Hallo Leute!Möchten ein Auto zu sehen

Its not just a car…

...its the ULTIMATE DRIVING MACHINE

BMW (LUXURY VEHICLES COMPANY)

BMW

CEO: HAROLD KRUGER

FOUNDED: MARCH 7, 1916

HEADQUARTERS: MUNICH, GERMANY

• STANDS FOR PERFORMANCE AND LUXURY

• FOUNDED AS AN AIRCRAFT ENGINE MANUFACTURER

• BY THE MID 20TH CENTURY, EVOLVED INTO MOTORCYCLE AND AUTOMOBILE MANUFACTURERBMW

WELL EVOLUTION!

THE BABY STROLLER

:-p

MOST DISTINCT FEATURE: ITS LOGO

MARKETING STRATEGYTARGETED BABY BOOMERS & PROFESSIONAL YUPPIES (NICHE MARKETING)*

GAVE THEM A CAR THAT SPOKE OF THEIR SUCCESS

* “NICHE MARKETING REFERS TO COMPETING WITH A NARROWLY DEFINED MARKET SEGMENT WITH A SPECIALISED OFFERING”

CAME IN 3,5 AND 7 SERIES

AT THE TURN OF THE CENTURY

CHANGE IN CONSUMER ATTITUDE

CARED LESS ABOUT THE BRAGGING RIGHTS OF THE BMW BRAND

FOCUSSED MORE ON DESIGN, VARIETY, STYLE AND CHOICE

THUS, THE COMPANY TOOK SEVERAL STEPS

GREW ITS PRODUCT LINE

TARGETED ON SPECIFIC MARKET SEGMENTS; A PARTICULAR SOCIO- ECONOMIC CLASS…

…THE WEALTHIER SEGMENT!!!

BMW BROUGHT IN SUVs, CONVERTIBES AND ROADSTERS TO CAPTURE A GREATER

MARKET SHARE…

…WOW!!!

USED A WIDE RANGE OF ADVERTISING TECHNIQUES

TAGLINE “THE ULTIMATE DRIVING EXPERIENCE”

BMW’s FACEBOOK

PAGE

NEWSPAPER ADS

HOSTS THE BIMMERFEST EVERY YEAR <3

BIMMERFEST!

RESULT:LOYAL CUSTOMER BASE

& A FILTHY RICH COMPANY

Q. WHAT ARE THE PROS & CONS TO BMW’s SELECTIVE TARGET MARKETING? WHAT HAS THE FIRM DONE WELL OVER THE YEARS AND WHERE COULD IT IMROVE?

PROS• CONNECTS WITH THE

CUSTOMERS

• BOOSTS BRAND LOYALTY

• NO COMPROMISE ON THE QUALITY OF TOP MODELS

BOOSTS BRAND LOYALTY

SUPERIOR QUALTY

CONS• LOTS OF RESEARCH AND EFFORTS LEAD

TO PUSHING UP THE PRICES

• LOW CUSTOMER BASE DUE TO THE HIGH PRICES

• HIGH RISK OF FAILURE OF A MODEL

• ADVERSE IMPACT DURING RECESSION

…MEANWHILE THE POOR

WHAT IT HAS DONE WELL..

• IDENTIFIED NEW SEGMENTS AND MADE CARS FOR THEM

• BUILT AN IDENTITY AND BRAND FOR ITS CARS

• MAINTAINING THE QUALITY STANDARDS FOR ITS AUTOMOBILES

MAINTAINED THE STANDARD OF ITS AUTOMOBILES

WHAT IT CAN IMPROVE UPON..

• TARGET MASSES WITH MORE AFFORDABLE MODELS

• IT COULD COME UP WITH SUPER CARS

THE TRAGEDY

Q.2 BMW’s SALES SLLIPPED DURING THE WORLDWIDE RESESSION IN 2008 AND 2009. IS ITS SEGMENTATION STRATEGY TOO SELECTIVE? WHY OR WHY NOT?

• The segmentation strategy of BMW is too selective• Target segments: “Modern mainstream” “Post moderns” High income group people• BMW is an epitome of luxury, loyalty, success and

high esteem • Hence the segmentation strategy had to be selective

SUMMARY CASE STUDY ON BMW

• LUXURY VEHICLE COMPANY• GERMAN ORIGIN• CONTINUOUSLY EVOLVING• INVESTS LARGELY ON ADVERTISING• HAS MAINTAINED HIGH QUALITY• MUST BRING IN AFFORDABLE MODELS• WILL HELP INCREASE MARKET SHARE

THANK YOU!

DISCLAIMERCREATED BY SHIVANGI PANDEY, NMIMS,MUMBAI DURING AN INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM LUCKNOW!

PROF.SAMEER MATHUR