Main Observations :
1. BMW would never offer MPV
2. Rising female clients though still 80% are male.
3. Female clients look more for service & respect
4. In China and India the average age of people buying 7 series is low in 30s as against 40s in Europe.
Brand Values :
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| BMW Series 7 |
2. Rising female clients though still 80% are male.
3. Female clients look more for service & respect
4. In China and India the average age of people buying 7 series is low in 30s as against 40s in Europe.
BMW has established it’s lead in emerging markets of China and India, over competitors Benz and Audi, along other established markets. The marketing strategy for a luxury car branding and challenges in retaining the brand heritage is difficult more when the macro economy factors are not favourable.
Post slowdown of 2008 the scenarion has changed for luxury car makers and buying behaviour of consumers in markets like India, The companies manufacturing luxury cars have to adapt to these changes.A decade ago none of these companies had bothered for China and Indian markets. With shift in economy map interpretion of luxury in a post recession economy. also redefined.
The interpretation of luxury with time has changed. The meaning of exclusivity changes even in markets where luxury goods exclude others by high price. In this segment Quality is must for entry, but at the top are emotional assets. Luxury cars have a crystal clear identity and premium image with more demand for class of elite differentiations.
Changing Demographics :
There are two changes in the customer patterns, (i) No of female buyers are increasing and (ii) The average age of buyers of premium segment has lowered.
This has changed the requirements of service level – more sophistication and more prompt. Research has shown that the female buyers look for a male brand to show that they have made it in life. Female buyers tend to be more demanding of service and more attention is to be paid on them. They have been climbing up the social ladder and expect more respect from luxury car manufacturers. Do not underestimate female customers, that is a growing segment. . In emerging market luxury car owners are younger , say in 30s as against in developed world generally they are of 40s age group.
To gain the admiration and appreciation never compromise with quality of products and services. BMW always manage expectations; it never compromises brand values for high volumes, as per Mr Uwe though there is high demand for MPV, in Germany, BMW has refrained to produce. It could dilute it’s premium brand image.
Adapting to Emerging Markets :
BMW extended wheel base which means longer cars with more leg room in the rear in order to enhance the passenger orientation, as the Size is definitely an issue in many emerging markets in Asia. There is no major caveat for BMW to overcome in order to gain in brand strength.
Indian market was an untapped potential for decades and suddenly it turned into reality. China started earlier but has been a much more predictable market. There was enough awareness of the BMW brand among the potential customers in India, but to expand the market reach it has to build its brand outside big cities too.
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