12:16 ON{ l 61% iASSIGNMENT 1BMWBMW is the ultimate driving machine. Manufactured by the German company Bayerische MotorenWerke AG, BMW stands for both performance and luxury. The company was founded in 1916 as anaircraft-engine manufacturer and produced engines during World Wars I and II. It evolved into amotorcycle and automobile maker by the mid-20th century, and today it is an internationallyrespected company and brand with $106 billion in sales in 2012.* BMW's logo is one of the mostdistinctive and globally recognized symbols ever created. The signature BMW roundel looks like aspinning propeller blade set against a blue sky background-originally thought to be a tribute to thecompany's founding days as an aircraft-engine manufacturer. Recently, however, a New York Timesreporter revealed that the logo, which features the letters BMW at the top of the outer ring and ablue-and-white checkered design in the inner ring, was trademarked in 1917 and meant to show thecolors of the Free State of Bavaria, where the company is headquartered. BMW's growth explodedin the 1980s and 1990s, when it successfully targeted the growing market of baby boomers andprofessional yuppies who put work first and wanted a car that spoke of their success. BMW gavethem sporty sedans with exceptional performance and a brand that stood for prestige andachievement. The cars, which came in a 3, 5, or 7 Series, were basically the same design in threesizes. It was at this time that yuppies made Beemer and Bimmer the slang terms for BMW's cars andmotorcycles, popular names still used today. At the turn of the century, consumers' attitudes towardcars changed. Research showed that they caredless about the bragging rights of the BMW brand andinstead desired a variety of design, size, price, and style choices. As a result, the company tookseveral steps to grow its product line by targeting specific market segments. This resulted in uniquepremium-priced cars such as SUVS, convertibles, and roadsters, as well as less expensive compactcars like the 1 Series. In addition, BMW redesigned its 3, 5, and 7 Series cars, making them unique inappearance yet maintaining their exceptional performance. BMW's full range of cars now includesthe 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 groupwho are also family-focused and active but had previously avoided BMWS because of their premiumcost. The 1 Series reached this group with its lower price point, sporty design, and luxury brand. TheX1 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, traditionalconsumers don't usually like sportier cars, so BMW added electronic components such as multipleoptions to control the windows, seats, airflow, and lights, a push-button ignition, and night vision, allcontrolled by a point-and-click system called iDrive. These enhancements added comfort and luxury,attracting drivers away from competitors like Jaguar and Mercedes. BMW successfully launched theX Series by targeting "upper liberals" who had achieved success in the 1990s and gone on to havechildren and take up extracurricular activities such as biking, golf, and skiing. These consumersneeded 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 evenmore 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, flamboyantcars. BMW's 6 Series, a flashier version of the high-end 7 Series, also targeted this group. BMW usesa 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 in1974. During that time, sales have grown to more than 300,000 units in the United States in 2013. Inrecent years, BMW has returned to emphasizing performance over status, stating, "We only makeone thing, the ultimate driving machine." BMW owners are very loyal to the brand, and enthusiastshost an annual Bimmerfest each year to celebrate their cars. The company nurtures these loyalconsumers and continues to research, innovate, and reach out to specific segment groups year afteryear.How does BMW segment its consumers?Why does this work for BMW?What does BMW do well to market to each segment group?Where could it improve its marketing strategy?

Question

12:16 ON{ l 61% iASSIGNMENT 1BMWBMW is the ultimate driving machine. Manufactured by the German company Bayerische MotorenWerke AG, BMW stands for both performance and luxury. The company was founded in 1916 as anaircraft-engine manufacturer and produced engines during World Wars I and II. It evolved into amotorcycle and automobile maker by the mid-20th century, and today it is an internationallyrespected company and brand with $106 billion in sales in 2012.* BMW's logo is one of the mostdistinctive and globally recognized symbols ever created. The signature BMW roundel looks like aspinning propeller blade set against a blue sky background-originally thought to be a tribute to thecompany's founding days as an aircraft-engine manufacturer. Recently, however, a New York Timesreporter revealed that the logo, which features the letters BMW at the top of the outer ring and ablue-and-white checkered design in the inner ring, was trademarked in 1917 and meant to show thecolors of the Free State of Bavaria, where the company is headquartered. BMW's growth explodedin the 1980s and 1990s, when it successfully targeted the growing market of baby boomers andprofessional yuppies who put work first and wanted a car that spoke of their success. BMW gavethem sporty sedans with exceptional performance and a brand that stood for prestige andachievement. The cars, which came in a 3, 5, or 7 Series, were basically the same design in threesizes. It was at this time that yuppies made Beemer and Bimmer the slang terms for BMW's cars andmotorcycles, popular names still used today. At the turn of the century, consumers' attitudes towardcars changed. Research showed that they caredless about the bragging rights of the BMW brand andinstead desired a variety of design, size, price, and style choices. As a result, the company tookseveral steps to grow its product line by targeting specific market segments. This resulted in uniquepremium-priced cars such as SUVS, convertibles, and roadsters, as well as less expensive compactcars like the 1 Series. In addition, BMW redesigned its 3, 5, and 7 Series cars, making them unique inappearance yet maintaining their exceptional performance. BMW's full range of cars now includesthe 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 &#34;modern mainstream,&#34; a groupwho are also family-focused and active but had previously avoided BMWS because of their premiumcost. The 1 Series reached this group with its lower price point, sporty design, and luxury brand. TheX1 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 &#34;upper conservatives.&#34; These wealthy, traditionalconsumers don't usually like sportier cars, so BMW added electronic components such as multipleoptions to control the windows, seats, airflow, and lights, a push-button ignition, and night vision, allcontrolled by a point-and-click system called iDrive. These enhancements added comfort and luxury,attracting drivers away from competitors like Jaguar and Mercedes. BMW successfully launched theX Series by targeting &#34;upper liberals&#34; who had achieved success in the 1990s and gone on to havechildren and take up extracurricular activities such as biking, golf, and skiing. These consumersneeded 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 evenmore to these active consumers. BMW introduced convertibles and roadsters to target &#34;post-moderns,&#34; a high-income group that continues to attract attention with more showy, flamboyantcars. BMW's 6 Series, a flashier version of the high-end 7 Series, also targeted this group. BMW usesa wide range of advertising tactics to reach each of its target markets. However, the company's U.S.tagline, &#34;The Ultimate Driving Machine,&#34; has remained consistent since it first launched there in1974. During that time, sales have grown to more than 300,000 units in the United States in 2013. Inrecent years, BMW has returned to emphasizing performance over status, stating, &#34;We only makeone thing, the ultimate driving machine.&#34; BMW owners are very loyal to the brand, and enthusiastshost an annual Bimmerfest each year to celebrate their cars. The company nurtures these loyalconsumers and continues to research, innovate, and reach out to specific segment groups year afteryear.How does BMW segment its consumers?Why does this work for BMW?What does BMW do well to market to each segment group?Where could it improve its marketing strategy?

Accepted Answer

BMW is regarded as the ultimate driving machine and stands for both performance and luxury. This…