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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

Professional Diploma
in Marketing (Level 6)
541 Delivering Customer Value Through Marketing

Case Study
December 2011 and March 2012

MINI
The Chartered Institute of Marketing 2011

Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

Delivering Customer Value through Marketing Case Study


Important guidance notes for candidates regarding the pre-prepared analysis
The examination is designed to assess knowledge and understanding of the Delivering
Customer Value through Marketing syllabus, in the context of the relevant case study. The
examiners will be marking candidates scripts on the basis of the questions set. Candidates
are advised to pay particular attention to the mark allocation on the examination paper and
plan their time accordingly.
Candidates should acquaint themselves thoroughly with the case study and be prepared to
follow closely the instructions given to them on the examination day. Candidates are
advised not to waste valuable time collecting unnecessary data. The cases are based upon
real-life situations and all the information about the chosen organisation is contained within
the case study. No useful purpose will therefore be served by contacting companies in the
industry and candidates are strictly instructed not to do so as it may cause unnecessary
confusion.
As in real life, anomalies may be found in the information provided within this case study.
Please state any assumptions, where necessary, when answering questions. The
Chartered Institute of Marketing is not in a position to answer queries on case data.
Candidates are tested on their overall understanding of the case and its key issues, not on
minor details.
As part of the preparation for the examination, candidates will need to carry out a detailed
analysis of the case material ahead of the examination. Candidates will find that the time
available during the examination is sufficient to answer the compulsory questions, but only
if detailed analysis has been undertaken beforehand. When compiling their analysis,
candidates should only use the information found within the case, supported by their
knowledge and understanding of the syllabus.
Candidates are encouraged to use a range of analytical tools and models in order to
undertake a thorough investigation of the key aspects of the case. This will improve their
understanding of the case and the issues faced by the organisation(s) and/or industry
sectors to which it relates. Clearly, the analysis required will vary depending on the specific
case content but, as a guide, candidates should consider undertaking the following:

analysis of the external environment using PESTEL analysis


analysis of the competitive environment using Porters Five Forces model
strategic review using Ansoffs matrix and/or Porters generic strategies
stakeholder analysis
detailed review/analysis of each of the marketing mix elements
product/portfolio analysis (eg using product life cycle analysis, BCG (Boston Consulting
Group) matrix, GE (General Electric) matrix)
SERVQUAL
SWOT analysis.

The copying of pre-prepared group answers, including those written by consultants/tutors,


or by any third party, is strictly forbidden and will be penalised by failure. The questions will
demand analysis in the examination itself and individually composed answers are required
in order to pass.
Candidates will then need to condense their analysis into a FOUR side summary (a
maximum of four sides of A4, no smaller than font size 11. The content of tables, models or
diagrams must be in a minimum of font size 8). The analysis should be numbered for ease
of reference when answering the examination questions.

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Professional Diploma in Marketing

Candidates must hole-punch and staple their analysis in the top left hand corner. They
should have written their CIM membership number and examination centre name on the top
of the right hand corner of each page of the analysis. It should then be attached to the
answer booklet on completion of their examination, using the treasury tag provided.
Although no marks are awarded for the analysis itself, candidates will be awarded marks for
how the analysis is used to answer the questions set. Candidates are advised not to repeat
or copy the analysis summary when answering the exam questions. It is important that
candidates refer the examiner to the analysis summary, where and when appropriate, when
answering the questions.
Candidates are only permitted to take their analysis into the examination room. Candidates
are not permitted to take in the downloaded case study or any other notes. The invigilator
will issue candidates with a new clean copy of the case study at the start of the examination
along with the question paper.
Candidates may not attach any other additional information in any format to their answer
book. Any attempt to introduce such additional material will result in the candidates paper
being declared null and void.
The Chartered Institute of Marketing reserves the right not to mark any submission
that does not comply with these guidelines.

Important Notice
The following data has been based on real-life organisations, but details have been
changed for assessment purposes and do not necessarily reflect current management
practices of the industries or the views and opinions of The Chartered Institute of Marketing.
Figures used in tables may differ as they have been compiled from different sources, using
a range of criteria.
Candidates are strictly instructed NOT to contact individuals or organisations mentioned in
the case study or any other organisations in the industry. Copies of the case study may be
obtained from:
The Chartered Institute of Marketing, Moor Hall, Cookham, Berkshire SL6 9QH, UK or may
be downloaded from the CIM student website www.cimlearningzone.co.uk

The Chartered Institute of Marketing 2011. All rights reserved. This assessment, in full or
in part, cannot be reproduced, stored in a retrieval system, or transmitted in any form or by
any means, electronic, mechanical, photocopying, recording, or otherwise, without prior
written permission of The Chartered Institute of Marketing.

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

DELIVERING CUSTOMER VALUE THROUGH MARKETING


CASE STUDY
Preparation
In preparation for the examination you will need to analyse the case material provided. You
will be given a clean copy of the case study on the day of the examination, but you must
bring your analysis with you into the examination. Your written analysis must not exceed
FOUR A4 sides and must include your CIM membership number on each page. The written
analysis must be submitted as an appendix on completion of the examination and attached
with a treasury tag to your answer book.
Role
You are a marketing consultant with experience in the motor industry. You have been
asked by the Marketing Manager of MINI UK, to advise on a number of marketing related
issues, including:

brand management;
marketing communications to support new product launches and to increase
awareness of the brand and its values;
marketing activities in relation to sustainability and corporate social responsibility;
the consumer car purchase process;
customer service; and
the role of MINIs dealerships.

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Case Study: MINI


Introduction
The automotive industry is truly a global industry, with manufacturers, intermediaries and
customers in all continents. The worldwide industry produced 48 million cars in 2009. When
these car production figures are combined with those of vans, trucks and buses, the
industry turnover is approximately 2 trillion, making it equivalent to the sixth largest
economy in the world.1 The car industry is divided into categories based on the size of the
cars. Cars in the smaller size categories are generally the best sellers. Cars smaller than
the median account for 67% of total sales (Society of Motor Manufacturers and Traders).
In 2009, there were 1.99 million cars registered in the UK, according to the Society of Motor
Manufacturers and Traders (SMMT), which was a reduction of 6.4% on 2008, mainly due to
the economic climate. The industry body reported that in 2010 total sales grew by 1.8%
compared with the previous year. Registrations of new vehicles rose by 35,847 units to
2,030,846 in 2010. However, this was the second lowest volume of car sales in the past
decade and almost 375,000 below 2007 levels. Private car sales fell by 5.6% over 2009,
although business demand was more resilient, with fleet sales increasing by 10.3%. A
hoped-for surge in December sales to beat the rise in VAT failed to materialise.
In January 2011, SMMT predicted that sales of new cars would fall by 5%. SMMTs Chief
Executive, Paul Everitt, said 2010 had been a year of recovery for the motor industry but
that conditions would be extremely challenging in 2011. He added, we are in a difficult
period in terms of public expenditure, concerns about job losses and tax increases.
MINI
Against this turbulent backdrop in the car market, May 2009 saw the 50th birthday of the
launch of the original Mini. In excess of 25,000 dedicated fans, from over 40 countries,
converged at the Silverstone race track not far from the Oxford car manufacturing plant
where the MINI is produced, to share in the celebrations. Despite its purchase by the
German car manufacturer BMW, the MINI, a premium small car, is seen as an icon of
British modernity.
History of the Mini
The Mini was born in 1959. Its name reflected the design of the car a small and
economical four-seater vehicle. This mini car was a new design and category of vehicle
and was introduced in response to the Suez Crisis, during which the availability of petrol
was severely restricted.
Sales of the Mini were slow to take off. It was a very different type of car from those
available at the time, and it was regarded by many people as being too small to be taken
seriously. However, sales increased in the 1960s, when the Mini was seen to be driven by
many celebrities, including the 1960s pop group the Beatles. This changed the image of the
Mini to a classless car driven by people who could easily afford more expensive and
luxurious cars. People chose to buy a Mini because of the convenience it offered, especially
in a city environment.
The Mini also became a major motorsport success in the 1960s. It superseded the larger,
more powerful opposition in both racing and rallying. The motorsport success was built on a
1

