Digital and Media Environment

Digital and Media Environment

Session 2011/12

MINI Countryman

Task One (40%)

Individual Presentation and Executive Summary (1 page)

Task Two (60%)

Individual Media Appraisal Report (2000 words)

MINI COUNTRYMAN

It is 2010 and on 18 September 2010, the MINI Countryman is to be reborn with increased size a key feature. It is longer, wider and taller than the MINI Clubman and comes armed with a four-wheel drive option – a new proposition from the MINI range.

Significant investment has been made in design, performance and customer options in order to take advantage of changing customer needs and technology. The new MINI Countryman is targeted at customers seeking style, individuality and performance, so key to their proposition. In producing the ‘ALL4’ (four-wheel drive) version, MINI has stayed true to its roots and re-produced the go-kart feeling that is so familiar to MINI drivers. Although smaller outside to competitor models such as the VW Golf - with a full boot (up to 1,170L) and decent interior room, on the inside it is bigger than such cars as the BMW X1. Space even for the taller adults.

It will appeal to urbanites who want a higher driving position and more space for the kids, shop at Ikea and lead an active life. It will also appeal to rural types who want a MINI with space that will perform. The interior has had a real facelift, with a more sophisticated trim, plus the new ‘MINI Centre Rail’ enabling such options as iPod docks and phone chargers, cup holders, arm rests, even sunglasses cases, located anywhere along the rail. Multi-functional rear seats add to flexibility with three rear seats as standard but with an option for two individual seats and an extended centre rail. Due to engine efficiency, fixed-cost servicing and finance options, the MINI is being marketed as a sound company car option.

Reasonably priced at £16,000 entry level, increasing to £20,810 for the Countryman Cooper S. Note the ‘ALL4’ version is only optional on the Cooper S (£1,220 extra) and Cooper D (£1,055 extra). The 1.6L (184bhp) petrol engine will be augmented by a range of new BMW-provided diesel engines. Wheels come in a wide range of options from 16in standard to 19in specials.

New car sales remained depressed in the UK throughout 2009, although recent economic figures suggest the UK is now slowly emerging from recession, though there is still the threat of a potential double-dip. MINI are acutely aware the launch of their new model in September 2010 will need to make very effective use of their existing UK MINI database (see Appendix 1), in addition to attracting new customers. In the US, social media has proven to be particularly effective at retaining existing MINI customers and facebook is now being actively used in the UK.

A key goal is for new MINIs to be handled by dedicated MINI dealer network. There are circa 80 mini-only outlets in the UK. The media campaign will include a £3 million budget for awareness and image advertising. Its aim is to manage the lead generation programme for its 80 dealers including the management of initial response through to the confirmation of attendance at test drive appointments. The budget required for direct response advertising is subject to your recommendations regarding the amount required to achieve the target number of test drive appointments. Note: it is not part of your remit to actually sell the cars. You are simply focused on generating awareness and response in order to achieve the targeted number of test drives at MINI-only dealerships.

The company has previous results from a test campaign which have shown a 3.5% response to direct mail activity. These prospects ring a response line to book a test drive appointment. Online advertising in the form of banner ads carried on affiliate sites have recorded a relatively good click-through rate of 0.6% and a conversion rate from click-throughs to booking a test drive online of 10%.

A lifestyle database for direct mail use has been sourced for customer acquisition which includes comprehensive demographic and car ownership data on one million new car purchasers over the last 3 years. Various selections including model and date of purchase are available. A further database provided by a digital intermediary includes opted-in email addresses for 150,000 people who have provided personal data to help in an online search for a new car. Lists are available at a cost of £110 per 1000 names selected. National Press is also seen by the company as being a major acquisition source – see Appendix 2.

MINI will use its current telephone marketing bureau for all inbound and outbound telemarketing activity. Costs are shown in Appendix 3.

Information provided by the company has shown that one in four test drives results in an actual purchase. Approximately 50% of all appointments booked by telephone actually show up for the test drive whereas the figure for those booking online via the company’s website is just 15%. No data apart from name and telephone number is captured when appointments are made.

TASK 1: (marks = 40% of unit)

Individual presentation and accompanying 1 page Executive Summary (maximum 1 page, using Arial font size 10) summarising key points of presentation. 40% unit assessment.

