Media Planning for BMW ActiveHybrid 7. The BMW ActiveHybrid 7 was introduced in 2010. This is a leading product for BMW to access to the high-end hybrid power vehicle market. It has numerous unique advantages over its competitor, Lexus and Mercedes-Benz.

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Situation Analysis

  • History of BMW

Bavarian Motor Works (BMW) was found in 1916 originally as an aircraft engine manufacturer. BMW’s white and blue logo was inspired by the Bavaria’s flag which shows the colors of the Free State of Bavaria where BMW headquarters in. The company was not a listed company until 1918. In the initial stage, the company was devoting to the development and production of the aircraft engines. After the World War I, BMW was forbidden to stay in this industry by the Versailles Armistice Treaty. Then, BMW shifted to produce motorcycle in 1923. Five years later, BMW acquired an experienced automobile producer, the Eisenach automobile plant, and began to access the automobile markets. The first BMW’s automobile came out in 1929. Afterwards, BMW produced a lot of fantastic products in the automobile industry. These products continue to help BMW to build a strong brand name and perfect reputation in all human beings’ mind. Now, BMW is becoming one of the world’s most successful and profitable automobile and motorcycle manufacturers.

  • Information about the China Market
  • In 2010, because of the rapid development of the purchasing power of the Chinese people, the domestic automobile sales were 1142 million with a 35% year-on-year growth rate. Meanwhile, the imported luxury car sales exceeded 676,000 with a 69% year-on-year growth rate which was twice as rapid as the overall market. BMW sold approximately 169,000 automobiles, while Audi and Mercedes-Benz achieved more than 228,000 and 147,000 sales volumes.
  • In China, people prefer luxury cars which are manufactured by German companies, because of their solidness and stability, classic decorations, one of the safest frames in the world, and the comfortable space inside.
  • There are lots of immature markets existing in China, including the high-end hybrid power vehicles. After the introduction of Lexus’ and Mercedes-Benz’s hybrid power automobiles, BMW tried their best to follow such pioneers’ steps to join the market. The situation of three parties surviving and thriving is outstanding in Taiwan’s high-end hybrid power vehicle market. Moreover, it is the same as in the global market.
  • Here is the table of “Automobile Market Analysis in Beijing, in August, 2010.” It shows that the automobile market in Beijing continued expanding in 2009 and 2010.
  • Product—BMW ActiveHybrid 7

The BMW ActiveHybrid 7 was introduced in 2010. This is a leading product for BMW to access to the high-end hybrid power vehicle market. It has numerous unique advantages over its competitor, Lexus and Mercedes-Benz.

First of all, Active Hybrid 7 is positioned as a luxury automobile, not only because of its high-price, but also because of its true premium brand, high-performance and low fuel-consumption. Compared with the standard version of 760i, the car's fuel-consumption has improved significantly because of the application of the new hybrid power technology created by BMW. Based on the announcement of U.S. Environmental Protection Agency, the fuel-consumption is merely 26 miles/gallon (EPA, 2010).

The driving force of the ActiveHybrid 7 is really close to the 760i which has a V12 engine. But the price of the ActiveHybrid 7 is much lower than the prediction made by some experts. In addition, even though the weight of the car is increased by the nickel-hydrogen batteries, the fun in driving has never disappointed people. Its acceleration from 0 to 100 km/h is expected to take only 4.9 seconds. In contrast, a similar product with the 7.7 seconds acceleration, which was manufactured by Mercedes-Benz, was completely defeated by ActiveHybrid 7.

The size of the ActiveHybrid 7 becomes much longer and a series of equipment inside the car is also improved. These will absolutely provide both the drivers and the passengers a comfortable travelling environment which is essential for a great amount of people who value these aspects a lot.

Competitive Analysis

  • Competitor One
  • History of Mercedes-Benz

Mercedes-Benz is a world famous automobile brand which is a division of its parent company Daimler AG. It was founded by Karl Benz (who had created the first petrol-power car in the world) Gottlieb Daimler. In 1926, however, their companies were going into a merger. Then the first Mercedes-Benz car was produced and the company Daimler-Benz was born. (Mercedes-Benz.com, 2010)

In addition, Mercedes-Benz recently ranked the fourth (Volkswagen fifth, Fiat sixth) in the Ranking of First Hundred Large Companies in Europe. In the world’s largest automobile company ranking, Mercedes-Benz only come after the U.S. General Motors, Ford and Toyota.

  • Mercedes-Benz in China

In 1986, Mercedes-Benz (China) Motor Sales Co., Ltd. was established. So far, more than 150 authorized sales centers and authorized services centers were founded in about 70 cities in China (Mercedes-Benz.com, 2010). There are dozens of models of Mercedes-Benz which are driven in the Chinese highway, including S-Class, C-Class, E-Sedans, and so on. As Björn Hauber (2010), the sales and marketing director of Mercedes-Benz, said that, “In China, from January to August, 87,500 Benzs were sold. The sales rose more than 130% from the year earlier. I am confident that our sales will exceed 100 thousand in 2010 since we have the speediest growth in this market.” Actually, the goal made by Mr. Hauber was achieved two month earlier than his schedule.

  • Competitive Product—Mercedes-Benz S400 Hybrid

The S400 Hybrid is a   produced by  Company. It is a hybrid power car. The two major characteristics of this model are dynamic capability and green capability.

For the dynamic capability, the S400 Hybrid’s dynamic system consists of a combustion motor and an electric motor. They can respectively provide the power of 205 kilowatts and 15 kilowatts. It can accelerate from 0 to 100 km/h in 7.2 seconds only. Besides, the power of an electric motor is supplied by a lithium-ion battery which is first applied in a production vehicle. When the car is braking, the battery will recharge through the regenerative brake system. This technology can markedly improve the car’s agility and the boost function. It also allows the engine to use these two power sources for a short period when accelerating.

For the environmental capability, because of the application of the combined drive unit, it can significantly decrease the oil-consumption and CO2 emission of S400 Hybrid.

  • Competitor Two—Lexus
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  • History of Lexus

Lexus is a sub-brand of Toyota Motor Corporation. Its name is the combination of the words “luxury” and “excellent” which represents that Lexus specializes in manufacturing luxury and high-end automobiles.

Globally, the mission statement of Lexus is “The Pursuit of Perfection.” In America, it is modified a little bit—“The Passionate Pursuit of Perfection.” It also targets the three most famous Germen automobile manufactures as its competitors which are BMW, Mercedes-Benz and Audi. More and more excellent products are created for competing with them. With such a huge series of products, Lexus recently become the best-selling high-end ...

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