Review the “Marketing Excellence: BMW” below. This is comprised of two parts; one part respond to questions, and the other to complete a case analysis.
Evaluate this case, and respond to each of the following questions using both theory and practical managerial thinking.
Part 1 response must be at least two pages in length. Follow APA Style when creating citations and references for this assignment.
Complete a case analysis of BMW. This requires that you conduct research on BMW beyond the case study material in the textbook. In the case analysis, you will look at the situational analysis, problem, and alternatives, and you will provide a recommendation. Refer to the instructions below as you construct your analysis.
In order to successfully complete Part 2 of this case study, review any video database or learning guides.
Part 2 must be at least four pages in length. Follow APA Style when creating citations and references for this assignment. Support Part 2 with at least four sources. Part 1 and Part 2 will be submitted in one document.
Marketing Excellence BMW
BMW is the ultimate driving machine. Manufactured by the German
company Bayerische Motoren Werke AG, BMW stands for both
performance and luxury. The company was founded in 1916 as an
aircraft–engine manufacturer and produced engines during World Wars I
and II. It evolved into a motorcycle and automobile maker by the mid–
20th century, and today it is an internationally respected company and
brand with $106 billion in sales in 2012.*
* BMW Group includes BMW, MINI, and Rolls–Royce brands.
BMW’s logo is one of the most distinctive and globally recognized
symbols ever created. The signature BMW roundel looks like a spinning
propeller blade set against a blue sky background—originally thought to
be a tribute to the company’s founding days as an aircraft–engine
manufacturer. Recently, however, a New York Times reporter revealed
that the logo, which features the letters BMW at the top of the outer ring
and a blue–and–white checkered design in the inner ring, was
trademarked in 1917 and meant to show the colors of the Free State of
Bavaria, where the company is headquartered.
BMW’s growth exploded in the 1980s and 1990s, when it successfully
targeted the growing market of baby boomers and professional yuppies
who put work first and wanted a car that spoke of their success. BMW
gave them sporty sedans with exceptional performance and a brand that
stood for prestige and achievement. The cars, which came in a 3, 5, or 7
Series, were basically the same design in three sizes. It was at this time
that yuppies made Beemer and Bimmer the slang terms for BMW’s cars
and motorcycles, popular names still used today.
At the turn of the century, consumers’ attitudes toward cars changed.
Research showed that they cared less about the bragging rights of the
BMW brand and instead desired a variety of design, size, price, and
style choices. As a result, the company took several steps to grow its
product line by targeting specific market segments. This resulted in
unique premium–priced cars such as SUVs, convertibles, and roadsters,
as well as less expensive compact cars like the 1 Series. In addition,
BMW redesigned its 3, 5, and 7 Series cars, making them unique in
appearance yet maintaining their exceptional performance. BMW’s full
range of cars now includes the 1 Series, 3 Series, 5 Series, 6 Series, 7
Series, X Series, Z4 Roadster, M Series, Hybrids, and BMWi.
BMW created the lower–priced 1 Series and X1 SUV to target the
“modern mainstream,” a group who are also family–focused and active
but had previously avoided BMWs because of their premium cost. The 1
Series reached this group with its lower price point, sporty design, and
luxury brand. The X1 and X3 also hit home with a smaller, less
expensive SUV design.
The redesign of the 7 Series, BMW’s most luxurious car, targeted a
group called “upper conservatives.” These wealthy, traditional
consumers don’t usually like sportier cars, so BMW added electronic
components such as multiple options to control the windows, seats,
airflow, and lights, a push–button ignition, and night vision, all controlled
by a point–and–click system called iDrive. These enhancements added
comfort and luxury, attracting drivers away from competitors like Jaguar
BMW successfully launched the X Series by targeting “upper liberals”
who had achieved success in the 1990s and gone on to have children
and take up extracurricular activities such as biking, golf, and skiing.
These consumers needed a bigger car for their active lifestyles and
growing families, so BMW created a high–performance luxury SUV.
BMW refers to its SUVs as sport activity vehicles in order to appeal even
more to these active consumers.
BMW introduced convertibles and roadsters to target “post–moderns,” a
high–income group that continues to attract attention with more showy,
flamboyant cars. BMW’s 6 Series, a flashier version of the high–end 7
Series, also targeted this group.
BMW uses a wide range of advertising tactics to reach each of its target
markets. However, the company’s U.S. tagline, “The Ultimate Driving
Machine,” has remained consistent since it first launched there in 1974.
During that time, sales have grown to more than 300,000 units in the
United States in 2013. In recent years, BMW has returned to
emphasizing performance over status, stating, “We only make one thing,
the ultimate driving machine.”
BMW owners are very loyal to the brand, and enthusiasts host an annual
Bimmerfest each year to celebrate their cars. The company nurtures
these loyal consumers and continues to research, innovate, and reach
out to specific segment groups year after year.