Question

CASE STUDY:

"BMW is the ultimate driving machine. Manufactured by the German company Bayerische Motoren Werke AG, BMW stands for both performance and luxury. The company was founded in 1916 as an aircraft-engine manufacturer and produced engines during World Wars I and II. It evolved into a motorcycle and automobile maker by the mid-20th century, and today it is an internationally respected company and brand with $106 billion in sales in 2012. BMW’s logo is one of the most distinctive and globally recognised symbols ever created. The signature BMW roundel looks like a spinning propeller blade set against a blue sky background—originally thought to be a tribute to the company’s founding days as an aircraft-engine manufacturer. Recently, however, a New York Times reporter revealed that the logo, which features the letters BMW at the top of the outer ring and blue-and-white checkered design in the inner ring, was trademarked in 1917 and meant to show the colors of the Free State of Bavaria, where the company is headquartered. BMW’s growth exploded in the 1980s and 1990s, when it successfully targeted the growing market of baby boomers and professional yuppies who put work first and wanted a car that spoke of their success. BMW gave them sporty sedans with exceptional performance and a brand that stood for prestige and achievement. The cars, which came in a 3, 5, or 7 Series, were basically the same design in three sizes. It was at this time that yuppies made Beemer and Bimmer the slang terms for BMW’s cars and motorcycles, popular names still used today. At the turn of the century, consumers’ attitudes toward cars changed. Research showed that they cared less about the bragging rights of the BMW brand and instead desired a variety of design, size, price, and style choices. As a result, the company took several steps to grow its product line by targeting specific market segments. This resulted in unique premium-priced cars such as SUVs, convertibles, and roadsters, as well as less expensive compact cars like the 1 Series. In addition, BMW redesigned its 3, 5, and 7 Series cars, making them unique in appearance yet maintaining their exceptional performance. BMW’s full range of cars now includes the 1 Series, 3 Series, 5 Series, 6 Series, 7 Series, X Series, Z4 Roadster, M Series, Hybrids, and BMWi. 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 BMWs because of their premium cost. The company nurtures these loyal consumers and continues to research, innovate, and reach out to specific segment groups year after year."

QUESTION:

Discuss using relevant examples from the case study how BMW segments its consumers

This case study relates to MARKETING MANAGEMENT.

Answer 1

This case sstudy brings us to the conclusion that BMW basically segments it's customer base into four broad categories accoring to the series of their cars.

2 SERIES
This segment of their cars is meant for the young generation who are in their 20's, can be recent graduates too.
They are the ones who are carefree, with less responsibilities and no children.
This segment is meant for the people priritising their social lifestyle.

4 SERIES
This line of their cars is for the people in their 30's. They can be single or married but likely have no children and limited responsibilities.
This line is meant for the people who have an active lifestyle.

5 SERIES
This segment of their cars is for the middle aged people in their 40's. These people usually have an established career therefore the pricing of this line is also comparatively high.
This category has responsibilities and are mature individuals.
Their lifestyles are family centric or active usually.

7 SERIES
This line of BMW's cars are for the people in their 50's. They have an executive career and are married and well settled.
They mostly have a luxury lifestyle therefore the pricing of these cars is also very high.