BMW Z3 From the Consumer\'s

BMW Z3

From the consumer's perspective, the launch of the Z3 was successful for a number of reasons. One is that the car was effectively endorsed by James Bond, which gave the vehicle significant cachet. Yet, the car was modestly priced. The James Bond association allowed a low-priced roadster to have significant aspirational value. Consumers responded well to the unconventional promotions as well. Most automotive launches are relatively dry events, whereas this one had strong impact. The result was that the Z3 launch was able to generate significant word of mouth. Combined with a strong product that was priced within reach of the mass market, the launch was successful with consumers.

From my perspective, the launch was successful not only because it was able to generate strong word-of-mouth but also because the tactics they took were highly congruent with one another. For example, BMW realized that the Z3 appealed more to a psychographic than a demographic. Therefore, they tailored the launch campaign away from traditional, demographic-driven media towards media that reached more specifically their target psychographic. The company also succeeded because it successfully identified and reach the early adopters, who were responsible for significant word of mouth. Further, the campaign was structured in such a way that the word-of-mouth built gradually, but powerfully, so that by the time the Z3 was launched, demand outstripped supply. This only added to the demand for the vehicle since it could then add exclusivity to its list of desirable traits.

2) the promotional messages that were sent during the launch were excellent. This car was intended to move into a slightly more mass market pocket than most roadsters. As such, the car was an aspirational product rather than a true luxury product. The James Bond tie-in ensured that this message was received strongly by the target audience. The Nieman Marcus promotion and Central Park promotion strongly reinforced this message. Everything was tied to the Bond promotion and all supported the aspirational message, including the product itself.

In terms of distribution, the company knew that it was going to need to rejuvenate dealer interest in BMW, given that they had just made a $600 million investment in the Spartanburg plant. Thus, the company's message to the dealers during the launch promotions was also very well played. They demonstrated the confidence of a James Bond in selling the car to the dealers, and ultimately this allowed them to have a successful launch.