The International Organisation of Motor Vehicle Manufacturers, www.oica.net


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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

sub-brand of the Mini name Mini Cooper. Cooper refers to the very successful Formula
One racing car constructor, John Cooper, who successfully made a proposal to the
manufacturers of the Mini to develop higher performance models of the car. The Mini
Cooper won in many categories and gained large amounts of publicity in consequence.
Cars and drivers appeared on UK television programmes that did not normally cover cars or
motorsport, mainly because of the international success that was being achieved.
In 1969, the Mini Cooper was the major star in the film The Italian Job. The film is
particularly remembered for the performance of these cars. The manufacturers of the car at
that time gave no financial contribution to the film and sold, rather than gave, the numerous
cars used in the film to the film production company, despite the massive amount of
publicity that would be gained from their appearance in the film. Even at that time, other
manufacturers realised the benefit of providing cars for films either at subsidised prices or
even for free. The Alfa Romeo models seen in The Italian Job were provided free of
charge.
Mini Lifecycle
The original version of the Mini continued in production until October 2000. This is a very
long production life for any model of car, as the typical lifetime is around six years. The Mini
was a pioneer of the limited edition that is now common in the car industry; these models
are introduced to increase demand in the later stages of the life of a car. They were first
used on a special edition of the Mini released to celebrate 20 years of production. Typically,
the limited edition models had a higher specification of interior materials and equipment,
and some had higher levels of performance.
A replacement car was developed for the Mini, called the Metro, which was launched in
1980. Although the Metro was successful, continued demand for the Mini meant that it went
on to outlive the Metro, which was dropped in 1997 after various revisions and updates.
BMW
One of the most important changes for the original Mini took place in 1996 as a result of the
1994 purchase of Rover the producer of the Mini at that time by the German car
manufacturer BMW. The Mini had rarely been a profitable model throughout its production
life, because the cost of manufacturing small cars is almost as high as that for large cars,
but prices are much lower. BMW reviewed the Mini and increased the specification and
price to guarantee its profitability through the final years of its production, whilst a new
model was being developed as a replacement.
A branding success the BMW MINI
In 2001, the Mini was reborn as the MINI, to differentiate the new version from the original
car. BMW had sold off most parts of the organisation it acquired when it bought Rover.
However, it retained the MINI brand and used it on the repositioned product. The MINI
brand gave BMW a route into a market it did not serve with the BMW range of cars the
Supermini category. These cars are smaller and have a lower price than the traditional
BMW range. Using the MINI brand for an entry to this category minimised any risk that
could be inherent with moving the BMW brand downmarket to the category, but enabled the
MINI to be sold within the BMW corporate brand to enhance the image of the car.
The new MINI of 2001 was designed and built to take advantage of the heritage of the Mini.
It was entirely new in every respect compared with the original design, much larger, but
visually representative of the original and it maintained many of the elements that had made
the original car iconic.
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Jochen Goller, Director of MINI UK, said that the new MINI was introduced as a technical
evolution and a branding revolution. The intention was to change the way the brand was
perceived, especially in the UK market where the majority of the production of the original
Mini was sold. MINI UK wanted to challenge the established brand values and
preconceptions about the car, such as it being a small car, with basic features and
traditionally associated with the colour of racing green. The shift was to emphasise the
emotional attachment that owners have with their MINI.
The new MINI rapidly became a great sales success. BMW had to extend working hours in
the factory, adding extra shifts until the factory was working at maximum capacity. This was
a long way ahead of the original expectations at the time that the car was launched. In
addition, the car was a worldwide success, with sales in many countries including the USA,
which had traditionally been a market for large cars.
Within the BMW Group, MINI is seen as an entirely separate brand from the BMW brand.
The identity of the brand is very different, being predominantly black for MINI, so
representing a creative/cool colour which is post-modern and emotional. BMW, in contrast,
uses largely white colouring for the brand.
The new MINI marketing mix
Product
The new MINI initially consisted of one basic model design but buyers could choose from
multiple options of specification based on three levels of engine performance. With all the
different options for colour scheme, interior specification and exterior accessories, a buyer
could order a car of their own specification from over 250,000 permutations.
There are five basic styles of the MINI:

the core model known as the MINI Hatch


an open-topped version, the MINI Convertible
an estate version, the MINI Clubman
the latest version, the MINI Coup
the larger version, the MINI Countryman.

Each model is available in different specification levels:

One
Cooper
Cooper S.

