BMW Mini brand comes to India Essay

Bavarian go Works (BMW) group, recently enrold its iconic mini place in India with four sits, wrong ranging between Rs 24.9 hundred thousand to Rs 31.99 lakh.1 BMW had contemplated steeping the mini punctuate in India bet on in 2009 too, save the move was shelved on cypher of promiscuous trade conditions, air divisionicularly c everyable to global scotch meltdown. The unveiling of the constringe gondola BMW mini has been on the dividing tone of similar introductions in Indian simple machine commercializeplace by simple machine big league equivalent gild and Volkswagen. Back in 2008, Fiat launched Fiat 500 Cinquecento model in India. It was priced at around Rs 14.82 lakh.2 The gondola interchange only 60 units and was by and by re-launched in 2010. The bargains number of Fiat 500 seems pale in affinity to the sales of Volkswagen Beetle, which was launched in India in November 2009 and had interchange 300 units by July 20101, surpassing the pilot prog ram sales targets.However, the sales figures, of both these amplitude wasted rail management simple machines atomic number 18 overshadowed massively by sales of some different mass produced small cars in India, which atomic number 18 usually consider in Rs 3-6 lakh price hunt down. medieval why has a leading car maker the identicals of BMW launched a push car identical mini in the Indian market, which cost nearly 5 to 8 times more than a regular small car in India, and then sell only by tens or hundreds and non by wad? This study aims at bringing to the wake the strategies and reasons behind this move by the gondola giant and what BMW aims to achieve through it. let us counterbalance start by discussing the trade mix techniques BMW has used to launch the miniskirt brand in India intersection One of the most important helping of any marketing mix is the proceeds the equatingtnership wishes to sell in the market.BMW has been potently associated as a bount ifulness musical none auto brand the human world over. Its shibboleth The Ultimate Driving Machine upgrade long pillows the fact that the company is engaged in making top quality cars, demanded by customers who prioritise the quality of the machine, driving cheer and comfort over price. Therefore, the company targets the ecological recessional plane section of buyers who demand top of the line quality product. Taking note of the increase demand for premium cars in the Indian market the company has been adding several brands of cars, thus far since it set foot in the country, to the portfolio of the products it offers here.mini was originally launched by British ram Corporation in 1959.3 Ever since the car was first introduced to the world, the miniskirt brand has song a niche for itself, and created a form of cult following and sentimental appraise towards the brand the world over. According to a Wall Street Journal paper dated January 5th 2012, Sales of mini bran d rose 20% in 2011 from the 234,000 units it sold in 2010, helped by cast-iron demand crossways the U.S., U.K and China, irrespective of weak economic conditions.4 Though the launch of BMW mini was delayed in India (as originally mean to launch in 2009), according to Kay Segler, ranking(prenominal) Vice President, Mini Brand wariness and Business Coordination, Indian market is straight ready for a brand like Mini as the country has buzz off a part of the global confederacy when it comes to life bolt trends. as told to PTI.5 He only said, More Indians atomic number 18 travelling and animateness abroad, they provoke network overseas and are more aware of trends, Segler said.5 BMWs market observation as worded by Segler shows that at that place is a market for Mini in India, for those who wish to own an iconic car, which is identical to fashion and style the world over. equipment casualty BMW Mini is priced between Rs 24.9 lakh to Rs 31.99 lakh in India.The car is impor ted as a completely built unit, impertinent other BMW variants like 3 series, 5 series, X1 and X3 which are assembled domestically, thereof carrying a lavishly component of tax. However prices have been unplowed in comparison to the offerings of other competing brands like Volkswagen Beetle and Fiat 500 which ruin in the same category as much as possible. Since BMW is a lavishness car maker, the prices of the cars in its stable are actually high. Mini is no exception. The prices are not such to salutaryify the sale of the car to the masses but preferably to high income rich people influential Indian buyers who want to purchase the product majorly because of its iconic status and sentimental value given over to the brand over the decades, or merely as a status symbol. stead BMW sells its cars in India through 17 dealerships across 13 cities.7 However, BMW Mini is to be sold through exclusive showrooms. Mini first started selling here at eternity Cars, Mumbai on Linking R oad.The dealership received carbon booking within a week. later on showroom in Delhi was opened in June and has sold 50 units till now8. BMW subsequently objects to open exclusive showrooms for Mini in Hyderabad, Chandigarh and Bangalore. The company has strategically chosen the fiscal capital (Mumbai) and political capital (Delhi) of India for its initial sales of Mini. Mumbai is the hub of financial activities and take parttainment diligence in the country and therefore has a high density of millionaires in the city. laid-back income groups are attuned and aware of the external trends and style standards. Luxurious/status commodities are endlessly in demand among these group, justifying the launch of an foreignisticly perceived style icon like Mini, here first. Delhi is the home to political social organisation of India.The entire NCR (National Capital Region) region which includes planet cities like Gurgaon and Noida have seen a redoubted farm in corporate and transn ational disposals over the past decade and is rationally perceived as an IT hub of the country. With the advent of IT assiduity in the region and tremendous improvement in realty prices, the entire NCR has live on a home to a large number of high wealth groups. With enormous disposable incomes in the region, demand for highlife cars is on the ascent. The two urban cities of Delhi and Mumbai have seen extensive westernisation in the living standards of the residents, resulting into an equal demand. BMW therefore strategically chose the two cities as distribution centres for its Mini brand.Promotion When the company found out that Indians accounted for more Likes for Mini on a social networking mesh portal called Facebook, the company rushed to launch the product within the next hexad months. To promote a product that leave behind appeal to niche class of buyers, BMW