Mini branding by twistandpulse

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BRAND DNA

Group Project

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In this paper we are going to understand the Brand DNA of MINI. We are going to follow through the overview of the brand, which includes its birth and expansion to The United States. After understanding the Brand DNA, we will be showing MINI’s brand manifesto based on our interpretation of the brand. At the end of our paper we are going to find out how MINI is currently doing and whether they should keep up with their existing brand strategy and, if necessary, how to perform better in the future.

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Framework Methodology To better understand the MINI brand in the USA, we used several approach described as follow: ● Data Mining ○ Desk research ● Brailing Culture ○ Social listening ○ Media observation ● Immersion ○ Customer Interview

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Big History of MINI MINI was born the UK, during post WWII dilemma where the people started to question if the large, gas-guzzling vehicles of the day made much sense in the era where gas price was roaring. Sir Leonard Lord of the Morris Company issued his top engineer, Alec Issigonis, a challenge: design and build a small, fuel-efficient car capable of carrying four adults, within economic reach of just about everyone. The two most important innovations Issigonis came up with were to create more room in the cockpit: pushing the wheels all the way out to the corners and turning the engine sideways giving the car more stability in tight turn and more passenger space on the inside. The world had never seen a car quite like it. And when the first Mini launched in 1959, the public was a bit baffled. Soon enough, people began to recognize that the Mini was not merely a car. The unique combination of classic British style in a low-cost, small size, fun and nimble package came to symbolize independence and spontaneity, or the very essence of the youthful 1960s culture. One of the most remarkable elements of the Classic Mini’s popularity was how its infectious spirit transcended traditional class barriers. From hipsters and mods to milkmen, rock stars and royalty to rally racers. Everyone could have efficiency, fun and freedom, motoring in a Mini. 1

Sources: http://www.miniusa.com/content/miniusa/en/why-mini/why-mini/over-50-years-of-motoring.html 1

It soon became apparent that, while intended to create more passenger room, Issigonis numerous layout innovations also helped make the Mini a standout performance car. Wheels at the corners meant a wide, go-kart stance and nimble handling. And the transverse engine kept weight over the front tires, helping provide great balance and grip. Before long, the nimble little Classic Mini was outracing and outlasting the larger, more powerful, but clumsier sedans of the day. Visits to the winner’s circle became a regular event as Mini chalked up numerous international race wins – including 3 at the prestigious Monte Carlo rally from 1964 to 1967. By 1969, over 2 million Mini had been sold around the world. Pickup and station wagon versions were introduced and all were incredibly durable – whether rallying or doing the daily errands. Owners knew they could depend on their Mini to get the job done. And inspire smiles the entire time. Fast forward to 1999. Over 5 million Classic Minis had found happy homes around the world leading a panel of 130 international automotive journalists to vote Mini “European Car of the Century.” In fact, only Ford’s Model T received more votes for the global title. Taking the 2003 North American Car of the Year Award, the general public and auto enthusiasts alike find the new MINI hard to resist. Invoking smiles and curiosity everywhere they go, new owners quickly discover just how much fun a MINI can be. Owners personalize their MINIs to their heart's’ content and form motoring clubs all across the country.

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2017 Product Lineup (USA Only)

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Growing Brand Product

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Overview Marketing Activities

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The latest MINI’s campaign is called #DEFYLABELS, where they talk about having zero care to people label MINI. This campaign have mixed results where some people perceived the ad as arrogant. As seen on the left2, this ad received relatively high number of dislike compared to other video about MINI that was uploaded to YouTube. People also express their feeling about the ad that was perceived as ignorant.

Source: MINI Ad on YouTube https://www.youtube.com/watch?v=WNtJoIyAReg

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Every two years MINI rallied from Atlanta to Palm Springs3. In total they visited 18 states over 4,397 miles and went Track-to-Track. In 2016, they added #DEFYHUNGER as their CSR where they were not only raised awareness, but money, food and over 1,000,000 meals for Feeding America. Below is the route of MINI takes the states:

Source: MINI Takes The States Official Website http://www.minitakesthestates.com/

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As we can see on their annual report, MINI is having a diversified sales after the birth of Clubman. While the “iconic” Hardtop face a steady sales, the Countryman’s sales is suffering as you can see below on their last year annual report4.

