[chuck92103]

A lot of what BMW does is physchological marketing.

Say you are a watch manufacturer and want to sell a bunch of watches for $500 retail. How do you do that?

You make two more watches. one that sells for $300, and one that sells for $800.

Consumers are ignorant to the fact that they subconsciously do not want to buy the entry level $300 watch. So they look at the $500 watch and and compare it to the $800 watch and justify in their minds that the $500 is the better deal.

In the end, the watch maker achieved his goal of selling $500 watches buy pushing the consumer to the most profitable product.

In the case of BMW, several things come into play.

1. The M3 exists to sell more 3 series. Customers will compare the 325, 335, and M3 and will choose the 335.
2. They may compare the 1, 3 and 5 series and buy the 3 series yet again.
3. In the case of the X1,X3, X5, the consumers will opt for the X3.

BMW's goal with the X1 is to expand X3 sales. So that is the point of the X1.

The majority of 3 series buyers purchased a 3 series for this very reason. That is why I laugh when people say the 5 is too big, more expensive, etc. These are 3 series owners who played right into the hands of BMW.