BMW targeting Lexus in showrooms
04-12-07, 06:27 PM
#32
04-12-07, 06:47 PM
#33
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I'd LMAO if Lexus came out with free maintenance in the near future. They may not "NEED" it, but they may decide that it'd be nice marketing tool (the same way that BMW did).
You just described 99% of the people in the United States, regardless of the car they own. For the most part, all cars will go a long time without much more than regular oil changes.
04-12-07, 07:00 PM
#34
Lexus Connoisseur
I find the ad funny because the local BMW dealership here in my area charges for loaner vehicles whereas the Lexus dealers have courtesy loaners available free of charge, sometimes even free gas depending on the facility. The going rate at the BMW dealer closest to my area charges $25/day rate + extras. The only reason why I know this is because my work territory has a BMW dealership service dept I visit about once a month for a customer's claim. It's sad to see service bays full of cars with motors, transmissions and wiring harnesses already pulled out of them, and these cars range from a variety 3, 5, 7 series that are less than 5 years old. Not putting BMW down in anyway, but it seems to be more of a common sight in comparison to a Lexus garage.
I think the smart buyer will know the difference, especially if they plan to keep their car longer than 4 yrs or drive more than 50k miles in it's service life. I gotta admit, the marketing scheme is slick. For those that keep their car within that 4yr/50k mile time slot...this maybe a win win for them. But as far as frequency of taking their vehicle in for service, it will be a matter of which car will stay out of the service dept longest, other than the regular scheduled maintenance.
I think the smart buyer will know the difference, especially if they plan to keep their car longer than 4 yrs or drive more than 50k miles in it's service life. I gotta admit, the marketing scheme is slick. For those that keep their car within that 4yr/50k mile time slot...this maybe a win win for them. But as far as frequency of taking their vehicle in for service, it will be a matter of which car will stay out of the service dept longest, other than the regular scheduled maintenance.
Last edited by flipside909; 04-12-07 at 07:09 PM.
04-12-07, 07:22 PM
#35
Guys, as Mike, and others have mentioned, there is no reason to turn this into a personal issue. We are debating marketing methods, not eachother, or which is superior to the other.
PLEASE refrain from personal attacks.
Now, on with my post...
The reason I am very surprised is that when a company uses this tactic, like BK vs. Mc donolds... it hints that they acknowledge the other brand is more mainstream, and its an attempt to peruse customers of another brand to jump ship. Fine when your papa's Pizza taking on Pizza hut... etc.
Now in luxury items like expensive watches, cars, clothing... usually companies refrain from this, because its almost like they are admitting that they are attempting to steal customers, rather then portraying themselves as a leading company within their industry (with product that sell themselves). Do you guys see what I mean?
I’m astounded because BMW is a SERIOUS prestigious brand, with serious credentials, (whether some of us want to admit it or not... BMW is one of the most profitable and successful companies out there) and I’m just astonished they would resort to such tactic.
PLEASE refrain from personal attacks.
Now, on with my post...
The reason I am very surprised is that when a company uses this tactic, like BK vs. Mc donolds... it hints that they acknowledge the other brand is more mainstream, and its an attempt to peruse customers of another brand to jump ship. Fine when your papa's Pizza taking on Pizza hut... etc.
Now in luxury items like expensive watches, cars, clothing... usually companies refrain from this, because its almost like they are admitting that they are attempting to steal customers, rather then portraying themselves as a leading company within their industry (with product that sell themselves). Do you guys see what I mean?
I’m astounded because BMW is a SERIOUS prestigious brand, with serious credentials, (whether some of us want to admit it or not... BMW is one of the most profitable and successful companies out there) and I’m just astonished they would resort to such tactic.
04-12-07, 08:19 PM
#37
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I recently saw this ad the last time I was at the BMW dealer. While I found it funny, I also found it very true.
I used to have two Lexus vehicles and I used to dread taking them in for service. The dealer's maintenance program was always different than the manufacturers. I even had the dealer threaten my wife (by calling out a mechanic) and telling her that if she did not change the trans fluid at 15K she would not qualify for any good will on her trans down the road. My wife asked them to point to the area of the manual that called for the trans fluid at 15K and they told her the manual was confusing and she just didn't understand it. Condescending? Lexus? Never! (My wife is also a Mechanical Engineer - but I digress).
Worse, when you told them to do only what was in the manual, you broke their "package" deal and suddenly individual items were more expensive or they could not figure out how to price it (true stories boys).
