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Background

Leap of a global brand BMW supply the most reliable and with a particular position, the best in each class, luxurious, high performance cars to the U.S Automotive market. Attained 100,000 annual sales in the U.S Market. Competitor : LEXUS, ACURA, INFINITI BMWs Business Strategy (In U.S Market) Repositioning brand from Yuppie Status Symbol to the more quality Ultimate Driving Machine Fixing price for New Market Strengthen Dealer Network Improvement of production line Target Promising youth segment

BMW need to preserve their reputation for driving perfomance and reposition their German made cars as being stylish and fun to drive as well Adweek Eastern Edition, September 11, 1995

BMW in US Market and Worldwide

BMW Z3 Roadsters Concept


Roadster concept started in 1992 Opportunity The decline of worldwide motorcycle market which generated market of substitute product for the same psychographic market segment. Adressing the same feelings,emotions and fantasies. Niche opportunity, the goal is for being the best not the biggest Competitors (Porsche and Mercedes) were rumored to have similar concept Revealed interest across life stage segments Image conscious Gen X Aspirational car for men and women in 40s Nostalgia for late baby boomers Common across diverse demographic Lover of Life mindset Propensity to seek unique expressions of individuality

Franchise Expanding Mission: BMW commited to US market Z3 Roadster was made in Spartanburg, South Caroline instead of Munich, Germany Transition from:
Made in Germany Made by BMW

Germany

America

Spartanburg

The investment is $600 million and growing Build 250-300 cars a day Employs 1500 people (2000 by the end of deca de)

Munich

BMW Z3 Roadsters Spesification

Lets see one of its commercial.

BMW Z3 Roadster Introductory Marketing Plan

Strength
- BMW is not the biggest but the best car company in the world as it is more into youth targeting. - It influences consumers strongly through Media and film industry. - It is Innovative and Impactful.

Weakness
- Their corporate image is too serious and tradition-bound - Plan Execution was complicated. - Z3 was perceived to be German made car not an American made car.

Opportunity
- Increase in sales: Their franchise expansion seems to be more promising way to incremental sales to the brand. The cars are not as expensive as German manufactured cars. - It is the first Auto plant outside Europe.

Threat
- Competition from Mercedes and Porsche. - People not accepting a German car in US. - The partners or sub- partners may turn into rivals.

BMW Z3 Roadsters Marketing Plan Background of Launching Z3 Roadster


The Central Goal of the launch was : - To expand the BMW franchise and further rejuvenate the BMW brand by positioning the Z3 squarely inAmerican culture and settling into the hearts and minds of the American public.

Phase I

Phase II

Timeline of Key events

The Final Pre-Launch Marketing Plan


Non-traditional Marketing Method - Buzz / Word Of Mouth, Non-traditional VS Traditional - Use the Customer Emotional Purchase 4 Step

Awareness

Interest

Desire

Action

Fixing the First Marketing Element: The GoldenEye Product Placement - BMW-MGM Co-Launch - Almost 90sec 007 GOLDENEYE - Effect of Teaser Advertising

And Here Is Z3 with Bond!

The Final Pre-Launch Marketing Plan


1) Neiman Marcus Christmas Catalog offer of a Special Limited Edition Bond Roadster. September 95 A publication reowned for its unusual product offering Features Special Limited Edition Bond Roadster Launched in Neiman Marcus Catalog Catalog insertion and Vehicle feature d on Todays Show Goal 20 Units over 3.5 months Result 100 units in just2 days 6000 orders in the Christmas period

The Final Pre-Launch Marketing Plan


2) BMW Internet Site
October 95 BMW unveiled its new website for more information Virtual View of the Car Features Golden Eyes film Segments Today Show Clips and Movie Offer Build your own Roadster:select your own exterior, interior, and top colors as well as various options for a Z3

1996

Result Hit rates tripled from 35,000 hits/day to 125,000 hits/day. Apple used this as a reference in their own advertising

Now

3) Press Launch in Central Park

November 1995, Z3 was formally introduced to Public. 200 media representatives Features Z3 was reveiled amid a splash of special effect that exploded the crat shielding the car. Bond actor Pierce Brosnan drove onto the scene in his Atlanta Blue Roadster . Showcased in a segment of Todays Show Results Extensive coverage in both broadcast and print (Hard Copy, This Mornings business, The Money Wheel, all major network news programs) Cartoons published in newpaper

The Final Pre-Launch Marketing Plan


4) Jay Leno Tonight Show
November 1995 Z3 appeared on the Tonight Show prior to the Golden Eye premiere. Bmw was trying to reach out to wide audience by Promoted movie and car Features Jay Leno using the car in his show Bond to dodge all approaches from NBC security Took calculated risk and gamble Result Worked Out Very Well

The Final Pre-Launch Marketing Plan


5) Radio DJ Program
Early November 1995: 25 radio stations were participated Word of Mouth effect But was the most at risk Features Innovative ideas used by DJs Gave away Z3. Result Got brand into conversation milieu. 6000 spots against 3800 promised. 3 Times Word of mouth effect of other programs

6)Go: An American Road Story Video


On December 1995, BMW created a story that provides a celebration of the road focused on the emotional character of the driving experience

A cross country Road Trip with Z3

The Final Pre-Launch Marketing Plan


7.) TV and Print Advertising
40% Traditional vs. 60% Non-Traditional on 1st November Humor and Fantasy instead of traditionally no-nonsense TV: Spots in Network Shows, Lifestyle Cable programs Print: Placed in business, lifestyle and Auto-buff magazines. Utilized to prime the launch of movie. Advertising Recall 15% of TV viewer (50% higher than Mercedes E class)
Seinfield ER 90210 Business weeks Forbes Fortune Traveler Vanity Fair Car and Driver Auto Week Auto World

Product placement in Network Shows

TV and Print Advertising

Lifestyle Cable Programming


Business and Lifestyle Books

Business and Lifestyle Books

The Final Pre-Launch Marketing Plan


8) Dealer Advertising and Promotions
Objective To be integrated from outset To motivate dealers to spend scarce resource on product to be launched after 6 months. How ? Dealer Visits and Presentation BMW and and MGM commited into it 150% Emphasized strategic importance BMW had 345 dealers and only 150 cars available , they had run the program in 3 waves with the vehicles circulating among dealers.

007: Licensed to Sell


Result

Private Film Screening, the theater arrangements for the screening

events by MGM studios Cocktail Receptions Circulated the Cars for Display Merchandise e.g. Bond License kits These generated publicity in media, such as: local newspaper, metropolitan television and radio

Success of the Phase.I Launch Plan


What is the success from Phase.I ? - Big hit 007GOLDENEYE : Earned $26.2M (First week) - Car Dealer Improved efficiency - Cost cutting from Non-traditional - Create the Niche Market Made a Paradigm shift of BMW Promotion way

Neiman Sep 11, 1995

100 orders within 2 days 6000 orders by Christmas Hit from 35000 to 125000 / day Apple also approached for rights to reference Extensive coverage in broadcast, print and news Cartoons in news paper

BMW Internet Site

Central Park Press Launch

Excitement

Point of infatuation
Desired End-State: Purchase

Possible End-State: Brand forgotten Time Phase I Phase II

Models

Buzzing with 007 Golden eye Movie


Cognitive Stage Press Launch Catalog offer Web Site TV Show Commercial TV

Stages

Affection Stage

Behavior Stage

Test Drive