The power and equipment depend on the level, with the Cooper S having the most power
and best levels of equipment. Petrol engine versions of the MINI all have 1.6 litre engines.
Diesel engines are also available in either 1.6 or 2.0 litre variants. Although competitors are
able to offer a greater variety of engine sizes and specifications, few competitors have the
ability to create such a customised specification as the MINI provides. This is one of the
appeals of the car a customer ordering a new MINI can have it made just the way they
would like it.
After the initial success of the new MINI, the product range extended to include a diesel
engine in 2003, a new body variant in 2004 and an open-top convertible version that
commanded a price premium over the closed version. The convertible was available with
the whole range of options of the standard car. This further increased the choice open to
customers.
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The new MINI was replaced with a revised version introduced in 2007. This matched the
product life of other car ranges far more closely than had been the case with the 41-year life
of the original Mini. Again, the revised MINI of 2007 maintained the visual appearance of
both the original and 2001 MINI, together with other attributes of the brand.
To benefit even more from the appeal of the MINI brand, the product range of the MINI has
been further extended. Initially, the extended range came from the MINI Clubman, a larger
car with a single rear door for easier access to the rear seats, with more space in the rear
and an estate-style body for greater luggage space.
Prior to the arrival of the new MINI Clubman, visitors to the MINI website were invited to
view a film that mysteriously described the other MINI. Although they were unable to
preview the MINI Clubman, they were given the chance to book an early test drive, once
they registered their interest.
The Clubman name was originally used on a variant of the original Mini that had a
redesigned front end. The use of names from the original Mini continued with the
introduction of the MINI Countryman in 2010.
The Countryman is a small Sports Utility Vehicle (SUV) style car to match the lifestyle
aspirations of car buyers, and whilst small for an SUV, it is the largest MINI yet produced. It
caters for those who want a MINI but need more space.
In September 2011, a Coup version of the MINI was introduced, a two-seater, more sporty
version of the hatchback, available only as a Cooper or Cooper S.
BMW has planned future developments of the MINI. Both the coup and roadster variants
of the standard car were unveiled during 2009, indicating that a roadster is likely to be
introduced. Trials have been running for an electric version of the MINI (the MINI E) with a
variety of people, including members of the public, using the electric MINI and providing
feedback to BMW on this important development for the future of cars in general.
At the Geneva Motor Show in 2011, MINI showed a new concept the MINI Rocketman
which is smaller than the existing MINI models, closer in overall length to the original Mini.
Price
Building upon the changes BMW introduced in 1996 with the original Mini, the new MINI
was introduced as a premium-priced product for its size, reflecting its specification and the
association with the premium BMW brand.
The MINI range is priced from 11,810 to 27,255 (excluding the Clubman and
Countryman), which compares with a range from 10,865 to 17,465 for the Fiat 500, the
closest rival to the concept of the MINI. Other rivals include the Citroen DS3, which ranges
from 12,100 to 23,100 and the Audi A1, from 13,420 to 21,800. In comparison, a car
sold less as a premium product, the Ford Fiesta, ranges from 9,995 to 15,745.
Place and Physical Evidence
Following the successful introduction of the new MINI, BMW dealerships built special MINI
showrooms within their main showrooms to offer a slight separation of the brand, whilst
maintaining the linkage between MINI and BMW. This location reflected the standard of
customer service offered with the car a premium service for a car in the supermini
category of a level usually only provided by luxury brands. The franchise for MINI is
separate from that for BMW, but at present all MINI dealerships are BMW franchisees.
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Franchise agreements are time limited, typically for two to five years, although many
dealerships have held franchises for longer periods, with the agreements being renewed.
MINI is now sold through 147 dealerships in the UK. All bar one of the dealerships are run
independently from BMW/MINI under a franchise-type agreement, the one exception being
MINI Park Lane in London, which is owned by BMW. All dealerships have a similar
appearance, colour scheme and layout, conforming to standards set out by MINI.
These standards cover the internal height of the showroom, the type of lighting used, the
style of floor tiles and other elements of physical evidence, ensuring a degree of uniformity
across different franchises. The majority of franchises use new buildings constructed
specifically for selling MINIs. The buildings are all owned independently, with no ownership
by BMW/MINI. In addition to the usual considerations of customer comfort, the showrooms
are designed with sustainability in mind. BMW Group has been named the most sustainable
automotive company in the Dow Jones Sustainability Index 2011, and the company is now
encouraging its franchisees to meet these standards too.
MINI dealerships keep a small stock of new cars, which they own themselves, and may
also have demonstrator cars available, which are owned by BMW MINI rather than the
dealership. Because of the potential to tailor the specification to the customers needs, most
cars are manufactured to order, with the dealership helping the customer to choose the
options they would like.
All MINI dealerships have their own website. The website follows the same visual
appearance as the main MINI website, but with some local content included and an
emphasis on used vehicles.
In addition to sales of cars, new and used, MINI dealerships also offer after-sales service
through parts and servicing, and can assist buyers with finance for the purchase of cars.
Promotion
In re-launching the MINI, BMW wanted to distance the car from any previous traditional
marketing campaigns, setting the tone for the future of the car rather than focusing on the
past. At the time the company at the time wanted to move away from previous associations
with The Italian Job etc, and bring the car into the modern day. BMW also wanted to
ensure that potential buyers were determined by their attitude not by their gender, as the
car appeals to both men and women.
The company adopts a global approach to promotion. It is perceived as a global brand with
no differentiation required except in the UK, because of the heritage of the original Mini.
With the launch of the new MINI, promotion took place both online and offline and in 1999,
a dedicated global website was introduced to support the launch of the new car. In all
markets, other than the UK, the strapline Is it love? has been used. In addition, each
country has some autonomy to develop and implement localised promotional initiatives,
including guerrilla marketing campaigns.
Whilst a global approach was used, the UK was treated separately because of the heritage
from the original Mini. In the UK, a more avant garde approach to promotion was adopted to
emphasise its post-modern and highly individualistic appeal, in order to engage with the
consumer on an emotional level. All UK promotions for the new MINI were linked through
the strapline of A Mini Adventure. Each television advert showed a highly dramatic MINI
escapade, compressed into a short space of time. Branding and all print and other
advertising followed the theme. In more recent adverts, the adventurous spirit of MINI
remains, but the creative idea has often been more about MINI's wonderful individuality.
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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

Despite the different straplines and execution, the MINI retains a global brand value and
language.
2003 saw a remake of the film The Italian Job. The producers gained major involvement
from BMW, which included provision of the cars required for the film (including a brief
appearance by an original Mini). BMW promoted celebrity endorsement of the MINI, with
the car taking the lead on the endorsement rather than the celebrities the reverse of the
1960s approach. BMW also continued the link with the Cooper sub-brand, making it a key
component of the product range and working with the family of John Cooper to produce the
higher performance versions of the MINI. In 2010, BMW announced that the MINI would
return to world rallying with the MINI Countryman in 2011. This will be the first
manufacturer-supported MINI rally team since 1970.
MINI has used national advertising to announce the release of models and to keep people
interested in the MINI brand. This includes advertising through online media, press,
outdoor, TV and cinema.
With 35 million people having access to the internet in the UK, it has become an important
communication medium for MINI. Over the years, MINI has created a series of online
adverts to attract peoples attention and encourage them to visit the MINI website. MINI
also uses flash banners (banners that sit on particular pages of a website) as another form
of advertising. Their flash banners incorporate animated images and video, and have been
designed so that the viewer can interact with the advertisement. One such example allows
the viewer to have a tug of war with a MINI. Finally, MINI has incorporated eye blasters into
its advertising campaigns. These are page takeovers or large adverts that appear as a layer
over the top of the web page itself. One such example involves a MINI driving across the
screen, complete with sound effects.
MINI has incorporated the big screen into its advertising campaigns. One cinema advert
depicted a MINI driven along a country land and disappearing into the distance. The advert
was treated as a feature film, with a classification page and full credits. The film entered the
Guinness World Records as the shortest movie ever made, lasting just 12 seconds.
Guerrilla marketing has also been used effectively by MINI. This takes the form of
unconventional low-budget marketing aimed at maximum impact. All markets for MINI use
guerrilla campaigns, which are individual to the country and intended to raise awareness.
These campaigns can be run independently within the country without having to gain
approval from BMW head office in Munich, Germany.
The outdoor advert entitled MINI Christmas Box was produced by Ubachswisbrun
advertising agency for MINI in the Netherlands, and was released in December
2009/January 2010. The aim was to convey the MINI brand experience in combination with
the low price.
The campaign comprised an actual pile of rubbish in the street, the familiar day-afterChristmas street scene, with rubbish bags, Christmas trees and cardboard boxes that
presents come in. On top of the pile was a large box with MINIs logo on the outside and a
big 99 euro price-tag the implication being that a MINI is an affordable present.
The MINI Box was an eye-catcher, with passers-by stopping and checking the box. It
spurred conversations and people took pictures and videos. The MINI Christmas Box then
spread like wildfire on the internet. The YouTube video was viewed 100,000 times in just six
days. The box also appeared on all the leading car blogs worldwide. The campaign was
featured in magazines and received outstanding reviews on numerous trend-watching blogs

