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 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 *****d gain ground in the market share 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, ***** was a very traditional company.

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

The Z3 Roadster required a major revamping of BMW's marketing efforts 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 rather than ***** demographic *****. Non-traditional media would be more cost efficient for the psychographic segmentation and ***** deliver a broader audience. The Z3 was marketed as a fun and stylish vehicle while preserving ***** BMW ***** performance reputation. And, Phase I replaced "Made in Germany" with "Made ***** BMW" to reflect ***** the Z3 was manufactured in Spartanburg, South Carolina.

Statement of ***** Problem

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

Phase I has adequately assessed ***** need for both traditional ***** non-traditional elements with a 40/60 split, respectively, between the two. This case study has down played ***** segmentation ***** of ***** different psychographic characteristics of its 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 n*****tional basis, but it's likely that there are certain local markets, namely large cities, make good advertising ********** through the use of local *****spapers. Also, there's a ********** lack of focus on Generation Xers in the traditional advertising *****. Although this group is tough to reach through traditional advertising, there ***** ***** vehicles ***** reach out to this *****.

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

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