Bmw Films
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BMW Films
Case Summary
In the early 1990s BMW was in trouble, so much trouble that rumors of BMW withdrawing all together from the US swirled about the automotive community. The ride on top of the luxury car market from the 1980s was over, Lexus had taken over the top spot and other Japanese manufacturers where close behind. These Japanese cars had superior quality and durability, they were backed by a more exclusive dealer net work and offered service at a substantially lower price point then BMW. The situation required action by BMW in the from of the following:
Release of the completely redesigned 325
Release of the 740i with a V8 engine
Aggressive pricing on the two models (maintaining the 10-15% premium over the Japanese brands)
Reorganized dealer network – DOS (Dealer Operating System)
Release of the Z3
These actions coupled with continued research and technological improvements to the vehicles and features launched BMW back toward the top of the luxury market.
SWOT
Strengths:
Core Product Lines
New product releases (325, 750)
New product lines (6 series)
Consumer Reaction and “Buzz” around the 5 films
Media Reaction to films
Excellent balance of prestige and performance
Display of vehicle performance in films
Unique Customer loyalty
Great product structure to “up sell” customers from one car to