Lincoln automobiles, the luxury car division of the Ford Motor Company has fallen on hard times in recent years. Over the decade from 2000 to 2010, Lincoln fell from the top-selling luxury brand in the U.S. all the way down to number eight. Further many consumers who buy luxury cars such as Lexus, BMW, Mercedes-Benz, and even Cadillac never consider purchasing a Lincoln product. Ford is now looking to revive and rejuvenate its Lincoln division to position it as a real competitor to the current foreign and domestic luxury cars. But Ford believes achieving this new upgraded position involves not just introducing better and more exciting cars; there is also a channel problem—too many Lincoln dealers and too few that have the kind of upscale facilities and service capabilities that can provide the kind of customer experience luxury automobile buyers expect. Ford estimates that it will need to cut some 200 dealers from the current 1,200 and that many of the remaining dealers will have to spend something in the neighborhood of $2 million each to upgrade their dealerships. Discuss the concept of the “customer experience” in terms of the role played by the product versus the channels through which it is sold.
Answer to relevant QuestionsNespresso, a division of Nestle’s SA, pioneered the development of the single serving coffee ma chine in 1986. By 2009, Nespresso had achieved sales of over $2.6 billion with double-digit growth projected for the next ...Discuss the difficulties involved in attempting to choose an optimal channel structure. Briefly describe the major categories of variables that should be considered when evaluating alternative channel structures. Chrysler Group LLC. and Fiat SpA announced that they would partner to bring the subcompact Fiat 500 to be sold in the U.S. sometime in 2011. The Fiat 500 will be positioned as a direct competitor to BMW AG’s Mini Cooper. ...What are some of the specific incentives that the manufacturer can use to secure channel members?
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