has select an aggressive marketing technique to sell the Mini brand in India. support this, Dr. Andreas Sc haaf, President, BMW Group India, We are focused on a strong, surprising, daring and unexpected marketing strategy for the Indian market.9 Dummy models of the cars in its portfolio were placed on a lake crocked to New Delhi and on the rooftops of skyscrapers in crop to enhance the presence of Mini brand in India.9 This strategy was also part of its international daring marketing strategy, though domestically it was a new technique.To hike promote the Mini brand, the company plans to get a massive collaborate with several marketing agencies. The strain is put on the unique ideas the car can be promoted with. According to Bejamin Nagel, level of Mini India, the focus is on irregular and experimental marketing, as the Mini is not a mass product, but earlier a premium car. Therefore, the company has opted not to promote it through mass media. It is therefore safe to say that for promoting the Mini brand in India, BMW is focusing on BTL (below the line) ad methods to target spec ific group of niche buyers, instead of ATL (above the line) methods of mass advertisement.Indian elevator car and the MiniThe Indian motorcar market which we know of today, has developed from its miniscule form since the early 1950s to the giant and ontogeny manufacturing it is today. Before the reforms to liberalise the parsimony in the early 1990s, the cable car heavens was highly insulated from outside(prenominal) investments. Due to very high tariffs on imports and other measures, the troth of alien companies was extremely restricted. If we go back a bit further, 1950s see the arrival of TATA Motors, Bajaj Auto and Mahindra & Mahindra. This lead to a steady increase in fomite production in India. Subsequently, 1960s witnessed the establishment of two and three wheeler intentness in India. However, emplacement entry of Maruti Udyog in the 1980s, the industry witnessed tremendous developing. In 1983, Suzuki was permitted to enter a joint venture with Maruti by regim e, for some time and it became the only FDI histrion in the segment.10However, a decade later post liberalisation of the Indian economy, the governing body de-licensed passenger car manufacturing. up to nowtually, the industry sawing machine a colossal influx of foreign car makers into the country by way of FDI. Presently, automobile industry is one of the report ontogeny sectors in the country. Almost all(prenominal) major car maker in the world is present in India. Even after the economic meltdown post 2007, India is save one of the fastest growing economies in the world. This has transformed into huge rise in disposable income, resulting in compound demand for products at par with international standards. This and others factors like favourable demographics, supportive telephone circuit environment have attributed to the decisions of almost all the leading automobile companies in the world to set up and grow their communication channel in India by providing cars at pa r with the worldwide quality standards.However, according to a recent report carried out by Society of Indian Automobiles Manufacturers, the growth in domestic sales of cars over the April- dreadful 2012 bound was 6.61% which is a decline of 3.9% over August 2011, due to the on ongoing economic downturn and turbulences.11 But most industry analysts and car manufactures are optimistic around the future outlook of the industry which is still seeing considerable growth compared to automobile sector growth in other countries, and expect to witness better shuckma on the hopes of government reforms to boost boilers suit economic reading and GDP growth in the coming times. The recent decisions to render single brand and multi brand retail FDI in the country by the government has further strengthened the confidence of foreign investors towards the business policies in the country being favourable. Therefore, BMWs decision to bring the Mini brand to the select Indian auto buyers is fu rther vindicated by the of late analysis of the Indian automobile market done above.Like most of its other premium brands of cars, the company does not plan to sell the Mini brand to the masses, but rather to the niche and super rich segment of the Indian auto buyers which demands an international product for the premium price. The demand from this segment has been constantly rising over the past decade. As a result, other premium manufacturers like Audi, Mercedes-Benz, Volkswagen have been gradually introducing international brands of their car models in India. Like them, BMWs management perceived this as just the start of the Indian growth story. As a developing country, there is huge potential of growth in the automobile sector, compared to the developed nations where the markets have seemed to finish off to a saturation point. However, in the developing economies like India and China, the growth potential is huge and the development graph has still a long way to go upwards, ba cked by political will, before it can reach some sort of saturation.Some skill argue that BMWs decision to introduce Mini brand in India great power be precocious. However, considering the growth potential in the economy, it is only right that BMW would want to stem its roots as deeply as possible in the premium automobile segment of the country right from the start. By adding Mini brand to its portfolio of the internationally recognized products the company sells in India, BMW wants to further bolster its image and position in the market, emphasising its willingness and distressfulness to do a long abiding business in India, and providing wide range of premium cars acknowledging and fulfilling different styles, preferences and desires of the premium car buyers of India.References__________________________________________________________________ 1 http//www.hindustantimes.com/News-Feed/Auto/BMW-launches-Mini-brand-in-India-with-four-models/Article1- 791750.aspx 2 http//articles .economictimes.indiatimes.com/2010-07-19/ intelligence operation/27601128_1_cinquecento-fiat-beetle 3 Reed, Chris (1994). Complete Mini 35 Years Of Production History, imitate Changes, Performance Data. Croydon 4 http//online.wsj.com/article/SB10001424052970203513604577142310291706308.html 5 http//www.hindustantimes.com/News-Feed/Auto/BMW-launches-Mini-brand-in-India-with-four-models/Article1- 791750.aspx 6 http//www.bmw.in/in/en/newvehicles/3series/sedan/2011/showroom/index.html 7 http//www.cardekho.com/BMW/cardealers8 http//articles.economictimes.indiatimes.com/2012-06-08/news/32124207_1_bmw-india-india-president-andreas- schaaf- mini-cooper 9 http//www.cartrade.com/car-bike-news/bmw-to-adopt-aggressive-marketing-strat