Integrated Marketing Communication Integrated Marketing Communication Case Analysis: Launching the BMW Roadster MANGESH PATIL| PAWAN JAGNIK | SUMAN KUMAR SAHA MAHTAAB KAJLA | NILA LOHITA | VARDHAN SINGH Group II (IMC-A) Submitted by:
Integrated Marketing Communication
Integrated Marketing Communication Case Analysis: Launching the BMW Roadster
MANGESH PATIL| PAWAN JAGNIK | SUMAN KUMAR SAHA MAHTAAB KAJLA | NILA LOHITA | VARDHAN SINGH
Group II (IMC-A) Submitted by:
Integrated Marketing Communication
Problem Statement and Objectives
“To expand the BMW franchise and further rejuvenate the BMW brand by positioning the Z3 squarely in American culture and
settling into the hearts and minds of the American public.”
Objectives: – To devise a marketing program that would sustain product excitement
which is generated through word of mouth BMW Z3 and James bond association until the product is available at dealer stores
– Expansion of market share and pushing the sales of BMW in US market
– Making BMW as a Global brand (Made in Germany to Made by BMW)
– To use the roadster to motivate and stimulate the dealer network to meet higher standards to qualify for the roadster
– To build an order to enable the new Spartanburg plant to build the specifications of BMW customers
Integrated Marketing Communication
Problem Statement and Objectives
Comparison of Worldwide and US sales(Exhibit 1)
Phases Involved
• Product placement in Golden Eye (2 seater BMW Z3 Roadster)
• Re-launch of redesigned 5S • Official automotive sponsor at ‘96
Atlanta Olympics
Phase I Phase II
Integrated Marketing Communication
Eye Catching Approaches
Replacement of Made in Germany symbol with symbol of quality saying Made by BMW
Feel of nationality – 100% made in US
Development of “Cult Product” (car) that was capable of addressing the same feelings, emotion and fantasies that motorcycles had satisfied
Increased interest of dealers by investing in facilities, equipment and manpower due to commitment shown by BMW in Spartanburg
Business Strategy – Adjustment of model prices in light of new competition situation
– Improvement of dealer network to bring consumer buying experience in line with evolved expectations for service
– Significant Improvements to product line
Integrated Marketing Communication
Persona fit between BMW Z3 and James Bond
Persona fit
James Bond
• Perfect built
• Handsome
• Sexy
• Wealthy
• Resourceful
• Adventurous
• Fun Loving
• Controller of destiny
BMW Z3 (Exhibit 12)
• Masculinity
• High performance
• Sexual dynamite
• Handsome
• Perfect figure
• Solid German Engineering
• US built (feel of US)
• Value for money (under $30000)
• Fun loving
“A perfect personality fit” – A bond movie for product placement would be perfect opportunity to reinforce its brand image
Integrated Marketing Communication
Assignment Question What are the strategies and elements of the Z3 launch campaign (phase 1). What are the benefits and risks?
