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Hbs Case: Bmw Films

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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?
Justify: No
Verify:
1. Because BMW’s US unit sales have been increased since 1991.
2. The BMW films were launched in 2001 with great success. Their creative, innovative style of marketing through short films that were directed by big name directors starring famous actors have given them more positive publicity than ever.
3. BMW was also planning on introducing new products including the redesigned 7-series, new Z4 Roadster, and the $20K subcompact Mini-Cooper.
Quantify: Analysts were reporting that over the next few years, BMW was planning to increase US sales by 40%, to 300,000 cars a year. Keep in mind that as of 2001, they sold roughly 190,000 units.

2. What is BMW’s unique selling proposition? Describe a typical BMW’s target customer and how the company’s products fulfill his needs.

Unique Selling Proposition: The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition

What is BMW’s unique selling proposition?
BMW’s unique selling proposition is that the idea that BMW is the “world’s most exciting luxury cars,” and the “Ultimate Driving Machine.”

Describe a typical BMW’s target customer and how the company’s products fulfill his needs.
A typical BMW customer…...

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