Today with my BMW, the light comes on; I take it in for service. There are no calls saying "we found this issue and it will cost more" - everything is covered. Yes, this was included in the price of the car - and I'm glad to pay for it - just for the peace of mind in knowing the dealer is not going to try and screw me again.
Remember, Audi and MB used to offer the same service - they no longer do. Don't kid yourself, BMW does not have to do this and they are not "resorting" to it - they have done it for a long time and their customers LOVE IT. Lexus would be wise to consider the same thing, although something tells me they might be less generous with the loaners and the showrooms might drop a notch in luxury when you start taking all this money out of the dealers pockets...
Oh yea, I forgot, I am the target audience for both manufacturers and this is a selling point for me - of note you can add it with Audi, you pay for it, but just having this ability puts Audi on my list....Lexus are you listening?
I used to have two Lexus vehicles and I used to dread taking them in for service. The dealer's maintenance program was always different than the manufacturers. I even had the dealer threaten my wife (by calling out a mechanic) and telling her that if she did not change the trans fluid at 15K she would not qualify for any good will on her trans down the road. My wife asked them to point to the area of the manual that called for the trans fluid at 15K and they told her the manual was confusing and she just didn't understand it. Condescending? Lexus? Never! (My wife is also a Mechanical Engineer - but I digress).
Worse, when you told them to do only what was in the manual, you broke their "package" deal and suddenly individual items were more expensive or they could not figure out how to price it (true stories boys).
Today with my BMW, the light comes on; I take it in for service. There are no calls saying "we found this issue and it will cost more" - everything is covered. Yes, this was included in the price of the car - and I'm glad to pay for it - just for the peace of mind in knowing the dealer is not going to try and screw me again.
Remember, Audi and MB used to offer the same service - they no longer do. Don't kid yourself, BMW does not have to do this and they are not "resorting" to it - they have done it for a long time and their customers LOVE IT. Lexus would be wise to consider the same thing, although something tells me they might be less generous with the loaners and the showrooms might drop a notch in luxury when you start taking all this money out of the dealers pockets...
Oh yea, I forgot, I am the target audience for both manufacturers and this is a selling point for me - of note you can add it with Audi, you pay for it, but just having this ability puts Audi on my list....Lexus are you listening?
04-12-07, 08:20 PM
#38
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Posts: n/a
Guys, as Mike, and others have mentioned, there is no reason to turn this into a personal issue. We are debating marketing methods, not eachother, or which is superior to the other.
PLEASE refrain from personal attacks.
Now, on with my post...
The reason I am very surprised is that when a company uses this tactic, like BK vs. Mc donolds... it hints that they acknowledge the other brand is more mainstream, and its an attempt to peruse customers of another brand to jump ship. Fine when your papa's Pizza taking on Pizza hut... etc.
Now in luxury items like expensive watches, cars, clothing... usually companies refrain from this, because its almost like they are admitting that they are attempting to steal customers, rather then portraying themselves as a leading company within their industry (with product that sell themselves). Do you guys see what I mean?
I’m astounded because BMW is a SERIOUS prestigious brand, with serious credentials, (whether some of us want to admit it or not... BMW is one of the most profitable and successful companies out there) and I’m just astonished they would resort to such tactic.
PLEASE refrain from personal attacks.
Now, on with my post...
The reason I am very surprised is that when a company uses this tactic, like BK vs. Mc donolds... it hints that they acknowledge the other brand is more mainstream, and its an attempt to peruse customers of another brand to jump ship. Fine when your papa's Pizza taking on Pizza hut... etc.
Now in luxury items like expensive watches, cars, clothing... usually companies refrain from this, because its almost like they are admitting that they are attempting to steal customers, rather then portraying themselves as a leading company within their industry (with product that sell themselves). Do you guys see what I mean?
I’m astounded because BMW is a SERIOUS prestigious brand, with serious credentials, (whether some of us want to admit it or not... BMW is one of the most profitable and successful companies out there) and I’m just astonished they would resort to such tactic.
Also, we should not generalize or sterotype people b/c of the car they buy. Maybe say "in my EXPERIENCE" all _____ owners are ______.
I've met Lexus and BMW cool people and Lexus and BMW turds.
04-12-07, 08:59 PM
#39
Lexus Fanatic
iTrader: (20)
04-12-07, 09:12 PM
#40
Lexus Connoisseur
I recently saw this ad the last time I was at the BMW dealer. While I found it funny, I also found it very true.
