IMC Case Analysis BMW Z3 Roadster

Integrated Marketing Communication

Integrated Marketing Communication Case Analysis: Launching the BMW Roadster

MANGESH PATIL| PAWAN JAGNIK | SUMAN KUMAR SAHA MAHTAAB KAJLA | NILA LOHITA | VARDHAN SINGH

Group II (IMC-A) Submitted by:


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


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 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


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


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


Strategies of the Z3 launch campaign

Objective Setting • Sales Objective • Communication

Objectives

Budget Settings • Product Placement

at Low cost • Communication

Objectives

Message Decisions • American feel • Made by BMW

(Spartanburg)

Media decisions • Co-launch with

another brand (James Bond)

• Other 6 Non Traditional Methods

Advertising Evaluation • Sales impact • Communications

Impact



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



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


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



“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



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

Sep ‘95 Oct ‘95 Nov ‘95

Exhibit 4: Z3 Roadster Neiman Marcus Christmas Catalog Offer



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

Sep ‘95 Oct ‘95 Nov ‘95

Exhibit 5: ’96 Apple Corporate Print Advertising Referencing BMW Websites



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

Sep ‘95 Oct ‘95 Nov ‘95

Exhibit 7: Automotive News Cartoon



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

Sep ‘95 Oct ‘95 Nov ‘95

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


Risks and 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

Ben

efit

s R

isks


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


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


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


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


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 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 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

Continue some of the Non-Traditional Methods from Phase I


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


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


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

IMC Case Analysis BMW Z3 Roadster

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