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BMW FILMS

Presented By: Matt Lee Jared Collins Marc Norsen Eric Rowe Steven Pfefferle Duran Keller. BMW FILMS. Marketing History. Ultimate Driving Machine Campaign This campaign tried a duel positioning of prestige & performance Targeting Young urban professionals

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BMW FILMS

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  1. Presented By: Matt Lee Jared Collins Marc Norsen Eric Rowe Steven Pfefferle Duran Keller BMW FILMS

  2. 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

  3. 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

  4. The 3C Analysis • Company • Background • BayericheMotorenWerke (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

  5. The 3C Analysis • 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

  6. The 3C Analysis • Resources • Hollywood Directors: John Frankenheimer, Ang Lee, John Woo, Wong Ker-Wai, Guy Ritchie, and Alejandro GonzálezIñárrita • Actors: Clive Own, Mickey Rourke, Madonna, Don Cheadle, and Stella Skarsgaard, Marilyn Manson • Costs • BMW Films Production Costs: $15 million • Media Expenditures: $62.4

  7. The 3C Analysis • Company Fit • Sedans, coupes, convertibles, sport wagons, roadsters, sport utility vehicles • Collaborators • Distribution channel: internet, movies, television • Supply chain: Dealerships

  8. 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.

  9. 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.

  10. 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

  11. 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

  12. 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

  13. Sales 1991-2001

  14. The 3C Analysis • 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”

  15. 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

  16. 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.

  17. Marketing Approach • 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

  18. 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

  19. Sales-Expenditures Comparison

  20. Future Marketing • 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

  21. Recommendation • Continue to produce a second set of films to capitalize on the success and the buzz from the first set. • These films should use the character of the driver (Clive Owen) to show the swagger and attitude of the BMW.

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