THE BMZ ACADEMY
THE BMZ ACADEMY
@0 6 8 0 5 3 8 2 1 3
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
MANCOSA: BBA (HONS) Assessment
A class-based discussion with model answers to Assignment
Model Solutions provided in this document are not intended for cheating, rather to
provide a starting point.
All solutions were presented based on class discussion.
Further breakdown are given for each question to give students a comprehensive
starting point and keep on referencing to the relevant areas.
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Table of Contents
Assignment methodology (Preliminary breakdown) ............................................................................. vi
1. Analytical Framework and Subject Areas Explored...................................................................... vi
2. Resources and Academic References Used .................................................................................. vii
3. Case Study Sources and Market Examples ................................................................................. viii
4. Method of Analysis ..................................................................................................................... viii
Introduction ............................................................................................................................................. 1
Question 1 (25 Marks) ............................................................................................................................ 2
Defining Radical Innovation in the Automotive Sector ..................................................................... 2
High Performance as a Key Indicator of Innovation .......................................................................... 3
Advanced Blade Battery Technology as a Radical Shift .................................................................... 3
Engineering Capability Demonstrated Through Unique Features ...................................................... 3
Product Differentiation Through Form, Features, and Design ........................................................... 4
Applying Product Innovation Theory to the Seal EV ......................................................................... 4
Diffusion of Innovation: How BYD Aims to Gain Market Traction.................................................. 4
Unique Selling Proposition (USP): BYD’s Distinctive Market Message .......................................... 5
Comparing the Seal EV with Competing Electric Vehicles ............................................................... 5
BYD Seal EV as a Radical Market Disruptor .................................................................................... 6
Question 2 (25 Marks) ............................................................................................................................ 6
The Role of Country-of-Origin (COO) Effects .................................................................................. 6
Consumer Perceptions: Chinese vs. European Automotive Brands ................................................... 7
Innovation Perceptions ................................................................................................................... 7
Quality Perceptions ........................................................................................................................ 8
Price Perceptions ............................................................................................................................ 8
Strategies to Manage COO Perceptions and Build Trust ................................................................... 8
Emphasize Superior Customer Value............................................................................................. 8
iii | P a g e
, THE BMZ ACADEMY
Build Strong, Favourable, and Unique Brand Associations ........................................................... 9
Deliver Consistent High Quality and Performance ...................................................................... 10
Leverage Marketing Communications and Experiences .............................................................. 11
Form Strategic Partnerships and Localization.............................................................................. 11
Adopt Strategic Positioning and Targeting .................................................................................. 12
Repositioning BYD Beyond Country-of-Origin Stereotypes ........................................................... 13
Question 3 (25 Marks) .......................................................................................................................... 13
A Customer Value-Focused Launch Strategy .................................................................................. 14
1. Market Segmentation: Targeting South Africa’s Early Adopters and Affluent Consumers .... 14
2. Positioning: Crafting a Distinctive and Aspirational Brand Image .......................................... 15
3. Distribution Channels: Building Access Through Multi-Touchpoint Networks...................... 15
4. After-Sales Service: Cementing Trust Through Superior Support ........................................... 16
5. First-Mover Advantage: Establishing Dominance Before Rivals Arrive ................................. 17
A Holistic Strategy to Ensure BYD's Seal EV Success .................................................................... 17