There’s a changing in car industry.5 One other thing to note is that younger millennials, while having lower resources, still aspire to get a car. Good news for MINI: they prefer they car to be small. BMW Annual Report 2016 How Millennials See Cars http://www.cnbc.com/2017/02/23/millennial-money-myths-the-truth-about-homes-cars-and-ownersh ip.html 4

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Competitive Landscape As mentioned earlier, Mini is in the category of city car where it competes with many other brands or car models such as Toyota prius, Volkswagen beetle, Fiat, Ford focus and fiesta, Chevy cruze, Mazda MX 5, Chevrolet's Spark etc. Among these competitors, our team will compare Mini to VW Beetle and Fiat 500 series based on the following reasons: 1. Size 2. Design 3. Price Volkswagen’s Beetle was born in 1938 in Germany under Adolf Hitler’s proposition of developing a “people’s car” that could transport two adults and three children. It is one of the oldest nameplates in automotive history still in use today. The first Beetle entered U.S market in January 1949. It is in the compact car category, having both convertible and hardtop models. They remain the classic two-door design as a small car. They are in the similar price range with MINI. Fiat is short for Fabbrica Italiana Automobili Torina. It is an automobile brand that originated from Italy in 1899.6 The birth of Fiat 500 was strongly associated with the macro environment after World War Two when most people were still depressed and lost spirit. Fiat 500 aimed to celebrate freedom and love through a form that represented self-expression. Fast forward

http://www.fiatusa.com/en/fiat-nation/fiat-history/

today, Fiat evolved its own values into a much more profounding level - life is full of small fun and it should be captured through individualism. Fiat was absent for almost three decades in the U.S. market due to this brand’s perceived quality issues and sales decline7 until 2011 it reentered U.S. after the brand acquire 20% of Chrysler’s stakes - an American automobile brand. This time, it brought models with modern yet simple designs, blending Italian heritage into the new look. Noticeably, Fiat and Chrysler Automobile were merged in 2014 and formed “Fiat Chrysler AutomobileS N.V.”8, making it the 7th largest auto maker in the world.

http://www.adweek.com/brand-marketing/how-olivier-fran-ois-fixing-fiat-its-return-america-153896 / 8 http://www.fiatusa.com/en/fiat-nation/fiat-history/ 7

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MINI’s Target Audience All MINI’s target audience, either core audience or growing audience, shares the same mindset: young at heart. MINI Core Target Audience The Affluent Trendsetters They are young and affluent, living in urban areas, aged between 20-34. They are experimental in outlook, enjoy trying new things and tend to be spontaneous and active. They like standing out in a crowd and driving a car that people notice. They have a keen sense of style and believe a car says a lot about them. They look for what’s cutting edge, and what’s fun and exciting. They wanted a sporty car in a compact, fun package. MINI fits their image and their attitude to life. Why? Because MINI’s touch points and products are largely focused on this segment. MINI’s main attributes: small, fuel-efficient, luxurious features, stylish, fun to drive. According to Mintel report, “millennials who are looking at small cars were significantly more likely to consider a mini compact/city car, such as the Chevrolet Spark, Mini Cooper, or Fiat 500.” “Those Millennials still able and willing to buy a compact car are looking for more luxurious features and styling and are more interested in compact and subcompact crossovers.”

“Millennial small vehicle intenders were twice as likely to want a foreign make brand when compared to Baby Boomers. Millennials are also looking for a small car that has a luxurious looking exterior and vehicles with leather upholstery.” “Millennials are the most likely to have compact cars and crossovers in their homes, with 50% of Millennials having one in their household. Millennials are far more likely to consider a compact car and/or crossover as their next vehicle, with 51% considering the purchase of a compact car in the next three years.” “ Millennials are crowding back into the cities; more than 2 million people aged 15-29 have moved back into urban centers from 2007-12, according to Forbes. The above-average density levels of urban areas and availability of more alternative methods for commuting correlates with a drop in car ownership among Millennials and with Millennials even getting their driver’s license, but those who continue to want a car will likely purchase a compact car and crossover.” “ Those that use public transit frequently are much more likely to think small cars look “cheap” compared to those who don’t use this form of transit. About a quarter of those using public transit, walking, or biking frequently want a small car with leather upholstery and one that looks upscale and luxurious on the outside.”9

