Bmw Z3 Launch

In: Business and Management

Submitted By vaswinik
Words 568
Pages 3
Q1. What factors underline BMW’s desire to shift to a ‘non-traditional’ marketing venue for the Z3 Launch?

1. To create a buzz that could be leveraged (From James McDowell – Page 3). 2. It was more cost efficient per dollar spent and made an impact on larger group of publics. 3. Unconventional way of introducing a unique vehicle. 4. It believed nontraditional media resulted in more and lasting exposure.

Q2. Do you agree with McDowell that the Z3 launch qualifies as a ‘paradigm shift’ in the marketing for BMW and for marketers in general?

Yes, as the results are there to see. Also there were many ‘firsts’ in the world of marketing that BMW team did to grab the attention of potential buyers. 1. Association with a successful movie franchise that resulted in creating a buzz that competed equally with the star of the movie. 2. Not having to spend considerable amount on promotion through a movie star. 3. Helped in sales or bookings when people associated the car with the movie and the star. 4. 9000 pre-bookings as compared to a projected 5000 by December 1995. 5. 50% lesser spend based on share-of-voice/share-of-market rule. 6. Higher impact per dollar spent. 7. Increase in dealership traffic.

Q3. McDowell claims that he will never go back to traditional marketing after getting a taste of the non-traditional venue. Do you agree?

No, not all the products will be launched with the same zest and zeal. This kind of non traditional approach was taken for the reason of creating a niche market and they were successful at doing that. Using these methods for creating a buzz for each product will result in the method losing its sheen over the long run. It has to be limited to specific/new products on important occasions.

Q4. Was the Z3 launch successful? How do you know?

1. Helped in sales or bookings when people…...

Similar Documents

Bmw Films

...helped launch the career of Clive Owen into the mainstream. The Setup Like most car companies, BMW traditionally executes advertising campaigns (i.e., television, print and radio) to support new vehicle launches. However in 2000, there was no new vehicle launch for BMW, so the opportunity to spend advertising budget on pure branding arose (a marketer’s dream). The Key Insight Through extensive consumer research, BMW found their typical customer was 46 years old, with a median income of about $150,000 (USD). Two-thirds were male, married, and had no children. Delving deeper, they discovered this nugget: Roughly 85% of BMW purchasers used the Internet before purchasing the-hire-logo On April 26, 2001, the now defunct bmwfilms.com launches with a series of short films available for viewing. Clive Owen plays the driver, a man who goes from place to place (in sexy BMW’s of course), getting hired by various people to be a sort of transport for their vital needs. The series launches with Ambush directed by John Frankenheimer and featuring the BMW 7 series. Along with Ambush, four other short films were released in 2001, including: - Chosen directed by Ang Lee (Crouching Tiger, Hidden Dragon) featuring the BMW 5 series >>> scroll to the bottom of this article - The Follow directed by Wong Kar-wai with Forest Whitaker, Mickey Rourke, and Adriana Lima and featuring the BMW 3 series and Z3......

Words: 650 - Pages: 3

Bmw Z3 Roadster

...Launching the BMW Z3 Roadster BMW Z3 Roadster was a new product concept that reflected a niche opportunity. The main objective of the Z3 launch was to reposition their German-made, driving performance, tradition bound, and precision engineering cars as more stylish and fun to drive cars in the American culture. This risky movement of changing the brand personality was done using both nontraditional and traditional marketing tools. Some of the nontraditional methods used were movie placement, Neiman Marcus Catalog offer, BMW internet site with “Build-Your-Own-Roadster” module, Press launch in Central Park and Jay Leno Tonight Show. Traditional methods such as TV and Print advertising were also used, while maintaining the nontraditional spirit in them. Nontraditional marketing methods are capable of creating word of mouth which requires no out-of-pocket expenditure compared to more expensive TV advertisements. They are also more cost efficient per dollar spent, especially in BMW’s psychographic segmentation. Moreover, nontraditional media like movie placement give greater exposure and visibility even reaching the two audiences that are hard-to-reach through network TV or print: foreign viewers and young people. The positive feelings about the movie and movie stars can also be transferred to the brand, ultimately building the overall brand equity. These methods are more credible, unique and impactful as they are generated by the......

