Campaign Proposal for BMWi3

Submitted By:

Sandipan Roy

Word Count: 6286

Table of Contents

List of Contents Page No.

1.0 Situation Analysis...................................................................... 4

2.0 Database Strategy................................................................... 5

2.1Data Collection Process..................................................... 6

3.0 Segmentation and Targeting Approach.................................... 7

3.1 Characteristics of Segment............................................... 9

3.2 The Potential target customers......................................... 10

3.3 Customer Journey............................................................ 11

4.0 Communications Plan............................................................. 12

4.1 Allowable Cost per Acquisition......................................... 12

4.2 Contact Strategy............................................................... 12

4.3 Communications Plan for New Customers...................... 14

4.4 Communications Plan for Existing Customers................ 15

4.5Communications Flow....................................................... 16

4.6Justification of Media......................................................... 17

4.6.1 Website................................................................ 17

4.6.2 Email................................................................... 18

4.6.3 Direct Mail........................................................... 18

4.6.4 Telephone Calls.................................................. 18

4.6.5 Blogs and Forums............................................... 18

4.6.6 SMS.................................................................... 18

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4.7 Evaluation...................................................................... 19

4.8 Testing......................................................................... 19

5.0 Creative Brief............................................................................ 19

5.1Job Description................................................................ 19

5.2 Aim.................................................................................. 20

5.3 Objectives....................................................................... 20

5.4 Target............................................................................. 20

5.5 Components of the offer................................................. 21

5.6 Central Creative Proposition........................................... 21

5.7Substantiation: Reason to Believe................................... 21

5.8Key Response.................................................................. 22

5.9Desired Brand Character................................................. 22

5.10 Campaign Management & Control…………………….. 22

5.10.1 Mandatory Inclusions……………………………… 22

5.10.2 Tracking and management………………………. 23

5.10.3 Budget……………………………………………… 23

6.0References………………………………………………………… 24

7.0Appendices……………………………………………………….. 26

7.1 Appendix 1……………………………………………….. 26

7.2 Appendix 2……………………………………………….. 27

7.3 Appendix 3……………………………………………….. 29

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7.4 Appendix 4……………………………………………….. 32

7.5 Appendix 5……………………………………………….. 33

7.6 Appendix 6……………………………………………….. 34

7.7 Appendix 7……………………………………………….. 35

7.8 Appendix 8……………………………………………….. 36

1.0. Situation Analysis

Heavy investment into Research and Development has enabled BMW to produce the

“cars of tomorrow” and currently operating in the Individual Mobility market (BMW

Group, 2010). The company has 24 production plants in 13 countries along with 12

Research and Development plants in 5 countries (BMW Group, 2012). A matrix

organisational structure that has been adopted by the firm has enabled decentralisation

of power and encouraged innovative ideas from employees (BMW Group, 2010).

BMW is part of the BMW Group which also comprises of Rolls Royce and Mini-Cooper

(BMW Group, 2010). The audiences and prices for these automobiles are different so

none of them cannibalises the other even during tough economic crisis.

BMW automobile has proven to be one of the strongest competitors in its market.

Appendix 1 shows that between 2003 and 2007, they saw a rise in the number of new

cars that they sold in United Kingdom, giving them an extra 1.4% of the UK car market

(Mintel, 2010). In 2011, the BMW Group in the UK reported their market share to have

increased to 8.59% (BMW Group, 2012).

As of 2010, BMW Group has around 95,000 employees working for them however by

2011 this figure had increased to just over 100,000 (BMW Group, 2010). This is an

improvement from 2008 when the industry suffered due to the financial crisis which led

to a massive fall in sales and revenue.

BMW is the chosen vehicle for the Olympic 2012 simply because of “its ability to meet

the emission targets set by London 2012” (BMW Group, 2012). It is quite clear the BMW

wants to remain relevant in the industry and it is responding to emission regulations and

consumer demand for eco-friendly automobiles. This is a remarkable opportunity for

BMW to showcase its strategic move towards a more environmentally friendly society.

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The Pareto principle suggests that around 20% of customers will provide 80% of an

organisation’s profits (Tapp, 2008). This principle applies to BMW because majority of

the buyers of the new i3 will be existing customers who have experienced the dynamics

of the automobiles. Although it is critical to understand that whilst majority may not

mean 80%, it means that existing customers are more likely to buy than new customers.

BMW’s best customers are those that change their cars at least once every 3 years

because they like the latest shapes and prefer low mileage on their vehicles.

BMW currently work with 156 dealers who sell their cars to customers (BMW Group,

2010). Other direct customers include the police and car rental companies. This

approach is good because BMW can sell in large quantities to these organisations and

do not have to worry about dealing with individual customer’s query however a potential

pitfall with this is that there could be a poor delivery of customer service or lack of

knowledge of the automobiles by the dealers.

One of the issues that surrounds BMW in the market is that majority of their competitors

have similar market share. So in terms of marketing, competitors such as Audi, Jaguar

and Mercedes have similar resources for advertising their products. One major

competitive advantage of BMW over its main competitors is the good strong brand

name that it has created leading it to have a loyal customer base. Although there is high

barrier to enter into the automobile market, the cost of exiting the market is very high

especially because of their production plant. Certain things are the driving forces for

automobile market forcing manufacturers to move towards the production of low

emission vehicles. The European Union is now implementing tight regulations to set

emission targets for manufacturers. Another major driving force is the change in

attitudes of consumers towards environmentally friendly cars. (Keynote, 2011)

Based on the research done above, and the findings, this communication plans will be

used to communicate with potential customers encouraging desired engagement with

the brand, thereby generating leads which will lead to actual sale of BMWi, following the

plans below:

Database strategy

Segmentation and targeting approach

Communication plan

Creative brief for a chosen medium from the campaign

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2.0. Database Strategy

BMW currently holds data about customers that have bought the 3 series in the last 3

years. Some information about the customer’s personal profile, purchase and

communication history will be useful extract from the database. According to Tapp

(2008), in order to generate a good marketing database, there are certain criteria that

have to be met in terms of collecting information:

Personal customer data

Purchase data: what the customer has bought

Communication data: campaign history and responses

In relation to the above, it is critical to collect customer information in order to know who

they are. With access to personal information, prospect’s job can easily be determined.

