Decision Problem and Issues Statement
With the great sales performance and strong brand awareness in U.S. market, BMW has decided to launch a non-traditional advertising campaign via producing s series short films and publishing in BMW’s website, in order to create brand excitement and enhance brand equity thus further strength brand loyalty. The BMW Films marketing campaign turned out to be very successful via generated huge media exposure and receive positive feedback from all website visitors.
BMW now needs to make a decision on whether to continue to build on BMW film idea or start looking for new ideas for the next campaign. In addition, BMW faces a variety of sub issues that stem from the major issue:
• Strengthen brand image – always focus on strengthening the luxury image of the brand and not lose lead in the luxury market
• Stay ahead of the competition – ensure that new marketing ideas are innovative, stylish that provides BMW with a competitive advantage
• Define the target market for each product line – differentiate each BMW product which caters to different specific target groups in order to further increase the sales volume and market share.
1. “Milk” the existing film campaign – use the existing 5 films to strengthen brand image by focusing on reaching a wider audience
2. Develop more short films - Develop more short films to compliment the originals and continue to build up the momentum and awareness.
3. Feature film - Develop a feature length movie for theatre audience to further enhance the emotional connection with BMW
4. Do nothing – move on to a new marketing initiative
The criteria that are important to the alternative analysis are:
• Easy to implement
• Improvement of luxurious brand image
• exposure to all audience especially potential buyers and car lovers
• brand recognition as the luxury and quality car maker
• Monetary and time investment
• Innovative non-traditional idea for communication campaigns
Success in the luxury car industry is characterized by the strength and quality of the product, differentiation of target customer group and uniqueness in brand communication. The luxury car market is a highly competitive market consisting of numerous brands each with a variety of models. Elegance, performance, technology and driving experience are all critical factors in the manufacturer’s success. The threat of brand substitution is high, with each manufacturer offering competitive products positioned for specific market segments, whilst Supplier power in the industry is low as there are many suppliers competing for the luxury manufacturers business.
With BMW quality of cars and their previous marketing campaigns, BMW is well positioned to compete in the luxury car market. The company is building a strong product lineup, with additional models added to the core product segments. Through key position in performance they have improved brand loyalty and continue their focus on the “ultimate driving machine” campaign. This focus has now been expanded to position BMW as “the most exciting luxury car.” To ensure the company is focusing and satisfying on the customers’ needs, BMW has conducted extensive market research and has worked hard to make the vehicles appeal to the North American market with a wide range of products for a variety of segments and stand out amongst the competition.
However, a limited marketing budget makes it difficult for BMW to effectively market to each one of these segments. BMW believes that “the future belongs to the nimble.” which is central to the cars and the marketing efforts. BMW’s mission is to be the first to figure out what the “next big thing” in marketing is going to be.
Evaluation of Alternatives
1. “Milk it” – in this situation BMW...