Bmw Taps the Emerging Chinese Luxury Market
Essay Preview: Bmw Taps the Emerging Chinese Luxury Market
Report this essay
BMW Taps the Emerging Chinese Luxury Market(#1 -)(a.) Where Luxury product such as, the BMW cars might fulfill the needs of the Chinese population, because of their growing economy, the increase of credit availability, and greater purchasing power it is becoming more common to show off their social status they need to purchase luxurious items. By buying a BMW the average Chinese person joins an elite group of people that already own a BMW and would identify with other BMW owners. This is a great way to promote the product in a collectivist culture such as, China where they should position the product in a way that it is an acceptance of a group.(b.) Based on the studies and analysis done by Ivanna Casaburi on the behavior of Luxury brands. In the late 1970’s the government of China began passing a series of laws that served for the rapid growth of economy that began to boom in the 1990’s, when china began to prioritize the personal income of the Chinese individual, which brought back many of the concepts of consumption and individualism. (Casaburi, 2008). This is where china witness a rapid growth of consumption and started to crave and want the luxury goods.(#2 -)This ad focuses on the futuristic China that developers want to move towards. They want to have an electric or hybrid feel to the vehicles along with focusing on bettering the environment, which can be seen in the advertisement with the modern technology look of the buildings along with the green pastures. The theme of the advertisement is the future and it being a more “green” future without losing the touch of technology.[pic 1][pic 2][pic 3][pic 4](# 3 i)(a.) The car for Chinese consumers who have never owned one would be a type of discontinuous innovation, this is because cars are being implemented at a rapid pace as being the main mode of transportation. Currently there are 50 cars per 1000 citizens in China, yet the Chinese auto market is still the largest in the world, outstripping the US by roughly 40% and is estimated to have a growth of about 400-500 cars per 1000 citizens by the year 2030 (Hawkins, D. I., & Mothersbaugh, D. L. (2013).
(b.) Current car owners in China fall under two categories of adoption these categories are the Innovators and Early Adopters in respect to the “Innovation Adoption Curve of Rogers.” Innovators are the brave people who are willing to initiate the change to a new innovation. They ae important because essentially they are the trend setters and start the trend of using cars as the main mode of transportation. The Early Adopters are the respectable people who follow in the footsteps of the Innovators. They are the influential people who help the Innovators influence others by trying out the new innovation, in a careful way, to continue the trend and promote the car as to other innovations. (Management, 2016)(c.) In retrospect it looks like the cars in the Chinese auto market have a high likelihood to grow. Table 7-3 refers to the “Innovation Analysis and Diffusion Enhancement Strategies” some strategies that BMW can use to increase sales include, targeting innovators within a group, choosing the proper media to reach all deciders, using extensive advertisement showing the importance and benefits of driving a BMW, having lower priced models and redesigned products to influence car buyers that it is affordable to own a BMW and their unique design, targeting visible events when appropriate such as showing new models at car shows, and lastly by promoting free test drives of their cars to early adopters to show the benefits the cars have and how luxurious they are. (Hawkins, D. I., & Mothersbaugh, D. L. (2013).