Task 1: Introduction
The current research literature aims to explain the prevailing condition of the chosen company
and the ways marketing strategies can be aligned for influencing the young adults. In similar
regards the report works on chalking out the plans related to strategies for marketing that can be
implemented for attracting a large group of young adult customers. There remains no doubt that
the chosen groups of customers are newly employed individuals who love technology influenced
comfort. The moderate to high range of disposable income makes the sector highly profitable to
be targeted. However, it becomes equally important to align the marketing strategies as per the
demands of customers. As influenced by Setiawan and Setyohadi (2018), the young customers
are highly active on the online social sites. Thus, the current assignment aims to understand the
ways segmentation of the young customers in terms of their purchasing behaviour, capacity and
the need of the customers. The MINI automobile company needs to analyse the needs of the
customers and work on analysing and forming their customer attracting strategies. The
promotional strategies need to be streamlined and the customers must be made aware of the
importance. The work therefore proceeds to express the value of the customers
Task 3: Competitor identification
3.1 Identification of competitors and their justification
MINI as a brand is composed of a wide range of competitors based on similar platforms. This
company has several competitors within the automobile market. The current section will focus
on the second generation of MINI Hatchback and the possible competitors in the business. BMW
and Volkswagen can be termed as the biggest competitors within the business. All the cars have
relevant connections with the past and all of them are based on icons on the 20th century of the
automotive industry. The Fiat 500 is from Poland and made by the Italian manufacturer it is the
smallest of the three cars while MINI is the middle sized car in terms of size manufactured in the
UK by BMW (Soyez and Gurtner, 2016). Volkswagen Beetle is the biggest among all the three,
German manufactured in Mexico. Beetle was lauded for having the most powerful engines,
within the range of 1.2L to reach the 2.0L for the petrol cars and 2.5L for the diesel powered
cars. MINI hatchback remains in the second position with engines varying within the range of
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1.4L and 1.6L. Fiat 500 is the last one with the less powerful engines of 0.9L and 1.4L. Both Fiat
and Volkswagen are equipped with automatic gearbox, or 5-speed or a 6-speed manual (Kaushal,
2018). However, in case of MINI the car is equipped with only one of the following features.
The point of similarly for all the cars is that all of them are Front-Engine Front-Wheel-Drive.
In terms of handling the MINI leads the way the suspension setting makes it fun to drive the car.
The right number of engines and direct steering wheel gives MINI a best position to ensure
smooth handling and performance. Beetle from VW is second and the transmission within the
chosen care is not set up for sports driving. Thus, the heavy car falls in second place despite the
powerful engines (Yadav, 2018). Fiat 500 is lightest among all the three cars and is built of less
powerful engines that make the performance and handling best suited for city driving rather than
sports driving. In terms of comfort Beetle comes first due to the spacious backseat and trunk
reaching upto 310lt/vda. MINI hatchback has the smallest trunk space and comes in the second
position for the space related issues.
Fiat 500 is last in the list when it comes to both comfort and driving; it is one with the largest
number of sales across the European Union. The much lower price is the prime reason for the
high number of sales of Fiat 500. However, VW is the most comfortable car but loses the
competition due to the high price range and lack of sport spirit (Gbadamosi et al. 2017). From
the above comparison one can easily conclude that MINI hatchback has more premium features
and may not be threatened by the competitors. However, the lack of suitable competitive
strategies emerges as a potential problem that makes Fiat 500 the most sold car.
3.2 5 Critical success factors for the chosen company
Following are the critical success factors that can work on influencing the success for MINI and
the product (Thomas, 2020):
Product diversification can be termed as one of the greatest reasons that make MINI best suited
for the customers for the chosen age group from all social background and geographical
locations
MINI is linked with racing heritage that makes the car more prestigious. The young generation
is inclined in sports and racing. The chosen car can help in meeting their needs within a specific
budget (Thomas, 2020).
