ANALYSIS
Target Markets: Before getting into the marketing strategy, we must identify the target markets which are as follows:
-
Young people: The younger generation is one of the biggest target markets for BMW as they aid in incrementing the sales to the brand. Also, it’s considered to be a status symbol amongst the youth.
-
Middle Aged People: Men and Women in their 40’s expressed their desire to have their desire to have the roadster and that’s the segment which could be used to channelize the sales of BMW z3 roadster.
Market Needs & Trends:
- The people of middle aged were the ones who were really interested in buying a roadster. In fact, some of them that it was their childhood dream and they were dreaming of having it all their lives!
- Baby Boomers were one step ahead and longed for the roadster of the yesteryear.
SWOT Analysis:
Strengths
Youthful targets expanded BMW franchise into the United Strong reputation of quality
service Strengths:
- Strong company reputation
- BMW connotes quality
- Financially stable company
- Significant position in luxury segment of auto market
- States stylish and fun to drive
- Opportunity for success as a global company
- Ultimate Driving Machine
- Diverse ranges of Products - BMW, MINI and Rolls-Royce
- Strong Cash Flow Position
- Increase turnover and trading profit
- Strong Balance Sheet
- World's leading Premium Quality Automobile Manufacturer
- Brand Awareness
Weaknesses:
- Company setbacks imposed by Lexus, Acura, and Infiniti
- Can be seen as snobby and serious
- Reputation as only a German made car
- Has not proven success as global company
-
If Z3 fails dealers may not trust BMW as a global franchise
-
Z3 launch can be seen as rushed – BMW wanted to launch before competition
- Non-Traditional PR and Advertising is very risky
- Perception of High Prices
- Customer disinterest
- Buyer sophistication and knowledge
- Substitute products or technologies
Opportunities:
- Opportunity to reach larger market with franchise in the United States
- With non-Traditional PR and Advertising the target market will “self select”
- Z3 will be known as Bond’s car
- If the Z3 launch is successful then Spartanburg franchise will be successful
- Bond movie succeeds then the car will succeed
-
Younger audience will be interested in BMW because of the Z3
- New Products
- Market shift to globalization
- Innovation & Alliances
- Customers demand change to more comfortable and relevantly cheap cars
- New & existing competition
- Volatility in Price of Fuel
- New legislations
- Consequences of the oil crisis
- Economic recession
- Market shift to globalization
- Far-East Automobile companies expansion
- Diversification
- New Technologies in Automobiles
Threats:
- Bond movie may not be a success
- Cannot measure effectiveness with non-traditional PR and Advertising
- Porsche and Mercedes are coming out with similar car
- Competitors cars may be less expensive and more accessible
- Customers may not be willing to wait on a waiting list
- Dealers may not trust the instability of non-traditional PR
- Other German manufacturers are promoting scepticism about the U.S. franchise in Spartanburg
-
BMW has no control over where and how the Z3 will be used in the movie or on Jay Leno
Marketing Objectives:
- Maintaining a strong growth of 3-4% annually.
- Accomplish a good market penetration as compared to competitors.
- Create an image among consumers as low calorie and convenience product producer.
Marketing Mix:
Product – BMW 3 Series : Sedan, Coupe, Convertible, Touring, Compact
BMW 5Series : Sedan, Touring
BMW 6Series : Coupe, Convertible
BMW 7Series : Sedan
BMW Z4 : Roadster
BMW X3
BMW X5
BMW M : Sedan
Mini One
Mini Cooper
Price –US$ 35,000 to US$ 2,20,000
Promotion – Same advertising company WCSR since 1979
- James Bond film -
The World Is Not Enough (Z8 before its launch)\
-
Austin Power 3-Goldmember -( Mini cooper) “VIRAL MARKETING”
- BMW Films (e.g.. ‘The Hire’ - increased sales by 12.5% in 2001 compare to 2000
- Marketing campaign ‘The Ultimate Driving Machine
Place – Globally
Marketing Strategies:
Non Traditional Marketing (NTM) Approaches used by BMW
Keeping in mind the specific strategic needs of BMW, the launch team focused on NTM strategies as it demanded something different, attention-grabbing and unconventional, given the physiographic segmentation of the market for the car. BMW decided to go ahead with movie placement of Z3 in MGM s James Bond Golden Eye film in fall 1994. BMW also collaborated with Nieman Marcus Christmas Catalog offering a Special Bond Edition R oadster. Both the Z3 and the catalog insertion were featured on Today Show. BMW s new website had special segments including Golden Eye film segment the Today Show clip featuring the catalog offer and a Build Your Own Roadster module allowing visitors to custom build their own Roadster. The most prominent PR event was the Central Park Launch which formally introduced Z3 to the public. Apart from that, the Z3 also appeared on Jay Leno s Tonight , on leading radio stations as part of the Radio DJ Program and on Go: an American road story Video. It also entered into association with Atlanta Olympic Games as the official international automotive sponsor. The dealer promotional package showcased a private screening of the Bond film and car before the box office film opening.
The Z3 Launch- Measurement of success
There are several parameters to judge the success of the Launch campaign of BMW Z3 Firstly word of mouth for Z3 has been favorable. Initial product orders far exceeded expected number. More than 9000 cars were ordered by December, 95 as compared to the projected figure of 5000. The Neiman Marcus Christmas Catalog Promotional Campaign attracted 100 customer orders in two days and 6000 in 3.5 months while BMW has initially set a 20 unit sales goal over the period.
The Build Your Own Roadster module tripled hit rates of BMW s new website from an average of 35,000 hits to 125,000 hits. Apple Computer, whose technology was employed to build the module, used the BMW module in their own corporate advertising, devoting 25-30 seconds to BMW in its TV spot aired during the academy awards in March 1996. The Central park Launch attracted extensive coverage in both broadcast and print, including mention on Hard Copy, This Morning s Business, The Money Wheel and all major network news programs. The DJ Program had three times the word-of-mouth effect of other publicity programs.BMW got 6000 spots instead of the promised 3800. BMW s TV and print Advertising also proved to be successful with 15%proven advertising recall, which was 50% higher than the 10% proven recall Mercedes achieved with an estimated launch budget three times as large.
Recommendations:
- With good results from the NTM followed in the phase-1, we intend to continue using NTM even in next phase, introducing some new strategies of advertising. We recommend the following methods:
- DVD/VCD launch of golden eye with a poster of Z3 in the DVD pack and a print of Z3 on the DVD cover to promote the car among different groups simultaneously. This would help reach all the movie watchers.
- Introduce the car in NEED FOR SPEED/GRAN TURISMO so that it reaches out to youth in America.
- Keep the preordered customers updated through mails, newsletters, magazine issues etc. So that they remain enthusiastic about the car and also word of mouth would be an indirect marketing strategy.
- Z3 as pilot car in F-1to familiarize Z3 also among the F-1 enthusiasts Continuous buzz, we need to keep changing the NTM used from one to another so that target group doesn t get vexed up seeing the same thing every time.
- As traditional methods have shown good results in phase-1, along with the NTM s we can also rely on Print/TV ads.
