BMW Z3 Launch HBS Case Study Essay Example

reached a large audience through the Jay Leno show. They also received hree times the word-of-mouth effect as compared to the other prelaunch initiatives through the Radio DJ program. Through their ‘Golden Eye’ corporate movie partnership, they successfully gained access to foreign markets and young people who are cannot be reached through traditional marketing methods.

Drawing from the BMW case and other examples of NT marketing, explain these differences between NT and traditional marketing. It is important that you draw on original examples to support your answer. What is the process of communication in non traditional marketing and how is it different from traditional marketing.

Today, most companies are working to drive traffic, increase consumption and grow sales in the midst of economic uncertainty. Consumers have started to feel bombarded with marketing initiatives. With the uncertainty of returns on marketing dollars and inability to reach customers, it is critical to get creative. Traditional marketing (TV, Radio, Print, Direct Marketing) is Company-focused and product-based. It intends to increase the company and brand visibility and is targeted to mass markets. The message conveyed to the customer is Company-controlled and motivated. Examples of Traditional Marketing

Coca-cola, P&G, Nestle and Unilever are good examples of companies that still attract large segments of the masses and rely on traditional methods to build on brand loyalty. Examples of Non-traditional Marketing An example of this is the Max New York Life (MNYL) Insurance campaign in India. MNYL targeted consumers at grocery stores by using a crate of eggs as the communication vehicle. The crate states that ‘Life is equally fragile. Protect it with life insurance. ” It was very unconventional yet highly successful campaign. {draw:frame}

{draw:frame} Elizabeth Arden launched an interactive website for Fantasy (Perfume) that eads into Britney’s magical dream world.

The story unfolds along with the pages of a virtual book while offering ring tones, screensavers, love games and free samples. Australia was the most successful Britney fragrance launch worldwide on a per capita basis. Based on the ‘Lover of Life’ psychographic segmentation done by BMW, the concentration on non-traditional marketing helped create a huge demand at unusually low prices and gave BMW a competitive advantage over rival firms in the same market while also succeeding in building an emotional relationship with the consumers.

Put yourself in the shoes of Jim McDowell, the VP for Marketing at BMW. We are in January 1996. You have created the excitement around the new BMW. The dealers have the names of 9,000 prospective customers. The important question you have to answer is: How will you use marketing communication tools to translate this excitement into sales? Briefly define the core points of your communication strategy (in bullet points) for phase II and explain in 2 to 3 paragraphs the rationale behind your strategy.

What communication vehicles will you use and why? After the success of the Z3 Prelaunch, BMW had to sustain the ‘Buzz’ it had generated in America and to convert this excitement into actual sales. Since the Z3 is considered an emotional purchase and competes in an intensely competitive market, I recommend that for the Phase II Z3 launch, we continue to follow non-traditional marketing methods but also use elements of traditional marketing to sustain and increase anticipation in the Z3.

For the launch strategy to successfully meet the project’s objectives, BMW should: Use

the roadster to motivate and stimulate the dealer network to meet higher standards to qualify for the roadster Build an order bank to enable the new Spartanburg plant to build to the specifications of the customer Design a marketing program that would sustain product excitement until dealer product availability. Additionally, dealers need to deepen BMW’s relationship with self-selected prospects through: Dealer promotion kits Direct mail, videos can give the person a “taste” of what is in store

Test drives can keep appetites whetted Time to time Z3 progress updates (Z3 Newsletter) that would build “anticipation” Therefore, the Communication Vehicles to achieve BMW’s objectives could be as follows: Promotional Events: BMW identifies events that Americans are interested in ranging from Sport events, to Fashion events, to Award shows, Concerts, to Celebrity related events. ‘Visit Home of the Z3’ Contest: A Contest where the winner gets to visit the BMW manufacturing plant in Spartanburg, South Carolina (the home of the Z3).

The winner can drive home in his very own Z3. Creation of the BMW Z3 Microsite: Great avenue for prospective customers to receive information and interact with other members of the BMW community. Z3 Short Films: This would re-enforce BMW’s message to all consumers; classy cars for drivers who love to drive and crave exhilaration, thrill, fun and passion. Z3 Communication on Public Transport (Trains / Buses): Simple, innovative and impactful messages that will be imprinted in the consumers’ mind.

Additionally, since consumers spent a lot of time waiting at train and bus stops, similar messages can be advertised there. Z3 Communication on Interactive Billboards: Great way to grab the attention of passer-bys and create hype. *Specialized Events showcasing

the Z3’s superior technological advances Advertising and promoting the Z3 in Magazines and on popular Talk Show Fallon McElligot (BMW’s agency) could release a TV & print campaign that re-enforces BMW’s message.

Non traditional marketing is not suited to every kind of product launch. Certain products and services are still best promoted using traditional marketing tools and media. Explain in 2 to 3 paragraphs the types of products that are more suited to non traditional marketing communication tools and the ones who are more suited to traditional marketing ones. You could structure your answer as a simple table. The type of communication mediums used depends on the level of involvement of the customer and the type of product being marketed.

For certain product and services, consumers use peripheral cues to make decision and for other products, decisions are carefully weighed and researched. However, having said that, consumers classify products into low involvement or high involvement categories based on their varied interest levels in those products. A company must understand this before selecting the marketing method most suited to the product’s objectives. A right mix of both methods can also do the trick. Below are some examples of products and services, their target audience and the various marketing methods that are used.