What Is the Strategic Significance of the Z3 Launch for Bmw?
What is the strategic significance of the Z3 launch for BMW?
In 1996, BMW had successfully placed its new Z3 Roadster in the new James Bond movie “GoldenEye” as Phase I of its marketing plan. However, the timing of Phase II was crucial. It had to fall in line with other important events: the redesigned 5-series launch in April and the Olympic Torch Relay 5-series event in June.
While the 5-Series events were a factor in the launch, the Z3 launch itself was of greater importance as it would influence the entirety of BMW’s operations in the United States. After recovering from its declining sales in 1992, BMW had repositioned its brand as the “Ultimate Driving Machine”. The company’s strategic mission was to “provide the world with vehicles that would be the best in their class”. This included achieving a unit sales number of 100,000(Pg. 2) in the United States, in order to be classified with other major players in the global automotive market and to operate at an efficient scale. Spartanburg, South Carolina was chosen as the manufacturing location for strategically significant reasons.
First, to stimulate as well as motivate the dealer network to qualify for the Z3 roadster by adopting higher standards that fell in line with the corporate goal of being “the best” (Pg. 2). Second, to ensure a sufficient enough order bank so that the new Spartanburg plant could build to the specifications of BMW’s customers.
Expansion into youthful segments seemed the most reassuring way of increasing sales numbers. This could be achieved by updating the company image to “stylish and fun to drive” (Pg. 2) according to recommendations. BMW planned to address the recommendation by evoking similar feels, emotions and fantasies as motorcycles had in the past. The Z3 roadster was the product of this plan as it fit with the corporate goal of being the best. As the Z3