Words: 1829 - Pages: 8

Bmw Case

...to improve launch quality? Cause and Consequences of BMW quality problems In this case, there are few cause and consequences that BMW face during their production with newly launch products and resulting in some major impacts that puts BMW in disadvantage position when competing with its competitors. One of the reason that affects the launch quality was the designing time duration. In styling, BMW took around 2 years on designing and finalize the launch products which is longest time would be spend on any automobile company. However the Japanese automobile company would likely only to spend no more than 6 month to finalize the products which is 3.5 times effective then BMW. Nevertheless BMW argues that the time were spend in this stage was essential as they have to work from creating a excellent durable design and also to ensure every single components to ensure it fits and matched into the launch products. This slow decision making process by BMW may cause few impact towards the company and even loss. According to Gilani Natasha, he state that business with slow decision making process may cause organization to increase organization cost and impedes performance. Besides that, BMW also will lost their competitive advantage towards its competitors as they could not able to produce as much variety of choice of launch products then the Japanese automobile company because of the time duration were took too long to proceed for a launch products. Besides that, BMW use to......

Words: 1193 - Pages: 5

Study the Development of Bmw

...NOVEMBER 1, 2001 STEFAN THOMKE BMW AG: The Digital Car Project (A) “Looks great,” thought Chris Bangle as he walked by a picture of the new BMW 3-Series which was about one year away from its scheduled 1998 launch in Germany. Bangle, a former Wisconsin native, who became the company’s director of worldwide design at age 35, glanced at his watch. In just 30 minutes, he would meet with other senior managers about project recommendations that might revolutionize the way cars had been designed over the past eight decades at BMW. The meeting was in the inner sanctum of BMW’s research and engineering building, the Forschungs-und Ingenieurszentrum, known locally as the “FIZ” (pronounced “fits”). Built in 1987, this massive building centralized the work of 40 facilities previously scattered through Munich. All work from product concept to pilot production occurred in the FIZ. But only a privileged few out of the five thousand who worked in the building had ever visited this corner of the company where the meeting was to be held. Bangle pulled out his card key that would let him pass through a sleek space-age security system that resembled an oval chamber. After negotiating a push card entry system, a set of doors slid close behind him and another set opened up to reveal the styling area—a world of future visions, inhabited by many life-size clay models of cars under development that would eventually come to life on roads of the next millennium. BMW had weathered several storms......

Words: 8363 - Pages: 34

Launching of Bmw Z3 Roadster -Case Study Report

...MARKETING MANAGEMENT CASE STUDY : Launching the BMW Z3 Roadster SYNOPSIS BMW, a German automobile manufacturer, known for its German engineering and quality, had established itself as a strong brand in the luxury/performance segment in U.S.A. However due to increasing competition from car makers such as infinity, Lexus, Acura, its sales dropped during the period mid 80’s to late 90’s . The case deals with the launch, of the now infamous BMW Z3 roadster, a car that revolutionized and rejuvenated the boring American motor industry back in the mid 1990's. The case talks about the successful first phase launch of this new drop top beauty. It focuses on the customers and how they suddenly picked up the marketing cues and stories depicted by the various promotional parties that were led by James McDowell, BMW's marketing vice president. This was a marketing campaign that gained a lot of merit and success by using unconventional promotion methods to put their product out into the public. The primary methods tried to stay away from the usual billboards and print media. Rather, the marketing teams decided to take the car into the new world of cinema and multimedia, where sound, sight, video and technology would promote the car during a time of accelerated IT growth. The team at BMW decided that since the Z3 was a new unconventional' car, it also required equal unconventional marketing methods to match its identity. The BMW Z3 was a lifestyle car and what better way to put......

