Marketing Management in the UK Motor Industry

Five Force Industry analysis

Force Factors Impact
Rivalry Other multinationals – Toyota Vitz, Volkswagen
Own Parent company BMW
Very High
Supplier bargaining power Exclusive features of MINI which are not available in other cars Very high
Buyer bargaining power Availability of many similar models
Various discount dealing on cars similar to MINI
Very high
The threat of new entrants Highly unlikely Low
Threat of substitutes Availability of bicycles and motorbikes Very high

Most of the aspects of the analysis have taken a marketing orientation in areas including brand management, marketing communications, marketing activities relating to CSR, consumer purchase process, customer service, and the role of MINI dealerships. It is important to note that the analysis’s tone is that recommendation on what the author should think as appropriate concerning marketing for the success of the MINI brand.

MINI Brand Management

MINI Brand awareness
  • Car for all classes of people
  • Affordable
  • Reflective of British culture
  • Innovative
MINI Brand appeal
  • Fun to be with
  • Energetic
  • Likes to be noticed
  • Friendly
  • Lovable/ Popular
  • Reliable
  • Independent
  • Entertaining
  • Flashy

Brand management is the art of creating and sustaining a brand. It involves a mastery of the brand itself, developing, keeping, and maintaining the promise (Moore & Pareek, 2009). Furthermore, brand management involves positioning and delivering the brand to consumers. Successful brand management involves a serious mix of marketing media to give a brand its identity. In all the MINI marketing campaigns, it is important to highlight the strengths and heritage of this carmaker, the simplicity associated with handling MINI, the quality, the advantage of the car over others in the market, and the friendly pricing of the car.

More importantly, highlighting the differentiation between the competitor brands and MINI will ensure MINI to curve out a niche in the market that no one else has. The primary aim of all the branding initiatives will be to position MINI as the car of choice based on market expectations. All the branding ventures in the UK must emphasize the special connection the car has with the British and the strong ties and character it has built over the years as a car that is suitable for all classes of people. Besides, MINI’s traditional strengths as well as the improvements made by BMW to keep up with the changing customer needs must prominently feature the brand management campaigns.

Marketing Mix

Product
  • Iconic
  • Environmental friendly
  • Suitable for all the classes
  • Offering a wide variety to choose from
Mode of communication
  • Television campaigns
  • Magazines and newspapers
  • Billboards
  • Internet
  • Radio ads

Successful mixing of marketing media is critically dependent on effective marketing communications that support new marketing launches as well as increasing awareness of the brand and its values to the customers. According to Schultz & Kitchen (2000), integrated marketing approaches have the best chance of succeeding, especially by using the four P’s, price, place, promotion, and product.

Furthermore, it can include people, processes, and physical evidence collectively making it be the seven P’s. BMW needs to employ effective communication that will clearly convey to the right customer the message needed to enhance the brand image. The communication employed must also include elements of receiving feedback from the potential clients on the status of the campaigns. More importantly, MINI’s marketing team must aim at retaining their loyal customers and netting new ones through the use of Dyson’s marketing communication for instance.

In the approach, all the communication techniques will aim at differentiating MINI from the conventional products in the market, especially on the technology front. Additionally, marketing communication will focus on reassuring and reminding customers of the car systems which performance has improved while persuading the audience that MINI is the best option when shopping for a car for all the seasons and classes. In essence, the communication will be reinforcing the perception that MINI is the car for ‘you’.

PESTEL Analysis

Variable Description
Political Laws affecting the auto market are unlikely
Change of government at any time is unlikely to affect sales
Economic The recession has adversely affected sales
Falling sales trend are likely to continue for some time
Social Buyers will go for MINI because of its class.
The car’s “British Icon” tag will be crucial in moving sales and in advertisements.
Customer service will play a crucial role in sales and market positioning.
CSR will greatly improve MINI’s image.
The purchase process is likely to be longer due to increased economic constraints and need for caution.
Technological Internet will be crucial for communication, networking and marketing.
Environment More people are environment conscious now.
They are likely to pay attention to the “green” features of the car.

It is important for MINI’s marketing team to acknowledge the increased environmental consciousness among the population and potential customers. Therefore, marketing activities will include this crucial element in order to reinforce the perception that MINI and BMW cares. All the marketing campaigns will have to feature the recycling features that are part of the early car making process at MINI.

Other features that the audience needs to know include the de-pollution process, the inclusion of pyrotechnical components, batter and oil recycling reuse of petrol from MINI and purification of the brake fluid. Through the above activities, MINI will be positioning itself as a responsible corporate citizen that cares about the environment.

Customer service refers to the series of activities undertaken by firms to ensure that customer gains maximum utility from a purchased good (Armstrong et al., 2009). In the current corporate environment where competition is fierce, businesses have come to acknowledge the importance of every existing and prospective customer. In the motor industry, rapid innovation has seen the need for customer service increase owing to the numerous inquiries generated by the new models.

BMW and MINI must be represented in their marketing campaigns as having a customer service that is helpful and ready to fill the gaps between customer perception and expectation.
Increasing customer contact is one of the most crucial goals that marketing teams aim at (Silk et al., 2006). The above mentioned is not different from MINI. The marketing team supported by the manufacturer BMW will have to put in place measures to ensure delivery of exceptional customer experience at every contact they make with customers. according to this, the marketing will emphasize MINI’s service to exceed expectations at every contact, that is why the role of the dealership comes in handy.

However, the purchase process more often do not involve encountering purchase triggers, defining of one’s needs based on the taste, seeking for financing, some alternatives opinion reinforcement, value search, negotiation and purchase, analyzing the benefits based on the available features. According to Jovanovic (2006),there is a strong perception by a good portion of clients that dealerships are out to maximize profits.

As such, many customers feel dealers prey on them by taking advantage of their little or complete lack of knowledge on the car buying process. Ideally, the dealerships need to help clients to find the right car. The above discussed is the message that MINI’s marketing will be reinforcing among potential customers. that they can use one approach to state and prove that MINI’s dealerships are trustworthy, and, as a result, customers do not need to go through the excruciatingly long car purchase process. Customer service will be crucial in delivering the above mentioned image.

References

Armstrong, G. et al. 2009. Marketing: An Introduction. Berlin: Springer Verlag.

Jovanovic, N.M. 2006.The economics of international integration. London: John Willey & Sons Limited.

Moore, K & Pareek, N. 2009. Marketing: The Basics. New York: Routledge.

Schultz, D.E. & Kitchen, P.J. 2000. Communicating globally: an integrated marketing approach. New York: Routledge.

Silk, A. et al. 2006. What is marketing?. New York: McGraw Hill.

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