Launching the BMW Z3 Road-ster

Case Study

◤ Here is BMW Z3 Roadster - External

◤ Here is BMW Z3 Roadster - Internal

◤ BMW Strategy & Background

◎ BMW Strategy (In U.S Market) - BMW supply the most reliable and with a particular position, the best in each class, luxurious, high performance cars to the U.S Automotive market. - Not up to the highest . (Only think about No.1)

- Keeping 100,000 annual sales in the U.S Market.

◤ BMW Strategy & Background

◎ Background (In U.S Market) - Competitor : LEXUS, ACURA, INFINITI (After 1980)

- How BMW got a good position in U.S Market? 1) Brand Repositioning 2) Fixing price for New Market 3) Strengthen Dealer Network 4) Improvement of production line

- Why BMW can not give up U.S Market?

◤ Background of Launching Z3 Roadster

1) Leap of global brand - Z3 is produced from Spartanbrug in USA. - Made in Germany (X) → Made in BMW (O)

2) Enhance the image of BMW - Positioning →‘Driving excitement’ - Reproduce the traditional as a Roadster maker.

3) Opportunity for Niche Market - Luxury brand car company making Roadster. - Other company do not have Roadster (Like Z3)

4) Car dealers power up - Make a improvement of customer preference. 5) Find a customer NEEDS (Target Market) - The desire for a unique image for Gen-X. - Roadster ownership attachment for Gen-40. - Nostalgia for late baby boomers.

Spartanburg

◤ BMW Z3 Roadster Marketing Plan

◎ Purpose of Marketing Plan in USA Market - To expand the BMW franchise and further rejuvenate the BMW brand by positioning the Z3 squarely in American culture and settling into the hearts and minds of the American public.◎ Timeline of Key events (Phase. I)

◎ Evaluation for Z3 Roadster (S.W.O.T)

Strength Weakness- BMW is not the biggest but the best car company in the world as it is more into youth targeting. - Increase in sales: Their franchise expansion seems to be more promising way to incremental sales to the brand. - It influences consumers strongly through Media and film industry. - It is Innovative and Impactful.

- Their corporate image is too serious and tradition-bound

- Plan Execution was complicated.

- Z3 was perceived to be German made car not an American made car.

Opportunity Threat

- The cars are not as expensive as German manufactured cars.

- It is the first Auto plant outside Europe.

- Competition from Mercedes. - People not accepting a German car in US. - The partners or sub- partners may turn into rivals. - Government regulations

◤ BMW Z3 Roadster Marketing Plan

◤ Z3 Roadster Introductory Marketing Plan

◎ Non-traditional Marketing Method - Buzz / Word Of Mouth, Non-traditional VS Traditional - Use the Customer Emotional Purchase 4 Step

Awareness Interest Desire Action

◎ Fixing the First Marketing Element: The GoldenEye Product Placement

- BMW-MGM “Co-Launch” - Almost 90sec ‘007 GOLDENEYE’ - Effect of Teaser Advertising

◤ The Final Pre-Launch Marketing Plan

1) Neiman Marcus Christmas Catalog offer of a Special Bond Edition Roadster.

◤ The Final Pre-Launch Marketing Plan

2) BMW Internet Site

◤ The Final Pre-Launch Marketing Plan

3) Press Launch in Central Park

◤ The Final Pre-Launch Marketing Plan

4) Jay Leno Tonight Show

◤ The Final Pre-Launch Marketing Plan

5) Radio DJ Program

6)“Go: An American Road Story” Video

◤ The Final Pre-Launch Marketing Plan

7) TV and Print Advertising

◤ The Final Pre-Launch Marketing Plan

8) Dealer Advertising and Promotions

◤ Success of the Phase.I Launch Plan

◎ What is the success from Phase.I ? - Big hit 007GOLDENEYE : Earned $26.2M (First week) - Car Dealer → Improved efficiency - Cost cutting from Non-traditional - Create the Niche Market → Made a Paradigm shift of BMW Promotion way

•100 orders within 2 days

•6000 orders by Christmas

NeimanSep 11, 1995

•Hit from 35000 to 125000 / day

•Apple also approached for rights to reference

BMW Internet Site

•Extensive coverage in broadcast, print and news

•Cartoons in news paper

Central ParkPress Launch

◎ From Excitement to Sale

Desired End-State:

Purchase

Possible End-State:

Brand forgotten

Time Phase I Phase II

Gen

erat

ing e

xcitem

ent,

buzz

, vi

sibili

ty

Point of“infatuation”

Exc

item

en

t

◤Phase. II Launch Strategy

◤ What can we discuss from Z3 CASE ?

Here is my question..

1) What BMW can make a new marketing strategies in World market? 2) How was the Marketing plan in Korea market? Do they have Some special Marketing plan in Korea market?

3) Do you know any success case of other company (Benz, VW, AUDI, NISSAN, TOYOTA, HONDA, GM, FORD, HYUNDAI, KIA)

Thank you for your listen-ing