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Running head: MHRV 6451-14O-4V20-S2, AdvancedMarketing1Advanced MarketingColumbia Southern UniversityUnit II AssigmentBMW Marketing Case Study
MHRV 6451-14O-4V20-S2, AdvancedMarketing Unit IIPart 1 – Analysis of BMW segmentation and targetingBMW is one of the largest car companies based in Germany and exporting to markets allover the world. BMWs brand image is a unique one, they portray the brand which offers a luxurycar that provides an exhilarating driving experience. The success of the company as one theworld’s most famous marketers of luxury goods has been built on precision of marketsegmentation and targeting strategies. -Through the 1980s and early 1990s, it identified an increasing class of yuppies acustomer group they called social climbers who were inspired almost by theirprofessional successes. Their common characteristics are they put primary priority onwork – 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 anycar in the road.-Moving to the end of 1990s, BMW sensed there was a shift in luxurious customersattitudes. BMW’s customer at that time can be the baby boomers or previous yuppieswho got older and have family life, liberal minded professionals. Their main focuswas put on family and leisure activities. The customer preference at the end of 1990sshift 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, 7Series, X Series-BMW divided their customers for luxury cars into four category namely Modernmainstream, Postmodern, Upper liberals and Upper conservative. Each customersegment has different traits. Upper liberal is defined as successful professional wholike to enjoy time with family and has active lifestyle. Post – modern is the mostlysuccessful, high – earning people with innovative characteristics such as artist,architects and entrepreneurs. The upper conservative is the wealthy people withtraditional, conservative mindset. They have had high opinion on Mercedes andJaguars as the symbol of elegance and success, now they consider to switching toBMW for driving performance. The final class in BMW segmentation is the ModernMainstream 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, AdvancedMarketing Unit IIthem so the company launch 1 Series and Mini car, the smallest one to gain share inthis lower segment. [ CITATION GAR \l 1033 ]The evolution of BMW segmentation and targeting customer over the years indicate that thecompany understand the customers persona and behavior deeply. They translated thisunderstanding into building the products that catch the eyes of the target customers – the rich andupper – class consumers. Precise segmentation and thorough understand customer are the reasonbehind why BMW always being considered as the symbol of the luxurious car in the world.