HBS CASE: BMW FILMS
1. How fit is the BMW brand at the time of the case? Are there any reasons to anticipate undesirable financial performance in the future?
How fit is BMW at the time of the case?
Justify: BMW is very fit at the time of the case, which was August 2001.
Verify: During the period from 1996~2001, BMW sales rebounded and eventually reached record levels in the US
Quantify: Compared to their slump around 1991 where BMW sold around 55,000 cars, they were able to sell 190,000 in 2001 in the US
Are there any reasons to anticipate undesirable financial performance in the future?
1. Because BMW’s US unit sales have been increased since 1991.
2. The ...view middle of the document...
They tend to be very active, and engaged in sports in their daily routine. They have an eye for details and care about how things are assembled, and are willing to pay premium for the best product, opposed to a good product. Technology is also important to a BMW customer.
BMW products fulfill his/her need by providing a product that not only has the premium image, but the perfect product, that is superior both in interior and exterior in quality. They provide a surrounding that enables their customer to take complete control of while spending time in their car. BMW also provides customers were the newest technology as well.
3. Using research findings presented in the exhibits (especially Exhibit 11), perform a critical evaluation of the effectiveness of BMW films in attracting potential customers to the brand.
Sender: BMW through BMW Films
Message: The image of BMW cars in action using real directors, actors, and an actual plot.
Media: Online only through the BMW Films website
Receiver: People that had heard about the short films, or people who spend time on online media outlets such as MySpace, FB and YouTube
Response: Very innovative, flashy, cool. Wants to tell others about the short films
Feedback: Over 90% of viewers that provided feedback requested more films and/or full movies
Noise: (1) The consumer is not fully devoted to watching the whole 9 minute clip (2) The consumer does not understand how to access the movies since they were only available online
Through this list, I realized that there could be a flaw in BMW’s clips if they were to be used to attracting potential customers.
First, when viewing the “Receiver” section, I thought of internet in 2001, and who used it the most for leisure at the time. MySpace was still popular and I am not even sure if FB and YouTube were around. There were not very many online media outlets like current times in 2014, and online media outlets were not as popular. Adults did not usually partake in MySpace, and the people spending time surfing the internet looking for leisure tended to be kids. “Googleing” everything was not popular as it is today since smartphones were not around.
With that being said, I think that a large percentage of the BMW film viewers were teenagers with spare time that watched and shared the film because they though it was cool, and did not have the intention or the means of purchasing a BMW. The actual BMW consumers may not have been aware that such movie exists, and most older customers already owning a BMW would not be impressed by some mini-action flick of BMW doing stunts in a short film.
4. Given that the BMW’s lineup targets various segments differing in terms of income, age, and life stage, do you think the BMW films might alienate the company’s most profitable segment while attempting to lure younger prospective customers? Why and why not?
Verify: It alienates the older segments, because they tend to not be tech-savy,...