presented by: matt lee jared collins marc norsen eric rowe steven pfefferle duran keller
Post on 24-Dec-2015
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Marketing History
Ultimate Driving Machine Campaign This campaign tried a duel positioning of prestige &
performance Targeting
Young urban professionals Affluent and stylish, without a conservative image
The Dark Years BMW became an image as a “yuppie car” Toyota created the luxury line Lexus Nissan created Infiniti
Marketing History
The 1990’s BMW introduced the 325i sedan, 740i sedan BMW also began an aggressive pricing strategy
New Advertising The main image of the brand was the same
Exciting luxury car Same target market
The 3C Analysis Company
Background Bayeriche Motoren Werke (AG) founded in 1916 as aircraft
engine manufacturer Munich-based BMW produced first automobile in 1929 In 1980’s, the company’s position in luxury/performance
segment of global automotive market has been established
Objective Organization specific
Profit organization
Time horizon specific Short-term objectives
BMW Films brings creative advertising strategy
Long-term objectives Introduce a number of new models in core series Aggressive pricing strategy Reorganize its dealer network
The 3C Analysis
Resources Hollywood Directors: John Frankenheimer, Ang Lee, John
Woo, Wong Ker-Wai, Guy Ritchie, and Alejandro González Iñárrita
Actors: Clive Own, Mickey Rourke, Madonna, Don Cheadle, and Stella Skarsgaard, Marilyn Manson
Costs BMW Films Production Costs: $15 million Media Expenditures: $62.4
The 3C Analysis
Company Fit Sedans, coupes, convertibles, sport wagons, roadsters,
sport utility vehicles
Collaborators Distribution channel: internet, movies, television Supply chain: Dealerships
The 3C Analysis
Customer Target Market
Approx. 46 year old, well educated married males with a median income approx. $150,000
2% market share in U.S., 7% in Germany, 5% in rest of Europe
Growth of 40%, to 300,000 cars per year
Consumer Behavior Customer’s have a degree of loyalty
Start with the smaller cheaper cars when they are younger Progress to bigger, more expensive cars as they age
85% of BMW purchasers used the internet before purchasing their BMW.
The 3C Analysis
Competition Who: Luxury vehicle manufacturers
Acura, Audi, Infiniti, Jaguar, Lexus, Mercedes, Porsche, Saab, Volvo
How Many These nine companies Makers who also have luxury models, including Cadillac,
Ford, Lincoln, etc.
The 3C Analysis
Current 4P Decisions Product
Entry Level Sedan: 325i Mid-Level Sedan: 530i Flagship Sedan: 740iL Featured Vehicle in BMW Films:
M5, 740iL, 540i, X5, Series 3 coupe and Z3
The 3C Analysis
Price Entry-Level Sedan: $27,635
Lower than the average price of the 10 companies profiled at $28,435
Lower than the median price of $27,815
Mid-Level Sedan: $40,045 Lower than the average price of $40,517 Higher than the median price of $39, 263
Flagship Sedan: $67,545 Higher than the average price of $64,974 (9 companies
profiled, Saab excluded) Equal to the median price of $67,545
The 3C Analysis
Promotion BMW spent $62.4 million on media expenditures,
third lowest amount of out 10 companies BMW ranked second in sales with 213,127 units to
Lexus’ 223,983. Lexus’ media expenditure of 187.3 is more than three
times the amount BMW spent in 2001
Place Available for sale in 150 countries worldwide 340 dealerships in United States
The 3C Analysis
Sales 1991-2001
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
0
50
100
150
200
250
AcuraBMWLexusMercedes
Possible Reactions Toughest Competitor
Lexus was the only manufacturer with more sales in units than BMW
Mercedes stole the most business from BMW “Out of the 100% of BMW customers who disposed of their
BMWs and purchased a non-BMW car in the luxury automobile segment, 37% replaced their BMW with a Mercedes, whereas 12% replaced their BMW with a Lexus”
The 3C Analysis
Expected Future Actions BMW must focus to equal if not better the standards of
Mercedes in order to retain their market share
Entry The marketing decision to make BMW Films was an
unprecedented move for an automotive company, with a high-risk investment of $15 million
The results were staggering, with sales booming 17.4% in 2002
The 3C Analysis
Marketing Approach
Non-Traditional BMW had a relatively small budget for advertising and
marketing. “Golden Eye”
Situational They were not going to introduce any new products and wanted
to launch a campaign to let people know what BMW was all about.
BMW Films BMW decided to get Hollywood’s best and brightest directors
to pick from 15 scripts to create a 6-9 minute film. Risk Reward
Target The target was young professionals in urban areas. BMW
produced print ads, posters and TV trailers all modeled after a feature film
Marketing Approach
Future Marketing
Existing Films BMW could have built on the success of the films and just
expanded their audience Theater films Distribute DVDs
BMW as a low budget advertiser In 2001 BMW had media expenditures of $62.4 Million
8 out of 10 comparable manufacturers
In 2001 BMW had total sales of 213,127 2 out of 10 in total sales
Sales-Expenditures Comparison
Tota
l Sal
es (u
nits
)
Med
ia E
xpen
ditu
res (th
ousa
nds)
050000
100000150000200000250000
LexusBMWMercedes-BenzCadillacAcura
Additional Films 90% of visitors to the site requested more films. Stars were willing to feature in more films, including Don
Cheadle Films popularity began to flourish through word of mouth
which would continue the success of the campaign The films focused on the performance of the vehicles Showed action shots, which attracted the BMW customer
Feature Length Film Too expensive and similar to the Bond films
Future Marketing
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