BMW and the power of innovation

A series in the BMW museum.

BMW features a museum full of history and beautiful luxury vehicles.
(photo by Katie Pflug)

by Michelle Graessle

Black leather seats. The cool smoothness of a steering wheel in eager hands. The tenacious purr of a hand crafted engine. Jaw-dropping design that would leave Leonardo Da Vinci in awe. This machine belongs in one place: on the road.

The classic image of a sleek BMW is only slightly altered for the company’s newest concept, BMW i. That difference is not actually even visible, only audible because the BMW i series of vehicles is completely electric. Although its purr may be somewhat muted, its innovation, power and design are unaltered if not improved.

Manuel Sattig, communication manager for BMW project I, is adamant that although combustion engines are becoming more efficient, they will eventually be phased out and electro-mobility will be at the forefront of automotive innovation. He said that people are becoming more and more interested in the environmental and ecological responsibility of the products they buy. With that in mind, and BMW being a customer-driven company, it has to keep up with its customers’ wants and needs and prepare for the future while maintaining brand identity.

“In this time period we are in the middle of an iconic change. Right now, this is not a technology that is the most suitable necessarily for today and tomorrow, but it will definitely be one of the major technologies of the future. That’s why you have to take care of it now, to make your company fit for the future,” Sattig said.

An American BWM tour guide showcases one of BMW's tiniest models.

An American BWM tour guide showcases one of BMW’s tiniest models.
(photo by Marina Weis)

BMW did extensive research before moving forward with the cars. The BMW i3 will be released this fall and the BMW i8 next year.  The price for the i3 will be under 40,000 euros  in Euope; BMW hasn’t finalize the price yet.

The BMW i was formerly known as the “Megacity Vehicle” and is best suited for urban markets. The car must be charged like any other battery-powered device but is also complemented with a small combustion engine. This combination makes for an extraordinary driving experience while also maintaining exceptionally low fuel consumption and emission levels, Sattig said.

Sattig said that the two most important benefits of driving a BMW i are its focuses on environmental and economic efficiency.

“The environment is important because we have to reduce resources and emissions of vehicles. Also, you can actually say right now that driving an electric vehicle is about half the price, just for energy costs, of driving a very efficient combustion engine. Those are the two major factors people think about when considering electro-mobility,” Sattig said.

New innovations aside, BMW will always be a company devoted to driver experience and the tradition of the brand as Stefan Mueller, a staff member of the International Corporate Communications department, can attest to.  For example, it is important to BMW that its cars can go from 0 to 60 mph in four seconds.

“BMW is a brand driven by emotion. Our cars are sold on the notion that driving is for sport and it’s fun,” Mueller said.

The appropriately shaped BMW building.

The appropriately shaped BMW building.
(photo by Carson Allwes)

BMW can trace its roots back to Karl Rapp and Gustav Otto, according to the company’s website. In 1916, the Flugmaschinenfabrik Gustav Otto company had merged into Bayerische Flugzeug-Werke AG (BFW) at government behest. Elsewhere, in 1917, the Rapp Motorenwerke company morphed into Bayerische Motoren Werke GmbH, which was duly converted into an AG (public limited company) in 1918. BMW became an automobile manufacturer in 1928; the first motorcycle was produced in 1945. It bought the Rover Group in the United Kingdom to expand its range of models, including the Land Rover, Rover, MG, Triumph and Mini. It acquired Rolls Royce in 1998

This idea holds true as visitors cross the street into the BMW Welt and Museum, where the tradition and history of this iconic brand is encapsulated in some exquisite architecture. Classic cars and new concepts are on display for visitors to ogle, including the Rolls Royce and Mini vehicles it produces. Shiny and pristine, the museum holds original airplane engines and motorcycles of the inception of the company as well as showcases the development of BMW through the years.

As the Point Park visitors made their way through the many displays, Mueller’s idea of “driving for sport” is grossly apparent. Each specimen of automotive prowess displayed at the BMW Welt and Museum clearly wants to be used for more than just driving to work. Emotionally invested employees clearly designed and created these cars with some grand scheme of experience in mind; not just for transportation but for the love of driving.