Compact Cars and Crossovers - US - February 2014 http://academic.mintel.com.ezproxy.cul.columbia.edu/display/680608/?highlight 9

“When it comes to purchase price, Millennials are looking for affordability. This is no surprise given how cash-crunched they are. One-fourth of Millennials who plan to purchase a vehicle (new or used) within the next two years are looking to spend less than $20,000 on it, and another 23% are looking to spend between $20,000 and $29,999 (the average new-car transaction price is somewhat north of $30,000). This suggests that Millennials are looking at used cars and subcompact and compact new cars. These lower-priced vehicles would present value for cash-strapped Millennials and subcompact/compact vehicles are easy to park in the urban environments that Millennials favor. On the other hand, with 27% of Millennials willing to pay over $40K, not all Millennials are cash-strapped. Some may have higher-earning jobs, while some might be older Millennials who have been working and saving for a while and are now willing to spend more on a car.” “Given their cash-strapped financial situations and tendency to live in urban locations, millennials will likely be considering small, practical cars that offer safety and good fuel economy without being boring. As a result, today’s subcompact and compact car classes are popular, and there is an opportunity for subcompact and compact crossovers. Automakers that offer enticing products in this space are likely to capture the Millennial market.”10 “Mini-crossover vehicles are aimed at young, urban consumers, coined in Nissan’s terms as the “eco-Boomers.” Mini-crossover vehicles provide better fuel economy, provide a sporty look and feel, and can be easier to maneuver among crowded urban streets. At the same time, consumers can retain the elevated feel of driving an SUV that has become such a cornerstone of American driving over the past decade.” 11

Marketing Cars to Millennials And Gen X – June 2015 http://academic.mintel.com.ezproxy.cul.columbia.edu/display/716558/ 11 SUVs and Crossovers - US - April 2011 http://academic.mintel.com.ezproxy.cul.columbia.edu/display/543400/ 10

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MINI Growing Target Audience There are two growing target audience for MINI, both are The Young Parents MINI is also trying to speak to young parents now. They are fun, cool, adventure-seeking kind of parents. They live in the urban areas with their young kids. We believe this segment is a grow customer because: 1. This is clear in MINI’s recent model and advertising. The newest MINI model Countryman is a not so “mini” MINI. It is a subcompact crossover, featuring expanded leg and storage room in the back. On MINI’s official site, it uses a picture of young parents with kids to advertise, and says MINI has “adjustable seats and floor panels to accommodate the entire family's luggage.” In its 2017 brochure, MINI says “safety runs in the family” and highlights its safety features. 12 2. According to Mintel report, “compact crossovers are also versatile and capable family haulers, making this type of small vehicle more accommodating to those using their vehicles to cater to family and to do chores – compact crossover owners and intenders utilize their vehicles more for family and friends.”13 http://www.miniusa.com/content/miniusa/en/why-mini/why-mini/surprising-size.html Compact Cars and Crossovers - US - February 2014 http://academic.mintel.com.ezproxy.cul.columbia.edu/display/680608/?highlight 12

The Peter Pans They are aged over 39, affluent with a progressive worldview. They are more practical and experienced in life, but they have not lost their inner child. They are fun, energetic, young at heart. Cars like the MINI are likely to be an additional car, something for themselves, their teen children, or significant others. We believe this segment is a grow customer because: According to Mintel reports, Generation X and Baby Boomers are increasingly looking for small cars: ● “Generation X who are looking at small cars were significantly more likely to consider a mini compact/city car, such as the Chevrolet Spark, Mini Cooper, or Fiat 500.” ● “As Baby Boomers retire, move more closely to dense metropolitan areas, or realize an empty nest, smaller, more economical vehicles are starting to make sense for those now with fixed incomes or for those looking to downsize.” ● “44% of Baby Boomers own a small car in their household (the next most likely generation to own). 43% of Baby Boomers consider the purchase of a compact car in the next three years.”14 MINI’s consumer is more about a mindset of feeling young, fun, exciting. “It’s a certain mindset,” says Nathalie Bauers, spokeswoman for Mini USA. “People who relate to the brand, there’s no age to that.15