This will help in identifying their level of income, purchase patterns, values and lifestyle.

Their income level will suggest the capability to spend. By understanding what they

have bought in the past, a prediction of what they might buy in the future can give

insight to the reasons behind the purchase. A realisation of what makes them tick will

allow for a tailored campaign to these prospects.

One of the key things that will be entailed in contact information is the address which

will help to know where the eco friendly customers are more populated and also help in

sending mails to post codes. The address will also help to know where there is large

presence of target customers to organize events in such places. This will be useful to

identify pockets of strength, location where there is high level of BMW 3 series owners

and areas where there is more focus towards sustainable environment.

Internal data is from within the organisation and is generated depending on their

relationship with customers (Stone and Shaw, 1988). Since BMW keeps a record of

customer purchase data, it will be helpful in building up a new database structure which

will help in segmenting customers for the BMWi. Data can be collected from different

internal records like accounting systems, sales ledgers, etc. The information from the

accounting system will help in knowing the preferred payment method of existing

customers and their financial credentials. Intervention of senior management from BMW

is essential to ensure smooth collection of required data from different departments

(Woodcock, 1992).

2.1. Data collection process

Existing customers:

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The information about BMW 3 series can be collected from existing internal database.

Other interested BMW users will be asked to sign up from their service centres after

been introduced to the BMWi series there.

New customers:

The new interested customers will be reached through event and online signup. The

online signup will be initiated through present advertisements which would carry URL of

BMWi. This will lead the customers to signup online for more information about the

BMWi series. Also every one who likes the BMWi Facebook page will be sent an email

requesting them to sign up on the BMW website and forums.

The event signup: BMWi series will be associated with some of the top event this year

like the Olympics and the Geneva motor show where the car will be displayed.

Interested customers will be put through the signup process by staff.

Data collected from the internal sources mentioned above needs to be managed

professionally to achieve maximum response rate. After collecting the customer data

proper check should be conducted to make sure the validation and update of the data.

De-duplication should also be conducted so that no customer details get repeated. This

will help in controlling the cost while sending the communications like invitation letter,

newsletter and so on. All such precautionary steps are to be conducted in-house to

have a regular update, day-to-day control and easy access as and when required by the

direct marketing team (Tapp, 2008). Such steps needs to be conducted with great

attention as a small mistake with the name, preference, past purchase record will not

only de-motivate the targeted consumer to participate further but also hamper the brand

image of BMW.

Regulatory norms also should be taken care of while refining the database. According to

The British Code of Advertising Practice (Tapp, 2008), persons opted for options like ‘do

not promote’, ‘Mailing Preference Service’ and so on, should be removed from the

database so that no communication is made to them.

3.0. Segmentation and targeting approach

‘BMW brand’ from different research has proved not to be just another car

manufacturer; moreover it is seen as a lifestyle brand which speaks for its quality,

performance, technology and new revolution in personal mobility industry. Based on the

parameters in existing data base below, we can create a new database which will help

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us to segment customers based on concern towards sustainable environment,

technology and other general features. The potential customers considered are

Existing 3 series customers (who own it for more than 3 years), other BMW users who

are interested (Service sign up), and interested potential customers who sign up on

BMWi Website and Facebook and other customers who sign up during events like

Geneva Motor show, Olympics etc.

The existing database holds the following information and this information are

considered important when segmenting the potential customers of BMWi

Name, mail id, address, contact no

Previous model purchased (Can target 3, 5 series)

Date of purchase (how old it is)

Registration number

Dealer name

Age and other demographic data

Profession and social status

Family member

Name and contact no. of customers shown interest and registered to i3

website and different events

Responded to which earlier campaign

Media of communication preferred

Reference history

These data can easily be retrieved from existing BMW database. Apart from the

information mentioned above the following new parameters are considered for

appropriate segmentation of potential customers

Postal code with maximum hybrid models which will help us in finding the

residential area of potential customers

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Profession or class of people owning hybrid models will help in segmenting

potential customers on the basis of profession

Customers who are more interested in cars with high technological features

in it, this is important because the BMWi is being developed with

technology to revolutionize the way we drive.

Existing users of small electric cars like smart are easy to persuade to

switch brand which is cheaper.

Affluent class of people associated with eco-friendly house as they are

more concerned of the sustainable environment and also they have good

purchase power

Profiling people with maximum usage of green products as research shows

that these set of people are more likely to buy sustainable cars.

Members of online forums of electric car and eco-friendly products

respondents or members of different go-green campaign

Eco-prestige, high-end “Premium 2.0” (Mintel, 2009) customers who can

afford to pay the price to have a 'cool' 'green' car. They are upper middle

class and are early adopters who have the cash to experiment with an

entirely new kind of vehicle

Collection of these data will involve secondary research, might have to purchase some

existing database and reports

3.1. Characteristics of segments:

Sustainability :

Demographic Profile:

more likely to be male than female

in managerial positions with professional occupations

High disposable income

generally live in their owned outright houses and flats

Most likely to:

Car ownership among these people is high with two or more cars

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Who are they?

