“BMW has a certain required guideline in terms of marketing, sales processing and branding that must be maintained”
Interview by Ashfaque Zaman
The General Manager of Executive Machines
How are you helping BMW’s brand promotion in Bangladesh?
In Bangladesh, we deal with a very niche market therefore you have to be creative and careful. We promote the brand through experience; our main focus is to give our clients a luxury experience whether it is through our retail showroom or separate promotional engagements. We engage our clients with events on a quarterly basis, attempting to reach them on a personal level. The idea is that luxury is exuberated and our clients feel appreciated.
According to BMW’s market study, the consumer market reaches 1000 new consumers every year. How do you entice these new clients?
There are many factors involved in attracting new clients. Two important factors include having the passion for cars and the purchasing power. The target is to find a balance between these two. In Dhaka this number is about 400 to 500, and we focus on potential customers that have a passion for a luxury vehicle because it tends to be an exclusive investment. Our aim is to invite the consumers to different events and showcases, which allows them to experience BMW and our hospitality on an interactive level.
How difficult is it to maintain an international brand in our local market? Are you using the generic BMW marketing plan or your own strategy in the context of Bangladesh?
It is very difficult primarily because you have to balance the international and local expectations. BMW has a certain required guideline in terms of marketing, sales processing and branding that must be maintained. For example, everything from the tiles to the furniture in our showroom has been imported in accordance with BMW Global Guideline. But when it comes to marketing, we do try to keep the local culture and mindset in consideration. BMW appreciates this as they understand diversity.
Two factors that affect the sales of cars, political instability and congestion. How have these factors affected your sales?
Political instability will definitely affect sales of cars temporarily. In this instance, the niche market becomes advantageous because our customers will buy the car when the country becomes stable eventually. As far as road congestion is concerned, we have turned that into our advantage. If you are going to be stuck in traffic for 3 hours, the best vehicle to be stuck in is in a BMW. Unbeknownst to most, the concept of a luxury car has changed. It is no longer about being a status symbol. It is an idea that has evolved into giving precedence to convenience, comfort and cost. Keeping these three in mind, we provide 5 years of free service, maintenance, repair and parts once you buy a car from us. This becomes very advantageous for our clients as they don’t have to worry about anything for the next five years other than fuel costs. So, if you consider the positives, they far outweigh the negatives, and this entices our customers to come and buy now. Since no other brand is offering this in Bangladesh, our sales has seen a steady rise while others have witnessed a decline.
With BMW celebrating its centennial by releasing the seven series, what can customers look forward to in this series?
The seven series will be the most innovative and most luxurious car in the market with a number of key features. This includes the gesture control, which allows you to control audio, video and phone call with simply gestures. More focus is put on the passenger, where the back seats are like a business class lounge. There is a built-in tab that controls the multi-media and the movement of the seat amongst others. The most innovative feature is the display key. The key will tell you how much fuel you have, and whether the car is locked. The remote control feature allows you to mobilize and relocate your car from the outside. It eases the tensions of parking.
By 2020, BMW group wants to strengthen their position to selling 2 million units per annum. They see Bangladesh as a potential country for sales growth. Why do you think BMW has particularly chosen Bangladesh?
The duty for the car has a great deal to do in this aspect. If you look at BMW cars, we try to focus on environmentally friendly engines. BMW have gradually taken the initiate to lower the engine sizes. It has changed from a 2.0-liter engine to a 1.5-liter engine. The 1.5-liter segment has a lower duty of 131%, compared to 2 liters, which is 217%. The new models that are being imported have significantly lower prices, opening an all-new target group, such as bankers and private sector employees.
A Dashboard Perspective
What distinguishes BMW from any other automotive company?
As of 2016, we have a century of research, knowledge and experience behind our cars and for our brand value. Our greatest strength would definitely be the skilled workforce. Our clients are getting the best technology and the best people including the best engineers and the best aftersales service available in the country. Our engineers are highly skilled and we have unparalleled after sales service. Upon the purchase of the car, our clients are ensured that there will be no fuss for the next 5 years because of the free services, free parts, free repair and free maintenance contract we provide.
What is the Achilles heel of BMW? How do you overcome it?
Our greatest weakness would be cost. If you look at the duty charge for cars in Bangladesh, the high cost is a direct result of the high duty. If a client inquires about the prices, we duly educate them of the breakdown. But there is an advantage to this as well. The duty that we pay, and the customers in turn gives us goes directly to the government exchequer. Rest assured this money is then spent on development projects the government so efficiently undertakes. In a way, we are all contributing to the development of the country and economy.
The mind-frame of a committed operative
As you enter Afzal’s office space, there is a framed speech above his table. He elaborates that he has placed the Civil War speech given by his inspiration Abraham Lincoln. Afzal postulates, “It is not just the speech, it is the person. He proves that with conviction, unwavering belief and complete dedication, your goals can be achieved. Lincoln reminds me that if you have a certain objective in mind, you must be fully invested in achieving it.”
