Marketing Campaign Case Studies

Tuesday, June 28, 2011

TARGET MARKET OF THE THE POWER OF DREAMS CAMPAIGN


‘‘The Power of Dreams’’ targeted a large and diverse audience. While Honda wished to attract younger buyers, they were not the company’s only focus. With a wide range of car models, from the lower-priced Civic to the higher-end Accord, Honda could potentially appeal to drivers within all age groups and socioeconomic statuses. All potential new buyers, whatever their age, represented Honda’s target market. Thus, of the many different media that ‘‘The Power of Dreams’’ employed, television advertising, with its ability to reach a wide audience, was expected to be the most effective. Further, by portraying Hondas as hip and fun, the commercials appealed to a broad range of potential buyers. Honda’s new campaign mainly focused on raising public awareness of its cars—especially in Europe and the United Kingdom, where Honda was largely associated with motorcycles—and, in particular, getting new customers to visit Honda showrooms. There was also an emphasis on pleasing return customers. The company wished to improve communications with Honda owners and thus make them feel good about their choice of Honda; this in turn would convince them to buy a Honda the next time around.

HISTORICAL CONTEXT OF THE THE POWER OF DREAMS CAMPAIGN


In April 1964 Honda spent $300,000 to sponsor the Academy Awards, becoming the first foreign corporate sponsor in the event’s history. With the tagline ‘‘You Meet the Nicest People on a Honda,’’ the Honda advertising campaign was a success, becoming one of the bestremembered advertising campaigns in the company’s history. Nevertheless, although the campaign promoted Honda’s motorcycles well, it did little to sell Honda vehicles. The reality was that Honda was better known for its motorcycles than it was for its cars. This long remained the case in most of the countries where Hondas were sold. In Japan, where big-splash promotional efforts for Honda’s cars were common, the problem was not so severe. The 1981 campaign to promote Honda’s model the City, for one, was omnipresent in Japan, incorporating large-scale TV, radio, and print advertising. There was even a variety of City novelty goods for sale and a specialty magazine called City Press. Meanwhile, in the United Kingdom, Honda automobile production had yet to begin. Honda cars had been available there as imports, but not enough units were ordered to establish a presence. Further, the prices of imported cars could not compete with that of vehicles manufactured within the country. Thus, at the time, any sales push in the area focused on Honda motorbikes. In 1992, when Honda automobile production began in the United Kingdom, the shift toward promoting Honda automobiles there began, albeit slowly. But the potential market for the new manufacturing plant was huge: located in Swindon, England, it was responsible for producing vehicles well beyond the United Kingdom, including mainland Europe, the Middle East, and Africa. As such, Honda felt the need to begin a major campaign within the United Kingdom. Eventually it happened. ‘‘The Power of Dreams’’ replaced the 1999 global tagline ‘‘Do You Have a Honda?’’ This earlier campaign employed print, radio, and television, and portrayed the dreams of Honda’s founder, Soichiro Honda, who envisioned providing the world with all the possible means of travel. Soichiro Honda himself had repaired and created bicycles and motorcycles as well as both road cars and racing vehicles. The ‘‘Do You Have a Honda?’’ ads thus incorporated images of all of these means of transportation as well as more creative means, including a hot-air balloon and a cable car. Although the ‘‘Do You Have a Honda?’’ ads spread worldwide, the United Kingdom was barely affected by the campaign. From 1998 to 1999 Honda automobile sales in Europe dropped from 240,000 to 235,000. The decline continued through 2002. In the United Kingdom, Honda auto sales began to drop in 2000. In 2002 ‘‘Do You Have a Honda?’’ was replaced with the campaign ‘‘The Power ofDreams.’’ Although the tagline was part of a larger global focus, the campaign, under the leadership of ad agency Wieden+Kennedy in London, centered on promotional efforts within the United Kingdom.

