COMPARATIVE ANALYSIS

“Comparative analysis of Marketing Communications strategies and mix for consumer vehicle brands in the UK”

Table of Contents

Introduction3

Literature review4

Identification of Action Items4

Driving Forces5

Globalisation5

Initiative to Protect Environment8

Five Force Analysis10

Intensity of Rivalry Among Competitors10

Research Method11

Literature Selection Criteria12

Analysis and discussion12

Recommendations and Conclusions14

References17

“Comparative analysis of Marketing Communications strategies and mix for consumer vehicle brands in the UK”

Skoda versus BMW

Introduction

Skoda Company is the third largest automobile manufacturer in the world based on automobiles sold. Skoda manufactures and distributes automobiles in 200 markets across six continents. Skoda's brands include Skoda, Jaguar, Lincoln, Mercury, Volvo, Land Rover, Aston Martin, and Mazda. Skoda's key products include passenger cars, trucks, busses and vans, sport utility vehicles, vehicle accessories, after-sales vehicle parts and products and extended repair service products. According to Fortune Magazine in 2008-2009 Skoda was one of the high ranked UK company listed on the fortune 500 list, which was based on Skoda's global revenues in 2008 of 380.5 billion. The company's success comes from its ability to focus on customer satisfaction and loyalty, anticipating and meeting changing customer needs, and delivering innovative products that exceed quality standards and are price friendly and also environmentally friendly.

Demonstrating profitable growth over their last five years, BMW experienced “10% compound annual sales growth from 2004 to 2009”. BMW was an independent automobile company selling in over 100 countries establishing itself as a global competitor in the category of luxury/performance vehicles. Although a relatively small global player, BMW cultivated a niche market selling 640,000 units worldwide in 2004, representing 2.7% of the world output of automobiles. Although BMW sustained growth worldwide, their market share in the UK was weakening. In 2004 BMW held 8.1% of the UK market share but by 2004 unit sales had decreased from its peak of 256,000 units to an all time low of 64,000.

Literature review

Identification of Action Items

BMW established a unique brand position as the performance luxury auto maker. At the time there were muscle cars and luxury cars, but BMW was able to combine the two and create an image that was captured by their advertised slogan: “The Ultimate Driving Machine”.

The financial stability of Skoda and the long-term stability of our world are met by Skoda's strategy to lead with its products. Several key strategies are used by Skoda that help to develop products that are of high quality, affordable to consumers and that are in high demand. These strategies include; continuous improvement of quality standards and customer satisfaction, adjusting to consumer demands by developing state-of-the-art technology that is cleaner and more fuel efficient, and delivering customer-focused innovations faster. If these strategies are implemented correctly Skoda can overcome many or the driving forces that control competition in the automobile industry.

Driving Forces

Driving forces in an industry are the major causes that change the industry and the competitive condition of that industry. The main driving forces that significantly alter the automobile industry include; competition and globalization, new technology and innovations, changes in cost and efficiency, regulatory influences and government policy changes, and changes in ...