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Collaboration with German engineering is termed as one of the best strategic moves for the
chosen automobile company. The British style with German engineering amalgamates the iconic
style with superior engine quality inspired from the BMW making MINI Hatchback an ultimate
driving machine
Customise your MINI as per the needs. As influenced by Yadav (2018), millennials these days
are looking for the value of their money and ways to invest in areas that give them maximum
returns. The customization of the cars makes MINI a personal favourite of the younger
generation as they have varied needs. As influenced by Adnan (2018), customization of product
is a simple way of letting the customers know that the company cares
British heritage is termed to be highly sophisticated in terms of design. The quality of the
product coupled with the design can be termed as one of the major success factors for the chosen
company, making it one of the most sought after cars in the UK (Swarnakar, Kumar and Kumar,
2016).
3.3 On the basis of Critical success factors identify the company strength and weaknesses
The strength of the chosen company is the ability to adopt new methods to meet the customer's
demands. In similar regards it becomes important to understand the fact that the act of product
customization is the biggest strength that makes the car mostly preferred among the young
adults. The roots to the cultural aspect can make it important for the targeted customers to
purchase the product as per their needs. As Ahn (2019) stated, the consumer behaviour is
influenced by a series of factors, culture being one of them. It is important to note the fact that
young customers are seen to be deeply rooted to cultures while buying products that demands a
great deal of financial investment. The ethnic roots of the chosen car make it one of the most
sought after products.
However, a specific cultural aspect of a product may not work while the automobile company.
English legacy is named to be exceptionally advanced as far as plan. The nature of the item
combined with the structure can be named as one of the significant achievement factors for the
picked organization, making it one of the most looked after vehicles in the UK. However, the
company is looking for a global establishment and meeting the needs of the UK customers may
not be enough (Belanche, Casaló and Flavián, 2019). Thus, the company needs to work as per
the demands of the customers outside the EU to overcome the mentioned weakness
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3.4 On the basis of Critical success factors identify the potential changes that the company
needs to make in marketing
Targeting the group of young customers demands a change within the traditional marketing
approach. As influenced by Lee (2018), the young customers are readily available on the social
media platforms. The approach to product diversification and changing as per the needs of the
customer may be rendered useless if the targeted customers are not reached within a speculated
span of time. Thus, it is of prime importance that the business works on establishing a strong
social media presence that can make it suitable for the company to reach the targeted customers.
Task 4: SWOT
4.1: SWOT of the company
Strength Weakness
Ability to customize as per the needs of the
customers
Classic design and high technology engine
Ability to provide high class products
Sticking to one cultural mode for product
development
Poor engine strength as compared to leading
the leading competitors within the EU
Limited innovative approach in terms of
business
Opportunities Threats
Targeting the young adult customers for their
high rates of disposable income
Ensuring strong social media presence for
attracting the attention of the targeted
customers
Collaborative approach to the German
engineering for getting powerful engines
The lack of powerful engines can make the
company prone to poor performance in the
market
The absence of online presence can be a major
obstacle
Failure to make use of right marketing
strategies
Table 1: SWOT ANALYSIS
(Source: Thomas, 2020).
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4.2: Current situation of the company
The current situation in the company is based on a series of factors that includes purchasing
power of the customers demand for the products. The automobile sector is termed as a great area
of investment for people from all demographic areas. It becomes important to understand the fact
that customers need to understand the perspective of the business dynamics for getting what they
want. The company MINI had an awful year. The brand sold 361,531 Minis over the globe in
2018, a 2.8% drop from the earlier year. In the U.S. where the little vehicle is a specialty item,
the shortfalls are significantly bigger with a 7.3% year-over-year drop in deals. In December
alone, the year-over-year drop in U.S. deals was a shocking 40% (Thomas, 2020).
The hatchback, which began its life as a post-World War II answer to a moderate city vehicle,
has seen the two its weight and value take off from $800 and 1,400 pounds at its 1959
presentation to $21,900 and 3,000 pounds for the latest emphasis (Thomas, 2020). The car
company was subjected to major setback and issues related to sales. The recession across
different parts of the globe is an additional drawback that makes it increasingly difficult for the
business the gain expected profit margins. The chosen company in the mentioned context aims to
diversify and produces a range of products that meet the needs of the customers.
Task 5: Targeting
5.1: Key characteristics of target customers
The target customers of the chosen company are the people from the young generations. As
influenced by Nurunnobi, Prasad and Arifuzzaman (2016), following are the set of
characteristics of the young generations:
Millennial expect the technology to work simply. The young customers have grown with
technology as an indispensable part of their lives. As supported by Pugnetti and Bekaert (2018),
naturally the millennial align and embrace themselves with technological advancement. The
modern event related to technology aims to understand the possible ways that can be adopted to
engage the millennial in the chosen product. Thus, it becomes important to assess the products
and upgrade them through modern technologies.
