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Marketing 3430 Strategic Analysis

Amanda Sanders

on 6 April 2011

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Transcript of Bombardier

Table of Contents
1. Introduction
2. Commercial
3. History Lesson
4. Sales & Marketing Performance
5. SWOT Analysis
6. Marketing Strategy Analysis
7. World Presence
8. CSR
9. Conclusion
10. Recommendations History of Bombardier Today’s Bombardier grew out of a young mechanic’s inventive genius and entrepreneurial spirit.
In 1937, J.-Armand achieves his first major commercial success with the launch of the seven-passenger B7 snowmobile. 1942 L’Auto-Neige Bombardier Limitée Is Born
1949 Transforming Challenges into Opportunities
http://www.youtube.com/watch?v=GJtVPWFo3uI 1959 Snowmobiling: A Brand-New Industry
Joseph-Armand Bombardier never abandons his dream of inventing the perfect personal snowmobile
His persistent experimentation eventually spawns a brand-new industry: snowmobiling
1959, he launches his world-famous Ski-Doo 1964 The End of an Era
Joseph-Armand Bombardier dies in 1964, leaving behind a healthy and financially sound company.
1974 Venturing into Mass Transit http://archives.cbc.ca/economy_business/manufacturing/clips/1992/ 1982 Leadership in Rail Transportation
1986 Taking to the Skies. Bombardier expands in Europe.
1988 Sea-Doo Personal Watercraft Launch
1989 Moving into European Aerospace 1990 Becoming the World’s Third-Largest Civil Aircraft Manufacturer
1991 Ongoing Innovation in Aerospace
1998 ATV Launch
2001 Becoming the Global Leader in Rail Transportation
2003 Restructuring to Focus on Core Businesses
2006 Boosting Its World Leadership in Rail Transportation
2007 CRJ Series Continues to Evolve
2009 Bombardier designs Vancouver 2010 Olympic Torch 4 P’S OF MARKETING:
PRODUCT Bombardier: Connecting People SWOT Marketing Strategy Analysis Corporate Social Responsibility 1. Recognized as one of the top 100 employers in Canada ( Aerospace Group 2010)
2. Partners in Humanity Award from the Canadian Red Cross (Bombardier 2010)
3. GO Transit Service Centre – Toronto, Canada
4. Named “ Best of the Best” in flight service in the Robb Report ( Flexjet 2010)
5. Promote women’s opportunities in Canadian aerospace industry (Bombardier 2011)
6. Employee donated more than $2 million to Centraide of Greater of Montreal
(Bombardier , Aerospace and Transportation groups, 2010) Planet 1. Recognized for creating an Olympic Torch with a modern innovative design and limited environmental footprint (Bombardier 2010)
2. First prize for environment behavior, AENA-Spain (Transportation Group 2010)
Profit 1. Recognized in SAM’s 2010 yearbook as one of the sustainability leaders in the aerospace and defence sector classified as a SAM Gold Class member
(Bombardier 2010)
Traditionally specialized in niche marketing
Niche Market Definition: "a narrowly defined group of potential customers" Two reportable segments: BA and BT
Different technology & different marketing strategies BombardierDirect E-Commerce
"Bringing Dealers and Consumers Together" International Collaboration China - COMAC -Collaborate on marketing strategies, customer relations, customer support.
-Goal: to compete with Airbus and Boeing Conclusion Recommendations World Presence Bombardier in China: A Successful Partnership Relationship with China began more than 50 years ago.

Provides skills to four famous Chinese manufacturers to produce the bodies of its planes and trains.

Owns 30% market shares of business aircraft as of April 2010.

