BMW acquired Rover Group in 1994 and began developing a new Mini. Rover wanted a small economy car while BMW wanted a small sports car. BMW retained Mini when it sold Rover in 2000. The new Mini was launched in 2002. Some key design considerations for the US market were that BMW wanted to enter the small, fun car market and target young, first-time buyers. The Mini would need to be bigger than the original for US roads and safety standards but still sporty. Market research would be needed to understand US customer preferences for small cars and ensure the redesigned Mini avoided pitfalls seen in other retro redesigns when bringing back iconic brands.

1. Case Presentation:
Esther Mingel
Case 1: The Mini

2. Case 1: The Mini
“We offer our customers emotional products,
which, through the strength of the brand and
the substance of the product, fulfill the
customer’s wish for individualization and
differentiation. The BMW Group will never
build boring products.” – Helmut Panke,
BMW new Group’s CEO

3. The original Mini -
A 60’s icon
• The Mini is a small economy car made by
the British Motor Corporation(BMC) with over 4
million sold during 1959-200 production. The
original is considered a British icon of the 1960s
• BMW acquired the Rover
Group (formerly British Leyland) in 1994 and
began a new development of new MINI
Rover wanted MINI to be an economy car
BMW wanted MINI to be a small sports car
• BMW sold Rover in 2000, but retained Mini. New
MINI was launched on 22nd March 2002

4. 1.What were the most important design considerations
for BMW when redesigning the Mini for the US car
market?
• Addressing the issues:
BMW wanted to enter the small, fun car market
and target young and first-time car buyers in the
US.
The existing market of Mini is in Europe
Customer preference for small cars might be
different in US

5. HOWEVER…
• Opportunity for BMW !
 Brand recognition: BMW still remains the world’s most
successful premium car brand and the reputation for it’s cars’
quality
 Strategic product development by Helmut Panke: launched a
new model every three months from 2003-2005; ranged from
Mini to the Rolls Royce
 Environment: difficulties in dealing with labor cost control in
the European political situation, led BMW to expand its
production facilities in the US
 Consumer insight: New trend of purchasing more economical
vehicles in the US

6. Thus, the important design
considerations to enter US market:
Small BUT
feisty
Growing
environmental
awareness
Increase cost
of fuel

7. Features :
 the first new Mini, bigger and heavier than
original Mini with better equipped and better
crash protection
The “big Mini” is longer by 24cm; larger trunk
space
The Open-Air Mini, still has the same engine and
equipment choices
Limited Editions Mini, with these features:
o limited to 250 units for all of Europe
o Special paint
o Unique wheels
o Aerodynamic kit
o Black leather interior
with red stitching

8. What would be the most important benefits
to design into this car for the targeted
market segments?
• Benefits for the targeted market segments:
Affordable price
Sporty design
BMW quality
Fuel efficiency

9. 3. When a car such as the Beetle or Thunderbird is
redesigned or given a facelift for modern car buyer, what
are the design pitfalls and concerns and the market
research should be conducted to ensure pitfalls are
avoided?
Design Pitfalls & Concerns:
1. Product
differentiation
2. Utility car size
3. Driving experience
4. Maintenance and
repair
5. Quality of the user
interface
Market Research:
1. Focus group
2. Simulation
3. Focus group/Surveys
4. Simulation
5. Prototype
6.
Simulation/Prototy
pe

10. Mini USA sales from 2002 to 2013:
-MINI USA had its best sales figures ever in 2013.
-As per reported, The MINI Countryman sales figures have
been strong
Year Number of units sold
2002 24,590
2003 60,600
2004 96,632
2005 137,452
2006 176,623
2007 218,668
2008 272,745
2009 317,970
2010 363,614
2011 421,125
2012 487,248
2013 553,750