Jurgen Klopp's side were handed a draw of Real Madrid, Manchester City and Ajax, and the official has urged the coach's players to step up to the plate this time around
The German champions were drawn in Group D alongside Real Madrid, Ajax and Manchester City - all winners of their respective leagues - as they look to avoid another group-stage exit.
However, the general manager believes his side will be more than capable of springing a surprise, should they put in the right performance.
"This is an incredibly difficult but also incredibly attractive group with three Champions League winners and the English champions," Watzke remarked to the club's official website.
"All four teams are national champions. In such a group, heroes are born. We want to progress."
Meanwhile, BVB captain Sebastian Kehl voiced his excitement at being given the opportunity to play in Spain and England in the coming campaign, but admitted he had hoped for an easier draw.
"This is a crazy group. We could not have drawn any teams harder than Madrid and City," he noted.
"Of course it's great to play in to play at the Bernabeu or on English soil, but honestly I would have hoped for an easier draw."