Millennial are a social generation, they socialize during the course of consumption with the
services and the products they have chosen. The social behaviors of the millennial create greater
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implication on the automobile service sector (Adnan et al. 2018). Millennial these days are not
silent users of the products or services they tweet and post reviews of the products they use,
making them a prime source of marketing. The visible lack of conflicts between the previous
generations and the millennial can be important for the carrier businesses for providing the
needed commercial messages for the friends who can be converted into potential customers in
near future (Swarnakar, Kumar and Kumar, 2016).
Millennial collaborate and cooperate with one another and even with the brands when
possible. As influenced by Pugnetti and Bekaert (2018), the positive community mind-set of the
millennial of “we can fix it together”. The mentioned proactive mindset of the millennial helps
them to collaborate with different businesses brands. As stated by Pratono and Tjahjono (2017),
the millennial fail to look at brands any differently and help the brand to co-create. Companies
which understand this aspect figures out the possible ways of ensuring better business of co-
creation giving the expected competitive edge in business
Millennial are often seeking ways to enjoy adventure. As stated by Thakur (2016), millennial
are always seeking ways for adventure and enjoying life. While shopping the targeted generation
relies on the experimental retail environment where the act of shopping is purely transactional
and the pleasure of the purchased goods extends beyond the retail experience.
Millennial are passionate about values. As stated by Roese and Kompella (2017), the
millennial are a generation which is highly driven by value. Millennial are often seen to integrate
their beliefs into the products being purchased. Thus, it becomes important to understand the fact
that the business needs to understand the importance of values of the customers for
understanding the consumer behaviour of the young adults. The individuals within the chosen
generation are motivated and goal oriented. The fear of being non-conformist may emerge as a
potential barrier to purchasing behaviour of the customers. The cultural aspect related to buying
behaviour continues to remain important for the chosen business to understand the business
prospect (Rosenbaum et al. 2017).
5.2: Profile of the target customers
The customers for the chosen product are within the range of 18 to 25 years. The current
populace enjoys a good range of disposable income. On one hand the disposable influx of money
may be termed as a good thing for the chosen company as it opens in the prospect of sales for the
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increasing the profit margins. The customers within the chosen demographic sector are
additionally influenced by online reviews and purchases. As stated by Ihtiyar et al. (2018),
millennial are often seen to make online purchases after reading the reviews that in return can
work on saving their time to a greater extent. In similar regards, Rahimi (2019), argued the fact
that a lot of millennial may be interested in reading online reviews before making the purchase;
however, the purchase is not made from online platforms. Millennial are more than often seen to
make purchases from physical retail stores as it helps to test the product and assess the intangible
assets which may not be prominent in case of online purchase (Jayaraman et al. 2018). In
addition to that the young adults are seen to enjoy their lives, go for studies and even for social
gatherings; an automobile that is heavy to operate adds tension and makes it difficult for them to
enjoy the drive. Thus, it can be conclusively stated that young adults are always looking for ways
to enjoy their lives (Kim et al. 2017). A car that is easy to operate and handle over longer period
can help in gaining maximum preference among the targeted customers. Most importantly the
young adult customers have a clear understanding about the value for money. The chosen age
group of 18 to 25 years often comprises newly employed individuals. The car is often sought as a
mode of investment. Investment in the right product can give the expected results. The expected
results can thus lead to better outcomes for the purchase of the product (Rani and Chahal, 2016).
Financial security is termed as one of the most important aspects while making purchase of a
product, irrespective of the targeted demographic group. The chosen generation thus exhibits a
key level of awareness for justifying each purchase with the money that could have been
invested for a better future. The customers in the mentioned scenario prefer to remain in a
situation that is free of worries. Buying a car is a huge investment and needs to be taken care of
with great attention (Tamboto and Pangemanan, 2016). The people in the chosen sector need to
get a better return on their investment. The customers thus need to be targeted in the right way
and the company should work on getting better profit margins by keeping the customers happy.
