What’s the Next Step for BMW?
Though BMW has a fairly large market share in its class, the path for BMW has not always been smooth sailing. Their success is linked with factors such as creative marketing, consumer involvement, and product reinvigoration. BMW started out as a very prestigious brand, but shares eventually came stumbling down when Honda introduced the Acura at a lower price. Honda offered service, reliability, and quality and charged less. After this hard time, BMW took actions to reinvigorate itself with the introduction of new vehicle models, series, an aggressive pricing strategy, and a reorganization of its dealer network. BMW also created more youthful advertisements that would later be imitated by competitors. These competitors, Lexus, Mercedes, Porsche, Volvo, Acura, and Jaguar try to compete on bases of similarity. However, each brand has a specific demographic that it relates to. The average BMW customer was about 46 years old with a median income of about $150,000. He is also well educated, married, has no children, and enjoys his free time after a long day at work. Mercedes consumers, on the other hand, view their vehicle as a status symbol. Volvo buyers are those who are more focused on safety rather than speed and agility. According to the case, BMW consumers are those who like to work hard, but they also have a little wild side to them. After the success of their Golden Eye campaign, BMW wanted a new marketing approach. One of the most successful and genius marketing campaigns was the BMW Films series. In these films, BMW focuses more on entertainment versus advertisement. The main character in these series is the BMW itself. All banged up, dirty, and shot, the BMW comes out of a suspenseful trail of events as the epic hero. These advertisements generated over nine million views, and most of the feedback by consumers was positive. The objective of the campaign was to show how BMW was different from the competitors. They wanted...
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