Demography
Demography contributes significantly to the production and distribution of specific commodities to customers. Demography refers to the group of people receiving particular commodities or services (Smith et al., 2020). It may analyze people based on specific criteria such as age, education level, financial status, class, sex, religion, ethnicity, etc. Demography is a form of data analysis that groups people based on specific traits (Zakaria et al., 2021). In Case seven, the British people are the first consideration for manufacturing MINI vehicles that were purposed to carry few people and reduce the cost of using car transport.
The MINI design also attracted young people in terms of age and heart. It targeted the young and young at heart, meaning old people who love things meant for young -people. The MINI car also never discriminated a people based on their class. Both the low-key and the rich preferred the car because it was efficient and small-sized. The model also cut across all classes by being preferred by celebrities and their fans. Model Twiggy, Steve McQueen, all four Beatles, and Michael Caine are some celebrities observed to have owned the MINIs. The MINI was a special group of cars that did not discriminate against use by anyone due to their affiliation to a specific demographic group since it attracted modern customers all over.
Technology
Technologically, the MINI was a great invention that applied modern technology that changed with time. Technology in the vehicles industry is essential since it helps create an avenue for the reduction of fuel consumption cost (Das & Drine, 2020). The MINI was a great invention that saved on the fuel cost since it was small-sized and more efficient in its duties. The technology level determines the efficiency level and maximizes the car’s utility. The MINI had a 40-horsepower engine that significantly boosted the model’s strength and underwent stages of performance modification by improving its technological appliances. Later the engineers that made the engine section improved them to range between 75 to 245 horse production (Liu & McKibbin, 2022). The model had an innovative design that was small but accommodated four people and still had space for luggage.
The customer demanded better safety and emissions protection, causing the product’s exit from the market. Later, automobiles emerged and took over the market by seeing the introduction of other machines like BMW into the market, writing off the demand for the MINI. Low demand due to better technological improvements led to the erosion of the MINIs from the industry. Despite the erosion of the industry, the MINI contributed to the development of better technology cars.
Economic Environment
The economic value determines its success and defines how people prefer and recommend the item to others. The MINI emerged due to the 1956 fuel shortage in the market due to the Suez crisis. The Suez crisis led to demand for a more economical car model to save on traveling costs. The demand for small and fuel-efficient cars escalated during the period. The invention of the MINI was a great milestone for the car industry since people’s demand for a small, fuel-efficient model became a reality (Liu & McKibbin, 2022). The car carried four people and still had space for carrying luggage.
Customers also experienced a great driving experience that saved on high transport costs by acquiring these fleets with high driving performance and indicated the cars’ useful economic life. Economic factors determine consumer spending since customers need methods to reduce costs and maximize efficiency. However, the BMC faced tough economic times by experiencing financial difficulties leading to MINI’s jump from one company to another. The economic value contributes to how much the consumers use it in their daily welfare (Ehigiamusoe & Samsurijan, 2021). Economic factors relate to the reason that consumers spend on their purchasing power.
Natural Environment
The natural environmental force focuses on how the business contributes to maintaining the surroundings that people exist in by adhering to corporate social responsibilities. The natural environment affects how businesses behave (Asif & Majid, 2018). The elimination of the MINI from the market due to poor performance and high demand for better environmental preservation techniques by the safety and emissions regulations affected the business’ performance. The business backfired since there was less adherence to the safety and emissions standards. Emission is the release of hazardous elements into the environment. In contrast, environmental conservation is the goal form many businesses as adherence to the government’s stipulations to protect the surroundings from destruction. Cars should not emit high amounts of carbon into the environment.
They should also not put the lives of passengers and pedestrians in danger. Corporate social responsibilities protect people from dangerous activities that may result from the business. Corporate social responsibilities protect people from negative impacts that may destroy their lives. The clean air act regulates automobiles from emitting unnecessary gases into the surroundings. Thus, people with breathing problems are protected from smoke that may cause difficulties. The natural environment aims to protect the surroundings from business activities that may contribute to negative environmental impacts.
