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.

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  • Ultimate driving machine, great performance and luxury
  • Ultimate driving machine, great performance and luxury
  • BMW Z3 Roadster Launch in USA

    1. 1. Launching The BMW Z3Roadster<br />Suket<br />Rajul<br />AshishSinha<br />Abhishek<br />Anshuman<br />PGPEX-III <br />3/8/2010<br />
    2. 2. What Are We Going To Discuss?<br />About BMW’s Objectives<br />How did they select Z3 Roadster for launch<br />How did they select non traditional marketing<br />How did they utilize the channels<br />What are the challenges ahead<br />How can we analyze it further<br />3/8/2010<br />
    3. 3. BMW Group International<br /><ul><li>Cars produced
    4. 4. BMW, MINI and Rolls-Royce
    5. 5. HQ in Munich, Germany.
    6. 6. Operations in 150 countries
    7. 7. Attractive 'four-cylinder' tower as main office building</li></ul>3/8/2010<br />
    8. 8. BMW Sales Needed Attention<br />3/8/2010<br />
    9. 9. BMW Wanted To Grow Further<br /><ul><li> Target
    10. 10. Increase unit sales to 100,000 in the US mkt.
    11. 11. Promising youth segment
    12. 12. Opportunity
    13. 13. Falling Worldwide Market for Motorcycle which generated market of substitute product for the same psychographic market segment</li></ul>3/8/2010<br />
    14. 14. BMW Had To Identify Right Product<br /><ul><li> Race Cars
    15. 15. Dune Buggies
    16. 16. SUV
    17. 17. Roadsters</li></ul>3/8/2010<br />
    18. 18. BMW Selected Z3 Roadster<br /><ul><li> Captured essence of BMW brand
    19. 19. Performance and luxury – The Ultimate Driving Machine
    20. 20. Was best fit with positioning of driving excitement
    21. 21. Emotional substitute for motorcycle segment
    22. 22. Evoked BMW’s heritage as a producer of roadsters
    23. 23. Fit the corporate goal of being the best not the biggest</li></ul>3/8/2010<br />
    24. 24. Z3 Concept Tests Were Conducted<br />Revealed interest across life stage segments<br />Image conscious Gen X<br />Aspirational car for men and women in 40s<br />Nostalgia for late baby boomers<br />Identified commonalities across groups<br />“Lover of Life” mindset<br />Propensity to seek unique expressions of individuality <br />3/8/2010<br />
    25. 25. Spartanburg Selected For Production<br />Germany America<br />Spartanburg<br />Munich<br />3/8/2010<br />
    26. 26. Why Spartanburg? <br />Displayed commitment to dealers and American people that BMW is here to stay<br />Provided cost advantages<br />High cost environment in Germany<br />Cushion against monetary fluctuations<br />However, also posed challenges <br />To convince consumers that quality of cars produced in the USA would be no different from cars produced in Germany<br />3/8/2010<br />
    27. 27. So What Did BMW Aim For?<br />To expand the BMW franchise & market share<br />Target of 100,000 annually in USA <br />To rejuvenate the BMW brand by positioning the Z3 squarely in American culture and settling into the hearts and minds of the American public<br />To make BMW a global brand<br />Transition from Made in Germany Made by BMW<br />3/8/2010<br />
    28. 28. Why Did BMW Select Non Traditional Marketing<br />3/8/2010<br />
    29. 29. Components of Advertising<br /> Message Decision<br /><ul><li>American experience
    30. 30. Made by BMW</li></ul>Objectives Setting<br /><ul><li>Sales objectives
    31. 31. Communication objectives</li></ul> Budget Decisions<br /><ul><li>Placement in movie at low cost
    32. 32. NTM more cost effective</li></ul> Advertising Evaluation<br /><ul><li> Sales impact
    33. 33. Communication impact </li></ul> Media Decision<br /><ul><li>Co-launch with movie & star
    34. 34. 6 other NTM channels
    35. 35. Synchronized with movie premiere & product launch</li></ul>3/8/2010<br />