Words: 1441 - Pages: 6

Bmw Z3 Roadster

...LAUNCHING THE BMW Z3 ROADSTAR 1. BMW Overview 1916 760 53 110,000 (2013 (2013 ) ) BMW , . BMW , Bayerische Motoren Werker BMW, , . 2 1. BMW Overview 3 2. BMW History 1916 1923 1928 1945 3 R32 / ( 2 BMW 5, 3, 7 BMW , (Spartanburg plant) (BMW Dixi , 1929) ) BFW( Bayerische Flugzeug Werke AG) 1972 ~ 1977 1994 1995 1998 2000 , BMW (Rolls-Royce) 4 3. BMW Z3 Roadster BMW Z3 Roadster ( 2 1930 328 507 Z1 1,900cc 4 ) Spartanburg (South Carolina) 007 , Won the "Super Reggie" award for the best promotional marketing campaign of 1995. The BMW Z3 2.8 made Editor's Most Wanted Vehicle for 1999 Edmunds.com AUTOMOBILE Magazine awarded the BMW M coupe its 1999 Design of the Year. The 2002 BMW Z3 M Coupe became Top Gear Car of the Year 5 4. Case Questions 1) What is the strategic significance of the Z3 launch to the BMW corporation? Specifically, how BMW was hoping to redefine the BMW brand image? Yuppie Status Symbol Ultimate Driving Machine Biggest → The Best in Luxury/Performance segment : Spartanburg ‘Made in Germany’ ‘Made in BMW’ 4. Case Questions 1) What is the strategic significance of the Z3 launch to the BMW corporation? Specifically, how BMW was hoping to redefine the BMW brand image? Sheer Driving Pleasure Ultimate Driving Machine JOY Is BMW 7 3. Case Questions 2) Who were the main target consumers for the Z3? How did BMW segment consumers for the Z3 launch? Segmentation &......

Words: 461 - Pages: 2

Launching of Bmw Z3 Roadster -Case Study Report

...Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack. 78 Harvard Business Review | January 2008 | hbr.org STRATEGY STRATEGY by Michael E. Porter Peter Crowther SHAPE THE FIVE COMPETITIVE FORCES THAT Editor’s Note: In 1979, Harvard Business Review published “How Competitive Forces Shape Strategy” by a young economist and associate professor, Michael E. Porter. It was his first HBR article, and it started a revolution in the strategy field. In subsequent decades, Porter has brought his signature economic rigor to the study of competitive strategy for corporations, regions, nations, and, more recently, health care and philanthropy. “Porter’s five forces” have shaped a generation of academic research and business practice. With prodding and assistance from Harvard Business School Professor Jan Rivkin and longtime colleague Joan Magretta, Porter here reaffirms, updates, and extends the classic work. He also addresses common misunderstandings, provides practical guidance for users of the framework, and offers a deeper view of its implications for strategy today. IN ESSENCE, the job of the strategist is to understand and cope with competition. Often, however, managers define competition too narrowly, as if it occurred only among today’s direct competitors. Yet competition for profits goes beyond established industry rivals to include four other......

Words: 11000 - Pages: 44

Bmw Case

...from 2002 shows BMW attempting to focus purely on branding BMW in order to surpass competition in marketing innovation, gain market share and reach new sales goals of an additional 40% in the US. This focus on branding resulted in the production of 5 short films under the name BMWFilms that attracted the younger generation and neglected the current consumers. BMW should supplement this with advertising focused on their current consumer as well as additional customer service benefits for their current consumers who could progress from the 3 Series to 5 Series to 7 Series if properly maintained. Additionally, BMW in efforts to differentiate itself with seven new series in 2002 may potentially cannibalize the brand and force entrance into the mass-market. In order to avoid this issue BMW should focus on differentiating series and cars models from each other to better target their customers. In 2000, BMW had reached new record high sales in the United States after recovering from a record low in 1992. Due to this new high of sales along with no new car production for the next six months, there was an opportunity for branding BMW’s name specifically to differentiate it from the competition. This opportunity led to the creation of five short films that were only available online at BWMFilms.com. BMW hired Clive Owen as well as A-list producers to create these 5 short films that showcased BMW cars as supporting actors in dramatic plots. These films neglected the BMW customer......

