Bugatti (Veyron) Marketing – Case Study Example
BUGATTI This report examines the of marketing the Bugatti Veyron, from two marketing principles, looking at how the Bugatti Veyron’s marketing satisfies various value propositions, profit considerations, and competitive positioning. The first principle is regarding uniqueness of services. This means that the product being presented must somehow be special and differentiated. The second principle is regarding competition, which is related to the first principle, but also includes an external focus as it impacts Bugatti’s own marketing and targeting demographics.
In terms of uniqueness of services, the Veyron is being billed as an exclusive automobile, almost as if to own one is being a member of a club. People who can afford the Veyron, which is priced in a way that makes premium pricing seem somewhat of an understatement, are looking for an item that signifies a strong impression of individuality. The Veyron’s marketing seeks to take advantage of this by proposing that its product is one of the fastest, if not the fastest, car available for purchase. Having limited numbers of the product with extensive options, which Bugatti has done with the Veyron and convertible, also adds to uniqueness of services, or the perception that the product is one-of-a-kind.
The second principle is competition. Bugatti here is not dealing with competition in the ways we normally think of the automotive industry, for example an Audi competing with a Volkswagen, by offering a better value. When the price tag of an automobile goes up into the hundreds of thousands, and then millions, saving a few hundred dollars for the same amount of seats, or having more cup-holders, or being more cost-effective with fuel, no longer is the yardstick used. Bugatti is essentially competing with the Veryon with two types of competition: high-end sports cars, such as Ferrari, Lotus, Saleen, etc.,; also, they are competing with high-end luxury cars such as Rolls-Royce and Bentley. All of these companies can afford to offer premium pricing.
Market positioning (2009). http://www.determan.net/Michele/mposition.htm