Obstacles that MINI Faces and their Solutions
MINI is a good product prevailing in the market and has qualities that build its brand image and position it appropriately in the market. However, every business is bound to some challenges and obstacles when in operations, and it is unavoidable. Thus, MINI faces theatres and obstacles in the market that hinder its ultimate penetration into the market to tap the many opportunities. The brand does not adhere to safety and emissions regulations. Failure to adhere to the safety and emissions regulations once prompted the business failure. Another obstacle that hinders total entry into the market is the changing consumer preference that reduces the number of sales the company makes. Consumers are the main reasons why a business thrives in the market. However, changes in consumer preferences for products that are fixed to specific standards are difficult to alter the business (Armstrong et al., 2021). Last, BMW has a robust campaign and advertising that channels investment into inappropriate operations. The business should instead conduct internet advertisements since many of their target audience are youths and minimize the spending on advertisements; they should be objective.
Is BMW Leading MINI in the Right Direction
Yes, BMW is taking MINI in the right direction because it aims to make more product sales while reviving it in the market. BMW understands the target audience for the MINI automobile and identifies the best means to reach them. For example, introducing MINI games, MINI booklets, and MINI suitcases attracted more young audiences. Additionally, the company used the internet to promote the new product in the market. BMW understands the role of proper advertising and applies all the approaches to make the advertisements prosperous, meet the growing demand for more customers, and inform people about the return of the MINI cars.
Moreover, the business has accommodated new changes in the car’s structure, attracting a wider consumer base (Lacobucci et al., 2019. Though the automobile is small, it is designed to accommodate even huge people (Yang et al., 2019). The car can accommodate slightly taller than ordinary people, and its new looks still hold those of the original MINI, like a smiley face and round headlights. Though modified to accommodate better safety and emissions rights, these looks give the automobiles the same identity as the original ones. Thus, BMW is taking the business in the right direction by approaching the right audience.
References
Armstrong, G., Kotler, P., Trifts, P. & Dolansky, E. (2021). Marketing: An Introduction. Seventh Canadian edition. (7th ed.). Pearson.
Asif, M., & Majid, A. (2018). Institutional quality, natural resources, and FDI: Empirical evidence from Pakistan. Eurasian Business Review, 8(4), 391-407. Web.
Das, G. G., & Drine, I. (2020). Distance from the technology frontier: How could Africa catch up via socio-institutional factors and human capital? Technological Forecasting and Social Change, 150, 119755. Web.
Ehigiamusoe, K. U., & Samsurijan, M. S. (2021). What matters for the finance‐growth nexus? A critical survey of macroeconomic stability, institutions, and financial and economic development. International Journal of Finance & Economics, 26(4), 5302-5320. Web.
Iacobucci, D., Petrescu, M., Krishen, A., & Bendixen, M. (2019). The state of marketing analytics in research and practice. Journal of Marketing Analytics, 7(3), 152-181. Web.
Liu, W., & McKibbin, W. (2022). Global macroeconomic impacts of demographic change. The World Economy, 45(3), 914-942. Web.
Smith, R. D., Keogh-Brown, M. R., Chico, R. M., Bretscher, M. T., Drakeley, C., & Jensen, H. T. (2020). Will more of the same achieve malaria elimination? Results from an integrated macroeconomic epidemiological, demographic model. The American journal of tropical medicine and hygiene, 103(5), 1871. Web.
Zakaria, Z., Ismail, M. R., & Arumugam, V. (2021). Macroeconomic Environments and Demand for Retail Space in Shopping Centres in Malaysia. The Journal of Asian Finance, Economics and Business, 8(10), 297-303. Web.
Yang, Z., Jiang, Y., & Xie, E. (2019). Buyer-supplier relational strength and buying firm’s marketing capability: An outside-in perspective. Industrial Marketing Management, 82, 27-37. Web.