Table of content

Table of content……………………………………………………………………………………………………………….. 1

Abstract………………………………………………………………………………………………………………………….. 3

Introduction…………………………………………………………………………………………………………………….. 4

The history of Bugatti……………………………………………………………………………………………………….. 4

Bugatti heritage………………………………………………………………………………………………………………… 5

The building of Bugatti……………………………………………………………………………………………………… 6

The Bugatti brand…………………………………………………………………………………………………………….. 7

Bugatti design………………………………………………………………………………………………………………….. 8

Grand Sport………………………………………………………………………………………………………………….. 8

Vitesse………………………………………………………………………………………………………………………… 9

Super sport…………………………………………………………………………………………………………………… 9

Demographics and marketing mix……………………………………………………………………………………….. 9

Bugatti Marketing Mix………………………………………………………………………………………………….. 10

Product…………………………………………………………………………………………………………………… 10

Price……………………………………………………………………………………………………………………….. 10

Place………………………………………………………………………………………………………………………. 10

Promotion……………………………………………………………………………………………………………….. 11

Consumer……………………………………………………………………………………………………………….. 11

Competition…………………………………………………………………………………………………………….. 11

Communication plan……………………………………………………………………………………………………….. 11

Advertising…………………………………………………………………………………………………………………. 12

Market expansion: The Australian Market…………………………………………………………………………… 12

Positioning and segmentation of the Australian market……………………………………………………… 13

Launching……………………………………………………………………………………………………………………… 13

Conclusion and recommendation………………………………………………………………………………………. 14

References…………………………………………………………………………………………………………………….. 15

Abstract

Bugatti automobile is known for its detailed engineering of its automobile as well as the artistic execution of its designs. The beautiful and high speed luxurious cars want to have a share of the luxurious automobile market of Australia. The Australian market is perfectly positioned for luxurious products such as Bugatti cars. The country is highly developed and is among the top 15 economies in the world. The market into segmented into three categories namely: high class, middle class and the low class. The target market for the Bugatti cars is the high class and middle class citizens and individuals in Australia who can afford the high price of the Bugatti cars. The Bugatti cars will target the following group of people in the Australian market: celebrities, dignitaries, high profile government employees such as cabinet secretaries, sport personality, business men, tourists and the ruling class.

Introduction

The Bugatti Company is a manufacturer of high performing automobiles. The company began in Molsheim. It was started by a well-known Italian car designer.   It has manufactured some of the fasted and the most exclusive cars in the world. Between 1909 and 1950s the company the fastest sport cars in the world. The company was a family based business that did not pass the test of time and collapsed in the 1950s. Lack of proper transition of its main founders contributed to its collapse. The company was faced with severe financial crisis in the 1950s as a result it stopped producing vehicles. The company was revived in the 1960s due to its great potential of airplane business. The current owner of the Bugatti brand is the Volkswagen group of companies. The company has been using the brand to produce exclusive sport cars. Limited version of some of the most exclusive and fastest high end sports car have been launched by the company.  Highly detailed designs and elegant artistic framework is the key feature that defines the Bugatti car models. The public opinion of Bugatti was highly boosted by its type55, type 57 and type 35. In 2000, next generation of Bugatti models were released into the market.  There are currently three luxurious cars that have been produced form the Bugatti brand. The Bugatti designs include: Veyron, Super sport, Grand sport and Vitesse. The brand is currently on the verge of expansion to other parts of the world such as Australia as the desire of consumers on luxurious vehicles increases. This paper is going to focus on the luxurious Bugatti brand and its effort in increasing its market share in other parts of the world such as Australia.

The history of Bugatti

Bugatti was founded in 1909 by an Italian born, Ettore Bugatti in the city of Molsheim, France which was by then under the control of the Germany Empire. The Bugatti cars were distinguished for their unique beauty. Ettore Bugatti was raised in a family of artist which greatly influenced his unique designs of automobile. He was an artist as well as a constructor. He manufactured race cars that participated in many races and won. In 1939, the only successor for Bugatti, the son of Ettore Bugatti, Jean Bugatti died putting doubt on the future of the company since there was no clear successor. To worsen this situation, Ettore Bugatti died in 1947 bringing to an end the future of Bugatti automobile. By the time Ettore Bugatti died, the company had managed to make less than 8000 cars. The company encountered financial problems in the 1950s during which it released its last model. In the 1960s its airplane parts were bought. An entrepreneur from Italy revived the company and produces limited versions of the sports cars. Currently, Bugatti brand is owned by Volkswagen which a group of automobile manufacturing company based in Germany (bugatti.com).

