Integrated Marketing Communication

Case Analysis: Launching the BMW Roadster

Submitted by:
MANGESH PATIL| PAWAN JAGNIK | SUMAN KUMAR SAHA MAHTAAB KAJLA | NILA LOHITA | VARDHAN SINGH Integrated Marketing Communication

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:
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

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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
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Phase II

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

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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
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Assignment Question
What are the strategies and elements of the Z3 launch campaign (phase 1). What are the benefits and risks?

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Strategies of the Z3 launch campaign

Message Decisions
American feel Made by BMW (Spartanburg)

Objective Setting
Sales Objective Communication Objectives

Budget Settings

Product Placement at Low cost Communication Objectives

Advertising Evaluation
Sales impact Communications Impact

Media decisions
Co-launch with another brand (James Bond) Other 6 Non Traditional Methods

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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 peoples daily events to get the car on peoples 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

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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 companys goals

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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 Bonds new car MGM Agreed to promote Z3 in Golden eye movies, previews and teasers

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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

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Elements of the Z3 launch campaign

Sep 95 Oct 95 Nov 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 Neimans had received 6000 orders
Exhibit 4: Z3 Roadster Neiman Marcus Christmas Catalog Offer

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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 apples technology on web portal Virtual view of car

Exhibit 5: 96 Apple Corporate Print Advertising Referencing BMW Websites

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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 Mornings Business, The Money Wheel) and other major network news channels
Exhibit 7: Automotive News Cartoon

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Elements of the Z3 launch campaign

Sep 95 Oct 95 Nov 95

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

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

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Risks and Benefits

Benefits

- Greater Impact and more credibility to campaign - Wider audience was attracted - Persona match with James Bonds 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

Risks

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Assignment Question
Would you consider Phase 1 campaign successful? How would you measure?

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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

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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
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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
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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

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Assignment Question
What should be done in phase 2? Develop various programs/ elements for phase 2 campaign.

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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

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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 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

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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
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Conversion to Sales

Focus on Below the Line promotions

Providing exciting offers to customers that money cant 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

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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

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