I used to have two Lexus vehicles and I used to dread taking them in for service. The dealer's maintenance program was always different than the manufacturers. I even had the dealer threaten my wife (by calling out a mechanic) and telling her that if she did not change the trans fluid at 15K she would not qualify for any good will on her trans down the road. My wife asked them to point to the area of the manual that called for the trans fluid at 15K and they told her the manual was confusing and she just didn't understand it. Condescending? Lexus? Never! (My wife is also a Mechanical Engineer - but I digress).
Worse, when you told them to do only what was in the manual, you broke their "package" deal and suddenly individual items were more expensive or they could not figure out how to price it (true stories boys).
Today with my BMW, the light comes on; I take it in for service. There are no calls saying "we found this issue and it will cost more" - everything is covered. Yes, this was included in the price of the car - and I'm glad to pay for it - just for the peace of mind in knowing the dealer is not going to try and screw me again.
Remember, Audi and MB used to offer the same service - they no longer do. Don't kid yourself, BMW does not have to do this and they are not "resorting" to it - they have done it for a long time and their customers LOVE IT. Lexus would be wise to consider the same thing, although something tells me they might be less generous with the loaners and the showrooms might drop a notch in luxury when you start taking all this money out of the dealers pockets...
Oh yea, I forgot, I am the target audience for both manufacturers and this is a selling point for me - of note you can add it with Audi, you pay for it, but just having this ability puts Audi on my list....Lexus are you listening?
I used to have two Lexus vehicles and I used to dread taking them in for service. The dealer's maintenance program was always different than the manufacturers. I even had the dealer threaten my wife (by calling out a mechanic) and telling her that if she did not change the trans fluid at 15K she would not qualify for any good will on her trans down the road. My wife asked them to point to the area of the manual that called for the trans fluid at 15K and they told her the manual was confusing and she just didn't understand it. Condescending? Lexus? Never! (My wife is also a Mechanical Engineer - but I digress).
Worse, when you told them to do only what was in the manual, you broke their "package" deal and suddenly individual items were more expensive or they could not figure out how to price it (true stories boys).
Today with my BMW, the light comes on; I take it in for service. There are no calls saying "we found this issue and it will cost more" - everything is covered. Yes, this was included in the price of the car - and I'm glad to pay for it - just for the peace of mind in knowing the dealer is not going to try and screw me again.
Remember, Audi and MB used to offer the same service - they no longer do. Don't kid yourself, BMW does not have to do this and they are not "resorting" to it - they have done it for a long time and their customers LOVE IT. Lexus would be wise to consider the same thing, although something tells me they might be less generous with the loaners and the showrooms might drop a notch in luxury when you start taking all this money out of the dealers pockets...
Oh yea, I forgot, I am the target audience for both manufacturers and this is a selling point for me - of note you can add it with Audi, you pay for it, but just having this ability puts Audi on my list....Lexus are you listening?
04-13-07, 12:33 AM
#42
Lexus Test Driver
there are bad seeds that drive all kinds of cars, it's not good to generalize now is it?
04-13-07, 12:58 AM
#43
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BMW has and has had signs up that tout their free maintenance compared to many makes, including Lexus, Acura, Jaguar, Mercedes, Audi, Volvo, etc. This one ad happens to mention Lexus. Let's not make a big to-do about nothing, fellas. It's meant to point out a competitive advantage, however minor you might think it to be, and to do so in a funny way. That they picked Lexus for this particular ad doesn't really mean much to me. If anything, take it as a compliment. 
04-13-07, 01:02 AM
#44
So free maintenance, the highest incentives of any luxury brand, and subsidized leases is what they offer. You begin to question how desireable the cars really are, since they have to use these methods to sell them.
Funny thing is before BANGLE, they didn't NEED such ways to get customers.
Funny thing is before BANGLE, they didn't NEED such ways to get customers.
04-13-07, 01:03 AM
#45
BMW Says Sales Rose 5 Percent in 2006
From Associated Press
January 26, 2007 7:43 AM EST
BERLIN - German automaker BMW AG said Friday 2006 sales rose 5 percent to 49 billion euros ($63.59 billion), beating analysts' forecasts.
Analysts had forecast on average a 4.7 percent rise over 2005's 46.7 billion euros.
The total number of BMW, Mini and Rolls-Royce brand vehicles delivered to customers increased 3.5 percent to 1,373,970 units, the company said.
"2006 has been the best financial year in the company's history," Chief Executive Norbert Reithofer said in a statement.
BMW reiterated its earnings target for fiscal 2006, saying that higher volumes and internal efficiency improvements should offset the adverse effects of foreign exchange rates and higher raw material prices.
