BMW Brand in North America*



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


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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'.


  Socio-economic classification
  Social class
  Consumer behavior and marketing - market segmentation, targeting, promotion


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 BMWs new strategy in North America will work? Why (not)?

Cases on related topics

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2. Mass Customization: The BMW Way
3. BMW's Innovation Strategies
4. BMW Going on the Offensive