Eco-prestige, high-end “Premium 2.0” (Mintel, 2009) customers can afford to pay the

price to have a 'cool' 'green' car. They are upper middle class and are early adopters

who have the cash to experiment with an entirely new kind of vehicle. They read daily

express, daily mail and daily telegraph the most compared to the overall average

readership rate of newspapers. They prefer to watch comedy and drama on television.

They play golf and often visit theatres, do gardening and involve in cultural arts as a part

of their lifestyle interest. They prefer to go out on holiday on cruise, motoring holidays

and coach tours. They are more likely to use internet for browsing and planning their

travel than shopping. They prefer to get the news from radio and television rather than

newspapers. (ACRON demographic report, 2010)

Technology freaks:

Demographic Profile:

More likely to be Male

High income achievers

Into managerial jobs

Live in flats or terrace houses

Most likely to:

Use new technology, pc mobile phones

Internet usage is very high

Comfortable and like to try new technology

Who are they?

They prefer to go to coffee shops and regularly have lunch in pubs or restaurants. They

read The Guardian, The observer and The Independent. They are very active in social

media and they are high users of Internet. They discuss technology in blogs or forums

and like to keep themselves updated by reading technology magazines. Most of them

are early adopters and high income achievers.

3.2. The Potential target customers:

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CUSTOMERS

Existing BMW Customers New Interested Customers

Existing BMW 3 series owners:

Existing BMW 3series owners of 3+ years are the key target audience as there is a

focus to persuade them to upgrade their car possibly through part exchange. These are

VIP customers who would be targeted as they are more likely to repurchase. According

to Pareto’s principle of 80:20 rules, 80% of the business comes from 20% of our existing

customers (Tapp, 2008).

Existing BMW Owners of other model:

They are brand loyal, knows the service quality and high standard of BMW products.

We need to encourage them to invest and take part in the sustainable movement. They

will be registered on i3 website, service signup and Facebook.

New interested Customers:

New customers considered are the people who have shown interest in BMWi through

their signups –Online and Events. The environment is very important to everyone and

certain upper class of people like celebrities, business leaders and creative people like

to flaunt their concern towards sustainable environment (Rowley, 2011). Presently they

are using basic range of electric cars, hybrid cars available in the market and can be

easily converted to BMW owners. Just need to focus on the BMW brand image clubbed

with the sustainability concept.

Member of eco-friendly clubs and environmental concern clubs need to be encouraged

to use BMWi and contribute towards building up a green environment

We need to implement push strategy to reach maximum customer base. Different

communication strategy for different segments of potential customers is essential.

3.3. Customer Journey:

Personalised communication will be sent to these customers with service cards in which

their interest will be noted. They will be sent the details of their local dealer that currently

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Other Interested BMW users-Service signup

BMW 3 series (3+ years) Existing Database

Event sign upOnline signup

POTENTIAL BMWi CUSTOMERS

has the i3, allowing them to book a test drive. There is a need to find out what type of

communication method they prefer. In case email, then a URL link to arrange for a test

drive will be sent. If letter, introductory leaflets will be sent out with the code to book a

test drive. They don’t need to type their information when they use this specific code for

correspondence. If through phone, a sales representative will contact the customer at

their preferred time. See Appendix 2 and 3 for details of visual map for existing and new

customers respectively.

4.0. Communication Plan

A classic multistep communication plan (Roberts M L, Berger P D, 1999) has been

designed to reach customers and generate leads to achieve sales (See Appendix 4).

Different steps involved in it are sign-ups, invitation letter with detailed mail package;

SMS to engage consumers, followed by personal sales call telephone then visit to

dealer to take the test drive and make the final purchase decision.

4.1. Allowable Cost per acquisition:

Analysing the cost per acquisition will help in finalising budget for each communications

stage and decide on the amount that can be spent to acquire a new customer leading to

the life time value of the customer (Kelly, 2009)

Total Marketing Budget / No of leads to be generated = £400,000/5000

=£80 per acquisition of a lead

4.2. Contact strategy

Effectiveness of the communication plan plays a vital role in the success of this

marketing campaign. So to achieve maximum outcome from the communication plan,

several stimulating offers have been framed to motivate target consumers for their

maximum participation in each step of the campaign. The different steps of getting

involved with the potential customers will also include some key offers which will be

used as motivational tools to get their attention and also increase share of information

and finally influence customers purchase decision. All these steps will help in achieving

specific objectives as mentioned below:

Offers to New Customers:

Win a ticket for trip to BMW museum- at online and event signups

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The objective of the communication plan is to encourage maximum number of

potential customers to share their details like contact no, preference etc. with

BMW.

It will help in segmenting them on the basis of their attitude towards the BMWi3 and

sending those future communications accordingly. Customers undertaking event sign

up and online sign up will be offered a “Chance to win a trip to BMW Museum”. From

the entire pull of sign-ups, hundred lucky consumers will be selected for the trip. This

offer will inspire the car enthusiasts to get a chance of experiencing the history and

evolution of BMW, just by sharing their details.

Post your comment at BMW magazine- at forums, website and blogs

To motivate consumers for maximum interaction and participation in the

discussion forums

Consumers should be motivated to join and actively participate in the discussion forums

and social media platforms. An offer of receiving regular updates on the BMWi and

moreover a chance to post their comments at BMW magazine with photographs will

surely motivate them for maximum engagement with the brand. This will also help in

selecting the most valuable potential consumers and target them with more focus.

