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Threats and Recommendation of BMW

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    Threats and recommendations of BMW: In this part, this report will focus on the discussion of BMW’ threats of brand equity, and contrapose the threats give some recommendations. Additionally, there are some considerations in brand equity that is a series of capital and liabilities related to a brand’s name and logo that plus or minus the value provided by a product or service to a group or that group’s customers (David A. Aaker, 1996) of BMW and is includes the BMW’ awareness, BMW’s recall, BMW’s image and BMW’s knowledge.

    Next, this paragraph will discuss emphatically the threats of brand equity of BMW in China market: Firstly, there is a consideration about the threats of BMW’s awareness that is a well-known brand in the worldwide; however, the imports of cars and local BMW were sold in Chinese market. Additionally, the domestic BMW is not same as imported BMW in the technology and quality (Wei, Y. 2012). Moreover, there are others who have good brand equity no matter the global companies or local manufactures, which have entered into Chinese market.

    Nowadays, Mercedes and Audi are as the biggest foreign capital enterprises in China, which have similar experience and history with BMW. However, those companies have excessed BMW in the areas of model design, technology and cost in recent years (Reiter C. , 2011). Then, there is a threat of brand equity from local manufactures. Some of Chinese factories yield the cars with the more advance technology, and sell the cars with a lower price; even the target positing can suit a number of customers.

    However, BMW is also suffer from a problem that is the local companies plagiarize the model, for example, the company double rings copy the BMW’ model X1 (Wei, Y, 2012). In addition, the brand recalled influenced the market in 2010, although it was the obligation of BMW, there are 120,000 cars exist security risks. Some customers lose confidents for BMW (Wei, Y, 2012). Actually, the brand image of BMW is not good in china because the position tends to young and rich people who often do not obey with the traffic rules (Wei, Y.

    2012). Moreover, it is important to research and develop new energy used by BMW’s cars because the price of flue is too high. Other companies and local groups such as Toyota and Honda have developed and researched the hybrid that mixes the flue and electricity. At last, BMW general require high level flue to express the cars, however, consumers would not like to take more money on the consumption of fuel. Recommendations:

    First of all, the situation of BMW is not better than its competitors no matter the international competitors or Chinese local competitors. In China, there were words that is “Drive BMW, seat Benz”, there is a difference between them, people believe BMW pays attention to the pleasure of driver and Benz focus on the expression of enjoyable and luxurious. Additionally, Audi general was purchased as the government and officer’s cars. However, its price is the same as Benz. So there is a suggestion that BMW should posit the price between the Benz and Audi.

    Secondly, BMW needs to know the Chinese consumers to establish a new user interface and it also needs consider the process of design to reduce the cost and keep on the quality especially in some hard occasions. Moreover, BMW should keep on improving the I-drive system which is not only good for driving, but also contributing in comfort and luxurious level. In addition, it is also important to develop its subsidiaries-MINI and Rolls Royce. MINI is very popular in China and it is loved by a majority of young people (Atiyeh, C, 2013).

    There is a suggestion that MINI could design some China special commemorative models to attract more eye balls. At last, BMW should support the products to suit the current environment demands that the products use the greener flue and R&D new types of engine to reduce the air pollution. Although BMW invest unsuccessfully a mount of money in this new-tech, it insists because of the obligation. Reference: 1. Atiyeh, C. (2013). Counter BMW 5-Series kit is an easy sell in China. 2. Anoymous. (2012). BMW Auto Business News. 3. Eric, N. B. (1997). Marketing (pp. 736). 4. Johnson, G.

    , & Kevan, S. (1999). Exploring corporate strategy. London; New York; Prentice Hall Europe. 5. Kreitner, R. , & Kinicki, A. (Eds. ). (1998). Organizational behavior. Boston, Mass: Irwin/McGraw-Hill. 6. Reiter, C. (2011). BMW Plants Defy Recession Threats. from http://www. bloomberg. com/news/2011-09-09/bmw-plants-defy-recession-threats. html 7. Wei, Y. (2012). How do reference groups influence self-brand connections among Chinese consumers? Implications for advertising. Jouranal of advertising, 41(2), 39. 8. David A. Aaker. (1996). Building strong brands, New York: Free Press.

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