Launching The BMW Z3 Roadster

Prepared by
Rahul batra

12/14/2014

BMW Wanted To Grow Further

Target
Unit sales to 100,000 in the US mkt.
Promising youth segment

Opportunity
Falling Worldwide Market for Motorcycle
which generated market of substitute product
for the same psychographic market segment
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BMW Had To Identify Right Product

Race Cars
Dune Buggies

SUV
Roadsters
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BMW Selected Z3 Roadster

Captured essence of BMW brand
Performance and luxury The Ultimate Driving
Machine
Was best fit with positioning of driving excitement
Emotional substitute for motorcycle segment

Evoked BMWs heritage as a producer of roadsters

Fit the corporate goal of being the best not the biggest
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Z3 Concept Tests Were Conducted

Revealed interest across life stage segments
Image conscious Gen X
Aspirational car for men and women in 40s
Nostalgia for late baby boomers

Identified commonalities across groups

Lover of Life mindset
Propensity to seek unique expressions of
individuality
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Why Spartanburg?
Displayed commitment to dealers and
American people that BMW is here to stay
Provided cost advantages
High cost environment in Germany
Cushion against monetary fluctuations
However, also posed challenges
To convince consumers that quality of cars
produced in the USA would be no different from
cars produced in Germany
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So What Did BMW Aim For?

To expand the BMW franchise & market share
Target of 100,000 annually in USA

To rejuvenate the BMW brand by positioning

the Z3 squarely in American culture and
settling into the hearts and minds of the
American public
To make BMW a global brand
Transition from Made in Germany Made by
BMW
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Components of Advertising
Message Decision
American experience
Made by BMW

Objectives Setting
Sales objectives
Communication
objectives

Budget Decisions

Advertising Evaluation

Placement in movie
at low cost
NTM more cost
effective

Sales impact
Communication
impact
Media Decision
Co-launch with movie
& star
6 other NTM channels
Synchronized with
movie premiere &
product launch

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Why Non traditional Marketing?

Non traditional marketing is fit
To weave the car into the fabric of the American
experience.
Also to get the car on peoples conversational
agenda.
Then to leverage the buzz to promote the brand.

For psychographic segmentation,

nontraditional marketing is more cost
effective
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How The Media Was Selected

Primary choice multi media including
a product placement in a premier film
a TV show sponsorship
fashion world tie-in

Selected Fallon as the agency

based on proven experience in integrated and
electronic marketing, key skill for nontraditional
marketing
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Why Product Placement In A Movie?

Adds glamour to the product
Reaches out to two hard-to-reach audiences:
Foreign viewers
Young people

Highly visible placement with celebrity

endorsement impact placement - at an
average of $40,000.

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Z3 Roadster in The GoldenEye

Without a fee!
MGM got the use of prototype vehicles for the movie.
MGM also obtained worldwide rights to reference the
placement

Perceived fit between Bond & Z3 brand personality

BMW looking for a glamorous hero.

Bond as handsome, wealthy, resourceful & adventurous.
Man who loves life and is in control of his destiny
Known for using technology with penchant for fast cars

The quintessential hero for a quintessential car!

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BMW-MGM Co-Launch
Co-launch of
The Bond actor
The GoldenEye film
And the BMW Z3 roadster

BMW
Covered product costs for prototype vehicles
Invested in advertising Z3 as James Bonds new car

MGM
Supported Z3 in the movie previews and trailers
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Need for Other Marketing Elements

To Pre Sell Z3
Golden Eye movie placement was just a teaser

To close gap between Golden Eye Launch and

dealership availability
To stimulate interest in other BMW brands
To reach a wider audience
To reinforce brand image
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Neiman Marcus, Todays Show

Sep95
Known for its unusual product offering

Features
Special Limited Edition Bond Roadster
Launched in Neiman Marcus Catalog
Catalog and Vehicle featured on
Todays Show

Goal
20 Units over 3.5 months

Result
100 units in just2 days
6000 orders in the Christmas period
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BMW Website
Oct 95
More information
Virtual View of the Car

Features
Golden Eye film Segments
Today Show Clips and Movie Offer
Build your own Roadster: View
Display and Price

Result
Hit rates tripled from 35,000
hits/day to 125,000 hits/day.
Apple used this as a reference in
their advertising
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Press Launch in Central Park

Nov95
Formal introduction
Reach out to broadcast and print media
Prepare the ground for movie launch

Features
Media attention: 200 media rep.
Preceded by CEO Interview in Today
Show
Special Effects to generate Interest

Result: Extensive Coverage in

Print: Hard Copy, The Mornings
Business, The Money Wheel
All major network news channels.
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Jay Leno Tonight Show

Nov 95
Reaching out to wide audience
Promoted movie and car

Features
Jay Leno using the car in his show
Bond to dodge all security and enter
Took calculated risk and gamble

Result
Worked Out Well as per Mc Dowell.
Not much data.

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Radio DJ Program
Nov 95
Word of Mouth effect
But was the most risky

When?
Early November 1995

Features
Innovative ideas used by DJs
Gave away Z3.

Result
Got brand into conversation milieu.
6000 spots against 3800 promised.
3 Times Word of mouth effect of
other programs
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Traditional Media Used In NT Spirit

40% Traditional vs. 60% Non-Traditional
TV and Print Advertisement s on 1st November
Humor and Fantasy instead of traditionally
no-nonsense
TV: Spots in Network Shows, Lifestyle Cable
programs
Print: Placed in business, lifestyle and Auto-buff
magazines.
Utilized to prime the launch of movie.
Advertising Recall 15% of TV viewer (50% higher
than Mercedes E class)
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Dealer Promotion
Objective
To be integrated from outset
To motivate dealers to spend
resource on product to be launched
after 6 months.

How?
Dealer Visits and Presentation
Emphasized strategic importance

Result

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Private Film Screening

Cocktail Receptions
Circulated the Cars for Display
Merchandise e.g. Bond License plate
These generated publicity in media

Challenges For Phase II

How To Sustain The Interest?
How To Convert Interest Into Order?

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How To Sustain Interest?

Maintain the taste of infatuation
Contacts through mails, phone etc.

Plan dates
Demo rides

Win hearts
Progress updates to increase anticipation

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How To Convert Interest Into Orders?

Stay committed
Deliver the product on time

Build support system

Expand dealer network

Get married
Convert purchase decision into a relationship

Be caring and understanding

Provide affectionate post purchase support
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Was Phase 1 of Z3 Launch Successful?

Neiman
Sep 11, 1995

100 orders within 2 days

6000 orders by Christmas

BMW
Internet Site

Hit from 35000 to 125000 / day

Apple also approached for rights to
reference

Central Park

Extensive coverage in broadcast, print and

news
Cartoons in news paper

Press Launch
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Was Phase 1 of Z3 Launch Successful?

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Should BMW Persist With NTM?

McDowell wanted to. But...
Non traditional can not be repeated
Else it may become traditional
And lose the infatuating charm

Would they find such a combination again?

Successful Bond movie with new hero?

Will that be successful again?

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Is NTM Good For All Products?

Good for
High involvement products & emotional purchase
Ancillary / Support products with less risk
Target defined in psychographic segment
Excitement generation
Intensely competitive with high ad clutter

But
Unpredictable and Risky
Measurement system not defined
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Open Questions..
What else could BMW do within NTM
framework?
Why didnt BMW launch Z3 in auto-show in
Detroit?
Why did bike market decline? Why didnt
BMW target that market?
How can we develop a system to measure
effectiveness of NTM?
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Thank You

12/14/2014