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Bmw Case

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The Harvard Business School case from 2002 shows BMW attempting to focus purely on branding BMW in order to surpass competition in marketing innovation, gain market share and reach new sales goals of an additional 40% in the US. This focus on branding resulted in the production of 5 short films under the name BMWFilms that attracted the younger generation and neglected the current consumers. BMW should supplement this with advertising focused on their current consumer as well as additional customer service benefits for their current consumers who could progress from the 3 Series to 5 Series to 7 Series if properly maintained. Additionally, BMW in efforts to differentiate itself with seven new series in 2002 may potentially cannibalize the brand and force entrance into the mass-market. In order to avoid this issue BMW should focus on differentiating series and cars models from each other to better target their customers.
In 2000, BMW had reached new record high sales in the United States after recovering from a record low in 1992. Due to this new high of sales along with no new car production for the next six months, there was an opportunity for branding BMW’s name specifically to differentiate it from the competition. This opportunity led to the creation of five short films that were only available online at BWMFilms.com.
BMW hired Clive Owen as well as A-list producers to create these 5 short films that showcased BMW cars as supporting actors in dramatic plots. These films neglected the BMW customer profile while concurrently attracting the younger potential consumers. While this was effective in increasing share of mind in the youth, it did not focus on maintaining the current BMW consumer. Additionally, these films came at a great cost to BMW, spending approximately $15 million on the films, which comes out to about 25% of their media-spending budget. And...

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