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 industry is mature and market share is critical to survival. Consumers are less br*****-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 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 traditional ways. BMW ***** thought of as being a serious and tradition-bound company with cus*****mer perceptions that BMW meant German manufacturing with resulting quality engineering and driving performance. BMW cars were branded as "Ultimate Driving Machines."

The Z3 ***** required a m*****jor revamping of *****'s marketing ***** and Ph*****e I was undertaken to make several changes. First, traditional marketing would not be sufficient for ***** new vehicle because the Z3's target market was defined in psychographic terms rather than in demographic *****. Non-traditional media would be more cost efficient for the psychographic *****ation and would deliver a broader 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 "Made ***** BMW" to reflect ***** the Z3 was manufactured in Spartanburg, South Carol*****a.

***** of ***** Problem

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

Phase ***** has adequately assessed ***** need for both traditional and non-***** 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 demographic 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 local newspapers. Also, *****re's a noticeable lack ***** focus on Generation Xers in the ***** advertising efforts. Although this group is tough to reach through traditional advertising, there ***** ***** ***** that ***** out to this *****.

The non-traditional elements of Phase I also present several


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