At this time, buyers viewed BMW an unworthy car because of high car price, and poor communication to the customers. To solve this problem, BMW should target its customers to each of the series, and deal with the price and specification to attract and maintain its customers.
The problem was that BMW was viewed by the current and prospective customers an unworthy car. The current loyal customers could not buy a new BMW car because of the increasing price of BMW car. The prospective customers decided not to choose BMW car because they couldn’t find any advantages over other brand. Moreover, some of other brands are better off so they bought others instead.
There are three reasons for this problem. First, buyers decided to choose a cheaper car because of 1987 Tax Reform Acts and stock market crash of October 1987. Buyers had to consider more than they previously did to get the most fit and valuable car. Furthermore, comparing to other car manufacturers, BMW was ranked lower in customer’s satisfaction. This showed that there was a problem in communication to the customers. Finally, BMW’s competitors, newly established Japanese luxurious brand, were famous for reliable service.
Two steps should be implemented. First, BMW should target each car’s series to its specific customers. 3-series, the cheapest car, should be targeted to working people with middle income. 7-series, the most expensive car, should be targeted to luxurious high-end buyers. Next, BMW should adjust retailed price due to trend of car buyers. For 3-series, BMW should lower car’s price along with decreasing its interior functions and exterior features to decrease the cost. On the other hand, BMW should do differently to series-7. This series was set to a luxurious customer. Everything that was given in this car must be better comparing to