5.3: Perpetual map
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5.4: Justification for providing the values
The car MINI Hatchback is limited in terms of space and engine quality. The high engine quality
can work on enhancing the level of product quality. The current quality of the product is on the
higher side. However, as the business plans to expand in further sections it needs to work as per
the demands of the customers (Ryu et al. 2016)
The up gradation of the engine can give the car better rates of pick up rate and a sports car's
feeling. The customers at this instance do understand the fact; in terms of handling the MINI
leads the way the suspension setting makes it fun to drive the car. The right number of engines
and direct steering wheel gives MINI a best position to ensure smooth handling and performance
(de Souza, 2019). However, the aspect of smooth handling is not the limited aspect that needs to
be considered. The quality of car and the adaption to the demands of the customer needs to be
done and thus the mentioned feature can be rightly justified
Task 6: Recommendations
6.1 Recommendations to improve product
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Size the scope and not the market: In order to create a clear understanding of the opportunity it is
important for MINI to look at the entire market to look through the lens of the young customers
to understand the to determine the exact potential. As stated by Monangin (2016), by accurately
sizing the opportunity, the business can help in chalking out the exact business plans.
The aspect of product development needs to be considered with price for ensuring better business
outcomes. As influenced by Uma and Ramanathan (2016), companies are often seen to make use
of cost based pricing in order to validate an acceptable return on investment for the business case
when they should be developing price of the product on the basis of the cost threshold of the
customer to make sure that the cost does not act as a potential barrier for the customer who really
wants to buy the product. As expressed by Baruch (2016), twenty to thirty year olds are
continually looking for ways for experience and getting a charge out of life. While shopping the
focus on age depends on the test retail condition where the demonstration of shopping is
absolutely value-based and the joy of the bought products stretches out past the retail experience.
Twenty to thirty year olds are energetic about qualities of the product. As expressed by
Mathijsen (2017), the millennial are an age which is profoundly determined by esteem. Twenty
to thirty year olds are frequently observed to incorporate their convictions into the items being
bought. In this way, it gets critical to comprehend the way that the business needs to comprehend
the significance of estimations of the clients for understanding the buyer conduct of the youthful
grown-ups. The people inside the picked age are propelled and objective situated. The dread of
being non-traditionalist may rise as a potential hindrance to buying conduct of the clients. The
social angle identified with purchasing conduct keeps on residual standard making it significant
for the picked business to comprehend the business prospect (Monangin, 2016). Thus, getting the
customers involved can help in the act of product development. Thus, it is important to create an
advisory panel that can work on improving understanding the ways that can be further
implemented for ensuring better rates of product development.
6.2 Recommendations to improve promotional activities
The rate of promotional activities needs to be changed and streamlined as per the current needs
of the customers. The MINI needs to establish a strong social media presence. As affected by
Baruch (2016), the youthful clients are promptly accessible on the web based life stages. The
way to deal with item enhancement and changing according to the requirements of the client
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might be rendered futile if the focus on clients does not come to inside a guessed length of time.
Along these lines, it is of prime significance that the business deals with building up a solid
internet based life nearness that can make it appropriate for the organization to arrive at the
focused on clients. In similar regards, it is important to connect with the customers that can help
the customers to understand their value within the company. As stated by Verma (2017), if the
customers are rightly valued that in return can help in retaining the customers.
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Appendix
PESTLE ANALYSIS
POLITICAL:
The goods and service tax is a great
opportunity for automobile companies.
The Brexit has resulted into both political and
economic uncertainties.
The high barriers of trade are both a threat and
an opportunity for the industry.
ECONOMIC:
The UK slow economic growth post Brexit has
resulted into a decline in sales
The intensive competition in the automobile
industry.
SOCIAL:
The changing lifestyle of millennials whereby
they have shifted from car ownership to access
and buying cars has become unnecessary.
Use of transportation apps such Uber hamper
sales of cars
TECHNOLOGY:
The introduction of intelligent connected cars
is a major trend which will impact the whole
industry.
ENVIRONMENTAL:
The emission norms where by car
manufacturers have to give the declaration of
the emission levels of cars the manufacture
will impact the automobile industry.
LEGAL:
With the government taxing automobiles only
28% and a reduction on smaller cars and
SUVS this will positively impact the
automobile industry and the buyer at the same
time.
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