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 au*****motive industry ***** mature and market share is 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 ***** 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.

It advertised through traditional media, mostly print and television, ***** in traditional ways. BMW was thought of as being a serious and tradition-bound company ***** cus*****mer perceptions that BMW 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 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 ra*****r than in demographic terms. Non-traditional media would be more cost efficient for the psychographic segmentation and would deliver a broader audience. The Z3 was marketed as a fun and stylish ***** while preserving the BMW driving performance reputation. And, ***** I replaced "Made in Germany" with "Made by BMW" ***** reflect ***** the Z3 was manufactured in Spartanburg, South Carolina.

***** of the Problem

***** Phase ***** was a great success for *****, ***** company needs to more fully assess some of the shortcomings of this initiative. *****, 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 ***** extend the ***** of Phase I as well as incorporate lessons learned.

Phase I 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 ***** ***** ***** ***** ***** different psychographic characteristics of ***** expected buyers that fall across multiple demographic segments. However, it appears ***** demographic considerations need ***** be considered more strongly in the selection ***** traditional advertis*****g vehicles. For example, all ***** television and print advertising is currently on a n*****tional basis, but it's likely that there are certain local markets, namely large cities, make good advertising targets through the use of local newspapers. Also, ********** a ********** lack of focus on Generation Xers in the traditional advertising *****. Although this group is tough to reach through traditional advertising, there are traditional ***** ***** ***** out to this group.

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

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