Offers to Existing Customers:

10% discount on next service bill for first 500 signups- will be offered during visit to

service station

To identify the existing BMW owners looking for a 2nd car and interested on a

eco-friendly product

The offer of 10% off on next service will encourage the target audience to provide their

details so that we can send them detailed information of the BMWi. The signup kiosks at

142 service centres will also have general literature of BMWi with brief information of its

specifications and sustainability to generate on the spot interest.

Win miniature of BMWi- when interested customers signs up with the unique codes by

means of free SMS

To generate maximum leads through SMS

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By this time the targeted customer will have adequate information about the car. The

offer of “1st 100 respondents will get a miniature of BMWi” will motivate them to respond

to the SMS facility with an immediate effect.

Your car, your name- will be offered while visiting for test drive

To increase actual sales of the car

The offer of “1st 100 persons booking a car will get a chance to get their name printed

on the car” shall act as a catalyst in the purchase decision making process. This kind of

customisation will encourage them to take the final decision without spending time on

looking at further options.

Plant a tree, save the planet- as a welcome kit after actual purchase of the car

To reward the customers for showing faith on BMW’s initiative towards green

environment.

The owners of BMWi will be offered an option wherein BMW will plant a tree and

maintain it in the name of the owner to show his/her concern towards green

environment. This is will develop a sense loyalty towards BMW brand and increase

cross selling.

4.3. Communications plan for New Customers

Marketing communications has become an integral part of routine business strategies.

Now day’s consumers rely on the information and messages deliver by organization

through different media to make wise purchase decisions (Mayo, n.d). Therefore an

effective communications plan has been outlined to promote this lifestyle brand, which

will enable BMW to extend their territories in terms acquisition of new interested

customers and repositioning their brand.

New customers interested in BMWi model will be notified to register through online and

service sign ups by current advertisements. A detail customer profile could be

generated when they are part of events like Motor show, Formula One Racing and

Olympics. By adding these customers to the database, they can be segmented in terms

of their characteristic and preferences like Technology Driven, Sustainability and

General.

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In order to reach to the above mentioned categories of customers, customised

approach will be taken to inform them about this latest urban mobility. The

communication approach has been divided in various steps and provided with various

offers in order to make a successful customer proposition. The customers will be

notified through emails to underline the contemporary image of this lifestyle product.

The email will be personally addressed to the receivers asking them to join specific

forums (Facebook, Website, and Blogs). From the secondary research findings, it is

evident that online communities provide a prime opportunity for organizations to get to

know their customers more personally (Keynote, 2010). The time is now for companies

to embrace communities to help them serve their clients better, faster and in more cost-

efficient ways. Through the use of online professional networks, companies now have

an opportunity to encourage a dialogue with their customers actively throughout the

lifecycle not only at the point of sale. It also helps them to understand the customer’s

perception about their likings and disliking of the product or service and helps in

acquisition of new customers (Bullas, n.d.). Therefore the most active users will be

selected through this process and will be informed about unique codes. Moreover the

customers will be provided with free SMS facility to reply back. The assigned sales

representatives will call them back to answer their queries and arrange for a free test

drive when they visit the dealer.

4.4. Communications plan for existing customers

When planning the communications campaign, there should be a clear understanding of

the suspects. One of the most important aspects is segmentation of the potential

customers into different groups with similar characteristics. In that case, different

approaches should be implemented to build a relationship with customers.

The loyalty of the existing BMW 3 Series owners is a contributing factor to stimulate

interest to the new BMWi. However, the retention of the existing customers requires

carefully considered steps in each stage of the communications planning process.

The BMWi will be introduced to the existing BMW 3 series users as a part of the BMW

lifestyle which marks a revolution in technology and personal mobility. Since the

customers have been with BMW for 3 years or more the information present in

database about the customers is important. To apply different methods of

communication in compliance with the preferences such as technology, sustainability or

general features of the vehicle. An email will be sent to each customer to understand

their preference. This will help to group them under a particular segment. The response

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of their email will be directly linked to BMW’s database and their specific preference will

be noted for carrying out the communication plan.

Based on these preferences the messages will be directed at each group with different

approaches. The first group of customers interested in technology will be sent

messages detailing the BMWi series cutting edge technology and evolutions, and the

technology delivers unparalleled driving experience. For customers interested in

information about environmental sustainability, energy efficiency and environmental

friendliness and also make them realize that because the BMWi is an electric vehicle it

does not produce any climate damaging emissions during journey (BMW, 2012). The

remaining general customers will be sent messages on the unique selling proposition of

the BMWi in addition to other general features.

The existing BMW owners should be informed that the BMWi series is not inferior to

other BMW car although it runs on electricity it has all the important qualities, engine

performance and specifications that makes up the BMW brand.

4.5. Communications Flow

The BMWi series is a new product and the following steps will be used to communicate

with customers. A pictorial representation of the communication plan is in Appendix 5 .It

was decided to use email and direct mail on the first stage of the communication

campaign that will take place during the first week. Using the existing database of BMW

3 Series owner direct communication will be sent to the customers. This channel might

be seen as a very strong communication channel due to the usage of personalized

letters and emails to deliver messages to each recipient (Tapp, 2008).

After receiving response from the customer the next step of the campaign might be

implemented. However, if the customer rejects the proposal follow-up email or letter

would be sent. The email will contain a link enabling the client to mention the reasons of

declining. After that this information will be transmitted to the database to improve the

message of communication.

The interested customer gets a free SMS facility to send a unique code to the special

mobile number specified in the email or letter. By doing so the client agrees to receive a

follow-up call and then a visit of the sales representative. The personal approach will

increase the level of customer satisfaction and creates interest in each BMW owner.

