The Marketing Strategies of Mini Cooper by BMW - Report Example

Marketing Plans: BMW and Mini Cooper Automobile company Introduction “One study reveals that for every seven new product ideas, about 4 enter development, 1.5 are launched, and only one succeeds” (Cooper, 2001, p.11,). Mini Cooper was a new product/new car developed by BMW which captured the attention of the public from all over the world. It is sold in more than 70 countries at present. “Designed in 1959 by Alex Issigonis - a Turkish-born émigré to Britain who also designed the Morris Minor, another iconic small car, the Mini Cooper has captured the global market” (Maynard, 2006). Mini Cooper succeeded in the global car market not only because of the quality and reliability of the product, but also because of the innovative marketing strategies BMW devised for Mini Cooper. This paper briefly explains the marketing strategies of Mini Cooper by BMW across the world. Situation analysis (market size, growth, structure, trends) America is one of the biggest markets for Mini Cooper. Americans have a habit of changing their cars periodically in order to enjoy the up to date technological innovations incorporated in modern cars. Small cars are more popular nowadays because of the easiness in handling it. Mini belongs to the small car category and that also with ample facilities inside and a careful attractive design outside. The demand for fuel economy car is growing all over the world and Mini offers best fuel economy in its class. Modern customers like to have customized cars and Mini offers the customers such facilities by providing them the opportunity to select “from among 372 interior configurations, from fabric or leather seats to the steering wheel cover, and 319 exterior options, from the type of engine to whether there are wide racing stripes on the hood” (Maynard, 2006). Competitor analysis (strength, weakness, performances) Toyota, Nissan, Mercedes Benz, Honda, Audi, GM, Ford etc are some of the major competitors for BMW and mini cooper. Among these competitors Toyota seems to be the number one opponent for BMW and mini cooper. The Scion cars, sold by Toyota raised stiff challenges to Mini. Toyota offers more options and facilities to the customers in order to defeat the Mini in global market. But with the help of innovative marketing strategies Mini was able to counter all the efforts of the competitors. They even included testimonials from previously defrauded consumers as part of their marketing strategy. Even though some analysts criticized such a marketing campaign because of the misleading message it spreads, the strategy worked well so far in sustaining good selling of Mini in global market. Buyer behaviour and Market segmentation Even though, mini is targeting all the people irrespective of the age, it mainly focuses the customers from the youth segment and slightly older segment. Youths always like sports cars and Mini has everything needed for a sports car. Those who aged 20-34, are experimental in outlook; enjoy trying new things and tend to be spontaneous and active. They like standing out in a crowd and driving a car that people notice. MINI fits their image and their attitude to life. The second group is slightly older - likely to be 35-50 and represent a more affluent, yet progressive-thinking household (MINI COOPER: A Modern Interpretation Of An Automotive Legend). Britain, United States, Japan, Germany, Italy etc are the top market for Mini Cooper. In fact in these countries, no other car manufactures were able to beat Mini as far as market share is concerned. The words like Mini, Midi, and Micro usually associated with computers and the general public think of highly sophisticated and technologically advanced machines, when they come across with such names. The word Mini is too cute and sexy and nobody can avoid having a look at the brand even if they are not interested in it. But at the same time, though the meaning of the word Cooper may not be sound, the careful mix of these two words made the name “Mini Cooper” more attractive to the customers. Marketing strategies (4 P’s-Product, price, place and promotions) The Mini Cooper, manufacturing and marketing has been done in such a way that it does not affect the existing products of the parent company BMW. In other words, mini cooper was designed in a unique way so that none of the existing BMW cars have any resemblance with Mini. BMW realized that the focus on the existing products should not be reduced for the sake of new product Mini Cooper. The price range – of mini was “about $18,000 for the entry-level Mini Cooper, stripped, and $26,000 for the top-of-the-line Mini Cooper S convertible” (Maynard, 2006). Pricing of the product is another important factor which can control the success of it in the market. BMW was successful in estimating likely selling price of Mini even before marketing it based on the market feedbacks. Mini Cooper targeted mainly the middle class and hence the pricing was also done based on the buying abilities of the middle class. The initial period after the launch of the product is important. Sometimes some fine tuning will be required in overall characteristics of the product which should be done in time. Mini Cooper has done all such home works about the pricing of mini and the product success really speaks volumes about it. An important aspect of