Bmw Case Writeup
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.
2. The launch of BMW Z3 Roadster was a successful experience of non-traditional marketing strategies. Understanding the product image of unique and attention getting, BMW marketing team utilized “non-traditional” marketing tools rather than traditional television and print advertising to reach psychographic segmentation and accomplish the objective of “leveraging the buzz” in a cost effective manner. The non-traditional plan was fit due to the American culture, goal of “attention-getting” and increase brand penetration. In order to reach and raise awareness of a wide range of audiences and add glamour to the product, movie placement at low cost was selected as the communications strategy. The budget of movie placement was low and led to a higher ROI than traditional programs. This launching plan received higher impact per dollar spent and more helpful on building BMW’s brand equity.
BMW has established a proper target person
2. The launch of BMW Z3 Roadster was a successful experience of non-traditional marketing strategies. Understanding the product image of unique and attention getting, BMW marketing team utilized “non-traditional” marketing tools rather than traditional television and print advertising to reach psychographic segmentation and accomplish the objective of “leveraging the buzz” in a cost effective manner. The non-traditional plan was fit due to the American culture, goal of “attention-getting” and increase brand penetration. In order to reach and raise awareness of a wide range of audiences and add glamour to the product, movie placement at low cost was selected as the communications strategy. The budget of movie placement was low and led to a higher ROI than traditional programs. This launching plan received higher impact per dollar spent and more helpful on building BMW’s brand equity.
BMW has established a proper target person