Launching the z3 roadster
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BMW produced the Z3 roadster to capture new market segments in the United States. The Z3 appealed to image-conscious Generation Xers, couples in their 40s looking for a first roadster, and nostalgic Baby Boomers. BMW saw an opportunity in the falling American motorcycle market to target those interested in fun, youthful vehicles. Their goal was to sell 100,000 Z3s annually in the US market to grow their global brand presence and lower costs from their high-priced Germany operations. BMW employed non-traditional marketing focused on psychographic segmentation, like product placement in films, to promote the Z3 as part of the American experience and reach broader, younger audiences.
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Launching the z3 roadster
- 2. Bavarian Motor Works (BMW) • Headquarters in Munich, Germany • Performance and luxury- The Ultimate Driving Machine • Heritage as a producer of roadsters • Goal is to the “best” not the “biggest”
- 3. Why the Z3 • Captured the essence of BMW brand • First mover against competitors like Porsche , Mercedes • Interest across segmets - Image conscious GenX ers - Men & Women in 40s going for first roadster - Nostalgic baby boomers
- 4. Why US • Falling market for motorcycles generated opportunity for substitute products for same psychographic segment • Need to grow into a global brand • Escape high cost environment of Germany • Target sales 100,000 in US mkt - Mark for major players in global mkt. place - Franchise extension to youth - Less corporate more fun • Sales in US needed attention (as per ex. 1)
- 5. BMW Marketing strategy • Psychographic segmentation=> Non Traditional marketing Demographic segmentation => Traditional marketing • Non traditonal fits in - To weave car into American Experience - Comes up in casual conversation - “leverage the buzz” to promote the brand - Cost effective for psychographic segmentation
- 6. Why a movie • Adds glamour to the product • Reaches out to hard-to-reach audience - Foreign viewers -Young people • Highly visible placement with celebrity endorsements – “ impact placement” – at an average of $40,000