Visit of the sales representative will help to strengthen the relationships between brand

and customer. The visit will be supported by leaflets and brochures with the detailed

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description of the car and invitation to visit dealer center for test drive. Once the

customer experienced BMWi, have the opportunity to purchase it and become one of

the first buyers. For a given set of circumstances the BMWi owner enters into long-term

relationship with the brand. In turn, the BMW Company can count on the positive

recommendations from the customer and attracting new clients from the reference of

BMWi owner communication.

However, if the customer does not purchase a car after test drive, he/she would be

given an opportunity to fill in the questionnaire. In this questionnaire the customer might

mention the reasons or point out the weaknesses of the car or service. According to this

data, the reason mentioned by customer enters the database and will help to monitor

and constantly check customer satisfaction level.

4.6.Justification of media :

In order to make the campaign successful the media considered has to be consistent as

per AIMRITE (A-Audience, I-Impact, M-message, R-Response ,I-Internal Management,

TE-The End result) Model as per Tapp(2008).This plan will use different mediums to get

to the target audienceand also communicate effectively the reasons we have chosen

the medium of communication is discussed briefly below:

4.6.1. Website:

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The speed of gathering data and effective transaction are more when website is used.

This rate cannot be compared to the telephone or other medium. This medium will be

used to get and send information to the audience because it has a wider reach,

accessibility rate is high and also the speed of gathering data is comparatively high to

other mediums. The conversion rate is also high around 40% (Tilton, 2012).

4.6.2. Email:

This plan will be using emails to get to the target audience, the strength of commercial

email is that the recipients receive them personally with their names along with their

personal emails so they get the notification and gets to read the emails. The email gives

us an avenue to personalize the information and also redirects to specific forums,

Facebook, website and blogs. According to Tapp (2008), it is evident that the

turnaround rate for generating leads through email marketing is 1.73% (DMA, 2010) and

this would be an initial medium of communication which helps in targeting potential

customers.

4.6.3. Direct Mail

The main idea for using a direct mail is to have a customized approach to target

audience by sending the letters to the recipients. The personalized letter signifying the

customized message would be delivered to potential customers.

It is still considered as one of the means of communication even though the response

rate is declining now-a-days due to the introduction of other advance mediums (Tapp,

2008). Direct mail will be used to create awareness among customers targeted as the

conversion rate is 1.38% (DMA, 2010).

4.6.4. Telephone calls:

The Telephone medium will help to build relationship with the customer without being

physically present or having face to face communication. This would be personalized for

each and every customer by means of allocating them sales representatives. The

conversion rate of using telephone is 6.16% (DMA, 2010) for targeting customers. An

average British now-a-days spends over 20 minutes a day on land line or mobile phone

Tapp (2008) for communication.

4.6.5. Blogs and Forums:

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Blogs and forums are a medium of interactive communication which has a level of

effectiveness of 30% in terms of social media marketing according to (Balegno et al,

2011) Survey on Social Media marketing.

4.6.6. SMS:

SMS (Short Message Service) will be used following up email and letter which contains

unique codes. So, it would further help us to increase our conversion rate by 15.4%

(Justin, 2011). Since the response to SMS is free, it would help to get maximum

customer response to our campaign as it is even easy to use by everyone.

4.7. Evaluation:

The evaluation of the campaign can be measured by analyzing the sales figure of

BMWi3 with the actual purchase data available to the company. Besides this the

evaluation of each and every offer can be done through measuring the response rate at

each stage e.g. the number of people using the Free SMS service to text us their unique

codes, number of members on the social media forum (BMWi), number of people

signed up –by online, service and event sign-up etc.

4.8. Testing:

A small scale testing needs to be conducted which will help to understand customers

better. It provides a realistic feedback on the success rate of the communication tool

and helps in achieving expected results. The process of testing for direct mails, a target

of 5000 customers from existing database is considered. These customers are targeted

with eight different communication messages having two different variations of subject,

content and pictures each. The percentage of impact of trying out different creative

element is 33%. This would help us to identify the best effective impactful message to

target our potential customers. Direct mail can be measured by the exact time the mail

is realized by us (Tapp, 2008). See Appendix 6 for the combination of subject, content

and picture. A total budget of £4, 500 is used for testing direct mail. Out of which £2,000

is for creative (www.pickle-design.co.uk) and printing (www.printed.com) and £2,500 is

for postage (www.royalmail.co.uk) for 5000 customers.

5.0. Creative Brief

5.1. Job Description:

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A direct mailer needs to be prepared which will be sent to the target audience. This

mailer need to be designed considering the following factors to achieve maximum

response based on the nature of the customers. It has to be made attractive to give the

premium look of the product.

5.2. Aim

The aim of this campaign is to encourage potential customers to engage with BMWi and

also to position the brand as a lifestyle & sustainable product. The newly innovated

sustainable car should appeal to consumers with an attitude towards alternative

sustainable mobility. They should experience and associate them as part of the BMW

revolution towards eco-sustainable product, without affecting the performance heritage

of the brand.

5.3. Objectives:

The objective of this campaign is to:

To encourage customers to engage with the evolution of BMWi.

To generate 5000 quality leads in a year not costing more than the given budget

of £ 400,000.

To position BMWi as a sustainable product, this will make customers to send

SMS to book a test drive.

The personalized communication plan will make it interactive which helps in generating

maximum participation. Moreover the offers will also generate enough interest within the

targeted audience to respond positively.

5.4. Target Audience:

The profiles of customers targeted through this campaign are explained in earlier

section of the report. However for this particular creative proposition selected VIP

customers are selected among the existing BMW 3 series owners with 3+ years of

experience and on the basis of their interest towards sustainability.

