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Case Study Mini Cooper

1) The document discusses brand revitalization and analyzes how BMW revived the Mini Cooper brand. It involved applying consumer culture theory to understand consumer behavior and priorities. 2) When BMW acquired Mini in 1994, the brand was struggling due to outdated technology, safety issues, and stiff competition. BMW leveraged Mini's heritage and positioned it as a lifestyle brand focused on driving experience. 3) BMW created brand communities, emphasized customization, and used experiential marketing. It applied a "glocal" approach to adapt the brand globally while respecting local preferences. These strategies helped Mini become highly desirable and represented consumers' identities, leading to its resurgence.

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0% found this document useful (0 votes)
200 views

Case Study Mini Cooper

1) The document discusses brand revitalization and analyzes how BMW revived the Mini Cooper brand. It involved applying consumer culture theory to understand consumer behavior and priorities. 2) When BMW acquired Mini in 1994, the brand was struggling due to outdated technology, safety issues, and stiff competition. BMW leveraged Mini's heritage and positioned it as a lifestyle brand focused on driving experience. 3) BMW created brand communities, emphasized customization, and used experiential marketing. It applied a "glocal" approach to adapt the brand globally while respecting local preferences. These strategies helped Mini become highly desirable and represented consumers' identities, leading to its resurgence.

Uploaded by

amishachaubey22
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as ODT, PDF, TXT or read online on Scribd
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Introduction

A brand is indeed considered to be of age as soon as it starts being neglected or shunned by


the consumer (Aaker, 1991). The statement "Old brands do not have to die, they can be given
new life, new stories, and new consumers" encapsulates the essence of brand revitalization, a
strategic process aimed at breathing new life into aging or declining brands. The main
purpose of this essay is to define brand revitalisation through a practical example of taking a
brand who went through the process of brand rejuvenation and construct a deep analysis that
will lead to possible strategies and conclusion.
Literature Review
Brands frequently face the difficulty of keeping relevant and appealing to consumers in an
ever-changing market context. Brand revitalization has emerged as a strategic necessity for
businesses looking to revitalise ageing or declining brands. This essay delves into
fundamental theories and principles that support effective brand rejuvenation efforts, diving
into the rich tapestry of literature around brand regeneration. Schmitt (1999) introduces a new
concept called experiential marketing. Engaging in enjoyable and significant experiences
with the brand can enhance people's positive feelings and sense of connectedness to it. Over
the past 20 years the literature has consistently highlighted the importance of brand
perceptions and the components of these perceptions, including brand image and associations
(del Rio et al., 2001; Bhat and Reddy, 1998; Keller, 1998; Aaker, 1991; Plummer, 1985).
Arnould and Thompson (2005) introduce Consumer Culture Theory (CCT), emphasizing the
dynamic network of material, economic, symbolic, and social linkages in consumer culture
which led to derivation of relevant results. The literature on brand revitalization weaves
together a rich tapestry of theories and concepts. By embracing consumer-centric approaches,
leveraging emotional connections, and navigating the global-local dynamics, brands can
successfully revitalize and reposition themselves in the ever-changing market landscape. This
essay offers a comprehensive exploration of the multifaceted strategies that consists of
successful brand revitalization, and enduring connections with contemporary consumers.
Implementing these consumer theories provides a comprehensive foundation for developing
effective strategies in brand revitalization initiatives.
Case Study- Revival of Mini Cooper by BMW
History
After World War II, Europe saw a surge in demand for low-cost cars due to limited resources.
The UK introduced the MINI car in 1959, designed by Sir Alec Issagonis. The car was the
first in the UK to use fuel efficiently and was customizable to suit different needs. The "MINI
Cooper," designed by racer John Cooper, increased the MINI's popularity. The car gained
worldwide recognition as a representation of "Cool Britannia" and became a must-have
fashion accessory. The MINI's rallying success and celebrity style fame led it to become a
symbol of "Cool Britannia" in various periods, including the Beatles era, spy movies, road
trip movies, and British comedies.
Period of Decline
From 1970 to 1979, the Mini car's appeal started to decline. This got worse when they
stopped making the Cooper model in 1971. In 1980, the Mini was rebranded by the British
Leyland Motor Corporation as the Austin Mini. Again, in 1988, the company changed its
name to the Rover Group, and the Mini was renamed as Rover Mini. The Mini had poor sales
in the 1980s, prompting the Rover group to create unique versions of the car in an effort to
increase demand. The revival of the Mini Cooper in 1990 led to increased demand for the car,
particularly in Japan. During the 1990s, the car was enhanced with features such as airbags
and fuel injection. However, it has remained fairly consistent in comparison to other cars
since its initial release.
Key Issues of Failure
1. Outdated Technology- The Mini Cooper, initially produced by BMC and later by
British Leyland, used outdated technology in its engine and drive system, despite its
fame since the 1950s.
2. Safety Concerns- The Mini Cooper's small size and limited safety features raised
concerns due to global stringent safety regulations, making it less appealing to
consumers prioritizing safety in vehicle choices.
3. Consumer Preferences- The brand faced competition from modern, technologically
advanced small cars, making it struggle to adapt to evolving automotive industry
trends and the preferences of a new generation of consumers.
4. Financial Challenges- Mini brand owners, including British Leyland, faced financial
difficulties in the 1970s, impacting investment in Mini Cooper, research,
development, and marketing.
5. Quality and Reliability- Mini Cooper's aging manufacturing processes and materials
have led to quality and reliability issues, affecting its reputation for durability over
time.
6. Emission Standards- The Mini Cooper faced challenges in meeting modern emission
standards due to outdated engine technology, which led to higher emissions, making it
difficult for Mini Cooper to meet the stringent environmental regulations.

