BMW Segmentation, Targeting and Positioning
BMW segmentation, targeting and positioning can be specified as the base of the marketing efforts of the company. BMW, as well as, any other business entity has to divide population into different categories according to a set of certain criteria and develop products and services that are particularly attractive to this specific group. This marketing process is known as segmentation, targeting and positioning. Segmentation, targeting and positioning is important because businesses cannot offer products and services that are attractive to all members of population in an equal manner. Segmentation implies dividing potential customers into different groups according to certain criteria such as age, social class, lifestyle etc. Segmentation can be divided into four types: demographic, behavioral, and psycho-graphic.
Segmentation stage is followed by targeting and this stage is associated with selection of specific group(s) as a target customer segment. Positioning is the last stage in segmentation, targeting and positioning and this stage involves selection of the marketing mix that is relevant to the chosen target customer segment in the best possible manner.
BMW Group uses mono-segment type of positioning and accordingly, the company makes an appeal to a single customer segment. In other words, BMW Group product portfolio only comprises expensive vehicles at a premium level and the company does not have budget vehicles in its portfolio to target individuals and households with a smaller budget.
The following table illustrates BMW segmentation, targeting and positioning:
| Type of segmentation | Segmentation criteria | BMW Group target segment | ||
| BMW | MINI | Rolls-Royce | ||
| Geog-raphic | Region | Domestic/international | Domestic/international | Domestic/international |
| Density | Urban/rural | Urban | Urban | |
| Demog-raphic | Age | 20-65 | 25-45 | 40+ |
| Gender | Males & Females | Males & Females | Males & Females | |
| Life-cycle stage | Bachelor StageNewly MarriedCouples
Full Nest I Full Nest II Full Nest III Empty Nest I Empty Nest II Solitary Survivor I Solitary Survivor II |
Bachelor StageNewly MarriedCouples
Full Nest I
|
Full Nest IIFull Nest IIIEmpty Nest I
Empty Nest II Solitary Survivor I Solitary Survivor II |
|
| Income | High | High | High | |
| Occupa-tion | Professionals & executives | Professionals & executives | Professionals & executives | |
| Behavi-oral | Degree of loyalty | ‘Hard core loyals”Soft core loyals”Switchers’ | ‘Soft core loyals”Switchers’ | ‘Hard core loyals’ |
| Benefits sought | ReliabilitySense of achievementSpeed | ReliabilitySense of achievementSpeed | ReliabilitySense of achievementExpression of high status | |
| Persona-lity | Determined and ambitious | Easygoing | Determined and ambitious | |
| User status | non-usersregular users,ex-users | potential users, first-time users | first-time users regular users | |
| Psychographic | Social class | Middle classUpper class | Middle class | Upper class |
| Lifestyle[1] | AspirerSucceeder | ExplorerReformer | Resigned | |
BMW segmentation, targeting and positioning
It has to be acknowledged that segmentation, targeting and positioning for BMW presented in Table above is conducted in a broad manner, without making distinctions between various models of a particular brand. Each of the brands within BMW Group can be subjected to further segmentation, targeting and positioning as well.
For example, table above categorizes MINI target customer segment as 25-45 year-old males and females within Full Nest 1 life-cycle (married couple and youngest child under six) with a high loyalty to the car as a product, but not currently using MINI products. However, specific models such as MINI Roadster, MINI Clubman, and MINI John Cooper Works that belong to the same MINI brand have been developed for different customer segments.
BMW Group Report constitutes a comprehensive analysis of marketing strategy and business strategy of BMW Group. The report illustrates the application of the ma22jor analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on BMW Group. Moreover, the report contains analysis of BMW Group’s leadership and organizational structure and discusses the issues of corporate social responsibility.
[1] According to Cross Cultural Consumer Characterization by Young & Rubican