Integrated Marketing Communication
Strategies of the Z3 launch campaign
Objective Setting • Sales Objective • Communication
Objectives
Budget Settings • Product Placement
at Low cost • Communication
Objectives
Message Decisions • American feel • Made by BMW
(Spartanburg)
Media decisions • Co-launch with
another brand (James Bond)
• Other 6 Non Traditional Methods
Advertising Evaluation • Sales impact • Communications
Impact
Integrated Marketing Communication
Strategies of the Z3 launch campaign
Non Traditional Marketing
– To blend the car into American individual and change their mindset about BMW
– To create a Hugh buzz un people’s daily events to get the car on people’s conversational agenda
– Leverage another band(James bond) to promote own brand(BMW Z3)
– Psychographic segmentation, non traditional marketing is more effective
– Use the 4 step customer Emotional Purchase(AIDA) i.e. Awareness Interest Desire Action
– Leveraging the uproar in market that would give broader interest and attention to the brand
Development of a Cult Brand
– Changing the image of BMW from Status symbol to Ultimate Driving Machine
Integrated Marketing Communication
Strategies of the Z3 launch campaign
Increased effectiveness of Supply chain management through efficient mechanisms
– Six Month gap between film launch and Z3 dealership availability gave BMW to build cars to exact customer specifications
– Activities like radio integration, internet promotion etc. to increase dealer traffic and simulating other interest of other models of BMW
Multi Media Approach
– Power of many voices promotion through “multimedia” communication strategy, reinforcing all the elements involved
– Sending out Request of Proposals to only those that were capable of pulling unconventional campaigns to achieve company’s goals
Integrated Marketing Communication
Elements of the Z3 launch campaign
Product Placement in a Golden Eye
– Added glamour to BMW Z3 with charm of James Bond
– Wider reach to audience: Foreign Viewers and Young People
– Highly visible placement with celebrity endorsement
BMW-MGM Partnership
– Product placement in “Golden Eye” which was more of Co-Launch as the two marketers would jointly promote New James Bond(Pierce Brosnan), the Golden eye movie and BMW Roadster • BMW covering costs for prototype vehicle and supports Z3 as Bond’s new car
• MGM Agreed to promote Z3 in Golden eye movies, previews and teasers
Integrated Marketing Communication
Elements of the Z3 launch campaign
“Go: An American Road Story” Video
TV and Print Media
Dealer Advertising and Promotions – Dealers were allowed to view
private screening of Goldeneye before the actual box office release
– Providing “007: License to sell” kits exclusive for dealers
– Great local publicity and the news attracted local newspapers which was also reported on metropolitan television and radio
Exhibit 10: “007: License to Sell” Dealer Promotion Kits
Integrated Marketing Communication
Elements of the Z3 launch campaign
Neiman Marcus Catalog Offer
Limited promotion through catalogue
Exponentially increased number of order placed(100 units in 2 days) then expected numbers(20 units over 3.5 months)
Ability to make impression on customers
Overall by Christmas Neiman’s had received 6000 orders
Sep ‘95 Oct ‘95 Nov ‘95
Exhibit 4: Z3 Roadster Neiman Marcus Christmas Catalog Offer
Integrated Marketing Communication
Elements of the Z3 launch campaign
BMW Internet Site
“Build your Own Roadster” providing ownership and feel to consumers
Increased brand equity (Increased number of hits i.e. 35,000 per day to 1,50,000 per day)
Authenticity to technology used due to association with apple’s technology on web portal
Virtual view of car
Sep ‘95 Oct ‘95 Nov ‘95
Exhibit 5: ’96 Apple Corporate Print Advertising Referencing BMW Websites
Integrated Marketing Communication
Elements of the Z3 launch campaign
Press Launch in Central Park
Formal PR event that reached out masses that acted as foundation for promotion for Goldeneye
200 media representatives were present to capture the feel of Z3 which had special effects to lure customers
Resulting in exclusive coverage in print media (Hard copy, The Morning’s Business, The Money Wheel) and other major network news channels
Sep ‘95 Oct ‘95 Nov ‘95
Exhibit 7: Automotive News Cartoon
Integrated Marketing Communication
Elements of the Z3 launch campaign
Jay Leno Tonight Show
Reaching out to wide audience through TV – The Tonight Show
Exclusive promotion to both Golden eye and BMW Z3
Though it was a calculated risk but even that went well
Sep ‘95 Oct ‘95 Nov ‘95
Radio DJ Program
Innovative ideas Used by DJs for getting word of mouth publicity
Selection of target audience was carefully done based on DJ personality, show content and listener demographics
Event was too successful in getting the brand into conversational milieu
Integrated Marketing Communication
Risks and Benefits
- Greater Impact and more credibility to campaign
- Wider audience was attracted
- Persona match with James Bond’s character provided a new feel to the brand
Risk of failure
High level of freedom given in some campaigns could have ruined the whole image
Hugh dependence on buzz generated through the movie could have backfired
Ben
efit
s R
isks
Integrated Marketing Communication
Assignment Question Would you consider Phase 1 campaign successful? How would you measure?
Integrated Marketing Communication
Analysis of Phase I of the Campaign
• Target market was defined in terms of psychographic versus demographic terms. The need was to create excitement about driving the roadster and draw attention and interest to BMW brand.