OVERVIEW OF THE THE POWER OF DREAMS CAMPAIGN


In 2002 Honda Motor Company was the number-three Japanese automobile manufacturer in the world, behind Toyota and Nissan. While Honda’s automobile sales in Japan and the United States were considered strong, sales in the United Kingdom and mainland Europe were thought to be weak, even though automobile production in the United Kingdom had been ongoing for a decade. Further, Honda vehicle sales had been declining in these regions since 1998. In response to these problems Honda hired ad agency Wieden+Kennedy’s London office to create an advertising campaign that would directly address the issues.
‘‘The Power of Dreams,’’ released in 2002, was an omnipresent campaign in the United Kingdom and beyond, using television, direct mail, radio, posters, press, interactive television, cinema, magazines, motor shows, press launches, dealerships, postcards, beermats (coasters), and even traffic cones. It built upon Honda’s company slogan, ‘‘Yume No Chikara,’’ which was first endorsed in the 1940s by the company’s founder, Soichiro Honda. Translated into English, it meant to ‘‘see’’ one’s dreams. Wieden+Kennedy used this phrase as the basis of its question to consumers: ‘‘Do you believe in the power of dreams?’’ The global campaign, which centered on this tagline, included print and television components starring ASIMO, a humanoid robot developed by Honda. While the ASIMO ads gained widespread recognition, the 2003 television commercial called ‘‘Cog’’ was clearly a pinnacle of the campaign. In a single take with no special effects, more than 85 individual parts of the new Accord interacted in a complicated chain reaction. The spot won 37 advertising awards. Honda considered ‘‘The Power of Dreams’’ an advertising success. Worldwide sales of Honda vehicles rose dramatically from 2002 through 2005, from 2.6 million units per year to 3.2 million units per year. In the United Kingdom sales improved by 28 percent. In Europe sales in 2002 increased from 170,000 to 196,000, which rose to 217,000 in 2003. The campaign also won IPA Advertising Effectiveness awards, British Television Advertising awards, and even a 2003 Gold Lion at the Cannes International Advertising Festival.

Tuesday, May 31, 2011

OUTCOME OF THE IT’S NOT T.V. IT’S HBO CAMPAIGN


HBO pronounced the ‘‘It’s Not T.V. It’s HBO’’ campaign an unequivocal success. In the company’s estimation, the campaign achieved its primary goal of elevating the brand’s image in the market. Extensive precampaign and postcampaign surveys indicated that the commercials had made viewers more aware of the HBO brand. According to the December 8, 1997, edition of USA Today, HBO’s membership increased from 21.1 million in 1996 to 22.7 million in 1997. But HBO stressed that it was difficult to correlate the number of subscribers with its high-profile ad campaign because of the variety of factors that influenced fluctuations in membership. For 25 years HBO had seen the number of its subscribers increase each year. The media and the advertising industry responded positively to the spots. On December 9, 1996, USA Today heralded the campaign as one of the ‘‘rare knockouts’’ in advertising. Trade publications such as Adweek and Shoot extolled the technical wizardry of the commercials. ‘‘Certainly there is something to be gained for an entertainment provider merely by being entertaining,’’ declared the November 4, 1996, Advertising Age. In September 1997 ‘‘Chimps’’ received the first ever Emmy Award for a commercial. It beat out other well-liked campaigns, such as those by Nike and Levi’s, to be named the best commercial of the year. Also in 1997 the ‘‘Chimps’’ spot received a Gold Clio Award. The Clios were international advertising awards presented annually in recognition of creative excellence and innovation in advertising. Viewers also responded well to the campaign. USA Today ’s Ad Track, a poll measuring the popularity and effectiveness of national campaigns, revealed that consumers consistently liked the HBO spots, often ranking them among the 10 best commercials. According to the newspaper, ‘‘the spots were especially effective with consumers aged 18–24.’’ Larry Gerbrandt, a senior analyst at Paul Kagan, told USA Today on December 8, 1997, that ‘‘the ads worked well for HBO. The name HBO is practically synonymous with pay TV.’’ Yet the campaign’s positive impact onHBO’s subscriber figures was less clear. Although 33 percent of respondents in the December 29, 1997, Ad Track survey declared that they liked the HBO campaign ‘‘a lot,’’ only 20 percent thought that the campaign was ‘‘very effective.’’ In a similar vein, Advertising Age criticized the campaign for not providing enough information about HBO’s actual programming. ‘‘Chimps’’ in particular generated a great deal of controversy. Many journalists were outraged that the basic premise of the spot was false. Goodall did not watch HBO; in fact, the pay channel was not available in the remote region of Africa where she lived. The spot drew more criticism when it was learned that the voice attributed to Goodall was not hers. HBO, however, felt the media were taking the commercial far too seriously, and the company itself was pleased with the results of its efforts. In 1998 the campaign was expanded to include print, radio, and direct mail. As the campaign morphed from a branding strategy for the network into its operating mantra in 1999, the marketing also shifted to specific programming. According to network executives, the strategy evolved based on the success of two of its shows—The Sopranos and Sex and the City—as well as of original movies that the network was producing and sporting events that it aired. The new marketing effort resulted in HBO being named Cable Marketer of the Year in 2000 by Advertising Age. The original ‘‘It’s Not T.V. It’s HBO’’ campaign was named to the Cable & Telecommunications Association for Marketing (CTAM) Hall of Fame in 2003, which, according to the organization, honored the ‘‘finest and most influential campaigns in the history of cable.’’