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Professional Diploma in Marketing

and in magazines, resulting in a substantial increase in test drives and car sales in January
2010 compared to January 2009.
MINI Undercover was another interesting campaign. Three new MINIs were launched
together in early 2007. People who had registered an interest online were sent an email
inviting them to see a sneak preview of the new models. The email explained that the MINIs
were 'under cover' but that you could release them by pressing 'the right buttons'. The email
contained a link that allowed people to click through to a web page where computergenerated MINIs were tearing around in a warehouse under a giant piece of silk. When you
pressed a button the MINIs burst out dramatically into full view.
In another example of marketing, MINI piloted an advertising campaign in Chicago, New
York, Miami and San Francisco, which gave selected Cooper owners the chance to get an
RFID key fob in the mail (RFID is radio frequency identification that uses radio waves to
transmit information into a product or person for identification and tracking purposes). Users
could select a custom message to be encoded on their RFID chip, and when they cruised
near an overhanging MINI billboard, their particular message lit up for other drivers to see.
Other international examples of creative MINI advertising have included:

a billboard depicting the MINI driving past two palm trees that are curved around the
billboard to create an illustration of speed and power
a real MINI Cooper hanging from a hand like a yoyo whilst moving up and down a tall
building
a jet ski that has been designed to resemble a MINI Cooper, to give the impression of a
car driving on water
a full-size MINI Cooper on display inside a box, similar in style to the boxes used for toy
cars
billboards in situ on the top of tall tower blocks incorporating a MINI pointing upwards,
with headlamps lighting up the sky
a real MINI Cooper left hanging from a ski lift.

There are MINI websites in each country where MINIs are sold. This is where all of the
credentials for each MINI model are to be found, along with details on financing and
insurance.
Additional mix elements
In the UK, the MINI is available with an optional package that covers all servicing and
repairs for the first 50,000 miles (80,000 km) or five years. The package, known as MINI tlc
(tender loving care), costs 249, a substantial saving over the cost of individual services for
the same period. For an additional 275, this can be extended to 8 years or 80,000 miles
(128,000 km).
Many of the servicing elements for the MINI can be carried out through the MINI Fast Lane
Service, taking no more than 90 minutes. During that time, customers can take advantage
of facilities in a customer lounge, including complimentary wi-fi, newspapers and television.
MINI dealerships even offer a MINI Spa service, where owners can take their car for a
range of cleaning services. Overall, the intention is to provide a painless service for owners
to maintain their MINI, even including some elements of fun to encourage repeat purchase.
BMW and MINI are the only car manufacturers to publish ratings of their dealership network
based on the scores given by customers. The dealership star rating is drawn from customer
satisfaction scores from real customers. Information is collated from customer satisfaction
surveys conducted by MINI UK for new car sales and aftersales transactions. These ratings
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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

are shown on the website for every dealership and allow customers to compare the scores
of dealerships they may choose from. The ratings also have the benefit of producing an
element of competition between the dealerships who all strive to get the highest rating.
The MINI Brand
Symbolic elements and key associations are important aspects of the MINIs brand appeal.
When people were asked to describe the MINI, popular answers included:

fun to be with
energetic
likes to be noticed
cheeky
friendly
lovable/popular
reliable
independent
entertaining
flashy.

Research conducted in 2006 by Simms and Trott2 investigated perceptions of the BMW
MINI brand. Customers viewed the MINI as being a unique personality on wheels rather
than a car, and it was seen to command technical prowess and promote enjoyment. In
relation to three particular areas of the brand they found the following:
Brand Image
The image of the MINI was portrayed as sporty, fun, fashionable and trendy. The MINI was
also considered to be cool, stylish, classy, chic and different. The associations of the MINI
with motorsport and the film The Italian Job were key to the sporty and fun, yet chic and
classy, image it gleaned.
Brand Personality
The personality of the brand was found to be based on characteristics (trendy, sporty and
attractive), traits (cheeky and fun), demographics (young, British) and the uniqueness of the
brand. One area of particular interest from the research was that the image of the brand
proved to be far more important than the actual product quality.
Brand Associations
The heritage of the brand was seen as very important in the research. The MINI was
associated with the 1960s, British, Motorsport and The Italian Job. Further associations
were related to product attributes such as appearance, handling and the ability to customise
the car, as well as its connection with BMW.
Sales
According to its 2009 annual report, the BMW group sold 216,538 MINI brand cars
worldwide in 2009 (-6.8%). The new Mark II MINI Convertible, which has been on the
market since spring 2009, recorded sales of 28,303 units, an increase of 22.0% over the
2

Simms, C.D and Trott, P. (2006) The perceptions of the BMW Mini brand: the importance of historical
associations and the development of a model. Journal of Product & Brand Management, Vol 15 (4).

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Professional Diploma in Marketing

previous years sales of the Mark I. At 150,043 units, the total number of MINI cars sold fell
7.5% short of the previous year. The MINI Clubman recorded a sales volume of 38,192
units (-18.9%). In 2009, the MINI brand continued to generate a very high-value product
mix. More than a half of customers (53.6%) opted for the MINI Cooper, with 26.2%
selecting the MINI Cooper S and 20.2% the MINI One.
Conclusion
The future of the MINI brand looks assured as a core part of the BMW business. BMW has
revealed that in the future, cars at the lower end of the BMW branded range will share
major components with those at the higher end of the MINI branded range. The question
remains, though: how far can the MINI brand stretch?

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

APPENDIX ONE
Registrations of new cars in the United Kingdom by marque
YEAR TO DATE
Company
Audi
BMW
Citroen
Fiat
Ford
Honda
Mazda
Mercedes-Benz
MINI
Nissan
Peugeot
Renault
Toyota
Vauxhall
Volkswagen

2010

% market
share

2009

99,828
109,418
73,317
53,093
280,364
63,652
45,449
74,977
43,894
89,681
109,324
95,608
87,396
247,265
174,655

4.92
5.39
3.61
2.61
13.81
3.13
2.24
3.69
2.16
4.42
5.38
4.71
4.30
12.18
8.60

91,172
98,683
72,450
60,337
316,369
74,819
47,934
72,281
39,866
77,924
102,574
63,174
102,612
237,840
161,137

%
market
share
4.57
4.95
3.63
3.02
15.86
3.75
2.40
3.62
2.00
3.91
5.14
3.17
5.14
11.92
8.08

http://www.smmt.co.uk/2011/01/new-car-registration-figures-full-year-2010/

Registration figures for Great Britain, Northern Ireland, the Isle of Man and the
Channel Islands
December
2010
2009
% change
Mkt share
2010
Mkt share
2009
Year-todate
2010
2009
% change
Mkt share
2010
Mkt share
2009

Total

Diesel

Petrol

AFV*

Private

Fleet

Business

123,817
150,936
-18.0%

62,507
64,649
-3.3%

59,918
85,312
-29.8%

1,392
975
42.8%

52,083
83,319
-37.5%

64,003
60,885
5.1%

7,731
6,732
14.8%

50.5%

48.4%

1.1%

42.1%

51.7%

6.2%

42.8%

56.5%

0.6%

55.2%

40.3%

4.5%

Total

Diesel

Petrol

AFV*

Private

Fleet

Business

2,030,846
1,994,999
1.8%

936,407
832,456
12.5%

1,071,574
1,147,580
-6.6%

22,865
14,963
52.8%

958,005
1,014,304
-5.6%

973,233
882,415
10.3%

99,608
98,280
1.4%

46.1%

52.8%

1.1%

47.2%

47.9%

4.9%

41.7%

57.5%

0.8%

50.8%

44.2%

4.9%

http://www.smmt.co.uk/2011/01/new-car-registration-figures-full-year-2010/
* alternatively fuelled vehicle.

