BBDO agency project - Research Paper Example

?BBDO Agency Project Introduction The purpose of the following document is to provide details of the creative marketing campaign and proposed campaign ideas and marketing communications strategies for the BBDO Agency’s campaign to launch the 2012 McLaren MP4-12C in the United Arab Emirates market. The author of this report will demonstrate the opportunities that exist for the McLaren brand in the United Arab Emirates. The target market represents a significant consumer segment that remains highly receptive to the McLaren brand and displays high purchasing intention. This is an affluent market motivated by luxury, status and the performance engine, all trademarks of the McLaren brand. This report also identifies and describes the consumer segments that the campaign intends to target, including the target market’s demographics, psychographics, and VALS. In addition, this report includes a SWOT analysis, a detailed description of the marketing mix and a discussion of the future outcomes of the outcomes. 1. Table of Contents 1. Executive Summary 2 1.1 Objectives 2 1.2 Results 3 1.3 Key Findings 3 1.4 Conclusions and Recommendations 3 2. Objective of the Agency and Organization….. 3 2.1 Background of the McLaren MP4-12C 4 3. History and Background of BBDO 5 4. Market Research 6 4.1 McLaren MP4-12C Survey Responses 6 5. Consumer Segment 10 5.1 Target Market Attributes 11 6. Campaign Ideas 12 7. SWOT Analysis 14 8. Recommendations and Conclusions 15 8. References 17 1. Executive Summary The purpose of the following report is to present the campaign ideas in regards to the McLaren MP4-12C product offering in the United Arab Emirates, specifically Abu Dhabi and Dubai. The main purpose of the report is to describe the target McLaren MP4-12C that exists in this market, and to highlight the attitudes and purchasing intention among these consumers that the McLaren MP4-12C brand can capitalize upon in 2012. Established in 1989, the McLaren Automotive brand operates as an exclusive luxury performance vehicle brand primarily in the United States and Europe; however, global opportunities exist for this product offering, and the survey results indicate a very high level of satisfaction with the quality of the brand. McLaren Automotive recently expanded its operations into the Asia Pacific region, and the McLaren MP4-12C now sells through a number of selected vendors in Qatar, Bahrain, Saudi Arabia, Kuwait, South Africa and the United Arab Emirates, specifically Abu Dhabi and Dubai. 1.1 Objectives The objectives of this research report were to ascertain the perceived value and level of satisfaction with the McLaren MP4-12C product offering among consumers. The research report author utilized the Qualtrics Survey Software tool to compile and tabulate responses from 29 consumers. The results are displayed in table form in section 4 of this report. In addition, the objective of this report is to demonstrate the high brand equity that the McLaren brand already enjoys in the United Arab Emirates, and to leverage this consumer appreciation completely and strategically. 1.2 Results The initial results of the survey indicate a very high level of satisfaction with the product offering. 77 percent of the respondents indicated that they were very satisfied with the McLaren MP4-12C product offering. In addition, the McLaren MP4-12C enjoys high brand recognition and significant brand equity among the consumers surveyed. 1.3 Key Findings The report indicates that the product has a strong appeal among the consumers surveyed. It also indicates that the perceived exclusivity of the McLaren brand remains the key competitive advantage for the McLaren MP4-12C product offering. In addition, the results indicate that the McLaren MP4-12C could position the product offering as a luxury item in key luxury market segments in the United Arab Emirates. 1.4 Conclusions and Recommendations The research report author concludes that the product is a very strong offering and that consumer appeal in the United Arab Emirates is high. The research report author recommends that the McLaren MP4-12C undertakes an expansion strategy into this key market. Opportunites exist to position the product as a luxury item in the United Arab Emirates. 