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. EAs 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: EAs 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.