Scribd Logo
Upload

Welcome to Scribd!

  • 44 views

    BMW Brand in North America: Case Study

    Uploaded by

    augustine_4u132
    BMW wanted to increase its global sales, especially in North America where it only had 2% market share. It had focused solely on performance for 33 years, so luxury car buyers did not consider it. BMW launched a new ad campaign in 2006 positioning itself as a "company of ideas" to attract new customers and make loyal customers proud. Some critics thought BMW was losing its soul by moving away from its "ultimate driving machine" tagline. The debate remained whether BMW had truly repositioned its brand.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    BMW Brand in North America: Case Study

    Uploaded by

    augustine_4u132
    44 views8 pages
    BMW wanted to increase its global sales, especially in North America where it only had 2% market share. It had focused solely on performance for 33 years, so luxury car buyers did not consider it. BMW launched a new ad campaign in 2006 positioning itself as a "company of ideas" to attract new customers and make loyal customers proud. Some critics thought BMW was losing its soul by moving away from its "ultimate driving machine" tagline. The debate remained whether BMW had truly repositioned its brand.

    Original Title

    bmwcase

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    BMW wanted to increase its global sales, especially in North America where it only had 2% market share. It had focused solely on performance for 33 years, so luxury car buyers did not consider it. BMW launched a new ad campaign in 2006 positioning itself as a "company of ideas" to attract new customers and make loyal customers proud. Some critics thought BMW was losing its soul by moving away from its "ultimate driving machine" tagline. The debate remained whether BMW had truly repositioned its brand.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    44 views8 pages

    BMW Brand in North America: Case Study

    Uploaded by

    augustine_4u132
    BMW wanted to increase its global sales, especially in North America where it only had 2% market share. It had focused solely on performance for 33 years, so luxury car buyers did not consider it. BMW launched a new ad campaign in 2006 positioning itself as a "company of ideas" to attract new customers and make loyal customers proud. Some critics thought BMW was losing its soul by moving away from its "ultimate driving machine" tagline. The debate remained whether BMW had truly repositioned its brand.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    You are on page 1of 8

    BMW BRAND IN

    NORTH AMERICA

    Case study
    Case facts:
     BMW reported growth of 7.1% in 2007, compared to 3% in
    2006.
     Senior management realize to increase the global sales
    they have to become major driver in North America
    where market share was just 2%.
     For that, promotional campaign needs repositioning.
     Because of overemphasis on “ Performance driving” over
    last 33 years, luxury car buyers don’t even consider it.
     One dimensional focus “performance”, that’s why
    customer perceived that it lacked humanity.
     Existing customers were “Yuppie”.
     In may 2006, they launched new ad campaign to
    reposition and promoted them as “ company of ideas”
    and they projected its design prowess and corporate
    culture that fostered innovation.
     Objective to build demand for new customers who
    never bought it and make proud the loyal customers.
     Some critics and analysts thought that BMW is losing its
    soul, by moving from the theme “driving” and
    “performance”.
     From 3 decades its tagline was “ the ultimate driving
    machine”, so it should remain stick to it.
     But the other felt that since its becoming 2nd ranking
    brand in luxury cars too and its sales had been
    increasing in last decade, so there is nothing wrong in it.
     But the debate remains whether it had really
    repositioned their brand.
    Case analysis:
    Market Strategy :
     It specifies the target market and related market mix

    target market : fairly homogeneous group of customers to


    whom company sell their product.
    In the present case target market : people buying luxury cars
    Market mix: controllable variables to satisfy the customers.
    4 Ps : Product, place , promotion, price.
    Product: luxury cars
    Place : South America
    Promotion: new ad campaigns saying it “ company of ideas”
    Opportunity to pursue
     From the types of opportunities, they tend to adopt

    “ DIVERSIFICATION” means moving into new lines of


    business.
    Here the new market represents of people who buy luxury
    cars and their new product was luxury cars.

    Positioning: it is based on customer views, it helps manager


    to understand how customer see their market.
    Here they positioned their new product i.e. luxury cars as “
    company of ideas “
     Porter 5 forces analysis:
     The threat of the entry of new competitors : “ low”

     The intensity of competitive rivalry : “ high”

     The threat of substitute products or services : “low”

     The bargaining power of customers (buyers)

     The bargaining power of suppliers


    SWOT analysis

    Strength:
    Strong brand
    image.
    Rapid growth
    rate

    Opportuniti Threat:
    es: from
    Increase in competitors like
    growth in Mercedes,
    north America Lexus, Cadillac.
    May lose its soul

    You might also like