2. Objective of the Agency and Organization The BBDO agency intends to put forward a comprehensive marketing and advertising strategy that targets the key McLaren demographic in the United Arab Emirates. The agency’s objective is to work closely with our partners in the United Arab Emirates to position the McLaren MP4-12C as the premier luxury performance vehicle ahead of the brand’s top competitors Ferrari and Porsche. Aside from using the quantitative insight into current consumer response toward the product offering, the BBDO is committed to leveraging its creativity to position the product offering as a performance vehicle that is a cut above the competition – more rare, more exclusive, and therefore a more apparent symbol of status. The luxury sector in the Middle East represents both a mature and an emerging market, and the agency is confident that the innovation and performance at the heart of the McLaren product offering will enjoy tremendous growth in the region in the next three to five years. The report points to the value that the target market places upon exclusivity and engine performance as the main drivers that the agency and our partners in the United Arab Emirates will use to build sales and develop a strong brand reputation for the McLaren MP4-12C. 2.1 Background of the McLaren MP4-12C The McLaren MP4-12C is a two-seater performance automobile that McLaren Automotive officially launched in 2011, after its design was officially made public in September of 2009 (Barlow, 2011, para. 1). The McLaren MP4-12C marks the first product completely designed and produced in-house by the company since the McLaren F1 in 1998 (Barlow, 2011, para. 1). To maintain its trademark lightness, the McLaren MP4-12C uses carbon fiber to keep the car as light as possible (Barlow, 2011, para. 1). The sports car is produced at McLaren’s Woking Production Centre in Woking, Surrey, in the United Kingdom and offers a 600 bhp V8 engine (AutoMiddleEast, 2012, para. 2). The McLaren MP4-12C retails for approximately 236, 000 EUR or 1,150, 000 AED in Dubai, United Arab Emirates (James List, 2012, para. 1). At present, the official McLaren dealership in the United Arab Emirates that the BBDO agency will be working with throughout the campaign is Al Habtoor Motors, the exclusive distributor of McLaren brand in Dubai and Abu Dhabi. 3. The BBDO Agency History and Background The BBDO advertising agency was founded in 1891 by George Batten (BBDO.com, 2012, para. 1). At that time the company was known as the Batten Company (BBDO.com, 2012, para. 1). In 1928 Batten merged with three others partners – Barton, Durstine and Osborn – and the BBDO agency was born (BBDO.com, 2012, para. 1). Since then, the BBDO agency has grown to generate upwards of 23 million dollars in annual sales and house over 17, 000 employees worldwide (BBDO.com, 2012, para. 1; Morrison, 2012). The company’s main headquarters are located in New York City (BBDO.com, 2012, para. 1). BBDO was acquired by the Omnicom Group in 1986 (BBDO.com, 2012, para. 1). The Omnicom Group is a holding company based in New York City that specializes in global media, marketing, interactive media, digital media, advertising and media buying; some of its other subsidiaries include DDB Worldwide and TBWA Worldwide (Omnicom Group.com, 2012, para. 1). In 2010, the Omnicom Group earned over 827 million dollars of net income from its brand advertising and marketing endeavors; of this revenue, 53 per cent was produced in the United States and 47 per cent was generated elsewhere in the world (Omnicom Group.com, 2012, para. 2). 4. Market Research The research report author conducted a consumer survey of attitudes toward the product offering, the McLaren MP4-12C, in the United Arab Emirates. A total of 29 responses were received and input. The minimum value, maximum value, mean, variance and standard deviation of the response data were then calculated. The questions posed to the survey respondents were as follows: 1. To what extent would you consider purchasing a McLaren MP4-12C? 2. Please rate these components in importance for you when purchasing a performance vehicle? 3. Please indicate how well the following statements describe the McLaren MP4-12C? 4. Please select the response that best indicates your satisfaction with McLaren MP4-12C? 5. What is your combined annual household income? 