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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 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 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
• Fast Stylish Automated Advance cars
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
• Pareto 80-20 Rule
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
• 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
DISCLAIMER

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Market Segmentation and Targeting with BMW

  • 2. 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"
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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 
  • 8. Psychographic Segment Thinkers and Experiencers • Thinkers • Mature, satisfied and reflective consumers • Prefer value for product • Experiencers • Young Enthusiastic and impulsive consumers
  • 9. Behavioral Segments Needs and Benefits • Needs • Safety • Convenient • Luxury • Reliability • Sense of Achievement • Benefits • Speed • Expression of High status • Fashionable • Full automatic
  • 10. 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 • Pareto 80-20 Rule
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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”
  • 16. 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
  • 17. 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
  • 18.
  • 19. • 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
  • 20. • Different Types of Market Segmentation • Selective targeting by BMW • BMW Strength and Weakness • Advertisement by BMW • BMW Logo Summary
  • 21. Created by Pankaj Kumar, IIT Madras, during a marketing Internship under Professor Sameer Mathur, IIM Lucknow DISCLAIMER