Automotive Anaylsis

`BMW MARKETING INNOVATION

Since the competition started to imitate BMW's advertising messages of outstanding quality, BMW decided to come up with a unique way of reaching its target audience. The company did so by hiring Fallon Worldwide, and advertisement agency based in Minneapolis, MN, to come up with a new campaign. Fallon developed the concept "The Hire" series. Fallon's responsibility also included the way in which these movies were to be delivered to BMW's target audience. It was also questionable whether the campaign should be the same throughout the world, or if it should be localized to adapt to language and consumer taste differences. In order to attract highly recognized directors, as well as actors, BMW was willing to spend a large amount of money.

In addition to coming up with a unique advertising campaign, BMW also wanted to change their image. One of the goals was to make BMW look, not only cool, but likeable, which the brand needs to do to combat negative perceptions some people have based on old associations with the 80's style yuppie arrogance.

Company Profile

BMW (Bayerische Motoren Werke Aktiengesellschaft) was founded in 1916 and has been publicly traded since 1969. The company produces, and markets, a varied range of higher end sporty cars and motorcycles. BMW has also manufactured the first passenger car running on hydrogen ready for common use, although the production figures are limited by the lack of a respective filling station net. In addition to cars and motorcycles, BMW operates an aircraft engine division under the brand name of Rolls Royce.

The company has worldwide subsidiaries and manufacturing plants in Germany, Austria, the UK, the USA, Mexico, Brazil, South Africa, Egypt, Thailand, Malaysia, Indonesia, the Philippines and Vietnam. The company also operates its own financing company, which offers financing for vehicles. Automobiles accounted for 78% of 2000 revenues; vehicle finance leasing, 18%; motorcycles, 3% and other, 1%.

BMW's Revenue Sources

Marketing Overview

The majority of BMW's success is attributed to the development of a consistent marketing policy, the 'market niche' strategy. The company has built its brand on four core values, which are:

Technology

Quality

Performance

Exclusivity

BMW has maintained these core values since the company's inception. Coupled with WCRS (BMW's advertising agency since 1979), the company has adopted a consistent advertising strategy. In addition to the message of these values being portrayed in advertising campaigns, the company explicitly expresses one or more of these values in all BMW advertisements. However, it is important to point out that BMW also relies on its sensitively to the environment, which is clearly seen by how the company's advertisements evolved in response to economic, environmental and competitive changes.

This design philosophy, which runs through every BMW, has been communicated through a number of TV and print ads. The brand image has been built up by using over 300 color press advertisements, and more recently through a total of 64 different television commercials. Throughout this campaign, BMW has remained consistent to its beliefs of focusing on the substance of the cars themselves.

In addition to the high profile national color press and television advertising, individual dealers are encouraged to run their own local campaigns. Local press, radio and bus advertisements are all available from BMW dealer marketing. Additionally, brochures, price lists and dealership point-of-sale materials are made accessible through the corporate office. BMW encourages its dealers to make use of these services. Providing the dealers with a central source for advertising, BMW ensures that all communications remain standardized as well as maintaining BMW's brand values.

BMW has embarked on a global advertising campaign. What differentiates this promotion is the fact that it remains consistent throughout the company's international campaign across the European, USA, Asia, South Africa and the Middle East markets. In over 15 countries there will be:

TV spots

Print advertisements

Mega-posters

Radio spots

Events

In all three James Bond films BMW, MGM and EON Productions Ltd worked together on a cross promotion project. This was accomplished worldwide with TV commercials, print ads as well as displays in BMW dealer showrooms.

BMW Film

The best new film series, by the most cutting-edge directors, are not playing at the local theater. Instead, these films are accessible through your home computer, as well as your local BMW dealership.

Since its launch at BMWFilms.com, "The Hire" (a film series consisting of five different short films) has been singled out as the first high profile, big-budget, celebrity-laden Internet marriage of advertising and entertainment. It has been reviewed, scrutinized, deconstructed and cited as evidence of the perilous future for traditional advertising. New York Times film critic (Elvis Mitchell) called the series "a marriage of commerce and creativity, straddling the ever-dwindling line between arts and merchandising." BMWFilms is simply the latest and possibly the hippest Web site to make use of streaming video in order to lure prospective customers. Fast cars, mysterious passengers, Buddhist monks, rock superstars, and sinister enemies are all part of the film series, which are presented in installments by some of Hollywood's top directors. These films are being advertised on television the same way that movie trailers are advertised; the difference is that instead of the catch phrase "coming soon to a theater near you," this catch phrase reads "see it only on BMWFilms.com."

Actor Clive Owen (star of the acclaimed British film "Croupier" and, in the opinion of his growing legion of fans, the next James Bond) is "The Hire" in the series title, a skilled mercenary driver who seems to specialize in risky assignments. While he is certainly a smooth operator behind the wheel (very "James Bond" like), it is always the Ultimate Driving