Why Did Bmw Launch the Films Campaign? What Was the Motivation?

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10 years. At the time of the case, it is difficult to determine and measure the level of efficacy of the campaign.

BMW could also develop more films. However, this option may also be riskier, albeit it’s ability to establish an even firmer sense of brand loyalty with the current viewers (the generation that will move up BMW’s product ladder as their purchasing ability increases). Though consumers responded well to The Hire, part of its success was due to the novelty of the campaign. BMW already learned that product placement in Bond movies worked phenomenally well the first time, but not as well the second time around. The risk with this option would be the sheer cost of creating the films, buying the talent, etc., while the viewership wouldn’t increase much--the same segment would likely be the viewers of the second series of films, “90% of the visitors to the BMW Films Website were requesting additional films” (p. 9). However, acquiring new viewers of the ads could result in increased costs. BMW took another risk in allowing the film directors complete creative freedom. This could have been a double-edged sword in the sense that the films are provocative with potentially offensive storylines and content. However, younger generation consumers may appreciate the creative freedom BMW gave the film directors.

Is there any weakness in the BMW brand that the company is trying to address or is the brand basically healthy?

BMW was at a high point at the time of considering the campaign, riding off the momentum of new products and marketing. Exhibit 1 seems to suggest that BMW may be due for another drop, or dip in sales. This pattern could be due to the fact that while customers tend to be brand loyal and repurchase another BMW at some other point in their lives, after their first BMW, they sometimes purchase another brand for their second car as their life needs change (i.e., consumers with children need minivans and BMW does not manufacture minivans).

Much of the BMW’s intention with the Films Campaign seems to be to appeal to the next generation. BMW does not have a problem with brand loyalty, but their primary segment is aging. The brand is capturing the loyalty and attention of the next generation to sustain themselves as both a sport and luxury automobile brand for years to come. However, the segment is not receptive to traditional and latent forms of marketing. The younger generation of ad-blind consumers are accustomed to on-demand television and media content. Therefore, to penetrate the segment’s penchant for ad blockers, BMW creates an ad that the segment must choose to view. The Films Campaign with its method of distribution requiring a high level of engagement and attention to view the film/ad (going to the address, filling out customer information, etc.), is an appropriate and novel way to create a relationship with this segment and sustain themselves for future generations. BMW’s chosen method of distribution for these ads as well as the provocative, edgy content gives cue that it was intentionally targeting a segment that presently lacks purchasing power. BMW is thinking about who their most valuable consumer segment will be in the future (10-15 years later).

What about BMW’s customer base—how healthy is it?

According to Exhibit 8c, defection rate to competitor Mercedes is quite high. According to 8b, defection to other makes also occurs (though BMW believes this is in part due to the fact that BMW models don’t necessarily serve certain customer needs—e.g., they do not manufacture minivans). Though BMW loyalty may be fairly high amongst the brand’s most profitable segment, BMW’s customer base as undefeatable. The brand is appropriately taking steps to create brand loyalty amongst their customer segments that are not yet brand loyal.

Though the younger generation of consumers targeted in the Films Campaign may defect to a minivan for a few years of his/her life, BMW hopes the emotional connection the films made will bring back the customer once the “minivan stage of life” is over. The company will then be able to move the consumer up its product ladder as it had with the target segment’s parent’s generation.