BMW Case Study

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BMW Case Study

  1. 1. BMW Films Presented by Team#3 : Hyo Suk Kang, Laszlo Banhegyi, Petr Shchekochikhin, Se Jong Kang, Sung Ho Jie
  2. 2. Contents <ul><li>Case problems </li></ul><ul><li>Company history </li></ul><ul><li>Customer base & Product strategy </li></ul><ul><li>Identify goals of the campaign </li></ul><ul><li>Evaluate the success of the campaign </li></ul><ul><li>Choose one out of 4 options </li></ul><ul><li>Postscript </li></ul>
  3. 3. HyoRee’s Anystar Campaign
  4. 4. Case problems <ul><li>What were the goals of the campaign? What was the motivation behind the idea? </li></ul><ul><li>How successful has the campaign been? Evaluate the success of the campaign against its goals set above? </li></ul><ul><li>What should BMW and McDowell do for an encore? Which option should he pick? </li></ul>
  5. 5. Company history <ul><li>BMW has experienced fluctuated Sales </li></ul><ul><li>due to the outdated image (Fashion brand, Fad, Yuppie) </li></ul>1970s Hottest luxury brand 1968 1986 2000 1992 1960s Niche foreign car <ul><li>1980s </li></ul><ul><li>Paradigm Shift </li></ul><ul><li>Conspicuous consumption </li></ul><ul><li> New pragmatism </li></ul><ul><li>Competition from Japan </li></ul><ul><li>1990s </li></ul><ul><li>Reinvigoration </li></ul><ul><li>Launch new models </li></ul><ul><li>and series </li></ul><ul><li>Aggressive pricing </li></ul><ul><li>DOS reorganization </li></ul><ul><li>Substantially positioned </li></ul><ul><li>as a Luxury brand (Exh.9) </li></ul>1968-2000 U.S. BMW Unit Sales (in thousands) 200.0 100.0
  6. 6. Customer base & product strategy <ul><li>Targeting a different psychographic constantly </li></ul><ul><li>with 3, 5, 7, Z, X series </li></ul>“ Caring about status” “ practical & safety” <ul><li>Demographic: 46 years old, well-educated, married </li></ul><ul><li>Psychographic: Tended to be leaders, worked and played hard </li></ul><ul><li>Early achiever, active, engaged in sports, </li></ul><ul><li>Preferred perfect product, enjoyed driving experience </li></ul><ul><li>Internet users (85% of BMW purchasers) </li></ul>
  7. 7. Identify goals of the campaign <ul><li>Keep growth and maintain sales </li></ul><ul><li>Attract young generation </li></ul><ul><li>without alienating old generation </li></ul><ul><li>3. Strengthen brand image in luxury segment </li></ul>“ What is the most efficient way of promotion?” Luxury brands: Media expenditures (dollars/unit, 2001)
  8. 8. Evaluate the success of the campaign <ul><li>In 2001, 13% growth in sales compared to 2000 </li></ul><ul><li>Successfully integrated channel marketing </li></ul><ul><li>: 82% of visitors of website are under 44 </li></ul><ul><li> BMW targeted right customers </li></ul><ul><li>Contribution to improve Brand image </li></ul><ul><li>: Elimination of the stigma associated with BMW brand </li></ul><ul><li>(status symbol, yuppie-machine) </li></ul><ul><li>“ The ultimate in new-media, high-end branding has arrived” - Time, May 7, 2001 </li></ul>
  9. 9. Evaluate the success of the campaign 45% 6% 13% 22% 59% 8% 37% 10% 30 45 64 34 45 55 Customer Visitor 94% Recommended films to others 82% Non-BMW owner <ul><li>Age segments </li></ul><ul><li>High recommendation </li></ul><ul><li>Targeting new customers </li></ul>
  10. 10. Choose one out of 4 options ※ Consideration: leverage, easy implication, cost-effective, risk averse approach <ul><li>More time & effort for something new </li></ul><ul><li>High Marginal utility in Filming </li></ul><ul><li>Risky </li></ul><ul><li>Lack of experience in that business </li></ul><ul><li>Copycat </li></ul><ul><li>No self screen </li></ul><ul><li>One way communication </li></ul>Cons <ul><li>No copycat </li></ul><ul><li>Innovative image </li></ul><ul><li>Emotional attachment to main character </li></ul><ul><li>Another Innovative marketing approach </li></ul><ul><li>Encored success </li></ul><ul><li>Relatively low cost </li></ul><ul><li>Emotional attachment to main character </li></ul><ul><li>Easier for traditional customers </li></ul><ul><li>Quicker distribution </li></ul><ul><li>Better integrated marketing approach </li></ul>Pros Do Nothing Big Movies New Films DVD Options V X V X
  11. 11. Postscript <ul><li>It was so popular that BMW produced a free DVD </li></ul><ul><li>of the series </li></ul><ul><li>There were over 100 million film views and numerous </li></ul><ul><li>awards later </li></ul><ul><li>“ The Hire” ended its internet run on October 21, 2005 </li></ul><ul><li>The Hire's success led </li></ul><ul><li>way for BMW to create </li></ul><ul><li>three more short films </li></ul><ul><li>and comic series in 2002 </li></ul>
  12. 12. Thank you

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