BMW Z3 Launch HBS Case Study
Date: 18th August 2009
Define what you see as the 2 main risks and 2 main benefits of non traditional marketing. Use the BMW case to support your assertions. A paragraph explaining each point will be sufficient. Answer 1
The Z3 case shows how communications strategy and tactics have evolved beyond traditional TV and print advertising. *Two key* Risks of Non-Traditional Marketing are highlighted below: *Systems not in place to measure the effective*ness* or success*. Examples from the case highlighting this risk are: Apart from the fact that the return of investment is not guaranteed, there is no real way of measuring the effectiveness of a particular element. This is the supported by the major risk undertaken in the Radio DJ program. Even though, the program worked well for BMW; they received 6,000 spots when they were only promised 3,800. However, the BMW management was not sure of how this would pan out and only gave the go-ahead 1.5 weeks before the d-day. Lack of control of the outcome. Examples from the case highlighting this risk are: The total unpredictability of the message content on the Jay Leno Show. Even though, it was a calculated risk, the outcome would be known until it was too late. So essentially, BMW would have to accept whatever happened, good publicity or bad. BMW did not anticipate that the Neiman Marcus Catalog would receive 6,000 customer orders as compared to the predecided Even though they benefitted from this, there was an aspect of lack of control. *Mutual Leverage due to corporate partnerships *between *BMW and others*. Examples supporting this benefit are: BMW teaming up with Bond was an excellent move. Bond and his movies completely encompass the message that BMW communicates to consumers: excitement, thrill, high-class and fun. And what better way to promote a car positioned as such than to feature it in a movie that brings these qualities to life. *Potential to create ‘Buzz’ for the product. *Examples supporting this benefit are: BMW achieved great hype and reached a large audience through the Jay Leno show. They also received three 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. Answer 2
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...
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