4.1 Initial Market Research Survey Responses Last Modified: 03/23/2012 1. To what extent would you consider purchasing a McLaren MP4-12C? # Question 1 2 3 4 5 Responses Mean 1 Unlikely: Likely 1 1 2 8 17 29 4.34 Statistic Unlikely: Likely Min Value 1 Max Value 5 Mean 4.34 Variance 1.02 Standard Deviation 1.01 Total Responses 29 2. Please rate these components in importance for you when purchasing a performance vehicle: # Question Not at all Important Very Unimportant Neither Important nor Unimportant Very Important Extremely Important Responses Mean 1 Power 0 1 0 3 18 22 4.73 2 Appearance 0 1 0 14 7 22 4.23 3 Warranty & Service 0 1 13 6 2 22 3.41 4 Packaging & Promotion 1 2 8 8 3 22 3.45 5 Price 0 1 6 11 4 22 3.82 6 Convenience of Ordering & Delivery 0 1 3 13 5 22 4.00 Statistic Power Appearance Warranty & Service Packaging & Promotion Price Convenience of Ordering & Delivery Min Value 2 2 2 1 2 2 Max Value 5 5 5 5 5 5 Mean 4.73 4.23 3.41 3.45 3.82 4.00 Variance 0.49 0.47 0.54 1.02 0.63 0.57 Standard Deviation 0.70 0.69 0.73 1.01 0.80 0.76 Total Responses 22 22 22 22 22 22 3. Please indicate how well the following statements describe the McLaren MP4-12C. # Question Not at all Slightly Moderately Very Responses Mean 1 This is a rare product 2 1 11 8 22 3.14 2 This product is for an exclusive group or niche 1 1 7 13 22 3.45 4 This product looks like it is custom made 0 0 4 18 22 3.82 5 This is something that others will not have 0 3 8 11 22 3.36 7 This product is special 5 9 5 3 22 2.27 8 This product is different and unusual 0 6 10 6 22 3.00 10 This product has great WOW factor 0 2 9 11 22 3.41 Statistic This is a rare product This product is for an exclusive group or niche This product looks like it is custom made This is something that others will not have This product is special This product is different and unusual This product has great WOW factor Min Value 1 1 3 2 1 2 2 Max Value 4 4 4 4 4 4 4 Mean 3.14 3.45 3.82 3.36 2.27 3.00 3.41 Variance 0.79 0.64 0.16 0.53 0.97 0.57 0.44 Standard Deviation 0.89 0.80 0.39 0.73 0.98 0.76 0.67 Total Responses 22 22 22 22 22 22 22 4. Satisfaction: Please select the response that best indicates your satisfaction with the McLaren MP4-12C. # Answer Response % 1 Very Dissatisfied 0 0% 2 Dissatisfied 0 0% 3 Neither 0 0% 4 Satisfied 5 23% 5 Very Satisfied 17 77% Total 22 100% Statistic Value Min Value 4 Max Value 5 Mean 4.77 Variance 0.18 Standard Deviation 0.43 Total Responses 22 Statistic Value Min Value 2 Max Value 4 Mean 3.07 Variance 0.64 Standard Deviation 0.80 Total Responses 29 5.  What is your combined annual household income? # Answer Response % 1 under $50,000 1 5% 2 50,000-69,999 0 0% 3 70,000-89,999 5 23% 4 90,000-109,999 3 14% 5 110,000-199,999 3 14% 6 200,000-499,999 4 18% 7 500,000 + up 6 27% Total 22 100% Statistic Value Min Value 1 Max Value 7 Mean 4.95 Variance 3.19 Standard Deviation 1.79 Total Responses 22 5. Consumer Segment The following section includes an in-depth discussion of the key consumer segment that the BBDO agency will target through the McLaren MP4-12C campaign. For the McLaren MP4-12C campaign to succeed in the United Arab Emirates, a thorough understanding of the demographics, psychographics, buying behavior and purchase motivations for the target market will be crucial. In the luxury performance car consumer market, the price needs to be premium to maintain the exclusivity and status associated with the product offering. The McLaren MP4-12C retails for approximately 236, 000 EUR or 1,150, 000 AED in the United Arab Emirates (McLaren Automotive, 2011). The affluence of the target market and the main purpose of the purchase – to discover and experience a luxury performance vehicle and achieve an unparalleled experience of the power of its engineering – will influence the luxury performance car consumer’s choices. Luxury performance car clientele have an expectation of customer service, uniqueness and lavishness that transcends the traditional lowest price model that describes traditional budget and mileage conscious automobile consumers. 