Harvard Case: Launching the Bmw Z3 Roadster

Harvard Case: Launching the BMW Z3 Roadster

James McDowell, vice president of marketing at BMW North America, Inc. must design Phase II communication strategies for the launch of the new BMW Z3 roadster. The program follows an “out-of-the-box’ pre-launch campaign centered on the placement of the product in the November 1996 James Bond movie, Golden Eye, and including other “non-traditional” elements such as a product appearance on Jay Leno’s Tonight show, an offering of a James Bond Edition Roadster in the Neiman Marcus Christmas Catalog, and large scale public relations activities. McDowell must assess the effectiveness of the pre-launch activities and design marketing tactics that can sustain product excitement until product availability in March.

The Z3 case provides a stimulating overview of how creative ideas can influence a new product launch. It illustrates the role of cross-promotions and movie product placements within the marketing mix, as well as their role in developing a new brand and a brand’s �personality’. It also shows how communications strategy and tactics have evolved beyond traditional TV advertising.

Objectives of the case:

1. To consider the power of marketing execution (e.g., product placement) versus traditional media planning strategy. How does this new marketing approach affect shifts in brand image?

2. To encourage a point-of-view regarding the role of cross-promotions and movie product placements both within the marketing mix, and as elements of new product launch activities

3. To structure thinking about a "new marketing paradigm" that does not rely on advertising, the television networks and their associated metrics as central organizing elements. Namely, to develop a framework by which "non-traditional" (NT) marketing plans can be designed, managed, and measured.

Guideline questions:

1. What is the strategic significance of the Z3 launch? (Hint: Impact on dealer network).

2. What are the benefits and risks of non-traditional" (NT) marketing (e.g., elements such as movie placement; a product appearance on Jay Leno’s Tonight show, an offering of a James Bond Edition Roadster in the Neiman Marcus Christmas Catalog)? What are the possible implications for brand management strategy?

3. How does NT Marketing work? Is there a theoretical model to represent this process? Can BMW or other companies use the Z3 launch as a model for other product introductions?

4. How can the success of the Z3 launch be measured?

Launching the BMW Z3 Roadster

1. What factors underlie BMW’s desire to shift to a “non-traditional” marketing venue for the Z3 launch?

2. Do you agree with McDowell that the Z3 launch qualifies as a “paradigm shift” in marketing for BMW? For marketers in general?

3. McDowell claims that he will never go back to traditional marketing after getting a taste of the non-traditional venue. Do you agree?

4. Was the Z3 launch successful? How do you know?

5. Helmut Panke has engaged you as a consultant on design for Phase II of the plan. What specific objective(s) would you set? What budget and media plan would you propose?

9-593-046 BMW: The Ultimate Driving Machine Seeks to De-Yuppify Itself HBSP 24pp.

Annotation - Tracks changes in the luxury auto market during the 1980s and early 1990s. Shifts in target consumer behavior--particularly the yuppie lifestyle--serve as the basis for manufacturer modifications of product line, positioning, and advertising. The climax of the case is the 1991 overt effort by BMW to "de-yuppify" itself in the minds of the target market. Teaching Purpose: To address issues of how changes in product line, positioning, advertising, and consumer lifestyles affect brand strategy in a high-salience product category, i.e., luxury automobiles.

Subjects: Brands; Communication strategy; New product marketing; Product placement; Product positioning; Public relations

LAUNCHING THE BMW Z3 ROADSTER

Synopsis

BMW has just completed Phase I of its integrated marketing plan for the launch of the new Z3 Roadster. At the center of this �non-traditional’ plan is a 90-second product placement in the latest James Bond movie, GoldenEye. McDowell, VP Marketing of BMW North America, must decide how to evaluate the performance of Phase I, and design a plan for Phase II that will translate the buzz that was generated into product sales.

Discussion Questions

1. What is the strategic significance of the Z3 launch?

2. Why did BMW shift to non-traditional (NT) marketing for the Z3? What benefits does McDowell think he received? What are the risks of NT marketing?

3. How are NT campaigns supposed to work? What are the intended effects?

4.

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