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BMW FilmsPresented by Team#3: Hyo Suk Kang, Laszlo Banhegyi, Petr Shchekochikhin, Se Jong Kang, Sung Ho Jie
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Contents Case problems Company history Customer base & Product strategy Identify goals of the campaign Evaluate the success of the campaign Choose one out of 4 options Postscript
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HyoRees Anystar Campaign
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Case problemsWhat were the goals of the campaign? What was the motivation behind the idea? How successful has the campaign been? Evaluate the success of the campaign against its goals set above? What should BMW and McDowell do for an encore? Which option should he pick?
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Company history BMW has experienced fluctuated Sales due to the outdated image (Fashion brand, Fad, Yuppie)1970sHottestluxury brand19681986200019921960sNicheforeign car1980sParadigm Shift Conspicuous consumption New pragmatism Competition from Japan 1990s Reinvigoration Launch new models and series Aggressive pricing DOS reorganization Substantially positioned as a Luxury brand (Exh.9)1968-2000 U.S. BMW Unit Sales (in thousands)200.0100.0
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Customer base & product strategy Targeting a different psychographic constantly with 3, 5, 7, Z, X seriesCaring about statuspractical & safety Demographic: 46 years old, well-educated, married Psychographic: Tended to be leaders, worked and played hard Early achiever, active, engaged in sports, Preferred perfect product, enjoyed driving experience Internet users (85% of BMW purchasers)
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Identify goals of the campaign Keep growth and maintain sales Attract young generation without alienating old generation3. Strengthen brand image in luxury segmentWhat is the most efficient way of promotion?Luxury brands: Media expenditures (dollars/unit, 2001)
Chart5
292.7831762283
836.2241777278
649.1904469352
1061.4411104307
Sheet1
Visitors
1618170.071.19
192421.50.183.87
253429.50.3510.325
354439.50.228.69
455449.50.136.435
600.063.6
Average age34.11
Buyers250.12.5
3044370.3713.69
456454.50.4524.525
700.085.6
Average age46.315
Spendings on promotion per each car sold (2001)
SalesExpendituresExp/Sales
Lexus223983$187,300,000$836
BMW213127$62,400,000$293
Mercedes-Benz206719$134,200,000$649
Cadillac172073$137,300,000$798
Acura170469$215,600,000$1,265
Lincoln158914$37,300,000$235
Volvo125710$93,400,000$743
Audi83283$88,400,000$1,061
Infinity71365$108,900,000$1,526
Jaguar44532$58,800,000$1,320
BMW213127$62,400,000$293
Lexus223983$187,300,000$836
Mercedes-Benz206719$134,200,000$649
Audi83283$88,400,000$1,061
BMW292.7831762283
Lexus836.2241777278
Mercedes-Benz649.1904469352
Audi1061.4411104307
Sheet1
Sheet2
Sheet3
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Evaluate the success of the campaign In 2001, 13% growth in sales compared to 2000
Successfully integrated channel marketing : 82% of visitors of website are under 44 BMW targeted right customers
Contribution to improve Brand image : Elimination of the stigma associated with BMW brand (status symbol, yuppie-machine)
The ultimate in new-media, high-end branding has arrived - Time, May 7, 2001
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Evaluate the success of the campaign45%6%13%22%59%8%37%10%304564344555CustomerVisitor 94%Recommended films to others82%Non-BMW owner Age segments High recommendation Targeting new customers
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Choose one out of 4 options Consideration: leverage, easy implication, cost-effective, risk averse approach
OptionsDVDNew FilmsBig MoviesDo NothingPros Easier for traditional customers Quicker distribution Better integrated marketing approach Encored success Relatively low cost Emotional attachment to main character Emotional attachment to main character Another Innovative marketing approach No copycat Innovative image Cons No self screen One way communication Copycat Risky Lack of experience in that business More time & effort for something new High Marginal utility in FilmingVVXX
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Postscript It was so popular that BMW produced a free DVD of the series There were over 100 millionfilm views and numerous awards later The Hire ended its internet run on October 21, 2005 The Hire's success led way for BMW to create three more short films and comic series in 2002
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Thank you