MARKETING STRATEGY OF THE IT’S NOT T.V. IT’S HBO CAMPAIGN


HBO gave BBDO New York the project of creating a memorable campaign. After HBO briefed the ad agency on its specific needs and concerns, BBDO took over the creative aspects of the campaign. In a brainstorming session, Michael Patti, the vice chairman and executive creative director of BBDO, and Don Schneider, the agency’s senior creative director, hit upon a striking concept. The two envisioned a commercial in which a parrot would recite famous movie lines because it saw into a neighboring apartment, where a television was tuned to HBO. The idea quickly evolved into the award-winning spot featuring lip-synching chimpanzees steeped in movie lingo. The 1996 spot, titled ‘‘Chimps,’’ featured renowned primatologist Jane Goodall and a group of wild chimpanzees in the Gombe preserve in Africa. Frame-by-frame animation made it appear as though the chimps were actually speaking famous lines from classic Hollywood movies. The premise of the spot was the powerful impact HBO exerted on its viewers. The commercial opened with a proud chimp uttering lines spoken by Marlon Brando in The Godfather : ‘‘He never could have outfoxed Santino. But I didn’t know until this day that it was Barzini all along.’’
Another chimp replied with lines from Forrest Gump:
‘‘Mama says that stupid is as stupid does.’’ As a third chimp tossed a stick to the ground, he repeated a line from Network:
‘‘I’m mad as hell and I’m not going to take it anymore.’’ A father chimp spoke Darth Vader’s well-known line from Star Wars —‘‘The force is with you, young Skywalker’’—as he patted a small chimp on the head. After a group of chimps chanted, ‘‘Toga! Toga! Toga! Toga! . . .’’ from Animal House, the camera panned to a bewildered Goodall writing in her journal. Her voice-over said, ‘‘September 19: Their inexplicable behavior continues.’’ A chimp then bellowed, ‘‘Yo, Adrian, I did it,’’ a line from Rocky. The camera cut back to Goodall’s cabin, where her television was tuned to HBO, and she continued, ‘‘Got to go now. Braveheart is on.’’ A black screen followed with a graphic and the campaign’s tagline, ‘‘It’s Not T.V. It’s HBO.’’
Producing the spot proved to be quite a challenge, however. The chimpanzees were filmed at their feeding sites in the Gombe preserve. Frame-by-frame animation was then used to create the illusion that the animals were reciting movie lines. Sherri Margulies, a film editor who worked on the spot, told Shoot that, while other commercials had used similar effects, ‘‘the elaborate attention to detail . . . on this spot [was] completely unique.’’ All told, the special effects took approximately 20 to 30 hours per chimp, requiring the ad agency to work around the clock for a month.
In 1997 HBO followed ‘‘Chimps’’ with four new television spots, each intended to elevate the HBO brand. Using tongue-in-cheek humor, the spots attempted to convey the uniqueness of HBO’s programming. In ‘‘Haircuts’’ the men of an idealized American small town sported bizarre, patterned haircuts. It turned out that Carl, the town barber, had become engrossed in HBO’s programming as he cut his customers’ hair, the result being freakish haircuts. In another spot, ‘‘Roach Motel,’’ an enthusiastic pest exterminator was unable to rid a home of its roaches by using sprays or bombs. He succeeded only by luring the cockroaches into a roach ‘‘motel’’ with a neon sign that advertised ‘‘Free HBO.’’ The campaign’s ironic wit continued in a spot featuring a sadistic repairman who tormented an entire town by plugging in and unplugging their cable in the midst of a captivating HBO program. A final commercial, ‘‘Glee Club,’’ related the tale of a disgruntled neighbor who gave the local barbershop quartet free HBO in the hope of distracting them from practicing at all hours. In order to reach the maximum number of potential viewers, HBO aired the commercials during its own programming, on other cable channels, and, most notably, on network television. All five spots ran during prime-time network shows, including top-rated programs such as the 1997 World Series, Seinfeld, Chicago Hope, and ER. The network commercials were intended to reach both current HBO subscribers and those who had either never subscribed or had allowed their subscription to lapse. HBO hoped that the commercials would remind current subscribers of the quality and value of the channel’s programming, while at the same time reaching millions of other viewers who had not signed up for HBO. ‘‘We wanted to inform nonsubscribers of what they are missing,’’ said Parmet. In 1998 the network continued the campaign with two new spots, including one that debuted during a Monday Night Football game. HBO also reported that the spots would be shown on as many as 20 other cable networks. Like the original spots, the new commercials relied on humor and high production values to assure that they would stand out. One spot, ‘‘Guardian Angel,’’ showed a person hit by a falling piano when his guardian angel was distracted by a television in a store window. The mishap was explained by the campaign’s tagline, ‘‘It’s not T.V. It’s HBO.’’ The second spot starred actor George C. Scott serving as the general of an army of germs fighting for control of a television remote. The campaign’s focus shifted in 1999 from the original brand strategy. Although its emphasis remained on the central theme, ‘‘It’s Not T.V. It’s HBO,’’ the advertising spots became focused on marketing specific HBO programming.