They are generally 55+ years and have high disposable income as they belong to upper

middle class family, early adopters and possess experimenting attitude with entirely new

kind of products like car and technology. Their perceived value of BMW can easily be

20

capitalized by our campaign and convert them to profitable leads. They are very

sophisticated in nature as they prefer to play golf, visit theatres, and do gardening and

greenhouse, holiday in cruise and so on. They already own BMW, so have a clear idea

of BMW’s culture. High interests towards consumption of green household products are

also popular within this segment (ACRON demographic report 2010). The no climate

damaging emission and sustainable qualities of BMWi will definitely encourage them to

participate in the campaign and show their contribution towards a sustainable

environment.

5.5. Components of the offer

There are several offers designed in each step of the campaign to generate maximum

response explained in the communication plan section above. The offer designed to

target this section of VIP customers who are loyal to BMW for last 3 years is “Win

miniature of BMWi”. The offer will encourage the customers to respond quickly as it is

available for first 100 respondents only.

5.6. Central Creative Proposition

The sustainability strategy of the car is the most appealing feature of it. Innovative

battery technology allows steady performance for a longer period. Usage of renewable

raw materials natural fibre in panel and doors also offers the consumers unique

experience of enjoying an efficient and sustainable product. The target consumers for

this creative plan would be reached with an emotional appeal about the various

contemporary environmental concerns and their role towards a green planet for future

generation. This will motivate the customer to come out of their shell of using traditional

combustible engine and encourage them to buy the new BMWi revolution in personal

mobility, technology performance and also enhance their lifestyle without any climate

damaging emission for the future generation. A sample of central creative can be

referred to Appendix 7.

5.7. Substantiation: Reasons to believe

Till date consumers were not accepting electric cars because of its poor engine

performance, lack of reliability and availability of limited models to choose from. BMW

by its latest initiative has taken all these factors into consideration. BMWi offers an

extremely high performance electric motor which provides impressive acceleration of

rest to 100 km/h in just less than eight seconds (BMWi, 2012). Moreover BMW have

also focused in designing the interior of the car with naturally tanned leather seats

21

creating lounge style ambience, use of fibre to look the interior more spacious. The

attractive window graphics, dynamic wedge forward looking shape, offers consumers an

uncompromisingly acceptable sporty electric car model (BMWi, 2012). BMWi 3 concept

also offers an optional extending range for the customers who want a longer driving

range with maximum flexibility. These combined features and heavily customer centric

focus by BMW will create a new benchmark in the electric car industry.

5.8. Key Response

This campaign must encourage customers to feel confident about the product. They

should link the car with their lifestyle. BMW’s brand image, sporty look and the growing

concern towards sustainable environment should motivate them to try the product. They

should think it is worth investing money in the product with high future potential. They

must feel that if they don’t adapt to the changing needs of the society, they will be

considered to be backdated and unsocial. If they adapt they must feel happy, proud,

excited and must consider themselves as trend setters rather than follower, which is a

sense of accomplishment by itself. By the end of the campaign we feel interested

consumers will comment like the following;

“Oh my god! This car looks just awesome. I mean, I want to have an electric car in my

life and finally I found it. It’s new, it’s a German car, It’s perfect”

5.9. Desired Brand Character

The campaign will talk to target customers in a semi-formal and personalized manner.

The communication will focus on excitement and “fun of driving”. The advertising should

stimulate the sense of responsibility towards a sustainable environment and the brand

image of BMW should act as a catalyst.

We want the customers to closely relate BMWi as an environmental sustainable brand,

the future of personal mobility, sophisticated yet stylish and responsible towards the

society.

5.10. Campaign Management and Control

5.10.1. Mandatory Inclusions

The creative campaign must include the picture of BMWi and its official logo, name of

the customer, name of managing director, unique codes; mention of free SMS facility

22

CONSIDERED FOR MEDIUMS TOTAL COST(£)Existing 3 series 1 st email 870.00 Exisiting and new Sign up forms-service and events 123,565.00 Exisiting and new Banners-service and events 9,600.00 All interested existing and new-email Email 11,315.00 Existing 3 series Letter 66,550.00

SMS -FREE 4.50 Phone calls 72,000.00 Trip to museum (refreshment) -100 nos 1,500.00 Brochures-200,000 nos 33,128.00 Postage of brochure 7,782.45 10% on next service off 17,500.00 Miniature -100 nos 3,000.00

All Mediums Testing 40,000.00 Miscellaneous 13,185.05 TOTAL BUDGET 400,000.00

Offers

BUDGET

and the number at which it needs to be sent. The offer of miniature model for first 100

respondents needs to be mentioned. Further contact information like website address,

social media links.

5.10.2. Tracking and Measurement

The performance of the campaign can be measured by keeping a track of the number of

SMS received. This can easily be tracked by the sales and marketing team by the

response rate.

5.10.3. Budget:

The table below shows a breakdown of the budget, the overall allocation was

£400,000.00 and the budget has been maximized to include cost of offers,

communication, testing the remaining has been allocated to other miscellaneous

expenses. The detailed budget of central creative proposition can be referred to

Appendix 8.

