Mini In 2019 - The cool car takes on the conservative company car market
Corporate goals?
Relaunch classic model for the new Millennium p.1
BMW
German Brand
Swedish company car market
Since 1990, grew at a higher pave than the general sales of cars
A2017, no less than 62% of all new cars were registered company cars. 46% in 2018. p.23
Company cars is a new area for MINI
Trends
2018, implementation of new environmental policies . the bonus-malus car taxation laws. SUVs suffer. --> Not typically for Sweden.
Change in the market, overall!
the new plug-in hybrid Countryman, mid-sized SUV Top Gear named “the driver’s car among small crossovers”, could challenge incumbent competition disruptively in the company car market.
Competitors
Tessla
KIA (South Korea) --> e-Niro (affordable plug-in hybrid small SUV). p 2-3
Mini's vision next 100 concept car - Urban mobility over the years ahead
Personalised experience - design p.4
Philosophy: The thoughtful use of the planet's resources in providing personal mobility. p.5
Motto: Every MINI is my MINI
Try to create a linkage between the brand and the coolest section of the millennial, design oriented urban culture.
In the future, Customers of the brand would, the marketing people mused, call on MINI for a much larger shares of personal services, going beyond transport and tailored to their personal requirements where they are, day or night. The MINI of the future would be available 24/7, picking its driver up from their desired location in a fully automated way, and adapting itself to the driver’s individual tastes, interests and preferences.
A/D/O - The new urban creative hub p.5
His game plan was to introduce all of these smart technical novelties to reduce the space occupied by the engine and gearbox, that is, to produce a car with minimum overall dimensions and with maximized space for passengers and luggage. p.8
BMC - British Motor Corporation
By being associated with the generation the 60s, the Mini somehow developed into a ‘class- less’ car, e
Unlike fashion and music, the Mini's appeal transcended not only class and sex, but also age.
From the 1960s an onwards, the sales was driven by a proliferation of new models. p.11
By acquiring Rover?
Rover’s pioneering SUV technology (i.e. Range Rover and Land Rover) which would provide with a short-cut into this expanding segment.
BMW’s could expand its customer-base by launching a mid- priced brand competing head-to-head with VW, Renault and PSA (Citroën/Peugeot), which would bring the economies of scale to new levels for BMW
Bernd Peter Pischetsrieder was not only an enthusiast for British cars, but also, as it were, Sir Alec Issigoni’s the grand- nephew.
In the early 1990s, BMWs top-executive, CEO Bernd Pischetsrieder, convinced BMWs Board of Directors to agree to
make a £800 million bid for Rover to BA.
Having Pischetsrieder’s full backing, Project R59 attracted not only tal- ented British engineers but also attention from BMW’s resourceful engineers.
At the same time the MINI, which was manufactured in Oxford, stood out clearly as the first premium car in the compact segment, achieving a status strongly reflected by a level of safety uniquely high for a car of this class as well as the uncompromising standard of quality so typical of BMW.
p.18
Customisation p.19
As to the attitudes based on the research made by Simms and Trott, Mini’s customers most of all perceive Mini as a sporty, fun, and fashionable brand in addition to an historical iconic association (2006, pp.231- 234). p.19
Tom Salkow- sky, Mini's marketing chief, said it's a continuation of the brand's long-time strategy of turning left while the rest of the auto companies turn right. p.20
The Mini Countryman has always had two jobs. It’s been the Mini for people who want a crossover. But also for people who had a Mini (a real one, a three-door hatch) but who then needed to trade up into more space. Because that extra-space role is now very nicely filled by the new Clubman, this second-generation Countryman has be- come the Mini with even more extra. p.22
Swedish government gave a significant push to the growth of company car sales through a comparatively low level of taxation of fringe benefit cars. (Förmånsbil)
The Swedish employers – private as well as public – adapted generous company car policies, widely using company cars as ‘fringe benefit’ cars. p. 23-24
True to the Swedish car culture, fi-
nally, the employers also included large premium cars in their fleets, indicating the com- pany that the privately used company car (fringe benefit cars, or FB-cars) as the family’s “first” car. --> More at p. 24-25
Two customer segments.p.25-26
Small companies
Large corporations
Typically, the large corporations with major fleets based the development of their fleets on fleet operation routines, purchasing/leasing strategies and well-defined company car policies. p.26
Typically, the large corporations interacted directly with the OEM’s key account managers to get competing bids when they announced their annual purchasing plans. p. 26
Value chain
From the days of Henry Ford's production line, the automobile industry has been based on a "supply-push" philosophy -- a strong bias toward ‘filling the factories’ to cover high fixed costs. p.27
Growth p. 29
OEM franchise dealers were not just selling new company cars. We only sell one car 10%, we sell finance and insur- ance 60%, service agreement 70%, all with our card. p.29
car retailing depended on their service business to the extent that retailers without, or with a shrinking service business, would have no financially viable future. p.30
Customer loyalty important p.30
Dealer inertia p.31
Digitalization
Omni-channel approach p. 32.33
Inlåsningseffekt? Endast OEMs har access
EU? p.33
Customers p.36
Fossil Free Fleet in Sweden by 2050, FFF p.37
Digitalization p.32?