Name: SENTHIL N VELU

ID # 1403024

Case 1 # THE SIMS ONLINE

Background:

EA sports is a market leader in the field of PC and handheld gaming software. EA Sports had successfully created a profitable eco-system to harness the growing market demand for PC gaming systems. EA’s posters child in the PC gaming sphere was titled “The SIMS”. The SIMS was a non-combat game which allowed its users to create a virtual world for themselves and control and rule that world with “God” like powers. Players were in total control of their virtual avatar and would customize the gaming environment to their liking.

Challenge:

EA Sports would invest time and material for up to 3 years in R&D to develop new software games. Their latest foray in, new product development, involved developing a multi-player online game which was based on their big ticket items, “The SIMS”. EA had in the past, mastered the art of product promotion and pricing by producing several winners in the North America, Europe, Asia and Japanese markets. The traditional pricing model required a one-time purchase of the gaming CD by a customer. EA sports was attempting to disrupt the tradition pricing model, by introducing a subscription model. The subscription model, involved purchasing the gaming CD as a one-time purchase from a retail store, and there on subscribing to a monthly service by paying a retainer fee every month.

#1: The SIMS, PC version was a popular game which had a large following of customers. The customer demographic was dominated by young women.

#2: The only online multiplayer games available in the market were extremely intense and involved hard core games who would spend up to 20 hours a week playing the online version.

#3: The typical subscription fee charged for online games was $9. EA had to price their TSO version by factoring the volume of customers and overall profitability.

#4: EA’s largest customer base were teenagers who did not have access to credit cards. The subscription model envisaged by EA required registering online using a credit card and making payment online.

RECOMMENDATION:

#1: Product: EA should realize that their online version of the game was a different product when compared to the original PC version. The players who were accustomed to playing their PC version had complete control of their characters and played using the ‘God’ version. They could create and destroy assets based on their whim. The online multi player version on the other hand removed the ‘God’ like powers out of the hands of the players. Each player, now, had limited control over themselves only. The players had to learn to co-exist with others in a virtual environment. This involved a huge behavioral change amongst the players. Hence EA, should realize that their online version was in fact a different product when compared to their PC version.

#2: Target Market: The success of their online subscription model, was contingent on the ease with which players could sign up for the gaming experience. EA should also ensure that they target a demographic segment which could pay for their online experience hassle free. Teenagers who were their biggest customer base did not have access to credit cards and were dependent on their parents. Hence, EA should target their marketing campaigns on the people who are in the age bracket of 25+ to 35. This demographic were prone to playing long hours online and would adopt the subscription model with ease. EA should provide a free 2/3 month trial of the online gaming experience along with the first purchase of the CD hard disk purchase at the retail store.

#3: Marketing Campaign: EA should adopt a multi-pronged marketing campaign, once during the pre-launch period and later at the post launch phase. The pre-launch phase campaign should target both past SIMS players and new prospects. The launch should involve, a free online trial version. A dedicated website, which can give the skeptical visitor a free trial of the SIMS experience.

The post launch marketing campaign, should be initiated at the end of the free trial period of 1-3 months after purchasing the CD. The CD could be pre-programmed to carry banner advertisements reminding the customer to renew his monthly subscription at the end of the free trial. New software patches and companion modules should be introduced to the market at the end of the first 2 months since the launch of the product.

#4: Pricing: The online SIMS should be priced as a premium product with a premium subscription price tag. The CD can be packaged at $60 along with a monthly subscription of $14. Discounts can be offered later based on customer adoption.

#5: Online and Tele Service Help: EA should provide both online and tele-service help to first time gamers who have questions about the game and the online version.

#6: Easy Registration: EA customers should be able to register online with the absolute minimum paper work and fuss. An email address should be sufficient to register and play.

Name: SENTHIL NATHAN VELU

ID # 1403024

Case 2 # THE ULTIMATE DRIVING MACHINE – BMW

Background: In the shadows of a declining marketing share in the US automobile market, Carl Gerlinger, took up the reins of CMO at BMW in North America. Carl, was entrusted with the demanding task of stopping the downward spiral which the auto maker BMW found itself in and rally a comeback. The parent company in Germany, realized that if they continue losing market share in the US to Japanese auto makers, it was only a matter of time, before their dominant position in Europe would be tested.

Challenge:

#1: Stop the loss of premium auto market share to the likes of Lexus & Acura.

#2: Increase US BMW sales to 100,000 units

#3: Transform the BMW brand image which was until then perceived as pretentious.

#4: Champion a dealer network which was fast losing patience and faith in the BMW brand.

RECOMMENDATION & OBSERVATION:

#1 Integrated Marketing Campaign: Carl Gerlinger, designed and executed a stellar integrated marketing campaign which involved 3 principal pillars:

1. Brand & Product: Carl, refrained from jumping into a price war with the Japanese car makers. Instead, he focused on delivering a product with a high value addition to the end customer. The revamped 3, 5, and 7 series BMW automobiles were fitted with powerful and durable engines. The cars’ were touted to increase the drive experience and make the customer a better driver. The punch line, “The Ultimate Driving Machine” was emphasized in all marketing campaigns.

2. Franchise: The broad message was that BMW was focused on customer orientation.

3. Organization & People: Inculcate a feeling of pride amongst their employees.

#2 Local Manufacturing: During a phase when Americans, were inclined to buy products, ‘Made in America’, along came BMW with an assembly line in South Carolina. The strategy to build and manufacture BMW cars, locally in the US was a master stroke which conveyed the message that the company had vested interests to invest and stay in the US.

#3 Mending ways with Dealers: BMW had a rough relationship with its dealership network until the arrival of Carl. To ensure a successful launch of their premium brand of cars, BMW had to ensure a smoother relationship with their dealers and create exclusive dealerships which catered exclusively to BMW. The outbound sales team at BMW was restricted to have a single point of contact to interact with each dealership. The single point of contact, Dealer Manager, would in turn work with 3 consultants internally to support the dealer.

#4 Marketing Campaign: BMW did well to focus its marketing campaign to echo the engineering superiority of their product and enhance the customer perception of the automobile. Their original marketing campaigns targeted the lifestyle led by BMW owners and was perceived pretentious. The revamped campaigns focused on the superior specifications of the automobile and the user friendly features. All marketing campaigns focused on how the BMW would enhance the drive quality.

#5 Focus on Customer Care: BMW enhanced their post sales service to include, road side assistance, a 24 hour customer hot line, and a no charge maintenance plan on the premium 5 & 7 series.