Mahfuja akter

Id 112193062

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

BMW is very clear about its targeting. It only targets the premium-priced cars and does not strive to

compete in every segment of the auto industry. It avoids the high

BMW mostly use geographic and demographic segmentation. The company has used Demographic

market segmentation where they allow the customers to make a purchase decision based on their

demands. The demographic segment is further divided into income, age and gender.

The BMW targeting is differentiated marketing strategy. Using this type of marketing a firm

decides to target several market segments and designs separate each of them. For example

BMW is offering a wide range of cars and motorcycles which meet all different needs and

expectations. Part of the buyers would like to buy a nice big safe car for family for everyday use

in reasonable price however other buyer would like a fast, luxurious and high quality car for

speed rides with friends. Also motorcycles are separated in different categories such as: tourist

one for exploring world or sport ones for very racing and hobby
BMW marketed to each segment by giving them what they needed. Such as, BMW created a lower price
SUV that was targeted to a group called “modern mainstream.” It could improve its marketing strategy by
targeting females and middle class also. BMW owners are very loyal to the brand, and enthusiasts host an
annual Bimmerfest each year to celebrate their cars. The company nurtures these loyal consumers and
continues to research, innovate, and reach out to specific segment groups year after year.

Answer to the question number 2

BMW implemented a different marketing mix to sell cars to different socioeconomic segments,

aggressively emphasizing premium segments.

BMW also can offer more designed car in lower - priced car for "modern mainstream" group
market instead of just 1 Series cars. So , this group of consumers who never
use BMW cars... BMW designed its cars with better engines for amazing performance

BMW does well to market its car to each segment group. As we can see, each car series and
design caters to different type of markets groups. For instance:
The 1 series, X1 and X3 SUVs are targeted to ‘mainstream consumers’, family-focus groups
that are active and avoided buying BMW because of their premium cost. The cars offered in this
segment are lower price point, while maintaining its sporty design, performance and luxury
brand.
The 3, 5 and 6 series are targeted to upper mainstream consumers with added disposable
income. Each model offers unique design, multiple accessories options and electronic
component upgrades while maintaining their performance and luxury brand.

The X series which consist of X3, X5 and X6 are targeted at consumers who were successful in
the 90s, having children and are involved in extracurricular activities such as biking, mountain
climbing, golf and skiing. The cars offer bigger design coupled with high performance engine
and added luxury is attractive to cater to their growing family members and active outdoor
activities.

The M series, convertible and Z4 roadster are targeted at high income group segment that
wants a car that attracts attention with its loud and flashy design, upgraded performance,
electronic components upgrades and accessories options.

Offer their own financial assistance scheme (hire-purchase) that has no tie-in with banks. They
could offer attractive interest rates and repayment schemes for new consumers that dreams of
owning a BMW.

Answer to the question number 3

Should BMW ever change its tagline, “The Ultimate Driving Machine”? Why or why not?
In my opinion, BMW should not change its taglineof “The Ultimate Driving Machine”. This is because
this tagline perfectly defined BMW cars as the cars were exceptional in performance and also its design.
BWM USA tagline differs from BMW from other continents. BMW USA’s tagline is “The Ultimate
Driving Machine” similar with BMW Australia, while in Europe and Asia the tagline is “Sheer Driving
Pleasure”. In our opinion, BMW should standardize its tagline with all BMW dealers worldwide and use
the “Sheer Driving Pleasure” tagline. In today’s competitive market, with the likes of Ferrari,
Lamborghini, Jaguar, Mercedes Benz, Tesla and other car manufacturers, BMW may no longer qualify as
‘the ultimate driving machine’. However, the tagline ‘Sheer Driving Pleasure’ has a more attractive tune
to it, as cars are not only have to be beautiful in design, but also a pleasure to drive in. BMW can create a
market where consumers just can’t get enough of driving their cars, and will grab every opportunity they
can to drive their car for the sheer fun and pleasure.