BMW Z3 Roadster Launch in USA

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

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

BMW Z3 Roadster Launch in USA

by Abhishek Kapoor

Accessibility

Categories

Upload Details

Usage Rights

1 Embed 28

Statistics

BMW Z3 Roadster Launch in USA Presentation Transcript