BMW Films

Presented by Team#3: Hyo Suk Kang, Laszlo Banhegyi, Petr Shchekochikhin, Se Jong Kang, Sung Ho Jie

Contents

1. Case problems

2. Company history

3. Customer base & Product strategy

4. Identify goals of the campaign

5. Evaluate the success of the campaign

6. Choose one out of 4 options

7. Postscript

HyoRee’s Anystar Campaign

Case problems

1. What were the goals of the campaign? What was the motivation behind the idea?

2. How successful has the campaign been? Evaluate the success of the campaign against its goals set above?

3. What should BMW and McDowell do for an encore? Which option should he pick?

Company history

BMW has experienced fluctuated Sales due to the outdated image (Fashion brand, Fad, Yuppie)

1970s1970s

HottestHottestluxury brandluxury brand

1968 1986 20001992

1960s1960s

NicheNicheforeign carforeign car

1980s1980s

Paradigm ShiftParadigm Shift

• Conspicuous consumption New pragmatism

• Competition from Japan

1990s1990s

ReinvigorationReinvigoration• Launch new models and series

• Aggressive pricing

• DOS reorganization

• Substantially positioned as a Luxury brand (Exh.9)

1968-2000 U.S. BMW Unit Sales (in thousands)

200.0

100.0

Customer base & product strategy

Targeting a different psychographic constantly with 3, 5, 7, Z, X series

“Caring about status” “practical & safety”

• Demographic: 46 years old, well-educated, married• Psychographic: Tended to be leaders, worked and played hard Early achiever, active, engaged in sports, Preferred perfect product, enjoyed driving experience Internet users (85% of BMW purchasers)

Identify goals of the campaign

1. Keep growth and maintain sales

2. Attract young generation without alienating old generation

3. Strengthen brand image in luxury segment

0 200 400 600 800 1000 1200

BMW

Lexus

Mercedes-Benz

Audi

“What is the most efficient way of promotion?”

Luxury brands: Media expenditures (dollars/unit, 2001)

Evaluate the success of the campaign

In 2001, 13% growth in sales compared to 2000

Successfully integrated channel marketing

: 82% of visitors of website are under 44

BMW targeted right customers

Contribution to improve Brand image

: Elimination of the stigma associated with BMW brand (status symbol, yuppie-machine)

“The ultimate in new-media, high-end branding has arrived”

- Time, May 7, 2001

Evaluate the success of the campaign

45%

6%

13%

22%

59%

8%

37%

10%30

45

64

34

45

55

Customer Visitor

94%Recommended Recommended films to othersfilms to others

82%Non-BMW ownerNon-BMW owner

Age segments High recommendation

Targeting new customers

Choose one out of 4 options

Options DVD New Films Big Movies Do Nothing

Pros

• Easier for traditional customers• Quicker distribution• Better integrated marketing approach

• Encored success• Relatively low cost• Emotional attachment to main character

• Emotional attachment to main character • Another Innovative marketing approach

• No copycat • Innovative image

Cons

• No self screen• One way communication

• Copycat • Risky• Lack of experience in that business

• More time & effort for something new• High Marginal utility in Filming

V V X X

※ Consideration: leverage, easy implication, cost-effective, risk averse approach

Postscript

It was so popular that BMW produced a free DVD

of the series

There were over 100 million film views and numerous

awards later

“The Hire” ended its internet run on October 21, 2005

The Hire's success led

way for BMW to create

three more short films

and comic series in 2002

Thank you