BMW automobiles Essay Example | Topics and Well Written Essays - 1500 words

BMW automobiles - Essay Example Introduction: During the 1990’s BMW had managed to established itself as one of the most profitable automobile manufacturer in the world. Ranking right after the BIG 5 in the automobile industry i.e. General Motors ,Ford , DaimlerChrysler , Toyota and Volkswagen. Originally Aero-space engine manufacturer the BMW had somehow manage to position itself amongst the top luxurious and stylish automobile producer competing with the top car producers in the world. BMW by 2000 through its class and elegance made itself actually what it claimed , ‘The ultimate driving machine.’ A style icon BMW had three brands operating under the group name , BMW which was the last contributor to the sales of automobile , MINI a remake and rebuilt version of the famous English style icon and the Rolls Royce. In the mid of 90’s the BMW group acquired the UK owned Rover. This take over did not prove a successful one at all as it brought a lot of financial damages to the group along wi th that defaming the face of the group. Along with this the size of the company and range of cars also became an issue. To tackle this issue Rover was sold. Quandt family’ the major share holder of the group applied pressure on the group to stop over 900million Euro worth of yearly losses caused by Rover. As a result the CEO resigned and a New CEO was appointed. The new CEO faced a tough situation where threat of Quandt family disposing of its share will leave the group open for Acquisition though the group was fair in size in comparison with Big 5. In 2002 Helmut Panke a nuclear physicist took the post of CEO and decided to turn the wheels by choosing aggressive approach so as to increase market share and become market leader. Factors Effecting Market There were various factors effecting the automobile marketing causing the autmobile manufactures to make a shift if strategies. The economies had been hit by recession effecting buying power of customers. Hence they’ll g o for cheaper options. To stay in the market BMW has to Reduce cost but reducing cost mean earning less marginal profits which previously was quite easy to earn. Environmental concerns: Global warming and greenhouse gases are increasing day by day, BMW cars are on petrol which is a contributor to green house gas. Geopolitical tensions: The war in the middle east and the disturbance in the rich Arab world which would be high contributors to BMW sales globally. BMW group has to look for ways to compensate for these sales. Fuel consumption and efficiency: The war in the middle east lead to fluctuations and dramatic increase in oil prices hence making the gas consumption uneconomical for most engines . Purchases in the asian markets for automobiles increased: The economy depressed in the USA and European markets where BMW sales were high but an increase in sales in Asian countries was observed. Porters 5 Forces Model 1) Competitive Rivalry The competition would grow tough as the focus w ill be on Asian markets with their already being rivals there eg Honda, Toyota, Suzuki etc Though they don’t match BMW on the class and elegance scale but these makers are much less expensive then BMW. 2) Power of suppliers There wont be no significant change but there will be more suppliers willing to negotiate terms as productions have been slowed down or cut down. 3) Power of buyers The customers will become powerful as few of them will be buyers

Essay, Consumer Psychology (Beer Industry Chosen) Essay

, Consumer Psychology (Beer Industry Chosen) - Essay Example One fact has remained steady and that is the beer consumer. In recent years, however, there has been a decline in beer consumption due to a variety of reasons, most obvious of which is the evolving consumer behaviour. This essay will identify some important and noteworthy behaviours of beer consumers that have been observed or found through literature reviews. The second section of the paper will attempt to interpret the behaviours into known consumer behaviour concepts for better understanding. The final part will convert the interpretations for the use of marketers in the development and planning of campaigns to satisfy these needs of the customers. Picture a roomful of men, sitting in front of the Sony Bravia TV to watch the latest English Premier League game, after a long, tiring day. Their wives and children are supping or sleeping peacefully at home but tonight is the boys’ night out. Somebody has just ordered Dominos pizza and the men are all sitting with camaraderie, joking and laughing loudly together. To complete this scene there is only one thing needed: beer. If we take the definition of Consumer Behaviour to be, â€Å"the decision process and physical activity individuals engage in when evaluating, acquiring, using or disposing of goods and services† (Loudon, p5), then the above, a typical scenario involving loyal beer consumers, can be broken down into distinct steps, each signifying one aspect of the consumer’s behaviour with regards to beer usage and consumption: 1. Evaluating: As the boys will get together and there will be carefree banter and fun, there has to be an activity (watching sports on a big screen TV like the Bravia), a venue (the living room), participants (all the five or six men), food (pizza by Dominos as all the ‘boys’ like it) and drink (which has to be beer). What can be derived from this is that when adults are relaxing and in the mood to have fun, they will likely want beer. 2. Acquiring: Getting