Bmw Brand Project

Topics: BMW, Automobile, BMW M3 Pages: 7 (2287 words) Published: November 5, 2011
Term project

2.0Literature review
2.1Brand and Product Overview
3.1Identification of the relevant theory
3.2Application of the theories
3.3Effectiveness of the theory

Consumer behaviour theory refers to the process through which people decide what, where, when, how, from where, and whether to buy a particular product. The theory explains the process through which consumers goes through when making the decision as to whether to buy or not. In addition, the theory explains what influences' an individual to buy a product and their attitudes towards the products. Consumer behaviour theory helps companies to understand the buying habits of customers so that they can be able to know how best to influence them to buy their products. Moreover, the theory helps companies know how to segregate the different customers, how to advertise their products and ho w to distribute the products. In this section, we look at two major automobile companies, Volkswagen and BMW and how they use consumer theory to target a market and market their brands. We analyze how Volkswagen and BMW have positioned themselves in the market with respect to Passat and 3 series respectively. 2.0Literature review

2.1 Brand and product overview
Volkswagen is a German automobile company which deals with the manufacture of automobile. The automobiles are divided into two, the passenger cars and commercial vehicles. In 2008, it was rated the third top most. Though the company has its operations all over the world, it has its core market in Europe. The company produces over 18 models of cars, among them, the beetle, Jetta, Polo, Golf, Passat and Passat CC. Passat is the company's second most selling model after the beetle (Rohm, 2007). BMW is an engine, automobile and motorcycle manufacturing company started in 1916. Its reputation is widely known for the production of luxury cars. Its number one provider of premium cars in the world. 3.0Analysis

3.1Identification of the relevant theory
Volkswagen's uses different marketing strategies to identify its market target. It uses demography to categorize their customers. The company mainly targets the luxury market especially with the Passat new model. The car enjoys a large market ranging from both males and females, people who want luxurious cars but economical, college graduates and households with an average income of $100,000. BMW divides its market geographically with its main market being in China and Asia. This is due to the rapid urbanization and development going on in these countries. China is developing at a very high rate and this has translated into increased need for more vehicles. 3.2Application of the theories

The Passat is car is one of the most luxurious cars for the Volkswagen. To market this car and get a larger portion in the market and uses demographic segregation. This includes people's age, gender, and socio-economic status. It is an upgrade of standard into a luxurious model. This way, customers are able to identify the model with their level of living. It is an innovative way of making the middle income earners to enjoy the feeling of driving a luxurious car. This has worked for the company as the passat continues to be the most sold luxurious car (Haak & Tachiki, 2004). The company developed the new passat model as a new and unique model. This is unlike the common Volkswagen model which can easily be identified. Customers are more interested in this new model due to its uniqueness and this has seen the sale of the car go up in the last few years. All categories of people, the old, the young, males and females are attracted to this new model. As a marketing strategy, the company continues to be creative in its models. Constant upgrading of the model is done to ensure that it’s better and better in the coming times. This way, people can still buy the same car but with...
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