In 1998, the Bugatti brand was acquired by the Volkswagen AG group of automobile company. The company decided to relocate the production of the next generation of the legendary Bugatti brands of car to its original location, that is, Molsheim in Alsace. The current manufacturing only occupies a small portion of the original area whereby about 1200 workers were employed in the assembling of the classic Bugatti models. The Château Saint Jean, which has since been renovated, is the current administrative center of the Bugatti brand. The assembly of Veyron is conducted at the newly constructed oval studio.

Bugatti heritage

Bugatti automobile is known for its detailed engineering of its automobile as well as the artistic execution of its designs. The Ettore family was naturally artistic since the father of the founder, Carlo Bugatti who lived between 1856 and 1940 was an artistic carpenter and a jewelry designer. The founding father of the Bugatti has become a respected figure in the automobile engineering globally (bugatti.com).

The unique construction of Bugatti as well as the high aesthetic standards fascinated the public and generated a practically endless passion in those privileged enough to own such kind of automotive works of art.The origins of this exceptional company are essentially linked to the classic automotive era that was highly defined by the interwar years. The motor racing sport had a great influenced on the image of the Bugatti brand. Many drivers who were driving the Bugatti brand of racing cars emerged victorious.

The building of Bugatti

Bugatti family members were blessed with artistic talent as well as engineering genius that made them to develop unique automobile during their time. Giovanni Bugatti was a well-known sculptor and architecture. In the 20th century the son of Giovanni Bugatti, that is, Carlo Bugatti become internationally for the revolutionary designs of furniture made from exotic materials. The sons of Carlo Bugatti, Ettore Bugatti and Rembrandt Bugatti had engineering and designing ability. Although Ettore and Rembrant had some similar characteristics, they were very different and each person would choose a different career path. They did not follow the career path that their father had envisioned for them. While Ettore was an engineer, Rembrandt became the sculptor, the work of the letter still continues to cost highly even in the world of today. Ettore emerged as the most famous individual in the clan of Bugatti. The defining elements of Ettore’s work were the high aesthetic standards, craftsmanship and design. He is considered to the legendary engineer whose works had a great impact on the automobile industry. Jean Bugatti, who had was the only successor of the Bugatti brand died so soon putting the future of the future of the company into a crisis. Jean had the ability of carrying on with the tradition of the family applying engineering and art to make automobiles. After the world war, the family business was taken over Roland Bugatti who was the younger brother to Jean. The inability of the Bugatti to keep up with the development in the automobile industry made it to lose its stake as a major player in the world of automobile. Its legendary effect has made it not to be forgotten and it still leaves on.

The Bugatti brand

Since time immemorial Bugatti has been the Centre of elegance, extraordinary design, exclusivity, style, great passion and luxurious automobiles. The brand has a legacy of introducing legendary sport cars that often leaves a great impression on the global scene. High precision engineering is used in the development of the brand. It has a distinctive construction and manufacturing process that makes it stand out as an extraordinary brand of automobile. The logo of Bugatti brand reflects independence, individuality and the elegant character of the Bugatti automobile. It has an oval shaped pearl-framed logo containing stylish initials of the founder of the brand, Ettore Bugatti. The logo has been adorned by the Bugatti word mark since 1909. The logo is an embodiment of the brands desire to offer unique and outstanding experience to its customers. The brand values of Bugatti have been integrated into the new Bugatti automobile model known as the Veyron. Veyron was launched in 2005. It is an aesthetic master piece of engineering work. It is a perfect match for the contemporary racing cars just like its predecessors (bugatti.com).

