Essay - Current Situation the Automobile Industry is Highly Competitive. BMW Had...


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Current Situation

The automobile industry is highly competitive. BMW had temporary set-backs caused by competition from Lexus, Acura and Infiniti in the late 1980s, but rebounded to claim a significant position in ***** luxury/performance segment. BMW expects its new Z3 Roadster to engage in competition with other luxury car import manufacturers such as Porsche and Mercedes. The automotive *****dustry ***** mature and market share is critical to survival. Consumers are less brand-loyal than in the past, and every market segment has an increasing number of choices. To increase sales ********** gain ground in the market sh***** battle, companies must improve *****ir ability both to acquire first-time cus*****mers and to develop customer loyalty to their current br*****s.

Prior to Phase I marketing efforts for the ***** Roadster, ***** was a very traditional company.

*****t advertised through traditional media, mostly print and television, and in traditional ways. BMW was thought of as being a serious ***** tradition-bound company ***** cus*****mer perceptions that ***** meant German manufacturing with resulting quality engineering and driving performance. BMW cars were branded as "Ultimate Driving Machines."

The Z3 Roadster required a m*****jor revamping of ********** marketing efforts and Phase I was undertaken to make several changes. First, ***** marketing would not be sufficient for the new vehicle because the Z3's target market was defined in psychographic terms ra*****r than in demographic terms. Non-traditional media would be more cost efficient for the psychographic ********** and would deliver a bro*****der audience. The Z3 was marketed as a fun *****nd stylish vehicle while preserving the BMW ***** performance reputation. And, Phase I replaced "Made in Germany" with "***** by *****" ***** reflect that the ***** was manufactured in Spartanburg, South Carol*****a.

***** of the Problem

While Phase ***** ***** a great success for BMW, ***** ***** needs to ***** fully assess some of the shortcomings of this initiative. And, because Phase I ended well before the actual launch ***** the new Z3 *****, a Phase ********** marketing strategy needs ***** be defined that will begin in January 1996. This new phase should compliment and extend the ***** of Phase I as well as incorporate lessons learned.

Phase I has adequately assessed the need for both traditional and non-traditional elements with a 40/60 split, respectively, between the two. This case study has down played demographic segmentation ***** of ***** different psychographic characteristics of its expected buyers that fall across multiple ***** segments. However, it appears ***** demographic considerations need to be considered more strongly in the selection of traditional advertis*****g vehicles. For example, all traditional television and print advertising is currently on a national basis, but it's likely that there are certain local markets, namely large cities, make good ***** targets through the use of ***** newspapers. Also, there's a noticeable lack ***** focus on Generati***** Xers in the ***** advertising efforts. Although this group is tough to reach through traditional *****, *****re are ***** vehicles ***** ***** out to this *****.

The ***** elements of Phase I also present several

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