BMW Z3 Roadster Launch in USA
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BMW Z3 Roadster Launch in USA

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This PPT describes how BMW used non-traditional media to launch its Z3 Roadster in USA.

This PPT describes how BMW used non-traditional media to launch its Z3 Roadster in USA.

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  • Ultimate driving machine, great performance and luxury
  • Ultimate driving machine, great performance and luxury

BMW Z3 Roadster Launch in USA BMW Z3 Roadster Launch in USA Presentation Transcript

  • Launching The BMW Z3Roadster
    Suket
    Rajul
    AshishSinha
    Abhishek
    Anshuman
    PGPEX-III
    3/8/2010
  • What Are We Going To Discuss?
    About BMW’s Objectives
    How did they select Z3 Roadster for launch
    How did they select non traditional marketing
    How did they utilize the channels
    What are the challenges ahead
    How can we analyze it further
    3/8/2010
  • BMW Group International
    • Cars produced
    • BMW, MINI and Rolls-Royce
    • HQ in Munich, Germany.
    • Operations in 150 countries
    • Attractive 'four-cylinder' tower as main office building
    3/8/2010
  • BMW Sales Needed Attention
    3/8/2010
  • BMW Wanted To Grow Further
    • Target
    • Increase unit sales to 100,000 in the US mkt.
    • Promising youth segment
    • Opportunity
    • Falling Worldwide Market for Motorcycle which generated market of substitute product for the same psychographic market segment
    3/8/2010
  • BMW Had To Identify Right Product
    • Race Cars
    • Dune Buggies
    • SUV
    • Roadsters
    3/8/2010
  • BMW Selected Z3 Roadster
    • Captured essence of BMW brand
    • Performance and luxury – The Ultimate Driving Machine
    • Was best fit with positioning of driving excitement
    • Emotional substitute for motorcycle segment
    • Evoked BMW’s heritage as a producer of roadsters
    • Fit the corporate goal of being the best not the biggest
    3/8/2010
  • Z3 Concept Tests Were Conducted
    Revealed interest across life stage segments
    Image conscious Gen X
    Aspirational car for men and women in 40s
    Nostalgia for late baby boomers
    Identified commonalities across groups
    “Lover of Life” mindset
    Propensity to seek unique expressions of individuality
    3/8/2010
  • Spartanburg Selected For Production
    Germany America
    Spartanburg
    Munich
    3/8/2010
  • Why Spartanburg?
    Displayed commitment to dealers and American people that BMW is here to stay
    Provided cost advantages
    High cost environment in Germany
    Cushion against monetary fluctuations
    However, also posed challenges
    To convince consumers that quality of cars produced in the USA would be no different from cars produced in Germany
    3/8/2010
  • So What Did BMW Aim For?
    To expand the BMW franchise & market share
    Target of 100,000 annually in USA
    To rejuvenate the BMW brand by positioning the Z3 squarely in American culture and settling into the hearts and minds of the American public
    To make BMW a global brand
    Transition from Made in Germany Made by BMW
    3/8/2010
  • Why Did BMW Select Non Traditional Marketing
    3/8/2010
  • Components of Advertising
    Message Decision
    • American experience
    • Made by BMW
    Objectives Setting
    • Sales objectives
    • Communication objectives
    Budget Decisions
    • Placement in movie at low cost
    • NTM more cost effective
    Advertising Evaluation
    • Sales impact
    • Communication impact
    Media Decision
    • Co-launch with movie & star
    • 6 other NTM channels
    • Synchronized with movie premiere & product launch
    3/8/2010
  • Why Non traditional Marketing?
    Non traditional marketing is fit –
    To weave the car into the fabric of the American experience.
    Also to get the car on people’s conversational agenda.
    Then to leverage the buzz to promote the brand.
    For psychographic segmentation, nontraditional marketing is more cost effective
    3/8/2010
  • How The Media Was Selected
    Primary choice multi media including
    a product placement in a premier film
    a TV show sponsorship
    fashion world tie-in
    Selected Fallon as the agency
    based on proven experience in integrated and electronic marketing, key skill for nontraditional marketing
    3/8/2010
  • Why Product Placement In A Movie?
    Adds glamour to the product
    Reaches out to two hard-to-reach audiences:
    Foreign viewers
    Young people
    Highly visible placement with celebrity endorsement – “impact placement” - at an average of $40,000.
    3/8/2010
  • Z3 Roadster in “The GoldenEye”
    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 glamorous 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!
    3/8/2010
  • BMW-MGM “Co-Launch”
    Co-launch of
    The Bond actor
    The GoldenEye film
    And the BMW Z3 roadster
    BMW
    Covered product costs for prototype vehicles
    Invested in advertising Z3 as James Bond’s new car
    MGM
    Supported Z3 in the movie previews and trailers
    3/8/2010
  • And Here Is Z3 with Bond!
    3/8/2010
  • And Here Is The Scene
