Part 1 Introduction 5
1.1 Overview of BMW Brand 5
1.2 Overview of Kit Kat Brand 6
Part 2 Comparison of the Marketing Strategies of the Two Brands 16
2.1 BMW Brand Marketing Strategy 16
2.2 Kit Kat Brand Marketing Strategy 19
Part 3 Conclusion 26
Part 4 Bibliography 27
Part 1: Introduction
Market segmentation is defined, as the approach to businesses in which the market is divided along the basis of common characteristics and features . The market being people, it means that members of a given market segment exhibit similar kinds of needs. People have different needs and have preferential approaches to meet those needs . According to the Porter’s model, an effective market segmentation strategy can be achieved by following the following three key principles: cost, differentiation and focus . The model stipulates seeking of a market segment, that facilitates the expected returns at the most minimal cost possible . On differentiation, the segment has to indicate attractiveness both to the company in terms of returns and to the customers in terms of need and vale . Finally, the focus has to be on a particular market segment and not just a general approach at sales. Market Segmentation is one of the widely used market viability determination corporate strategy that is applied by several companies in maximizing their sales opportunity. The basis of market segmentation is to concentrate resources and energy to serve the identified market segment exhaustively . Every organization thrives on sales and thus when the market choice is done right, sales leads to profitability and organization growth. The purpose of this report is to explore and compare the market segmentation practices adopted by the German automobile manufacturer BMW for its BMW brand of vehicles and the United Kingdom giant foods manufacturers Nestle Foods on their confection brand Kit Kat. BMW vehicles are products from the automobile industry while Kit Kat is a confection in the food industry. The assignment also reveals how the market segmentation mixes influences the making or breaking of a brand and how sustaining the image of a brand is so dear to businesses.
Overview of the BMW Brand
The BMW is a vehicle brand manufactured by the Germany based giant automobile manufacturer, the BMW group for whose businesses motto “Freude am Fahren” means “high driving experience” in English . The Bayerische Motoren Werke AG best known as the BMW Group was established in the year 1917 and the company’s aim is in the engagement with the premium passenger car segment . Currently, it is ranked 3rd in the United States of America among the leading automobile manufacturer and the BMW brand holds the 11th global position of the most popular brands . The other brand owned by the company includes MINI and Rolls-Royce .
Overview of the Kit Kat Brand
Kit Kat is one of Nestle bestselling brand of confection . It is a chocolate covered wafer biscuit. It debuted in the United Kingdom under the brand name Rowntree’s Chocolate Crisp back in 1935 being manufactured by the United Kingdom based Rowntree Company and rebranded to Kit Kat in 1942 . The Rowntree Company was acquired by Nestle in 1988 together with the Kit Kat Brand. It is estimated that in with every lapsing second, 650 fingers of kit Kat are consumed around the globe
Part 2 Comparison of the Marketing Strategies of the Two Brands
2.1. BMW Brand Market Segmentation Strategies
Use of the psychographic segmentation is evidently a visible strategy employed by the BMW brand. The fact that based on lifestyle, the vehicles are targeted to those who have great preference for premium passenger vehicles vividly outlines their target for this market segment . The company has excelled at building its brand based on experience and trust to ensure it meets all the requisite needs of the premium lifestyle vehicle segment. To ensure that their products always reflect the up to date market needs, THE BMW brand is always associated with new vehicle models so that it can maintain a profitable product life cycle
2.2. Kit Kat Brand Market Segmentation Strategies
Kit Kat on the other hand has exemplified several market segmentation strategies ranging from psychographic, demography and behaviour . For example in psychographic segmentation, the brand has established “sub-brands” that are meant to appeal to certain groups of customers. The “sub-brands” include Kit Kat Regular, Kit Kat Chunky, and the Kit Kat Snack Size . The Kit Kat Regular is targeted at a group of people who prefer light and less sugary chocolate bar while the Kit Kat Chunky is targeted at those who prefer a bigger chocolate bar . On behaviour segment, both the Kit Kat Regular and the Kit Kat Chunky bars are targeted at those who would not mind to grab a chocolate bar in a grocery store while shopping for other essentials . The Kit Kat Snack Size is made for parents who may wish to buy chocolate bars in bulk for their children’s school snacks .
Part 3 Conclusion
Succinctly noted, market segmentation plays a major role on how companies present their products to their targeted markets. A market segmentation strategy that is right would definitely increase sales for a company’s products or services and it thus requires to be carefully orchestrated. On the other hand, a wrong segmentation strategy may lead to loss of company’s recourses without being profitable to the company.
Part 4 Bibliography
Academic Assist 2014, 'An analysis of the Marketing Approaches of BMW, a Case Study of BMW’S X5 Model'.
Aliu, U, Rachel Bender, SC, Mbagwu, J & Sarwar, F 2013, 'Kit Kat Marketing Mix Analysis'.
Datta, Y 1996, 'Market segmentation: an integrated framework', Long Range Planning, vol 29, no. 6, pp. pp.797-811.
Karaömer, A 2013, 'The Relationship Between The Brand Strategy And Business Strategy', KTH Industrial Engineering and Management, Stockholm, Sweden 2013.
Madlani, J & Ulvestad, JC 2012, 'A Fundamental Valuation of the BMW Group ', Copenhagen Business School.
Thomas, JW 2007 , 'Market Segmentation', Decision Analyst.
