Launching the BMW Z3 Roadster

Case Analysis

Submitted by:

Gautham S. (PGP/15/277)Nikhil Sachan (PGP/15/297)Rahul Maheshwari (PGP/15/307)Saurav Agarwal (PGP/15/319)Siddhartha Roy (PGP/15/321)Utsav Agarwal (PGP/15/326)

Objective• Design a Marketing plan to sustain product excitement until dealer product

availability in March 1996

• Time: January 1996

• Protagonist : James McDowell, Marketing VP, BMW (US)

The Situation BMW Z3 Roadster : first BMW car manufactured in America

Will boost BMW’s current sales volume in America (currently 16 percent of the Worldwide Unite sales of BMW (Source: Exhibit 1)

BMW has launched the phase 1 of the marketing of the car by placing it in James Bond movie, Golden Eye and through other non traditional campaigns

Phase 2, also, has to be in line with the April launch of redesigned 5 Series and BMW’s official sponsorship of 1996 Atlanta Summer Games

Company is trying to change its symbol from “Made in Germany” to “Made by BMW”, to establish it as truly global brand

Background Company was facing decline in sales volume from 1986 to 1991, which was later revived with the image change

The brand was repositioned from “Yuppie Status Symbol” to “Ultimate Driving Machine”

Company improved the dealer network, made improvements in the product line and adjusted price

Focus for “being the best” rather than “being the biggest”

The Strategy change resulted in sales increase since 1991 (With 4 year CAGR of 15.39 percent in US, compared to 1.6 percent Worldwide) (Source: Exhibit 1)

Z3 Roadster Initiative Concept started in 1992, with the world motorcycle market decline

Adopted to fit best with BMW’s image of driving excitement and the essence of the brand

Positioning: An ultimate driving machine, best in its class (against other luxury cars in the market such as Mercedes and Porsche)

Market Segment – People having “lover of life” attitude :

•Generation X •Men and Women in their 40’s•Late baby boomers

Introductory Marketing Plan Plan focused on non traditional marketing methods

Invited proposals from 30 advertising, PR and promotional agencies for non conventional campaigns

7 were invited to present the proposal

Dick Clark Corporate Productions and Fallon McElligott were shortlisted for promotion

Fallon specialized in non traditional advertising and Dick Clark was a leading Hollywood based promotional agency

The Golden Eye Product PlacementDeal signed in July 1995 with MGM/united Artists for their “Co-Launch”

Both agreed to promote the new James Bond and BMW Z3

Car’s image matched James Bond’s “lover of life” image who had penchant for cars, control of his destiny and was known for technology

The car appeared for only 90 seconds in the movie and it replaced Aston Martin, Bond’s signature car, but it was prominent and looked an integral part of the movie

The Final Prelaunch Marketing Plan• Emphasis on non-traditional advertisement

– Placement in James Bond Movie– Neiman Marcus Christmas Catalog Offer– BMW’s website– Press Launch in Central Park– Jay Leno Tonight Show– Radio DJ Program– Go: An American Road Story

• Traditional Advertisements– Maintaining the non-traditional spirit– Television spots in popular network shows – Print : Business and lifestyle books and auto magazines

Analysis of Prelaunch Plan

• Communication Impact– 15% proven advertising recall – 50% higher than 10% recall of Mercedes E Class Advertisement (which had 3

times higher budget)– Dealers promotional events attracted great local publicity and coverage in

Media

• Sales Impact– Exceeded expected pre-booking orders by almost 100%. (9000 vs. expected

5000)– Products unavailability – Liability to Assets

Continued.. Expenditure :

• Spent 50% less than the Share-of-Voice/Share-of-market rule

• Spent three times less than what they would have spent using traditional media

• Produced higher per dollar impact

Suggestions for Phase II• Ensure the availability of Demo Car with every dealer

• Focus on timely delivery of the preorder bookings

• Continue with the “Non Traditional” way of Advertising

• Rope in top athletes participating in the 1996 Olympics as a part of the advertising campaign

THANK YOU !!