DAY 11 – Ketchum and Suddeutsche

press

Süddeutsche Zeitung’s huge printing presses

DAY 11 – Ketchum Pleon and Süddeutsche Zeitung

It has been very impressive this trip that all of our hosts have been of high rank in their companies and are very knowledgeable in every aspect. We have been very lucky to hear these people talk, and I’m sure many other students would love to have such an honor. That’s why I want to thank Helen and Jan and everyone who put this all together!

As I mentioned before, BMW was a great segway into the next marketing visit. I thought the Ketchum environment was especially inviting. It kind of reminded me of the Smith Brothers in Pittsburgh. The offices were modern and colorful. It would be great to work in such a positive, creative environment.

I thought the highlight of this visit was the case study they showed us for a drug that helped with gas. It put everything that they were explaining about their company and strategies into action. I thought it was genius to work with the stigma that gas has but then relate it to the fact that everyone gets it, even celebrities. The video was also attractive and cute! I could see myself possibly going to grad school for advertising if journalism doesn’t work out for me.

Later in the day we visited Süddeutsche Zeitung was not expecting it to be the leading newspaper in Germany after we received such a confident presentation from Die Welt. The presenters seemed much more humble although not as relaxed. I took a few pictures of the slides they showed that featured charts of the few leading newspapers in the country and their circulation throughout the years. I remember researching the FAZ and its history and these charts not only matched my research, but also tied everything together. I thought it was also very interesting to hear their perspective on the FAZ, which is the most personal and accurate kind of information about a company one can get.

I also took a photo of the slides showing how people get their news, such as people get the Süddeutsche Zeitung mostly through subscription, but Die Welt readers focus a lot more on the internet. They also had a slide that basically painted a picture of the audience of the newspaper. It seemed to be that elite, educated people between the ages of 20-49, who already have an understanding and awareness of issues in the world, are the ones that pick up the paper.

Learning about the online version was also a treat, but I also felt like in the future it might benefit them to focus more on breaking the news online and then publishing it in the paper more often. I know the editor said there is some communication between online and print, but in my mind, they both need to be one in order to survive.

The communications director told us that the paper survives because it provides quality content. It is a family paper, not a full business paper like the FAZ. People pick it up for its credibility and variety. And maybe too for its innovative advertising! I thought it was great that the paper took risks with advertising, especially with BMW. I personally think risk takers set standards.

Seeing its huge presses running was also a great experience. I really enjoyed learning about the long process that happens in order to get the papers out. I thought it was interesting to know that Die Welt is also printed there. The highlight of the tour was hearing about how 9/11 affecting the presses all the way over in Germany as well as the advertising.

Overall, this was a great, informative day. I think it is so great that all of these people take the time to speak with us. I could never imagine an editor from the New York Times speaking to us. I think because we are foreign, it is like an honor to them to speak to us. Whatever the case, I am forever grateful for the experiences!

DAY 10 – BMW

A tiny car in the BMW museum

A tiny car in the BMW museum

DAY 11 – BMW

The BMW excursion was a nice introduction into the marketing and advertising part of our trip. Even though I don’t know much about cars, let alone marketing, I was able to understand the overview of the company, strategies and new products because of how simply and concisely they were presented.

One of the first things they did was explain BMW’s target audiences across the world. I thought it was interesting that its marketing strategy for the spread out cities in the United States is different from that of the crowded cities in Europe. I never realized how many different factors, such as gas prices and even the electrical stability of a country, which a company would have to take in when trying to sell such a complex product in completely different environments.

I also thought that BMW presented its new “innovative” products in a very confident, yet humble manner. The attitude contrasted with that of Die Welt’s where they repeatedly boasted all of the newspapers accomplishments. With BMW, we were presented with the impact the innovation would have on consumers and how it would benefit society and the environment as a whole.

Speaking of benefits for the environment, it amazes me so much how much more “green” Germany is than the United States. On our train rides, I always see neighborhoods with each house having solar panels on the roofs. The folks at BMW also mentioned that Angela Merkel wanted to have more electrical cars in the near future, which brings up my next interesting highlight.