5.1 Target Market The target market for the BBDO McLaren MP4-12C will be male, 45+ and affluent. This consumer segment will be well educated, possessing a MBA or higher, and in many cases will be an entrepreneur. This consumer will be health conscious and will be amenable to paying premium prices for high quality, highly original experiences and to achieve a greater social status than his peers. The VAL type of this consumer is the Innovator (Strategic Business Insights, 2012, para. 1). As such, the McLaren MP4-12C will appeal to this consumer because he enjoys significant personal and financial success and he is motivated to use his financial resources to purchase heightened social image and reach. The Innovator target market is populated by “take-charge people with high self-esteem…[they] are change leaders and are the most receptive to new ideas and technologies. Innovators are very active consumers, and their purchases reflect cultivated tastes for upscale, niche products and services” (Strategic Business Insights, 2012, para. 1). Image remains a key aspect of the Innovator’s self concept, because it speaks to his independence and entrepreneurial spirit (Strategic Business Insights, 2012, para. 2). In addition, Innovators are drawn to and appreciate cutting edge technology such as the top tier engineering found in the McLaren MP4-12C. Other attributes of this market include technological prowess, economic advantage, and typically the type of leadership role found in business and government. This market will also be comprised of seasoned luxury performance vehicle consumers familiar with other luxury performance cars such as Porsche and Ferrari. Indeed, many in this target market will be former or current owners of McLaren’s direct competitors. As such expectations will be high and the BBDO agency is committed to providing the quintessential luxury performance car experience in Abu Dhabi, Dubai, and the United Arab Emirates at large. 6. Campaign Ideas The Yas Marina Circuit www.yasmarinacircuit.com/ is a world class race track located on Yas Island in Abu Dhabi. The entertainment and tourist complex contains the Yas Marina Circuit, a world class racing facility that became the official home of the Formula One™ Abu Dhabi Grand Prix in October of 2009. The track was revealed via the last race of the 2009 World Championships, the first Formula One™ Etihad Airways Abu Dhabi Grand Prix, to over 50,000 Formula One™ enthusiasts (Yas Marina Circuit, 2011, para. 1). The realization of the Yas Island Marina Circuit involved two years of planning, the work of 14,000 employees, and over 35 million construction man hours to be achieved (Yas Marina Circuit, 2011, para. 1). Upon its completion, the Yas Marina Circuit was quickly recognized as “one of the most technologically advanced circuits in the world” (Yas Marina Circuit, 2011, para. 1). The facility functions as a training track as well as local home for the development and support of motor sporting events in the United Arab Emirates and the Middle East at large (Yas Marina Circuit, 2011). According to the Yas Marina Circuit (2011), the goal of the facility’s owners is to “have a UAE national competing as a driver in F1™ within 10 years” (Yas Marina Circuit, 2011, para. 6). The multi-faceted facility was embraced by the Abu Dhabi public as well as the world at large. “The whole of UAE was eager to take in the beautiful landscaping, traditional Arabic culture and welcoming hospitality alongside sensational on-track action. Yas Marina Circuit would encourage the growth of sporting culture in the UAE and soon become the centre for motorsport excellence in the Middle East” (Yas Marina Circuit, 2011, para. 4). The Yas Island Marina Circuit will function as the core location in the BBDO McLaren MP4-12C campaign. The Yas Marina Circuit attracts a world class audience of race enthusiasts and from all over the world, and the target market at the heart of the campaign will be an avid race fan that frequents this destination. In addition to the race track, the Yas Island complex houses the Ferrari World Abu Dhabi Theme Park, the world’s largest indoor theme park that houses more than 20 rides, including the fastest roller coaster in the world, the Formula Rossa, and serves as an ideal location for the campaign’s strategic marketing headquarters. While the Yas Island complex is still in its infancy, the facility contains enormous potential and will continue to diversify and develop its world class offerings over the next few years. BBDO is thrilled to be strategically partnered with this innovative initiative, and the agency intends to leverage the partnership