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This PPT describes how BMW used non-traditional media to launch its Z3 Roadster in USA.
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04/10/2023
Launching The BMW Z3Roadster
SuketRajul
Ashish SinhaAbhishek AnshumanPGPEX-III
04/10/2023
What Are We Going To Discuss?
• About BMW’s Objectives• How did they select Z3 Roadster for launch• How did they select non traditional marketing• How did they utilize the channels• What are the challenges ahead• How can we analyze it further
04/10/2023
BMW Group International
•Cars produced–BMW, MINI and Rolls-Royce
•HQ in Munich, Germany.
•Operations in 150 countries
•Attractive 'four-cylinder' tower as main office building
04/10/2023
BMW Sales Needed Attention
0
100
200
300
400
500
600
700
US Unit Sales(in thousands)
Worldwide Unit Sales(in thousands)
04/10/2023
BMW Wanted To Grow Further
• Target– Increase 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
04/10/2023
BMW Had To Identify Right Product
• Race Cars
• Dune Buggies
• SUV
• Roadsters
04/10/2023
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 BMW’s heritage as a producer of roadsters
• Fit the corporate goal of being the best not the biggest
04/10/2023
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
04/10/2023
Spartanburg Selected For Production
Germany America
Munich
Spartanburg
04/10/2023
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
04/10/2023
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
04/10/2023
Why Did BMW Select Non Traditional Marketing
04/10/2023
Components of Advertising
Objectives Setting
•Sales objectives
•Communication objectives
Budget Decisions
•Placement in movie at low cost
•NTM more cost effective
Advertising Evaluation
• Sales impact
• Communication impact
Message Decision
•American experience
•Made by BMW
Media Decision
•Co-launch with movie & star
•6 other NTM channels
•Synchronized with movie premiere & product launch
04/10/2023
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 people’s conversational
agenda. – Then to leverage the buzz to promote the brand.
• For psychographic segmentation, nontraditional marketing is more cost effective
04/10/2023
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
04/10/2023
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.
04/10/2023
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!
04/10/2023
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 Bond’s new car
• MGM – Supported Z3 in the movie previews and trailers
04/10/2023
And Here Is Z3 with Bond!
04/10/2023
And Here Is The Scene
04/10/2023
Other Marketing Channels Used By BMW
04/10/2023
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
04/10/2023
Neiman Marcus, Today’s Show
• Sep’95– Known for its unusual product offering
• Features– Special Limited Edition Bond Roadster
Launched in Neiman Marcus Catalog– Catalog and Vehicle featured on
Today’s Show• Goal– 20 Units over 3.5 months
• Result– 100 units in just2 days– 6000 orders in the Christmas period
04/10/2023
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
04/10/2023
Press Launch in Central Park
• Nov’95– 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 Morning’s
Business”, “The Money Wheel”– All major network news channels.
04/10/2023
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.
04/10/2023
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
04/10/2023
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)
04/10/2023
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– Private Film Screening– Cocktail Receptions– Circulated the Cars for Display– Merchandise e.g. Bond License plate– These generated publicity in media
04/10/2023
Challenges For Phase – II
How To Sustain The Interest?How To Convert Interest Into Order?
04/10/2023
Infatuated Customers
Word Of Mouth, Buzz
Advocacy
Infatuation
Excitement
Exposure
Purchase
Fast and Emotional Response
Leaves Customer in Fragile Stage
Requires Reinforcement
Customer May Become Missionary
04/10/2023
From Excitement to Sale
Desired End-State:
Purchase
Possible End-State: Brand forgotten
Time
Phase I Phase II
Gene
ratin
g ex
citem
ent,
buzz
, visi
bilit
y
Point of“infatuation”
Excitement
04/10/2023
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
04/10/2023
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
04/10/2023
Critical Analysis
04/10/2023
Was Phase 1 of Z3 Launch Successful?
•100 orders within 2 days
•6000 orders by Christmas
NeimanSep 11, 1995
•Hit from 35000 to 125000 / day
•Apple also approached for rights to reference
BMW Internet Site
•Extensive coverage in broadcast, print and news
•Cartoons in news paper
Central ParkPress Launch
04/10/2023
Was Phase 1 of Z3 Launch Successful?
CognitiveFrom Unawareness To Knowledge
AffectiveFrom Liking to Conviction
BehaviouralPurchase ???
04/10/2023
Should BMW Persist With NTM?
• McDowell wanted to. But... Non traditional can not be repeated
Else it may become traditionalAnd lose the infatuating charm
Would they find such a combination again?Successful Bond movie with new hero?
Will that be successful again?
04/10/2023
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
04/10/2023
Open Questions..
• What else could BMW do within NTM framework?
• Why didn’t BMW launch Z3 in auto-show in Detroit?
• Why did bike market decline? Why didn’t BMW target that market?
• How can we develop a system to measure effectiveness of NTM?
04/10/2023
Thank You!