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Bmw Case Study

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BMW TAPS THE EMERGING CHINESE LUXURY MARKET
1) There is often a natural tendency to assume that in collectivist cultures such as that in China, luxury products would not be popular.
a) Explain how luxury products such as the BMW automobile might fulfill needs even within the traditional collectivist value set of China.
Luxury products and brands are important to consumers in both individualistic and collectivistic cultures.   The changes in traditional values are happening in developing countries such as China, particularly among the wealthy, young, urban set. Thus, companies can and do successfully use self-expressive and individualistic marketing messages even within China. Thus, when promoting products in a collectivist country such as China, marketers will often have to position the product as a path to acceptance in an in-group.
b) Explain other factors that might be driving the desire for luxury in China.
As China’s prevalence in the global economy grows, the average earnings of Chinese workers are also increasing. Chinese workers have seen double-digit growth in their earnings in recent years. Along with this greater purchasing power has come a desire for more consumers good and services. Beyond a growing economy and incomes, several other factors are contributing to greater automobile ownership in China including the following factors;
  * Increasing availability of credit
  * Expanding automobile dealer networks
  * Widespread road construction in rural areas
  * Greater purchase ability due to higher savings
2) Develop a sample advertisement for BMW in China. Include the major theme, the key copy points, and the visual that you would utilize. Explain and defend your choices based on the case and materials in Chapter 2.
It is to be chosen to target a younger upscale urban consumer may argue that individualistic values prevail. Ad themes and copy points would need to reflect this value set.
5) BMW and other foreign automakers are...

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