Question

Explain why this segmentation strategy works for BMW. (10)

Answer 1

From its inception in 1916, the manufacturer has concentrated mainly on the driving experience of its customer. In today’s world, driving a BMW means quality, efficiency and engineering expertise. It is by far, the world’s leader in premium car manufacturing and leads all the other automobile industries.

BMW’s marketing strategy differs from the model of the car but when the key to all the models is the same which emphasizes on Performance, Exclusivity, Technology and Quality. BMW as manufacturer has given more weightage in building the brand along with building cars. The one big asset that BMW owns today is the brand reputation which cannot be compared to any other manufacturer in the premium cars business.

BMW chose to cater to only those consumers whose standards of living are high in terms of quality and perfection and will always look for the same when it comes to buying a car. When it comes to technology, BMW invests a lot to be ahead in the race. The consumers are usually divided into two groups, one whose priority will be to buy a car with better performance, newer technology and more power while the others just buy the car for its brand value and for the heck of owning it. BMW makes sure it attracts both the customers by building it brand and also by coming up with newer technologies.