Question 4 (25 Marks) .......................................................................................................................... 18
Pricing Strategy as a Strategic Lever in BYD’s European Expansion ............................................. 18
The Significance of Market Entry Pricing Strategy in Europe ......................................................... 19
Pricing Defines Market Positioning and Consumer Perceptions ................................................. 19
Pricing Influences Channel Partnerships and Competitive Response .......................................... 20
Pricing Strategy Options: Evaluating Theoretical Approaches for BYD ......................................... 21
Penetration Pricing: Risks of Brand Erosion in a Premium Segment .......................................... 21
Competitive-Based Pricing .......................................................................................................... 21
Value-Based Pricing..................................................................................................................... 22
Price Skimming and Value-Based Pricing: Balancing Premium Positioning with Competitive
Edge.............................................................................................................................................. 22
Recommended Strategy: A Dual Pricing Approach Tailored to BYD’s Portfolio ........................... 22
Luxury SUV: Premium Price Skimming to Build Aspirational Brand Equity............................. 22
iv | P a g e
, THE BMZ ACADEMY
Seal EV: Value-Based Competitive Pricing to Capture Mid-Premium Market Share ................. 23
Justification: Why a Dual Pricing Strategy Best Serves BYD’s European Ambitions .................... 24
Balancing Brand Building and Market Share Growth ................................................................. 24
Overcoming Country-of-Origin Bias While Defending Against Competitor Moves .................. 24
Aligning Price with Product Type and Market Expectation ........................................................ 24
Defending Against Aggressive Competitor Moves...................................................................... 25
Pricing as BYD’s Cornerstone to Unlocking European Market Success ......................................... 25
Conclusion ............................................................................................................................................ 25
References ............................................................................................................................................. 27
v|Page
, THE BMZ ACADEMY
Assignment methodology (Preliminary breakdown)
To prepare this comprehensive assignment on BYD’s global market entry and
marketing strategy, students must adopt a structured, multi-step research and analysis
approach, drawing on academic theory, industry case studies, and current market
reports. This methodology combines both secondary research and theoretical
application, ensuring that the analysis is both academically rigorous and practically
relevant to BYD’s real-world expansion plans.
1. Analytical Framework and Subject Areas Explored
The assignment is structured around key subject areas within the field of Marketing
Management and International Business Strategy, specifically:
• Product Innovation and Adoption Theories: Examined through frameworks
such as Rogers’ Diffusion of Innovations, disruptive innovation theory
(Christensen, 1997), and product differentiation models (Kotler & Keller, 2016).
• Brand Positioning and Equity: Explored using Keller’s Customer-Based
Brand Equity (CBBE) model and Aaker’s Brand Equity Framework, focusing on
points-of-difference (PODs) and points-of-parity (POPs).
• Country-of-Origin (COO) Effects: Analyzed using international marketing
theory (Usunier & Lee, 2013) to understand how COO perceptions impact
consumer attitudes in Europe and South Africa.
• Market Segmentation and Targeting: Applied segmentation models
(demographic, psychographic, behavioral) to identify high-potential consumer
segments in South Africa and Europe.
• Distribution Channel Strategy: Grounded in Kotler’s channel management
principles and Schmitt’s (2023) customer experience frameworks to
recommend multi-channel strategies.
• Pricing Strategy: Explored using classical pricing theories (penetration pricing,
price skimming, value-based pricing) and adapted to BYD’s dual-product
portfolio.
• First-Mover Advantage: Leveraged concepts from Lieberman & Montgomery
(1988) and Schnaars (1994) to analyze BYD's strategic timing in entering
emerging EV markets.
vi | P a g e
, THE BMZ ACADEMY
2. Resources and Academic References Used
Key Textbooks and Academic Frameworks
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Armstrong, G., & Kotler, P. (2022). Marketing: An Introduction (14th ed.).
Pearson.
• Aaker, D. (1991). Managing Brand Equity. The Free Press.
• Keller, K. L. (2003). Strategic Brand Management (2nd ed.). Pearson.
• Christensen, C. (1997). The Innovator’s Dilemma. Harvard Business School
Press.
• Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). Free Press.
• Usunier, J. C., & Lee, J. A. (2013). Marketing Across Cultures (6th ed.).
Pearson.
• Schilling, M. A. (2017). Strategic Management of Technological Innovation (5th
ed.). McGraw-Hill.
• Trott, P. (2017). Innovation Management and New Product Development (6th
ed.). Pearson.