"We remain confident that we will be able to post record pretax earnings of 4 billion euros ($5.19 billion) for 2006," Reithofer said.
BMW will publish earnings in March.
The company expects to sell more than 1.4 million cars in 2007.
BMW shares opened the day in Frankfurt trading at 45.99 euros ($59.69).
----------------------------------------------------------------------------
FRANKFURT (Reuters) - BMW's revenue rose by 5 percent to a record 49 billion euros ($63.6 billion) in 2006, it said on Friday, reaffirming that its 2006 pretax earnings would hit 4 billion euros.
BMW had already announced that 2006 unit sales rose 3.5 percent to just over 1.37 million BMW, Mini and Rolls-Royce cars, securing its position as the world's largest premium carmaker ahead of DaimlerChrysler's Mercedes Car Group.
During the Detroit car show this month, sales and marketing chief Michael Ganal nudged the group's 2007 sales target of 1.4 million units up a bit, telling reporters he was confident it could exceed that goal.
On Friday, BMW reiterated that it would sell more than 1.4 million units this year.
"The BMW Group is heading toward a new sales volume record in 2007," Norbert Reithofer, chairman of BMW's management board, said in a statement on Friday.
"We want to maintain our position in the current year as the number one manufacturer in the premium segment. All three brands should achieve new sales volume records."
The last time that BMW reported a decline in annual group vehicle deliveries was 2001, when the Mini first hit showrooms in the second half and also the group's first year following the sale of the Rover and Land Rover brands in 2000.
BMW's top-selling car remains the BMW 3 Series family, whose sales rose 17.1 percent last year to 508,498 vehicles -- 43 percent of BMW brand sales. That was followed by the BMW 5 Series car, the small BMW 1 Series car and the X3 sport utility vehicle.
In Detroit, Ganal had declined to say whether earnings growth would keep pace this year. Pre-tax profit was nearly 3.29 billion euros in 2005.
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From Associated Press
January 26, 2007 7:43 AM EST
BERLIN - German automaker BMW AG said Friday 2006 sales rose 5 percent to 49 billion euros ($63.59 billion), beating analysts' forecasts.
Analysts had forecast on average a 4.7 percent rise over 2005's 46.7 billion euros.
The total number of BMW, Mini and Rolls-Royce brand vehicles delivered to customers increased 3.5 percent to 1,373,970 units, the company said.
"2006 has been the best financial year in the company's history," Chief Executive Norbert Reithofer said in a statement.
BMW reiterated its earnings target for fiscal 2006, saying that higher volumes and internal efficiency improvements should offset the adverse effects of foreign exchange rates and higher raw material prices.
"We remain confident that we will be able to post record pretax earnings of 4 billion euros ($5.19 billion) for 2006," Reithofer said.
BMW will publish earnings in March.
The company expects to sell more than 1.4 million cars in 2007.
BMW shares opened the day in Frankfurt trading at 45.99 euros ($59.69).
----------------------------------------------------------------------------
FRANKFURT (Reuters) - BMW's revenue rose by 5 percent to a record 49 billion euros ($63.6 billion) in 2006, it said on Friday, reaffirming that its 2006 pretax earnings would hit 4 billion euros.
BMW had already announced that 2006 unit sales rose 3.5 percent to just over 1.37 million BMW, Mini and Rolls-Royce cars, securing its position as the world's largest premium carmaker ahead of DaimlerChrysler's Mercedes Car Group.
During the Detroit car show this month, sales and marketing chief Michael Ganal nudged the group's 2007 sales target of 1.4 million units up a bit, telling reporters he was confident it could exceed that goal.
On Friday, BMW reiterated that it would sell more than 1.4 million units this year.
"The BMW Group is heading toward a new sales volume record in 2007," Norbert Reithofer, chairman of BMW's management board, said in a statement on Friday.
"We want to maintain our position in the current year as the number one manufacturer in the premium segment. All three brands should achieve new sales volume records."
The last time that BMW reported a decline in annual group vehicle deliveries was 2001, when the Mini first hit showrooms in the second half and also the group's first year following the sale of the Rover and Land Rover brands in 2000.
BMW's top-selling car remains the BMW 3 Series family, whose sales rose 17.1 percent last year to 508,498 vehicles -- 43 percent of BMW brand sales. That was followed by the BMW 5 Series car, the small BMW 1 Series car and the X3 sport utility vehicle.
In Detroit, Ganal had declined to say whether earnings growth would keep pace this year. Pre-tax profit was nearly 3.29 billion euros in 2005.
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