Thursday, August 29, 2019

BMW AG (Bried Description Of The Company) Assignment

BMW AG (Bried Description Of The Company) - Assignment Example 4. M sport exhausts system installation on BMW 650i Coupe or BMW 650I convertible models. M sport exhaust system, which is a motor-racing inspired device, helps in reducing the exhaust backpressure and assist the acoustics of the V8 power unit when the vehicle accelerates or decelerates (Bragman 1). The new 6-series cars aims at providing high motor racing cars with a driver assistant system features of 5-series model. The new model would be relevant for use during spring. Since the extensions aims at improving the features of 5-series that already exist, the production fits line extension strategy. Line extension strategy is advantageous to the company because of its low cost and risks involved compared to conventional strategies such as creation of new brands in the same line. Economic advantage of line extension informs the decision by BMW group to advance from its 5 to 6 Series Models. Marketers can speculate and predict future trends in sales of extended brands compared to innovative brands newly introduced in into the market. BMW group’s decision to advance its BMW and MINI models was effective in increasing sales and heightening competitive edge for its rival companies in the industry. Existing consumer awareness renders brand extension as viable strategy compared to introduction of new brands in the market. It is easier to create awareness and imagery for extended brand than brands that are new in the market. Extended brands have associations with the main brand and, therefore, easier to market that new brands. BMW group’s decision to extend its brand from 5 to 6 Series is feasible because it enhanced promotion of extended brand based on consumers’ knowledge of the main brand. Consumer trust on the main brand renders it easier to market extended brands compared to new brands. Extensions benefit from existing consumer trust. Consumers have high likelihood of trying extended brands

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