In order to target their young customer, the company places ads on Spotify as the young market is mainly technology oriented, this is the reason BMW has choose to promote their product on Spotify (Stalder, 2011). The brand has created power image which can be experienced and shares by all car lovers all around the globe as a sign of luxury, performance and power, all joined into power packed machines which are treat to drive, possess and watch. Majority of BMW’s product targets the creative and affluent class that prefers to spend more in BMW products, showcasing how they feel about the brand and what it stands for. This is the reason why is it known as ‘Ultimate Driving
Market are segmented in order to make it easier for businesses to target these segments according to the features and habits they exhibit. These segments must be definable, specific, profitable, and is has room to grow. The following outlines the segmentation for the market of Mercedes Benz broken down into demographic, behavioral and psychographic segmentation. Demographic Segmentation: Markets can be segmented by geography where the business would market its offering towards individuals living in a certain area. For example developed countries will be more likely to buy a Mercedes than still developing countries.
For example, a person achieves with a goal of making the world a better place can go for a hybrid instead of petrol or diesel versions. Behavioural segmentation Lastly, another segmentation is Behavioural. Behavioural segmentation divides buyers into groups based on their information, manner or loyalty. For example, people who have a successful career and wants a modern car and for the most of the individual that purchase a BMW for its distinctive reasons such as quality and value for
Normally, companies do not want to cut their targeted return and they follow the strategy which is formulated in to the cost + profit = selling price. But Toyota takes a slightly different strategy which is formulated in to the price-cost=profit. Strategic management has a direct impact on its business in all organizations. That 's why Toyota has become leading company in auto industry because of the attractive strategic management policy. Now, Toyota plans to build training centers in different parts of the world, where they can easily train their new workers and managers how to design new cars and assemble them.
For interior of the cars, BMW’s company choose high quality materials to gives the passenger and the driver comfortable feelings and also an enjoyment along their trip. For sure all of this come with high prices that the company must face on. 2. Weak Brand Portfolio Too many and tough competition with other companies that also a well known automobile such as Mercedes, Audi and other else. For this company, its only target for luxury market segment that only target for the elite class.
The Toyota aims on producing vehicles that has good quality, high performance and reasonable price. But when the Toyota saw the potential growth of the luxury car, it started launching a new brand, named Lexus, targeting customers having higher financial conditions and demanding for the experience of the fully equipped and more comfortable car. However, there is a great threat for all of the current automotive lines including the Toyota’s production lines, which is used car. Since a Toyota car usually has quite long life, it is sold and bought through several owners hence this fact may lead to a threatening drop in sales of the Toyota overall. With price lower than the price a new car, used cars have become the most considerable choice for low and middle income families.
Cars technology is not only used as a way of impacting our lives but also to provide a more safe and convenient environment for transportation and even as a way of making profits for various companies. In this paper, I argue that there has been various advancement in car technology and those technologies have impacted the society both positively and negatively. There has been a massive dependency on the fast advancing technology by the society as a way of making people’s lives and those of others comfortable. People are happy about the continued growth of the car technology and the use of these cars in carrying out our day to day activities such as means of transport to work, hospital, school or transportation of goods from various places to our destinations. With the continued advancement in the car technology, the urge to provide efficient, cheap and safer cars cannot be avoided.
This production and logistics systems within the individual BMW Group locations provides advantages for the customer. The largest benefit is better efficiency in the provide of creation materials support to make faster the delivery of cars and motorbikes to customers also each plant making its own commitment to the smooth operation of the global production network. The worldwide plants are actually making a lot of profits for BMW. For instance, during the 2009, the BMW Group sold approximately 1.29 million cars and more than 87,000 motorbikes worldwide. The profit before calculating tax for 2009 was euro 413 million, revenues totaled euro 50.68 billion.
It also relies on their brand names for attracting customers and maintaining customer loyalty. Mercedes is known by the market for producing safe cars which have the latest technology. Mercedes is also famous for manufacturing environmentally friendly cars. The motivation, product differentiation and the comparative advantage theories have explained the strategies and reasons for success for Mercedes. It is important for the automakers to embrace new market trends in order to ensure that it enjoy profitability in the long run.
Therefore, as an industry leader according to Volkswagen the group (2016) innovative technologies, highly qualified staff with extra -ordinary skills and environmentally sustainable automobiles is the core competencies that provide Volkswagen with the competitive edge over its competitor. Although these core competencies are what identifies the company and distinguish it from its competitor’s highly qualified staff and extra -ordinary skill seems to be the most important competency of the company. This is because innovation and environmentally sustainable automobiles are powered through the bright and intelligent minds of the company’s employees. These talented and skilled employees provide Volkswagen with access to a variety of markets thus significantly contributing to the technological innovations of the products making it difficult for competitors to imitate. According to Volkswagen openings (2016) without highly qualified staff possessing extraordinary skills, Volkswagen would have no