Question

How does BMW segment its consumers? Why does this work for BMW?

Answer 1

The BMW (Bayerische Motoren Werke) is a german multinational headquartered at munich, germany. It has been successful in market segmenting by targeting the population based on four factors:-

1. Demography, based on income levels.
2. Geography, which countries to be targeted.
3. Physiography, based on land patterns, plains etc.
4. Behavioural Patterns, fashion, trends etc.

Considering the segmentation based on demography, BMW has targeted a wide range of population by introducing the combination of technology and luxury in a wide range of products. For Eg:- It has targeted the upper liberals by introducing BMW X series car range, that is perfect as per there candidature and style, it was also targeting the mainstream population by further introducing a low cost SUV's and Sedans.

On the basis of geography it is expanding its reach worldwide in countries like India, China, Thailand, Philipines etc. Its tag line The Ultimate Driving Machine is creating a wide marketing message across this countries.

By Segmenting on the basis of physiography they are using various innovations, engineering in the design of the new cars, technologies like ABS (Anti Bracking System), Cruise Control, Higher Ground Clearance, Automated Parking, Automatic Transmission, Safety Airbags etc are as per the environment in which this vehicles are to be drived.

Behavioural Pattern wise they are targeting the people based on their needs and utility, they are continuously bringing the changes based on the feedbacks and reviews.

Now, because of this type of segmentation process they are successful in creating sales, based on the trust they have earned, the quality they have provided and the luxury they deleivered.