Launching The BMW Z3Roadster
Suket
Rajul
Ashish Sinha
Abhishek
Anshuman
PGPEX-III
3/8/2010
What Are We Going To Discuss?
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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
700
600
500
400
US Unit Sales(in
thousands)
300
Worldwide Unit
Sales(in thousands)
200
100
3/8/2010
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
0
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
Advertising Evaluation
•Placement in movie
at low cost
•NTM more cost
effective
• 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
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–
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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
3/8/2010
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Private Film Screening
Cocktail Receptions
Circulated the Cars for Display
Merchandise e.g. Bond License plate
These generated publicity in media
Challenges For Phase – II
How To Sustain The Interest?
How To Convert Interest Into Order?
3/8/2010
Infatuated Customers
Exposure
Fast and Emotional
Response
Leaves Customer in
Fragile Stage
Word Of
Mouth, Buzz
Excitement
Customer May
Become Missionary
Advocacy
Infatuation
Purchase
3/8/2010
Requires
Reinforcement
Excitement
From Excitement to Sale
Point of
“infatuation”
Desired End-State:
Purchase
Possible End-State:
Brand forgotten
Time
Phase I
3/8/2010
Phase II
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?
Neiman
Sep 11, 1995
• 100 orders within 2 days
• 6000 orders by Christmas
BMW
Internet Site
• Hit from 35000 to 125000 / day
• Apple also approached for rights to
reference
Central Park
• Extensive coverage in broadcast, print and
news
• Cartoons in news paper
Press Launch
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