Bmw Z3 Case

Executive Summary

BMW was a global automotive company, which has a significant position in the luxury/ performance segment of the U.S. automotive market. The company planned to sustain the brand image by updating the corporate image and starting a new product development program. In 1992, the Special Project Group founded to lead new product development initiative. The project was refined over the next two years presenting the innovative stylish two-seater convertible Z3 which was the first 100% “Made in America” BMW vehicle manufacture from the new Spartanburg, South Carolina plant. The launching of Z3 was important for the company to establish a substantial position in the American-made car market.

The central goal of the launch was to expand the BMW franchise and rejuvenate the BMW brand by positioning the Z3 squarely in American culture. The launch team believed the “nontraditional” marketing methods would be more effective to draw broader attention and interest to the brand than the standard fare of television and print advertising. BMW negotiated for movie placements with MGM/ United Artists on the James Bond GoldenEye film in fall 1994. While there was six-month gap between the film launch, the launch team built other complementary elements to reinforce both pre-sell the Z3 and generate dealer traffic. These “nontraditional” activities were 1) Neiman Marcus Catalog Offer, 2) BMW Internet site, 3) Press launch in Central Park, 4) Jay Leno Tonight Show, 5) Radio DJ Program, and 6) “Go: An American Road Story” Video.

The success of the Phase I launch plan labeled the decision making on the Phase II launch strategy. The challenge was to design a marketing program that would sustain product excitement until the dealer product available several months later. There are three strategies that BMW could decide: 1) Return to traditional programs, 2) Continue the “nontraditional” program, and 3) Combination of both approach. BMW believed that continue promoting...