BMW AG (Bried Description Of The Company) Assignment

BMW AG (Bried Description Of The Company) - Assignment Example 4. M sport exhausts system installation on BMW 650i Coupe or BMW 650I convertible models. M sport exhaust system, which is a motor-racing inspired device, helps in reducing the exhaust backpressure and assist the acoustics of the V8 power unit when the vehicle accelerates or decelerates (Bragman 1). The new 6-series cars aims at providing high motor racing cars with a driver assistant system features of 5-series model. The new model would be relevant for use during spring. Since the extensions aims at improving the features of 5-series that already exist, the production fits line extension strategy. Line extension strategy is advantageous to the company because of its low cost and risks involved compared to conventional strategies such as creation of new brands in the same line. Economic advantage of line extension informs the decision by BMW group to advance from its 5 to 6 Series Models. Marketers can speculate and predict future trends in sales of extended brands compared to innovative brands newly introduced in into the market. BMW group’s decision to advance its BMW and MINI models was effective in increasing sales and heightening competitive edge for its rival companies in the industry. Existing consumer awareness renders brand extension as viable strategy compared to introduction of new brands in the market. It is easier to create awareness and imagery for extended brand than brands that are new in the market. Extended brands have associations with the main brand and, therefore, easier to market that new brands. BMW group’s decision to extend its brand from 5 to 6 Series is feasible because it enhanced promotion of extended brand based on consumers’ knowledge of the main brand. Consumer trust on the main brand renders it easier to market extended brands compared to new brands. Extensions benefit from existing consumer trust. Consumers have high likelihood of trying extended brands

Financial and Management Accounting Essay Example | Topics and Well Written Essays - 3000 words

Financial and Management Accounting - Essay Example The franchised hotels performed amazingly in the recent year. The occupancy levels are found to be 72% for the whole previous year and the occupancy levels in the second half of the previous year the rate was 79% (DeFond and Hung, 2003). There was a lower occupancy on Sundays. The average of ADR was observed to be  £34 in the financial year and it further increased in the second half of the year to  £36. Intercontinental (IHG) group is a global hotel company whose objective is to create excellent hotels that guests find irresistible. The group is found to hold a strong market position with increasing market share and growth. Total gross revenue of IHGs has increased to 6% and is observed to be $23 billion. The group’s revenue has decreased to 2% that is $1858 million (Nissim and Penman, 2001). The operating profit of the group has decreased by 3% and is observed to be $651 million. There has been 10% increase in dividend of the group as compared to previous year. The key performance indicators (KPI) examine the group’s success in achieving growth strategy. KPI’s such as the net room supply has increased to 710,295, growth in fee revenues has increased by 6.7% and the total gross revenue from hotels under IHG group has increased to $22 billion. The system contribution to revenue has also elevated by 71% in the current year (Carslaw and Mills, 2006). Easy Hotels owned hotel rooms have mounted in the past three years and the revenue also has gradually increased. The hotel group has implemented key marketing initiatives with digital and customer service focus and is successfully competing with other hotels (Lewellen, 2004). In spite of such performance, the company is facing the threat of increasing competition and oversupply of identical accommodation types within a city. The hotel is also facing operating risks such as increase in operating costs due to inflation (Feng and Wang, 2000). The hotel employed the opportunities to create extended term