Words: 1347 - Pages: 6

Bmw Z3 Case Analysis

...This case is based in the 90’s era when BMW decided to reinvigorate its sales and brand, make the BMW brand global and penetrate into the US market. The key challenges that lie in front of James McDowell, VP Marketing at BMW (NA) to launch a Phase II program for BMW Z3 Roadster are: a. Design a marketing campaign to create a sustained product excitement, continuing what was generated from Z3 Phase I program, until product is available at dealer stores b. Attract consumers based only the demand that can be met with production c. Choosing between Non-Traditional and Traditional media 1. Was the Z3 Phase I launch successful? In order to understand whether Z3 Phase 1 launch was successful, we need to look at different pieces TG, Objective, Creative Strategy, tactics and end-result first and then combine them to view the holistic success. Target Group and its need: NA consumer who is Luxury/Performance driven, has lover of life mindset and propensity to seek unique expression of individuality. Further he/she is looking for ultimate driving machine that provides excitement similar to what can be derived from driving a motorbike. Includes everyone from aspirational GenX to nostalgic baby boomers. For this target group, the communication objective of the Z3 Phase 1 Launch were as follows: a. Get people talking and excited about BMW Z3 in the context of American culture b. Stimulate the dealer network c. Build an order bank to enable the Spartanburg plant to build......

Words: 1397 - Pages: 6

Bmw These

...Polesie Title: BMW – A Company Analysis Thesis Language: English Background: The automotive industry is distinguished by a highly competitive market. Thus, the actors on the market struggle with increasing cost of production, development and mature markets. With the aim to increase profit margins and reduce costs, Volkswagen, GM and Ford are some companies, which use the same components in different car models and car brands. These companies have in other words succeeded in synergising research and development effects within the company despite car model and business area. By a contrast, BMW, an individual actor, has yearly shown strong financial results and has retained its market shares. This becomes of interest to study more profoundly, in order to find the factors behind a successful company and a strong brand. Purpose: The purpose of this thesis is to analyse the development of BMW during the past five years. Not only are the financial statements taken into consideration. In addition, a comparison to competitors and the market situation is also made. Delimitation and assumptions: This thesis is delimited to an analysis of BMW between the years 2001-2005. The thesis is based on the assumption that BMW is the most successful automotive manufacturer in the premium segment. Methodology: In the study of BMW both primary and secondary data are used. The primary data consists of an interview and secondary data is collected from annual reports. Results and Conclusion: BMW......

Words: 18022 - Pages: 73

Bmw Culture

...How would you describe the culture at BMW? 2. What model of leadership is illustrated at BMW? How does this impact BMW’s culture? 3. Using the concepts illustrated in the job characteristics model, analyze why employees derive high job satisfaction at BMW. 4. What attributes of organizational creativity are fostered at BMW? SOLUTION 1. BMW has an entrepreneurial culture that is characterized by high levels of risk taking and creativity. There is a commitment to experimentation, innovation, and being on the leading edge. Effectiveness means providing new and unique products and rapid growth. Individual initiative, flexibility, and freedom foster growth and are encouraged and well rewarded BMW’s entrepreneurial culture is rare in corporate Germany where management in Germany is usually top-down. BMW’s 106,000 employees are a network of committed associates with few hierarchical barriers to hinder innovation. From the moment they set foot inside the company, associates are overcome with a sense of place, history, and mission. BMW’s human resources department receives more than 200,000 applications annually. Those who make it to an interview undergo elaborate daylong drills in teams that screen out big egos. For the lucky few who are hired, a Darwinian test of survival ensues. Individuals from all levels of BMW work side by side. 2. BMW uses self-managed teams with......

Words: 905 - Pages: 4

Bmw Films

...Question: What was the objective of BMW films? Was it successful? The BMW is a car manufacturer with quite small market share in the U.S. market (slightly below 2%). Brand is being perceived as a yuppie and status car, while consumption patterns in USA market changes from “conspicuous consumption” to more pragmatic style. In comparison with Lexus and Mercedes Benz, BMW is perceived as less comfortable, roomy and dependable. Still, in 2001 BMW is at its top in terms on sales and brand strength. The company decides to continue its innovative advertising style (first innovative advertising – Z3 in James Bond series “Golden Eye”) and makes 5 short films with A-class directors, producers and actors. Short film series main actors are Clive Owen and BMW cars. The films were given a very warm welcome from audience, and were hailed by the critics. Now the company should decide what to do next. The objective of BMW film was stated by vice president of marketing Jim McDowell as “pure branding” and showing people “what makes a BMW a BMW”. Some unstated parts of actual purpose of short films are: 1) Increase BMW market share 2) Show customers different BMWs, like for example “If you want to change your 3 series to a SUV, you do not need to change the brand, we also have comfortable and spacey BMW X5”. Show them that BMW doesn’t end with luxury and/or sports cars, but also have other types of vehicles. 3) Make existing customer more loyal. 4) Change brand image to more timely and......

