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 and to develop customer loyalty to their current br*****s.

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 ***** 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, traditional marketing would not be sufficient for the new vehicle because the Z3's target market ***** defined in psychographic terms ra*****r than ***** demographic *****. 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 ********** stylish vehicle while preserving ***** BMW ***** performance reputation. And, ***** I replaced "Made in Germany" with "***** ***** BMW" ***** reflect ***** the Z3 was manufactured in Spartanburg, South Carol*****a.

Statement of the Problem

While Phase I was a great success for *****, ***** ***** needs to ***** fully assess some of the shortcomings of this initiative. *****, because Phase I ended well before the actual launch ***** ***** new Z3 Roadster, a Phase ********** marketing strategy needs to be defined that will begin in January 1996. This new phase should compliment and extend the ***** of Phase I as ***** as incorporate 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 ***** segmentation ***** of the 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 *****s. 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 targets through the use of local **********. Also, there's a noticeable lack of focus on Generation Xers in the ***** advertising ef*****ts. Although this group is tough to reach through traditional advertising, ********** ***** traditional vehicles that reach out to this group.

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

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