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 ***** competition with other luxury car import manufacturers such as Porsche and Mercedes. The automotive industry ***** 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 their 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.

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

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

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

While Phase I ***** a gre*****t success for BMW, the company needs to more fully assess some of the shortcomings of this initiative. And, because Phase ***** ended well before the actual launch ***** the new Z3 Roadster, a Ph*****se II 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 *****corporate lessons learned.

Phase I 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 ***** the different psychographic characteristics of its expected buyers that fall across multiple demographic segments. However, it appears that ***** considerations need ***** be considered more strongly in ***** selection ***** traditional advertis*****g vehicles. For example, all ***** 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 advertising targets through the use of ***** *****spapers. Also, *****re's a noticeable lack of focus on Generation Xers in the traditional advertising ef*****ts. Although this group is tough to reach through traditional *****, ********** are ***** vehicles that ***** out to this *****.

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

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