BMW Marketing Strategy Analysis

This assignment delves into BMW's marketing strategy by examining its brand relationships with consumers, the role of consumer tribes in shaping brand loyalty, and how different generations (Gen X, Millennials, Boomers) influence purchasing decisions. The analysis draws on academic research, industry reports, and case studies to provide a comprehensive understanding of BMW's marketing approach.

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Contemporary Culture Consumer Theory, the BMW Luxury Brand and Its Positioning for
Generation X
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Executive summary
Companies use segmentation targeting and positioning as a business strategy to create
different consumer groups that utilize a variety of products that they produce. From the
contemporary culture consumer theory, businesses that have applied this strategy well have
managed to succeed in the business environment that they operate since they meet the needs of
different clients. BMW penetrated the luxury brand in the 980s by positioning its vehicle to meet
the needs that the consumers were seeking for. The generation X segment of the market is keen
on luxury through service and performance. To meet this group’s needs, the company ensured
that its luxury brand offered performance attributes that positioned it as the best brand that fits
the segment. This report analyses the contemporary culture consumer theory by looking at the
contemporary culture consumer theory to understand how the luxury brand is positioned for the
generation X segment.

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Contemporary culture consumer theory and positioning in BMW.................................................4
Conclusion and Recommendations..................................................................................................8
References......................................................................................................................................10

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Introduction
Segmentation, targeting and positioning are business strategies used by marketers to
determine which kind of customers exist, then choose the one that they serve by optimizing
products for that segment and communicating to them to indicate that the product serves their
needs (Barnett 2003, p. 43). Therefore, marketing is a strategic and tactical activity that focusses
on how the needs of the customer can be met in the through proper parameters that are put in
place. Barnett (2003, P. 45) suggests that the market consist of people from different
demographic and psychographic characteristics of individuals that shape their preference for
some products and not others. For example, generation X or the so called baby boomers have
vehicle purchasing patterns that are different from other segments since they have grown up
understanding technology and have accumulated enough resources to own vehicles (Markert
2016, p. 13). On the other hand, BMW has a mono segmentation strategy that focusses on a
mono-segment type positioning to ensure that the brand that it products appeals to the single
customer segment (BMW 2016, P. 23). This means that the company has all sorts of cars for
every segment that they target in the society. This report highlights how the contemporary
consumer theory has been applied by BMW through positioning the Luxury Brand vehicle type
to meet the consumer needs of generation of X.
Contemporary culture consumer theory and positioning in BMW
Contemporary consumer culture theory focusses on the consumption choices and
behaviors of the society from a social and cultural point of view rather than an economic and
psychological one. This is seen in the relationships that exist between consumer actions, the
marketplace and cultural meanings that they place on the products that they buy. Culture is thus a
fragmentation of different groups within the society that have shared meanings rather than a

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homogenous construct. For example, generation X consists of people who were born in the baby
boom period thus sharing the cultural characteristics that define that group rather than other
common characteristics that they have (Bajde 2014, p. 12: Garvey 2016, p. 3). This is the reason
why BMW has designed different car brands that are positioned for every consumer segment in
the society. The market consists of different layers within the generation X group that require
proper targeting and positioning to ensure that they meet the needs of such consumers (Hellhake
& Henault 2010, p. 13). This means that the contemporary consumer culture theory transcends
the 4ps framework by looking at the sociocultural processes and structures that relate to
consumer identity projects, marketplace cultures, socio-historic patterns of consumption and
mass-mediated marketplace ideologue.
Consumer identity projects entails consumers working together to form a fragmented,
diversified and coherent sense of self through mythic and symbolic characteristics that define
them (Shiv, et al. 2005, p. 390). For example, the generation X group will want to differentiate
itself from others in the society by forming characteristics that make them different from others.
This group comes from parents who survived the world war period and have seen the great
depression that hit the world. They have also seen technological changes that the society has
witnessed thus making them a special group that has amerced a lot of wealth but at the same time
cautious on how they spend their resources. Heath & Brandt (2006, p. 412) suggests that this
leads to the development of a consumer relationship model for the group. When designing the
luxury brand for the generation X group, BMW bases it on the model of consumer relationship
investment through product performance and service quality of the automobile. This means that
the car brand offers both luxury and performance which is the point of difference that fits the
generation (BMW 2018, pp. 2). From the slogan of “the ultimate driving machine” the company

