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Nate Lindstrom
Professor Fruchter
Marketing Principles
10 February 2011

BMW Case Study Analysis

According to a 2000 poll conducted by Gfk Roper, women buy 60 percent of new cars and 53% of used cars. A 2009 poll by NBC/Universal shows much of the same: ³eight of 10 women say they are involved, solely or jointly, in car purchase decisions. And a third say they make those decisions themselves´ (Motavalli, 2009). It logically follows that since women easily account for more than half of all car purchases, the marketing efforts of a car manufacturer, such as
BMW, should focus on their female demographic. After all, why would they market their products to the minority demographic?
Curiously, this is precisely what BMW has decided to do. In a case study of BMW¶s marketing efforts published in Marketing, 10th Edition, authors Kerin, Hartley, and Rudelius list at least three aspects of BMW¶s branding and marketing that they believe lend the most appeal.
First, ³BMW is fortunate²we don¶t have too much of a dilemma as to what we¶re going to call our cars,´ says Jim McDowell, vice president of marketing at BMW. He¶s referring to the fact that BMW names their cars using simple numbers and letters²for example, the M3 or the 7 series²rather than using unique names as so many other manufacturers do (Kerin, Hartley, &
Rudelius, 2011).

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Second, the authors identify that BMW has been successful as placing its vehicles in four different James Bond movies, and even hired a number of well-known action film directors to produce a series of short movies filled with gun fights, explosions, and chase scenes featuring
BMW automobiles.

Third and finally, the authors speak in almost glowing terms of BMW¶s groundbreaking web site, which offers visitors the ability to select from 350 different model variations, 500 options, 90 exterior colors, and 170 interior trims to ³create their perfect vehicle´ (Kerin,
Hartley, & Rudelius, 2011). A quick bit of math reveals that these choices present each web visitor with a staggering 2,677,500,000 unique vehicular combinations.

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But what did consumer electronics giant Best Buy find as it attempted to align its stores with the fact that women influence 89 percent of consumer electronics purchases and spend $68 billion on them each year (Brady & McGregor, 2007)? ³Men and women shop very differently,´ explains Joe Brandt, a service manager at one of Best Buy¶s newest stores. ³Men typically love the technology, while women are looking for a knowledgeable person who can answer their questions in a simple manner´ (Kerin, Hartley, & Rudelius, 2011). BMW offering over two billion unique choices on their web site hardly qualifies as ³simple.´

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That BMW¶s decision to feature their cars in four James Bond movies and their decision to produce a series of violent action flicks showcasing their cars blithely ignore their female demographic hardly needs stating. Yes, there are women who like James Bond, and yes, there are women who enjoy a good shoot µem up film²but they are definitely the minority.
According to the Motion Pictures Association of America, female attendance of films classified as ³action movies´²even allowing for women who are accompanying a male partner to the movie²is less than 18 percent (MPAA).
And what of BMW¶s simple, letter- and number-based model naming scheme? There can be little doubt that assigning such short numeric labels depersonalizes the products²the same technique is applied to achieve the same ends with prisoners, for example²but its effect upon female consumers is not in BMW¶s favor. ³Men respond to things and women respond to people,´ says Sheryl Connelly, the chief marketing officer at Ford (Alexander, 2008). Karen
Smalley, a prospective car buyer, agrees. ³Using numbers makes their products seem cold and lifeless. And while they may claim the numbering scheme is simple, it¶s actually harder to remember than a good model name´ (Smalley, 2011).
If BMW¶s target demographic is indeed the minority of car buyers²that is, men²then their marketing strategy is spot-on. But if they want to reach the majority of car buyers, women, they need to radically re-think their current strategies. Perhaps a dual-targeted approach would work? Much of their current marketing material is pure genius, and could be retained to continue reaching their male customers; but a parallel marketing approach, focusing on memorable and comfortable car names, a vastly simplified car selection process, and promoting their products in female-dominated venues might permit them to entice the 60 percent of new car buyers into their showrooms. And that might just be music to BMW¶s investors¶ ears!

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Works Cited
Alexander, S. (2008, March 14). What Women Want In a Car. Retrieved March 1, 2011, from
CNN: http://articles.cnn.com/2008-03-14/living/women.car.design_1_women-buyersfemale-engineers-marti-barletta
Brady, D., & McGregor, J. (2007, June 18). What Works In Women's Networks. Bloomberg
Businessweek, pp. 12-15.
Kerin, R., Hartley, S., & Rudelius, W. (2011). Marketing, 10th Edition. New York: McGrawHill.
Motavalli, J. (2009, December 15). Women Are Deeply Involved in Car Buying, So How About
Respect from Dealers? Retrieved March 1, 2011, from CBS Business Network: http://www.bnet.com/blog/electric-cars/women-are-deeply-involved-in-car-buying-sohow-about-respect-from-dealers/1174 MPAA. (n.d.). Theatrical Market Statistics. Retrieved March 2, 2011, from Motion Picture
Association of America: http://www.mpaa.org/Resources/091af5d6-faf7-4f58-9a8e
Smalley, K. (2011, March 2). Selecting a New Car for Purchase. (N. Lindstrom, Interviewer)