Case Analysis

Zeeshan/150103062/Sec C
Introduction
To plan and launch of Z3, meeting the objective of the launch i.e expansion of BMW
franchise and rejuvenate brand BMW by aligning the positioning of the Z3 with American
cultural setting.
Summary
BMW was a global company with a major chunk in luxury and performance segment of the
U.S. automotive market. In the late 80s its sales started to decline. Aim was to replace made
in Germany tag to a symbol of quality with made by BMW by assembling the cars on
American soil.
The objectives of the Roadster launch were:

To use the roadster to motivate and simulate the dealer network to meet higher
standards to qualify for the roadster
To build an order bank to enable the new Spartanburg plant to build to the
specifications of BMW customers
700
600
500

461.3
434 440.7 446.1

484.1

523 525.9

552.7

588.7
534.4

573.9 590.1

400
300
200
100 70.9
0

87.9

96.8

87.8

73.3

64.9

63.6

53.3

66

78

83.8

94.5

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
U.S. unit sales (in thousands)

Worldwide unit sales (in thousands)

BMW formulated a marketing plan to reposition the brand from Yuppie Status Symbol to
ultimate driving machine. BMW wanted to achieve the annual sales of around 1, 00,000
units in United States of America. .

Marketing Communication Mix

Objective: To expand BMW franchise and further the rejuvenation of the BMW brand by
positioning the Z3 squarely in American culture and settling into the hearts and minds of the
American Public. Marketing team focused on nontraditional marketing methods rather than
traditional television and print advertisement
Product Placement
Since movies offers considerable opportunity to build brand equity, BMW planned to
associate Roadster with James Bond movie; Golden Eye. BMW signed a contract with
MGM in the fall of 1994 as it was a perfect fit for both parties. This can be attributed to the
persona fit between James Bond and BMW Z3 Roadster. MGM received several prototypes
vehicles for the movies and BMW got product placement in GoldenEye and obtained the
worldwide rights to reference that placement in corporate communications
Product placement with Golden Eye added glamour and excitement to the brand BMW as
the association of James Bond. High visibility gained through celebrity endorsement and the
success of the product placement was attributed to the reach to the two segments of industry
which were print and media averse i.e. foreign viewers and young people.
The persona fit between James bond and BMW Z3 Roadster is given below
James Bond
Non reliable
Risk-taker
Flirt
Opportunist
Handsome
Fun-loving

Z3 Roadster
Reliable
US built
Value for
money
High
performance
Handsome
Fun-loving

Neiman Marcus Catalog offer

BMW offered was a limited period offer through catalo for a Special Limited Edition Bond
Roadster, the response was phenomenal through which they got more than anticipated
bookings (100 in place of anticipated value of 20). The launch of the offer was so kept that
people check out Roadster during Christmas shopping. BMW received 6000 customers
orders through this channel
BMW internet site
Here Build your own Roadster module was provided to the consumers where they can
build/ customize their own car and view it from variety of perspectives. This results in the
tripled hits on website from 35000 to 125000. Apple Computers whose technology was
employed to build the module approached BMW for the rights of reference.

Press launch at Central Park

It was a prominent PR event. Where the formal launch of Z3 was announced to the public
with over 200 media representatives were present. The event resulted in extensive coverage
in both broadcast and print.
Jay Leno tonight show
The BMW offered Z3 to Jay Leno to utilize the car in any useful way. The Z3 was used to
reach out to audience through TV by formulating a skit where Bond (promoting the movie)
would secretly pass the security to enter the studio. Here both BMW and James Bond movie
got proper promotion. This was considered as a risky one; but it went well.
Radio DJ program
DJs were selected on the basis of personality, show content and listener demographic. They
were allowed to think own ideas which resulted in the implementation of various innovative
ideas. The event was successful in the getting the brand into conversational milieu.
Go: An American Road story video
The communications group in BMW in conjunction with Dick Clark productions created
story of an overworked architect who lived with his Aunt when he was 10 years old. He
drives a Z3 while going back, retracing his Aunts steps along the way. The story focused on
the emotional character of the driving experience.
TV and print Media
In concert with the nontraditional activities, BMW also uses TV and print media, but in
nontraditional way. They kept their advertising message simple: James bond traded his car
for a new BMW. The tonality of the advertising was Bold, witty and entertaining. There was
a shift from the traditional BMW advertising which focused on performance. The campaign
included two television spots scheduled for placement in popular network series and lifestyle
cable programming.
Dealer advertising and promotions
This was a difficult task to achieve as there were 345 dealers and only 150 cars so the
program was run in 3 phase. Dealers were allowed to invite about 200 guests for special
screening of the Bond movie. Dealers were also provided with 007: Licensed to kill kit.
The event attracted great local publicity.
The launch plan budget was split 40/60 between traditional and non-traditional elements. The
Bond film got the largest opening weekend in MGMs history, grossing $ 26.2 millions in
ticket sales.