Most of China’s largest cities use Bombardier’s train cars for their metro. Bombardier Hope Project Fund - Disaster Relief in Sichuan Province Donated about $146,000 to May 2008 Sichuan Earthquake. Strengths:
Strong marketing position
Distributes its products and service through dealers and distribution
Diversified business model
Continuous focus on innovation
Provides benefit packages to employees
Strong emphasis on research development
Leverages it's collaboration with universities and research institutions
Generates it's total revenues from as many as 17 geographical segments
Strong profit growth Weaknesses
Relatively low employee productivity compared to other major transportation companies

Employee benefit obligations overfunded

First brand in aircraft and rail transportation Oppourtunities
Current boating license regulations
Environmental focus
Cost effective to buy and maintain
Safety - Inboard motor is much safer than that of a speed boat
Ease of use for inexperienced riders Threat
Environmental concerns - Bombardiers operations are subject to strict environmental regulations
Tightening of credit in financial markets – customers and suppliers
Global economy
Canadian company with a global presence
Diverse company
Diversified risk – several different divisions
Bombardier Capital – leasing and loans for internal purposes as well as financial services for clients
Military presence – US and Canada – little disclosure
Socially aware with strong emphasis on CSR
Theme – Connecting people
First company to pioneer ‘green technology’ in metro transportation People Aerospace:

* Business aircraft - Learjet, Challenger and Global aircraft families
* Commercial aircraft - new CSeries program, CRJ Series and Q-Series aircraft families
* Amphibious aircraft - Bombardier 415 and Bombardier 415 MP aircraft
* Jet travel solutions - Flexjet
* Specialized aircraft solutions - Bombardier aircraft modified for special missions
* Aircraft services and training - aircraft parts, maintenance, comprehensive training, technical support and publications, and online services Transportation:

* Rail vehicles - automated people movers, monorails, light rail vehicles, advanced rapid transit, metros, commuter/regional trains, intercity/high-speed trains and locomotives
* Propulsion and controls - complete product portfolio for applications ranging from trolley buses to freight locomotives
* Bogies - product portfolio for the entire range of rail vehicles
* Services - fleet maintenance, operations and maintenance (O&M), vehicle refurbishment and modernization, and material management
* Transportation systems - customized “design-build-operate-maintain” transportation system solutions
* Rail control solutions - advanced signalling solutions for mass transit and mainline systems Design:

* Business Class/Luxury Planes/Trains
* Focus on efficiency & sustainability


* Engineering ingenious and sustainable solutions to today’s mobility challenges and opportunities. Promotion Price Place Concentrate on furthering Bombardier’s high quality and sustainable image. Bombardier products tend to transport large amounts of people. Quality, reliability, and sustainability is paramount.

Product and brand differentiation will be key as new technology advancements give competitors momentum.

Flexible budgeting and scenario planning should be employed to deal with rapid technological advancements in the aerospace and transportation industries
Advertising that appeals to consumers AND potential buyers of the products.
Helping people and goods get to where they need to go
Youtube presence
Television advertisements
Emphasis on connectivity and sustainability Multi-million dollar products (planes/trains)
Recreational vehicles base price approximately $8000CAD
Employs administered-style pricing policy to help achieve overall objectives
Strong emphasis on high quality products, not low cost products
The manufacturing process and fuel-efficiency are what make Bombardier products cheaper to manufacture and operate Present in more than 60 countries
Strategically located distribution centers in Chicago, IL USA and Frankfurt, Germany
Satellite distribution centers in Sau Paulo, Singapore, Dubai and Sydney
Manufacturing, engineering and services facilities in 29 countries
A global network of service and support representatives. References Thank You! Bombardier. (n.d.). Vancouver 2010 Olympic Torch. Retrieved April 4, 2011 from
http://www.bombardier.com/en/corporate/corporate responsibility/community/vancouver-2010-winter-olympic-games/vancouver-2010-olympic-torch?docID=0901260d800a465e

Bombardier. (n.d.). Vancouver 2010 Olympic and Paralympic Winter Games Sponsorship Retrieved April 4, 2011 from

Bombardier.(n.d.). SearchResults. Retrieved April 4, 2011 from
http://www.bombardier.com/en/transportation/search?cx=002544254517997637893 %3Akke49tn6k2u&cof=FORID%3A10%3BNB%3A1&ie=ISO-8859- 1&hl=en&lr=lang_en&hq=inurl%3A%2Fen%2Ftransportation.*+OR+inurl%3A%2F files%2F.*&q=marketing+strategy&sa=Search#1056