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has proved with its luxury brand of cars that it can offer the customers what they need. Further,
the cars have been designed to fit different lifestyle groups, income levels, status and social class
to ensure that the segmented consumers can fall in the group that fits them. Anurit, et al. (2014,
P. 59) suggest that by offering a wide range of the luxury class, it becomes easy for consumers
projects to be designed since the brands have been defined by the varying needs of consumers.
Since the group is more independent, luxury to them is related to service quality and
performance that they receive. This is the reason why BMW managed to surpass other luxury
brands in fulfilling the needs of the generation Xers.
The marketplace cultures of the theory addresses the features of the marketplace-culture
intersection where consumers are seen as culture producers. Here consumers forge feelings of
social solidarity by creating distinctive, fragmentary cultural worlds when pursuing their
consumption interests (Annamma Joy & Li 2012, p. 138). This is seen in the postmodern culture
fragmented in the diversity of consumption-oriented micro-cultures that exhibit different patterns
with shared meanings and practices in the society. This means that the car reference patterns of
the generation X stem from the shared rational beliefs that define the behavioral approach of the
group to issues. According to Goulding, et al. (2013, p. 815), these cultures arise from localised
cultural capital and skills that resultto a pool of symbolic resourcesshared by the group. This
characteristic is seen in this group since they have generateda lot of wealth through their years of
working which they can use for luxury. This process then leads to development of marketplace
subcultures that define the symbolic boundaries that exist (Canniford & Shankar 2013, p. 1055).
For example, the generation X group consists of two subcultures of generation X millennials and
generation x baby boomers. These two groups share the common characteristics of the

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generation X but at the same time a small variation that makes them differ in their marketplace
cultures.
Further, the socio-historic patterning of consumption looks at the institutional and social
structures that influence consumption like social class. Arnould & Thompson (2005, p. 870)
suggest that social class shapes the consumer patterns and choices that people have. Cultural
endowents that define the social class of generation X shapes their preference for the luxury
brand. BMW has positioned this bran to meet the needs of this group by combining both luxury
and performance to ensure that it meets the needs of the group (BMW Group 2018, p. 11). Since
the group has a lot of wealth, it means that their purchasing power is influenced by their ability
to afford any luxury brand that BMW offers so long as it meets the social class characteristics of
what they want.
Lastly, mass-mediated marketplace ideologies and consumers’ intepretive strategies
analyses how consumer ideology channels and reproduces consumerthoughts and actions. The
way BMW markets its luxury car brand is used to position it as serving a particular segment in
the society (Doughert 2016, pp. 4). The brand is designed for people seeking social status and
performance at the same time. The brand is not only designed to offer luxury but rather its luxury
is extended to include performance and service quality which distinguishes it from other
products. Through the normative slogan “the ultimate driving machine”, the luxury brand
marketing is used to make consumers in the generation X segment to embrace it as the vehicle
that meets their needs. The outcome is predisposing the targeted consumer segment to the
identity projects that have been defined to fit them. The outcome is cultural ideals that have
transformed into material realities that influenced the generation X segment towards the luxury
brand.

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Conclusion and Recommendations
In conclusion, the following recommendations are offered to management on how to
manage brand positioning so that the needs of the segment can be taken care. One way that
marketers need to understand is that the generation X group did not grow up affluent but rather
accumulated their wealth as time went on. This means that they are rational, practical and
independent. The brands that are designed to meet their needs have to consider these three
characteristics. This means that the luxury element of the brand is not what they pay for but
rather the service quality that they receive from the vehicle. By being rational it means that the
price that they pay for the vehicle should be equivalent to the service that they receive from it
(Bauer, et al. 2006, p. 345). This is a rational group that relies on what they are made to believe
and only spend when they perceive value in the product (Drenik 2017, pp. 4). By tailoring
marketing strategies towards the features that the brand offers and how it meets the needs of the
segment, marketing strategies can be used to ensure that target segments within the market are
satisfied.
Sherry & Deschenes (2009, p. 43) suggests that from a macro level, marketers can use
consumer behaviour to create consumer identity that ends up consuming a certain identity project
that the company has developed like the luxury brand. While on the meso level cultural systems
like proper marketing need to be developed so that consumers can be predisposed to the identity
project that has been developed. This means that marketing needs to move general marketing to
positioned, segmented and identity marketing that seeks to lure a particular segment of the
market.
In addition to that, when developing marketing strategies for segments in the market, the
organization needs to analyze the symbolic meanings, ideological inducements in texts and

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cultural ideals that the strategy holds to create the intended perception to the target segment.
Since each segment group has its own characteristics that define their approach to products in the
market, then marketers need to understand the key defining element that can satisfy the group
(Amber & Price 2011, p. 39). For example, for the generation X, luxury means service and
performance. The same approach should be used on other products that the company produces.
Lastly, consumers are interpretive agents rather than passive dupes. Shalini & Milne
(2010, p. 178) adds that this means that elements of consumer resistance can be felt on products
that have not been adequately communicated to the consumer. The success of the luxury BMW
brand is attributed to a good reception from the upper class due to its performance ability that
other car models had failed to offer (Hwee 2015, p. 31). Marketers need to ensure that an alliance
exists between consumers and consumer activists for proper reception of the product in the
market.

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References
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Annamma Joy & Li, E 2012. Studying Consumption Behaviour through Multiple Lenses: An
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Anurit, J, Newman, K & Chansarkar, B, 2014. Consumer Behaviour of Luxury Automobiles: A
Comparative Study between Thai and UK Customers' Perceptions. The Journal of Consumer
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Arnould, E J & Thompson, CJ 2005. Consumer Culture Theory (CCT): Twenty Years of
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