When BMW launched the new i8 their intentions wasn’t primarily
to replace obsolete items, but their objective was to have an impact on the
electric car market (especially with up and coming competitors such as Telsa )
and still influence gas operated cars while maintaining the luxury title of the
brand and enforcing their mission statement “ setting standards for the future
today.” The idea generation behind the i8 came essentially from customers,
research and development and competitors. BMW is known for its spacious
vehicles and has received a significant amount of positive feedback from
customers, therefore BMW increased the interior space of the vehicle without
changing the exterior attraction. After research and development BMW designed
the body of the car for its most efficient dynamic performance such as the
lightweight chassis is made mainly from aluminum. The windshield, top, doors
and fenders are made from polycarbonate glass making this car extremely lighter
than usual, also the location of the battery pack in the energy tunnel gives
the vehicle a low center of gravity, enhancing its dynamics. Surprisingly
enough the brainstorming behind the i8 were flawless, leaving the only major issues
for some consumers is just the price alone. BMW released a prototype in 2011 as
an idea but the feedback were so influencing that they were forced to proceed
with their plan which led them in July 2012 BMW i8 won the North American
Concept Vehicle of the Year and the BMW i8 won the 2013 best production preview
vehicle award which made an high demand of the BMW i8 leaving consumers on
their toes. Pricing for the BMW i8 destined for the U.S. market starts at
US$135,925 including destination and handling fees and before any other applicable
incentives. Finally August 15th 2015 the United States was
introduced to the BMW i8.
Saturday, April 30, 2016
Chapter 8 Segmenting and Targeting Markets
Over
the years BMW has branded themselves as a luxury car manufacturer that targets
people typically in their late twenty’s or early thirties, as time went on
other luxury car manufactures developed and for BMW to stay relevant they had
to position themselves in a fashion that not only kept their existing audience
interest but drew new members to their target market. BMW successfully
positioned themselves by adding more variety to their collection without losing
their overall brand but at the same time having a major influence on potential
customers. BMW is the number one premium car manufacturer in the world and
their mission statement is “ setting standards for the future today” which is
essentially saying all their products have the best technology which is true,
but not all tech savvy people live the same life style. So BMW took their
marketing segments one step further and designed segments based on the
lifestyle of the consumer, in three general groups they have diminutive and
fast,
Spacious and relaxed, eco- friendly and non- car lovers
The
marketing segment diminutive and fast is an interesting approach because the
collection is the beginners step entering the social class of BMW and is
usually marketed to the younger section of BMW’s target market such as the
early and mid 20s. Vehicles in this collection are mainly from the 3series and
even some 4series models, which are the least expensive of BMW products and
have the reputation of sport like features, which most young men and women look
for. Being that most people in that age bracket and even some young adults are
constantly on their phone BMW decided to market this collection through
commercials on various phone apps such as music or movies which grabs the
attention of the market BMW is trying to capture and training the up and coming
audience to choose BMW.
Now the
spacious and relaxed collection is targeted towards the more experience BMW
lovers who not only are more knowledgeable about BMW products but is capable
and willing to purchase the products, because the price has gone up. The
vehicles in this segment varies from 5, 6, 7 and even some X series models. The
lifestyle for these vehicles are typically for people in their late 20s and
early 30s who annual income starts around 70,000 a year, But also likes to
travel via car or just likes the extra space to be cozy.
Finally
the eco-friendly and non car lovers is a smart approach because BMW has
influenced a whole new market with the all electric BMW i3, in this day in age
everything and everyone is about going green and saving the environment so this
all electric car was one of the smartest ideas BMW has created to continue
their dominance in the car industry, also BMW started to manufacture motorcycles
which drew more intention to their brand because not all upper class people are
into cars, some like motorcycles, boats and things of that nature. Even though
these segments have a vague target because the audience can vary from all types
of ages and lifestyles, BMW’s message behind this segment is they have
something for everyone so become apart of their social class.
Thursday, April 14, 2016
Ch. 15- Marketing Communications
The
overall goal for BMW is to be the world’s leading provider for quality vehicles
while maintaining their luxurious and unique features, BMW has executed their
goals by enforcing both AIDA and the promotional mix
ATTENTION
BMW gets its attention
behind the tremendous beauty of the car itself, with its overall design everything
from the wheel base to the door handle each part of the car is perfectly aligned
with the other and its dynamic trim is pure beauty to the eye, in fact BMW is
known for having the perfect harmony between technology and aesthetics.
INTEREST
BMW intrigues their target
audience constantly with the technological features of the car, for example BMW
is the only car company that has H.U.D (Head up Display) which is an anti-distracting
navigation projection on your wind shield, also it hand gesture control was
rated number one best technological feature. Other intriguing features is the
outstanding levels of being comfortable while driving and be driven in one, the
engine power and handling of the vehicle
DESIRE
Over the years BMW has built
this luxurious brand status and associated itself with an upper scale social
class, therefore people may desire the car because of its features and
capabilities, but they desire the title that comes with is by using BMW vehicles
as a statement to display high income or being financially well off because the
typical person who has a BMW is one of the two if not both.
Action
After being impressed with the features, capabilities and
the social platform of BMW vehicles 9 out of 10 consumers take action to
purchase a BMW or to prepare for purchasing a BMW even if they cannot afford
one
Social Media
BMW has a tremendous amount
of following on Facebook, at 13.4 million followers which they provide with daily
pictures, updates and videos of their cars and receiving feedback, allows BMW
to stay relevant in the industry and to their target market.
Personal Selling
Most of the selling is done through the ideal image BMW has
presented in advertising and brand recognition, therefore the only personal
selling that has to be done is letting the consumer touch and test drive the
car to experience what the hype is about.
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