1/16/02
Launching the BMW Roadster
Mark Charlton
Terra Christensen
Jose Romo
Craig Paprocki
1/16/02
Launching the Z3 Roadster
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LAUNCH SUCCESS
The Z3 launch was extraordinarily successful, but without knowing the revenue increase from 1995 to 1996 from the
sales of the Z3, the launch effectiveness cannot be quantified in dollars. However, the fact that pre-orders for the car
were almost double what had been anticipated (from 5,000 to 9,000) indicates that launch sales numbers were
substantial. Additionally, in terms of branding, corporate image and product buzz the launch was wildly effective.
Ironically, the most effective marketing events of the launch were the non-traditional methods of promotion, such as
press and public relation activities that were either free or very low cost to BMW. Simply the fact that such positive
PR occurred at all is a tell-tale indicator that the launch was extraordinarily successful. The catalyst that brought
about the chain of PR activity was BMW’s decision to have the Z3 cameo in the movie Golden Eye, and the specific
‘ripple PR effects’ of that one pivotal decision were:

A wildly successful Z3 Press Conference, which led to appearances on the Today Show, Hard Copy, This
Mornings Business and the Money Wheel

A cartoon in Automotive news

Raving reviews from the automotive magazines

A USA Today press release
The effectiveness of these events not only led to an enormous volume of Z3 sales initially, but it also will be the
creator of an indefinite increase of sales in the future for the entire BMW line of cars. This is because marketing
events with this strong of an influence on consumers’ beliefs, ideas and attitudes has an impact long into the future.
For example, because the Z3 is now associated with James Bond and all of the hype that went along with it, brand
equity is created for everything BMW does moving forward. Now the tagline “The Ultimate Driving Machine” has that
much more meaning when consumers see it tacked underneath the BMW logo.
The Z3 Advertising campaign included a multi-million dollar TV ad of James Bond trading in his car for the Z3 running
on television spots between Seinfeld, ER, and 90210, and a print campaign aimed at Forbes, Fortune, Traveler and
Business Week. The commercial’s recalls rates were higher than in the previous 10 years, and had a higher number
of mentions than ever before—indicating the effectiveness of the advertising. However, the actual success of the
campaign, meaning if more revenue was generated from the ads than the cost to run them, cannot truly be known. It
is nearly impossible for anyone, including BMW, to know if the increased sales of the Z3 were due to a specific ad,
the press releases, word of mouth, the buzz that was created or outside factors such as peer pressure or social
status. Best-case scenario BMW could make only a correlation of sales to ads by tracking them with specific callback numbers or by the mention of bonuses (which they utilized in their print campaigns), or to track changing sales
figures in correlations to ad releases.
Launching the BMW Roadster
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PHASE II PLAN
Situation Analysis:
Strengths:
BMW’s current brand name and the highly effective launch of the car gives it inertia for an indefinite period moving
forward.
Weaknesses:
The very nature of the car makes it trendy, which makes it risky for profitability in the future .
Opportunities:
The market is substantial: there are global markets to be tapped and a ready demand for the Z3 in the current market
that has not yet been realized.
Threats:
The competition is fierce. There is no question that Lexus or Mercedes could not be right behind them in
development of the hottest new roadster.
Vision:
A continually redefined Z3, with the image of the latest and hippest roaster available that captures interest and
fascination with the vehicle.
Objectives:

