Case Analysis Launching the BMW Z3

Roadster
Section G
Group 4

Submitted By:
2014PGP298
2014PGP438
2014PGP346
2014PGP101
2014PGP223
2014PGP151
2014PGP338

RAVI KUMAR CHAUDAHRY

KSHITIJ SIKKA
SHALINI DUTT
DEEPSHIKHA YADAV
NEETIKA
GONDANE SAURABH ANAND
SAVITHA S

PROBLEM STATEMENT:
To measure the success and effectiveness of pre-launch promotional campaign of BMW
Roadster Z3 and devise strategies for phase-II of the launch

OBJECTIVE OF THE LAUNCH PROMOTION:

To replace symbol of quality with Made by BMW from Made in Germany

Sustain product excitement until dealer product availability begins
Use roadster to motivate and stimulate the dealer network to meet higher standards
to qualify for the roads
To build an order bank to enable the new Spartanburg plant to build to the
specifications of the customers

PHASE-I: PRE-LAUNCH CAMPAIGN

Market:
Demographic Segments:

Young (Gen X) people interested in unique image statements

People in their 40's with a desire to own a roadster
Nostalgic late-baby boomers yearning for roadsters of yesteryears

Psychographic Segments:

Lover of life mind-set

Propensity to seek unique expressions of individuality
Emotional fantasy mind-set

Mission:

Expanding the BMW franchise

Rejuvenating the brand by positioning Z3 in American culture
Leverage the excitement of customers to draw broader attention to the brand
To be identified as the major player in the global automotive market place, i.e., sales
volume nearing 100,000 units

Message:

To be perceived as stylish and fun to drive while preserving their reputation for
driving performance
Focus on being the best rather than the biggest

Media:
Non-Traditional activities:

Co-launch with Golden-eye starring James Bond

Neiman Marcus Christmas Catalogue offer of a Special Bond Edition Roadster
Featuring the Z3 on BMWs Website

Large scale public relations event unveiling the car in New Yorks Central Park
Appearance on Jay Lenos Tonight Show
Incorporate Z3 in Radio shows through Radio DJ program
Celebrating the emotional character of driving experience by a video Go: An
American Road Story

Traditional activities:

TV and Print advertising: Non-traditional execution in traditional methods

Dealer advertising and promotions

Money:

BMW spent about 50% less than the share-of-market, which is about $982 per luxury
car sold (Pg12, 3rd para; Pg25 Exhibit 13)
The budget was split 40/60 between traditional and non-traditional elements (Pg11,
4th para)

Measurement:

Huge opening of $26.2 million for Golden-eye: great opportunity for Z3

Product bookings were more than expected i.e. 9000 as compared to 5000
Traffic in the dealership was rising
Cost efficiencies were achieved by non-traditional method

Risks involved:

Risk of movie not being successful at the box office

Mismatch between product expectations and value delivered by target consumers
Audience may overlook the movie promotion given the short duration
Jay Lenos Show was unpredictable and could have hurt the product image

PHASE-II: PROPOSED STRATEGIES

Sponsoring Theatre and Opera Shows: In order to promote Z3 to high end consumer
base
Showcase in Auto Expos: Help in reaching out to car enthusiasts
Launch in Video game: Product placement among youth
Investing in Movie merchandise: Maintaining brand association with James Bond