Advertising cost per car

Advertising cost in 1994 - $102.6 millions
Advertising cost in 1995 - $87.5 millions
The CAGR of the advertisement cost for 1996- $74.6 millions
The capacity of the plant is 250 to 300 cars per day
So, the advertising cost per car 74600000/(250*365) to 74600000/(300*365)
i.e. $ 817.9 to $681.6 per car

Q1. What is the structure of marketing communication given in the case?

Target Audience
Based on the psychographic segmentation people from all age groups are targeted having a
mindset of lover of life and seeking expressions of individuality and on the basis of
demographics generation X and youth is targeted.
Communications Objectives

To satisfy the same feelings, emotions, and fantasies that motorcycles had satisfied. To
satisfy emotional fantasy theme
To switch from Made in Germany to Made by BMW image and to be a successful
global company.
To achieve high brand recall and brand recognition
To motivate and stimulate dealer network to meet high standards to qualify for the
roadster
To build an order bank to enable the new Spartanburg plant to build to the specification of
BMW customers
Communication Design
Points of Difference

Cost under $30000

Brand image- to satisfy emotional fantasy theme, Provided ultimate driving

experience still fun to drive

Made in Spartanburg, S.C. providing American feel and commitment

Informational appeals

Price Comparison between the cars of the same segment

Major automotive magazines reviews about BMW Z3 Roadster

Celebrity endorsements done by Pierce Brosnan

Special edition 007 BMW Z3 Roadster to be sold, along with the car 2 tickets to
meet and have dinner with Pierce Brosnan.

Transformational appeals (Emotional Appeal)

Dealer Promotion Kits 007: Licensed to sell were given out for todays 007

An American road story-Video to focus on the emotional character of the driving

experience

Personal Communication Channels

Expert channels- Radio D.J. program, product reviews in leading magazines

Interactive marketing (BMW Internet Site)

Advocate channels- Through dealers showcasing

Earned media (unsolicited professional commentary, blog entries and network

discussion, media coverage)

Non-personal (Mass) Communication Channels

Advertising (TV and print media, Video)

Sales promotion (Catalog Marketing)- Neiman Marcus Catalog offer

Events (National football league game, Apples TV spot aired during Academy
awards, New Yorks central park)

Public Relations (The Tonights show, GolderEye, Formal Launch)

Q2. Do you think the proposed IMC plan shall work in short term and long term?
The BMW promotional campaign was a success with precise and creative implementation
through different channels as per the results each channel received tremendous response. For
the Special Limited Edition Bond Z3 100 orders were placed within 2 days and 6000
applications by Christmas were placed. Number of HITS on the BMW site increased from
35000 to 125000 per day Also Apple approached for rights to reference. All the marketing
channels emphasized that the BMW was the ultimate driving machine for people of all age
groups who are lovers of life.
For long term, innovation and facelift will the key, Z3 should commit to the customers to
provide better service for value and it should not let rivals dilute the brand image set.

Q3. Can you suggest a plan for launch of this or similar product in Indian market?
Product Placement: For Z3 Akshay kumar or Ajay Devgan would serve better as both are known
for their action sequences, challenge will be the differential box offices distributed along the
regional languages, Truly Indian stars would diversify into cricket and regional box office like
Sachin Tendulkar (Movie: Ferrari ki Sawari, Ferrari was referenced to be owned by Sachin) or
Rajnikant
Demographically different regions have different needs and as well as on climatic conditions of
the geographic region. Z3 has to be tweaked to suit the needs of the people.
Sponsoring cricketing world cup would or a competitive series between India and SA/AUS/PAK
would definitely add greater recall value and impression on the Indian Diaspora.
To attract the young guns, we need to have a tie-up with the bank to provide people with
competitive EMIs, innovative selling would be sell the product on fashionandyou.com a
premier online high end fashion e-commerce website. For greater visibility and through
different segments of GenX, GenY and GenZ would to be launch Limited Edition of the Z3
through flash sales on flipkart.com. This would generate word of mouth factor and providing
the public to customise the car on the portal as this would help people live the dream and
brag about the customization in public.