Solidify the Z3’s leadership in the roadster market space

Identify and own specific demographic market segments

Invest deeply in fewer but most targeted media spaces, based on these segments

Develop a solid foundation/marketing team that can grow with the Z3

Leverage Partnership Advertising

Broaden Z3’s presence in "wider" roadster car space

Make inroads that support the Z3's future directions

Solidify on Z3’s brand personality and look and feel

Focus media plan efforts in the order of importance, based on the level of impact these activities have on
increasing sales:
1.
Public Relations
2.
Partnership Marketing
3.
Online Marketing
4.
Collateral/Sales Tools
5.
Advertising, Tradeshow
Media Plan: The Stealth Z3
Because the vision of the Z3 is to have continued peak interest in the car, a constantly changing and differentiated
image and positioning will be required. For the initial ‘chameleon’ in the ongoing Z3 series, “The new Stealth Z3”
campaign is presented. This campaign fits all of the requirements of the objectives: It creates fascination and
uniqueness, but also fits into the greater corporate image of a strong, sleek and powerful driving machine.
Public Relations:
The core of the launch’s success was the press and public relations events. If this level of exposure is going to
continue, it is absolutely pertinent to keep the press involved on an intermitted, ongoing basis. Intermitted is the key
word, because too much press for two much time wears consumers out, and becomes no longer fresh and exciting.
Launching the BMW Roadster
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Additionally, keeping the PR efforts directed to the target market should be a main focus. The end goal would be to
seek out activities that would have the ‘ripple effect’ created at the launch, where everyone is so excited about the car
that it is invited on the Tonight Show, or other high profile programs.
Proposed Option: Keep the press informed and excited about the latest year’s model, and the new additions and
upgrades available. Plan press releases with targeted sponsorships to create hype, focused substantially on the
target markets at their preference venues. Utilize the constantly changing and differentiated image and positioning to
maintain high interest.
Partnership Marketing:
Building relationships with key companies is crucial in the media mix. For example, when BMW partnered with Apple
to use the Z3 in their advertising, it ended up airing during the Academy Awards in 1996 giving the car substantial
exposure. The key to success in this arena is to build something that partners will want and need to use to build their
own brand equity. The roadster gave Golden Eye a fresh new, bad-boy image. BMW needs to continue to provide
this kind of equity to partners moving forward.
Proposed Option: Utilize the “Stealth” campaign to partner with Lucas Films in Star Wars or with the U.S. Airforce.
Each of these falls into the categories that the target market can relate with and find interest in.
Online Marketing:
The BMW internet site brought about increased sales and hype because of the site allowed for the user to choose
their ordering options online. The technology enabled them to capitalize on consumer convenience. In order for
online marketing to be effective, it has to be targeted to provide something specific that a user is looking for, since
customers online usually have a specific purpose to visit a site, making that medium extremely objective oriented.
Proposed Options: Utilize the latest, most effective technologies to provide an easier end-user experience.
Implementation of a search functionality that allows a user to find the nearest dealer that has the car with the
requested options, and allows them to purchase and hold it, even allow them to opt for same-day delivery.
Collateral/Sales Tools
The Golden Eye sales and media kits proved to be a substantial help in motivating sales staff and adding to the hype.
It followed the Golden Eye theme, and this continued to solidify the branding and image.
Proposed Option: To create sales kits that mirror the changing mood of the Z3, and enable the sales force to have
something to get excited about. For the “Stealth” campaign, the folders and media can have the kind of reflective
paper where the car disappears and reappears in the light.
Advertising:
The advertising needs to help portray our new image, and compliment all of the mix. The “Stealth” ad (See Exhibit 1)
was developed to following the AIDA approach, or Attention, Interest, Desire, and Action.
Proposed Option: It uses starkness to draw attention, mystery of not really being able to tell what the car looks like
to get interest, and a call-to-action at the bottom that reads—“On radar at your local dealership.” This can also be the
place to mention dealer incentives, and create a reason for a test drive at a later time.
Proposed Budget:
The budget for this campaign was created based on historical data and the assumptions made on the growth of
revenue of the Z3. Because the non-traditional approach was chosen, many of the marketing related activities in PR
and press are much more low-cost than the traditional advertising-heavy approach. This will actually make more
efficient use of our marketing finances, so the same budget allocated as in the previous year results in fewer dollars
spent per car sold. (See Exhibit 2.) Assumptions made in the model are that it is advised to continue at the same
budget as the previous year, the number of Z3’s sold was 30,000, and the percentages allocated to the specific
marketing functions were similar to the national averages.
Launching the BMW Roadster
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Exhibit 1:
Exhibit 2:
The Z3 Roadster Marketing Budget
% Allocated*
Total Sales in units
Total Media Expenditures
Total spent per car
Public Relations
Partnership Marketing
Online Marketing
Advertising
20%
20%
10%
50%
1995
1996
84501
$87,500,000
115000
$87,500,000
$1,035
$761
$17,500,000
$17,500,000
$8,750,000
$43,750,000
$17,500,000
$17,500,000
$8,750,000
$43,750,000
Launching the BMW Roadster
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