Correction bmw movies.ppt

BMW Movies

Philippe DUBOST

January 2014

January 2014

Correction BMW Movies 

AGENDA 

 Introduction  Introductio n : Clive Clive Owen the the Hire

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 Synopsis : What is the case about

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 Elements of discussion

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 Company analysis

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Philippe DUBOST

January 2014

Product line and customer base

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 The competitive set

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 Company analysis : general conclusions

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 Goals of the BMW Films campaign

agenda

Correction BMW Movies 

INTRODUCTION

http://www.bmworld.fr/videos/index.html Philippe DUBOST

January 2014

Correction BMW Movies 

INTRODUCTION

Ambush Philippe DUBOST

January 2014

The follow

Powder keg

Chosen

Star

Correction BMW Movies 

Synopsis 

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Philippe DUBOST

January 2014

What is the case about ?  In August August 2001, Jim Mc Dowell , VIP of marketing at BMW North America , is debating how to respond to the success of the company‟s latest marketing campaign , BMW Films The campaign features five short films ( collected title the hire ) that the viewers can access by going online to bmwfilms.com bmw films.com To date , response to the the films , which were directed directed by a cadre of top Hollywood directors , has been overwhelmingly positive .

Correction BMW Movies 

Synopsis 

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What is the case about ?  The question facing McDowell now is , what should BMW do for an encore ? McDowell is currently considering four options 

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Philippe DUBOST

January 2014

 To milk the five films by making them available to a wider  To w ider audience To develop more install installments ments of “ the hire “ series

 To develop develop a full length feature that would w ould play in movie theatres around the country To do nothing and simply move on to the next idea

Correction BMW Movies 

Elements of discussion: 

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Philippe DUBOST

January 2014

 Was the BMW films a good idea ? How successful has the campaign been?  What was the motivation behind the idea ? Who was the target market for the BMW Films campaign ? How is the typical North American American BMW Customer ? How doe BMW us Customer base compare to that of its competitors ? How healthy is the BMW Brand in North America , relative to previous years ? What are the current weaknesses in the BMW brand . How to establish a BMW Growth strategy ?  What should McDowell do ? Which options should he pick ?

Correction BMW Movies 

Company Sales history in the USA:

Philippe DUBOST

January 2014

Correction BMW Movies 

Company analysis : 

At the time the case is set , BMWNA is one of the strongest luxury brands in the USA 

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Philippe DUBOST

January 2014

 Sales momentum : the highest in the company history , topping 213 000 units in the US alone. BMW has even surpassed Mercedes Benz to become N°2 luxury brand behind Lexus ( 224 000 units). BMW share is higher than ever amongst customers for luxury cars : 16% of luxury car have a stated preference for BMW vs 11% for Mercedes and Luxus.

Correction BMW Movies 

Company analysis : 

At the time the case is set , BMWNA is one of the strongest luxury brands in the USA 

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Philippe DUBOST

January 2014

 – prestige  Brand credibility : The BMW brand is positioned on a dual benefit  Brand benefit – and performance , and the brand has acquired significant credibility along both of theses dimensions . Its status has been cemented as a luxury brand through its “ ultimate Driving Machine “campaign , which has consistently conveyed images of affluence, style and prestige while its performance reputation has been established through an emphasis on superior handing , technological innovation and German engineering http://tier10lab.com/2013/09/26/throwback-thursday-tbt-bmw-ultimate-driving-machine/

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http://www.youtube.com/watch?v=EvNTeflUMlc

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http://www.youtube.com/watch?v=XTu2PpfzFsI

Correction BMW Movies 

Company analysis : 

At the time the case is set , BMWNA is one of the strongest luxury brands in the USA 

Philippe DUBOST

January 2014

 Product momentum : Over the past few tears , BMWNA has launched several new , eye catching models , including the flashy Z3 roadster , the high performance M roadster , the pricey Z8 roadster and the X5 sport utility vehicle. This expansion expansion of the the BMW product line has generated significant significant buzz for the German car maker , fueling the perception that BMW produces the world‟s most exciting luxury cars and is a leading leading innovator in product product design .

Correction BMW Movies 

Company analysis : 

At the time the case is set , BMWNA is one of the strongest luxury brands in the USA 

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January 2014

http://www.youtube.com/watch?v=0AQwyily4Fc

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http://www.youtube.com/watch?v=vHzgcYFhK5k

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http://www.youtube.com/watch?v=Gs-KRSWwE3o

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Philippe DUBOST

 Marketing momentum : The company has earned a reputation for innovative marketing , largely as a result of its award winning launch campaign for the Z3 roadster which incorporated a number of non traditional elements including a high profile product placement in the James bond film Golden eye .

http://www.youtube.com/watch?v=lxIVo-JI7gU

Correction BMW Movies 

Product line and Customer base Product line : the core of the BMW line is its Sedans, with w ith three distinct series

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Series 3 , 5 , 7

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With an inverse relationship between margins and volume across the series

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The 3 series is BMW‟s mother , lowest margin sedan but top selling series

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 The 7 series is the highest margin vehicle , but less than 20000 s units a year in North America.

Customer base : Although BMW customers may share a number of psychographic and lifestyle characteristics , the company customer base clearly contains some demographic sub segments

Philippe DUBOST

January 2014

Correction BMW Movies 

Product line and Customer base 

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Customer base : cont‟d  The average customer is 46 years old , there is quite a bit of spread around this number ; over half (53%) of BMW customers are in the late 40s, 50s,60s; this includes 8% who are over the age of 65  Although the median income level of a BMW customer is 143 k$ a quarter of its  Although customers (23%) have incomes below 100 k$ and a quarter have income levels above 200 k$ Although the average BMW customer has no children , about a third ( 32%) do have children below the age of 18 

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Philippe DUBOST

January 2014

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 3 Series : under 35 single single , no kids , income