Integrated Marketing Communication Case Analysis: Launching the BMW Roadster
Submitted by:
Group II (IMC-A)
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: –
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To devise a marketing program that would sustain product excitement which is generated through word 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 B MW customers
Problem Statement and Objectives
Comparison of Worldwide and US sales(Exhibit 1)
Phases Involved •
Product placement in Golden Eye (2 seater BMW Z3 Roadster)
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Re-launch of redesigned 5S
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Official automotive sponsor at ‘96
Atlanta Atlanta Olympics
Eye Catching Approaches
Replacement 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 fantasies that motorcycles had satisfied
Increased interest interest of dealers by investing in facilities, equipment and manpower due to commitment shown by BMW in Spartanburg
Business Strategy Strategy –
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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
Persona Persona fit between BMW Z3 and James Bond
Persona Per sona 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
Assignment Question What are the strategies strategies and elements of the t he Z3 launch campaign (phase 1). What are the benefits and risks?
Strategies Strategies of the Z3 launch campaign
Message Decisions • •
Objective Setting • •
Sales Objective Communication Objectives
American feel Made by BMW (Spartanburg)
Budget Settings •
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Advertising Evalua Evaluation tion
Product Placement at Low cost Communication Objectives
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Media decisions •
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Co-launch with another brand (James Bond) Other 6 Non Traditional Methods
Sales impact Communications Impact
Strategies Strategies of the Z3 launch campaign
Non Traditional Marketing –
To blend the car into American individual and change their mindset about BMW
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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)
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Psychographic segmentation, non traditional marketing is more effective
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Use the 4 step customer customer Emotional Purchase(AIDA) i.e. Awareness Desire Action
Interest
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 symbol to Ultimate Driving Machine
Strategies Strategies of the Z3 launch campaign
Increased effectiveness of Supply chain management through efficient mechanisms –
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Six Month gap between film launch and Z3 dealership availability availability gave BMW to build cars to exact customer specifications Activities like radio integration, integration, internet promotion etc. to increase dealer traffic and simulating other interest of other models of BMW
Multi Media Approach –
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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
Elements of the Z3 launch campaign
Product Placement in a Golden Eye –
Added glamour to BMW Z3 with charm of James Bond
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Wider reach to audience: Foreign Viewers and Young People
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Highly visible placement with wi th 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 costs for prototype vehicle and supports Z3 as Bond’s Bond’s new car
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MGM Agreed to promote Z3 in Golden eye movies, previews and teasers
Elements of the Z3 launch campaign “Go: An American Road Story”
Video
TV and Print Media
Dealer Advertising and Promotions –
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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 attracted local newspapers which was also reported on metropolitan television and radio
Elements of the Z3 launch campaign Sep ‘95
Oct ‘95
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
Nov ‘95
Elements of the Z3 launch campaign Sep ‘95
Oct ‘95
Nov ‘95
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
Exhibit 5: ’96 Apple Corporate Print Advertising Referencing
BMW Websites
Elements of the Z3 launch campaign Sep ‘95
Oct ‘95
Nov ‘95
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 Exhibit 7: Automotive News Cartoon
Elements of the Z3 launch campaign Sep ‘95
Oct ‘95
Nov ‘95
Radio DJ Program
Jay Leno Tonight Show
Reaching out to wide audience through TV – The Tonight Show
Innovative ideas Used by DJs for getting word of mouth publicity
Exclusive promotion to both Golden eye and BMW Z3
Though it was a calculated risk but even that went well
Selection of target audience was carefully done based on DJ personality, personality, show content and listener demographics
Event was too successful in getting the brand into conversational milieu
Risks and Benefits
s t i f e n e B
- 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 R i s k s
Assignment Question Would you consider Phase 1 campaign successful? How would you measure?
Analysis of Phase I of the Campaign •
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Target market was defined in terms of psychographic versus demographic terms. The need was to create excitement excitement about driving the roadster and draw attention and interest to BMW brand. Hence Non-traditional marketing methods were preferred preferred over the traditional method to leverage the buzz. This method also helped to reduce cost Involvement 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 Marketing mix – Movie Golden Eye Neiman Marcus Christmas Catalog offer of special edition – publisher renown for unusual product offerings offerings BMW internet site – Personalized view for customer thro ‘build your own BMW’ feature on website. Win-win for Apple and BMW
Analysis of Phase I of the Campaign •
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PR event – Launch in Central Park, New York 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 co-operation Dollar savings on share-of-market 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
Risks of Phase I Risk of failure of the Bond movie Risk of hype not being generated 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 11 th hour commitment
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
Assignment Question What should be done in phase 2? Develop various programs/ elements for phase 2 campaign.
Challenges 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
Sustaining Interest Continue some of the Non-Traditional Methods from Phase I 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 creat c reate ea 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 attractive price within its segment, ads must also have a mention of price to entice the potential customers
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 1 st phase of promotion
Introduce the car in the video game “Need For Speed” to generate
buzz among youth
Sponsoring a TV show
Product placement in games will also boost visibility during the second phase of campaign 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
Conversion to Sales
Focus on Below the Line L ine 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 Eye movie merchandiz merchandize e free with the
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 Sales Represent Representatives atives at Dealerships • Sales reps must be trained in order to present the product
properly to the potential customers thus generating generating leads
