Case: The Mini
The case study evaluates the introduction of new cars to the market.In specific, the cars are retro-designed to suit the needs ofclients. Every car manufacturer targets a large market niche, whichthey feel can be achieved through the creation of an affordable, yetattractive vehicle. BMW’s Mini is one such illustration.After acquiring the rights to naming and design from Rover, BMWprogressed to advance the car to target the American market. Over theyears, there have been many Mini competitors, yet BMW hasmanaged to surpass competitors in the US market. This paper evaluatesthe issues related to the design of the Mini, in turndepicting BMW’s effectiveness.
The most relevant design considerations by BMW during redesigningthe Mini for the American market, was ensuring that BMW’smission is maintained. The mission entails to progress selling inidentified markets, whereas venturing to advent markets with novelcars. BMW considers the Mini as a model, which will expand itsmarket in America. Since the model is already famous in Britain, itfits the mission of marketing globally. There have been differentmodels introduced to the market, which have made considerable sales.Another consideration is the impact on existing BMW owners. Despitewanting to expand its market by introducing a car model that willattract more buyers due to its affordability, BMW also considers theneed to maintain its existing clients that have paid expensively.
Benefits for designing the car for Americans include ensuring thatBMW progresses to be competitive among all market segments. Althoughmost of its models are expensive, the Mini is affordable andwill be able to draw even young individuals into buying the car. Asthe case illustrates, many vehicle manufacturers have expanded theirentry into the market through designing cars that are attractive andaffordable. Designing the Mini is a chance for BMW to competeeffectively. Another benefit is the revenue generated from sales. Byallowing buyers to suggest their own designs, more clients are drawnto BMW’s design, in turn increasing sales and BMW’s profit.
The key issue of discussion centers on penetrating new markets,while maintaining existing clients. The case notes that BMW ispositively accepted by possible customers. However, promoting theMini through BMW is likely to cause them a loss of prestigiouscustomers. The prestigious customers are more important to BMWbecause they purchase vehicles at high prices. Another issue is onmaking the design more global. Clients are more likely to buy qualityproducts with better features (Moore, 2007). Mini becomingglobal means changing it from a British appearance, through productuniversality (Ferrel & Hartline, 2008). BMW, through creating auniversal product, also evaluates how to make the model differentfrom competitors.
When redesigning a new model car, the main concern lies on whetherit will achieve the intended objective of establishing new markets.Design pitfalls lie in the inability to predict precisely what typeof car customers’ desire. Another pitfall is that by the time theredesigning has been completed, competitors will have come up with abetter model. This means that models like Beetle andThunderbird, may fade away paving way to newer models. Marketresearch needs to be conducted in avoiding the pitfalls. Thisincludes determining what customers will want, not just for a shortperiod but even in prospect. This will ensure that the design suitslasting needs, such that even competitors entrance into the marketdoes not have a negative impact on the design. Engaging potentialcustomers in designing new car models is a strategy predisposed toguaranteeing the new cars meet the comfort demanded by the market(Paternie, 2002).
The lesson learnt from the case is on the significance of brandawareness. It is linked with recognized eminence and brands (Boorne &Kurtz, 2009). The success of Mini lies in involving theirtechnological advances in creating a new model.
Boone, L.E. and Kurtz, D.L. (2009) Contemporary Marketing. Mason:South – Western Cengage Learning.
Ferrel, O. C & Hartline, D. M. (2008). Marketing Strategy.Mason: South – Western Cengage Learning.
Moore, T. (2007). The Mindset’ Marketing Strategies from theMasters. New Jersey: Pearson Education, Inc.
Paternie, P. C. (2002) MINI. St. Paul: Motor books.