Launching the BMW Z3 Roadster

Case Analysis

Group 4, Section D

Devendra Singh - 2014PGP105

Kislay Kishore - 2014PGP166
Namburu Madhu Babu 2014PGP215
Sadhana Meena - IPM2011087
Sawaiyan Neelgagan 2014PGP339
Shaily Gupta
- IPM2011096
Shweta - 2014PGP362

Launching BMW Z3 Roadster, Group 4

WHY LAUNCH OF Z3 IS IMPORTANT FOR BMW?

BMW wanted to change its reputation from a German Company to

a Global Company

Transition from Made in Germany to Made by BMW

Other luxury car import manufacturers like Porsche, Mercedes, etc.

were rumoured to have similar concepts under development, so
BMW wanted to gain an edge before their launch

To enable Spartanburg plant to meet the expectations of BMW

customers

To penetrate into American minds as a brand by positioning Z3 as a

luxurious and adventurous car

To reposition the brand as a stylish, glamorous, performanceoriented and pleasurable ride

To attract youth

Wanted to see every dealer motivated

To utilize full capacity of the new Spartanburg Plant by increasing

order bank

THEORY
BMW lay out the buying process of target consumer segments which
gave them an opportunity to analyze each stage in isolation and to
explore what makes a customer to move from one stage to the next. For
the new Z3 Roadster, the first Task for BMW was to move the
concentration of target consumers in the unaware state to awareness
and from awareness state to create and stimulate the positive attitude
in the consumers about the product. Positive attitude plays an important
role to set or form the liking or preference of an individualwhich further
can be converted into product trials and these trials can be further
converted into repeat purchasing behavior.

CONSUMERS DECISION MAKING

PROCESS

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High involvement product: The degree of involvement has a very

significant effect on consumer behaviour as BMWs Z3 Roadster being a
more expensive product, the consumer gets more involved in purchasing
process. This involvement is generally shown by collecting information
about the product or by extent of importance that a consumer attaches
with a car. Customer for the high involvement product like Z3 Roadster
takes time to form an informed decision through attitude formation. High
involvement / rational purchases generally tend to be linked to high cost.

Characteristics of non-traditional marketing

Mass messages aimed at mass audience cannot effectively address the
targets two most important questions: 1) why should I buy? 2) Whats in it
for me? To do that, marketers and their agencies must focus on rapport
building non traditional alternatives to fill in the relationship gap.

Non-traditional marketing gives a unique identity that is different

from other competitors in the brand category
Creative use of promotions and ads that can tantalize, and/or shock,
leave a memorable impression that the target will hopefully share
with others, increasing the reach of the brands initial message
It is sometimes very cost effective and gets a very quick response
from the public
Its impactful and generally do not require controlled environment
When combined with traditional media, the message can be
personalized or designed to create opportunities for dialogue
between the product or service and the target

It is difficult for consumers to ignore an interactive message, one

that is considered interesting rather than annoying
Consumers often enjoy being a part of the brands message
Appealing and interactive messages through golden eye movie
and Today show created buzz and excitement.

THE EXECUTION OF PHASE I OF MARKETING Z3

The Phase I of Z3 Roadster marketing started with launching Z3 in
Bonds film Golden Eye 1995. The aim was to target and reach
foreigners and youngsters. Apart from this, BMW used numerous nontraditional means of marketing.
In September 1995, Z3 was promoted on the Neiman Marcus
Catalogue, which is known for its unusual products. Promotion of Z3
Roadster in the catalogue was successful in transferring the uniqueness of
the product to the customers. The catalogue insertion and vehicle were
also featured on the Today Show. The catalogue went a long way in
getting orders for Z3. The target was to get 20 orders in 3.5 months, while
they actually got over 100 orders in just 2 days and 6000 orders in the
Christmas period.
In October 1995, the BMW website played an active role in
marketing Z3. The clippings of the film Golden Eye and Today Show were
put on the website. Also, the customers could customize the Z3 according
to their taste. It is proved as an important platform to engage the
customer.
A press conference was also held in central Park to officially launch
Z3 in November 1995. It was done in such a way so as to infuse
enthusiasm regarding Z3 in the people and it was covered extensively by
the media. The Z3 also featured in Jay Lenos Tonight Show in this month.
Also, DJs from leading radio stations were selected to promote Z3
through events held at local levels. This brought about three times the
word of mouth effect. A video, Go: An American Road Story was also
created to promote the driving experience of a Z3 Roadster.
Apart from these non-traditional methods, BMW also made use of
traditional marketing media such as TV and Print Media, Dealer
Advertising and promotions. The ads linked Z3 as James Bonds new car.
This resulted in a recall rate of 15% in consumers. The dealers invited
their best customers to the private screening of the Bond film to promote
Z3 and give customers a special experience with the Z3 Roadster.

TIMELINE OF PHASE I NON-TRADITIONAL MARKETING OF

Z3 ROADSTER
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RECOMMENDATIONS FOR PHASEII PROMOTION:

BMW has already created a buzz in USA with its phase I launch. Now
it needs to have that buzz sustained for 3 more months till it is officially
ready to start selling the BMW Z3 Roadster to the general customers. The
sustenance of this already created buzz is necessary so that the level of
awareness and fascination for Z3 in the US market does not trail-off before
its official launch in March 1996. Hence we recommend the following for
the phase- II Z3 launch. Our recommendations consists a mix of both
traditional and non-traditional promotions.
1. Auto Shows: It is a platform where BMW will be able to get a wide
coverage for Z3 and showcase itself as a global brand. It will help
BMW to attract the much needed attention for Z3. BMW can interact
with customers and answer some of their queries regarding product
specifications, etc. It is a wonderful opportunity to show the
uniqueness of the product.
2. Road Shows: Conducting road shows across different cities will
facilitate customers to have real visual experience of the product.

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During the road shows BMW can conduct some customer engaging
events like offering a free short ride to some lucky persons.
TV series: BMW can get in contract with some on-going TV shows,
where Z3 will be used by prominent character of the show.
Video Games: Video games can be developed around the Z3 for
various platforms like PC, gaming consoles, mobile phones, etc.
BMW can also permit inclusion of Z3 in some famous racing games
as its ultimate car in the game. Thus, users can experience the
Ultimate Driving Machine.
Simulators: As there were a limited number of Z3 prototypes
available, BMW can install simulators at dealer locations. Customers
can come there can have a virtual experience of driving a Z3.
Interactive Print: If one had to design the phase- II launch of Z3 in
todays era with all the technology available, then one would
certainly include interactive print media because of its unique and
innovative style. One example can be magazines having an
embedded NFC chips in its pages. The user can simply place his/her
smartphone on the pages and experience the Z3s features. This
can be done to go for a virtual test drive of the car, etc. Today, we
can also have hoardings and billboards which can be made quite
interactive.
Interactive Bill boards: By placing interactive hoardings at
prominent locations, we can increase the visibility of the product.
These can draw the attention of people by involving them in the
advertisement. Through this, we can easily portray the message
that Z3 is truly an American car.