Compact Cars and Crossovers - US - February 2014 http://academic.mintel.com.ezproxy.cul.columbia.edu/display/680608/?highlight 15 https://www.forbes.com/2009/10/06/car-personality-wealth-lifestyle-vehicles-gender-income.html 14

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Fiat 500 Target Audience: According to Mintel’s report, the eco-friendly mindset as well as gas prices make more millennials seek compact yet spacious vehicles.16 Therefore, demographically, our team notice that Fiat’s consumers are both men and women, largely young and unmarried people aged 18 to 35 years old (Millennials) who live in urban areas. The reason why Fiat doesn’t consider older generation as their primary audience is that their needs and wants make it less easier for Fiat to enter into this segment. For example, a small-sized city car would conflict their lifestyles (See figure 1) which include factors like having more than two family members, special needs fro vehicle storage or frequent long journey on highway etc. Another report from Mintel17 (See figure 2) points out that in purchasing a mini compact or city car, 13% of men are more interested than 10% of women. Therefore, Fiat still primarily speaks to male consumers in its media campaigns. (See figure 3 ) Very much like Mini’s target audience, Fiat wants to target people who desire for uniqueness and styles. However, what really differentiate them from Mini consumers are the ulterior motive of being unique. From social listening and customer interviews, we found out that this segment still yearn for a sense of attention and they feel good about themselves when getting noticed. However, they seem to be more budget conscious when considering to buy a city car. Reasons are they are millennials who might be still in college debts or living in urban areas Mintel report: Luxury cars -US November 2013, Trend applications Mintel Report: Compact cars and crossovers US February 2014

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where rental are expensive or public commute system is well developed (Mintel Report). Among Mini, VW Beetle and Fiat, Fiat offers an very affordable and competitive price, to those who aspire to be trendy yet not planning to spend a large amount of money, Fiat would be the best option. Therefore, we define Fiat’s target audience as on-budget trend followers who wish to be inspired.

Figure 1 Reasons why you don’t purchase a compact or crossover, November 2013, Mintel Report

Figure 2 What type of small cars or crossovers are you interested in buying, Mintel Report

Figure 2 VW Beetle Target Audience The Low-key Life Stylists Demographically, they are young professional men and women from 18-35. They have high education and middle-level income. Some of them are single and some of them live in small family of two or three with their little kid. Geographically, they live in urban areas. On weekends, they may take their children to the parks, zoos and museums in the city or drive for one or two hours to visit a little town. Psychologically, they are confident, passionate towards life. They are fashion-conscious and seek uniqueness. However, they do not pursue luxury and even do not like to show off. As to characteristics, they are approachable and easy-going. Behaviorally, they normally do not speed on highway. They like listening to music while driving. At home, they love watching TV series and love movies. They are relaxing in their leisure life. Compared with MINI’s people, they are same in chasing individualism. What is different between these two groups is that Volkswagen Beetle’s people are relatively in low key and do not want to show off luxurious life where else MINI’s people want the world to know they are different and unique. As the graph for people’s reason for considering the type of the car, they make emphasize on the alliance with lifestyle. Beetle’s designing represents a kind of lifestyle. Its rounded shape makes it soft instead of sharp or aggressive. They have adorable and stylish classic design,

which makes it and its people unique. Concluding from this, Beetle is a car for people who are not aggressive, in other words, approachable. In the same time they need the difference.

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Strategic Benefits: MINI Our team defined MINI’s attributes through a thorough look at its official website.18 The benefits were identified through sounding thinking, logical reasoning, and social listening.

http://www.miniusa.com/content/miniusa/en.html

See appendix-MINI social listening for more examples. Compared to competitors, MINI wins in its sporty experience and huge customization options. We think this winning zone gives MINI’s consumers a feeling of exciting and unique. Even though all three brands’ target audiences pursue individuality to some extent, what the three brands offer to them are different. MINI’s target audiences are trendsetters, who don’t need the car to empower or inspire them. To them, they only need MINI to show off their individuality. Such an eye-catching, stylish, and unique car amplifies their personality and lifestyle. MINI makes them feel individualistic and excited. This is the main strategic benefit.