The legacy of Bugatti can be traced back to 1901. During this period Ettore Bugatti and his son came up with a perfect framework that incorporated both art and technology giving them a clear idea on designs and construction. During the 1920s, cars made by Ettore Bugatti became the epitome of unmatched technical beauty as well as being the perfect embodiment of light construction. In the 1930s, the body works design of Bugatti had a long lasting impact on the style of body works. During this time, Ettore Bugatti manufactured type 35 car which considered being an invincible racing car that was emerged as the best during that era. In addition, Jean Bugatti also produced a two-seater car type 57SC. All these superior design are an embodiment of the genius of their creators. The history of the legendary brand surpasses its two formative engineers and designers as well as the art and technology involved. This legendary history acted as a pioneer in the automobile industry. The legacy has been passed on into the Veyron (bugatti.com).

Bugatti design

The following are new designs of Bugatti: Veyron, Super Sport, Grand Sport and Vitesse.Veyron

Veyron 16.4 brings out the best experience of two worlds. It unites the great performance of the Super Sport with the elegance of Grand sport. It is proves that intelligence and beauty can be combined to produce a master piece.

Grand Sport

This design was created with the aim of redefining boundaries of technology in the construction of automotive while at the same time appealing to the exceptional automobiles that is aesthetically inclined. This car brings together the pinnacle of luxury a great driving performance to a new level. The idea behind this design is the provision of complete enjoyment, comfort and safety. It is the fastest convertible car in the world. This brand is far much above the conventional categories and the ordinary. It has got performance, power, and self-assertion. In addition, it projects perfection, charisma and elegance

Vitesse

This design of Bugatti brand has an impressive form and function. Various aerodynamic measures have been implemented in the Vitesse. The inner part and the outer part of this car have some unique refinement. It has large air intake on its frontal end as well as two centrally located air intakes both on the right and left. Vitesse is car with an exception and a great performance. Its outer coat is made out of carbon fiber.

Super sport

The advanced motor of the sport technology as well as each and every detail on it conforms to the pioneering spirit of company founder Ettore Bugatti. The car has been externally modified to ensure greater performance. The car has a recognizable elongated silhouette.

Demographics and marketing mix

Demographics and marketing mix tools are used by marketers so as to have a greater capacity of reaching the desired target market for the product being marketed. These two marketing applications have an impact on the purchasing decision. The demographic is all about the science of a population and aims at understanding the character and dynamics of populations. An understanding of demographic coupled with marketing mix tools gives marketing the ability to reach the intended target market for a particular product. Marketers apply demographic to have a look at look at specific features of a human population. This would assist marketers in identifying products that are most wanted by a particular demographic segment. Marketing mix tools include products, promotion, place and price. The knowledge of marketing mix tools    gives marketers the ability to have a better understanding of  where in the precise demographics the product should be positioned and what factors will be used to boost greater profits. International marketing needs the application of demographics and marketing tools since they are essential tools for the expansion of Bugatti cars in the growing Australian market (SILVERSTEIN. & FISKE, 2003).

Bugatti Marketing Mix

Product

The Bugatti designs of car are exclusive and high performing automobiles. High tech manufacturing and high quality parts are used in the manufacturing of these automobiles so as to maintain their image and beauty. The cars are tailored for speed as well as beauty (Rear View Mirror, 2005)

Price

The Bugatti brands of car are designed for wealthy customers since the luxurious cars are very expensive since they portray status, image and beauty.  The price range of Bugatti is 2,250,880 MSRP, upwards of $1,250,000.

Place

The dealerships of Bugatti are mainly found in Italy and United States of America. The dealerships are characterized by high class that shows the wealth of the vehicles. The distributions of these cars are often based on the customers’ pull thereby making location to be less critical.

Promotion

Bugatti applies several promotional mechanisms to promote its products as well as its brand. It use TV, radio, internet such social media platform such as Facebook and twitter, automobile shows and magazine. Each of the above mentioned mechanism need to portray Bugatti as a top performer. The targets of the promotional tools are customers with high income, as well as the interest of the high income earners.

Consumer

The company produces products that taken people within the age range of 35 to 60 years old. The targeted consumer can be educated people probably with a university or college level education, professionals. It targeted consumer must be price sensitive.

Competition

Bugatti is facing stiff competition directly from other companies that makes exclusive auto such Porsche, Lamborghini, Mercedes, Aston Martin and Roll-Royce. The company is indirectly facing competition from other means of transport such as plane, boats and trains. Bugatti can overcome the stiff completion through the utilization of its reputation and class. The company also needs to strengthen its brand and image in the market place.

