience that the enthusiasts will be receiving
by paying a monthly or yearly membership fee. Again, we feel that this fee should be
very individualized for each chapter (in addition to the fee that members must pay to
national headquarters).
The budget for our promotional strategies will follow the framework laid out
above. There will be costs associated with travel and getting the cars and promotional
materials to the campuses; however, we feel these costs will be minimal (gas, food,
lodging) and will be easily refundable either through national headquarters or through the
local chapter.
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Evaluation and Control
By setting yearly benchmarks pertaining to the number of new members joining
from the specified demographics, BMW Car Club of America will be able to set and
track quantifiable goals. As time progresses and the effects of these new marketing
tactics are witnessed first-hand, our leadership is prepared to adapt and make
modifications when deemed appropriate.
We will be able to track our progress continually via the online registration
procedures that all new members must complete. The spectrum of profiles registered
through our website will allow for tracking of the changing demographics that make up
BMW CCA’s member population. This data will be available as a summary of the
national population as well as at a chapter-by-chapter level.
In addition to identifying the changing population trends, we will be able to easily
measure the effectiveness of our new marketing techniques. When new members
register, they will be presented with the following prompt: “How did you hear about
BMW CCA?” Answers to this will aid in identifying the most productive methods of
recruiting members of the selected demographic.
Using the developed plan, we plan on observing an overall membership increase
of 5% by 2011. Ideally, this increase would be comprised of at least 40% female
members and 20% college students and/or recent college graduates. If we do not see this
increase and are unable to appeal to the targeted population with the developed methods,
we will adjust accordingly using the data obtained through online registrations as a guide
for future efforts.
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Bibliography
Audi Club North America - Home. 12 Feb. 2009 <http://www.audiclubna.org/>.
Bimmerfest: BMW Forum, BMW Research, BMW European Delivery, 335, M3. 12 Feb.
2009 <http://www.bimmerfest.com/>.
Bimmerforums.com - The Ultimate BMW Forum. 12 Feb. 2009
<http://www.bimmerforums.com/>.
BMW CCA. 12 Feb. 2009 <http://www.bmwcca.org/>.
Mercedes-Benz Club of America. 12 Feb. 2009 <http://www.mbca.org/>.
Saylor, George. "BMW CCA Buckeye Chapter President." Telephone interview. 30 Jan.
2009.
The Porsche Club of America. 12 Feb. 2009 <http://www.pca.org/>.
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