Trends Updates. (n.d.). Corporate Social Responsibility (CSR): Simply Good Business?Retrieved April 4, 2011 from http://trendsupdates.com/corporate-social-responsibility-csr-simply-good-business/

BRP. (2001, April 3). Bombardier recreational products forms alliance with direct
marketing leader overton’s. Retrieved April 4, 2011 from

Toronto Sun. (2011, March 24). Money : Bombardier signs marketing deal with Chinese aircraft company. Retrieved April 4, 2011 from http://www.torontosun.com/money/2011/03/24/17740391.html
The Globe and Mail. (2010, October 2). Bombardier’s C Series poised to take flight Retrieved April 4, 2011 from http://m.theglobeandmail.com/globe-investor/bombardiers-c-series-poised-to-take-flight/article1738911/?service=mobile

Mckinsey&Company. (2011, March). “Flying people, not planes”: The CEO of Bombardier on building a world-class culture. Retrieved April 4, 2011 from http://www.premium.mckinseyquarterly.com/Marketing/Strategy/Flying_people_not_planes_The_CEO_of_Bombardier_on_building_a_world-class_culture_2755
Bombardier. (n.d.). Contributions Worldwide. Retrieved April 4, 2011 from

Unusual off-road locomotion. (n.d.). J.A. Bombardier Travel on Snow.
Retrieved April 4, 2011 from http://www.unusuallocomotion.com/rubrique,j-a-bombardier-snow-travel,1176423.html

Trekearth. (n.d.). B-12 Snowmobile. Retrieved April 4, 2011 from
J. Armand Bombardier. (n.d.). 1959 to 1964: The Ski-Doo®2 snowmobile.
Retrieved April 4, 2011 from
Aerospace Technology. (n.d.). Bombardier Q400 Dash 8 Turboprop Regional Airliner, Canada. Retrieved April 4, 2011 from http://www.aerospace-technology.com/projects/dash8/dash81.html
ATV Parts. . (n.d.). Retrieved April 4, 2011 from http://www.atvpartsking.com/

Bombardier. (n.d.). Recognitions. Retrieved April 4, 2011 from
Bombardier. (2010, October 15). Bombardier Aerospace Among the Top 100 Employers in Canada. Retrieved April 4, 2011 from http://www.bombardier.com/en/corporate/media-centre/press-releases/details?docID=0901260d80139b24
Bombardier. (2010, January 29). Bombardier Receives Sustainability Star Awards for the Vancouver 2010 Olympic Torch and Streetcar Demonstration Project
Retrieved April 4, 2011 from http://www.bombardier.com/en/corporate/media-centre/press-releases/details?docID=0901260d800e6b6c

Bombardier. (2010, December 13). Bombardier’s employees donate over $ 2 million to
Centraide of Greater of Montréal. Retrieved April 4, 2011 from http://csr.bombardier.com/en/media-center/csr-news/16-bombardiers-employees-

Bombardier. (2011, March 8). Women in Aerospace Canada Celebrates International Women's Day at Bombardier Aerospace's Toronto Facility.
Retrieved April 4, 2011 from http://csr.bombardier.com/en/media-center/csr-news/17-women-in-aerospace- canada-celebrates-international-womens-day-at-bombardier-aerospaces-toronto-facility
Bombardier. (n.d.). Worldwide Presence. Retrieved April 4, 2011 from

Bombardier. (n.d.). About Us. Retrieved April 4, 2011 from

Bombardier. (2002). Bombardier Aerospace : A Strategic Analysis.
Retrieved April 4, 2011 from http://www.mcafee.cc/Classes/BEM106/Papers/UTexas/351/Learjet.pdf

Perreault, D. W., McCarthy, E. J., Meredith, L., & Ricker, L. (1999). Basic Marketing : A
Global-Managerial Approach. Canada: McGraw-Hill Ryerson Limited. (P.447).





Questions? Mandy, Pinyada, Sujith, Lion, and Tyler
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