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Case Analysis
Submitted by:
Gautham S. (PGP/15/277) Nikhil Sachan (PGP/15/297) Rahul Maheshwari (PGP/15/307) Saurav Agarwal (PGP/15/319) Siddhartha Roy (PGP/15/321) Utsav Agarwal (PGP/15/326)
Objective
Design a Marketing plan to sustain product excitement until dealer product availability in March 1996 Time: January 1996 Protagonist : James McDowell, Marketing VP, BMW (US)
The Situation
BMW Z3 Roadster : first BMW car manufactured in America Will boost BMW s current sales volume in America (currently 16 percent of the Worldwide Unite sales of BMW (Source: Exhibit 1)
BMW has launched the phase 1 of the marketing of the car by placing it in James Bond movie, Golden Eye and through other non traditional campaigns
Phase 2, also, has to be in line with the April launch of redesigned 5 Series and BMW s official sponsorship of 1996 Atlanta Summer Games
Company is trying to change its symbol from Made in Germany to Made by BMW , to establish it as truly global brand
Background
Company was facing decline in sales volume from 1986 to 1991, which was later revived with the image change
The brand was repositioned from Yuppie Status Symbol to Ultimate Driving Machine
Company improved the dealer network, made improvements in the product line and adjusted price
Focus for being the best rather than being the biggest
The Strategy change resulted in sales increase since 1991 (With 4 year CAGR of 15.39 percent in US, compared to 1.6 percent Worldwide) (Source: Exhibit 1)
Z3 Roadster Initiative
Concept started in 1992, with the world motorcycle market decline Adopted to fit best with BMW s image of driving excitement and the essence of the brand
Positioning: An ultimate driving machine, best in its class (against other luxury cars in the market such as Mercedes and Porsche)
Market Segment
Dick Clark Corporate Productions and Fallon McElligott were shortlisted for promotion
Fallon specialized in non traditional advertising and Dick Clark was a leading Hollywood based promotional agency
Car s image matched James Bond s lover of life image who had penchant for cars, control of his destiny and was known for technology
The car appeared for only 90 seconds in the movie and it replaced Aston Martin, Bond s signature car, but it was prominent and looked an integral part of the movie
Continued..
Expenditure : Spent 50% less than the Share-of-Voice/Share-of-market rule Spent three times less than what they would have spent using traditional media Produced higher per dollar impact
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