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IMC Case Analysis BMW Z3 Roadster

IMC Case Analysis BMW Z3 Roadster

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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

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

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

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

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
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

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

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, 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

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

Integrated Marketing Communication

Risks and Benefits

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

Risks

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 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

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

Integrated Marketing Communication

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