Launching The BMW Z3 Roadster

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Launching the BMW Z3 Roadster

Company Background

BMW wanted to grow in US


Target to achieve
Increase sales to 100,000 in US market
Opportunity
Declining worldwide Motorcycle market

Options Available
Race Cars
Dune Buggies
SUVs
Roadsters

Why BMW Selected Roadster


Fit with the overall positioning Performance & LuxuryUltimate driving Experience
Evoked BMWs heritage
First mover advantage
Liked by all segments of consumers.
Gen X-Interested in unique image statement
40s-Desire to have own a Roadster
Baby boomers-Yearning for Roadsters of yesteryear

Primary Goal
To expand the BMW franchise and rejuvenation of
the brand
Weaving the car into the fabric of American
experience
Putting it in the American landscape
Aligning in with everyday experience
Establishing as a cultural icon

Components Of Advertising

Multi-Media
Primary Idea was to experience the media in different voices
Request was sent to different agencies
Few agencies were asked for a presentation
Based on past experience and key skill in NTM, Fallon was
selected as the agency

Why Launch product in a movie?


Adds as Glamour
Reaches out to a wider audience including local and
foreigners
High visibility with celebrity endorsing the product at a low
cost

BMW Z3 with James Bond in The


Golden Eye
BOND James Bond
Perfect Build
Popular
Handsome
Wealthy
Resourceful
Adventurous
Fun Loving

BMW Z3
Masculinity
High Performance
Perfect Figure
Solid German Engineering
US Built
Reliable

BMW Z3 GOLDENEYE - YouTube_2.MKV

BMW-MGM Partnership
Co-launch of
1.
2.
3.

The Bond Actor


BMW Z3
And the Golden Eye film

.BMW
1. Covered product cost
2. Invested in advertising as Z3 as the new bond car
.MGM
.Supported Z3 in the movie trailers and promotions

The final Pre-launch marketing plan

In January 1995 deal with


MGM for Golden Eye.
Complimentary promotions
for Pre sell Z3 .
Stimulate interest in other
BMW models , and generate
dealer traffic.

Other launch programs


were:
a.
b.
c.
d.
e.
f.

Neiman Marcus Catalogue


Offer
Featuring Z3 on BMWs
website
Press launch in central park
Jay leno tonight show
Radio Dj Program
TV & print advertising
(Traditional marketing)

Neiman Marcus Catalogue Offer


Its a publication renowned for its unusual product offerings.
BMW had then planned to promote the special limited edition
bond roadster in the Neiman Marcus Catalogue.
In which customers will get Special Limited Edition Bond
Roadster.
BMW initially set target to sell 20 cars in 3.5 months , they got
100 applications in just 2 days. Hence increase target from 20
to 100.
By Christmas Neiman received 6000 customers application for
100 cars.

Featuring Z3 on
BMWs website
Clips from Golden Eye
and today show featured
on site.
New module Build Your
own roadster is added.
MSRP for each car is
provided as selected by
customer.
Hits on site jump-off from
35000hits/day to 125,000
hits/day.

Jay Leno tonight show


In early November just
before golden eye
premier , z3 appeared on
famous show.
BMW offered use of Z3 to
leno.
It was a calculated
gamble as BMW doesnt
know what leno will say
about the car.

Press launch in central park

Biggest promotion event , where


Z3 was formally introduced to the
public.
This event was covered by 200
media representatives.
Golden Eye character Q
describes features of BMWs
latest invention.
Generated extensive coverage
both in broadcast and print
media.

Radio DJ program

Qualifying DJs were approached with


the opportunity to design a program
segment that would somehow
incorporate BMW z3 into their radio
shows

25 radio stations participated with some


interesting programs
The DJ program was considered the
most at-risk element of the plan. Only
one and half week day before the day.
That management finally committed to
go with it. but it was great.

The DJs granted amazing to our product


message. it had three times the word of
mouth effect of other programs.

T.V. and print advertisement:


BMW chose Fallon McElligott a new agency to produce its
advertisements .
the new advertisements stated that James bond has chosen BMW z3 as
his new car over Austin martin. They wanted to show a new James bond
to the world with his new car.
The tv campaign has managed to get a placement in popular network
shows and lifestyle cable programming.
They also advertised in many business, lifestyle books and auto buff
magazines. Advertisement became heavier and heavier as the release
date of bond movie was coming closer. The result of the advertisement
was very impact full

Dealer advertising and promotions


Initially, dealers were not overly excited about the new BMW
car which will not be available till march of the following
month
Only 150 cars among 400 dealers
They were motivated by the name of MGM
Promotional packages for dealers include: screening of the
bond movie and the car before the box office film opening.
Dealers hosted cocktail parties for their best customers.
007:licensed to sell kits were made.

