According to figure 2, retrieved from National Statistics, it is clear that automotive industry is definitely profitable, with 84% people travel by car every day. Figure 1 did not point out this fact because most of the interviewees are student, who prefer to travel by public transport more than own a car, but still, 30% people think that car is essential and 30% is not a low figure. Figure 3 showed that in average price’s cars market, Skoda and BMW do not have a big different in owning the market shares, Skoda has 1. 37% and BMW has 4%, therefore, people might think that Skoda is a well-known brand.
However, in figure 4, 90% of interviewees said they know nothing about Skoda and even do not know the existence of Skoda, only 10% of interviewees, in my record, are from the age group 31-40 years old, know about Skoda. This fact strongly point out that Skoda is completely beaten by BMW in young generation market. Branding is highly related to the marketing communication because it has the power to express meaning of company brand. According to figure 5, it is clear that brand is the main factor that affects customers’ decision, it showed that the customers’ decisions are based on memories of impressions of particular car.
Therefore, a powerful brand can easily convince consumers to choose its products. The position of brand is a strong differentiation factor, especially among the main players. Refer to figure 4, BMW gained the highest brand identity comparing with Skoda, and therefore, BMW is strong enough to resist customers switching campaigns of other competitors such as Skoda… The interactive nature of the Internet leads to a higher degree of customer involvement when customers are visiting a web site. The Internet has tremendous potential to attract attention and interest among customers.
Moreover internet can be used to communicate other elements of the promotional mix including advertising, direct marketing, sales promotion, and public relations. Websites are available by BMW and Skoda, which have been visited by the most are BMW and followed by Skoda refer to figure 6. BMW ads an interactive website contains lots of information about the company as well as different car’s models. Its website also has some catchy video advertisements about BMW’s products. Moreover, in its official website, customers can customize their BMW’s car based on their own preferences.
In comparison, Skoda’s website also has an interactive website which is much smaller and less attractive than BMW’s website, the Skoda’s website holds little information about the company. Advertising – any paid form of non-personal communication about an organization, product, service, or idea by an identified sponsor to create, maintain, brand awareness. (Frances B. ; Stephen P. ,2005) According to the survey I made, most of the interviewees’ response that the most memorable advert campaign of BMW is the launching campaign of BMW Z4 model.
However, none of them heard of Skoda advertisement, it showed that Skoda does not apply Advertising as a promotional tool. Since BMW founded in 1916, the German car’s company has been using lots of unique and creative photos about their cars’ beauty and performance, in order to attract people’s attention (refer to the photos in appendix). In 1986, the advertising agency WRCS has signed a contract with BMW to develop adverts for BMW’s cars. All adverts for BMW focus on BMW’s brand values (BMWeducation, 2009).
The slogan has been used fiercely by BMW and Skoda, they have created their own slogan whenever there are promotion events which help to enhance the effectiveness of the advertisements (Refer the Slogans in Appendix)Also, Skoda has signed a contract with the advertising agency Fallon and put lots of capital in advertising campaign in order to stimulate sales. In 2003, Skoda launched a i?? 3 million advertising television campaign, which moves on the brand proposition from the multi-award winning “It’s a Skoda. Honest” to “Skoda. It might earn you more respect than you think. “(Carpages, 2003).