mini cars of bmw

7/30/2019 mini cars of bmw

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PRESENTED BYGROUP-5

Aniketh Roy(1225112105)

D.Soujanya (1225112115) Shaik Rabbani

Basa(1225112147)

B.Vikas

Reddy(1225112157) Prashanth

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Introduction

Small car market

Target market

Marketing strategy

Critics

Future scope

Diffusion of innovation

Branding strategy

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The Mini is a small economy car that was madeby the British Motor Corporation (BMC) and itssuccessors from 1959 until 2000.

It is considered as one of the most enduringfashion and motoring icon of 20th century.

In 2000 BMW(German based) took over theMini(BMC).

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Competitors:

European market were competitive marketwith supermini segment being most

crowded.

Premium car segment: Renault, Volkswagen,Nissan, ford, Peugeot, Citron and Toyota.

Luxury premium car segment: Mercedes A-Class, Audi A2.

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The younger group mainly between 25-35 yrswas expected to buy mini as their primary car.

The older group in their 40yrs, having some

youthful motoring fun could buy it as secondor third car.

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With Mini, BMW has entered into developingpremium cars for every segment of the market.

The Minis success was due to product

positioning, product differentiation andpricing.

So an innovative and high profile strategy wasdeveloped by using the above.

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Promotion(informative and persuasive ad):

In UK it used 20.7 million Euros for cinema, tv,internet advertisement, which is less compared

to that of its competitors. In the USA it used guerrilla marketing

campaign which bought it to the top of itscompetitors.

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Distribution channel(one level channel):

BMW dealer in UK are about 148.

70 Mini exclusive showrooms in US.

The same mechanics does the service for theboth the cars mini and BMW.

Initially the minis sales target is 149 cars.

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Pricing Strategy(perceived value pricing):

Selling Mini for 20,000 Euros when comparedis less to that of Volkswagen(Beetle) in 1998.

BMW(mini) used a aggressive strategy byselling Mini One-14400 Euros and MiniCooper-16704 Euros.

The cars profit increased by customization of

roofs and leather bound steering handleswhich added 20% of average cars price.

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Target sales(units) Actual Sales(units)

Global Sales 100,000 144,000

United States 18,000 25000

0

20,000

40,000

60,000

80,000100,000

120,000

140,000

160,000

units

Sales of Mini in the year 2002

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The negative aspect of German acquisition ofBritish icon was highlighted.

Companies update their models every 2 to 3yrs. But Mini will not update its model until

7yrs. Mini is a fashion statement so buyers will get

bored.

Low productivity, low selling price and UKcurrency base will bring losses to BMW(mini).

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The companies success launch of mini in USand UK.

The company will focus on both product andthe market development.

It is planning to go into the diesel version andalso the 4x4 version.

The company is planning to go into variety of

geographical markets like china, India.

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Types Of Adaptors:

Innovators {risk takers}

Early Adaptor {calculated risk takers}

Early Majority {Take time to think}

Late Majority {After some references}

Laggards {last to adopt}

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2.5% Innovators

12.5% Early Adopters

34% Early Majority34% Late Majority

17% Laggards

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Total IndustryProfit

$ 0

MarketIntroduction

MarketGrowth

MarketMaturity

SalesDecline

Time

Total IndustrySales

Stage customers:

Early Adopters Early Majority Majority LaggardsInnovators17GROUP-5


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For the innovators are the risk takers so thecreating awareness of the product withpromotion.

For the early adopters is the promotion,pricing, product preference.

As there will be a change of marketing strategyas it moves from innovators and earlyadopters.

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The intensive sales promotion of the productfor the early majority.

The word of mouth and intensive sales

promotion for the majority adaptors. For the laggards it is generally the price which

demands the product along with quality assecond preference.

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In the 1960s and 1970s, the Mini also became averitable "fashion statement".

Many celebrities of that era drove Minis that

had been customized and also was used inmany movies.

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Segmenting and positioning.

Product differentiation and pricing.

Target market.

Promotion.

Proper tag lines like Don't dream it. Driveit! , Protection on all sides

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Match the emotional power of the originalmythic model with the technology of the

future

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Guerrilla Marketing is an advertising strategythat focuses on low-cost unconventionalmarketing tactics that yield maximum results.

It needs a lot of creativity and innovation.

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mini cars of bmw

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