    3/8/2010
  • Other Marketing Channels Used By BMW
    3/8/2010
  • Need for Other Marketing Elements
    To Pre Sell Z3
    Golden Eye movie placement was just a teaser
    To close gap between Golden Eye Launch and dealership availability
    To stimulate interest in other BMW brands
    To reach a wider audience
    To reinforce brand image
    3/8/2010
  • Neiman Marcus, Today’s Show
    Sep’95
    Known for its unusual product offering
    Features
    Special Limited Edition Bond Roadster Launched in Neiman Marcus Catalog
    Catalog and Vehicle featured on Today’s Show
    Goal
    20 Units over 3.5 months
    Result
    100 units in just2 days
    6000 orders in the Christmas period
    3/8/2010
  • BMW Website
    Oct’ 95
    More information
    Virtual View of the Car
    Features
    Golden Eye film Segments
    Today Show Clips and Movie Offer
    Build your own Roadster: View Display and Price
    Result
    Hit rates tripled from 35,000 hits/day to 125,000 hits/day.
    Apple used this as a reference in their advertising
    3/8/2010
  • Press Launch in Central Park
    Nov’95
    Formal introduction
    Reach out to broadcast and print media
    Prepare the ground for movie launch
    Features
    Media attention: 200 media rep.
    Preceded by CEO Interview in “Today Show”
    Special Effects to generate Interest
    Result: Extensive Coverage in
    Print: “Hard Copy”, “The Morning’s Business”, “The Money Wheel”
    All major network news channels.
    3/8/2010
  • Jay Leno Tonight Show
    Nov’ 95
    Reaching out to wide audience
    Promoted movie and car
    Features
    Jay Leno using the car in his show
    Bond to dodge all security and enter
    Took calculated risk and gamble
    Result
    Worked Out Well as per Mc Dowell. Not much data.
    3/8/2010
  • Radio DJ Program
    Nov’ 95
    Word of Mouth effect
    But was the “most risky”
    When?
    Early November 1995
    Features
    Innovative ideas used by DJs
    Gave away Z3.
    Result
    Got brand into conversation milieu.
    6000 spots against 3800 promised.
    3 Times Word of mouth effect of other programs
    3/8/2010
  • Traditional Media Used In NT Spirit
    40% Traditional vs. 60% Non-Traditional
    TV and Print Advertisement s on 1st November
    “Humor and Fantasy” instead of traditionally “no-nonsense”
    TV: Spots in Network Shows, Lifestyle Cable programs
    Print: Placed in business, lifestyle and Auto-buff magazines.
    Utilized to prime the launch of movie.
    Advertising Recall – 15% of TV viewer (50% higher than Mercedes E class)
    3/8/2010
  • Dealer Promotion
    Objective
    To be integrated from outset
    To motivate dealers to spend resource on product to be launched after 6 months.
    How?
    Dealer Visits and Presentation
    Emphasized strategic importance
    Result
    Private Film Screening
    Cocktail Receptions
    Circulated the Cars for Display
    Merchandise e.g. Bond License plate
    These generated publicity in media
    3/8/2010
  • Challenges For Phase – II
    How To Sustain The Interest?
    How To Convert Interest Into Order?
    3/8/2010
  • Infatuated Customers
    Leaves Customer in Fragile Stage
    Exposure
    Fast and Emotional Response
    Requires Reinforcement
    Customer May Become Missionary
    Purchase
    3/8/2010
  • From Excitement to Sale
    Point of
    “infatuation”
    Desired End-State:
    Purchase
    Possible End-State:
    Brand forgotten
    Time
    Phase I Phase II
    Excitement
    Generating excitement,
    buzz, visibility
    3/8/2010
  • How To Sustain Interest?
    Maintain the taste of infatuation
    Contacts through mails, phone etc.
    Plan dates
    Demo rides
    Win hearts
    Progress updates to increase anticipation
    3/8/2010
  • How To Convert Interest Into Orders?
    Stay committed
    Deliver the product on time
    Build support system
    Expand dealer network
    Get married
    Convert purchase decision into a relationship
    Be caring and understanding
    Provide affectionate post purchase support
    3/8/2010
  • Critical Analysis
    3/8/2010
  • Was Phase 1 of Z3 Launch Successful?
    3/8/2010
  • Was Phase 1 of Z3 Launch Successful?
    3/8/2010
  • Should BMW Persist With NTM?
    McDowell wanted to. But...
    • Non traditional can not be repeated
    • Else it may become traditional
    • And lose the infatuating charm
    • Would they find such a combination again?
    • Successful Bond movie with new hero?
    • Will that be successful again?
    3/8/2010
  • Is NTM Good For All Products?
    Good for
    High involvement products & emotional purchase
    Ancillary / Support products with less risk
    Target defined in psychographic segment
    Excitement generation
    Intensely competitive with high ad clutter
    But
    Unpredictable and Risky
    Measurement system not defined
    3/8/2010
  • Open Questions..
    What else could BMW do within NTM framework?
    Why didn’t BMW launch Z3 in auto-show in Detroit?
    Why did bike market decline? Why didn’t BMW target that market?
    How can we develop a system to measure effectiveness of NTM?
    3/8/2010
  • Thank You!
    3/8/2010