Outline of the question/problem/symptoms - Essay Example

Outline of the problem The problem with BMW was that they were failing in the American because of competition that was caused by Japan carmakers and other car manufacturers in the world. Additionally, BMW was failing because of their poor marketing strategy, as it was not eye catching and convincing to the American market in the sense that, the features that were being flaunted by the movies made using the BMW were not attracting. For that reason, the vice president sought other option to find a solution to the problem, which was the marking of the five film series.

The Bayeriche Motoren Werke or BMW was founded in 1916 as an aircraft engine builder. Its first production was in 1929 and by 1980; the company has established itself firmly in the global automotive market in the luxury performance segment. However, its main BMW product line was Sedan where the company offered three different series that included The 3 Series BMW’s entry-level sedan that was launched in 1975, which attracted mobile professionals. Secondly, there was the MBW mid- range sedan 5 Series that was launched in 1972.

Thirdly, there was the BMW’s flagship sedan 7 Series that was launched in 1977. BMW was considered hottest foreign car in America, which was because of the campaign’s ad that were being featured in the country (Moon 127). The advertisements featured the grander performance of the BMW that emphasized on the marvelous handling and German engineering. The dual sense of style appealed the young urban professionals found in the era of conspicuous consumption as they were in the market for cars that conveyed some sense of style and affluence.

These features could not be found in other brands such as the Jaguar, Mercedes-Benz, and Cadillac that were conservative and stodgier. Therefore, in order to appease a population BMW had to create a car that would suit such young generation and for that, there was a market shift in 1980. BMW faced competition from other car companies, especially cars from Japan that were appreciated by other people because of their superior quality, reliability and service that cost less that BMW. The Japanese cars had competitive features that were more high-end than those flaunted by BMW in their advertisement such as air bags and ABS brakes, which were standard in other brands.

Additionally, the Japanese brands were being sold at relatively small number of exclusive dealership that provided excellent service level at the same time maintaining high sales levels. The market of BMW cars in the United States bottomed out to the extent that there were rumors suggesting that the company wanted to withdraw from the market. In August 2001, the vice president Jim McDowell reflected on BMW’s last campaign and established that they needed to do something about the brand because of competition.

There were negative remarks on gratuitous commercialism because instead of promoting the cars in the film they were actors in the props (Moon 122). The cars were beat up, dirty and there was nothing gratuitous about the scene. Therefore, rethinking another strategy become a priority for Jim McDowell and for that reason, five films were created where the BMW were created to promote the car. The reception of the films was amazing that even the comments of the funs indicated that they liked what they saw.

The films played an imperative role in improving the sales of the BMW as they showed more features of the car than what was previously shown in the James Bond Movies where the BMW was used as an actor (Moon 135). Additionally, the reviews that the films got from the public were excruciating in the sense that, any person who viewed the movies wanted to own a BMW. Even today, the BMW market is on the raise where the customers or consumers are opting to use the car indicates elegance and superiority because of its features.

Therefore, the strategic plan to advertise the BMW played a vital role in improving its market in the United States. ‘Work citedMoon, Youngme. "BMW Films." Harvard Business School 502-046 (2002): P. 119-144. Web. 15 Nov. 2014.