BMW

Targeting
Segmented
Market?

Bayerische Motoren Werke is a German

luxury vehicles motorcycle, and engine
manufacturing company founded in 1916
Luxury cars
1990s 10 series models
2010s 25 series models
1974 - 15,000 units sold
2009 2,50,000 units sold

2014 Revenue- 80.401 Billion

Worldwide presence
"Sheer Driving Pleasure"

Geographical Segment?
Region, States, Nation, Cities, Neighborhood
USA, Europe, India, China
New York, Texas, Delhi, Munich

Europe and North America

main market
64% of total sales
Industrialized
Developed

Demographical Segments
Age and Life Cycle
Age

20-30
30-40
40-50
25-55

Years
Years
Years
Years old

Life Stage
Marriage
Newly married

Family
Kids, Parents

Career Stage
Highly successful

Occasion

Demographical Segments
Income and Gender
Income
High Earning
Income to afford BMW
Upper Middle Earning
Models designed to make it
affordable
Middle and other Earning
Wants BMW but can not afford

Gender
Different attitude and behavior
Exclusive and luxury cars Both
Sports cars- Man prefers

Demographical Segments
Generation
Baby Boomers- Born 1946-1954
Generation Jones- Born 1955-1965
Generation X- Born 1966-1976
Generation Y- Born 1977-1994
Single sedan to utility vehicles,
convertibles, roadsters, compact cars

Generation Z- Born 1995-2012

Psychographic Segment
Innovators and Achievers
Innovators
Successful, Sophisticated,
active consumers
Prefer Niche-oriented
Products and Services

Achievers
Successful, goal oriented
consumers
Prefer Premium Products to
demonstrate success

Psychographic Segment
Thinkers and Experiencers
Thinkers
Mature, satisfied and
reflective consumers
Prefer value for product

Experiencers
Young Enthusiastic and
impulsive consumers

Behavioral Segments
Needs and Benefits
Needs

Safety
Convenient
Luxury
Reliability
Sense of Achievement

Benefits

Speed
Expression of High status
Fashionable
Full automatic

Behavioral Segments
User and Usage
Occasions
New year, Chritmas, Diwali
etc.
User Status
Non-Users
Ex-Users
Potential users
First time users
Regular users
User Rate

Behavioral Segments
Degree of Loyalty
Hard-core loyalty
Stick to same brand at every
step

Split loyalty
Would chose among 2-3 brands
only

Shifting loyalty
Shifts between brands

Switchers loyalty
No loyalty with any brand

Strengths of BMW
BMW and Segmenting goes hand in hand.
BMW has been mark of Performance,
service and Exclusivity
BMW started off as symbol of success for
Baby boomers
By 1990s changed products to suit every
selected segment
BMW has been syncing up the needs of
the Segment
It nurtures its loyal customers and
continues to research, innovate and reach
out to specific groups year after year

Why BMW in 21st Century

BMW Mini to convert ability of
potential customers to buy
Expanded and Redesigned
previous models
BMW I series to fulfil E-car
segment
Advanced premium cars to set
standard for elegance and
sophistication with
performance and luxury
Royle Royce models for very
wealthiest upper conservative

BMW and Luxury car Market

BMW is in close fight with
Mercedes for number position
with 16.6% market share
Mercedes, BMW, Audi,
Infinti,Porsche are major
player with different selective
segments
BMW was used to be King of
Castles

Problems for BMW

Tough competition form
Mercedes. Audi and other
luxury cars
Higher price
High cost to ensure
product diversification.
Nearly niche product line
specifically for richer
segment people.
Historical yuppie-car
image

BMW and Social Media

Visibility of BMW stands at 2nd
place after Mercedes with
around 2crore likes on Facebook
Advertisement of BMW gives
the Sheer feel in person
It has moved to Sheer Driving
Pleasure from the Ultimate
Driving Machine

BMW and Advertisement

BMW advertise its brand
and product through
effective videos and print
media
Here this video has about
15 million views on
youtube

BMW not trying to be

everybody's darling

BMW Logo
Does it Look like White blades of
Propeller against blue sky
May be! But it is meant to show the
colors of the free state of Bavaria
Quality Exclusivity performance and
sheer driving pleasure
Most recognizable logos, right up there
with coke bottle

Summary
Different Types of Market
Segmentation
Selective targeting by BMW
BMW Strength and Weakness
Advertisement by BMW
BMW Logo

DISCLAIMER
Created by Pankaj
Kumar,
IIT Madras, during a
marketing Internship
under Professor Sameer
Mathur, IIM Lucknow