Factors that influenced BMW decline of unit sales from 1986 to 1991 in the US market.

There were many factors that influenced BMW decline of unit sales from 96,000 in 1986 to 53,000 in 1991 in the US mart.

The entrance of Japanese manufactures in the US high life auto scenario in 1989 selling reliability with determine competitiveness, an old fashioned positioning relating BMWs brand only to luxury/performance business and some economical and political events contributed to a loss of market share and image.

Environmental Analysis

Sales in US declined from 1986 jacket of 96,000 units to 53,000 in 1991. By 1991, it had declined by 24% due to the measure Reform about 10% and the Stock Market clank of October 1987, both an economic and emotional b pitiful to the luxury car market.

In general there was a change in favorable values and consumer behavior. The conspicuous consumption of the early 1980s gave off to a more value-oriented purchasing.

Despite this revolutionary consumer mentality, government actions, and the resulting declining overall market and luxury/performance segment, new competitors entered this segment reshaping it.

In 1989 the DM/ clam relationship reflected in a 24 % increase on price.

Market Analysis

In 1991 BMWs global participation in the market resulted in 60% of its automobiles being sold outside Germany and 33% outside Europe. study county presence was Germany, USA, Great Britain, Japan, Italy, and France.

With 5.6% market share in Germany and 0.



7% in US, BMW total production in 1991 was 533,000 representing 1.7% of worlds output

In 1985 11,4 million of automobiles were sold in US, in 1991 it dropped to 8.4 million.

After August 1989, BMW developed its market plan centre to basic issues: the composition of product line on the low end and the position of the price ladder overall, establishing a new strategy with focus in brand and product, franchise, and organization and people.

Customer Analysis

The...

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