    36. 36. Why Non traditional Marketing? <br />Non traditional marketing is fit – <br />To weave the car into the fabric of the American experience.<br />Also to get the car on people’s conversational agenda. <br />Then to leverage the buzz to promote the brand.<br />For psychographic segmentation, nontraditional marketing is more cost effective<br />3/8/2010<br />
    37. 37. How The Media Was Selected<br />Primary choice multi media including <br />a product placement in a premier film<br />a TV show sponsorship<br />fashion world tie-in<br />Selected Fallon as the agency <br />based on proven experience in integrated and electronic marketing, key skill for nontraditional marketing <br />3/8/2010<br />
    38. 38. Why Product Placement In A Movie?<br />Adds glamour to the product<br />Reaches out to two hard-to-reach audiences:<br />Foreign viewers<br />Young people<br />Highly visible placement with celebrity endorsement – “impact placement” - at an average of $40,000. <br />3/8/2010<br />
    39. 39. Z3 Roadster in “The GoldenEye”<br />Without a fee! <br />MGM got the use of prototype vehicles for the movie.<br />MGM also obtained worldwide rights to reference the placement<br />Perceived fit between Bond & Z3 brand personality<br />BMW looking for a glamorous hero. <br />Bond as handsome, wealthy, resourceful & adventurous. <br />Man who loves life and is in control of his destiny<br />Known for using technology with penchant for fast cars<br />The quintessential hero for a quintessential car!<br />3/8/2010<br />
    40. 40. BMW-MGM “Co-Launch”<br />Co-launch of <br />The Bond actor <br />The GoldenEye film <br />And the BMW Z3 roadster<br />BMW <br />Covered product costs for prototype vehicles<br />Invested in advertising Z3 as James Bond’s new car<br />MGM <br />Supported Z3 in the movie previews and trailers<br />3/8/2010<br />
    41. 41. And Here Is Z3 with Bond!<br />3/8/2010<br />
    42. 42. And Here Is The Scene<br />3/8/2010<br />
    43. 43. Other Marketing Channels Used By BMW<br />3/8/2010<br />
    44. 44. Need for Other Marketing Elements<br />To Pre Sell Z3<br />Golden Eye movie placement was just a teaser<br />To close gap between Golden Eye Launch and dealership availability<br />To stimulate interest in other BMW brands<br />To reach a wider audience<br />To reinforce brand image<br />3/8/2010<br />
    45. 45. Neiman Marcus, Today’s Show<br />Sep’95<br />Known for its unusual product offering <br />Features<br />Special Limited Edition Bond Roadster Launched in Neiman Marcus Catalog<br />Catalog and Vehicle featured on Today’s Show<br />Goal<br />20 Units over 3.5 months<br />Result<br />100 units in just2 days<br />6000 orders in the Christmas period<br />3/8/2010<br />
    46. 46. BMW Website<br />Oct’ 95<br />More information<br />Virtual View of the Car<br />Features<br />Golden Eye film Segments<br />Today Show Clips and Movie Offer<br />Build your own Roadster: View Display and Price<br />Result<br />Hit rates tripled from 35,000 hits/day to 125,000 hits/day.<br />Apple used this as a reference in their advertising<br />3/8/2010<br />
    47. 47. Press Launch in Central Park <br />Nov’95<br />Formal introduction<br />Reach out to broadcast and print media<br />Prepare the ground for movie launch<br />Features<br />Media attention: 200 media rep.<br />Preceded by CEO Interview in “Today Show”<br />Special Effects to generate Interest<br />Result: Extensive Coverage in<br />Print: “Hard Copy”, “The Morning’s Business”, “The Money Wheel”<br />All major network news channels.<br />3/8/2010<br />
    48. 48. Jay Leno Tonight Show<br />Nov’ 95<br />Reaching out to wide audience<br />Promoted movie and car<br />Features<br />Jay Leno using the car in his show<br />Bond to dodge all security and enter<br />Took calculated risk and gamble<br />Result<br />Worked Out Well as per Mc Dowell. Not much data.<br />3/8/2010<br />
