This PPT describes how BMW used non-traditional media to launch its Z3 Roadster in USA.

1. Launching The BMW Z3Roadster Suket Rajul AshishSinha Abhishek Anshuman PGPEX-III 3/8/2010

2. What Are We Going To Discuss? About BMW’s Objectives How did they select Z3 Roadster for launch How did they select non traditional marketing How did they utilize the channels What are the challenges ahead How can we analyze it further 3/8/2010

4. BMW, MINI and Rolls-Royce

5. HQ in Munich, Germany.

6. Operations in 150 countries

7. Attractive 'four-cylinder' tower as main office building3/8/2010

8. BMW Sales Needed Attention 3/8/2010

10. Increase unit sales to 100,000 in the US mkt.

11. Promising youth segment

12. Opportunity

13. Falling Worldwide Market for Motorcycle which generated market of substitute product for the same psychographic market segment3/8/2010

15. Dune Buggies

16. SUV

17. Roadsters3/8/2010

19. Performance and luxury – The Ultimate Driving Machine

20. Was best fit with positioning of driving excitement

21. Emotional substitute for motorcycle segment

22. Evoked BMW’s heritage as a producer of roadsters

23. Fit the corporate goal of being the best not the biggest3/8/2010

24. Z3 Concept Tests Were Conducted Revealed interest across life stage segments Image conscious Gen X Aspirational car for men and women in 40s Nostalgia for late baby boomers Identified commonalities across groups “Lover of Life” mindset Propensity to seek unique expressions of individuality 3/8/2010

25. Spartanburg Selected For Production Germany America Spartanburg Munich 3/8/2010

26. Why Spartanburg? Displayed commitment to dealers and American people that BMW is here to stay Provided cost advantages High cost environment in Germany Cushion against monetary fluctuations However, also posed challenges To convince consumers that quality of cars produced in the USA would be no different from cars produced in Germany 3/8/2010

27. So What Did BMW Aim For? To expand the BMW franchise & market share Target of 100,000 annually in USA To rejuvenate the BMW brand by positioning the Z3 squarely in American culture and settling into the hearts and minds of the American public To make BMW a global brand Transition from Made in Germany Made by BMW 3/8/2010

28. Why Did BMW Select Non Traditional Marketing 3/8/2010

34. 6 other NTM channels

35. Synchronized with movie premiere & product launch3/8/2010

36. Why Non traditional Marketing? Non traditional marketing is fit – To weave the car into the fabric of the American experience. Also to get the car on people’s conversational agenda. Then to leverage the buzz to promote the brand. For psychographic segmentation, nontraditional marketing is more cost effective 3/8/2010

37. How The Media Was Selected Primary choice multi media including a product placement in a premier film a TV show sponsorship fashion world tie-in Selected Fallon as the agency based on proven experience in integrated and electronic marketing, key skill for nontraditional marketing 3/8/2010

38. Why Product Placement In A Movie? Adds glamour to the product Reaches out to two hard-to-reach audiences: Foreign viewers Young people Highly visible placement with celebrity endorsement – “impact placement” - at an average of $40,000. 3/8/2010

39. Z3 Roadster in “The GoldenEye” Without a fee! MGM got the use of prototype vehicles for the movie. MGM also obtained worldwide rights to reference the placement Perceived fit between Bond & Z3 brand personality BMW looking for a glamorous hero. Bond as handsome, wealthy, resourceful & adventurous. Man who loves life and is in control of his destiny Known for using technology with penchant for fast cars The quintessential hero for a quintessential car! 3/8/2010

40. BMW-MGM “Co-Launch” Co-launch of The Bond actor The GoldenEye film And the BMW Z3 roadster BMW Covered product costs for prototype vehicles Invested in advertising Z3 as James Bond’s new car MGM Supported Z3 in the movie previews and trailers 3/8/2010

41. And Here Is Z3 with Bond! 3/8/2010

42. And Here Is The Scene 3/8/2010

43. Other Marketing Channels Used By BMW 3/8/2010

44. Need for Other Marketing Elements To Pre Sell Z3 Golden Eye movie placement was just a teaser To close gap between Golden Eye Launch and dealership availability To stimulate interest in other BMW brands To reach a wider audience To reinforce brand image 3/8/2010

