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 au*****motive *****dustry is 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 *****d gain ground in the market ***** battle, companies must improve *****ir ability both to acquire first-time customers 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, ***** in traditional ways. BMW ***** thought of as being a serious and tradition-bound company ***** customer perceptions that ***** meant German manufacturing with resulting quality engineering ***** driving performance. BMW cars were branded ***** "Ultimate Driving Machines."

The Z3 ***** 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 ***** Z3's target market was defined in psychographic terms rather than ***** demographic *****. Non-traditional media would be more cost efficient for the psychographic segmentation and ***** deliver a bro*****der audience. The Z3 ***** marketed as a fun and stylish ***** while preserving the BMW driving performance reputation. And, Phase I replaced "Made in Germany" with "***** by BMW" ***** reflect that the ***** was manufactured in Spartanburg, South Carol*****a.

Statement of ***** Problem

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

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

The non-traditional elements of Phase ***** also present *****


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