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The Ultimate
*Marketing Machine
Bayerische Motoren
Werke
• Founded in 1916
• Originally aircraft engine
manufacturer
• Evolved as performance and
luxury automaker
What’s the secret?
BMW’s sales in 2016 were
Segmentation and
Targeted
Marketing
Luxury – High Premium Cars
Demographic
Segmentation
➜ Baby boomers and professional yuppies
➜ Sporty sedans with exceptional performance
➜ Prestige and achievement
Initially…
➜Care less about bragging rights
➜Variety of design, size, price and
style choices preferred
Times Changed!
How did the strategy change?
EXPANSION OF TARGETED
SEGMENTS
SERIES 1 and X1
“Modern Mainstream”
• Family focused
Value Proposition:
• Lower price point
• Sporty design
• Luxury brand value
7 SERIES
“Upper Conservatives”
• Wealthy and traditional
• Don’t like sportier cars
Value Proposition :
• Comfort
• Luxury
CONVERTIBLES AND
ROADSTERS
“Post Moderns”
• High income
Value Proposition :
• Showy flamboyant cars
Geographic
Segmentation
Where does it sell?
Behavioral
and
Psychographic
Segmentation
Achievers
Who buys it?
Aspirers
Loyal
Image Seekers
Competition
Direct Indirect
Advertising
Strategies
TELEVISION
Print
OPPORTUNIESTHREATS
o Competition
o Price Conscious
Consumer
o Rising environmental
awareness
o Driver-less cars
o Changing lifestyle
Summary
Introduction Segmentation and Targeted Marketing
o Demographic Segmentation
o Geographic Segmentation
o Behavioral and Psychographic
Segmentation
Competition
o Direct
o Indirect
Advertising Strategies
o Print
o Television
Threats and
Opportunities
Created by Shashwat Dixit, Manipal Institute of Technology, Manipal,
during the marketing internship by Professor Sameer Mathur, IIM
Lucknow
Disclaimer

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BMW Case Study