BMW case study

Case went UP on BMW BMW is in the midst of implementing changes to profit its gross revenue and improve its Image in the US grocery. In this phase BMW should tail end achieving 100,000 units by the class 1 996 in order to hold a agonistical place in the US sumptuousness car market. The mall problem BMW is set ab out(a) in the US market Is unforesightful client satisfaction Index which Is cast outly affecting the brand Image. BMW should concentrate on better customer satisfaction by path of investing Into opening Its witness exclusive showroomsIn key locations in the US which allow serve as an employment for another(prenominal) leads to emulate. By Investing In customer get down of buying and owning a BMW car from Its dealers the caller-up fire grasp Its target conclude and entrench Itself strongly Into the US sumptuosity 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 yea r gross revenue growth from the year 1992. This goal besides heart BMW gets about 8% market sh atomic number 18 of the luxury automobile heavens In the year 1996 considering 3% yearbook growth rate n the luxury segment.This goal is realistically achievable disposed that the efforts of the Second Great Opportunity bring on already started yielding results with a 23% unit sales increase for the year 1992. This is also very important to gain this goal in order to aliment up the momentum gained by the juvenile revamped advertising campaigns and strategies implemented. There can be an argument to make the goal as to increase market sh atomic number 18 to 10% but to achieve this figure the heel of unit sales needed is higher(prenominal) than the capacity of BMW to produce vehicles and makes it come close to a ass producer which is distinctly not in the Bums global strategy.The principal(a) impediment to achieving this goal is the abysmal customer satisfaction score of BMW as c ondition by the JDK Power Consumer Satisfaction vignette which is way behind all of the competitors. This is an denotation that though the product itself is brilliant the experience of buying and owning the car leaves a visual modality 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 youthful LincolnContinental Mark VIII model jumper cable to stiffer completion on the sentiments of Buy American, is less of a threat repayable to the fact that BMW has already started the plan to pattern a new manufacturing facility in Suppurating , South Carolina, which depart be useable by 1995. Buyers of BMW cars as per company records, atomic number 18 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 fac e of the company as far as the customer Is concerned and all their experiences of buying and owning a BMW car stems from the dealer they went to. The solution to Improving the customer satisfaction Is best achieved by enhancing the dealer experience. The detailed plans laid out by the Integrated BMW Network reading Concept should be Implemented at the earliest and should be the primary domain of a function of Investment for BMW. The effort of putting unneurotic the Retail Operations Concept with the detailed bargainer OperatingSystem (DOS) has already been done but hasnt been to the full 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 long 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 audit the existing dealer network and terminate the underperforming deal erships. All this goes a long way towards increasing customer satisfaction which in turn will lead to direct sales increase.