BMW Brand in North America*

Details

Case Code : CLCB058
Publication date : 2008
Subject : Consumer Behavior
Industry : -
Length : 03 Pages
Price : Rs. 100

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Key words:

BMW, luxury car, market research, marketing communication, reposition, creative class, promotional campaign, yuppie, brand, core philosophy, corporate culture, Al Ries, Mercedes, Lexus, Cadillac, GSD&M, North America, Europe

Note

* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

Though the sale of the BMW branded vehicles in North America have been growing at a steady pace, many industry-watchers felt that it was not as big a brand in North America as it is in Europe. With market research data in 2005 suggesting that a very high proportion of people buying luxury cars in the US did not even consider buying BMW, the company attempted to reposition the brand to appeal to the 'creative class' rather than relying on its traditional customer base consisting of 'yuppies'.

Issues:  » Socio-economic classification  » Social class  » Consumer behavior and marketing - market segmentation, targeting, promotion Introduction For the year 2007, BMW of North America LLC (BMW LLC), the North American arm of a leading German luxury car manufacturer BMW AG, reported sales of 293,795 BMW branded vehicles. This represented a growth of 7.1 percent compared to 2006. Even in 2006 the BMW branded vehicles had posted a growth of 3 percent compared to 2005...

Questions for Discussion:

1. How do socio-economic factors influence consumer behavior? Use relevant examples to put forward your view. What are the implications for marketers?
2. Do you think BMW’s new strategy in North America will work? Why (not)?

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