BMW case study

Case went 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 course of instruction 1 996 in order to hold a competitive sic in the US luxury railcar market. The m wholly problem BMW is facing in the US market Is poor customer merriment Index which Is negatively affecting the brand Image. BMW should concent regularise on Improving customer satisfaction by centering of investing Into opening Its own exclusive showroomsIn primal locations in the US which willing serve as an example for other(a) dealers to emulate. By Investing In customer experience of buying and owning a BMW car from Its dealers the company can procure Its target goal and impinge 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 19 92. This goal in like manner means BMW gets about 8% market share of the luxury locomote sector In the year 1996 considering 3% annual growth rate n the luxury segment.This goal is realistically achievable given over that the efforts of the spot Great Opportunity have already started yielding results with a 23% unit sales increase for the year 1992. This is also very great to have this goal in order to keep up the neural impulse gained by the recent revamped advertising campaigns and strategies implemented. There can be an production line to make the goal as to increase market share to 10% exclusively to achieve this figure the number of unit sales undeniable is higher than the capacity of BMW to produce vehicles and makes it come close to a foot producer which is clearly not in the Bums global strategy.The primary confirmation to achieving this goal is the abysmal customer satisfaction score of BMW as given by the JDK Power Consumer Satisfaction Survey which is way behin d all of the competitors. This is an indication that though the product itself is brilliant the experience of buying and owning the car leaves a lot to be desired which directly means lesser sales. It sets a trend of negative feedback on the brand image and impacts sales growth. The other impediment of the introduction the new LincolnContinental Mark VIII modeling leading to stiffer completion on the sentiments of Buy American, is less of a threat due to the fact that BMW has already started the plan to build a new manufacturing facility in Suppurating , South Carolina, which will be available by 1995. Buyers of BMW cars as per company records, are from the younger age bracket and are very demanding customers, which directly means that they are harder to satisfy. The primary place of Interaction for a customer Is the dealerships and franchises.They are the face of the company as far as the customer Is concerned and all their experiences of buying and owning a BMW car stems from t he dealer they went to. The solution to Improving the customer satisfaction Is opera hat achieved by enhancing the dealer experience. The detailed plans situated out by the integrated BMW Network Development Concept should be Implemented at the earliest and should be the primary area of Investment for BMW. The effort of putting together the Retail Operations Concept with the detailed Dealer OperatingSystem (DOS) has already been done but hasnt been fully implemented yet. BMW across US which can serve as the showpiece of how a showroom and dealer should function as laid out by the DOS. This will go a coarse way into establishing best practices among the dealers and introduce uniformity in customer experience as the other dealers follow the example set by BMW. Also they should visit the existing dealer network and terminate the underperforming dealerships. All this goes a long way towards increasing customer satisfaction which in turn will lead to direct sales increase.