Individual student presentation and accompanying executive summary should include the following elements:

A brief analysis of the issues related to the case.
Clear objectives for the 12-month media campaign, starting June 2010.
Discussion of segmentation and targeting decisions.
Selection of channels and media for image and awareness advertising.
Media choices and the contact plan to generate direct response and maximise the number of qualified prospects who actually turn up for the test drive
A clear recommendation on the direct response and total budget required to achieve 36,000 test drives

Presentation (40% of the marks available):

Absolute maximum 15 slide presentation – content exceeding this length will not be marked. Presentation to be submitted in PowerPoint format.
Podcast / audio recording of 20 minute maximum should accompany the PowerPoint file – this will be listened to while following your PowerPoint file.
Covers Analysis Media Strategy and Contact Plan.
1xA4 page (single sided) Executive Summary document of no more than 700 words.
The document and audio file should be submitted in electronic format to be viewed on a PC.

There are two outputs for the presentation. The most heavily weighted element is the actual presentation (80%). A lower but still significant weighting is given to the executive summary (20%) which provides a summary of the key points raised in the presentation.

Your presentation is measured in terms of its effectiveness in answering the tasks listed in the brief 1 to 6 (listed above). Your actual presentation skills will not be part of the assessment but the balance of content will influence the recipient’s understanding of your work. You will therefore need to ensure that your presentation conforms to the following guidelines:

The material presented will address the issues raised in tasks 1 to 6 in approximately equal measure.

Failure to address a specific task may result in fail marks for that component of the task.

The detailed communications plan is the subject of the individual assignment, not the presentation.

Please note that there is no requirement to attach market sector reports as appendices to the document. Please reference any reports accessed at the end of your accompanying document.

NB. You may assume response rates from your test market to demonstrate the potential results from your roll-out recommendations. Your response projections should, however, be conservative.

N.B. It may be advisable to arrange a meeting with the unit leader whilst undertaking this assessment. If this is not possible face-to-face, then by phone.

Presentation Assignment: Analysis and Strategy Presentation & Executive Summary (40%). Student:

Component

E/Absolute Fail

(0 - 20%) /

D/Marginal

(20 to 49%) /

C/Pass

(50 – 59%) /

B/Merit

(60 – 69%) /

A/Dist

(70+)

1. A summary of the key issues arising from the case

No/very poor summary of the key issues drawn from the case

/ Weak/flawed summary related to the product / market environment /

Adequate, descriptive summary produced with limited insight

Good summary of the product/market with useful observations

Exceptional summary of the product/market including useful consumer insight

2. Objective setting for
2010-2011 /

No objectives stated

Objectives are not measurable or realistic

/ Reasonable statements which include appropriately formed and relevant objectives / Good specific objectives relating to both image and direct response media activity / Specific timed and measurable objectives. Clear, concise and relevant covering response and image
3. An approach to segmentation and targeting decisions /

No/very poor discussion of prospects to be targeted by this particular campaign

Weak/flawed discussion of the approach to segmentation and targeting

Adequate discussion of segmentation approach and prospect to be targeted by this particular campaign

Good discussion of the approach to segmentation and the targeting of prospects

Insightful discussion of customers to be targeted by this particular campaign

4. Media approach for Image and Awareness Advertising /

The discussion touches lightly on general principles. Inappropriate for this case

Rather brief discussion lacking in application, partly relevant but unconvincing

Reasonable explanation of the media approach for image and awareness with reasonable media

Good relevant media choices with appropriate justifications and consideration of target audience

Excellent media choices and justifications clearly linked to target audience

5. The communications approach for prospect acquisition /

No/very poorly recommendations for response media

Weak or naive discussion of approach to response media

Adequate approach to response media possibly rather limited in scope

Good approach to response media with appropriate support for each stage of the buying process

Critical and exceptional approach to response media at each stage of the buying process

6. Outline budget required for direct prospect acquisition /

No/very poor top line budget and response indicators

Weak or flawed representation of top line budget and response

Satisfactory representation and justification of the budget and response

Good convincing case for top line budget allocations with indicative response

Excellent convincing case for top line budget allocations with indicative response

Executive Summary /

Very poor summary of the main points raised in the presentation

Weak or flawed structure, poor presentation of material

Satisfactory summary of the key points raised in the presentation

Good, succinct but comprehensive summary of the points raised in the analysis

Excellent, succinct and perceptive summary of the presentation

TASK 2:

Individual media appraisal (60% unit assessment). The report should be no more than 2000 words in length excluding title page, contents page and appendices.

