SECTION A [25 MARKS] Read the following extract and then answer the question below BMW BMW is a world-class luxury car, motorcycle and engine manufacturing brand headquartered in Munich, Germany. Considered one of the worlds most admired and recognised brands, it is renowned for its exceptional craftsmanship, reliability, and high-quality product offering. BMW is regarded as one of the Big 3 German car brands, together with Audi and Mercedes. In 2013, BMW sold more than 1.95 million cars and more than 115,000 motorcycles. In 2014, it hit record sales levels as global demand for premium luxury cars remained high. BMW remains one of the most established and revered car brands in the world, with millions of people worldwide yearning to get their hands on one of these top vehicles. But how has this company, founded almost a decade ago in 1916, managed to maintain its global appeal? Read on to find out Product Offering One of the most appealing features of the BMW brand is its wide range of products available. Ranging from super exclusive (and expensive) to the more affordable model, the brand appeals to people from a range of target markets, including less well-off clients. This leading car manufacturer offers more than five series of cars: series 1, 3, 5, 7 and X series, in addition to other series. Each series features unique characteristics and offers its own unique driving experience. Above all else, many people highlight how great the BMW feels to drive, no matter which series of car you may be driving. BMW currently assembles its lineup into 10 distinct groupings. The sportier coupe-style are designated by even numbers (2 Series, 4 Series and 6 Series) while the sedan-style models are given odd numbers (3 Series, 5 Series and 7 Series): DEGREE ASSIGNMENT January-June MK 222 PRINCIPLES OF MARKETING BOU 2021 Page 3 of 8 2 Series A smaller two door model available as either a coupe or convertible 3 Series A compact four door model available as a sedan, sports wagon or Gran Turismo 4 Series A compact coupe-style model available as either a two-door coupe or convertible, or a four-door Gran Coupe 5 Series A mid-size four door model available as a sedan or Gran Turismo 6 Series A mid-size two door model available as a two-door coupe or convertible, or a four-door Gran Coupe or ALPINA Gran Coupe 7 Series A full-size four door model available as a sedan or ALPINA sedan In addition to the numbered series, BMW has four groups of vehicles designated by letters: X Models A line of SUVs and crossovers (or what BMW refers to as Sports Activity Vehicles and Sports Activity Coupes) Z4 Model A two door roadster M Models A high-performance version of many BMW models is grouped into the M Models (e.g. the M3 is a high-performance version of the 3 Series sedan). BMW i BMWs line of electric and plug-in hybrid vehicles Another notable feature of BMW is that it uses exactly the right part designed specifically for the car it is creating. Other German motor brands, such as Audi and Mercedes, are tied to different companies (Audi is tied to VW and Mitsubishi whilst Mercedes is tied to Chrysler). As such, Audi and Mercedes use parts from different companies in order to make savings. BMW does not do this; as such, customers are aware that they are paying a little bit extra for the highest-quality models. The brand can therefore be associated with superior craftsmanship that cannot be matched even by other leading car manufacturers. Other Notable BMW Features BMW has a unique market positioning. Some of the key product features in its marketing mix include: DEGREE ASSIGNMENT January-June MK 222 PRINCIPLES OF MARKETING BOU 2021 Page 4 of 8 Exceptional product offering Luxury market segment Powerful brand appeal Highest-quality services BMW owners are very loyal to the brand, and enthusiasts host an annual Bimmerfest each year to celebrate their cars. The company nurtures these loyal consumers and continues to research, innovate, and reach out to specific segment groups year after year. i. Consider organisations market offering and evaluate how BMW would segment its consumers (15 marks) ii. What does BMW do well to market to each segment group? (5 marks) iii. Where could BMW improve its marketing strategy? (5 marks)