CASELET ON BMW

1. How does BMW segment its consumers? Why does this work for BMW?
BMW segments its consumers generally on demographic and demographic segmentation,
although they came up with a range of “series” for their cars which classified the kind of model that appears
to the age type and perhaps occupation.
According to the case, BMW created the lower-priced 1 Series and X1 SUV to target the “modern
mainstream,” a group who are also family-focused and active but had previously avoided
BMW’s because of their premium cost. The 1 Series reached this group with its lower price
point, sporty design, and luxury brand.
(for example –(a) BMW series 7 is for age above 55 years their occupation/job profile is like
CEO/Top management/ Board member model that appears to the age type and perhaps
occupation.
(b) BMW series 3 is for Age 30-40 years and their occupation/job profile is like young
professional, assistant manager of MNC’s.
So basically, BMW targets customers from upper class social group as they are the people for
whom BMW will be affordable & moreover they will appreciate the masterpiece. The global
front runner, BMW has positioned itself as a symbol of quality, technologically advanced, high
performance& exclusive automobile brand.
And In this way, this work for BMW, the company would be able to target a specific group or
cater a particular marketing strategy or create a niche.
2. What does BMW do well to market to each segment group? Where could it
improve its marketing strategy?
BMW has come a long way in building not only its reputation but the product and the logo that
carries the prestige of owning one. Continuous process & technological advancement in
research and development takes the core for the competitive advantage of BMW, which is
known for its quality, reliability and superior customer service support. In addition to marketing
strategy, BMW is continuing to expand the number of authorized dealers. To continue
strengthening their brand name they have to be conscious about the quality and also it could
improve its marketing strategy by targeting females and middle class also.
3. Should BMW ever change its tagline, “The Ultimate Driving Machine”? Why or why not?
In my opinion, BMW should not change its tagline of “The Ultimate Driving Machine”. This is
because this tagline perfectly defined BMW cars as the cars were exceptional in performance
and also its design. BMW designed its cars with better engines for amazing performance and
also offer luxury looks as BMW appeal to its customers as exclusive cars with those features.
The company’s U.S. tagline, “The Ultimate Driving Machine,” has remained consistent since it first launched
there in 1974. During that time, sales have grown to more than 300,000 units in the United States in
2013. In recent years, BMW has returned to emphasizing performance over status, stating, “We only
make one thing, the ultimate driving machine.”BMW owners are very loyal to the brand, and
enthusiasts host an annual Bimmerfest each year to celebrate their cars. The company nurtures
these loyal consumers and continues to research, innovate, and reach out to specific segment
groups year after year.