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BMW NA Celebrates 50 Years: The Transformative Role Of Fallon McElligot In Advertising Strategy
In 1975, Ammirati & Puris launched the iconic "The Ultimate Driving Machine" campaign for BMW, significantly boosting the brand's US sales over the next decade. However, by the late 1980s, BMW faced challenges as the Deutschmark's rising value made German cars pricier in the US. This coincided with a surge of affordable luxury cars from Japan, causing BMW's sales to drop from 96,759 cars in 1986 to just 53,343 in 1991.
Despite these challenges, Carl Flesher, then Vice-President of Marketing for BMW of North America, defended Ammirati & Puris. He argued that advertising wasn't the issue and insisted on retaining the agency. Flesher believed that product and pricing were key to turning around BMW's fortunes. He even commissioned a Harvard study showing that companies investing in marketing during downturns often emerged stronger.
With declining sales, BMW of North America underwent significant leadership changes. Carl Flesher transitioned to Head of Public Relations at BMW Manufacturing. Victor Doolan took over as Head of Sales and Marketing after serving as CEO of BMW Canada since 1987. Under pressure from Munich headquarters, Doolan was tasked with replacing Ammirati & Puris.
On October 27, 1992, Doolan and McGurn informed Marty Puris that their account was under review. The following day, Ammirati & Puris publicly resigned from handling BMW's advertising. This opened opportunities for new agencies to pitch their ideas for an upcoming undisclosed BMW model set for release the next summer.
By mid-December 1992, five agencies were shortlisted: Earle Palmer Brown in Maryland; McCabe & Company and McCaffrey & McCall in New York; Mullen in Massachusetts; and TBWA in New York. In February 1993, Mullen won the account due to Jim Mullen's passionate pitch. However, despite his enthusiasm, Mullen's team struggled creatively.
The partnership with Mullen lasted only until July 1, 1995. Jim McDowell, who became Vice-President of Marketing when Doolan was promoted to President in 1993, announced Mullen's dismissal. McDowell acknowledged Mullen's role in shifting BMW's image but sought more integrated marketing skills.
Fallon McElligott Takes Over
McDowell found what he needed at Fallon McElligott in Minneapolis. The agency had a reputation for creativity and humour that aligned with BMW’s vision for more engaging advertising. Fallon's appointment coincided with the launch of the Z3 roadster featured in James Bond’s film GoldenEye.
Fallon created memorable ads like "Parliament," where British lords express outrage over Bond driving a BMW on the wrong side of the road. They also produced innovative digital content for BMWUSA.com and direct-mail campaigns tied to Bond themes.
Innovative Advertising Strategies
Fallon's creativity shone through with ads like one featuring a penguin struggling up an icy hill before being outdone by a BMW sedan showcasing its traction control. Their work highlighted driver-car connections using stunning visuals and music.
The agency also shifted perceptions by featuring women drivers in ads and targeting female audiences subtly without pandering. This approach contributed significantly to increasing sales beyond 100,000 cars annually by 1996.
The Impact of BMW Films
In 2001, Fallon reached new heights with "BMW Films," a series of short films directed by renowned filmmakers like John Frankenheimer and Guy Ritchie. These films starred Clive Owen as The Driver alongside celebrities such as Madonna and pushed boundaries in automobile marketing.
The films premiered online when internet capabilities were limited but quickly gained recognition as marketing masterpieces. They helped boost annual sales to over 213,000 cars by 2001 but proved challenging acts to follow once conventional advertising resumed.
A New Era Begins
In early 2005, Jim McDowell swapped roles with Jack Pitney from MINI USA while Fallon Worldwide declined participation in another review process amid growing global marketing pressures from BMW AG seeking unified campaigns across markets worldwide.
This marked an end to one of history’s most successful creative partnerships between Fallon Worldwide (formerly Fallon McElligott) and BMW NA—a collaboration that redefined automotive advertising through innovation-driven storytelling techniques combined seamlessly into brand messaging strategies worldwide.
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