Journals and Research Databases Utilized
• Journal of Marketing
• Journal of Product Innovation Management
• Strategic Management Journal
• Harvard Business Review
• Journal of International Marketing
These journals were accessed primarily through academic databases such as:
• Google Scholar
• EBSCOhost
• ScienceDirect
• Emerald Insight
Websites and Industry Reports Consulted
vii | P a g e
, THE BMZ ACADEMY
• BYD Auto Official Website (for model specifications and company reports)
• EV-volumes.com (for European EV market data and competitive landscape)
• Bloomberg and Reuters (for latest pricing moves by Tesla and other EV
brands)
• InsideEVs and Electrek (industry news portals with coverage of Geneva Motor
Show 2024)
• McKinsey & Company reports on the future of EV markets in Europe and
emerging economies
• Statista (for EV adoption rates and country-specific market size estimates)
3. Case Study Sources and Market Examples
To ensure that theoretical models are well integrated with practical reality, students
must incorporate insights and examples from:
• BYD’s showcase at the 2024 Geneva Motor Show (as per the project brief)
• Tesla’s price-cutting strategies in Europe (Schmitt, 2023)
• Porsche Taycan and Mercedes-Benz EQ series pricing and positioning
• EV infrastructure development trends in South Africa (e.g., GridCars
partnership models)
• First-mover success cases (e.g., Tesla in the US, Hyundai Ioniq series in
Europe)
4. Method of Analysis
Each question should be approached using a structured format:
• Theory Application: Relevant marketing and innovation management theories
are first explained.
• Case Integration: Theories are applied directly to the BYD case using real-
world data and examples.
• Critical Comparison: Competing brands and strategies are analyzed to
benchmark BYD’s possible moves.
• Strategic Recommendation: Actionable solutions are proposed, ensuring
alignment with BYD’s product strengths and market challenges.
viii | P a g e
, THE BMZ ACADEMY
This blended approach of theory, case, and critical evaluation ensured that each
answer is not only academically robust but also practical and actionable for BYD's
real-world market entry.
In summary, the model assignment solution included underneath was prepared using
a rigorous, research-driven methodology that combined authoritative academic
sources, peer-reviewed journals, leading business publications, and up-to-date
industry reports. The key areas explored spanned product innovation, brand
positioning, country-of-origin effects, pricing strategy, distribution, and first-mover
advantage. By grounding each answer in both marketing theory and real-world
practice, the assignment offers a strategic roadmap tailored for BYD's successful entry
into the global EV marketplace.
Here is a detailed breakdown of the study units and key marketing areas that are being
examined in each question from Marketing Management assignment.
Question 1 (25 Marks)
• Radical Innovation
• Product Design Elements
• Product Innovation Theories
• Radical vs Incremental Innovation (innovation types)
• Product Differentiation & Design (product strategy)
• Diffusion of Innovation Theory (Everett Rogers)
• New Product Development (NPD) stages
Discussion in Theory
Radical innovation refers to breakthrough developments that fundamentally change
the market. In the case of the BYD Seal EV, features like floating capability and
extreme horsepower differentiate it from conventional EVs. Marketing theories
suggest that product innovation is a key driver of competitive advantage. Rogers'
Diffusion of Innovation Theory explains how such innovations spread among
consumers (innovators, early adopters, etc.). Design elements that are unique help
with product positioning and appeal to trendsetters in new markets.
ix | P a g e
, THE BMZ ACADEMY
Question 2 (25 Marks)
• Country-of-Origin (COO) Effects
• Consumer Perceptions
• Brand Equity & Trust Building
• Consumer Behavior (Study unit on buyer perceptions)
• Country-of-Origin Effects
• Brand Equity Models (e.g., Keller's Customer-Based Brand Equity Model)
• Cross-cultural Marketing
Discussion in Theory
Country-of-Origin (COO) effect refers to the influence that the country where a brand
originates has on consumer perceptions. Chinese automotive brands may be
perceived as less innovative or of lower quality compared to European brands, but
they are usually more competitively priced. Marketing strategies like trust building,
using endorsements, warranties, local partnerships, and high visibility at European
events (like Geneva Motor Show) can improve perceptions and build brand equity.
Keller’s model suggests that strong, favourable, and unique brand associations are
key to achieving brand equity.
Question 3 (25 Marks)
• Market Entry Strategies for South Africa
• Segmentation, Positioning, Distribution, After-Sales Service
• First-Mover Advantage
• Market Segmentation & Targeting
• Positioning Strategies (e.g., perceptual mapping)
• Distribution Channels
• After-Sales Service Management
• First-Mover vs Follower Advantage theories
Discussion in Theory
x|Page
THE BMZ ACADEMY
@0 6 8 0 5 3 8 2 1 3
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
MANCOSA: BBA (HONS) Assessment
A class-based discussion with model answers to Assignment
Model Solutions provided in this document are not intended for cheating, rather to
provide a starting point.
