Answer : There are serveral motives for BMW think of this film idea. BMW was regarded as most luxury cars, but after the competition form japan, it was traped into ‘yuppie car’ image of brand. BMW, however, hope they could be the world’s most exciting luxury cars. Thus it is crucial to improve its brand image to ‘ reponsive performance’. Secondly, their reseach found that the target group of their potential customers are young professionals who use internet very frequently.So the new media may intensively affect their decisions. Thirdly, The budget was limited but the mission was convertly over load. Due to the company’s size and limited marketing budget,…
Launching the BMW Z3 Roadster January 1996 marked the beginning of Phase II of BMW of North America Inc.'s Z3 roadster introduction. Phase I had centered around the placement of the new $28,750 two-seat convertible in the James Bond hit movie, GoldenEye, which premiered several months earlier. While not yet critically evaluated, results of the "out-of-the-box" pre-launch campaign appeared very positive: word-of-mouth concerning the Z3 and the James Bond cross-promotion were favorable, and product orders far exceeded BMW's initial expectations. The challenge now was to design a marketing program that would sustain product excitement until dealer product availability beginning in March. Phase 11 planning had to be undertaken within the context of other important events in the BMW product family: (1) the April launch of the redesigned 5-Series; and (2) the company's role as "official international automotive sponsor" of the 1996 Atlanta Summer Games, which would begin in earnest with the Olympic Torch Relay 5-Series event in June. While these other elements of the BMW product family clearly impacted the Z3, the marketing approach and ultimate results for the Z3 would influence the whole BMW operation in the United States. Dr. Helmut Panke, chairman and CEO of BMW (U.S.) Holding Corp. since 1993, noted that the Z3 was destined to be "the first BMW not made by mythical little creatures in the Bavarian woods. This car will be made in Spartanburg, South Carolina. Some people think BMW means German-made. With the Z3, we must show we can be successful as a global company, manufacturing at strategic locations -- even if not in Bavaria. Assembling of cars in the United States requires BMW to replace `Made in Germany' as a symbol of quality with `Made by BMW'." As Brandweek put it, Panke was "saddled with the task of exporting BMW's mystique from the Bavarian hills to the fields of South Carolina." Industry commentators characterized the Z3 as "the new standard bearer for a…
Firstly, the launch of the BMW Z3 is significant for the company as it helped the company inch closer towards their long term goal in becoming a global brand. Prior to the introduction of BMW Z3, the most common mindset of the general public about BMW is that the superior quality of their products are due to the fact that it was made in Germany. With the Z3 manufactured in Spartanburg USA, BMW can show that they can be a successful global company by manufacturing at strategic locations even when it’s not in Bavaria. Furthermore, this launch had helped people to associate the quality of BMW’s product to the company itself rather than its manufacturing location.…
In 1927, BMW produced their first automobile, the tiny "Dixy." By 1933, BMW was producing cars that could be called truly theirs, offering a line of coupes, convertibles, and luxury sedans, which ultimately appealed to the higher end of the automobile market. The Bavarian company would come to export its high-end vehicles all over the world. In 1994, the company sought growth in the United States, and started producing automobiles in Spartanburg, South Carolina.…
BMW as a company is based on commitment of their workers and less hierarchical barriers. They believe that hierarchical barriers get in the way of innovation. To remember where they came from and to motivate worker’s performances, they revisit their downfall of 1959 at every orientation for new hires. The company is fast paced, that promotes growth opportunity and career advancements, which mean, the workers have to be flexible and creative. Managers that are willing to achieve excellence are promoted with little time for training. They have to work closely with subordinates and peers to learn information.…
BMW is a manufacturer of aircraft engines, motorcycles and automobiles based in Munich, Germany. They are the leading auto exporter in Europe. BMW designed their first aircraft engine in 1917. In 1923, they developed their first motorcycle. In 1928, they entered into the automobile business. By the 1930’s, the company began producing touring cars and sports cars. They introduced a new motorcycle to the German market in 1948 after Allied forces dismantled the company’s main factories in 1945.They returned to producing automobiles in the 1950’s but sales were poor. They began competing with Mercedes Benz in the luxury car markets in the U.S. and Europe in the 1960’s by producing sports sedans and compact touring cars. BMW’s sales climbed in the 1980’s in the U.S. but then dropped due to competition from Toyota’s Lexus and Nissan’s Infinity. In 1992, BMW outsold Mercedes for the first time in Europe after the collapse of the Berlin Wall led to a boom in Europe’s car sales. In 1990, BMW began producing aircraft engines for business jets through a joint venture with Rolls-Royce. In 1992, they built their first automobile plant in the United States in Spartanburg, S.C. In 1994, they acquired 80% of a British…
