The BMW automobile has stood as a leader of luxury and makes a statement to those that it passes. With an original target strategy that focused on the wealthy segments of “baby boomers and successful yuppies”, BMW now focuses on a wider marketing strategy. As the catalog of vehicles grows to meet the changing consumer needs, BMW creates more competitors. As the millennium continues, so does the target strategy. Originally targeting a focus group with their 3, 5 and 7 series cars, BMW has changed their segmentation focus of this fleet. The 7 series addresses the “upper conservatives”. The introduction of the 1 series and the X3 SUV targeted the “modern mainstream” group by lowering their entry point into owning a BMW. This group was a larger segment, as it concentrated on the family-focused and budget aware consumer. This was drastic change in segmentation from the 7 series. The “post moderns”, who are the high income, flamboyant consumer segment, is targeted with the 6 series and M class vehicles. The last group that is a segment of the Bayerische Motoren Werke is the “upper liberals”. This segment is generalized as the people who have had success in the 90’s and now have a family or are enjoying the fruits of their labor by enjoying the outdoors. To cater to this segment, BMW has created the X5. The X5 is an SUV that encourages the activity, while providing luxury. By growing their target segments, BMW can create more revenue and reach consumers at different points in their lives. More revenue is achieved by creating a different car for each segment, which has a different overall cost and return on investment. By providing a product for more segments, you attract more customers. The ability to create different products that have a different style and price point also attracts different ages of customers. One can notice from the impressive catalog of vehicles, that each car targets a different age demographic. By starting at a younger demographic, BMW can have multiple purchases along the life of the consumer. As BMW invests in multiple segments, they take on new competitors in each segment. This negative is apparent within the example of a competitor in the “upper conservative” segment is not the same competitor in the “modern mainstream”. Other negatives in the approach taken by BMW are the costs of manufacturing and the costs to market each product. The investment to manufacture different cars is more than in the past, where they where focusing on three automobiles. Now, BMW is manufacturing cars, motorcycles and other vehicles. The cost to market to each of these segments is also a burden on the P&L financial statement. The research and insights that is required to build an advertising campaign is different than in years past. There are many threats to this approach, by taking on new competitors, and may lose its focus. For example, the BMW X3 is attracting the consumer at a lower price point. To do this, they are not delivering the same features as a 7 series. Though the BMW may not include the feature, a competitor that has smaller focus strategy may be able to deliver the “advanced features”. As a consumer, the segment may begin to buy into the competitor. An example of this is the Asian car manufacturers, specifically Kia and/or Hyundai. Both manufacturers deliver a product that delivers quality at a lower cost. They also feature warranties that are better than the BMW brands. By investing in different products, BMW may not be able to react as quickly to changing technologies, trends, consumer needs or competitors. With creating one or two different products for each segment, the risk of being too focused is possible for BMW.
For a luxury automobile company like BMW, I do not believe they are being too selective. The company is able to deliver each of these products and still create $76 billion in revenue. The size of its employee workforce and production
BMW: The Power of Image.
Ellie Pugh, 369732
Interior Design, 2009.
Title: Author: Hemis number: Tutor: Date:
BMW: The Power of Design. Ellie Pugh. 369732. Heather Coleman. January 2009.
To most consumers BMW is simply, a vehicle manufacturer. Is this company another faceless corporation whose only priority is to make its millions? Or have BMW spent the ninety years of their existence building a solid reputation based on quality? This dissertation…
aunching of Bmw Z3 Roadster -Case Study Report
CASE STUDY :
Launching the BMW Z3 Roadster
BMW, a German automobile manufacturer, known for its German engineering and quality, had established itself as a strong brand in the luxury/performance segment in U.S.A. However due to increasing competition from car makers such as infinity, Lexus, Acura, its sales dropped during the period mid 80’s to late 90’s .
The case deals with the launch, of the now infamous BMW Z3 roadster…
An Examination on Social Performance of BMW AG
Corporate Social Responsibility can be defined as performances of businesses in completing good practices and standards to accomplish positive and sustainable results towards business, environment and society (CSR Singapore Compact 2005). Implementation of corporate social responsibility concept within the businesses means the businesses will always try their best to give positive outcomes to the society, which give satisfaction to the people and…
Why has BMW planned to build its second factory in Shenyang, China?
This case study will investigate the car manufacturer BMW and its recent plans to increase production in the Chinese market. BMW is a Transnational Corporation which can be defined as ‘a firm that has the power to coordinate and control operations in more than one country’ (Dicken, 2011, p.110).
The automotive industry for years has been very static, but the automotive power is now shifting. Over the past decade…
BMW Case Study
Bayerische Motoren Werke AG now known as BMW was founded in Germany in 1916. The BMW group began as a manufacturer of engines. In the present day now also manufactures automobiles, motorcycles, software and offers financial services. The case study ‘Exploring Corporate Strategy’ prominently deals with the automobile side of The BMW Group. Within this market BMW trade under three different brands BWM, MINI and Rolls Royce. BMW experienced a failure…
BMW in China: From Entry to Dominance
"In the next five to 10 years, China will be the biggest market for all brands and become a big area of competition," said Christoph Stark, president and CEO of BMW Group Region China to the China Daily reporter. "The most important thing is to be highly flexible and take chances, but also be prepared for some possible downturns in the market," Stark said. "For us the most treasured thing is the brand," he concluded.
Hours later, while sitting…
NAME: AKMAL SYALWANI BINTI IDRIS
MATRIX NO: 2010132513
DATE: 13TH SEPTEMBER 2013
THE IMPACT OF SERVICE QUALITY ON CUSTOMER SATISFACTION IN AUTO BAVARIA, GLENMARIE: AN EMPIRCAL STUDY THROUGH SERVQUAL
This research aims to investigate the relationship between the service quality and customer satisfaction in Auto Bavaria Glenmarie by using SERVQUAL analysis. It also aims to examine the influence and effect of applying quality service towards customer satisfaction…
Identify the two most important functions for business operations at BMW. • Establish the interrelationship between at least two chosen functions above and evaluate how each function operates, interacts and supports to each other in operation. • Bear in mind, your response should relate to the given company BMW in the scenario.
In answering this question, you will have covered the following assessment criterion: • 1.1 Evaluate the interrelationship…
trends in the global car industry and their impact upon the European market.
2. Undertake literature research into engineering and business innovation management.
3. Identify case studies in car innovation management.
4. Compare theoretical models of innovation management with company case studies.
5. Make recommendations regarding the effective management of innovation in the car industry.
1.3 Project Structure
To achieve the aim extensive research has to be undertaken…