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 ***** competition with other luxury car import manufacturers such as Porsche and Mercedes. The automotive industry is mature and market share ***** 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 *****d gain ground in the market ***** battle, companies must improve their ability both to acquire first-time customers and to develop customer loyalty to their current brands.

Prior to Phase I marketing efforts for the Z3 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 ***** tr*****dition-bound ***** ***** cus*****mer perceptions that ***** meant German manufacturing with resulting quality engineering and driving performance. BMW cars were branded ***** "Ultimate Driving Machines."

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

***** of the Problem

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

Phase ***** has adequately assessed ***** 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 because ***** ***** different psychographic characteristics of ***** expected buyers that fall across multiple demographic segments. However, it appears that ***** considerations need to be considered more strongly in the selection of traditional advertising 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 ***** **********. Also, ********** a noticeable lack ***** focus on Generation Xers in the traditional advertising *****. Although this group is tough to reach through traditional advertising, ********** ***** ***** vehicles ***** ***** out to this *****.

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

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