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Professional Diploma in Marketing

Registration figures for Great Britain, Northern Ireland, the Isle of Man and the
Channel Islands continued

1
2
3
4
5
6
7
8
9
10

Best Sellers
December
Astra
Corsa
Fiesta
MINI
Focus
Polo
Golf
Qashqai
Insignia
3 Series

5,377
4,737
4,560
4,236
3,831
3,724
3,267
2,841
2,587
2,477

1
2
3
4
5
6
7
8
9
10

Best Sellers
Full year 2010
Fiesta
Astra
Focus
Corsa
Golf
Polo
207
3 Series
MINI
Qashqai

103,013
80,646
77,804
77,398
58,116
45,517
42,185
42,020
41,883
39,048

http://www.smmt.co.uk/2011/01/new-car-registration-figures-full-year-2010/
Society of Motor Manufacturers and Traders reproduced with kind permission
www.smmt.co.uk

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

APPENDIX TWO

Volume of UK cars

Units
Absolute Size

2006

2007

2008

2009

2010

(000) New
2,439.7 2,344.9 2,404.0 2,131.8 1,995.0 2,031.0
registrations

Growth
Volume
Consumption
per capita
(population)

2005

-3.9

2.5

-11.3

-6.4

1.8

New
registrations

0.0405

0.0387

0.0394

0.0347

0.0323

0.0326

Volume of UK Cars (Estimations)

Absolute Size
Growth
Volume
Consumption per
capita (population)

Units

2011

2012

2013

2014

2015

(000) New
registrations

2,042.0

2,112.5

2,186.1

2,252.7

2,345.4

0.5

3.4

3.5

3.0

4.1

New
registrations

0.0326

0.0335

0.0344

0.0352

0.0364

Source and copyright: Mintel, Cars UK 2011, Mintel Global Market Navigator, 2011

Page 16

Professional Diploma in Marketing

APPENDIX THREE

Product category segmentation


A
B
C
D
E
F
G
H
I

Mini eg Smart
Supermini eg Nissan Micra, MINI
Lower medium eg Ford Focus
Upper medium eg Vauxhall Insignia
Executive eg BMW 5 Series
Luxury Saloon eg Rolls-Royce
Specialist sports eg Porsche 911
Dual purpose (4x4/SUV) eg Honda CR-V
Multi Purpose vehicle eg Renault Espace

Society of Motor Manufacturers and Traders reproduced with kind permission


www.smmt.co.uk

APPENDIX FOUR

Forecast UK sales of small and alternatively fuelled cars (AFVs), 2004-14

Year
2004
2005
2006
2007
2008
2009 (estimated)
2010 (forecast)
2011 (projected)
2012 (projected)
2013 (projected)
2014 (projected)
% change 2004-09
% change 2009-14

New
registrations of
mini cars
000
36.2
27.2
23.3
21.5
28.1
55.0
60.5
69.8
77.7
88.7
96.3
52
75

New
registrations
of superminis
000
839.6
732.8
753.9
770.6
726.0
885.0
867.7
924.0
910.3
942.4
963.3
5
9

New registrations
of alternatively
fuelled cars (AFVs)
000
4.2
6.3
9.4
16.6
15.8
14.4
16.2
19.5
24.0
28.1
32.2
243
124

Total
000
880.0
766.3
786.6
808.7
769.9
954.4
9,44.4
1,013.3
1,012.0
1,091.8
1,091.8
8
14

Source and copyright: Mintel, Small Green Cars and Alternative Fuels, Market Intelligence,
December 2009

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

APPENDIX FOUR continued

Volume sales of UK new and used cars, 2004-14*


Year
2004
2005
2006
2007
2008
2009 (estimated)
2010 (forecast)
2011 (forecast)
2012 (forecast)
2013 (forecast)
2014 (forecast)

New cars (million)


2.57
2.44
2.34
2.40
2.13
1.83
1.74
1.79
1.94
2.05
2.10

Used cars (million)


7.73
7.58
7.58
7.49
7.16
6.66
6.71
7.09
7.37
7.48
7.54

Source and copyright: Mintel, Purchasing of New and Second-hand Cars (The), Market
Intelligence, October 2009

Total value of UK car sales, 2004-14*


Year
2004
2005
2006
2007
2008
2009 (estimated)
2010 (forecast)
2011 (forecast)
2012 (forecast)
2013 (forecast)
2014 (forecast)

Current prices (billion)


62.4
64.5
66.3
69.2
65.1
60.9
60.7
63.6
68.3
72.2
75.3

Source and copyright: Mintel, Purchasing of New and Second-hand Cars (The), Market
Intelligence, October 2009
* Please note this is only part of the original article.

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Professional Diploma in Marketing

APPENDIX FIVE
Top five best sellers by segment (UK) 2009
Supermini
Model
Ford Fiesta
Vauxhall Corsa
Peugeot 207
MINI
Toyota Yaris
Segment Total

Registrations
117,296
84,478
48,037
39,866
30,040
742,153

Market share
15.8%
11.4%
6.5%
5.4%
4.1%
-

Society of Motor Manufacturers and Traders reproduced with kind permission


www.smmt.co.uk

Page 19

Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

APPENDIX SIX

Sales volume of MINI vehicles by model variant in units

2010

2009

Change
in %

Proportion of MINI
sales volume 2010 in
%

MINI
One
Cooper
Cooper S
Total

44,268
76,520
35,053
155,841

41,180
75,213
33,650
150,043

7.5
1.7
4.2
3.9

66.5

MINI Convertible
One
Cooper
Cooper S
Total

4,525
16,613
11,542
32,680

186
16,565
11,552
28,303

0.3
-0.1
15.5

14.0

MINI Clubman
One
Cooper
Cooper S
Total

2,973
19,551
8,793
31,317

2,291
24,265
11,636
38,192

29.8
-19.4
-24.4
-18.0

13.4

MINI Countryman
One
Cooper
Cooper S
Total

1,733
7,770
4,834
14,337

6.1

MINI total

234,175

216,538

8.1

100.0

Source: BMW GROUP, Annual Report, 2010.

