Bmw Mini

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BMW Mini brand comes to India
Essay covers marketing mix of the brand
An analysis of the BMW's decision to launch the brand in the current Indian Automobiles environment

2nd October 2012
Vipul Jain
PG20125761
9971478497
vipul.jain.pgp14@iilm.edu

Bavarian Motor Works (BMW) group, recently introduced its iconic Mini brand in India with four models, price ranging between Rs 24.9 lakh to Rs 31.99 lakh.[1] BMW had contemplated launching the Mini brand in India back in 2009 too, but the move was shelved on account of weak market conditions, particularly due to global economic meltdown. The launch of the compact car BMW mini has been on the line of similar introductions in Indian automobile market by auto majors like Fiat and Volkswagen. Back in 2008, Fiat launched Fiat 500 Cinquecento model in India. It was priced at around Rs 14.82 lakh.[2] The car sold only 60 units and was subsequently re-launched in 2010. The sales number of Fiat 500 seems pale in comparison to the sales of Volkswagen Beetle, which was launched in India in November 2009 and had sold 300 units by July 2010[1], surpassing the original sales targets. However, the sales figures, of both these premium small cars are overshadowed massively by sales of other mass produced small cars in India, which are usually sold in Rs 3-6 lakh price range. Then why has a leading automobile maker like BMW launched a compact car like Mini in the Indian market, which cost nearly 5 to 8 times more than a regular small car in India, and then sell only by tens or hundreds and not by masses? This study aims at bringing to the light the strategies and reasons behind this move by the auto giant and what BMW aims to achieve through it. Let us first start by discussing the marketing mix techniques BMW has used to launch the Mini brand in India : Product : One of the most important component of any marketing mix is the product the company wishes to sell in the market. BMW has been strongly associated as a premium quality auto brand the world over. Its slogan "The Ultimate Driving Machine" further bolsters the fact that the company is engaged in making top quality cars, demanded by customers who prioritise the quality of the machine, driving pleasure and comfort over price. Therefore, the company targets the niche segment of buyers who demand top of the line quality product. Taking note of the increasing demand for premium cars in the Indian market the company has been adding several brands of cars, even since it set foot in the country, to the portfolio of the products it offers here. There are eleven brands [6] of cars it currently offers in India, namely: 1. 3 Series

2. 5 Series
3. Gran Turismo
4. 6 Series
5. 7 Series
6. X1 series
7. X3 series
8. X5
9. X6
10. Z4
11. M3&M5
Mini was originally launched by British Motor Corporation in 1959.[3] Ever since the car was first introduced to the world, the Mini brand has carved a niche for itself, and created a sort of cult following and sentimental value towards the brand the world over. According to a Wall Street Journal Report dated January 5th 2012, Sales of Mini brand rose 20% in 2011 from the 234,000 units it sold in 2010, helped by robust demand across the U.S., U.K and China, irrespective of weak economic conditions.[4] Though the launch of BMW Mini was delayed in India (as originally planned to launch in 2009), according to Kay Segler, Senior Vice President, Mini Brand Management and Business Coordination, "Indian market is now ready for a brand like Mini as the country has become a part of the global community when it comes to lifestyle trends." as told to PTI.[5] He further said, "More Indians are travelling and living abroad, they have network overseas and are more aware of trends," Segler said.[5] BMW's market observation as worded by Segler shows that there is a market for Mini in India, for those who wish to own an iconic car,...
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