Success of phase 1: Launch


Launch plan was budgeted 40:60 traditional and nontraditional ways of marketing.
Was supported by MGM
Was a great success
9000 pre bookings, compared to expectations of 5000.
Z3 got hike from the bond movie golden eye, which was the
great success for the new roadster.
People can relate the car from the movie, the car which
bond drove.

Phase 2 launch strategy


Phase 1 created a paradigm shift at BMW
More value was given to non traditional ways of marketing.
This will be more cost effective
As the meeting progressed fond memories of Hollywood
premiers and rendezvous in central park with celebs were
mixed with recognition of $600 million investment in the
Spartanburg.

Q1.What is the strategic significance


of the launch of Z3?

Q.2 What benefits and risks McDowell received by following Non Traditional marketing?

Benefits
1.
2.
3.
4.

Cost-Effective
Provided a broader base
Efficiency with WOM, leveraging the buzz
Opened gates for new method of promotions

.Risks
1. Loss of control
Timing
Target Audience
Over what is seen

2.
3.

Difficult to measure impact


Do not guarantee success as traditional method

Q.3. How does NT marketing work?


NTM fell in line with the goal of the team
Negotiated with MGM
Co-launched with the movie James Bond movie The Golden
Eye
Gave them exposure to Global audience as well
This was cost effected method with global audience
The demand escalated with strong WOM
Limited edition Bond roaster was available
Press launch in the central park

Ques 4- In the case McDowell says, We will probably


never return to traditional programs after getting the
taste of the power of the program like this. Is it a
paradigm shift? If so from what to what? Compare both.
Yes, it is a sort of paradigm shift.
The shift is from the traditional ways of marketing to non-traditional ways.
The shift has been arise because of the great success of the nontraditional ways of marketing in the launch of the new roadster, Z3
The traditional marketing provides a false sense of security with more
cost involved in it. It would have cost BMW 3 times more if they relied
completely on the traditional ways of marketing.
The company used the traditional media of publications like TV and
magazines in the non-traditional way.
So, the Non Traditional ways are clearly more beneficial for marketing
and were more cost efficient.

Q5.How do you measure the success of Z3 launch?

40/60 split between traditional and non traditional elements.


Bond film had largest opening weekend in MGMs history.
Over 9000 Z3 were booked by Dec 1995 , to what company
projected 5000.
Dealers upgraded to meet the challenge , as traffic in the
dealership was up.
This non traditional marketing trend costing one third of what
company does with traditional marketing.
Edge over competitors : launch time and price $28,750.

With this kind of massive promotional activities


BMW was able to achieve mind of customers.
The 4Cs
Customer Solution: BMW always work hard for their customer needs &
fulfilling it. They believe it is important to satisfy customer needs and keep
them satisfied.
Customer cost: Z3 was launch at an incredible price $28,750
.
Convenience: Customer can choose from various options of interior and
exterior of Z3 along with tthat they can book their test drive appointment.
Communication: @4 hrs hotline customer care along with BMW connected
drive.

Q6.What does BMW really need to accomplish in


phase II?
Sustaining interest
o Dealers need to deepen BMWs relationship with self selected
prospects.
o How they will do it ?
Contact: Via mails and videos BMW can tell customers whats in store for
them.
Rides: Free rides and merchandises will keep their taste intact.
Updates: Giving them constant update about their cars which can build
anticipation.

Convert interest of customers into


orders
From Excitement to Sale

Visibility /
Exposure

Buzz
Word of
mouth

Interest /
Desire

Sales /
Purchase

Q7. What products or circumstances


are suitable for NT marketing
- Good for
High involvement products and emotional purchase
Target defined in psychographic segment
Excitement generation
Intensively competitive with high ad clutter
But unpredictable and risky
Measurable system not defined

Why did BMW select non-traditional


marketing
- Non NT marketing is fit:
To weave the car into the fabric of the American experience.
Also to get the car on peoples conversational agenda
Segmentation, non-traditional marketing is more cost
effective

Cerdits
Kshitij Gupta-27
Puspinder Singh-43
Shubham Sogani-53
Sunny Gupta-57
Anmol Goel-66

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