In this article it talks about BMW cars including Rolls-Royce model between year 2001-2009 had to be recalled due to fault with power braking system. From what I’ve learnt in class is that for a business to run successfully marketing is a very important component. Marketing includes many components but in this article it explicitly focuses on the image of the brand after more than hundred thousands of car had to be recall.
We have learn that one of the important components in marketing is branding. BMW cars had set its brand as a premium brand. As a result of the recall, it had a direct affect on the branding of BMW, this had let to a falls in share by 4.2%. This shows that there is a direct correlation between the branding and the demand for share of BMW. Perception is very important in business, as it can mark whether the brand is successful or not. This also link to the fact that because of the recall the perception that individual may have on the company may be negative, and possibly help the rival of BMW like Mercedes to be more competitive and gain more market share.
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