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 the 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 is mature and market share ***** critical to survival. Consumers are less br*****-loyal than in the past, and every market segment has an *****creasing number of choices. To increase sales and gain ground in the market share battle, companies must improve *****ir ability both to acquire first-time cus*****mers ***** to develop customer loyalty to their current brands.

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

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

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

Statement of the Problem

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

Phase ***** has adequately assessed the need for both traditional and non-traditional elements with a 40/60 split, respectively, between ***** two. This case study has down played ***** ***** because ***** the different psychographic characteristics of ***** expected buyers that fall across multiple demographic segments. However, it appears ***** ***** considerations need to be considered more strongly in the selection of traditional advertising *****s. For example, all ***** 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, ********** a *****iceable lack ***** focus on Generati***** Xers in the traditional advertising efforts. Although this group is tough to reach through traditional advertising, there ***** ***** vehicles that ***** out to this *****.

The non-traditional elements of Phase I also present several

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