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Professional Diploma in Marketing

APPENDIX SEVEN
MINI RECYCLING.
HARD FACTS.
Design for recycling
In the early stages of product development, MINI specialists ensure that hazardous
materials are excluded from all parts and components. The strategic use of recyclates for
component production leads to the reduction of the amount of resources required.
Environmentally-friendly recycling processes already exist for metallic components, and it
was possible to develop similar recycling processes particularly for the ever-increasing
number of plastic parts. In terms of weight, 10% of all plastic parts used in the MINI are
made up of recyclates.
An optimum recycling quota for the materials used in the construction of the MINI is
achieved by placing emphasis on recycling-friendly construction of all components at a very
early stage of development. Design engineers are supported by specially developed
standards that guide recycling-friendly vehicle construction.
Optimised joining techniques and material selection make the economical dismantling of
many of MINI components possible. For example, the outer cover of the instrument panel
and the shelf below make up a one-material system consisting of <ABS+PC>.
The loading shelf and the seat panelling covers are examples of pure <PP>materials. The
loading shelf cover is fastened by only an expanding rivet, and can be detached from the
MINI within seconds. After a side screw has been loosened, the front seats rear panel can
be levered from its clip and rivet joints. These components can then be recycled
completely.
Overall, the stringent implementation of the "Design for Recycling" philosophy at MINI
Development ensured that, as soon as production had begun in 2001, the MINI had already
met the recycling quotas stipulated by the EU directive on end-of-life vehicles for 2015.
The depollution process
Pre-treatment first starts with deployment of the airbags and other pyrotechnic devices. The
MINI then gets moved on to what is known as the depollution rig, where the majority of the
work is carried out. To simplify this process, the MINI has easily accessible drainage
screws and marked drilling points to allow quick and easy access to the operation fluids.
Refrigerant and air conditioning gases are drained off. Brake fluid, cooling fluids, engine
and transmission oils and any remaining fuels are then removed using a number of
specially designed suction tools and intrinsically safe drills. The different liquids are then
filtered and cleaned for reuse, where possible.
Pyrotechnical components
Pyrotechnical components, such as airbags and seatbelt pretensioners, are triggered using
a standardised activation device. This neutralises them, eliminating any risks they may
have posed during the rest of the recycling/dismantling process.
Battery
After the battery has been unclamped and removed, it is sent to a specialised recycling
plant, where it is shredded completely. The <PP> plastics are removed and regranulated,
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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

with the regranulate used to manufacture new <PP> plastic parts. The lead in the battery is
melted down and made into blocks. These lead blocks are then used as raw materials for
the lead-processing industry.
Oil
Discharged oils can be refined and reused in the production of new oil.
Petrol
In the course of dismantling, petrol is removed from the MINI by drilling a hole in the tank at
the deepest point, suctioning off the petrol and then sealing the hole. The petrol is either
burned for energy production or to refuel other cars.
Brake fluid
The discharged brake fluid can be purified via vacuum film evaporation in order to reduce
the amount of water it contains. The output can be used for brake fluid again.
The dismantling process
Reuse and recovery increases the recycling quota of end-of-life vehicles. For metal parts,
reuse or recycling is already a well-established process. Ferrous metal is the principal
material in a MINI and as such accounts for the vast majority of recycled material, and is
directly supplied back into the metal industry. Parts and components can be disassembled
to be used for the same purpose for which they were originally conceived and
manufactured. Glass and many plastics can also be recovered and recycled either at the
dismantler or after the shredding process.
Engine
Depending on its condition, the engine of the MINI is either disassembled or torn out using
a manipulator. It is then either sold or sent to the MINI exchange parts production unit.
Here, the engine is dismantled and cleaned, and any worn parts are replaced. It is then
reassembled and is available for customers as a replacement engine. Alternatively, the
engine and transmission are used as metal-rich scrap. The scrap is shredded and sorted,
and the metal fractions (iron, aluminium and magnesium) are then reused in metal
production.
Catalytic converter
The MINIs catalytic converter is removed using hydraulic shears, and the precious metals
(e.g. platinum, rhodium, palladium) are returned to the materials cycle. They are used,
among others, for the manufacture of new catalytic converters for the MINI.
Glass
During the dismantling process, the MINIs front windscreen is removed using sawing or
milling equipment, and the rear and side windows are knocked out. The glass is then sent
to a sheet-glass recycling plant. The pieces of glass are then ground down. The pea-sized
pieces of glass are sorted, with tinted glass and any foreign bodies being shot out with air
blasts. Recycled glass is an integral part of the glassmaking industry, with most of it being
used in the manufacture of bottles and jars.

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Professional Diploma in Marketing

Alloy wheels
During the dismantling process, the wheels are removed from their axles and the rims and
tyres are separated. The alloy wheels are then melted down and recycled to form
secondary aluminium.
Bumper trims
After the bumper has been removed from the MINI, it is separated into metal and plastic
parts. Rapid dismantling of the large bumper trims, which are made of plastic, is already
guaranteed in the early stages of the product development process. All fastening elements
are easily accessible, and the construction of the trims enables economical dismantling.
The aluminium parts of the bumper trims are sent off to be recycled, and the plastics are
ground down, stripped of their paint finish and regranulated. The recyclates are used in the
manufacture of parts, such as wheel housings (in terms of weight, 10% of all plastic parts
used in the MINI are made up of recyclates).
Rear seat panelling
After being dismantled, the rear seat panelling in the MINI is shredded and then melted
down to form plastic regranulate.
Instrument panel cover
The instrument panel cover and shelf are made of one-material systems consisting of
<ABS+PC>. These components are destined for economical recycling, aided by a joining
technique with quick-release torque screws. The instrument panel cover is shredded,
melted down, filtered and then granulated to form plastics regranulate. All plastic
components are labelled with the materials they are made of, for rapid identification for
separation and optimum recycling.
The shredding process
The remainder of the MINI is transported, often partially crushed or flattened, to the
shredder. Here the hulks are fed through a variety of mechanical and physical shredding
and cutting processes as part of a mixed feed. They are finally sorted into their different
metal fractions, sizes and remaining materials including plastics, textiles, glass and foam.
Body
The shredder reduces the hulk to palm-sized pieces. An air separator is used to sort light
plastic parts, leather, carpets and textiles, which are then used for energy production. Parts
containing iron are separated using a magnet. The remaining non-iron parts will be broken
down in a specialised plant in float/sink reprocessing units into aluminium, copper and
magnesium fractions, and then used in metallurgical processes.
www.mini.co.uk

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

APPENDIX EIGHT
The Car Purchase Process

1. Purchase triggers

2. Defining needs (brands/models)

3. Budget/finance search

4. Scoping for additions/alternatives

5. Feature/benefit analysis

6. Opinion reinforcement

7. Brand/Model refinement
8. Value search

9. Further options
10. Dealer search
11. Negotiate
12. Purchase

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Professional Diploma in Marketing

The Car Purchase Process (funnel stages)


A brief description of each of the funnel stages is included below.
1. The purchase triggers or hot buttons (reasons for funnel entry):
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
l.
m.
n.

