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BMW Films Case Solution
BMW had gradually increased its worth over time and been able to attract thousands of customers all around the globe since 1916. Due to the deteriorating demand for this brand in North America, McDowell planned and launched a campaign by the name of BMW Films, where the cars were shown as characters of the movie rather than a glamorous object. With more than nine million reviews through their website, the position of the company started to become strong, and McDowell faced other decisions that can lead to results which are currently unpredictable. The current performance analysis of the campaign can help to decide whether further films should be made, or prior ones should be focused upon to expand the customer base.
Following questions are answered in this case study solution:
Was the BMWFilms idea a good one? How successful has the campaign been?
What was the motivation behind the idea? Who was the target market for the BMWFilms campaign?
Describe the typical North American BMW customer. How does BMW’s U.S. customer base compare to that of its competitors?
How healthy is the BMW brand in North America, relative to previous years? What (if any) are the current weaknesses in the BMW brand? What do you make of BMW’s growth strategy?
What should McDowell do? Which option should he pick?
BMW Films Case Analysis
1. Was the BMW Films idea a good one? How successful has the campaign been?
BMW Films was an innovative way to grab the attention of people in an entertaining yet informative manner, aiming to make people remember the series even in the long run. It is different from other traditional forms of advertisements, mainly because of the mechanisms involved in promoting the BMW cars. Instead of highlighting the features of the cars and aiming to attract people by showing off the glamorous cars and collective characteristics, a film was created to portray the car as a character of the movie, depicting it to be something which is as alive as an individual itself. The success of the campaign can be analyzed through the reviews that it received from different people and fans. It had decided to use its official website to increase traffic and find out the extent to which people would be attracted towards this idea. The BMW Films got around 9 million reviews with positive responses from people around the world.
2. What was the motivation behind the idea? Who was the target market for the BMW Films campaign?
There are different reasons, which streamed together to create the idea of BMW films. Being established in 1916, the company was able to pave its way to a height which was, at that time, unachievable by the competitors of BMW. It provided it with abundant resources and funds to come up with and apply new ideas to promote their products and services which are different from the ones being used. At one point, the number of cars sold to local and international customers increased to 800,000 while the demand for motorcycles increased to 74,000. The strength of the company which continued till the year 2000 allowed it to move ahead with its unique idea of BMW films. The target market for potential buyers of BMW through its campaign were those individuals who were educated, sophisticated and smart people who wished to enjoy their experience of driving. The mean age of the customers was around 46 years with an income of around $150,000. A large portion was married and literate but had no children while two thirds of them were male. Furthermore, these individuals also comprised of those who had been successful at their initial phase of professional life and had a sporting spirit, enjoying the minute details of the BMW cars and its experience.
3. Describe the typical North American BMW customer. How does BMW’s U.S. customer base compare to that of its competitors?
There were certain characteristics of a typical customer within North America who wished to buy a BMW car. Majority of the individuals, within and outside North America were aware of the fact that this was a luxurious car which can enhance their style and classiness if they are able to buy it. The average customer in North America was an educated individual who wanted to get hold of stylish products to differentiate themselves from others; this was the changing trend that was taking place in North America. It was mainly due to this reason that the customers belonging to this region were professionals belonging to urban class who were well aware of the trend and styles pertaining to luxurious items, including the BMW cars which were already getting popular as lavish cars, which can capture the attention of people. Within United States, the customers were already aware of this car, without the threat of informing them further through additional advertisement processes. Majority of them were individuals who were settled in their professional lives and were fairly educated. The competitor’s customer base was relatively conservative, and their priority was luxury and style rather than performance or operations of the car such as that of Mercedes-Benz and Jaguar. On the other hand, customers mainly preferred Volvo and Saab because they were considered to be safe and secure for the family members involved.
4. How healthy is the BMW brand in North America, relative to previous years? What (if any) are the current weaknesses in the BMW brand? What do you make of BMW’s growth strategy?
The persistently increasing demand for BMW in North America suddenly can to a halt in mid and late 1970’s when it was labeled as being outdated. This factor, coupled with the improved performance and quality of the automobiles manufactured and sold by Japan increased the level of competition substantially, and it was soon rumored that the good days for BMW were over. With the success of this campaign in North America, not only is the position of BMW cars and motorcycles restored, but their demand is expected to increase in coming years, as well. This shows that the brand is relatively healthy and prospering in North America as compared to its situation in previous years. The current weakness, which may affect their growth potential, can be sudden switch in the priorities of people if more firms enter the market to compete against BMW.
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