BMW Marketing Excellence


Bayern Motoren Werke AG (BMW) is a German motorcycle, automobile, and engine-manufacturing organization that came into operation back in the year 1916 (Papasolomou & Kitchen, 2011). BMW has been globally known for the way that it uses segmentation to produce and market its products. This paper will focus on the assessment of BMW’s marketing and segmentation and make the necessary recommendations on what can be done to improve.

Question One: How BMW Segments its Consumers

It has been documented that BMW experienced explosive growth when it managed to target a particular market segment successfully (Müller-Ötvös, Robertson & Segler, 2005). BMW segments its consumers majorly based on their demographic, psychographic, as well as behavioral factors. From the case, BMW started targeting consumers who wanted their car to depict their show off their success. Precisely, BMW targets the consumers who are from the upper class because they are the ones who would not only find BMW to be affordable, but they would also appreciate that it is a masterpiece (Müller-Ötvös, Robertson & Segler, 2005). BMW has managed to position itself as being a symbol of high performance, technologically advanced, quality as well as exclusive automobile brand (Müller-Ötvös, Robertson & Segler, 2005). They wanted their consumers to acquire benefits of quality, reliability, performance, as well as superiority from using their products.

Question Two: What Does BMW Do Well in Marketing Segment Group

Mainly, BMW did well in marketing each of the segment groups by giving every group exactly what they needed (Blunck, 2014). For example, the company developed a lower-priced X1 SUV and 1 Series that targeted the ‘modern mainstream,’ which is the group of consumers who were active and family-focused, but they had avoided acquiring BMW because of the premium costs (Kotler & Keller, 2016). Therefore, the company managed to reach such a group of people with its sporty design, lower price, and luxurious brand. Relatedly, BMW redesigned the 7 Series to target the group of people that they termed as ‘upper conservatives’ who do not like the sportier cars and thus added some electronic components to it to provide luxury and comfort which met their needs (Kotler & Keller, 2016).

Areas of Improvement

BMW would strive to improve its marketing strategy by trying to target the middle class and females as well. From the case study, BMW has mainly positioned its brand as being luxurious, which means that although the middle-class set of people would want to own one, they may not be able because of the prices. BMW’s significant competitors, such as Mercedes and Jaguar, are coming down to trying to reach these consumers, which means that BMW might lose its market share; it continues to lock out people from this class (Atwal & Williams, 2017). Also, BMW would try and target the females as well. Most of the cars appear sporty and more appealing mostly to men as compared to females. Most females would prefer less-complicated cars with some beautiful and smooth features (Atwal & Williams, 2017). Therefore, BMW would consider tapping more into this market in the future.

Question Three: Should BMW Change Its Tagline

BMW’s tagline is ‘The Ultimate Driving Machine’ (Kotler & Keller, 2016). In my opinion, no, BMW should not change this tagline. This tagline is what has been able to define the BMW cars perfectly, given that they were exceptional in both design and performance. The cars have great engines that have been designed for an excellent performance. The tagline is also commanding its position within the market, which is true; it holds a strong and high position in the market. The tagline speaks about not only driving a car but a machine which gives such a thrilling feeling to be behind its wheels.

Potential Issues and Challenges

From the case study, the kind of cars that BMW continues to manufacture greatly helps in fulfilling the needs of their potential clients. However, the challenges that BMW may have to cope with include the increase of automated driving, electric cars as well as new models of cars that are coming up by the day, thereby bringing about the new competition. BMW would also face some traditional uncertainties regarding changing lifestyles, consumer demand as well as fuel prices.


Innovation is one of the other options for coping with the existing challenges. For BMW to manage to keep up with the current competition and the rise in automated driving, they would need to be innovative along those lines and see how they would make their cars to be a lot more automated (Papasolomou & Kitchen, 2011). Building models of vehicles that are more flexible in that they could be customized easily would also be a plus for their marketing strategy. Consumers would love cars that are easy to be customized to match their personality and liking. Partnerships, mergers, and acquisitions with other car models may also be an alternative for making BMW stay ahead of the competition because, by doing so, they would be able to expand the market share even further (Blunck, 2014).


The best recommendation for the alternatives is innovative. BMW would invest in research and development, whereby they would come up with new and unique features along the lines of automation driving. Being innovative means being unique and identifying that which makes it stand out (Walter, Cleff & Chu, 2013). When this is determined, then BMW would gain the all-important competitive edge that would make it stay up ahead in its industry.

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