Desire for change, time for change


Change of job/unemployment
Purchasing or selling a property
Moving in with partner/getting married
The birth of a first or subsequent child
Inheritance
Current car becoming unreliable
Peer pressure
Need for improved fuel economy (high fuel prices)
Purchase a car with greater safety protection
Owned car coming out of warranty
Car mileage reaching a certain level
Car written off following accident
Manufacturer/dealer promotion (discount finance offer)

2. Defining needs
At this early stage, car buyers begin to evaluate their requirements for the type of car they
require in terms of size, colour, specification, fuel type and price.
3. Budget availability
The budget a car buyer has available is the primary factor that determines whether a new
or used car is purchased as well as the brand and model choice. The majority of car buyers
determine the budget early on in the purchase process and this includes searching for
credit finance if they are not purchasers using cash savings. If searching for credit finance,
a significant proportion of the research time spent in the purchase process is devoted to
finance and trying to find the lowest cost finance as this will ultimately determine the budget
available.
4. Scoping
The process of determining the budget can often result in awareness of wider brand and
model choice. If a consumer realises they can raise more funds than originally envisaged, it
can open up a wider choice of brands and models available within an enhanced budget,
especially in terms of monthly finance repayments. This is where more emotive elements
can enter the purchase process, as consumers begin to think about other potential brands
and models they might be able to afford.
This is also the stage where the car buyers default brand and model list can begin to be
enhanced or rearranged. As the consumers receptive capacity becomes susceptible to
outside stimuli, the brain becomes more open to suggestion and almost fantasises about
brand and model possibilities. This may be stimulated by seeing a car on the road or in a
car park that they may not have considered as being a candidate within their default list.
The stimulus could be an attractive design or style they had not really seen before or seeing
someone they respect in a car they hadnt considered before.

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

5. Cost feature/benefit analysis


This is the stage where the rational/emotive trade-off begins as the consumer rationalises
their emotive brand choices with the practicalities of issues such as running costs Id love a
BMW but I couldnt afford the higher servicing costs. The extent to which the emotional
right brain overrides the rational left brain or vice versa will depend on the persons
personality type and probably whether they are more introverted and thoughtful or more
extroverted and impulsive.
An introverted person is more likely to invest time in analysing features and benefits,
whereas a more impulsive, extroverted person may not want to invest time in feature
benefit analysis and prefer to make a decision based on feelings rather than judgement.
Brand values may have a greater influence on the extroverted or impulsive car buyer who
relies on their perceptions of a brand to influence their decision.
6. Opinion enforcement
When the consumer has arrived at a full choice of models and brands which includes their
default choice supplemented by emotive choice additions, they may then begin the process
of reinforcing their brand and model choices from external expert recommendations. This
might include reading car reviews or seeking peer group reactions to their brand choice to
see if their choices are socially acceptable. It may also include talking to the garage that
services their current car.
7. Brand and model refinement the shortlist
At this stage, consumers begin to reduce their enhanced list down to a shortlist of desirable
brands or models (or possibly just a list of models as the brand decision may already have
been made in stages five and six). This stage will include beginning to visit dealers to see
cars in the flesh and look round them and sit in them to see how their self-concept adjusts
or feels adapting or being seen in this new environment.
8. Search for best value
Having viewed models, the search then begins to find the best value and at this stage the
final choice of brand/model may not have been finalised. Often it will be affordability
aspects that determine the final choice of model or brand. This is where the internet is
employed to compare prices and specifications of cars for sale at different dealers to arrive
at a value bargain.
9. Further brand model options
An internet search can sometimes result in unexpected brands and models entering the
purchase process which may require further consideration. This may result in the car buyer
coming out of the purchase funnel and re-entering at a higher level to re-evaluate their
brand and model choices.
10. Dealer selection
When they have finalised their brand or model choice, they then identify dealers to contact
based on their search for best value. The dealer may then be visited to begin discussions
and negotiations over car prices, discounts, enhancements and delivery. This is the stage
where the dealer either makes or breaks the sale and will depend upon factors such as the
trust the car buyer has with a particular salesperson and how engaging the salesperson is
with the car buyer.
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Professional Diploma in Marketing

11. Negotiation
With the majority of dealer sales staff operating on commission, their willingness or not to
negotiate the amount of commission they stand to make on the transaction may determine
the outcome. If the salesperson is regarded by the car buyer as being inflexible, the car
buyer may well just say Ill think about it and walk away. As part of the sales process, the
question of finance is raised. This can also be a deal clincher or deal breaker. Many
dealerships rely on the profit contribution from finance and try to negotiate the car buyer
into taking dealer finance at a high rate. This can cause the buyer to walk away and start
negotiations at another dealer.
12. The purchase
When all of the buyers criteria have been fulfilled in terms of car specification, price,
delivery and finance, the sale is closed and completed.
Source and Copyright: Mintel, The Purchasing of New and Second-hand Cars, Market
Intelligence, October 2009.

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

APPENDIX NINE
The Perceptions of the BMW MINI Brand:
The importance of historical associations and the development of a model3
Only part of the article was supplied for the exam but the whole article can be accessed by
members via www.cim.co.uk/elibrary.
Simms, C.D. and Trott, P. (2006) The perceptions of the BMW mini brand: the importance
of historical associations and the development of a model. Journal of Product and Brand
Management, Vol 15(4), pp228-238.
http://dx.doi.org/10.1108/10610420610679593

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Professional Diploma in Marketing

APPENDIX TEN
Mini points to revamped BMW image
By Jorn Madslien
Madslien, J. (2009) Mini points to revamped BMW image. BBC News, 20 September.
Available at: http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/8262255.stm
BBC MMX

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

APPENDIX ELEVEN
MINI
United Kingdom
Corporate Communications
Media Information
4th August 2011
FULLY CHARGED: MINI PUBLISHES RESULTS OF UKS MOST IN-DEPTH ELECTRIC
VEHICLE TRIAL

Over 250,000 miles driven on UK roads


Average cost to charge less than 2p per mile
Full results of BMW Groups government-supported research into the day-to-day
running of electric cars revealed
Average daily distance driven 29.7 miles
Virtually all recharging carried out at home
Almost all participants said theyd consider buying an electric car as a result of taking
part.

Understanding how electric cars are driven in the real world has taken an important step
forward with the release of data from the MINI E field trial in the UK. With 62 members of
the public and 76 pool users running the battery-powered hatchbacks over two six-month
periods, the Government-supported trial is the most in-depth of its kind in the UK to publish
its findings.
The enormous amount of data was collected electronically by the car and the home
charging points, and also from extensive driver research carried out by Oxford Brookes
University. The early findings have already informed the development of the 2011 BMW
ActiveE car, a four-seat car based on the BMW 1 Series Coupe, but the biggest beneficiary
will be the BMW i3, the first purpose-built EV from the BMW Group, due in 2013. This
information has also helped to inform UK policy-making decisions and other EV market
stakeholders.
The UK trial discovered that everyday use of the electric MINIs didnt radically differ from
the typical driving patterns of a control group of drivers of conventionally powered cars in
the same segment. In fact, the daily journey distance of 29.7 miles was slightly more than
the 26.5 miles recorded by the control cars, a mix of MINI Coopers and BMW 116i models.
Interestingly, the UK average daily distance driven for private cars overall is less than 25
miles. With information gathered by on-board data-loggers, the average single trip distance
was recorded as 9.5 miles compared to the UK average of 7 miles.
Four out of five people reported that 80 percent of their trips could be done exclusively in
the MINI E, and this increased to 90 per cent of users saying that with the addition of rear
seats and a bigger boot, all their trips could have been done in the MINI E. Overall an
average range of 90 miles was recorded, although 84 percent said that severe cold weather
affected range. Despite that, four out of five participants told the researchers they thought
the MINI E was suitable for winter use, with one user, Janet Borgers, saying she regularly
did 88 miles in a single journey in the cold weather. Another female commuter clocked up
almost 8,000 miles over a September to March period.
Given the daily driven distance of just under 30 miles, the drivers felt confident enough not
to have to charge their MINI E every night. In fact, the average was 2.9 times a week

