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Segmenting
* Geographic Segmentation- The identification of target markets based on the regional, urban, or rural locations of the customers
* Both car companies have different models of vehicles to help each individual accomplish a safe drive where ever they are coming from.
The positioning strategies: Product Differentiation
BMW – cars communicate valued differences and distinguish it from other competitors by image (described as a premium brand), quality (uses cutting edge technology) and design (very sleek and unique)
* FERRARI – is a car in the Super luxury sub-category and is distinctly more expensive compared to the luxury cars such as BMW, Lexus, and Mercedes.
Brand Leadership Positioning
BMW- has maintained its leadership brand positioning for many years. Its success is the result of a consistent strategy and is oriented towards meeting the needs of customers.
FERRARI- it is probably the only car maker that never worry at competition price its name is unmatchable.
The positioning strategies: Head-On Positioning (comparative positioning)
* BMW- There is a sign of a little comparison between BMW and perhaps Mercedes but the ads don’t usually show it. It is only in minds of customers who tend to compare these two cars quite often.
* FERRARI- It is a one of a kind automobile that doesn’t need to be compared to other brands since it has a well-developed name in the car’s market.
Innovation Positioning
* BMW- uses continuous innovation. As an example we have an innovation of a completely redesign the 3-series model with even better power than ever before, a stiffer suspension, taillight lenses.
* FERRARI- the latest innovation is the 360 Modena. The 360 Modena combines Ferrari heritage with innovation.
The positioning strategies: Price Positioning
* BMW- In this case searching for the best possible value is a little complicated because cars like BMW has ranked on a high-end price level and are relatively expensive and therefore their customers are usually well off people.
* FERRARI- Similar situation, as with BMW although Ferrari cars are designed and sold to a more serious group of customers since the price can be very costly.
Lifestyle Positioning
* BMW- Young urban professionals usually drive these luxury cars. It is a question of a status and is associated with it.
* FERRARI- Baby boomers by purchasing Ferrari might see this as an opportunity to boost up their image position.
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