BMW Group Canada is looking to revive the Individual Collection (IC) program to distinguish BMW from the competitor high end vehicle customization marketing options. In order to successfully revive the Individual Collection program at BMW, changes need to take place at the head office level to create awareness and importance on this program to increase sales and excitement companywide.
Re-launching the Individual Collection program at BMW would increase sales by creating a redesigned marketing strategy that would bring interest to the automotive market.
There are four major alternatives to increase awareness and the revival of the Individual Collection program:
1. Training – head office to provide companywide training to all retailers
2. Financial Incentives – head office to provide financial incentives to each retailer to be measured on a quarterly and annual basis
3. Advertising Campaign – create advertising target market for top executive/professional and elitist customers
4. Status Quo - take no action as it would be costly at both corporate and retailer level.
Alternatives 1, 2 and 3 are recommended in order to increase customer awareness and potential sales on the re-launching of the Individual Collection program.
Providing proper training by head office to all retailers companywide will create awareness, product excitement and product knowledge to retailers to enable them to promote the IC program to the BMW enthusiast.
Providing financial incentives to each retailer by head office will create competition among all the retailers. Also it will create more interest and motivation by sales staff to promote the IC program.
Creating a new marketing campaign to promote the re-launching of the Individual Collection will be a crucial step to make this program successful. Targeting the executive/professionals and elitist segments of the market will allow BMW to focus their efforts on those segments with the greatest perceived opportunities.
If the plan does not provide satisfactory sales/profit the IC program must be scaled back. Further analysis will need to be performed to determine which IC options have been the most successful within each customer segment and promote the most favourable options moving forward.
BMW is looking to re-launch the Individual Collection (IC) program which was once promising but whose sales have been declining substantially. The immediate problem requires BMW to develop a new strategic plan which specifically includes:
• Defining customer segments interested in BMW cars
• How to position this offering against all other offerings in the luxury/sport car segments
In the long term, BMW must develop and implement a retailer incentive plan to assure the continued success of the IC program.
BMW’s objective is to differentiate itself from other automobile manufacturers in the same market by satisfying the needs of customers who are looking for a luxury/sports car reflecting their personal taste. To obtain this objective BMW must successfully re-launch the IC program. This will require the development and implementation of an effective retailer incentive plan to align retailer/dealership focus with organizational goals.
BMW was founded in 1916 as a manufacturer of aircraft engines and in 1923 it developed a revolutionary shaft-drive motorcycle. Five years later, BMW produced its first automobile, and then in the 1970s it began to set its imprint as a leading premium car maker. BMW Canada Inc. was formed in 1986 to take over the business activities of two importers (distributors in Vancouver, BC and Whitby, ON). In 2005, it reported continuous increasing sales for fifteen years, which is unmatched in the...
References: 1. Perreault, William, Jerome, McCarthy, Lindsay, Meredith, and Lynne Ricker. Basic Marketing: a global-managerial approach. 12th Canadian Edition. Toronto: Lynn Fisher, 2012. Print.
2. Ivey Management Services, “Customization at BMW”. Marketing Management MM1 Cases. McGraw-Hill Ryerson Canada, 2009. Print.
3. "BMW Market Analysis." BMW Market Analysis. N.p., n.d. Web. 18 Sept. 2012.
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