Unit II_Advanced Marketing - BMW 3.docx - Running head MHRV...

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Running head: MHRV 6451-14O-4V20-S2 , Advanced Marketing 1 Advanced Marketing Columbia Southern University Unit II Assigment BMW Marketing Case Study
MHRV 6451-14O-4V20-S2, Advanced Marketing Unit II Part 1 – Analysis of BMW segmentation and targeting BMW is one of the largest car companies based in Germany and exporting to markets all over the world. BMWs brand image is a unique one, they portray the brand which offers a luxury car that provides an exhilarating driving experience. The success of the company as one the world’s most famous marketers of luxury goods has been built on precision of market segmentation and targeting strategies. - Through the 1980s and early 1990s, it identified an increasing class of yuppies a customer group they called social climbers who were inspired almost by their professional successes. Their common characteristics are they put primary priority on work – related matters and very proud of their wealth. They needed a car that spoke “I’ve made it”. So BMW made the cars they craved for which is outstanding than any car in the road. - Moving to the end of 1990s, BMW sensed there was a shift in luxurious customers attitudes. BMW’s customer at that time can be the baby boomers or previous yuppies who got older and have family life, liberal minded professionals. Their main focus was put on family and leisure activities. The customer preference at the end of 1990s shift to more freedom to choose the style and eye – catching designs. Accordingly, BMW extended their product range to have 1 Series, 3 Series, 5 Series, 6 Series, 7 Series, X Series - BMW divided their customers for luxury cars into four category namely Modern mainstream, Postmodern, Upper liberals and Upper conservative. Each customer segment has different traits. Upper liberal is defined as successful professional who like to enjoy time with family and has active lifestyle. Post – modern is the mostly successful, high – earning people with innovative characteristics such as artist, architects and entrepreneurs. The upper conservative is the wealthy people with traditional, conservative mindset. They have had high opinion on Mercedes and Jaguars as the symbol of elegance and success, now they consider to switching to BMW for driving performance. The final class in BMW segmentation is the Modern Mainstream consisting a group of people who are in next to the upper class, family – centric and like active lifestyle as well. BMW products were used to be expensive for
MHRV 6451-14O-4V20-S2, Advanced Marketing Unit II them so the company launch 1 Series and Mini car, the smallest one to gain share in this lower segment. [ CITATION GAR \l 1033 ] The evolution of BMW segmentation and targeting customer over the years indicate that the company understand the customers persona and behavior deeply. They translated this understanding into building the products that catch the eyes of the target customers – the rich and upper – class consumers. Precise segmentation and thorough understand customer are the reason behind why BMW always being considered as the symbol of the luxurious car in the world.

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