Communication plan

Bugatti will have to employ various marketing tools to communicate their plan of introducing their luxurious cars into the Australian market. Marketing comprises of various communication mix such as direct marketing, public relation, personal selling, advertising and sales promotion. Various media of communication such as mass media that comprises of magazine, newspapers, radio, television and magazines, social media, email, banners and coupons are used to market products and services (Ouwersloot & Duncan, 2008).  Since the company aims at introducing a new luxurious product into the Australian market, then the most appropriate marketing tool is advertising (KAPFERER & BASTIEN, 2013).

Advertising

Advertising refers to paid form of non-personal presentation and promotion of products, service and ideas, goods or services by a company or a sponsor. Advantages of advertisement are as follows: it is used to introduce new products into the market as well as educating the consumers about the new product; it can reach a large mass of audience at the same time; it increases the sales of products and services thereby leading to increased profitability for companies; both texts and graphics are sued to enhance the message of the ad. The cons of using advertisement as a promotional tools include the following: it is costly thereby leading to high cost of goods and services to the final consumers; it can make consumers to buy products or services they do not need; it cannot target specific type of consumers. Advertising is the most appropriate marketing strategy for introducing luxurious products into a new market (ELLIOT & PERCY, 2006).

Market expansion: The Australian Market

There is a big market for luxurious products in Australia since it is a developed country that has a large portion of its population on the high socio-economic ladder, and would mind owning the beautiful and high performing brand of the Bugatti designs. Its stylish engineering and the classic design will certainly persuade the top earners in Australia to have one of the Bugatti designs to bring a distinction in social status. Wealthy buyers who value luxury are abundant in the major Australian cities such as Sydney. The superiority of the Bugatti cars stands out from other competitors that offer luxurious cars such as Mercedes Benz and BMW and would therefore compete favorably in the market. Australia is among the top fifteen most developed nations in the world which makes it a perfect location for establishing a dealership of the Bugatti since they will certainly sell (CHEVALIER, M. & MAZZALOVO, 2008).

Positioning and segmentation of the Australian market

The Australian market is perfectly positioned for luxurious products such as Bugatti cars. The market into segmented into three categories namely: high class, middle class and the low class. The target market for the Bugatti cars is the high class and middle class citizens and individuals in Australia who can afford the high price of the Bugatti cars. for The Bugatti cars will target the following group of people in the Australian market: celebrities, dignitaries, high profile government employees such as cabinet secretaries, sport personality, business men, tourists and the ruling class (CHADHA, R. & HUSBAND, 2006).

Launching

Launching refers to the act of officially introducing new products into a new market. Luxurious cars such as Bugatti should be introduced with style and glamor. The launching of the luxurious Bugatti car can be done on the show room in Sydney, Australia, in the presence of all the stakeholders and other interested part. The cars will be assessed and tested to confirm the superiority and high performance (KYOJRA, 2004).

The new generation of high performance and luxurious Bugatti cars will officially hit the Australian market. The city of Sydney will hold a gala performance to usher the classic designs of the Bugatti automobiles. The Australia market is going to experience the high speed, unique experience and sophisticated engineering that have been the legendary mark of the Bugatti(HOYLE, 2002). The four new designs of Bugatti comprising of Veyron, Super Sport, Grand Sport and Vitesse are going to available through our dealerships in Australia. Members of the high profile public are invited to have the experience of the Bugatti (Cars for the Ultra-Rich, 2011).

Conclusion and recommendation

The move to venture into the Australian market is a good move for the Bugatti designs since Australia is a wealthy country with a big portion of its population comprising of the high class. Various marketing tools needs to be implemented to familiarize the country with the greatness and the legendary of the Bugatti cars.

References

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ELLIOT, R.  & PERCY, L. (2006) Strategic Brand Management. Edition Assouline Paris,

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Rear View Mirror: DREAM MACHINES – THIS WEEK: BUGATTI VEYRON IT’S YOUR WEEKLY GUIDE TO THE WORLD OF. (2005, September 16). The Mirror (London, England), p. 30.

SILVERSTEIN, M. & FISKE, N. (2003) Trading Up. Emerald Group Publishing Limited,

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