BMW Z3 Roadster
Submission date: 05/12/2010
Submitted by ( Group 6):
Anand Kumar Adeppa
BMW Z3 is the 1st BMW car which is being manufactured in North America, a market which has contributed only 16% to BMW s revenues. At the same time, the American customer has found itself difficult to relate itself to a foreign brand. Here lies the challenge for BMW and the marketing behind the Z3 campaign are aimed at changing this perception of the American customer and ingrain BMS s brand image in the hearts of Americans Phase1 which was not a run of the mill marketing campaign created a huge buzz and was deemed a huge success. The campaign revolved around the placement of the BMW Z3 in the James Bond Movie GOLDENEYE as Bonds new car. Several other non-traditional elements such as being part of the Neiman Marcus Christmas Catalog, product appearance on the Jay Leno show, and launch at Central Park ensured an out-of-the-box prelaunch. The challenge now is to leverage the buzz and design Phase II marketing strategies which will convert the interest generated into revenues for BMW.
Facts & Current Scenario: The case revolves around BMW (North America Inc.) whose Z3 Roadster’s pre-launch campaign got a very overwhelming feedback. The company now had an uphill task of designing a marketing plan to maintain the hype which was created by it’s pre-launch campaign and since, the car was to be made in Spartanburg, South Carolina, the BMW Family also had to show that they can be successful globally as well.
Purpose: The purpose of the case study is to motivate it’s dealer network and manufacture products according to the customer requirements and specifications in today’s ever-changing & competitive global market. In order to keep a consistent growth, every firm has to plan its marketing strategy and develop a marketing plan.
Target Markets: Before getting into the marketing strategy, we must identify the target markets which are as follows: 1. Young people: The younger generation is one of the biggest target markets for BMW as they aid in incrementing the sales to the brand. Also, it’s considered to be a status symbol amongst the youth. 2. Middle Aged People: Men and Women in their 40’s expressed their desire to have their desire to have the roadster and that’s the segment which could be used to channelize the sales of BMW z3 roadster.
Market Needs & Trends:
1. The people of middle aged were the ones who were really interested in buying a roadster. In fact, some of them that it was their childhood dream and they were dreaming of having it all their lives! 2. Baby Boomers were one step ahead and longed for the roadster of the yesteryear.
Youthful targets expanded BMW franchise into the United Strong reputation of quality service Strengths:
1. Strong company reputation
2. BMW connotes quality
3. Financially stable company
4. Significant position in luxury segment of auto market
5. States stylish and fun to drive
6. Opportunity for success as a global company
7. Ultimate Driving Machine
8. Diverse ranges of Products - BMW, MINI and Rolls-Royce 9. Strong Cash Flow Position
10. Increase turnover and trading profit
11. Strong Balance Sheet
12. World's leading Premium Quality Automobile Manufacturer 13. Brand Awareness
1. Company setbacks imposed by Lexus, Acura, and Infiniti 2. Can be seen as snobby and serious
3. Reputation as only a German made car
4. Has not proven success as global company
5. If Z3 fails dealers may not trust BMW as a global franchise 6. Z3 launch can be seen as rushed – BMW wanted to launch before competition 7. Non-Traditional PR and Advertising is very risky
8. Perception of High Prices
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