BMW after Sales Services

Value Proposition

BMW incorporates value to both the employees and the customers. The free maintenance program exemplifies customer value for four years (BMW Group, 2016). All customers purchasing a new vehicle are eligible to this value which is not offered by any other competitor of the company. The company manufactures high-quality vehicles that provide the clients a similar experience in all driving aspects. Moreover, BMW makes cars that have superior performance. The cars are made using the latest technology that ensures a superb driving experience for all the customers (BMW Group, 2016). The company conducts employee training which enables the staff to gather knowledge and skills that help reduce defective items in the manufacturing process. This value ensures that the cars made are not returned to the company due to the failure of some parts.

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The delivery of the vehicles to the clients is effective. Customers are required to find a dealership with an allocation that will oversee the purchase of the car. The customers can include their preferences that will be incorporated in the production of their car (BMW Group, 2016). Once the customers have made their order at a dealership, they are given updates regarding the progress of their order. BMW provides specific details including the name of the ship and the anticipated date of arrival (BMW Group, 2016). Furthermore, the company responds quickly to any customer query. Additionally, the company has introduced electric vehicles that are highly efficient (Future Is Electric for BMW, 2016). The implementation of electric vehicles has been a strategic move to counter competition from companies like Alphabet and Uber that aim at revolutionizing the global auto industry. Besides, the new electric cars introduced are available in all the product categories. Therefore, customers can purchase their preferred model electric car. The firm has partnered with global suppliers to reduce the operational costs. This partnership has ensured greater control of the company’s supply chain which has increased the reliability of the products. Moreover, BMW employs practices that save and conserve energy.

Segmentation Strategy/ Target Customers

The company has adopted a mono-segmentation strategy that implies that the business targets only one type of customer. The customers targeted by the company are affluent individuals that have the ability to pay for the cars manufactured. The company has three target segments that include BMW, MINI, and Rolls-Royce. The demographic segmentation criteria for the three target segments include region, density, age, and gender. BMW segment is focused on both domestic and global markets and people between the ages of twenty and sixty-five (BMW Targets New Drivers, 2016). MINI segment is also aimed at both domestic and international markets but people between the ages of twenty-five and forty-five. Rolls-Royce segment is targeted at people above the age of forty years. All the three segments are orientated to people with high incomes.

Behavioral segmentation used in the company comprises four segmentation criteria including benefits sought, the personality, the extent of loyalty, and the user status. Under these segmentation criteria, BMW signifies achievement and appreciation of. The MINI is targeted at people with a sense of achievement and speed as well. Rolls-Royce is aimed a ambitious individuals with high status (Boston, 2016). The customers are people that have achieved financial success in life and would like to access the highly differentiated features offered by the firm. The company capitalizes on the need of the clients for quality and differentiated cars and provides them with options that fulfill this need.

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The company conducts regular research amongst the existing clients in terms of changes in their preferences. Subsequently, the customer preferences are included in the design and production of new cars. The majority of the company’s stores are located in upper-class regions. Men above the age of thirty-five years with the income of above seventy thousand dollars annually are the primary purchasers of BMW cars. Thus, the research conducted is mainly in this target segment to identify their hobbies and produce new products that will suit the clients in engaging in their respective hobbies.

Intended Positioning

The company employs positioning to market the products in local and international markets. BMW does not waste money on advertising products to people that are not included in the target segments. Instead, the company conducts research and development to improve the current products. The positioning of the business is intended to attract new clients and retain existing customers. The firm utilizes sustainable practices that do not harm the environment (BMW Group, 2016). The majority of the customers are cognizant of the harmful effects that manufacturing of cars may have on the environment. As a result, they greatly value sustainable practices that are not harmful to the environment. Furthermore, BMW produces cars that have low emissions. This information is included in the marketing activities of the company.

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The firm has implemented a value-based pricing. The customers targeted are people with high-quality standards of life that would not mind paying a premium to obtain these standards. Nonetheless, BMW offers discounts to the most valuable clients. Furthermore, the company has adopted many marketing means that include television, product placement in movies, publications, the Internet, and brochures (BMW Targets New Drivers, 2016). The combination of these marketing methods has ensured that the company reaches the intended audience.

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