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Copy of Case Analysis : BMW Films

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Mahmoud Sohrabi

on 13 August 2013

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Transcript of Copy of Case Analysis : BMW Films

Case Analysis : BMW Films
Scott Fortune
Sarah Rensing
Eric Land
Zhining Hu
Zhe Huang
Team 5
Brief History Timeline
Reinvigorating Itself in North America
The Targeted Consumer Segment
Problem Statement
Problem Statement Cont.
The BMW Film
New Problems and Challenges
New Problems and Challenges Cont.
Possible Solution 1
Possible Solution 2
Possible Solution 3
Possible Solution 4
Our Chosen Solution
--- Make Films available to a wider audience
Release them to theaters to be played alongside trailers
Make DVD’s available at dealership
 More people and demographics are reached
 Make full-length versions
 BMW already knows that people enjoy the films
 May target the wrong people
 Lose the call to action required for internet viewing
 Limited amount of extra success from using the same material
Pushing the product out to the public will cause BMW to lose loyal customers who like to feel superior

 High chance of good ratings, people requested more videos
 Build upon momentum created from first campaign
 Create a “collectors set” and make this campaign a classic
 Would cost another $15 million
 Possibility of people seeing it as unoriginal
 Diminishing returns

Develop more short films
“Milk” the existing films
Create full-length feature
Movie that will air in theaters across the country
 Huge production would really put BMW’s name out
 Possibility of profits from movie sales
 Very expensive, BMW does not have a huge marketing budget
 Questionable how many people would pay to see the movie
Extensive exposure to the public will cause BMW to lose loyal customers who like to feel superior

Move on to the next advertising campaign

New ideas eliminate possibility of diminishing returns
Avoids having to deal with copycat ideas
People will be disappointed that BMW left campaign at only 5 films
Throwing out an already successful idea
Next idea may not be as successful, or may even tank
Make no more moves on BMW Flims
Over 90% of viewers requested more short films

Release quickly to take advantage of momentum behind the first 5 films
---Avoid trying to “repeat” the success and
instead try to continue to build upon the
original films
---Must release before any copycat films hit the

Option 2: Develop more short films
• Stop at 10 films
---Budget concerns
---$15 million
---Avoid the effect of diminishing returns

• Release the film online and as a “Collectors’ Set”
---Establish the film as a classic

• Aviod advertising the films through public press
---Have to let loyal customer still feel the superiority of owning a BMW

Chosen solution Cont.
Pragmatism began replacing the conspicuous consumption patterns
Faced fresh competition from Japan due to the introduction of Acura, Lexus and Infiniti
Japanese cars offered superior quality, reliability, and service at lower price points than BMW

Competition from Japanese luxury cars
Limited marketing budget
 BMW has a strong brand image, but relatively small market share
 They have a huge number of models but relatively modest budgets to advertise all of them
 A number of companies – Audi, Mitsubishi – all started running campaigns similar to BMW’s advertisement, which focused on the “responsive performance” theme

BMW determined to go with a non-traditional marketing campaign to have maximum impact. The development of BMW Films is the best example of this type of campaign.
BMW needs to continue to build the next generation of BMW buyers and the brand needs to be seen as relevant and cutting edge

The company has limited marketing dollars and will not be satisfied with diminishing returns
---In 2001, BMW spent $62.4 million on media expenditures, a third of what Lexus spent

Consumer audience is elusive and expects to be impressed within a limited amount of leisure time. BMW needs an outstanding marketing encore to capture the attention of the key audience

The next marketing campaign must continue to get shoppers to "drive" themselves into the brand

BMW stands for Bayeriche Motoren Werke

Founded as an aircraft engine
Produced its 1st automobile
Late 1970s
One of the hottest luxury brands in North America
Sales rebound with promising future
Market shift &
Sales tumbled
Late 1980s
1972: The 5 series
BMW mid-range sedan
1975: The 3 series
BMW entry-level sedan
1977:The 7 series
BMW flagship sedan
BMW's target consumer was fundamentally different from its competitors in the luxury/performance category
Average of 46 years old
Median income of about $150,000
Well-educated, married, no children
Two-thirds Male
Willing to pay more for an absolutely perfect product, because being good isn't enough
Take driving as a form of personal pleasure
Very loyal
The introduction of a number of new models in its core Series
An aggressive pricing strategy
The reorganizaton of its dealer network

New brand image
--- Exciting, Edgier and more Youthful

85% of potential buyers of BMW use the internet to research cars
Change the market from a push to a pull strategy
Maintain the same high-end, luxury brand image to loyal customers
"Happiness isn't around the corner. It is the corner."
New Generation
Why does BMW want to produce the Films with no new products being launched over the next six months?
Full transcript