Integrated Marketing Communication

Case Analysis: Launching the BMW Roadster

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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

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 Integrated Marketing Communication Phase II .

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 .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.

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 .

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

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 Integrated Marketing Communication .

non traditional marketing is more effective – Use the 4 step customer Emotional Purchase(AIDA) i.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.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. 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 . 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.

previews and teasers 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.

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 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 Neiman’s had received 6000 orders Exhibit 4: Z3 Roadster Neiman Marcus Christmas Catalog Offer Integrated Marketing Communication .

e.000 per day to 1.50.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.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 Integrated Marketing Communication . 35.

The Money Wheel) and other major network news channels Exhibit 7: Automotive News Cartoon Integrated Marketing Communication .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.

show content and listener demographics  Event was too successful in getting the brand into conversational milieu Integrated Marketing Communication .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.

Wider audience was attracted .Risks and Benefits Benefits .Greater Impact and more credibility to campaign .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 Risks Integrated Marketing Communication .

Assignment Question Would you consider Phase 1 campaign successful? How would you measure? Integrated Marketing Communication .

The need was to create excitement about driving the roadster and draw attention and interest to BMW brand. 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. Production of 150 pre-production cars for use in pre-selling promotions at the time of product launch.Analysis of Phase I of the Campaign • Target market was defined in terms of psychographic versus demographic terms. • Hence Non-traditional marketing methods were preferred over the traditional method to leverage the buzz. public relations and promotions • Preparedness of BMW in terms of aggressive program on dealer facility upgrading. staff training. Win-win for Apple and BMW Integrated Marketing Communication . • This method also helped to reduce cost • Involvement of agencies having expertise in advertising.

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. 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 .e.2 million for the Bond movie gave a great promotion to the Z3 Product bookings were more than expected i.

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

phase 2 must entirely focus on following Sustaining the interest generated in Phase I Converting the interest into final orders Integrated Marketing Communication .Challenges in Phase II Since much of the excitement is already achieved.

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. 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 Integrated Marketing Communication . BMZ can create a new ad campaign that will highlight high performance & exclusive features of the Z3 Print ads  They must focus on exclusivity.

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 .

Integrated Marketing Communication .

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