The appearance of BMW trace back to 1913. The firm specified in airliner machines but Rapp found that they were problematical and practiced from excessive vibration. Near, Gustav Otto, also an plane expert, set up his own workshop, Gustav, creating insignificant airliner.
When customer identify with specific brand and has emotional attachment they form a psychological attachment and relationship with the brand and try tell those thing of the brand which he/she like and work instinctively to the benefit of the brand (Kuenzel & halliday, 2010). Thomson et al, (2005) argued that brand identification such as brand attachment, brand connection and bond with brand, has strongly predicts the frequency of past and future purchase of the brand. The intense relation and attachment also drives consumer toward the benefit of the brand by purchasing the specific brand. Kuenzel et al. (2010) identify that the brand identification concept is built on social identity theory in which consumer are engaged with the brand and extensively of the brand concept in other self-restraints. Identification based on social identity theory is in core a perception of oneness with a group of persons and make an identity in marketing we can also say that customer make their brand as an identity of their self-mean people identify someone with their brand (Albert et al., 2013). The customers who they uses the brand and they emotionally attached to the brand make the brand their identity, those customer called evangelist.. Stronger brand identification with consumer disposed to emotional attachment in pro-brand activities. Their self as an evangelist with the brand and also with the manufacturer (Bhattacharya &Sen,
Nevertheless, it must “defend” its current market share if not increase it, by maintaining premium quality and develop innovative products. The marketing mix strategies will effectively achieve targeted revenue and profitability in the near future.
Historically, CarMax had used mass marketing, like broadcasting and mass promotion, for growing its brand value. Now with the CMO’s vision, they have great opportunity to create value through personalised experience using analytics. Using information, provided by customers through website or mobile app, to help them have better personalized experience. Customers nowadays do a lot of online research before going to a store and using that information, keeping those researched cars ready when they reach the store. This personalization gives CarMax a great push. (Eric Krell,
BMW having high market share in European and U.S luxury car markets, started facing issues with launch product qualities and also facing a fierce competition from Japanese producers. Currently the market share was still stable but the rigorous growth of Japanese producers would affect BMW in future. These Japanese competitors had set higher standards of conformance.
Differentiation: by focusing on those activities associated with core competencies and capabilities in order to perform them better than do competitors. The key point of this strategy is to create something that customers feel as being unique.
Where there is rapid growth comes increased competition; similarities in products across manufacturers have reduced brand differentiation across the board. The problem now is the severe rise of copycat companies and manufacturers that copy designs and speciﬁcations of cars, and proceed to undercut the original manufacturer’s proﬁt margins. So to improve their brand standing, every manufacturer’s individually have resort...
According to the Harley Davidson case study, the author has mentioned Harley Davidson uses the differentiation strategy: focus strategy for their business level strategy. This is, the focus strategy is an integrated set of actions taken to produce goods or services that serve the needs of a particular competition segment. Thus, by using the focus strategy for their business level strategy, it can help Harley Davidson to build strong brand recognition for their products. Harley Davidson believes that they understand the dynamics of their market and the unique needs of customers within it very well. Since they serve their customers in their market uniquely well, they tend to build strong brand loyalty amongst their customers. As a result, they
Toyota’s uses both differentiation and low cost as generic strategies to try and gain a competitive advantage over their competitors in the automotive industry. The market scope that Toyota uses is a broad one that encompasses nearly every type of customer that is in the market to purchase an automobile. Toyota is able to target such a large market because they have something for everyone. Toyota has four wheel drive trucks and SUVs for the outdoor types or those who live in areas that face severe weather conditions, hybrid models like the Prius for the eco-friendly customers that are interested in saving the environment, along with the standard cars for general, everyday use. Additionally, Toyota provides vehicles for all price ranges.
Innovation is an ever-continuing question in many industries and its players. In order remain competitive; players have to constantly figure out new innovative capabilities. The automobile industry is one where there is many innovation occurring. Innovation can be spotted at different levels of price level, different geographic regions, and different type of vehicles. As automotive industry relies heavily on technology, many of the source and cause of innovation come from technological development. However, this is also much innovation that arises from the administrative portion of an automotive company. This could relate to how cars are sold to the end consumer.