Launching The Bmw Z3 Roadster Essay Example

with additional immediate and long-term difficulties. The company has evaluated its aims and objectives for introducing the Z3 roadster, the market position of its brand, ongoing launch endeavors, competition from emerging competitors, and the impact of its dealerships on overall performance. Despite devoting a significant amount of effort and resources to guarantee a prosperous Z3 launch, certain problems were overlooked. The case emphasizes BMW's aspiration to establish itself as a worldwide corporation.

BMW, a major car company, must adopt this strategy to stay competitive in today's market while deviating from its German roots. BMW cars are closely linked with German automobiles like Ferrari is tied to Italian cars. It is vital for BMW to carefully assess the potential challenges that may arise from manufacturing their vehicles in the United States. Producing cars at the Spartanburg plant could create perception issues regarding quality among future consumers as it contradicts the current image of German engineering and the belief that they are constructed by "mythical little creatures in the Bavarian woods". Ultimately, this could severely damage BMW's reputation.

For BMW to achieve future success in the automobile market, it is vital for the company to change its manufacturing focus from Germany to BMW. This shift will aid in setting the company apart from competitors. The Spartanburg factory, currently dealing with challenges like high production capacity and launching a new vehicle with high expectations, will need oversight from top BMW factory managers. To guarantee success, having an experienced management team overseeing this project is crucial. A seamless introduction of the Z3 roadster will address concerns among potential consumers and facilitate the transition from "made in Germany" to "made by BMW."

The

difficult beginning of the Spartanburg plant may have negative consequences for both the sales of the Z3 and BMW's future. The plant can manufacture 300 vehicles per day or 109,500 vehicles annually, which is enough to meet the demand for the Z3. However, if there is an increase in demand for BMW's current lineup, the plant may face difficulties. Currently, BMW sells 94,500 vehicles from its lineup in the United States. By combining the Z3 roadster with its already pre-booked orders of 9,000 by December 1995 (four months ahead of its official release), we expect that pre-booked orders will reach 9,000 vehicles during phase one. As we approach showcasing the Z3 in showrooms, it becomes more likely that customers will be interested in purchasing a vehicle.

Our analysis suggests that BMW is expected to sell around 25,000 Z3 vehicles in the coming year, surpassing the current capacity of the Spartanburg plant. This facility currently accommodates a total of 94,500 vehicles. If demand for BMW cars continues growing at its current rate (averaging 12.8% annually from 1992 to 1995), it could hinder BMW's ability to fully utilize the potential and cost savings achieved by relocating to the United States.

The roadster market is presently dominated by BMW as they hold a monopoly. However, Porsche and Mercedes are preparing to enter this specialized market with their own offerings. These new models from Porsche and Mercedes will be positioned as high-end vehicles with higher price points. Consequently, BMW's strategy of offering lower prices may inadvertently harm its reputation in the long term by allowing Mercedes and Porsche roadsters to be perceived as superior in terms of quality and performance.

BMW's current

position in the luxury-performance market is not aligned with its middle market positioning, as indicated by the Z3. This could also affect the perceived quality of their vehicles produced at the Spartanburg plant. However, the wide appeal of the Z3 roadster should enable it to enter a higher-priced segment with improved product attributes in the future. Additionally, an M version could be launched to complement BMW's existing lineup, featuring notable enhancements in performance and aesthetics.

The dealers will play a crucial role in the overall marketing strategy. BMW has requested that each dealer bear significant expenses for facility renovations and training. These enhancements to the dealer experience will directly contribute to BMW's goal of achieving a comprehensive brand experience. As competition intensifies in the near future, BMW must persist in prioritizing dealership training and incentives in order to guarantee future success. Objective: The launch of the BMW Z3 roadster in conjunction with the inauguration of the Spartanburg plant will profoundly impact BMW's performance in the US market.

The introduction of this vehicle will have a significant impact on the industry, affecting the desirability of other automobile manufacturers introducing a similar roadster.

Alternatives

Short term alternative 1

Invite major television programs and journalists from prestigious newspapers such as the Wall Street Journal, the New York Times, and USA Today to visit the new plant. Offer them guided tours showcasing different stages of manufacturing the BMW Z3. This visit will serve as an incentive for them to write about the Roadster and give customers an in-depth look at the car during its initial launch phase.

Shot term alternative 2

Partner with popular TV programs and car magazines to launch a variety of documentaries that

provide a comprehensive and historical advertising overview.