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Strategic Benefits: Fiat 500 In order to conclude Fiat’s strategic benefits, our team also did thorough social media as well as desk research to determine its features, attributes and what emotional benefits did they elicit for consumers. Then we compared it to other two brands and built up the benefit ladder as shown below:

Fiat Attributes and Benefits

In the light of above evidence and insights, we reached a conclusion that Fiat’s strategic benefit is “I want to follow trends so that I can be unique, and I feel empowered by Fiat”

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Strategic Benefits: VW Beetle

We defined Beetle’s attributes through a thorough look at its official website. 19

www.vw.com/Beetle

The benefits were identified through sounding thinking, logical reasoning, and social listening.

Firstly, it’s Beetle; it’s under Volkswagen; it’s all German engineering. The sense of made-in-German guarantees the high quality of the vehicle, which makes the consumers feel reliable. Secondly, the trustworthy technologies such as park pilot, rear traffic alert, blind spot monitor make it easy to drive and help guarantee safety. Through these mandatory technologies, consumers will feel safe while driving. Thirdly, its small size, adorable classic design makes it eye-catching and deliver visual pleasure. Driving this lovely vehicle makes the consumers feel cheerful and enjoyable. Last but not least, they offer choices of light colors that meet various preference of consumers. In addition to its small size, they feel distinguished.

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Based on our brand main benefits and competitive landscape analysis, we have come up with this four-zone chart for Mini. Among these three brands, Mini really emphasis on its sporty equity as well as its highly-customized options for consumers. It’s true that Fiat and Beetle are also trying to use this gimmick to capture attention, their efforts still cannot compete with what Mini offers to its consumers. Mini, Being sporty, this perception is already entrenched in consumers’ mind. Therefore, we think agility, sporty experience and customization should fall into the winning zone. All three brands share a few features in common, like stylish design, similar size, different model options to meet consumers’ needs and even their after sales service like warranty is about the same. So all of these features should fall into Mini’s risky zone where consumers can easily find other substitute brands. For the dumb zone, our team think that lifestyle accessories and entertainment system might not be something consumers desire for when they are buying cars. Especially like mini, it’s trying to stretch into a lifestyle brand that sells apparel and accessories. Also for the high tech entertainment system, it's not something like safety, performance, value that consumers are considering the most when buying a car. Mini is perceived as an expensive city car in consumers mind which might deter many people from buying it. With its competitors selling below 200K, Mini’s price would lead it to this risky zone.

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Each of the brand’s main benefit comparison

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Brand Positioning: MINI We looked at MINI’s official website, social media, and advertising to get to know-- What MINI believes in: “The MINI brand wins hearts and turns heads. MINI is refreshingly different: extroverted, spontaneous and in every respect something out of the ordinary.”20 What MINI does: producing city cars that fit and express the drivers’ individuality and attitude toward life. How MINI does it: By making MINI cars sporty, stylish, fun to drive, and unique. Where MINI goes: “The MINI has inspired strong emotions for more than 50 years. We are developing visions to allow the brand to continue to do so in the future.” Lifestyle brand--“A MINI is not just a car; it’s part of people’s way of life, too.” Premiumness and sportiness--“We kept all the classic MINI features in our concept – but made its sportiness and premium quality more visible.”21 Accordingly, MINI’s positioning statement is: Mission Statement, Headquarters & Founders Facts About BMW Group Auto Makes: 2011 https://www.thebalance.com/auto-industry-mission-statements-4068550 21 http://annual-report2013.bmwgroup.com/reports/bmwgroup/annual/2013/gb/English/4030/mini-visio n.html 20

To affluent millennials who are individualistic, active, and adventurous, Mini is the only brand of city cars, That offers them a sporty and highly customizable car in a stylish, fun, compact package, So they can show off their individuality and exciting lifestyle.

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Brand Positioning: Fiat 500 In order to get a better sense of how FIAT wants to position itself and how its consumers perceive the brand, our team again relied on FIAT’s previous campaigns, consumers’ feedback and survey to justify whether its current positioning aligns with consumers’ perception. The conclusion is that there is a gap in between. Though FIAT’s audience want to be inspired to be trendy and feel unique, price is the driven factor why they purchase the brand. Therefore, we think the positioning in the following will resonate with its target audience: To price-conscious millennials who aspire to be trendy, Fiat 500 series is the only type of city cars That offers them affordable yet stylish cars with iconic Italian design So they can feel unique and inspired to enjoy a peppy and fun driving experience.