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Professional Diploma in Marketing

according to information fed back via electricity smart meters, with special night-time tariffs
successfully encouraging individual drivers to charge when it was cheapest, which
coincided with a low demand period and a greater proportion of renewable energy in the
grid mix.
Nine out of ten drivers told the researchers that charging actually suited their daily routine,
with 81 percent agreeing with the statement I prefer to plug in the car than go to a fuel
station. The running cost-savings were appreciated by users, with one participant telling
researchers the thing shed miss most was: the money I will have to start paying for fuel
again!
Most charged at home, with 82 percent using their wall-mounted charging box 90 percent of
the time. The lack of a comprehensive public charging infrastructure in the UK was noted,
with four out of five participants (82 percent) saying they thought that it was essential that
a network of charging points was established. However, almost three quarters (72 percent)
said they were able to use their car perfectly adequately right now as they had access to
private charging.
Asked about their driving experience, the trial participants were full of praise. Every single
one enjoyed the quietness, with one user quoted as saying: I like the silence its very
futuristic and it causes a reaction when people notice you pull away without making a
sound. And they all agreed with the statement: electric vehicles are fun to drive. The
reason was partly down to the fast pick-up and quick acceleration of the 204hp MINI,
again a statement that 100 percent agreed with. One even went so far to say it was
absolutely the best car I have ever driven.
Driving efficiently to extend the range was seen as part of the enjoyment rather than a
chore. Understanding that use of the regenerative braking could increase the range by
approximately 15 percent, three quarters of the users (74 percent) agreed with the
statement that it was a game for me to use the regenerative braking in a way that enables
me to reach my destination without draining the battery.
Asked by the Oxford Brookes University researchers for suggestions to deal with the
potential danger from the low noise at low speeds, over half (56 percent) said that instead
of an artificial noise, the driver should pay more attention. However just over a quarter (28
percent) said theyd like to have a warning noise below 12.5mph.
Almost all participants (96 percent) said theyd consider buying an electric car as a result of
taking part, and half (51 percent) revealed theyd pay a third more for an EV. A third (30
percent) said theyd consider taking the plunge within a year, while 55 percent said theyd
hold fire for two or more years.
The trial found that one week was all that was needed for customers to adapt to the
characteristics and peculiarities of driving an EV, such as charging, range, regenerative
braking and low noise. However those company car drivers invited to use the MINI E as a
pool car on a less frequent basis needed increased training and support during the initial
period of vehicle use in order to condense their learning.
Fleet use was a big part of the trial with organisations in the UK and in Europe reporting
positive feedback from both individual drivers and also fleet managers monitoring the MINI
Es use as a pool car. Those users who swapped out of their regular car reported that the
MINI E was fine for 70 percent of journeys made during the working day, while the pool car
success rate was even better with between 80-90 percent of regular trips achievable.

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

The speed of charging was an important consideration for fleet users, while managers also
flagged up the need for a clear procedure for the efficient charging of pool vehicles.
Companies that participated included Scottish and Southern Energy, Oxfordshire County
Council, and Oxford City Council.
The MINI E trial was one of eight UK projects supported by the 25m Ultra Low Carbon
Vehicle Demonstrator Programme, funded by the Technology Strategy Board and
Department for Transport. These are aimed at bringing forward the introduction of viable
electric passenger vehicles to the UK.
Suzanne Gray, General Manager of BMW i said: The feedback from the trial has been
invaluable in helping our understanding of how people really respond to electric cars and
other factors necessary to support electric car drivers. With this information we will be in a
strong position to provide a well-rounded product and service proposition to customers of
the BMW i3 and to work with other players in the electric vehicle market to make it a
successful experience for a new generation of users.
Kulveer Ranger, Mayor of London's environment director, said: 'Electric driving technology
is coming on leaps and bounds, but people naturally still have questions and concerns.
Research such as this by BMW Group into real life experiences is invaluable as it debunks
some common myths and underscores why electric vehicles are perfect for urban driving.
The trial has also demonstrated the importance attached to supporting infrastructure, which
is why the Mayor of London has launched Source London to provide a network of charge
points that will help to create optimal conditions for electric vehicle use in the UKs capital.
The MINI E Trial in numbers:

40 MINI Es
12 Months
138 Drivers (32 women 106 men)
258,105 Miles
33,345 Journeys
80,282 kWh Electricity
Highest mileage by an individual driver over six months 7954 miles
Average mileage per vehicle over six months, including fleet pool cars 3226
Average cost to charge over six months 60, less than 2p per mile.

Notes to editors:
The MINI E is a two-seat development of the familiar MINI Hatch. It is powered by a 204hp
electric motor that also generates 220 Nm of torque. It is driven by battery power in the form
of a sophisticated 35 kWh Lithium-Ion battery containing 5,088 cells. The battery was
charged by a special home charger supplied by consortium partner Scottish and Southern
Energy. This enables a charge time of 3.5 hours at 32 amps. The MINI E has a top speed
of 95mph and an official range of 149 miles (according to FTP72 standards), although a
realistic range is 112 miles.
The UK field trial mirrored those on the East and West coasts of the USA, in both Munich
and Berlin; Paris; Tokyo and Beijing and Shenzhen. In the UK 40 MINI Es were driven from
December 2009 until March 2011. The 40 private MINI E Pioneers were selected from
applicants in the South East of England and paid a subsidised monthly lease cost of 330.
The remainder were fleet drivers with an individual car nominated by their company. They
represented a mix of males and females from a cross section of income-groups, education

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Professional Diploma in Marketing

backgrounds, urban/rural dwellers, family sizes and annual mileages. Drivers with access to
a MINI E pool car also formed part of the study.
The UK Consortium members who have supported the MINI E trials are Scottish and
Southern Energy who supplied the home/public charging technology and energy, Oxford
Brookes University who devised the research methodology, selected participants and
analysed data from users, SEEDA who provided funding support and enabled the
participation of Oxford City Council and Oxfordshire County Council, and the BMW Group
who led the Consortium, supplied the MINI E and managed driver education and support.
The 40 MINI Es are still on UK roads in partnership activities which continue to promote
awareness and understanding of electric vehicles, and they will form part of the BMW
Group UKs official vehicle fleet for the London 2012 Olympic Games.
BMWs battery vehicle research extends back to the deployment of an electric BMW 1602
during the Olympic Games in Munich in 1972 using lead-acid batteries.
Source: BMW GROUP COMPANY

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Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

Moor Hall
Cookham
Maidenhead
Berkshire, SL6 9QH, UK
Telephone: 01628 427120
Facsimile: 01628 427399
Website: www.cim.co.uk

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