MARKETING

STRATEGY AND
ORGANISATION
Launching the BMW Z3 Roadster
Section-A
Group-3

Group Members: Submitted To:

1. Aishwary Gupta (190201004) Dr. K. Abdul Waheed

2. Drisya Radhakrishnan (190201034) Professor- Marketing Strategy and
3. Gaurav Negi (190201037) Organization
4. Ikdeep Kaur (190201043)
5. Sagar Kansal (190201086)
6. Samyak Jain (190201092)
7. Sneh Ankur (190201107)
8. Vibhor Pravin (190201122)
PROBLEM DEFINITION
BMW, a global brand known for its performance and luxury cars is preparing for an off-beat
launch of its new Z3 roadster into the American market. After a successful Phase I launch, the
buck is back on the Marketing desk of BMW North America, Inc. It’s upon marketing vice
president James McDowell to roll up his sleeves to head the design and execution of the Phase
II communication strategies.

Right from the start, BMW-NA’s marketing team has been following unconventional
communication strategies for the Z3 Roadster. For instance, the product was places as James
Bond’s official car in the 1996 James Bond movie - Golden Eye. It also made an appearance
in Jay Leno’s Tonight Show and a James Bond edition of the car was offered through the
Neiman Marcus Christmas Catalog. Going forward with the Phase II launch, McDowell and
his team needs to carefully weigh out the effectiveness of each of the pre-launch activities as
they continue designing marketing tactics, so that BMW can keep the market excited about the
Z3 until it hits showrooms

The central problem is as follows:

“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.”
BMW was particularly interested on tapping into a savvy youthful market to drive sales of the
Z3. The team creatively used an array of marketing activities that were non-traditional to win
the hearts of the American youth. Through this, they felt that the brand would be able to pump
in fresh excitement and enthusiasm; something that the American automotive industry had
never really experienced before.

FORMULATING ALTERNATIVES:

1. Produce only the Z3: - In this alternative, BMW identified to only include Z3 models
into their production process. The Z3’s launch was one of the boldest attempts at non-
traditional marketing in North America.

2. Produce both the Z3 and 5-series: - This consists of including both Z3 and 5-series
in its production process and improving the brand image the company and reducing
cost expenditures.

3. Continue with 40/60 split between traditional v/s non-traditional marketing

material: - In this kind of Phase-II research, marketing element is divided into
proportion of 4:6 and categorizing it into 2 elements.
 4. Stick with traditional advertising going forward into Phase-II: - It defines the scope
of continuing traditional advertising method as it provides greater reach to customers
the information which is needed to circulate.

ANALYSING ALTERNATIVES
Alternative 1: - Production of Z3 was in current demand by the customers. The production
process supports more concentrated specialization, and more quality control. But, Z3
production had more capacity and excess idle time in the process.
Alternative 2: - Production of both Z3 and Series-5 plant operated at the optimum capacity by
utilizing resources effectively. There was less transportation cost in 5-series production
process. This also helped the brand in developing “Made by BMW” tag from “Made in
Germany” to establish it as truly global brand. The problem identified was prioritizing the
orders for customers, with more inventory holding costs. It was more complex process for the
employees working in the organization.
Alternative 3: - The alternative of continuing with 40/60 split between traditional and non-
traditional marketing material was a cheaper method. There was a larger reach of customers
through different medium and sources. This alternative would separate the brand positively
from competitors. This alternative could make customers think too radical as this production
process does not have any kind of longevity.
Alternative 4: - This alternative of sticking with traditional advertising was more focus on
specific buyer groups with longer circulation and reach of advertising. But the alternative was
more expensive than other alternatives. Also, there was less differentiation from competitors.

RECOMMENDED SOLUTION

PLAN OF ACTION

CONTINGENCY PLAN