of the Free State of
and meant to show the colors
Marketing Excellence Bavaria, where the company is headquartered.
1980s and
BMW's growth exploded in the
>> BMW 1990s, when it successfully targeted the growing
BMW is the ultimate driving machine. Manufactured market of baby boomers and professional yuppies
who put work first and wanted a car that spoke
of
by the German company Bayerische Motoren VWerke
their success. BMW gave them sporty sedans with
AG, BMW stands for both performance and luxury.
The company was founded in 1916 as an aircraft- exceptional performance and a brand that stood for
and produced engines during
manufacturer prestige and achievement. The cars, which came in
engine 7 Series, were basically the same design
World Wars and II. It evolved into a motorcycle and
a 3, 5, or
I in three sizes. It was at this time that yuppies made
automobile maker by the mid-20th century, and to-
Beemer and Bimmer the slang terms for BMWs
day it is internationally respected company and
an
still used
brand with $106 billion in sales in 2012. cars and motorcycles, popular names
BMW's logo is one of the most distinctive and today.
created. The sig- At the turn of the century, consumers' attitudes
globally recognized symbols ever
toward cars changed. Research showed that trey
nature BMW roundel looks like a spinning propeller
cared less about the bragging rights of the BMW
blade set against a blue sky background-originally
brand and instead desired a variety of design. sze.
thought to be a tribute to the company's founding
as an aircraft-engine manufacturer. Recently, price, and style choices. As a result, the comcany
days took several steps to grow its product line by ta
however, New York Times reporter revealed that
a
the logo, which features
the letters BMW at the top ing specific market segments. This resulted in ture
blue-and-white checkered premium-priced cars such as SUVs, convert
of the outer ring and a
trademarked in 1917 and roadsters, as well as less expensive com
design in the inner ring, was
cars like the 1 Series. In addition, BMW redes
includes BMW, MINI, and Rolls-Royce brands. its 3, 5, and 7 Series cars, making them unid
BMW Group
IDENTIFYING MARKET SEGMENTS AND TARGETS CHAPTER9 295
nearance yet maintairning their exceptional perfor- flamboyant cars. BMW's 6 Series, flashier version
a
ance. BMW's full range of cars now includes the of the
Series, 3 Series, 5 Series, 6 Series, 7 Series, X high-end 7 Series, also targeted this group.
BMW uses a wide range of advertising tactics to
eries. Z4 Roadster, M Series, Hybrids, and BMWi.
reach each of its target markets. However, the com-
BMW created the lower-priced Series and X1
1
U.S. tagiine, The Ultimate Driving Machine,"
UV to target the "modern mainstream," a group pany's
has remained consistent since it first launched there
ho are also family-focused and active but had in 1974. During that time, sales have grown to more
reviously avoided BMWs because of their premium than 300,000 units in the United States in 2013. In
ost. The 1 Series reached this group with its lower recent years, BMW has returned to emphasizingg
orice point, sporty design, and luxury brand. The X1 performance over status, stating, "We only make one
and X3 also hit home with a smaller, less expensive thing, the ultimate driving machine."
SUV design. BMW owners are very loyal to the brand, and
The redesign of the 7 Series, BMW's most enthusiasts host an annual Bimmerfest each year
luxurious car, targeted a group called "upper con- to celebrate their cars. The company nurtures these
servatives." These wealthy, traditional consumers loyal consumers and continues to research, inno
don't usually like sportier cars, so BMW added vate, and reach out to specific segment groups year
electronic components such as multiple options to after year.
control the windows, seats, airflow, and lights, a
push-button ignition, and night vision, all controlled
Questions
by a point-and-click system called iDrive. These
enhancements added comfort and luxury, attract 1. How does BMW segment its consumers? Why
ng drivers away from competitors like Jaguar and does this work for BMW?
Mercedes. 2. What does BMW do well to market to each seg-
BMW successfully launched the X Series by tar- ment group? Where cOuld it improve its
geting "upper liberals" who had achieved success in
market
ing strategy?
the 1990s and gone on to have children and take up
3. Should BMW ever change its tagline, The
extracurnicular activities such as biking. golf, and ski-
Uitimate Driving Machine"? Why or why not?
ing. These consumers needed a bigger car for their
active lifestyles and growing families, so BMW cre- Sources: Mark Clothier, "Mercedes Outasts BMW's Late Surge to Capture U.S. Luxury
a high-performance luxury SUV. BMW refers to Crown," [Link], January 4, 2014; Stephen Williams, "BMW Roundel: Not
ated Borm from Planes, New York Times, January 7, 2010; Gail Edmondson, "BMW: Crashing
tsSUVs as sport activity vehicles in order to appeal the Compact Market," BusinessWeek, June 28, 2004; Neil Boudette, "BMW's Push to
even more to these active consumers. Broaden Line Hits Some Bumps in the Road," Wall Street Journal, January 10, 2005;
BMW introduced convertibles and roadsters to Boston Chapter BMW Club Car of America, [Link] Rupal Parekh
BMW Changes Gears with New Campaign from KBS8P" Advertising Age, January 6,
target "post-moderns," a high-income group that 2012: BMWcom: [Link], BMW 2013 Anmual Report. Company
continues to attract attention with more showy
History