In 1994, BMW acquired the Rover group. They kept the Mini and in 2000, the Mini was
withdrawn from production, and the new Mini Cooper was launched in 2001 designed by
BMW with strong brand image retaining its iconic look and leveraging nostalgia.
Brand Perception and Revival of MINI

Brand image is defined by Keller (1993) as “perceptions about a brand as reflected by the
brand associations held in consumer memory”. This image may have a functional or symbolic
attraction to customers (Bhat and Reddy, 1998). Under BMW's ownership, perceptions of the
brand have shifted from being primarily associated with value for money to a focus on
quality. As the custodian of the Mini brand, BMW faces the difficulty of maintaining the
brand's sleek, fun, and sporty image while managing changes in ownership and product
offers.
As a result, in order to maintain its distinct market position, BMW involved the strategic
application of Consumer Culture Theory (Arnould, E.J. and Thompson, C. J. 2005).
Consumer culture theory as a dynamic network of boundary-spanning material, economic,
symbolic, and social linkages or connections. Consumer culture is what customers do and
believe rather than a personality trait. Concretely, as Don Slater (1997) defines consumer
culture, is a social arrangement in which markets either directly or indirectly mediate the
relationships between lived experiences, that is, between meaningful ways of life and the
symbolic and material resources, such as brands, on which they rely. Here’s how BMW has
applied theory to revitalise MINI brand.
1. Brand heritage (Meaning-Making)
BMW utilized the Mini brand's rich heritage to create emotional connections with
consumers, emphasizing its classic design elements, iconic shape, and historical
significance to evoke nostalgia and connect on a deeper level.
2. Construction of Identity and Lifestyle Branding
BMW positioned the Mini Cooper as a lifestyle choice, encouraging consumers to
construct their identities around the brand. Lifestyle branding portrayed the Mini as
stylish, fun, and distinctive, appealing to those seeking a unique vehicle.
3. Forming of Consumer Communities and Brand Tribes
BMW created brand tribes among Mini Cooper owners through events, forums, and
social media engagement, fostering a sense of community among owners who shared
common interests and values, which in turn contributed to brand loyalty and the
formation of a Mini Cooper community.
4. Consumer Resistance (Differentiation)
BMW strategically positioned the Mini Cooper as a unique, smaller, and driving-focused
product, attracting consumers seeking something distinctive and resistant to mainstream
trends.
5. Glocalisation
BMW effectively utilized globalization and local adaptation strategies to maintain the
global appeal of the Mini brand while adapting marketing and product features to suit
local preferences, enabling the Mini Cooper to be embraced by diverse consumers across
different cultural contexts.
6. Personalisation and Customisation (Consumer Empowerment)
BMW has introduced extensive customization options for the Mini Cooper, allowing
consumers to express their individuality through features, colors, and accessories, thereby
fostering a growing desire for unique and tailored products.
7. Experiential Marketing and Marketing Strategies
BMW utilized experiential marketing strategies, including test drives, events, and
immersive experiences, to create emotional connections with the Mini brand, thereby
fostering positive associations with the Mini Cooper.
8. Psychological Price (Perceived Quality)
BMW used psychological pricing to position the Mini Cooper as a premium small car,
emphasizing its quality, craftsmanship, and advanced features, thus enhancing its
perceived value and desirableness.
BMW's application of Consumer Culture Theory played a key role in the Mini Cooper
becoming highly sought after and admired by consumers. It is seen as an embodiment of
their lifestyle and personal identity. Analyzing consumer behavior and priorities
contributed to the brand's resurgence and sustained success.
Recommendations:
Over the past 20 years, the new MINI has been adopting new concepts in the premium
small car segment. The brand is powerful due to its commitment to the environment,
diverse workforce, and constant innovation. As per the case study analysis of MINI, it can