COMPETITION OF THE IT’S NOT T.V. IT’S HBO CAMPAIGN


In striving to establish a strong brand identity for HBO, the campaign had to differentiate the channel from its competitors. HBO’s most direct competitors were other pay television channels. Although it was by far the most watched pay television station, HBO faced stiff competition from other cable channels. Networks such as Showtime and TNT followed HBO’s lead in offering more original programming. ‘‘There was a time when HBO’s programming was the only thing worth watching on cable, but that’s not the case anymore,’’ a television industry analyst told the New York Times. HBO’s long-term success involved more than simply staying afloat in the premium channel television industry. The channel was also competing against different types of entertainment sources. HBO felt that it could not compare itself only to other TV channels. It had to get people’s attention. In an era in which the average person could choose to watch a sitcom on network television, tune in to CNN on a basic cable package, rent a movie from a local video store, drive to a nearby theater to see the latest Hollywood film, or pay for HBO’s movies and shows, the image ads were intended to equate HBO with entertainment. According to Parmet, ‘‘The ads needed to be cutting edge. We wanted to make the kinds of ads that people would talk about the next day at work.’’

Saturday, April 30, 2011

TARGET MARKET OF THE IT’S NOT T.V. IT’S HBO CAMPAIGN


With its huge base of subscribers, HBO had a diverse viewing audience. For that reason the ‘‘It’s Not T.V. It’s HBO’’ campaign did not target a narrow demographic group. HBO hoped to reach all segments of the American consumer market from ages 18 to 49. The image ads conceived by BBDO were considered an ideal means to reach this broad-based target. Because the spots did not focus on one aspect of HBO’s programming but instead tried to hone the overall image of the channel, the campaign could appeal to all viewers. ‘‘The campaign tries to convey that we are a total entertainment package—that there is something for everyone,’’ said Chris Donlay, HBO’s manager of corporate affairs. ‘‘We were not looking for a market share or Nielsen ratings,’’ said Nancy Parmet, HBO’s vice president of marketing, who oversaw the ‘‘It’s Not T.V. It’s HBO’’ campaign. ‘‘We were looking to break through the clutter.’’ USA Today acknowledged the competitive and multifaceted state of the entertainment industry when it declared that to thrive ‘‘HBO must remain top-of-mind with consumers.’’