BMW

BMW Z3 Roadster

Group 4, Section A

Ajitesh 08P007

Anuj 08P013

Reeti 08P039

Siddharth 08P049

Subhratosh 08P050

Varun 08P053 1

BMW Business Strategy

• Opening of a franchise in USA• Targeted the youth• Changed its positioning from “Yuppie Status

Symbol” to “The Ultimate Driving Machine”• Make improvements in the product line• Improve dealer network

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The BMW Z3 Roadster

• Niche market• Concept adopted because it fit best with the

spirit of BMW• First BMW “Made in America”• Targeted at Generation Xers, men & women

in their 40s and nostalgic late Baby Boomers

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Objectives of Roadster Launch

There were two main objectives:

1)To use the roadster to motivate & stimulate the dealer network to meet high standards to qualify for the roadster

2)To build an order bank to enable the new Spartanburg plant to build to the specifications of BMW customers

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SWOT Analysis

StrengthsStrong company reputationYouthful targets expanded BMW franchise into the United

States

WeaknessesCompany setbacks imposed by Lexus, Acura, and InfinitiReputation as only a German car manufacturerNo proven success as global company

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Opportunities• Opportunity to reach larger market with franchise in the

United States• With non-Traditional PR and Advertising the target market

will “self select”• Bond movie succeeds then the car will succeed• Younger audience will be interested in BMW because of the

Z3

Threat• Non-Traditional PR and Advertising is very risky• Porsche and Mercedes are coming out with similar car• Customers may not be willing to be on a waiting list• Dealers may not trust the instability of non-traditional PR• BMW has no control over where and how the Z3 will be used

in the movie6

Goals of the Z3 Launch

Expand the BMW franchiseRejuvenate the BMW brand by positioning the Z3

squarely in American cultureSettling into the hearts and minds of the American

publicTransition from Made in Germany Made by BMWUse the roadster to stimulate dealers to meet high

standardsBuild an order bank of 5,000 cars and increase brand

sales to 100,000Spillover a youthful image from the car to the BMW

brand7

Paradigm Shift in Marketing

• Change from traditional to non-traditional elements• Create a “Buzz” i.e. leverage the excitement &

enthusiasm of the core customers base in a way that would draw broader attention & interest in the brand

• Focus changed from rational to emotional appeal

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Traditional Marketing• Newspaper and TV advertisements• Controlled Audience• Results more easily forecasted• All costs are known• Generally expensive

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Non Traditional Marketing

• The following methods can be used:– Product placement in a premier film– TV show sponsorship– Fashion world tie-in

• Focus on awareness• Leverage the buzz• Cannot fully control what is said and to whom• Relies on audience self selection• Challenge of translating awareness into sales• Difficult to measure impact

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First Marketing Element• The GoldenEye product placement• BMW/MGM agreement signed in July 1995• MGM got the use of several prototype vehicles

for their movie• BMW got the placement of Z3 in GoldenEye and

obtained worldwide rights to reference that placement in corporate communications through March 1996

• The Z3 appeared in the movie for only 90 seconds

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Additional Z3 Launch Elements

• Neiman Marcus Christmas Catalog offer of a special Bond Edition Roadster

• featuring the Z3 on BMW’s website• Unveiling the car at New York’s Central Park• An appearance on Jay Leno’s Tonight Show• The Radio DJ program• “Go: An American Road Story” Video

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Neiman Marcus Catalog Offer

• A publication renowned for its unusual product offerings

• The catalog insertion and vehicle were featured on the Today Show on September 11.

• BMW and Neiman Marcus had set initial sales goal of 20 cars over 3.5 months

• Received 6000 customers orders by Christmas

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BMW Internet Site

• Featured clips from Golden Eye and Today Show

• Featured “Build your own roadster” module developed by the Fallon Agency

• Provided the MSRP for the car with options as selected by the user

• Hits tripled from 35,000 per day to 125,000 per day

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Press Launch in Central Park

• Covered by over 200 media representatives • Golden Eye character Q introduces Z3 • Exploding crate by a secret code revealed the

car• Bond actor Brosnan drove his Z3 through

Central Park• Generated extensive coverage in both

broadcast and print

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Jay Leno Tonight show• BMW offered use of Z3 to Leno• Show was aired before Golden Eye premiere • It was a carefully calculated gamble but BMW

had no idea what Leno would say or do with the car

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Radio DJ Program

• DJs were screened on the basis of disc jockey personality, show content and listener demographics

• Competition included DJs from top radio stations

• DJs designed short programs incorporating Z3• Most risky of the 6 programs• BMW got over 6000 spots from the event

while only 3800 were promised

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“Go: An American Road Story” Video• Mini movie about a man who relives a cross

country road trip• Concept is “celebration of the road focused on

the emotional character of the driving experience”

• Video available to consumers through 1-800 number in December

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TV and Print Advertising• Tonality of the ad was bold, witty and

entertaining

Two television spots scheduled for placement in popular network shows(Seinfeld, 90210 and ER) and lifestyle cable programming

National print advertising was placed in business and lifestyle books(Business Week, Forbes, Fortune, Vanity Fair, Traveler) as well as auto buff magazines (Car and Driver, Auto Week, Auto World)

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Dealer Advertising & Promotions

• Only 150 cars to share with 345 dealers• BMW began dealer visits and emphasized the

strategic value of the launch• Dealers hosted screening of Bond film• BMW gave their best consumers “007:

Licensed to Sell” publicity kits• Car toppers and show room displays were also

made available to participating dealers

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Success of Phase 1• 40/60 split between traditional and nontraditional elements• Bond film had largest opening weekend in MGM’s history• Over 9000 Z3 products were pre-booked by Dec 1995 as

compared with 5000 projected• Dealers upgraded to meet the challenge• It would have cost at least three times more to do what BMW

did if they would have relied on traditional media

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The Product Z3

There were at least three good reasons for being curious about the product Z3

• It was a Beemer made with careful German Engineering

• It was built in Spartanburg• It was priced at just under $30,000 which

seemed like a bargain

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ISSUES

• To convert the interest of prospective customers into orders

• To sustain the interest of customers who are waiting for their cars to be built

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Phase 2 Launch Strategy

• Sustaining interest– Dealers need to deepen BMW’s relationship with

self-selected prospects• Direct mail and videos can give the customers a

taste of what is in store• Demo rides can keep the customers happy• Progress updates can build the anticipation of the

public for the product• Continue with non-traditional marketing– Cinema advertising– In flight videos targeted at business travelers

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Media Plan

• Keep PR fresh to create “buzz”• Focus on PR events:– One year reunion for Z3 owners with Golden Eye

cast– Trip to Spartanburg to design your own roadster– Get buyers to talk about product

• Maintain 40/60 ratio• Only pay for print and TV ads

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THANK YOU

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