23

6.0 Reference

ACRON (2010), CACI report: Demographics 2010, UK available from

http://www.businessballs.com/freespecialresources/acorn-uk-demographics-figures-

2010.pdf accessed on 16th March 2012

Balegno et al, (2011), 2011 Social Marketing benchmark report, available from

http://www.marketingsherpa.com/data/members/benchmark-reports/EXCERPT-PLAIN-

BMR-2011-Social-Marketing.pdf accessed on 16th March 2012

BMW Group (2012), Corporate News, Available from:

http://www.bmwgroup.com/bmwgroup_prod/e/nav/index.html?http://www.bmwgroup.co

m/bmwgroup_prod/e/0_0_www_bmwgroup_com/investor_relations/corporate_news/

news/2011/dividendenmeldung_maerz_2012.html, Accessed on 12/02/2012

BMW Group (2012), Press Release, Available from:

https://www.press.bmwgroup.com/pressclub/p/gb/pressDetail.html?

outputChannelId=8&id=T0124198EN_GB&left_menu_item=node__2205, Accessed on

12/02/2012

BMWi (2012), BMW i3 Concept The Megacity Vehicle, available from

Bullas. J (n.d), 12 Key Findings On Social Media’s Impact on Business and Decision

Making By CEO’s and Managers, available at

http://www.jeffbullas.com/2010/04/05/12-key-findings-on-social-media

%E2%80%99s-impact-on-business-and-decision-making-by-ceos-and-managers/

accessed on 18th March 2012

Direct Marketing Association (2010) Response Rate Report, available from

http://dmdatabases.com/resources/interesting-articles/direct-marketing-articles/direct-

mail-response-rates, accessed 18 March 2012.

http://www.bmw-i.co.uk/en_gb/bmw-i3/ accessed on 15th March 2012

24

https://www.keynote.co.uk/market-intelligence/view/product/2387/social-media-marketing?highlight=social+media+marketing&utm_source=kn.reports.search- accessed on 16th March 2012

Justin (2011),Recent ford SMS Campaign sees 15.4 percent conversion rate, available

at http://www.mobilemarketingwatch.com/recent-ford-sms-campaign-sees-15-4-percent-

conversion-rate-19907/ accessed on 19 March 2012

Kelly, R. (2009) How To Measure Cost per Acquisition, Pearanalytics, 5 January,

available from http://www.pearanalytics.com/blog/2009/how-to-measure-cost-per-

acquisiton/, accessed 12 March 2012.

Keynote (2010) Social Media Marketing Market Assessment 2010I Available from https://www.keynote.co.uk/market-intelligence/view/product/2387/social-media-marketing?highlight=social+media+marketing&utm_source=kn.reports.search Accessed on 16th March 2012

Keynote (2011) Electricity Industry Market Report 2011

https://www.keynote.co.uk/market-intelligence/view/product/10464/electricity-industry?

highlight=electric+cars&utm_source=kn.reports.search-

Mayo. C, (n.d) Marketing Communications, available from

http://www.referenceforbusiness.com/management/Log-Mar/Marketing-

Communication.html, accessed on 18th March 2012

Mintel (2009), Small Green Cars and Alternative Fuels - UK - December 2009, Available from http://oxygen.mintel.com/sinatra/reports/display/id=479525 accessed on 16th March 2012

Nash, E. (1995) Direct Marketing: Strategy, planning, execution, McGraw-Hill, NewYork.

Pickle Design (2012) available form

http://www.pickle-design.co.uk/costs/costs_prices_leaflets.html, accessed on 21st March

2012

Printed (2012), available from http://www.printed.com/create/4/3/ accessed on 21st

March 2012

Roberts, M.L. and Berger, P.D. (1999) Direct marketing management, 2nd Edition, New Jersey, Prentice-Hall.

Rowley. S, (2011), The Guardian: Stars and their electric cars, available from http://www.guardian.co.uk/electric-vision/stars-and-their-cars accessed on 14th March 2012Royal Mail (2012) available from http://www.mailsorttechnical.com/PriceCalculator/results.cfm?

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PostalClass=2&Items=195000&ItemWeight=100&ItemWidth=240&ItemHeight=165&ItemThickness=5&ItemLength=300&ItemDiameter=50&MailpieceShape=Rectangular&tariff=1105092&blnShowAM=true&blnShowSM=false accessed on 21st March 2012

Stone, Mand Shaw, R. (1988) Database Marketing, Gower, London

Tapp, A. (2008) Principles of Direct and Database Marketing: A Digital Orientation, 4th Edition, Harlow, Prentice-Hall.

Tilton. S, (2012). Are Your Content Registration Forms an Entry Point or a Barrier?, available from http://www.contentmarketinginstitute.com/2012/03/content-registration-forms/ accessed on 16th March 2012

Woodcock, N. (1992) Video: the absolute essentials of direct marketing, no 4: Database, Institute of Direct Marketing, Richmond-upon-Thames, Teddington.

7.0 Appendices

7.1 Appendix 1

26

7.2 Appendix 2

Visual Map (existing BMW owners)

Communication Receives

personalized

email or letter

(Based on the

segmentation –

Ecofriendly

lovers,

Technology and

Other General

features)

Call from sales

representative

Visit the

dealer (Test

drive)

Purchase

External Why should I

consider BMW

i?

In what way it is

different from

other AFVs?

Will it have the

same BMW

feel?

Will it go with my

image?

How far can I

drive before it

runs out of

charge? If it,

then what?

What is the

additional set-up

costs involved in

Impact on

environment-

really an eco-

friendly product?

If yes, in what

way?

How safe is it?

Resale value?

Do you provide

financial

support?

Ease of

maintenance –

Any after sales

service?

User

friendliness.

Specific

features?

Other

technical and

safety

features

Payment

specifications

Aim: Finally

getting the real

feel of BMWi

27

it?

Internal Needs to be

adequately

informative and

interesting/

attractive

Should connect

or encourage

the addressee to

enquire further

Aim: Make sure

enough care is

taken so that the

potential

customer

registers or

books a test

drive.

Positive impact

on recurring

expenses

Incentive from

Government

Aim: Convinced

with the product

Convince

them and

take them

onboard for

BMWi

Aim: Try to get

more reference

of potential

customers

28

7.3 Appendix 3

Visual Map (New Customers)

Communication Online and

events sign

up

Emails and

personalized

letters based

on the

segmentatio

n –

Sustainabilit

y,

Technology

and Other

General

features

Specific

forums i.e.