45. Neiman Marcus, Today’s Show Sep’95 Known for its unusual product offering Features Special Limited Edition Bond Roadster Launched in Neiman Marcus Catalog Catalog and Vehicle featured on Today’s Show Goal 20 Units over 3.5 months Result 100 units in just2 days 6000 orders in the Christmas period 3/8/2010

46. BMW Website Oct’ 95 More information Virtual View of the Car Features Golden Eye film Segments Today Show Clips and Movie Offer Build your own Roadster: View Display and Price Result Hit rates tripled from 35,000 hits/day to 125,000 hits/day. Apple used this as a reference in their advertising 3/8/2010

47. Press Launch in Central Park Nov’95 Formal introduction Reach out to broadcast and print media Prepare the ground for movie launch Features Media attention: 200 media rep. Preceded by CEO Interview in “Today Show” Special Effects to generate Interest Result: Extensive Coverage in Print: “Hard Copy”, “The Morning’s Business”, “The Money Wheel” All major network news channels. 3/8/2010

48. Jay Leno Tonight Show Nov’ 95 Reaching out to wide audience Promoted movie and car Features Jay Leno using the car in his show Bond to dodge all security and enter Took calculated risk and gamble Result Worked Out Well as per Mc Dowell. Not much data. 3/8/2010

49. Radio DJ Program Nov’ 95 Word of Mouth effect But was the “most risky” When? Early November 1995 Features Innovative ideas used by DJs Gave away Z3. Result Got brand into conversation milieu. 6000 spots against 3800 promised. 3 Times Word of mouth effect of other programs 3/8/2010

50. Traditional Media Used In NT Spirit 40% Traditional vs. 60% Non-Traditional TV and Print Advertisement s on 1st November “Humor and Fantasy” instead of traditionally “no-nonsense” TV: Spots in Network Shows, Lifestyle Cable programs Print: Placed in business, lifestyle and Auto-buff magazines. Utilized to prime the launch of movie. Advertising Recall – 15% of TV viewer (50% higher than Mercedes E class) 3/8/2010

51. Dealer Promotion Objective To be integrated from outset To motivate dealers to spend resource on product to be launched after 6 months. How? Dealer Visits and Presentation Emphasized strategic importance Result Private Film Screening Cocktail Receptions Circulated the Cars for Display Merchandise e.g. Bond License plate These generated publicity in media 3/8/2010

52. Challenges For Phase – II How To Sustain The Interest? How To Convert Interest Into Order? 3/8/2010

53. Infatuated Customers Leaves Customer in Fragile Stage Exposure Fast and Emotional Response Requires Reinforcement Customer May Become Missionary Purchase 3/8/2010

54. From Excitement to Sale Point of “infatuation” Desired End-State: Purchase Possible End-State: Brand forgotten Time Phase I Phase II Excitement Generating excitement, buzz, visibility 3/8/2010

55. How To Sustain Interest? Maintain the taste of infatuation Contacts through mails, phone etc. Plan dates Demo rides Win hearts Progress updates to increase anticipation 3/8/2010

56. How To Convert Interest Into Orders? Stay committed Deliver the product on time Build support system Expand dealer network Get married Convert purchase decision into a relationship Be caring and understanding Provide affectionate post purchase support 3/8/2010

57. Critical Analysis 3/8/2010

58. Was Phase 1 of Z3 Launch Successful? 3/8/2010

59. Was Phase 1 of Z3 Launch Successful? 3/8/2010

61. Else it may become traditional

62. And lose the infatuating charm

63. Would they find such a combination again?

64. Successful Bond movie with new hero?

65. Will that be successful again? 3/8/2010

66. Is NTM Good For All Products? Good for High involvement products & emotional purchase Ancillary / Support products with less risk Target defined in psychographic segment Excitement generation Intensely competitive with high ad clutter But Unpredictable and Risky Measurement system not defined 3/8/2010

67. Open Questions.. What else could BMW do within NTM framework? Why didn’t BMW launch Z3 in auto-show in Detroit? Why did bike market decline? Why didn’t BMW target that market? How can we develop a system to measure effectiveness of NTM? 3/8/2010

68. Thank You! 3/8/2010