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Daimler/Bmw Essay

658 words - 3 pages

Running Head: Daimler/BMW – A New Breed of Driver

Daimler/BMW – A New Breed of Driver

Louis Rodriguez

Jones International University

Prof. Sheldon Wayman

Daimler/BMW – A New Breed of Driver

Discuss environmental factors related to population that are changing the way certain people approach car buying and are thus creating new market segments.

It starts with car ownership in many of the largest cities throughout the world has recently been flat or in decline, as major urban cities like Tokyo, New York, and London expected to see declines of car owners per capita over the next 15 years. (Case Study Chapter 4 CourseMate) Reasons just like Tokyo, New York, and London overcrowding is an issue in many cities mentioned and therefore population of new buyers expect businesses such as car rental and car sellers to address environmental influence on new products and ...view middle of the document...

Drivers who use the car sharing are attracted to the program because of it is affordability and as stated in CourseMate Chapter 4 Car-sharing services cater to this demographic particularly well, as they provide the practical aspects of car use without the financial burdens of ownership. They also provide flexibility to customer based on his or her needs at a time. Examples are the convenience it provides for low income households; it enables the use of their money for other area of needs instead of spending most of their resources on one car payment. Therefore car sharing programs that are offered by car rental companies and BMW/Daimler offer a great opportunity for this emerging group of drivers.

How are automakers using car-sharing programs to cater to customers’ component lifestyles?

As stated in CourseMate Chapter 4 car sharing companies offer a lot of flexibility in usage to its customers including one way travel, the opportunity for customer to avoid late return fees by extending reservations, as when the driver might be stuck in a traffic jam and not be able to get the vehicle back on time. Daimler’s car2go service allows for one-way travel as well; drivers are not required to bring the car back to where they found it. But we also have to consider the importance of the demographics of Germany as discussed in the case study. In our country this type of program may only work in the New York Metropolitan areas. Cities like New York who has many citizens and overcrowding issues, we also have to consider that a car is still a status symbol in many sections of the society and it may take a little while to gain more acceptances in certain environment. Daimler can target markets like college going students who can't afford a car but may need it for certain occasions and maybe even housewives who may have just temporary use or cannot afford new car expenses. In the end what may work in areas or countries like Germany may only work in certain areas in the U.S., but still companies such as BMW/Daimler can still through PEST gain proper marketing that can make it work.

References

Coursemate Chapter 4 Daimler/BMW- A New Breed of Driver http://college.cengage.com/coursemate/marketing/lamb_9781285092508/student/cases/chapter_cases/mktg7_ch04_se_cases.pdf

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