Showing the German brand made car history and the German knowledge that will be used in the American plant to produce an American made car with a German quality.

Short term alternative 3

Associate the dealers with the opening of the plant and the launch of the first car, by organizing a large party for them in the new plan. Introducing the new location, where the BMW will be manufactured and showing them the commitment that BMW has on the American market, the dealers would understand the role that they have in the launching process so that they can get more involved and more enthusiastic in presenting the car to the customer which will help make the diffusion of the Z3 more effective and easy.

Long term alternative 1

Create a BMW club that will start a Z3 roadster car series races all over the country and support members that want to take part into existing sport car races. The club will play a role in building a strong relationship between BMW and its clients and it will enforce the BMW image as the "the ultimate driving machine".

Long term alternative 2

Launch a nation wide advertising campaign on televisions, radio station and big journals that present the different series of cars that BMW will launch in the near future.

Cars in the BMW lineup, including the 3 series and upgraded roadster Z3, aim to capitalize on customer enthusiasm for the Z3 and extend it to other products.

Long term alternative 3

One approach is to explore new technologies

that differentiate BMW's products from competitors. These technologies should create competitive advantages and convey an image of highly sporty cars with powerful engines that are also environmentally friendly. Additionally, BMW should identify potential strategic locations for manufacturing plants to meet future demand and establish a global brand presence.

Strategic Recommendation

One strategy is to include mass media coverage during the opening of the Spartanburg plant. This can involve inviting television stations, magazines, newspaper reporters, and other media outlets to attend the grand opening event.

There is a diverse selection of BMW Z3's available for use at the plant. To enhance the excitement of the grand opening, it should be transformed into a weekend event. On Friday, genuine investors should be invited to visit the plant and enjoy test driving the car. Then, on Saturday, a press conference can be organized to exhibit the vehicle to media representatives, with the event being broadcasted.

There will be plant and assembly line tours on Sunday to introduce everyone to the new plant and the Z3. This serves two purposes: promoting both the Spartanburg plant and the introduction of the Z3. The success of a modern business goes beyond economic factors. It is important to achieve a harmonious balance between economic, environmental, and social objectives. This triple bottom line of sustainability forms the foundation for the company's future prosperity.

In order to gain a competitive advantage and be responsible corporate citizens, companies must prioritize sustainability. This is crucial for the future viability of the economy, society, and political decision-makers. To ensure profitability and longevity, companies need to address current and future economic, social, and

environmental challenges while staying viable in the future. By doing so, they can create value and uphold their principles.

A premium manufacturer must prioritize sustainability management to differentiate themselves from competitors. This is crucial for BMW, as they need to develop and implement new technologies to protect the environment and enhance fuel efficiency. By doing so, BMW can establish a unique position for the Z3 model compared to other vehicles. Even though the Z3 currently has no direct competition, emphasizing environmental protection will greatly benefit BMW's advertising and marketing campaigns for their upcoming 3, 5, and 7 series models. This aligns with BMW's long-term goal of global expansion.

BMW, being a global company, is committed to worldwide social, political, and ecological initiatives. This commitment extends beyond its products and production. The collaboration between the industry and government towards common objectives can form a powerful alliance. BMW's main goals are to reduce fuel consumption and develop competitive, sustainable products. However, BMW firmly believes in creating vehicles that offer clear customer benefits. For instance, their aim is to manufacture cars that achieve almost 80 miles per gallon or super-efficient vehicles capable of traveling over 200 miles on one gallon of gasoline. Furthermore, BMW does not view electric vehicles based on fuel cell technology as a long-term solution because of their technical drawbacks. The significance of mobility in our world is undeniable.

In today's world, mobility is of utmost importance for life, evolution, and economic growth. It has become even more crucial for our basic needs. BMW must redefine mobility in the twenty-first century to ensure personal independence. However, this pursuit has led to negative outcomes like depleting Earth's oil reserves

and causing environmental harm due to excessive CO2 emissions. Hence, investing in alternative fuel technologies becomes vital in order to pave the way for the future. Initiating research on these technologies today holds great significance. By implementing this strategic recommendation, not only will BMW's Spartanburg plant reap benefits but also the entire company.

If BMW can demonstrate to its consumers that they have successfully mitigated environmental issues, they can leverage this sustainable advantage for upcoming marketing and advertising endeavors. We can envision the catchphrase now... "BMW - The former economic and social pioneer... The forthcoming environmental trailblazer."