New Product Development is the promotion activities. Even a better quality product sometimes fails in the market if its marketing lacked the backing of adequate promotions. On the other hand, even a bad product can sometimes succeed in the market with the help of promotional activities alone. BMW has devised innovative promotional strategies for Mini cooper. BMW has promoted the car through internet rather than the television. They have stopped all the advertisement on national television and concentrated heavily on internet ads, ads painted on city buildings and on baseball-type cards handed out at auto shows. The common people were exhausted by the huge volume of advertisements injected into their minds daily by different product advertisers using different channels. Instead of going for the mass advertising, BMW devised micro marketing strategies focussing specific marketing segments or place. To convince the layman, BMW put Minis on top of sport utility vehicles and drove them around 24 cities across the world. In an overcrowded market place, it is economical to spend more money on targeting specific market segments rather than the mass marketing. Mini cooper has used Magazines, News papers, talking billboards and internet like sources to reach the specific market segments. “Mary, moving at the speed of justice,” if Mary is a lawyer, or “Mike, the special of the day is speed,” if Mike is a chef” (FEDER). These talking billboards created enormous interest among the people in US. The messages were customized and related to the customer survey questionnaire. They also utilized sports areas with digital billboards, and also spend more money to put their brand names in popular sports stadiums to attract youths as well as the old. They also utilized cell phones for marketing the marketing of Mini with the help of instant messaging Mini is sending owners a "covert" kit -- mocked up as a wizened-looking book -- that will include special glasses, a decoder, and a "magic window descriptor." Using those, owners will be able to find Web addresses in the ads that lead them to free prizes and invitations to events (Business week, 2006). Swot analysis “At the heart of the brand is the car itself. Much of the MINI personality comes from the uniqueness of the design and the exciting driving experience” (Mini Education, n. d). Fuel economy, cheap price, cute and unique design, option for purchasing a customised car and of course the huge brand value of BMW etc are the major strengths of Mini. Mini s not only attractive in appearance, but it is filled with lot of useful features which other cars of same type may not possess. Its hatch layout is well designed, with a low well for groceries and with seat uprights that flip forward 50/50. Mini Cooper excels in safety features also. It comes with six airbags, while its competitors have only standard front airbags. “From the toggle switches for the windows and fog lights to the rocker buttons for the fan-speed controls, every switch and dial in the Mini feels of a piece with Mini and only the Mini” (Frank, 2006). “A marvellous marriage of British character and German know-how, the 2009 Mini Cooper is stylish, fun to drive and remarkably good on gas” (2009 MINI Cooper Review, 2009). The major weakness of Mini is its small size. Many people like to have bit more space inside the car for their luxury seating requirements. Since Mini is fuel efficient and smaller in size, in developing countries like India, China Brazil etc, mini can excel. Mini requires only a small parking space which made it one of the favourite cars for the city people as most of the cities facing parking problems. The major threat faced by Mini is the dipping global economy and the exhausting of oil resources. Most of the car manufacturers are now thinking seriously about making electric cars in order to counter the energy problems and to make more environment friendly cars. References 1. 2009 MINI Cooper Review. 2009. [Online], Available at: http://www.edmunds.com/mini/cooper/2009/review.html [Accessed 11 October 2010] 2. Cooper, RG (2001). Winning at New Products: Accelerating the Process from Idea to launch, Third Edition, Publisher: Basic Books; 3rd edition June 5, 2001. 3. Business week (JULY 31, 2006). For Your eyes only [Online], Available at: http://www.businessweek.com/magazine/content/06_31/b3995091.htm [Accessed 11 October 2010] 4. Frank, M. (2006). Test Drives 2004 Mini Cooper [Online], Available at: http://www.forbes.com/2004/08/16/cx_mf_0816test.html [Accessed 11 October 2010] 5. FEDER, B. (2007). The New York Times - Media & AdvertisingBillboards That Know You by Name”. The New York Times. January 29, 2007 [Online], Available at: http://www.nytimes.com/2007/01/29/business/media/29cooper.html [Accessed 11 October 2010] 6. Maynard, M. (2006). Can the Mini stays up to speed? International Herald Tribune . The New York Times. October 6, 2006 [Online], Available at: http://www.nytimes.com/2006/10/06/business/worldbusiness/06iht-wbmini.3054427.html?_r=1 [Accessed 11 October 2010] 7. MINI COOPER: A Modern Interpretation Of An Automotive Legend (n.d), [Online], Available at: http://www.theautochannel.com/mania/industry/votw/index2.htm [Accessed 11 October 2010] 8. Mini Education. (n. d) [Online], Available at: http://www.mini.co.uk/html/about_us/mini_education/marketing.html [Accessed 11 October 2010] Read More