Definition

Playmaker China

warning: Invalid argument supplied for foreach() in /nfs/c05/h04/mnt/78979/domains/plays2run.com/html/sites/all/themes/playmakers_standard/page.tpl.php on line 184.

Ping

Ping

Ping: PG

Definition

An oblique reference or suggestion, enabled either by a player's mere presence in a marketplace or its implied interest in topics, ideas, events, and developments.

Screen

Screen

Screen: SN

Definition

The attempt by a player to borrow issues, ideas, events, or other symbolic references to advance its agenda or thwart a competitor's movements.

The Luxury Automobile Race

BMW Increases its Presence in China

What plays can I run to beat back Audi?

In July 2009, China surpassed the United Kingdom in number of millionaires for the first time. And with all this discretionary cash, people want to show off their new-found wealth.  Not surprisingly, where there's profit to be made, there are plays being run, especially in the luxury-car industry.

BMW sales are good in China, but consumers are hinting with Pings and their pocketbooks that they may be looking for something different.  BMWs are associated with the nouveau riche, a Screen that the company may need to shed if it's going to gain market share.  Some customers are indicating that they are looking to associate with other brands such as Audi, a brand which is bought by those who come from old-money and those who work for the government.

With Audi selling more cars than BMW can produce -- and with negative connotation working against it -- the folks at Bayerische Motoren Werke will need to adjust their strategy.  The question is, which tack will they take:

  • Will it run a safe Recasts and Filters and persuade consumers that BMWs are more desirable because they are less available?
  • Or will BMW employ more savvy stratagems and create a premise to lure its German rival into an unwinnable debate, perhaps through a Bait or a clever Red Herring?

This playmaker thinks that if BMW were smart, it'd do both.

Posted by:  Alice Hu

Photo Credit:  mibiz.com

 

Comments

Comm483 post

I agree that implementing all four plays can't hurt, but I woul emphasize recasts and filters. The entire issue is image, so BMW needs to alter its image to be more desirable in the Chinese market. BMW needs to provide luxuries that Audi does not and represent itself as progressive and tehrefore better as opposed to "new money" versus the favored "old money."  BMW needs to make new money more favorable.

COMM 483 post

BMW is a well-established leader in the luxury car industry and has been a status symbol for decades. Also, the new millionaires in China are likely to be technology-savvy. Thus, I think that as part of their first move, BMW should recast Audi's attempts to break into the market by implying that it is too available, and thus not as much of a status symbol. Also, BMW should filter information about its cars' features, revealing details about the newest in-car technology to appeal to the tech-driven market in China.

As part of its second strategy, BMW could bait Audi by challenging their qualities in an ad, directly listing the BMW's superiorities over the Audi. This could also serve as a Red Herring by halting Audi's ad campaign so that they can quickly respond to BMW's Bait move.

BMW

I agree with the Playmaker that BMW should attempt to use both approaches. While BMW should certainly try to use their limited supply as an advantage, I do not think this in itself would be enough to persuade the people of China away from the Audi.  BMW should create a PR/marketing plan that will force its competitors to react in a way they don't want to have to.

Comm 483 - Dorie Sanders

 In this instance I don't know that a Bait would work.  I think a Red Herring would catch the attention of the Chinese public.  Perhaps the company could create a CRS targeted to a cause important in China. 

Recast/Filter could be risky

I would be slightly hesitant to run a recast and filter in this situation. BMW intends to distance itself from Audi, but the company must be careful not to categorize consumers as materialistic, elitist, etc. Their campaign should be carefully worded to not imply negative connotations about car buyers. However, I am in agreement that a combination of the two plays would be most effective.

COMM483

I think that BMW would greatly benefit from running the recast and filter plays to create a sense of mystery with consumers.  This could create a sense of excitement with new and different information being introduced.  The bait strategy seems to be more dishonest than not.  Luring consumers against their will is not as successful to me as creating exciting new ways to draw interest honestly.  They should perhaps examine Audi's strategies and research their target audiences to find the best ways to attract new buyers.  Overall, BMW needs to reexamine their current strategies compared to other successful players and determine what ways they can change to benefit their company.

comm483

I would agree with the playmaker that BMW needs to do both. They are at an obvious disadvantage now that they are seeing reducing sales and need to use all strategies available to make this change. Shedding their image should be goal number one. Having a stigma is never a good thing, especially in a competitive market. BMW must try and compete with companies like Audi on the same level otherwise its no competition at all. Their focus needs to be on the new upper class audience and their wants for a high-end car.

COMM483 Student Post

I agree with this playmaker that BMW should incorporate a little of both tactics into their planning and brand reinvention in China.  I think it is both important to position your brand in comparison to others as well as determine which features are most coveted by consumers and highlight them.  With less BMW's being manufactured, it definitely helps to make them more desirable and BMW can use that to their advantage.  In addition, no car or brand is perfect and there are always opportunities to take another brands negative and turn it into your positive.

COMM 483

I believe that BMW should try to persuade Chinese customers that they are more desiarbale because they are less available.  Customers want what they can not have, and this will increase the demand for BMW.  

A red- herring might also be a smart way to get consumer attention.  Associating with another car company such as Audi might be difficult, and i do not believe that it would give BMW the competetive advantage it needs. 

comm483

I feel that it would be smartest for BMW to run safe Recasts and Filters as opposed to Bait or Red Herring. Provoking Audi with action intended to draw an emotional response could backfire for BMW. Perhaps Chinese consumers would see through this tactic of BMW and therefore be further induced to purchase Audis. Even though it is the safer route, I feel that Recasts and Filters are the way to go for BMW to attempt to persuade consumers that BMWs are more desirable because they are less available. When it comes to luxury items, the harder it is to get or more elusive the product is, the more popular that product tends to be for consumers. When an expensive item has a waiting list or is difficult to find, consumers compete to purchase the item and it becomes a status symbol. In my opinion, this could easily happen with BMWs in China. If everyone begins to buy Audis and Audis are too available, then consumers may gravitate to BMW to be different and more exclusive.

Recast and Filter is the best way to go

After reading this blog post regarding BMW sales in China and what will be their next course of action in maintaining their high sales against rival competitor Audi, I think that BMW would benefit the most by implementing just a Recast and Filter play, instead of also through a Bait or Red Herring play. China as surpassed the United Kingdom in number of millionaires and therefore, people want to show off their new- found wealth and be able to have things that the common person is unable to buy. Hence, by BMW taking the Recast and Filter route in its strategic approach, it will allow BMW to bend the fact that Audi is selling more cars than BMW can produce and show case that there are less BMW’s available and if you buy one, you will be one of the few who have one. Also, BMW could use the Recast tactic by using the phrase “old money,” which Audi is associated with, and instead using it with a negative connotation. BMW could tell consumers that BMW represents hip and edgy luxury but with the classic BMW style and image. This could sway consumers to want to disassociate with the “old money” style of Audi and instead drive a “new money” classic.  
 

Highlight BMW's leverage over Audi

 I don't think persuading consumers that BMWs are more desirable because they are less available is going to work. If BMW wanted to do this, they should have conducted a press campaign, before the cars were released in the market, that they were making a limited amount.

However, BMW does have a few points of leverage over Audi. BMW can use a Red Herring to pull itself in front of Audi in the Chinese population's eyes through its leverage points. It could even use a Peacock to highlight these points of leverage. For example, BMW offers 50 different vehicles, which is way more than the 19 models that Audi offers. BMW's 3-series, compared to the Audi A4, has more horsepower. Also Audi has only recently gained its fame and popularity. BMW has had a more credible reputation with consumers. BMW should focus on itself and its range of models.