    49. 49. Radio DJ Program<br />Nov’ 95<br />Word of Mouth effect<br />But was the “most risky”<br />When?<br />Early November 1995<br />Features<br />Innovative ideas used by DJs<br />Gave away Z3.<br />Result<br />Got brand into conversation milieu.<br />6000 spots against 3800 promised.<br />3 Times Word of mouth effect of other programs<br />3/8/2010<br />
    50. 50. Traditional Media Used In NT Spirit<br />40% Traditional vs. 60% Non-Traditional<br />TV and Print Advertisement s on 1st November<br />“Humor and Fantasy” instead of traditionally “no-nonsense”<br />TV: Spots in Network Shows, Lifestyle Cable programs<br />Print: Placed in business, lifestyle and Auto-buff magazines.<br />Utilized to prime the launch of movie.<br />Advertising Recall – 15% of TV viewer (50% higher than Mercedes E class)<br />3/8/2010<br />
    51. 51. Dealer Promotion<br />Objective<br />To be integrated from outset<br />To motivate dealers to spend resource on product to be launched after 6 months.<br />How?<br />Dealer Visits and Presentation<br />Emphasized strategic importance<br />Result<br />Private Film Screening<br />Cocktail Receptions<br />Circulated the Cars for Display<br />Merchandise e.g. Bond License plate<br />These generated publicity in media<br />3/8/2010<br />
    52. 52. Challenges For Phase – II <br />How To Sustain The Interest?<br />How To Convert Interest Into Order?<br />3/8/2010<br />
    53. 53. Infatuated Customers<br />Leaves Customer in Fragile Stage<br />Exposure<br />Fast and Emotional Response<br />Requires Reinforcement<br />Customer May Become Missionary <br />Purchase<br />3/8/2010<br />
    54. 54. From Excitement to Sale<br />Point of<br />“infatuation”<br /> Desired End-State:<br /> Purchase<br /> Possible End-State:<br /> Brand forgotten<br /> Time<br /> Phase I Phase II<br />Excitement<br />Generating excitement,<br />buzz, visibility<br />3/8/2010<br />
    55. 55. How To Sustain Interest? <br />Maintain the taste of infatuation <br />Contacts through mails, phone etc.<br />Plan dates<br />Demo rides<br />Win hearts<br />Progress updates to increase anticipation<br />3/8/2010<br />
    56. 56. How To Convert Interest Into Orders?<br />Stay committed <br />Deliver the product on time<br />Build support system<br />Expand dealer network<br />Get married<br />Convert purchase decision into a relationship<br />Be caring and understanding<br />Provide affectionate post purchase support<br />3/8/2010<br />
    57. 57. Critical Analysis<br />3/8/2010<br />
    58. 58. Was Phase 1 of Z3 Launch Successful?<br />3/8/2010<br />
    59. 59. Was Phase 1 of Z3 Launch Successful?<br />3/8/2010<br />
    60. 60. Should BMW Persist With NTM?<br />McDowell wanted to. But...<br /><ul><li>Non traditional can not be repeated
    61. 61. Else it may become traditional
    62. 62. And lose the infatuating charm
    63. 63. Would they find such a combination again?
    64. 64. Successful Bond movie with new hero?
    65. 65. Will that be successful again? </li></ul>3/8/2010<br />
    66. 66. Is NTM Good For All Products?<br />Good for <br />High involvement products & emotional purchase<br />Ancillary / Support products with less risk<br />Target defined in psychographic segment<br />Excitement generation<br />Intensely competitive with high ad clutter <br />But<br />Unpredictable and Risky<br />Measurement system not defined<br />3/8/2010<br />
    67. 67. Open Questions..<br />What else could BMW do within NTM framework? <br />Why didn’t BMW launch Z3 in auto-show in Detroit? <br />Why did bike market decline? Why didn’t BMW target that market? <br />How can we develop a system to measure effectiveness of NTM? <br />3/8/2010<br />
    68. 68. Thank You!<br />3/8/2010<br />

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