Marketing involves politics. I always knew that, but I never had a class on marketing so it was never made completely obvious. I thought it was so interesting how BMW talks with the government about the economics of transportation. It makes me feel like BMW is not just a monster company all for itself, but it also cares about society.

I saw a similarity between BMW and Süddeutsche Zeitung that they both make sacrifices to be the best of the best. BMW sells because it offers “premium” quality and the newspaper survives off of top-notch quality content. These are aspects to which consumers can become loyal.

To end the day the museum was an eye-opener and a lot of fun. I enjoyed seeing all of the super old cars and learning about their history. I’m sure my dad, who is a car buff, will really enjoy the pics!

Alexa’s Blog – Day 10

The following events transpired on 5/21/13.

The day was exciting before it truly began. I went to breakfast early so I could get a quicker start to my day, as I finally had the chance to change my US dollars to euros. We were going to BMW that day and I knew that the only time I could shop for souvenirs would be in the afternoon after we got back. I was very frustrated with the exchange rate, which I knew would be tough. But, I was sickened to learn that my $300 only came out to 200 euros. I will never come to Europe with American cash again.

On our way to BMW, I pushed Carson to the train station in her wheelchair. I gave her my purse to hold because I did not want someone to steal it off of me while I was distracted and using both of my hands to push her. This seemed like a smart idea at the time.

Then it happened. As the train arrived at the station, Arnoud took the reins and pushed Carson’s wheelchair into the train car. But, her wheel got stuck in the gap between the train and the platform and my bag flew out of her lap and down into the abyss. We all looked down in horror to see my poor bag, out of my own hands for safety reasons, nestled on the grown next to the tracks. The door began to close but we managed to pry them open and I jumped inside.

I forced myself to be calm. No need to freak out yet. We took the train up one stop and the rest of the group stayed put while Arnoud and I went back to the previous stop to see if we could save my bag. On the train, we agreed that I would locate where my bag had fallen and he would go look for an attendant to see if we could get an apparatus to retrieve it.

However, as soon as I found my unharmed bag, Arnoud had a different idea. He checked both ways for oncoming trains and dove down onto the tracks, snatched the bag up, and climbed back onto the platform. The other train stationers and I stared in amazement. Arnoud seems to have a particular set of skills. Skills that make him a nightmare for accidents like this.

We got on the next train to head to the next stop where the rest of our group was patiently waiting. Arnoud signaled for them to join us and I relayed the story of how our guide had just gone rogue and nearly sacrificed himself. He explained that it would have taken too long to find an attendant. Despite this adventure, we still managed to make it to BMW on time.

After we arrived at Bavarian Motor Works, we listened to a lecture on their innovative tactics with social media, apps, and their new electric car models. I was surprised that I liked it as much as I did. I thought that it would boring and irrelevant to me since I’m a girl. I don’t know a thing about cars, but I was happily surprised to find everything we talked about to be quite interesting. I loved the variety of apps that they had for finding parking in various cities, finding transportation, booking parking places, etc. It’s so different and effective. It makes me wonder if any American car companies are on their way to be as groundbreaking as BMW.

After enjoying a great (free) lunch we moved on to take a tour of BMW and admire all of the beautiful cars and the rich history starting with manufacturing airplane parts, and eventually motorcycles and automobiles. They even had a model of the electric car concept that they were working on. Unfortunately, it was one of those days where it would rain at the most inconvenient times, i.e. every time we went outside.

We arrived back at our hotel in the afternoon. The train ride back from BMW was much less adrenalized than the morning commute.

I took advantage of my free time and walked down to Marienplatz to do some shopping for my family, and then a group of us took a trip to the Hofbrauhaus in honor of Johnie’s birthday. We drank liters of beer and had a jolly time eating pretzels and staring at strangers. At the Hofbrauhaus, I ended up running into a friend of mine from Pitt who is studying in Munich for a few weeks. Small world!

We came back to the hotel and planned to up to go out somewhere, but I sat on my bed in the room and just crashed. There was no way I was moving. I’m a little annoyed at myself for not going out during our last truly free night in Munich, but I knew my fresh body and mind would thank me in the morning.