BMW Group’s new business strategy is to strengthen its position within the global automobile industry market by increasing sales to more than two million automobiles per year. To achieve this objective the company will invest in new technologies and automobile concepts whilst developing new areas of activities. The new strategy will help BMW Group create new opportunities and become more efficient thus take a lead over competitors and increase their future success (www.bmweducation.co.uk).…
BMW soon realized that many threats impacted its market share in U.S. The Japanese auto manufacturers started building plants in the U.S. to deal with the increased U.S. demand at a lower cost than importing their cars. BMW's U.S. export situation was made even worse by the appreciation of German mark and additionally the higher German labor costs. As a result, the decision was made in 1991 to build a U.S. manufacturing plant to stay competitive.…
The automobile industry has grown to be a very dynamic one in the recent years. Even though the essential use of this industry has been to satisfy the customer’s need to travel from one place to another in comfort, the constantly changing market, has slowly changed customer’s needs into wants paving way for high competition in the automobile arena. This essay gives a brief analysis on BMW, one of the leading brands in the industry and how they effectively use marketing as a tool to achieve the status they enjoy now. Even though BMW produces various automobiles including motorbikes and are into financial service sector, this essay will look into only the cars produced by the BMW.…
This case study is about BMW’s advertising techniques and about Jim McDowell, former VP of Marketing for BMW in North America and the Debate on how to respond to the success of the company’s latest marketing campaign, "BMW Films"…
The marketing mix elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. This report will compare the marketing strategies used by Mercedes Benz and BMW both of which are German car manufacturers. Mercedes-Benz will discontinue the CLK model after 2010 and replace it with a coupe and convertible based on the new E-class. In comparison BMW has been extending its product portfolio by including smaller and less profitable cars. During 2008 Mercedes-Benz USA appointed 27 dealers to open special AMG performance centers. BMW created an import/export operation which is the only U.S. manufacturing plant, it is located in Spartanburg South Carolina. For promotion during 2008 Mercedes Benz announced a 100 million dollar TV advertising campaign to promote its C-class and M-class premium SUV. BMW planned to do the exact opposite in the US, BMW announced they will heavily focus on the Internet, interactive marketing and print. Mercedes Benz has aggressively priced its new GLK class which is a premium medium SUV, with an entry price under $35,000. In contrast BMW is pricing its new diesels for profit, not volume, in the United States. BMW instead is shooting for higher profits, pricing its diesel vehicles above those of its major rivals.…
Germany is the largest country in the European Union and has one of the highest Gross Domestic Product (GDP) per capita in the world, making the country very important for marketing studies. There are also some of the strictest consumer protection laws in the world, such as the restriction on comparative advertising and strict regulations on promotional tools (Walsh, 2001, p 76).…
BMW, the leading luxury car manufacturer in the United States, implemented a new marketing initiative based on its online video services aimed to increase sales of customized vehicles. Prior to the introduction of the "Dream It. Build It. Drive It." program, BMW's SUV sales in America were in decline, and the situation required an immediate management response. With the arrival of the next generation of the X3 model in 2010, BMW launched a new online service allowing customers to watch the creation of their new vehicle through live video streaming. The case addresses the challenges of catering to the North American consumer, where most car buyers want immediate gratification with their purchases. BMW tackled this issue with a complex change in its production system to decrease lead times for its new vehicles, transferring a complete assembly line from Austria to South…
1. Helmut Panke, chairman and CEO of BMW (U.S.) introduced BMW’s strategic significance of the Z3 as reducing cost, firm commitment to the U.S. market and increase in production. Firstly, BMW’s BDI in the U.S. had decreased from 16.3% in 1984 to only 9.6% in 1991. With a low amount of product sales and international monetary fluctuations, BMW desired to lower production cost by moving from Germany to the U.S. and adjust model prices if necessary. Secondly, manufacturing in the U.S. had attained an investment of $600 million dollars which enabled a huge increase of production to meet higher standards and build to the specifications of the U.S. customers. Most importantly, BMW established the long-term objective of being a successful global company. Instead of only made in Germany, franchise-expanding to Spartanburg demonstrates the first step of becoming international and the company’s commitment to developing new relationships with the U.S. market. BMW was passionate of making BMW a cult in the U.S. and repositioning in American culture.…
In short, any successful brand or product can not be divorced from the success of advertising and publicity. BMW case, other brands also do so.…