BMW case study
Case Write UP on BMW
BMW is in the midst of implementing changes to increase its sales and improve its image in the US market. In this phase BMW should target achieving 100,000 units by the year 1996 in order to hold a competitive place in the US luxury car market. The main problem BMW is facing in the US market is poor customer satisfaction index which is negatively affecting the brand image. BMW should concentrate on improving customer satisfaction by way of investing into opening its own exclusive showrooms in key locations in the US which will serve as an example for other dealers to emulate. By investing in customer experience of buying and owning a BMW car from its dealers the company can achieve its target goal and entrench itself strongly into the US luxury car market.
The goal BMW should strive to achieve is to sell 100,000 units by end of the year 1996 which translates to about 10% year on year sales growth from the year 1992. This goal also means BMW gets about 8% market share of the luxury automobile sector in the year 1996 considering 3% annual growth rate in the luxury segment. This goal is realistically achievable given that the efforts of the ‘Second Great Opportunity’ have already started yielding results with a 23% unit sales increase for the year 1992. This is also very important to have this goal in order to keep up the momentum gained by the recent revamped advertising campaigns and strategies implemented. There can be an argument to make the goal as to increase market share to 10% but to achieve this figure the number of unit sales needed is higher than the capacity of BMW to produce vehicles and makes it come close to a mass producer which is clearly not in the BMW’s global strategy.
The primary impediment to achieving this goal is the abysmal customer satisfaction score of BMW as given by the JD Power Consumer Satisfaction Survey which is way behind all of the competitors. This is an indication that though the product itself is
BMW is in the midst of implementing changes to increase its sales and improve its image in the US market. In this phase BMW should target achieving 100,000 units by the year 1996 in order to hold a competitive place in the US luxury car market. The main problem BMW is facing in the US market is poor customer satisfaction index which is negatively affecting the brand image. BMW should concentrate on improving customer satisfaction by way of investing into opening its own exclusive showrooms in key locations in the US which will serve as an example for other dealers to emulate. By investing in customer experience of buying and owning a BMW car from its dealers the company can achieve its target goal and entrench itself strongly into the US luxury car market.
The goal BMW should strive to achieve is to sell 100,000 units by end of the year 1996 which translates to about 10% year on year sales growth from the year 1992. This goal also means BMW gets about 8% market share of the luxury automobile sector in the year 1996 considering 3% annual growth rate in the luxury segment. This goal is realistically achievable given that the efforts of the ‘Second Great Opportunity’ have already started yielding results with a 23% unit sales increase for the year 1992. This is also very important to have this goal in order to keep up the momentum gained by the recent revamped advertising campaigns and strategies implemented. There can be an argument to make the goal as to increase market share to 10% but to achieve this figure the number of unit sales needed is higher than the capacity of BMW to produce vehicles and makes it come close to a mass producer which is clearly not in the BMW’s global strategy.
The primary impediment to achieving this goal is the abysmal customer satisfaction score of BMW as given by the JD Power Consumer Satisfaction Survey which is way behind all of the competitors. This is an indication that though the product itself is