throughout the campaign, organizing test drives in the McLaren MP4-12C, as well as opportunities for car enthusiasts to ride shotgun with race car drivers as they unleash the full potential of the amazing McLaren MP4-12C engine. The Yas Marina Circuit currently offers the F1 style Single Seater experience for Formula One fans as well as anyone who is curious about the sport of racing (Yas Marina Circuit, 2011). This activity offers the supreme race experience, as race enthusiasts are buckled in to the 180BHP Single Seater, given a full lesson by the professional instructors employed by the race track, and brought to the race track where they can drive the 180BHP Single Seater behind the pace car for a full 20 minute drive (Yas Marina Circuit, 2011). BBDO intends to top this experience by partnering McLaren enthusiasts with professional Formula One race car drivers, so that the target market can experience the machine at its top speeds and then test drive the performance vehicle themselves. BBDO is confident that this experience will be so thrilling and so unique for the target market that they will develop enhanced purchasing intention as a result. In addition, because the Yas Marina Circuit is such a hot luxury tourist destination, the potential for brand extension is very high for target market consumers returning to their home countries elsewhere in the Asia Pacific region impressed with the product offering and highly motivated to purchase it. 7. SWOT Analysis The BBDO agency conducted an extensive and thorough analysis of the strengths, weaknesses, opportunities, and threats that will likely have an impact upon this campaign in the coming months and years. The purpose of the SWOT analysis is to create a document that will offer all stakeholders grounds for future discussion from a strategic perspective. The following SWOT analysis provides detail for areas of concern for all stakeholders in the campaign, as well as areas that represent significant growth potential for the brand in the United Arab Emirates. 8. Recommendation and Conclusions The results of the initial consumer survey indicate that the McLaren brand benefits from treatment as a rare niche performance vehicle with luxury appeal. The experience of the product offering – namely, the high performance engine and world class engineering – represents the key appeal of this product. As such, the future opportunities for the McLaren MP4-12C lie in a marketing strategy that positions the product exclusively in a highly attractive location, the Yas Marina Circuit, so that the target market consumers can achieve a hands-on experience of the product. In addition, the target market consumer located in the United Arab Emirates already associates the McLaren brand with status, performance, and prestige, and the car functions as a symbol of power and independence that is important to this demographic. Expansion opportunities to reach this segment both in the United Arab Emirates and throughout the Asia Pacific region abound. The report also indicates that the competitive advantage of the McLaren MP4-12C remains its commitment to high performance. Continued commitment to innovation will serve the growth strategy of the McLaren MP4-12C both in the United Arab Emirates and beyond. References AutoMiddleEast.com (n.d.). Dubai and Abu Dhabi to get new McLaren dealerships. Retrieved from http://automiddleeast.com/2010/05/22/headline/dubai-and-abu-dhabi-to-get-new-mclaren-dealerships/ Barlow, J. (2011). McLaren’s new MP4-12C: First impressions. Top Gear BBDO.com. (2012). Retrieved from http://www.bbdo.com/#!&pageid=0&subsection=0&itemid=683 James List. (2012). 2012 McLaren MP4-12C. Retrieved from http://www.jameslist.com/advert/395528/for-sale-mclaren-mp4-12c Morrison, M. (2012, January 23). BBDO is no. 3 on Ad Age’s agency A-list. Retrieved from http://adage.com/article/special-report-agency-alist/bbdo-3-ad-age-s-agency-a-list/232205/ Omnicom Group. (2012). Retrieved from http://www.omnicomgroup.com/AboutOmnicomGroup McLaren Automotive. (2011). http://media.mclarenautomotive.com/release/113/ Strategic Business Insights (2012). Innovators. Retrieved from http://strategicbusinessinsights.com/vals/ustypes/innovators.shtml Yas Marina Circuit (2011). Who we are. Retrieved from http://www.yasmarinacircuit.com/en/content.aspx?gid=7 Read More