Words: 795 - Pages: 4

Bmw Z3 Roadster

...Launching the BMW Z3 Roadster January 1996 marked the beginning of Phase II of BMW of North America Inc.’s Z3 roadster introduction. Phase I had centered on the placement of the new $28,750 two-seat convertible in the James Bond hit movie, GoldenEye, which premiered several months earlier. While not yet critically evaluated, results of the “out-of-the-box” pre-launch campaign appeared very positive: word-ofmouth concerning the Z3 and the James Bond cross-promotion were favorable, and product orders far exceeded BMW’s initial expectations. The challenge now was to design a marketing program that would sustain product excitement until dealer product availability beginning in March. Phase II planning had to be undertaken within the context of other important events in the BMW product family: (1) the April launch of the redesigned 5-Series; and (2) the company’s role as “official international automotive sponsor” of the 1996 Atlanta Summer Games, which would begin in earnest with the Olympic Torch Relay 5-Series event in June. While these other elements of the BMW product family clearly impacted the Z3, the marketing approach and ultimate results for the Z3 would influence the whole BMW operation in the United States. Dr. Helmut Panke, Chairman and CEO of BMW (U.S.) Holding Corp. since 1993, noted that the Z3 was destined to be “the first BMW not made by mythical little creatures in the Bavarian woods. This car will be made in Spartanburg, South Carolina. Some people think BMW......

Words: 8686 - Pages: 35

Bmw Case

...Recommendations BMW, being a global company decided to open Spartanburg plant in North America. We think it should have had an approach to open few other plants in other top strategic parts of the globe at the same time. If it had done so, it might not have given an opportunity to its competitors in those strategic parts of the globe to open their plants or to develop a similar strategy. Doing so, BMW would have gained the edge over its competitors. The central goal of the launch was to expand the BMW franchise. But we feel that it was not necessary for BMW to stress so much on the American culture and settling into their minds and hearts because that may have hampered its recognition and success in other parts of the world. Rather, it could have addressed the general public all over the world. BMW knew it had 345 dealers and their goal was to expand the franchise. It produced only 150 pre-production cars for use in pre-selling promotions which were circulated among the dealers. This gives the public an internal picture of the BMW’s confidence level in the Z3’s success. It may have wanted to pre-produce more cars than the number of dealers for pre-selling promotions. The BMW/MGM agreement was orally sealed in January 1995 and formally signed in July 1995. This elongated time period of gap may have created opportunities for their counterparts to break or disturb the agreement. Another thing is BMW did not pay anything to MGM to place its product in the movie. This......

Words: 493 - Pages: 2

Bmw Project of Management

...and life. HISTORICAL BACKGROUND BMW was officially founded as a public company in 1922, but traces its origins to the pioneering days of German aviation all the way back to 1913. Two of these pioneering men, Karl Rapp and Gustav Otto, are credited by BMW as the "founding fathers". However, BMW owes its actual founding by three men: Josef Popp, Max Friz, and Camillo Castiglioni. These men brought BMW through many turbulent times in the company's early life, as well as taking the company public in 1922 to form BMW AG. BMW stands for Bayerische Motoren Werke. The BMW roundel badge is believed to have been partially derived from the logo of its predecessor company Rapp Motorenwerke, while ultimately taking on the colors and checkers of the Bavarian flag. On August 13, 1918 slightly more than two months before the end of first world war Bayerische Motoren Werke was converted into a stock corporation with a share capital of 12 million one third of which was held by the business magnate camillo Castiglioni. Franz Josep, the general manager of the former limited liability company, was appointed general director. So after the long time progress of the company, the Company in 2000 realigns itself with brands BMW. The BMW group has been systematically focusing on selected premium segments in international car markets since 2000 and over the subsequent years the model range in premium segment of the lower midsize class has been extended by the BMW-1 series and the large coupe and......

Words: 6797 - Pages: 28

News Watch Nintendo of Russia’s CEO attack his employeesRead more | डाउनलोड XAPK | The Railway Man