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Launching the BMW Z3 Roadster Case Solution

Solution Id Length Case Author Case Publisher
2578 2001 Words (9 Pages) Susan Fournier, Robert J. Dolan Harvard Business School : 597002
This solution includes: A Word File A Word File

The case is about BMW, which is a global company that produces luxury automobiles. To introduce the Z3 roadster the company used the car in one of James Bond's hit movies "Goldeneye". The case study focuses on the marketing plan that the company used for introducing the product for example how they set the preliminary marketing platform, as they considered Z3 to be a unique vehicle so they wanted to introduce it differently so they fixed the marketing element which was the placement in golden eye film. The company's final pre-launch plan was introduced, and the platforms that will program the launch were discussed for example Radio DJ program and Jay Leno's tonight show. The success that Phase I got was featured in the case that how people got crazy about the car and its pre-orders that were expected to be 5000 by the company raised to 9000. How the car was recognized in the market space by the film. The company now needs the interest and the hype to be sustained so the launch strategy of phase II is set for January.

Following questions are answered in this case study solution

  1. How is non-traditional marketing different from traditional marketing? 

  2. Why did BMW shift to non-traditional marketing tools for the launch of the Z3? What are the benefits and risks of non-traditional marketing? 

  3. Was the James Bond franchise a good choice for BMW (what do BMW and Bond have in common? How are they different?)? Can you think of any other potential choice? What was unique about the Z3 placement in “Golden eye”?

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

  5. Helmut Panke has engaged you as a consultant on the design of the Phase II plan. What specific objective(s) would you set? How would you achieve these objectives?

Case Analysis for Launching the BMW Z3 Roadster Case Solution

1. How is non-traditional marketing different from traditional marketing?

Advertising is among the most intuitive and powerful types of communication and activities used to persuade customers about the product and methods, ideas, or activities for their products. When we talk about the market, we must first talk about advertising. Branding is both a financial investment and an intangible return on investment for the firm. The best results are generally obtained through advertising to influence customer behaviour to fulfil the company's aims, such as raising consumer product awareness or sales. The ultimate objective is to increase sales and product profitability. Advertisement information is often paid for by industry sponsors and distributed through a range of media like newspapers, publications, radios, broadcasts, films, live performances, outdoor or direct mail, and other conventional platforms; or online media such as websites, games, and apps. However, not all marketing for products is successful. Advertisements that lack communication or communicate incorrect information also mislead customers and harm the brand image.

Traditional marketing is divided into four categories: broadcast (television commercials, movie theatre advertising, and radio advertisements); mail (letters and postcards mailed directly to consumers who live in the neighbourhood and inspect their mailbox once a week); print (advertisements in magazines, newspapers, and other printed materials); and telephone (direct sales calls). This marketing technique depended on conventional communication and was most effective in the previous century. Non-traditional marketing, on the other hand, is more appropriate for today's society and is spreading with the establishment of innovative technological and living styles. This method generates intangible and unexpected customer interests. For example, BMW advertises racing theme movies with their new type of sports car, while beer companies advertise on beer glass mats or beer glasses.

Looking at the Hierarchical of Impacts Model, we can see that non-traditional marketing focuses on consumer groups at the top of the pyramid because non-traditional marketing strategy emphasizes vision, creativity, and dedication. The percentage of potential consumers decreases as one moves up the hierarchy because the focus shifts to more action-oriented goals. The more expensive the items, the fewer clients we require to target. BMW, Mercedes Benz, Audi, and other luxury automakers, are only required to focus on medium and upper-income clients who are at the peak of the Pyramid of Effect Model. These are those consumers who require effective brand image persuasion and great brand loyalty.

2. Why did BMW shift to non-traditional marketing tools for the launch of the Z3? What are the benefits and risks of traditional marketing?

Traditional branding does provide a portion of the improvement for the BMW Z3 new launch because conventional branding advertising focuses on fantasy and fun, whereas non-traditional promotion strategy can generate a "buzz" with content delivery promotional communication and can customize pre-orders on the BMW official website. Another factor for conventional marketing's inadequacy is the 15% demonstrated advertisement recall by viewers with a TV and print branding. BMW can co-launch a product replacement with a new movie, such as a James Bond film or Jay Leno's Tonight Show, using non-traditional marketing.

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