All solutions were presented based on class discussion.
Further breakdown are given for each question to give students a comprehensive
starting point and keep on referencing to the relevant areas.
BMZ ACADEMY 068 053 8213
, THE BMZ ACADEMY
Table of Contents
Assignment methodology (Preliminary breakdown) ............................................................................. vi
1. Analytical Framework and Subject Areas Explored...................................................................... vi
2. Resources and Academic References Used .................................................................................. vii
3. Case Study Sources and Market Examples ................................................................................. viii
4. Method of Analysis ..................................................................................................................... viii
Introduction ............................................................................................................................................. 1
Question 1 (25 Marks) ............................................................................................................................ 2
Defining Radical Innovation in the Automotive Sector ..................................................................... 2
High Performance as a Key Indicator of Innovation .......................................................................... 3
Advanced Blade Battery Technology as a Radical Shift .................................................................... 3
Engineering Capability Demonstrated Through Unique Features ...................................................... 3
Product Differentiation Through Form, Features, and Design ........................................................... 4
Applying Product Innovation Theory to the Seal EV ......................................................................... 4
Diffusion of Innovation: How BYD Aims to Gain Market Traction.................................................. 4
Unique Selling Proposition (USP): BYD’s Distinctive Market Message .......................................... 5
Comparing the Seal EV with Competing Electric Vehicles ............................................................... 5
BYD Seal EV as a Radical Market Disruptor .................................................................................... 6
Question 2 (25 Marks) ............................................................................................................................ 6
The Role of Country-of-Origin (COO) Effects .................................................................................. 6
Consumer Perceptions: Chinese vs. European Automotive Brands ................................................... 7
Innovation Perceptions ................................................................................................................... 7
Quality Perceptions ........................................................................................................................ 8
Price Perceptions ............................................................................................................................ 8
Strategies to Manage COO Perceptions and Build Trust ................................................................... 8
Emphasize Superior Customer Value............................................................................................. 8
iii | P a g e
, THE BMZ ACADEMY
Build Strong, Favourable, and Unique Brand Associations ........................................................... 9
Deliver Consistent High Quality and Performance ...................................................................... 10
Leverage Marketing Communications and Experiences .............................................................. 11
Form Strategic Partnerships and Localization.............................................................................. 11
Adopt Strategic Positioning and Targeting .................................................................................. 12
Repositioning BYD Beyond Country-of-Origin Stereotypes ........................................................... 13
Question 3 (25 Marks) .......................................................................................................................... 13
A Customer Value-Focused Launch Strategy .................................................................................. 14
1. Market Segmentation: Targeting South Africa’s Early Adopters and Affluent Consumers .... 14
2. Positioning: Crafting a Distinctive and Aspirational Brand Image .......................................... 15
3. Distribution Channels: Building Access Through Multi-Touchpoint Networks...................... 15
4. After-Sales Service: Cementing Trust Through Superior Support ........................................... 16
5. First-Mover Advantage: Establishing Dominance Before Rivals Arrive ................................. 17
A Holistic Strategy to Ensure BYD's Seal EV Success .................................................................... 17
Question 4 (25 Marks) .......................................................................................................................... 18
Pricing Strategy as a Strategic Lever in BYD’s European Expansion ............................................. 18
The Significance of Market Entry Pricing Strategy in Europe ......................................................... 19
Pricing Defines Market Positioning and Consumer Perceptions ................................................. 19
Pricing Influences Channel Partnerships and Competitive Response .......................................... 20
Pricing Strategy Options: Evaluating Theoretical Approaches for BYD ......................................... 21
Penetration Pricing: Risks of Brand Erosion in a Premium Segment .......................................... 21
Competitive-Based Pricing .......................................................................................................... 21
Value-Based Pricing..................................................................................................................... 22
Price Skimming and Value-Based Pricing: Balancing Premium Positioning with Competitive
Edge.............................................................................................................................................. 22
Recommended Strategy: A Dual Pricing Approach Tailored to BYD’s Portfolio ........................... 22
Luxury SUV: Premium Price Skimming to Build Aspirational Brand Equity............................. 22
iv | P a g e
, THE BMZ ACADEMY
Seal EV: Value-Based Competitive Pricing to Capture Mid-Premium Market Share ................. 23
Justification: Why a Dual Pricing Strategy Best Serves BYD’s European Ambitions .................... 24
Balancing Brand Building and Market Share Growth ................................................................. 24
Overcoming Country-of-Origin Bias While Defending Against Competitor Moves .................. 24
Aligning Price with Product Type and Market Expectation ........................................................ 24
Defending Against Aggressive Competitor Moves...................................................................... 25
Pricing as BYD’s Cornerstone to Unlocking European Market Success ......................................... 25
Conclusion ............................................................................................................................................ 25
References ............................................................................................................................................. 27
v|Page
, THE BMZ ACADEMY
Assignment methodology (Preliminary breakdown)
To prepare this comprehensive assignment on BYD’s global market entry and
marketing strategy, students must adopt a structured, multi-step research and analysis
approach, drawing on academic theory, industry case studies, and current market
reports. This methodology combines both secondary research and theoretical
application, ensuring that the analysis is both academically rigorous and practically
relevant to BYD’s real-world expansion plans.
