story of the mini car

15
“Small ,but perfectly formed” SSCP Consultants

Upload: pamela-noble

Post on 04-Apr-2015

1.674 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: Story of the Mini Car

“Small ,but perfectly formed”

SSCP Consultants

Page 2: Story of the Mini Car

History/Product Life CycleS

ale

s

1960 1971 1994 2001 1st Mini

(Sir Alec Issigonis, British Leyland)

• Mini Cooper

(John Cooper)

• Monte Carlo Rally

• Italian Job

(Micheal Caine)

• Celebrities

(Mick Jagger, The Beatles...)

• 318475 units sold (best selling British car

in the world)

• Cooper out of production

• Decline in Sales

•Rover Group Bought BL

BMW bought Rover Group

40th Birthday (car of the Century

by Autocar)

New Mini Cooper

1959Time

Source

Journal of Product & Brand Management 15/4 (2006) 228-238 – Emerald Group Publishing Ltd

GrowthGrowth

Maturity

Page 3: Story of the Mini Car

What is its Core Product?

• Small • Economic • Practical• Easy to park• British

• High Quality• Status• Luxurious• Prestigious• German

Source

http://www.mini.co.uk/

Page 4: Story of the Mini Car

Takeover/Repositioning

Appeal/Function Image Associations

IMAGE

Functional

VFM Quality

Symbolic

Different

Classy/Chic

Fun

Sporty

Stylish

Fashionable

Symbolic Benefits/Appeal:

• Personal identify

Functional Benefits/Appeal:

• Affordable

• VFM

Product Related:

• Relative Price

• Relative Quality

Personality:

• Characteristics

• Demographics

• Typical Owner

History/Heritage:

• Era: 1960’s

• Origin: British

• Event Application: Motorsport

• Film: Italian Job

Why?

Source

Journal of Product & Brand Management 15/4 (2006) 228-238 – Emerald Group Publishing Ltd

Page 5: Story of the Mini Car

Perceptual map

High Price

Low Price

Low Quality

High Quality£10.300

£15.000

Source

Brassington F, Pettitt S. 2006.Principles of Marketing. 4 th edition. Pearson.

Mini vs. New Beetle

Page 6: Story of the Mini Car

Product Anatomy

Augmented

Potential

Tangible

Core

Source

Brassington F, Pettitt S. 2006.Principles of Marketing. 4 th edition. Pearson.

Actual product•Design - Modernised•Quality – Higher•Features

Add-on extras

After-sale support• tlc• tlc XL• Mini Spa• Health centre

Insurance• Mini Protect• Mini Travel• Mini Cover• Mini Shortfall

Payment• Mini Select• Mini Lease

Purchase• Mini Purchase• Mini Drive

Idea behind the Product•Small•Practical•Easy to Park•Economic

Product in the future•Prototype

Page 7: Story of the Mini Car

Potential Product

Mini Traveller“Go British”

• New Storage Solutions• Under floor tray• More room for feet• Silver metallic paintwork• Sporting look• Similar to the Mini

Clubman (already on the market)

Source

http://www.supercarnews.net/mini/picture/2005-mini-concept-tokyo-08-1-5981/

Will this new concept car damage the Mini brand once launched on the market?

Page 8: Story of the Mini Car

Product Mix

Gifts and Fancy Goods

Insurance Cars

Pens Mini Protect Mini Hatch

Sunglasses Mini Cover Mini Convertible

Umbrellas Mini Travel Mini Clubman

Model cars Mini Shortfall

Mini OneMini CooperMini Cooper DMini Cooper S

Mini One ConvertibleMini Cooper

Mini Cooper ClubmanMini Cooper D ClubmanMini Cooper S Clubman

Pro

du

ct

Lin

e

Dep

th

Product Line Width

Product Line Length

Source

http://www.mini.co.uk/

Brassington F, Pettitt S. 2006.Principles of Marketing. 4 th edition. Pearson.

Page 9: Story of the Mini Car

Brand

What does “brand “mean?

• Marketing Practice of Creating a name, symbol or design that differentiates a product from other products.

• One of the most important aspects of any business; large or small, retail or B2B

• The brand is the promise to the customerSource

Brassington F, Pettitt S. 2006.Principles of Marketing. 4 th edition. Pearson.

Page 10: Story of the Mini Car

Launching a new product through an existing brand: good or bad idea?

Advantages Disadvantages

• Customers loyal to the character and appeal of the old Mini

• Due to problems that arose when the old mini became out –of-date, customers may still hold negative attitudes in mind

• Very good brand image– Sporty – Fun – Trendy –

Stylish – Classy/Chic – Different – Special character

• Due to the strong reputation of BMW, many of their customers may decide to remain loyal to the firm– high success, by offering

customers a better product

Source

Journal of Product & Brand Management 15/4 (2006) 228-238 – Emerald Group Publishing Ltd

Page 11: Story of the Mini Car

Success of the Mini in the USA

• Higher sales than anticipated when launched in USA in March, 2002

• Increased small car niche in USA and celebrity following

• BMW association

Value – Mini perceived as a valuable car, why?

Brand reputation Fuel-efficiency Brand experience

Will success continue for Mini in the USA?

Sourcehttp://www.ForbesAutos.comhttp://www.bmw-mania.comBrassington F, Pettitt S. 2006.Principles of Marketing. 4th edition. Pearson

Page 12: Story of the Mini Car

USA SURVEY

• 72 % Agree

• 20 % Disagree

• 8 % Somewhat Agree

• 72 % Agree

• 20 % Disagree

• 8 % Somewhat Agree

Source

Survey organized by SSCP Consultants in USA –

Quality: Is Mini a well made car?

1 - 8%

3 - 20%

10 - 72%

-1

4

9

14

Agree Disagree Somew hat Agree

Answer

N. o

f P

eop

le

Comfort: Is Mini a comfortable car?

1 - 8%

3 - 20%

10 - 72%

-1

4

9

14

Agree Disagree Somew hat Agree

Answer

N. o

f P

eop

le

Page 13: Story of the Mini Car

• 43 % Agree

• 43 % Disagree

• 14 % Somewhat Agree

USA SURVEY

• 86 % Agree

• 7 % Disagree

• 7 % Somewhat Agree

Source

Survey organized by SSCP Consultants in USA –

Safety: Is Mini a safe car?

2 - 14%

6 - 43%6 - 43%

-1

4

9

14

Agree Disagree Somew hat Agree

Answer

N. o

f P

eop

le

Value: Is Mini a value for money car?

12 - 86%

1 - 7% 1 - 7%

0

5

10

15

Agree Disagree Somew hat Agree

Answer

N. o

f P

eop

le

Page 14: Story of the Mini Car

Conclusions

• MINI has a distinct brand image

• MINI Augmented and Tangible products are reliable

• MINI kept its core product intact with original character

• MINI stands for VFM (Value for money)

• MINI improved quality since acquired by BMW

• BMW found a way of exploring a new segment out of its range

• The new MINI is extremely successful since its revitalisation. So BMW succeeded.

• MINI was successful in the USA due to the points described above

Page 15: Story of the Mini Car

Contact details:

SSCP Consultants Ltd. 21 City Road

London EC2 3NC

e-mail: [email protected]

www.sscp.co.uk