Launching the BMW Z3
Roadster
Group 2
Vedit Malhotra 301061
Dhruv Khandelwal 301072
Nimit Bali 301086
Priyanshi Mittal 301090
Sarath K 301100
BMW’s BACKGROUND
Drop in sales Program undertaken in 1992:
o Sales started declining in the o Re-positioning: “Ultimate Driving Machine”
mid-to late-1980s
o Adjusted model prices
o Competitors: Lexus, Acura and
o Improved the dealer network
Infiniti
o Positioning (before 1992): o Product line improvements
“Yuppie Status Symbol” o Franchise expansion into youthful targets
Overall Business Strategy: To provide the world market with luxury/performance vehicles that were each “the
best in its class, with a unique and definitive positioning in the marketplace.” While focused on being “the
best” rather than the “biggest”
NEW PRODUCT DEVELOPMENT
Captured the
essence of Evoked
Decline of
Selection of the worldwide
the brand
and fit best
BMW’s
heritage as a
Niche
motorcycle Opportunity
“Roadster” concept market
with overall
BMW
producer of
roadsters
Positioning
Psychographic rather than demographic target market: “Love for Life”
Why Non traditional Marketing?
- To weave car into the fabric of American experience
- Leverage the buzz to promote the brand
- Selected Dick Clark Corporate Productions as promotional agency
Media Selection
- Multiple media agencies integrating to form a team environment
- A TV show Sponsorship
- Fashion World Tie In
- Selected Fallon as Agency
- Based on proven experience in integrated and electronic marketing, key skill for non traditional
marketing
Z3 Roadster in “The Golden Eye”
- Reaches out to two hard-to-reach audiences:
- Foreign viewers
- Young People
- High visible placement with celebrity endorsement
- Without a fee:
- MGM got the use of prototype vehicles for the movie
- MGM also obtained worldwide rights to reference the
placement
- Perceived fit between Bond & Z3 brand personality
- BMW looking for a glamourous hero
- Bond as handsome, wealthy, resourceful & adventurous
- Man who loves life and is in control of his destiny
- Known for using technology with penchant for fast cars
The Quintessential hero for a quintessential car!
NEIMAN MARCUS CATALOG OFFER
Featured in Sept’ 95
Known for unusual product offering
20 units over 3-½ months
100 orders in two days
6000 orders till Christmas period for 100 cars
Source: "It's a Wrap (But Not Plain); From Budweiser to BMW, Brand Names Are Popping Up More and More On Screen,"
BMW INTERNET SITE
Website was out in Oct’95
“Build Your Own Roadster” module
Hit rates tripled (125000 from 35000 hits per day)
Apple used reference in their advertisement
Source: The Los Angeles Times, September 3, 1995, p. 4.
PRESS LAUNCH IN CENTRAL PARK
Most prominent PR event in Nov’95
200 media representatives
Extensive coverage in both broadcast and print media
Mentions in all major network news programs
Source: Que is the research and development engineer responsible for design of Bond's state-of-the-art weaponry.
JAY LENO TONIGHT SHOW
Reached out to wide audience in Nov’95
Promoted movie and car by Bond
Took calculated risk and gamble
Worked out as per McDowell
Source: The Los Angeles Times, September 3, 1995, p. 4.
RADIO DJ PROGRAM
Featured in Nov’95 most risky element
DJ’s from 13 major metro markets
Screened on the basis of personality ,content and listener
demographics
25 radio stations participated
3 times the word of mouth effect
6000 spots from the event -3800 promised
Source: "It's a Wrap (But Not Plain); From Budweiser to BMW, Brand Names Are Popping Up More and More On Screen,"
“GO: AN AMERICAN ROAD STORY”
Conjunction with Dick Clark Productions
Focused on the emotional character of the
driving experience
Source: The Los Angeles Times, September 3, 1995, p. 4.
TV and Print Advertising
Produced by their new agency Fallon McElliglot
Scheduled to break nationally on Nov 1st,95
Non- Traditional Spirit was maintained
Humor and Fantasy instead of a no nonsense approach
Two Television spots placed in popular network shows
Print Advertising in Business and Lifestyle Books & Auto Buff
magazines
Dealer Advertising and Promotions
Dealers to be Integrated into the promotion
Dealer Visits to emphasize the strategic value
150 cars only available for 345 Dealers to display
3 Wave program with Vehicles circulating
Private screening of Bond film before box office opening
Cocktail Receptions and 007: Licensed to sell kits
Theatre arrangements by MGM Studios at dealers expense
Launch Expenditures and Introductory year
sales
Great Performers
• Ford Contour
• Dodge Neon
• Ford Windstar
• Land Rover Discovery
Poor Performers
• Acura SLX
• Kia Sportage
• Hyundai Accent
• Infiniti I-30
SUCCESS OF PHASE I LAUNCH
40/60 Split between traditional and non-traditional elements
Goldeneye received a big opening weekend
9000 pre-bookings for Z3 by Dec 1995
Favorable product reviews
OUTCOME: A successful launch and creation of niche for Z3 Roadster
• BMW- not the • Too serious
biggest but the best corporate image
• Franchise Expansion • Z3 was perceived to
• Non-traditional be a German made
marketing car
Strengths Weaknesses
Threats Opportunities
• Competition from • Cars are not as
Mercedes expensive as
• People not German-made cars
accepting a German • Its first Auto plant
car in U.S outside Europe
STRATEGY FOR PHASE II LAUNCH
Z3 launch holds great strategic importance for BMW brand
A high involvement, emotional purchase
Targeted towards a market defined in psychographic terms
Higher impact per dollar spent on non-traditional activities as compared to
traditional activities
Therefore, continue with successful combinations of non-traditional elements in order
to sustain the interest & excitement built during Phase I and convert it into orders
THANKYOU