1. Analytical Framework and Subject Areas Explored
The assignment is structured around key subject areas within the field of Marketing
Management and International Business Strategy, specifically:
• Product Innovation and Adoption Theories: Examined through frameworks
such as Rogers’ Diffusion of Innovations, disruptive innovation theory
(Christensen, 1997), and product differentiation models (Kotler & Keller, 2016).
• Brand Positioning and Equity: Explored using Keller’s Customer-Based
Brand Equity (CBBE) model and Aaker’s Brand Equity Framework, focusing on
points-of-difference (PODs) and points-of-parity (POPs).
• Country-of-Origin (COO) Effects: Analyzed using international marketing
theory (Usunier & Lee, 2013) to understand how COO perceptions impact
consumer attitudes in Europe and South Africa.
• Market Segmentation and Targeting: Applied segmentation models
(demographic, psychographic, behavioral) to identify high-potential consumer
segments in South Africa and Europe.
• Distribution Channel Strategy: Grounded in Kotler’s channel management
principles and Schmitt’s (2023) customer experience frameworks to
recommend multi-channel strategies.
• Pricing Strategy: Explored using classical pricing theories (penetration pricing,
price skimming, value-based pricing) and adapted to BYD’s dual-product
portfolio.
• First-Mover Advantage: Leveraged concepts from Lieberman & Montgomery
(1988) and Schnaars (1994) to analyze BYD's strategic timing in entering
emerging EV markets.
vi | P a g e
, THE BMZ ACADEMY
2. Resources and Academic References Used
Key Textbooks and Academic Frameworks
• Kotler, P., & Keller, K. L. (2016). Marketing Management (15th ed.). Pearson.
• Armstrong, G., & Kotler, P. (2022). Marketing: An Introduction (14th ed.).
Pearson.
• Aaker, D. (1991). Managing Brand Equity. The Free Press.
• Keller, K. L. (2003). Strategic Brand Management (2nd ed.). Pearson.
• Christensen, C. (1997). The Innovator’s Dilemma. Harvard Business School
Press.
• Rogers, E. M. (2003). Diffusion of Innovations (5th ed.). Free Press.
• Usunier, J. C., & Lee, J. A. (2013). Marketing Across Cultures (6th ed.).
Pearson.
• Schilling, M. A. (2017). Strategic Management of Technological Innovation (5th
ed.). McGraw-Hill.
• Trott, P. (2017). Innovation Management and New Product Development (6th
ed.). Pearson.
