More about possible consumer for MINI

BMW is very clear about its targeting. It only targets the premium-priced cars and does not strive to compete in every segment of the auto industry. It avoids the high-volume market of middle-of-the-road vehicles and focuses strictly on the luxury sector. The Mini, for example, is smaller than a Honda Civic, but is priced at about $3,000 (€2,300) more. This strategy has made BMW, despite its relatively small size, one of the world’s most profitable car makers.

SIGMA was the company charged with researching the market. Sigma⁴: a German research firm has pioneered a method of predicting shifts in consumer tastes. SIGMA looks beyond demographics such as age and income. It often interviews consumers for hours and even photographs their homes and offices to build a picture of the mindset of different consumers. Sigma predictions were that there would be significant expansion of the luxury car market.

What Sigma’s research found was the ‘I’ve made it’ attitude of the 1990s BMW driver, what they called the ‘social climbers’ was now changing to a more family friendly group. They foresaw that as the yuppies declined, other groups with different upscale mindsets would increase in number. They suggested four segments going forward and BMW reacted to the new segments by introducing a car to match 3 of them:

1.    “Upper liberals,” includes socially conscious, open-minded professionals often with families who were successful in the 90s. They were predominantly Volvos, Saabs and SUVs drivers

What did BMW do? For upper liberals, BMW added the X5. This is a SUV that the company prefers to call a “sports activity vehicle,” in a bid to appeal to this group’s active lifestyle.

2.    “Post-moderns” are high-earning innovators like architects, entrepreneurs and artists. They are highly individualistic and gravitate toward head-turners like convertibles and roadsters.

3.    “Upper conservative” are wealthy, traditional thinkers. They’ve never been that interested in driving sporty cars like BMWs, and consider luxury and comfort over driving performance. They would normally purchase the Mercedes S-class and Jaguars as they strive for elegance and sophistication.

What did BMW do? BMW-developed the Rolls Royce, Phantom, which sells for about $325,000, and is intended for the very wealthiest upper conservatives. 

4. “Modern mainstream.” These are family-oriented and active and normally purchase the near-premium brands like Honda or Volkswagen: BMWs were considered too expensive for them. But increasing numbers of them are looking to move up above the middle class and are open to luxury-brand cars.

What did BMW do?

 In 2001, BMW launched the new Mini, aimed at upper-middle-class buyers who were not quite affluent enough to buy a real BMW. This group is also the target market for the new BMW compact, the 1 Series. The Mini brand provided the company with the opportunity to enter a very different segment of the automobile market whilst reducing the risk of affecting perceptions of their existing brand


- Hanna