Professional Documents
Culture Documents
Case Objectives
Innovative product launch marketing Marketing execution Vs Strategy Role of new Marketing Paradigms
NT ideas to break clutter Differences in methodology NT vs. T Understanding risks and control
THEORY
DIFFERENCES
Philosophy
Traditional
Non Traditional
Communication Process
Non Traditional Traditional
Awareness
Awareness / Visibility
Interest
Excitement
Involvement / Infatuation
Consumer Advocacy
Desire, Preference
Purchase
Purchase
Others
Credibility
NT can be more credible have more impact and more efficient when it works. NT costs can be uncertain Traditional advertising costs can be better forecasted. Can be well targeted through mass media NT relies on audience self selection Traditional advertising = measurable, reach GRP, frequency = more easily measured by market research. NT is more difficult to evaluate.
Budgeting
Target market
Metrics
Credibility
EVALUATION
BREAK
Strategic Significance Benefits and Risk Measuring Success Translating Excitement into Sales Post script and wrap up
Strategic Significance
SO WHAT HAPPENED?
SO WHAT HAPPENED?
Issues Faced
Typical to the Category Loss of control
Timing Target audience Brand Image: Bond/BMW Grid Brand Meaning Exposure
Challenge of translating awareness into sales: The excitement/time Grid Difficult to measure impact: Success Criterion
Brand Dilution in Case of Movie Failure Brand Dilution due to Clutter Brand Dilution due to Negative Association
Measuring Success
SO WHAT HAPPENED?
Z3 / Total BMW BMW Z3 9k waitlist for 3.5 months = 30,000 p.a 14,085 15,194 $20 $667
20.6 / 131.6
19.4 / 119.3
10.3 / 102.4
$9 $35
$667 $2304
9.7 / 17.2
5.3 / 11.5
Na / 6.8
Objective
WOM, Buzz 20 units over 3.5 month Christmas season
Reported results
100
orders placed. 2days 6000 orders by Xmas 2000 media reps attended. # of Z3 editorials in leading publications can be counted.
Jay Leno
WOM, Buzz
Unpredictable, all we know is it worked out very well Role for campaign evaluation research to measure awareness impact.
Statements like Amazing Credibility, Had 3 times the WOM of other events. What does this mean in terms of measurable effects on sales? Local
Radio DJ
Unstated
publicity Traffic in dealerships increased (300%) 15% Recall . 50% higher than Mercedes E class launch Is that good enough
TV and Print
Reinforce
Movie placement
Success Criterion
Great Buzz !
What buzz? Quantifiable? Impact of Traditional media with comparable spend? Influence of new product introduction? Validity of Estimation?
Dealer Traffic up
EXCITEMENT TO SALES
Excitement to Sales
Objectives of Phase 2
Sustain wait list customer interest Maximize conversion rate Maximize customer acquisition
Mediums?
AND THEN?
Postscript
By Jan. 1996 BMW had to scale down their marketing efforts to avoid potential consumer backlash by not being able to meet demand. Tactics shifted to maintaining consumer interest
Cinema advertising (60 sec. Teaser placements) In flight videos targeted at business travelers. Dealer sponsored direct marketing programs Limited corporate sponsored direct marketing Dealer funded retention programs
Launch date March 1996. Selling price in 1997 = 30k to 36k. Sales in 000s
1997: 19.4 (Mazda Miata: 17.4 Porsche Boxter: 5.3) Boxter: 1998: 20.6 (Mazda Miata: 19.8 Porsche Boxter: 9.7) Boxter:
Postscript
Awards
Promotion of the year Marketer of the year Brandweek : Model of effective cross promo USA Today : Marketing Coup
Postscript
Brickbats
Went too far Overdone License to Overkill James bond International Man of Sales
Corporate
Generic
Service
Idea
Historic
Innovation
Introducing a product Swift in Bunty aur Babli