Bmw Position In Uk Market

The most competitive consumer arena in the business world entails convincing the public to purchase a particular brand of vehicle. The decisions as to which model are a function of income, affordability and personal preferences, wants, needs or desires, however this portion of the equation is rendered moot unless the brand has been sold. More than in any other consumer area, the 'image' of a brand is a selling point that is generally accomplished years, even decades, before the actual purchase is made. In the automotive industry what a person drives is not indicative of what a person wants (or would like to drive). As is the case with most purchases, it is determined by the consumer's ability to afford the item, which is usually the primary consideration. Once that part of the equation has been determined (affordability) either by demographics (income) - credit - down payment - lease - etc., then other considerations such as needs (meaning if the purchase is to be a primary or secondary vehicle, and whether family [meaning children] are a part of this equation]), functionality, style, performance, re-sale value, as well as a number of other factors having a bearing on the final decision.

The question of the overall economic outlook, on a personal as well as global basis, is the larger parameter preceding the aforementioned brand decision. For some individuals the status of the current or future economic situation is not a boundary or inhibitor to purchase, however for the majority of consumers their perception of the stability of the economy, their jobs, finances, interest rates, along with other demographic and psychographic considerations do play a role in either price, method (purchase or lease), as well as timing (when they will or are considering obtaining a new vehicle).

In contrast to the decisions that consumers mull over in determining what vehicle to purchase, the decision(s) of an automotive manufacturer must correctly analyze competitor trends, traits, styles, pricing strategies, market preferences, technological innovations, emission legislation, performance, fuel mileage, and hundreds of other factors to design and field a vehicle at the right time, in the right market, for the right cluster of consumers. Not an easy task when it takes approximately 36 to 48 months to design a new vehicle and approximately 24 to 36 months to engineer changes to existing model lines. Meaning, automobile manufacturers basically have one chance to get it right, or suffer through a year of poor sales for a particular model and the resulting damage to their reputation in a unforgiving consumer and business market. This is compounded by the excellent reputation for innovation, technologically advanced vehicles, performance, and quality which the public perceives from vehicles made by Bavarian Motor Works (Bayerische Motoren Werke).

To get it right BMW had to correctly analyze over four years ago the state of global economics for 2005, the British economy, consumer confidence levels, competitive models - styles - pricing - features - performance - standard options - luxury options - colors - interior design and a multitude of other considerations. And all of the foregoing is made even more difficult as BMW is a premier marquee and as a leader of the pack, everyone is watching as well as analyzing your every move, looking for an opening or when you show a vulnerability. The market niche which BMW actually created, sport sedan vehicle, is the most competitive arena with almost every manufacturer fielding a 'sporty, or sports oriented' model in their line up. BMW's pricing puts it squarely in the largest combinations of consumer demographics spanning Ð'Ј18,000 on through Ð'Ј100,000 as a result of its broad model range.

Chapter 1 - Introduction

1.1 Research Objectives

In order to properly analyze whether or not the launch of the BMW 1 series and revised 3 series will aid the company to improve its position in the United Kingdom market, a broad range of variables will need to be reviewed in order to reach a determination of the prospect(s) for success. Factors such as; 1.

Global Economic Conditions for 2005 2.

United Kingdom Economic Conditions for 2005 3.

United Kingdom Consumer Confidence Forecasts for 2005 4.

Environmental Factors for 2005,

are key contributing elements in analyzing BMW's introduction strategy concerning the launch of these new models. Examination of these areas will provide the foundation via which to analyze market forces.

1.2 Company Background

BMW's history, in terms of the United Kingdom, extends back to