BMW stands for Bayerische Motoren Werke AG, translated means Bavarian Motor Works (BMW). It was founded by Karl Rapp and Gustav Otto. In 1916, the Flugmaschinenefabrik Gustav Otto Company merged into Bayerische Flugzeug-Werke AG (BFW). In 1917, the Rapp Motorenwerke Company merged with Bayerische Motoren Werke. In 1922, BMW AG transferred engine construction operations, company name and brand names to BFW. March 6, 1916 is known as the birth date of Bayerische Motoren Werke AG (BMW) (“Bmw Group”, 2014).
BMW is synonymous for luxury, the ultimate driving machine. In the past BMW only targeted the elite, wealthy, successful businessman. BMW has stepped out of the box to target other segments of the market to increase profits and gain an even bigger share of the industry.
II. Market segmentation within the industry
The market segmentation within the automobile industry that belongs to BMW is the luxury car segment. To explain further, BMW created the X3 Series to appeal to successful, wealthy females; the X5 Series was created to appeal to families that are affluent and successful; the X7 Series was created to appeal to the established, successful businessman.
III. Target market
BMW’s target market used to be the wealthy, successful businessman. However, with the changing of times, BMW had to change. No longer is the BMW just for the wealthy successful businessman, it is for the wealthy, affluent segment of the market. Women, men, married couples with children, bachelors, and bachelorettes have all become the target for BMW without lowering their standards for quality, safety, innovation, technology, and design.
IV. Selection process for target market