( Faceboo

k, blogs,

websites)

Unique

codes

with free

sms

Call from

sales

representative

Dealer Visit for

test drive

Purchasi

ng this

life style

brand.

External Why should I

purchase

BMW as I

have

absolutely no

idea about

the brand?

What is it so

exciting

about this

vehicle to

switch my

brand?

Would it

match the

specification

s of my

existing car

and what

should I

expect more

from the

brand?

Will this AFV

have the

Would it

make any

difference

regarding

the impact

on

environment-

really an

sustainable

product? If

yes, in what

way?

How are the

performance

and safety

features?

Resale

value?

Do you

provide

financial

support?

Ease of

maintenance

–Any after

User

friendlines

s.

Specific

features?

Other

technical

and safety

features

Payment

specificati

ons

Aim:

Making

the

customer

s to

switch

from their

existing

brand of

cars and

getting

the real

feel of

BMWi.

Convenience

and

procedures

Detail queries

about

specifications

and features,

after sales

service

Insurance

costs

and extra

additional

costs

29

same

performance

of

combustion

engines?

How this is

different from

other AFV’s?

Will it match

my life style

image?

What is the

additional

set-up costs

involved in

it?

sales

service?

Internal Needs to be

adequately

informative

and

interesting/

attractive

Connect or

encourage

the

addressee

for further

enquiry

Aim: To

understand

the

requirements

and

preferences

of the

customers

and taking

personalized

approach so

that we have

Utilize the

current

incentive

scheme

from

Government

and inspiring

them to be a

part of this

Green

Revolution

Aim:

Convincing

offers with

the product

Convince

them and

take them

on board

for BMWi

Aim: Try

to

accumula

te new

customer

s and

expandin

g the

territory

of BMW

in terms

sales.

Booking for

test drive

Filling in forms

and completing

other formalities

Successf

ully

closing

the deal.

30

a positive

response

from the new

customers

and influence

them for a

test drive to

have a real

feel of

modern

German

engineering

7.4 Appendix 4

31

Stages of Communication Plan

Stages Contact

timing or

positioning

in

sequence

Offer /

incentives

Creative

treatment /

message

media Response

(time and

form)

Stage

one

Existing data

base and

register and

signup

Introduce

platforms for

techy greeny

and general

Email, letters,

signup website

Signup join

forum SMS

unique code

Stage

two

Customers

that shows

interest

Gets unique code

and a dedicated

representative

Personalized

treatment and

get

information

about the

product and

other events

Email, letters,

website,

Facebook page,

forums(chat

rooms)

Activeness with

the forum,

Facebook page,

dedicated

representative

and

positiveness

about the

product

Stage

three

Acquired

customers

Send them

personalized

brochure through

a representative

or dealers

Personalized

brochure

Emails, letters

post dealers

and sales

representative

Choice of

colour interior

and features

Stage

fourAcquired

customers

These group will be

invited to an event

and also be given

an opportunity for

test driving the

BMWi

Event and test

driving

opportunity

Emails, letter,

phone calls

Accept the

invitation by

replying to the

email and

letters

7.5 Appendix 5

32

7.6 Appendix 633

Testing

Creative A in relation to sustainability of the car

-Subject A which speaks about the product

-Content A which describes the features of the product

-Picture A of BMWi car in a road

Creative B- in relation to customer’s contribution to society

-Subject B which speaks about the role of customer contribution to the society

-Content B which describes the sustainability the car

-Picture A of BMWi car in a golf course amidst green

Offer Testing Matrix

Offer

Number

Offer 1 Offer 2 Offer 3 Offer 4 Offer 5 Offer 6 Offer 7 Offer 8

Subject A A A B B B A B

Content A A B B B A B A

Picture A B B B A A A B

34

7.7 Appendix 7

BMWiFenham BarracksNewcastle Upon TyneTyne and Wear, NE2 4LE

www.BMW-i.co.uk

23rd March 2012

Dear Mr King,

We would like to take this opportunity to thank you for showing interest and applying for the brochure. Hope you have enjoyed reading through it.

BMW is committed to developing sustainable automobiles and providing excellent service. Enclosed is information on how you can WIN a MINATURE of BMWi and arrange a TEST DRIVE of the new BMW i3. This is the mobility that matches the lifestyle of the future with no climate emissions enabling us to move towards a cleaner environment. Follow the instruction below to arrange a test drive and a chance to win a BMW miniature.

Simply send a FREE SMS to 55454 with the code: BWI055

GET A CHANCE TO BE ONE OF THE FIRST 100 TO WIN *

We have started our move to make the world a better place to live, and we believe that you will enjoy making it even better by driving the BMWi3. Visit us www.bmw-i.co.uk or call 0800 325 600 for more information about this visionary concept.

We look forward to hearing from you very soon.

Yours Sincerely,

Tim AbbottManaging DirectorBMW Group

Legal notice. Copyright 2012 BMW (UK) Ltd. All rights reserved. *Terms and Conditions apply

7.8 Appendix 8

35

Budget – (For chosen medium – Direct Mail for Existing Customers)

Sl.No Item Quantity/Comments Cost

1 Cost of Data Existing database £0

2 Cost of Creative Development 1no. £300

3 Cost of printing 195,000 nos.(A4 ,Portrait, Single

side print ,Glossy, No

lamination,130 gsm)

£17,500

4 Cost of postage 0.25 p/mail for 195,000 nos £48,750

TOTAL BUDGET £66,550

36