This document discusses BMW, a German luxury automaker founded in 1916. It owns Mini and Rolls-Royce brands. BMW's mission is to be a leading provider of premium products and services. Its vision is to inspire mobility and shape future premium mobility. The company aims to profitably grow in premium auto segments globally. It selectively targets upper-income consumers to build a strong brand associated with success. While this limits revenue, it creates loyalty. The document examines pros, cons, and opportunities for BMW, concluding its segmentation was not too exclusive during an economic recession when loyal customers still purchased BMWs.

1. Arvin C. Camacho
Norwilyne Joy S. Garcia
Karla Mae S. Jalad
MM 230 - Marketing Management
University of the Philippines
Prof. Mita Angela M. Dimalanta

2. INDUSTRY: Automotive
COMPANY PROFILE:
A German luxury vehicles, motorcycle, and
engine manufacturing company founded in
1916. BMW owns Mini cars and is the parent
company of Rolls-Royce Motor Cars. It is
one of the best-selling luxury automakers
in the world.

3. MISSION:
The BMW Group is the world's
leading provider of premium
products and premium services
for individual mobility.

4. VISION:
We are Number ONE.
We inspire people on the move.
We shape tomorrow’s individual
premium mobility.

5. COMPANY POSITION:
BMW Group is now one of the ten
largest car manufacturers in the
world and possesses three of the
strongest premium brands in the
car industry.

6. COMPANY POSITION:
Aims to generate profitable growth and
above-average returns by focusing on the
premium segments of the international
automobile markets. BMW’s brand is
extremely strong and is associated with
high performance, engineering excellence
and innovation.

7. What are the pros and cons to
BMWs selective targeting?
PROS CONS
Creates a strong brand value which led to
the belief that owning a BMW is a sign of
lavish lifestyle and
professional success
Failure to target the masses pose a
threat in terms of revenue with
competition from other automobile
industries
Builds a strong reputation among
customer groups particularly for a
specific product area
Threat of substitute products
Boosts brand loyalty Limited profit options as cars are
produced for specific classes in society
Recognises customer differences and
identified their needs
Market segment is exclusive
Provides responsive service
support
Diversifies firm's risks
Targets those who would likely
purchase their product
Encourages customer loyalty

8. What has BMW done well over
the years and where could it
improve?
BMW creates cars whose style,
design, and features fit the
characteristics of their identified
target groups. They maintained a
strong brand reputation over the
years by using a wide range of
advertising tactics to reach their
target market. Their strategy not
only promoted brand loyalty but
increased the company's
production as well.
BMW faces risks in terms of
revenue with competition from rival
companies whose target market is
less selective. BMW can improve
sales if they expand their market to
average income consumers with
opportunities in developing
countries. With the rapid change in
the environment and the rise of
competitors, they could boost their
research to cope faster with
current trends, improve services,
and maintain loyal customers.

9. BMW sales slipped during the
worldwide recession. Is their
segmentation strategy too
exclusive?
No, the Group’s segmentation strategy is not too
exclusive. In fact, their market segmentation
worked to their advantage during the height of
economic decline.
The decline in sales is due to global economic
crisis and not the loss in the target market. On
the contrary, the Group’s segmentation strategy
worked in their favor since they have targeted
upper-class consumers who would not hesitate
to buy luxury cars even in tough times.
Expanding their market to the masses would
have backfired because doing so might change
the perception loyal customers regarding BMW’s
brand value. It was a wise decision for the Group
to stick with their loyal customers.

10. REFERENCES:
• Bloomberg. (2009, March 16). BMW Shifts US Strategy Towards Used Cars
During Recession. Retrieved October 5, 2016, from Business Standard:
http://www.business-standard.com/article/companies/bmw-shifts-us-strategy-
towardsused-cars-during-recession-109031600006_1.html
• BMW. (n.d.). BMW Group. Retrieved October 5, 2016, from BMW Group:
https://secure.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/unt
ernehmen/historie/meilenstei ne/meilensteine.html
• Innovation Leader. (n.d.). BMW. Retrieved October 5, 2016, from Innovation
Leaders:http://innovationleaders.org/pdfprofiles/BMW%20Profile%202007%20(
HR).pdf?subject=BMW%20Company%20Profile
•Just Auto Editorial Team. (2010, January 29). GERMANY: BMW Sales Slipped
in '09; Expects Volume Growth in 2010. Retrieved October 5, 2016, from Just
Auto: http://www.just-auto.com/news/bmw-sales-slipped-in-09-expectsvolume-
growth-in-2010_id102963.aspx
•Wikipedia. (n.d.). Retrieved October 5, 2016, from Wikipedia:
https://en.wikipedia.org/wiki/BMW