Journals and Research Databases Utilized
• Journal of Marketing
• Journal of Product Innovation Management
• Strategic Management Journal
• Harvard Business Review
• Journal of International Marketing
These journals were accessed primarily through academic databases such as:
• Google Scholar
• EBSCOhost
• ScienceDirect
• Emerald Insight
Websites and Industry Reports Consulted
vii | P a g e
, THE BMZ ACADEMY
• BYD Auto Official Website (for model specifications and company reports)
• EV-volumes.com (for European EV market data and competitive landscape)
• Bloomberg and Reuters (for latest pricing moves by Tesla and other EV
brands)
• InsideEVs and Electrek (industry news portals with coverage of Geneva Motor
Show 2024)
• McKinsey & Company reports on the future of EV markets in Europe and
emerging economies
• Statista (for EV adoption rates and country-specific market size estimates)
3. Case Study Sources and Market Examples
To ensure that theoretical models are well integrated with practical reality, students
must incorporate insights and examples from:
• BYD’s showcase at the 2024 Geneva Motor Show (as per the project brief)
• Tesla’s price-cutting strategies in Europe (Schmitt, 2023)
• Porsche Taycan and Mercedes-Benz EQ series pricing and positioning
• EV infrastructure development trends in South Africa (e.g., GridCars
partnership models)
• First-mover success cases (e.g., Tesla in the US, Hyundai Ioniq series in
Europe)
4. Method of Analysis
Each question should be approached using a structured format:
• Theory Application: Relevant marketing and innovation management theories
are first explained.
• Case Integration: Theories are applied directly to the BYD case using real-
world data and examples.
• Critical Comparison: Competing brands and strategies are analyzed to
benchmark BYD’s possible moves.
• Strategic Recommendation: Actionable solutions are proposed, ensuring
alignment with BYD’s product strengths and market challenges.
viii | P a g e
, THE BMZ ACADEMY
This blended approach of theory, case, and critical evaluation ensured that each
answer is not only academically robust but also practical and actionable for BYD's
real-world market entry.
In summary, the model assignment solution included underneath was prepared using
a rigorous, research-driven methodology that combined authoritative academic
sources, peer-reviewed journals, leading business publications, and up-to-date
industry reports. The key areas explored spanned product innovation, brand
positioning, country-of-origin effects, pricing strategy, distribution, and first-mover
advantage. By grounding each answer in both marketing theory and real-world
practice, the assignment offers a strategic roadmap tailored for BYD's successful entry
into the global EV marketplace.
Here is a detailed breakdown of the study units and key marketing areas that are being
examined in each question from Marketing Management assignment.
Question 1 (25 Marks)
• Radical Innovation
• Product Design Elements
• Product Innovation Theories
• Radical vs Incremental Innovation (innovation types)
• Product Differentiation & Design (product strategy)
• Diffusion of Innovation Theory (Everett Rogers)
• New Product Development (NPD) stages
Discussion in Theory
Radical innovation refers to breakthrough developments that fundamentally change
the market. In the case of the BYD Seal EV, features like floating capability and
extreme horsepower differentiate it from conventional EVs. Marketing theories
suggest that product innovation is a key driver of competitive advantage. Rogers'
Diffusion of Innovation Theory explains how such innovations spread among
consumers (innovators, early adopters, etc.). Design elements that are unique help
with product positioning and appeal to trendsetters in new markets.
ix | P a g e
, THE BMZ ACADEMY
Question 2 (25 Marks)
• Country-of-Origin (COO) Effects
• Consumer Perceptions
• Brand Equity & Trust Building
• Consumer Behavior (Study unit on buyer perceptions)
• Country-of-Origin Effects
• Brand Equity Models (e.g., Keller's Customer-Based Brand Equity Model)
• Cross-cultural Marketing
Discussion in Theory
Country-of-Origin (COO) effect refers to the influence that the country where a brand
originates has on consumer perceptions. Chinese automotive brands may be
perceived as less innovative or of lower quality compared to European brands, but
they are usually more competitively priced. Marketing strategies like trust building,
using endorsements, warranties, local partnerships, and high visibility at European
events (like Geneva Motor Show) can improve perceptions and build brand equity.
Keller’s model suggests that strong, favourable, and unique brand associations are
key to achieving brand equity.
Question 3 (25 Marks)
• Market Entry Strategies for South Africa
• Segmentation, Positioning, Distribution, After-Sales Service
• First-Mover Advantage
• Market Segmentation & Targeting
• Positioning Strategies (e.g., perceptual mapping)
• Distribution Channels
• After-Sales Service Management
• First-Mover vs Follower Advantage theories
Discussion in Theory
x|Page
