Bayeriche Motoren Werk (BMW) is a German automobile manufacturer company that was established in 1913 and later was traded publically from 1969 onwards. Currently the company has established its premium segment with three most famous products i.e. BMW, Rolls-Royce and Mini. We will have a detailed look into company’s marketing strategy in this article.

Segmentation & Target Market


Segmentation of BMW has been defined on the basis of engine machinery they have used to please different classes of the customers based on their needs. Demographical segmentation has been used considering factors like age, income and gender of the customers. Thus its key target is men of ages above 35 having income of more than a yearly target of 75000 USD. BMW also segments in market based on geographic regions by targeting high income regions i.e. US and Western Europe to sell its products on good prices.

Target Market

BMW targets the middle to high income groups in all regions of the world. Especially US and European markets are targeted due to stabilized economies and high income rates. This has helped company achieve its sales easily as the pricing is kept higher because the quality provided to the customers is never compromised.  Thus BMW always plans to target niche and posh areas of the world.
Competitors & Competitive Analysis


Automobiles industry is a very complex yet unique industry when it comes to competition. With BMW completes luxurious names in the market like Mercedes Benz, Audi and few other Japanese car manufacturers. BMW has a trusted set of customers and usually the competition is very clean due to distinct manufacturing technologies used by each vendor.

SWOT Analysis


• BMW is a very well established brand globally for its high quality and environment friendly cars.
• BMW’s focus on Corporate Social Responsibility is one of its key strengths that have built a good edge over the years.
• Highly skilled labor force and extremely well organized assembly line has made BMW a distinct entity among the competitors.


• BMW prices are very high when compared to other competitor products in market.
• BMW has not been focusing alliances and partnerships thus it carries a very little ratio on that side.
• High prices sometimes lead to losing certain low income markets.


• Diversification of the product line of BMW by introducing new low fuel consumption cars and exploring other new areas will attract a whole new lot of customers.
• Producing affordable cars for lower income levels will create good revenue for company if worked upon.


• Fierce competition in the market is one big threat.
• Decrease in fuel prices is one of the key threats to the company.
• The rise in exchange rates and the subsequent higher costs of manufacturing is another major threat.

Marketing Strategy 

BMW focuses on the marketing strategy which is based on the customers that value quality and luxury and that is the reason BMW targets premium market segments worldwide. Manufacturing of high class vehicles with 5 to 7 series for supreme customers is clearly the marketing tactic of BMW. BMW also focuses on social responsibility while marketing and thus donates its cars to students and faculty members for studies in automobile fields.


Customer Analysis 

Customers of BMW have been ranging from medium to young age enthusiastic and adventurous group that is ready to spend high amounts on luxury and high quality cars. The examples have been seen recently where the 320i BMW cars have been part of an automobile show with major customer attraction for such high priced car.

Core Competency

BMW’s core competency lies in significant high quality with long term value in its products.

Marketing Mix


Manufacturing units of BMW are present in UK and it highly depends upon its dealership system globally for its sales. BMW also depends highly on importing and exporting its products based on customer needs. To be specific company has its presence in around 100 different countries with around 4000 plus dealers.   


BMW prices its products based on the size of engine and the model version and features. Usually the prices are set from 16 thousand to 60 thousand based on varying models of cars for students and most luxurious options for its young customers.


BMW primarily has positioned its product as luxury car with superlative driving experience for its customers. That is the reason the target customers is usually young to medium aged men with higher income groups. 


BMW focused on all key tools to promote its products. Key among those are TV advertisements, internet based branding, marketing events, product launches and other print media advertisements.

Current Marketing Strategy

BMW has been very specific and keen when it comes to marketing strategy especially in the key regions where it operates. BMW has recently turned away from its traditional marketing strategy and moved to a much digital and social media based marketing. New tag line has also been introduced for its new product i.e. “Driving Luxury” which gives a complete new image to the company. Similarly another product’s tag line “The Ultimate Driving Experience” is such convincing message for a class of customers who want comfort. Thus customized marketing tactics are more in practice now.

Recommendation for Strategy Revamp

BMW is a huge name and thus its marketing has no flaws if seen from top. But still to enhance its marketing experience, company should focus on marketing strategies that are more global and not just limited to regional campaigns. This is the key reason why many markets where BMW has the potential to gain a key segment of customer are left unattended due to lesser advertisements locally. This global touch in marketing and promotional strategies will help company achieve a lot better sales in future.


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