• Hence Non-traditional marketing methods were preferred over the traditional method to leverage the buzz.
• This method also helped to reduce cost • Involvement of agencies having expertise in advertising, public relations
and promotions • Preparedness of BMW in terms of aggressive program on dealer facility
upgrading, staff training, Production of 150 pre-production cars for use in pre-selling promotions at the time of product launch, rollout plan of 150 cars among 360+ dealers
• Use of Product Placement in Marketing mix – Movie Golden Eye • Neiman Marcus Christmas Catalog offer of special edition – publisher
renown for unusual product offerings • BMW internet site – Personalized view for customer thro ‘build your own
BMW’ feature on website. Win-win for Apple and BMW
Integrated Marketing Communication
Analysis of Phase I of the Campaign
• PR event – Launch in Central Park, New York with surprise visits of Bond and different kind of inauguration style of CEO
• Jay Leno Tonight show – popular program and unpredictability of message content
• Radio DJ program – Messaging through multiple channels, multiple cities
• “Go – American Road Story” – emotional character of driving experience
• TV & Print advertising (traditional way) – Non-traditional execution in traditional methods
• Dealer Advertising and promotions – Generate dealer motivation and co-operation
• Dollar savings on share-of-market as well as on share-of-voice
From the above analysis we can conclude that the Phase I campaign was relatively successful
Integrated Marketing Communication
Risks of Phase I
Risk of failure of the Bond movie
Risk of hype not being generated if sufficient exposure is not given
Would the increased order bank create a problem
Jay Leno did not sow his intent – unsure of what is to be expected
DJ Program was a 11th hour commitment
Integrated Marketing Communication
Measuring the success of Phase I
Huge opening of $26.2 million for the Bond movie gave a great promotion to the Z3
Product bookings were more than expected i.e. 9000 as compared to 5000
Value of the message was well delivered to the customers
Traffic in the dealership was up
Cost efficiencies were achieved by non traditional methods
Integrated Marketing Communication
Assignment Question What should be done in phase 2? Develop various programs/ elements for phase 2 campaign.
Integrated Marketing Communication
Challenges in Phase II
Since much of the excitement is already achieved, phase 2 must entirely focus on following
Sustaining the interest generated in
Phase I
Converting the interest into final
orders
Integrated Marketing Communication
Sustaining Interest
Continue the James Bond TV advertisement till the movie
hype lasts
It has resulted in excellent brand recall & hence should be continued till the movie hype lasts
After that, BMZ can create a new ad campaign that will highlight high performance & exclusive features of the Z3
Print ads
They must focus on exclusivity, style & elegance of Z3
Since Z3 is placed at an attractive price within its segment, ads must also have a mention of price to entice the potential customers
Continue some of the Non-Traditional Methods from Phase I
Integrated Marketing Communication
Sustaining Interest
Include new Non-Traditional Methods
Include image of Z3 on the cover of Golden Eye DVD in order to maintain the association with James Bond This will help in maintaining the visibility & associations created during the 1st
phase of promotion
Introduce the car in the video game “Need For Speed” to generate buzz among youth Product placement in games will also boost visibility during the second phase of
campaign
Sponsoring a TV show Sponsoring a TV show which shares attributes of Roadster can help in including
the product mention in the entertainment program itself
Showcase in Auto Expos Exhibiting Z3 in Auto Expos will help in reaching out car lovers & might also
generate publicity in media
Integrated Marketing Communication
Conversion to Sales
Focus on Below the Line promotions
Providing exciting offers to customers that money can’t buy
• Examples
• Few lucky Z3 buyers can get a chance to visit BMW factory where they can take a closer look how BMW cars are built
• Lucky buyers can get a chance to meet the new James Bond & have a ride with him on new Z3
Exclusive Golden Eye movie merchandize free with the car
Integrated Marketing Communication
Conversion to Sales
Product demos & test drives
• Organize free test drive camps to attract potential buyers
• Follow up the interested customers by providing exciting offers
Trained Sales Representatives at Dealerships
• Sales reps must be trained in order to present the product properly to the potential customers thus generating leads
Integrated Marketing Communication