Your report is an individual piece of work which will draw on the material presented in your individual analysis and strategy.

There is no requirement to reproduce a market analysis in this submission. The report is to focus on the strategy and detailed acquisition and customer retention plan and will cover the areas listed under Tasks 7 to 10 below:

7Appraisal of the media and schedule to be used for image and awareness advertising media including reach of the target audience.

8Spreadsheet or tabular representation of the budget and the schedule to achieve reach of the target audience.

9Appraisal of the media to be used for direct response activity and how this may facilitate future customer retention.

10Spreadsheet or tabular representation of the budget and the schedule for direct response and retention media.

The Individual Assignment: The Media Plan and Budget (60%). Student:

Component

E/Absolute Fail

(0 - 20%) /

D/Marginal

(20 to 49%) /

C/Pass

(50 – 59%) /

B/Merit

(60 – 69%) /

A/Dist

(70+) /

Component

Comments

7. Is appraisal of media for image & awareness produced including reach of the target audience ?

Selections but no justifications. No understanding of reach or appreciation of target audience

Limited discussion or flawed selections. Limited understanding of the concept of reach

Satisfactory and reasonably justified selections which effectively reach the target audience

Good, relevant range of choices, justified and considered in line with the budget and aimed at effective reach

Excellent, succinct justifications of an appropriate range of image and awareness media clearly achieving audience reach

8.Representation of the image and awareness budget & media schedule /

No/ very poor consideration of the budget allocation and response measurement

Very poorly constructed. Lacks clarity and accuracy

Weak/flawed consideration of the budget allocation and response measurement

Some structure but lacks an element of reach and frequency in the schedule

Satisfactory approach to the budget allocation and response measurement

The budget and schedule demonstrate an understanding of reach and frequency

Good consideration of the process of budget allocation and response measurement

Good exposition of budget and schedule. Clear with useful allocations of budget linked to scheduling for reach and frequency

Excellent consideration of budget allocation and response measurement

Excellent and accurate representations of both the budget and schedule to achieve reach and frequency

9. Is appraisal of media for direct response and retention activity produced? /

Selections but no justifications. No understanding of direct response or retention activity

Limited discussion or flawed selections. Limited understanding of the concept of direct response & customer retention

Satisfactory and reasonably justified selections which effectively reach the target audience

/ Good, relevant range of choices, justified and considered in line with the budget and aimed at target audience / Excellent, succinct justifications of an appropriate range of direct & response activity clearly targeting audience
10. Representation of the direct response & retention budget & media schedule /

No/ very poor consideration of the budget allocation and direct response & retention measurement

Schedule very poorly constructed. Lacks clarity and accuracy

Weak/flawed consideration of the budget allocation and direct response & retention measurement

Schedule contains some structure but lacks an element of reach and frequency in the schedule /

Satisfactory approach to the budget allocation and direct response & retention measurement

The budget and schedule demonstrate an understanding of reach and frequency /

Good consideration of the process of budget allocation and direct response & retention measurement

Good exposition of budget and schedule. Clear with useful allocations of budget linked to scheduling for reach and frequency /

Excellent consideration of budget allocation and direct response & retention measurement

Excellent and accurate representations of both the budget and schedule to achieve reach and frequency
General Comments:

Appendix 1

MINI UK database of customers purchasing new MINI cars 2006 to 2009

2006 / 2007 / 2008 / 2009
MINI Clubman / 3400 / 3950 / 3350 / 3200
MINI Hatch / 4200 / 4850 / 4300 / 4500
MINI Convertible / 3600 / 3700 / 3220 / 3200

The MINI Countryman will be an addition to the above range, so not replacing any of the above models.

Appendix 2

Press Circulation figures (in millions)

Daily Mirror / 1.45m / The Telegraph / 0.86m
The Star / 0.75m / Financial Times / 0.41m
The Sun / 3.1m / The Guardian / 0.33m
The Express / 0.74m / The Independent / 0.23m
The Mail / 2.25m / The Times / 0.68m

Assume costs of £8 per 000 for full-page advertising, £30 per 000 for inserts in weekend supplements

Appendix 3

Telemarketing Bureau costs

Outbound Calls at £10 per successful connection to target

Receiving inbound direct response calls £5 per appointment generated