be derived that the brand also has the opportunity to tap into new customer demographics
and markets. MINI has incorporated new features to tackle the existing problems and is
pursuing an innovative strategy. MINI is ready to achieve BMW Group's sustainability
goals by reducing CO2 emissions throughout the production lifecycle, focusing on
renewable electricity and increasing the use of natural and recyclable materials in
vehicles. This will support the electrification of the entire MINI model range by early
2030s.
MINI can focus on innovative vehicle technology and social community activities to
address global challenges like climate change and urbanization. The company aims to
improve customer experience and generate positive impacts for society and the
environment. The focus on urban mobility concepts, sustainability technologies, digital
services, and initiatives can enhance life in towns and cities.
BMW can continuously enhance the appearance of Mini Cooper cars to maintain their
relevance and appeal to contemporary design trends. Unveiling distinctive models that
showcase unique designs and partnerships with well-known designers or artists. Another
component in the strategy for profitable growth is the enhanced commitment by MINI in
the class of crossover models.
Another component in the strategy for profitable growth is to enhance the commitment by
MINI in the class of crossover models. The company can offer a small-car crossover
model with an electric drivetrain available with an electrified drive and a combustion
engine.
Implementing these recommendations can achieve the vision of Mini Cooper as a
forward-thinking brand that prioritizes environmental concerns and leverages cutting-
edge technology to attract a diverse customer base. While maintaining a commitment to
the brand's heritage with embracing innovation and adaptability.
Conclusions:
The journey of the Mini Cooper from its post-World War II origins to its revival under
BMW's ownership is a fascinating narrative of challenges, decline, and strategic
resurgence. The brand experienced a decline in the late 20th century due to various
mentioned factors. However, BMW's acquisition in 1994 marked a turning point, leading
to the withdrawal of the old Mini in 2000 and the launch of the new Mini Cooper in 2001.
BMW's revitalization strategy, centred around Consumer Culture Theory (CCT), reshaped
brand perceptions and revived the Mini as a symbol of style and individuality. Hence, the
successful resuscitation of the Mini Cooper demonstrates the strength of careful brand
management and adaptation to shifting consumer landscapes. By fusing legacy and
innovation, BMW not only retained the Mini's iconic reputation, but also elevated it to a
lifestyle brand with global appeal. To ensure long-term success in the competitive
automotive business, the case study emphasises the necessity of understanding consumer
culture, embracing change, and matching brand strategy with contemporary values.
References:-

Kolbl, Ž., Konečnik Ruzzier, M. and Kolar, T. (2015). Brand Revitalization: Don’t Let
Your Brands Turn into Sleepyheads. Central European Business Review, 4(2), pp.5–11.
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Moiseieva, M. (2013). Mini Cooper: Marketing Strategy, Digital Marketing, Brand & Ethics.
CRIS - Bulletin of the Centre for Research and Interdisciplinary Study, 2013(1), pp.93–113.
doi:https://doi.org/10.2478/cris-2013-0005.
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, 15(4), pp.228–238. doi:https://doi.org/10.1108/10610420610679593.
Arnould, E. and Thompson, C. (2018). Consumer Culture Theory. [online] Available at:
https://uk.sagepub.com/sites/default/files/upm-assets/93533_book_item_93533.pdf.
www.press.bmwgroup.com. (n.d.). The MINI future strategy: sustainability, diversity,
innovation, profitability and optimism. [online] Available at:
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future-strategy:-sustainability-diversity-innovation-profitability-and-optimism?
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Issuu. (n.d.). MINI Cooper Case Study. [online] Available at:
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https://www.press.bmwgroup.com/global/article/detail/T0223690EN/mini-reinvents-itself?
language=en [Accessed 11 Jan. 2024].
Carter, L. (2016). Brand Revitalisation: 9 Strategies to Revive Your Lagging Brand - Persona
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