BMWTargeting Segmented Market?

Bayerische Motoren Werke is a German luxury vehicles motorcycle, and engine manufacturing company founded in 1916Luxury cars• 1990s – 10 series models• 2010s – 25 series models• 1974 - 15,000 units sold• 2009 – 2,50,000 units sold2014 Revenue- €80.401 BillionWorldwide 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 Years• 30-40 Years• 40-60 Years• 25-55 Years old

• Life Stage• Marriage

• Newly married• Family

• Kids, Parents• Career Stage

• Highly Successful• Occasion

Demographical SegmentsIncome 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

GenderDifferent attitude and behaviorExclusive and luxury cars – BothSports 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• Fast Stylish Automated Advance cars

Psychographic SegmentInnovators 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 SegmentThinkers and Experiencers

• Thinkers• Mature, satisfied and

reflective consumers• Prefer value for product

• Experiencers• Young Enthusiastic and

impulsive consumers

Behavioral SegmentsNeeds and Benefits

• Needs• Safety• Convenient • Luxury• Reliability• Sense of Achievement

• Benefits• Speed• Expression of High status• Fashionable• Full automatic

Behavioral SegmentsUser and Usage

• Occasions• New year, Chritmas, Diwali etc.

• User Status• Non-Users• Ex-Users• Potential users• First time users• Regular users

• User Rate• Pareto 80-20 Rule

Behavioral SegmentsDegree 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 FacebookAdvertisement of BMW gives the Sheer feel in personIt 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 mediaHere this video has about 15 million views on Youtube

BMW not trying to be everybody's darling

• Does it Look like White blades of Propeller against blue sky• May be! But it 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 the Coke bottle.

BMW Logo

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

Summary

Created by Pankaj Kumar,

IIT Madras, during a marketing Internship under Professor Sameer Mathur, IIM Lucknow

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