Here's announcing an overwhelming Enterprise opportunity: Replace the the old version of a 5 series and you could win an amazing market share
-Market is flourishing with middle or high range cars and the competition is vast
-Competition is top seeded(3A segment)- Either opt for a Renault or Safrane or even better the Mercedes for E Class
-Audi 100 Traditional competitor is synonymous to the E Class(People Carriers). This E Class was launched in June 1995, 6 months prior to the launch of the new 5 series
-The E Class launch took place on 5th December 1995 and the sales objective was equal to 11000 cars(2 times the sales of the old 5 series)
[...] Press campaigns Theme : dreams and achievement Shift to a TV advertising ? Press files realization and send them to 600 journalists Direct marketing Local concerted advertisement by the concessionaires Create an insurance service, as the one already existing in the B2B, and extend it to B2C The product strategy Means of action and calendar • Product reveal: -Presentation to the distribution network to explain the positioning -Events for after-sale officials, tradesmen, and people responsible for separate parts and accessories • Formation seminaries • Catalogues (insist on a low cost of ownership and our services to avoid representative network development) and posters setting. [...]
[...] BMW 5 series launch General presentation • Enterprise opportunity : to replace the old version of 5 series and win market shares • Market of middle or high range cars • Competition class (3A segment) : Renault's Safrane, Mercedes' Classe Audi 100 • Traditional competitor = Classe launched in June months before the new 5 series • Launch on 5th December • Sales objectives = cars times the sales of the old 5 series) BMW France in 1994 • Since 1990, the sales in volume of BMW France have been decreasing • Since 1990, the profit increased from 21 to 34 Million euros • In 1994, BMW France sold cars = of market share in volume • Large products range, but slow evolution Problematic • How to efficiently maintain or increase a market share in a competitive market, launching a semi-new product ? • How to change customer intimacy with advertising ? Our Plan I. [...]
[...] Growing importance of B2B • High potential in the diesel car market: In of the 5 series buyers asked for a diesel . The demand Three criteria under purchase : – Services quality (mobility needs a constant assistance, after-sale services, protection against stealing) – Economical aspect (purchase price + cost of ownership) – Social status (club, values, communication mode) The competition Market penetration • Low market share of the 5 series(7%) in the competition class – Renault's Safrane market share, leader on the segment) – Mercedes' Classe E market share) – Peugeot's 605 market share) – Citroen's XM market share) – 5 series market share) – Audi 100 market share) The competition Comparative analysis • Higher awareness level and better image than the Classe E and Audi 100, but it is decreasing • High fidelity and conquest levels but lower than the Classe E The competition Competitors' commercial strategy in comparison with the Série 5 • Renault's Safrane : same price range, image of comfort and quality + social acceptation. [...]
[...] Development strategies and action plan The product strategy The adequacy between product and market – Services quality : a constant assistance – Economical aspect : low purchase price + low cost of ownership – Social status : prestige image to renew • An issue : huge discrepancy between customers' perception before use and final satisfaction The product strategy Positioning • BMW equals specialized brand in the middle/high range berline • Quality operator • Since ever characteristics equals dynamism, innovation and prestige • Security concern plus driving pleasure • 10% cheaper than Mercedes secure BMW robust The product strategy Declared target, in comparison with the E Class • B to B to B : 95% men of them are married and 75% have no or one single child • 45-year-old men hard to please experts • Citizen of them living in Paris • High educated • Very active businessmen (liberal professions, CEOs) or retired people The product strategy Price strategy • 10% cheaper than Mercedes • High price (but low cost of ownership) • As price competition is not an option, and as to maintain our high fidelity level, we should keep the same price range than before. The product strategy • • • • • • • • Promotion 3.5 to 4 Million euros planned. [...]
[...] Development strategies and action plan I. The market The environment • • • • • • Constant sales in the car sector in France Insurance and gas oil price are very high On an average, one new model is released with respect to the competition class every year 67% of the car sold under the 5 series class are diesel The brand image, the name and its perception are very important Two distribution channels by concessionaires and agents The demand General characteristics • 2,5 million of cars sold in France in 1994 • New speed limit regulation slows the purchase of sport cars down • Opportunity in the professional market ? [...]
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