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Brand Positioning: VW Beetle Beetle is under the brand Volkswagen, which means “for people” in German. Born from this mother brand, Beetle is not designed to go far away from the main value. It’s more about people and life. For the low-key stylists, their desire in life is not into drama. They want the basic but mandatory element: joy. Therefore, we land on Beetle’s positioning as: To low-key life stylists who are unique but approachable, Volkswagen Beetle is the only type of city cars that offers them adorable, iconic German design, so they can enjoy the leisure in life and feel cheerful.

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Brand Manifesto Video for Mini (see link below): https://www.youtube.com/watch?v=kXf0yAyQQsM&feature=em-share_video_user

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We imbued Mini’s unique personality - confidence, fun, excitement, thrill, innovation, sporty quality and individualism into its manifesto.

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There is distinct brand awareness among different groups of audience. For the core target audience and fans of MINI, there is definitely high awareness among them. For people out of the core circle, they do not understand MINI pretty well. Some of them even thinks MINI Cooper equals to the entire MINI product lines.

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Moving up to the pyramid, on the performance side we see that highly personalized, with strong engine as MINI’s main performance. Which translates as fun, stylish and eye-catching image in the eye of the audience.

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Up next, the good performance of MINI can be laddered up to put MINI as an agile and fun car to ride. And this judgement delivers feeling of adventurous and excitement in the eye of consumers.

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All their equity falls down to this: MINI is a car that translates your personality. It helps you tell people how you see yourself.

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Mini’s brand equity Let’s pack MINI’s brand equity into prism. MINI is known for its classic British design, small and colorful body. If MINI is a person, he/she is confident, outgoing, cool by nature. They go on adventures and have fun. Culturally, it inherit the British heritage and develop the racing culture. We interviewed 20 MINI owners and observed virtually through MINI’s forum, we find that for MINI drivers, or let’s say, MINI pursuers, they perceive themselves as stylish and lead the trend. They are fearless and independent. They are energetic and agile. It also reflects the way that the brand defines its target audience: young trendsetters. Moreover, they have a relatively higher income. They are never ordinary, instead, they have their individuality. MINI communicates with them well. It inspires people to feel young, and to lead a fun, exciting, and free lifestyle. Yes, they like MINI since MINI reflects their individuality.

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Fiat Brand Equity Brand awareness: Undeniably, brand awareness is closely linked with consumers’ familiarity toward this brand and how they perceive its quality. Today, both factors are impacted by the brand’s marketing approach as well as word of mouth. From a evaluation report done by ALG (See figure 1), FIAT was more known to survey respondents while receiving a poor quality perception. Three insights are generated from this result: 1. In fact, FIAT reentered in the U.S. in 2011 with an effort of large spending on advertising and other marketing efforts22 - spending 3 millions to create showrooms at dealership. 2. Consumers’ perception about its quality was probably remained as the same as FIAT was kicked out from U.S. market in the 1980s due to its constantly rising quality issues. FIAT, was even taunted as “Fix it again, Tony” to show how its quality did not live up to consumers’ expectation. 3. In most cases, low price offering would not be associated with premium quality. Attributes and association: FIAT’s attributes are elaborated from mainly four aspects: interior and exterior design, performance, safety and security. Its Italian iconic design is seen as cool, stylish and unique. FIAT’s owners feel fun and different when driving it. Its agility from spry handling make it easy to maneuver around the city. Youth, urban life, fun, low cost and ecofriendly are frequently associated with FIAT. 22

https://hbr.org/2012/02/fiats-smart-us-launch-strategy-really

Perceived quality: according to ALG perceived quality score (see figure 2 ), consumer perception toward Mini’s quality was ranked top 10 in 2012 among all mainstream brands which also included other car categories. However, perceived quality of FIAT was quite low - only received 44.5 score, much lower than the mainstream average 59.1 (See figure 3). This could be explained by the fact that FIAT just reentered the U.S. market again in 2011. Looking at the change in perceived quality score, our team noticed that FIAT was considered more favorable since its score increased next year. (See figure 3)

Figure 1 Perception of Quality, ALP report 2012

Figure 2

Figure 3 https://www.autonews.com/assets/PDF/CA79774530.PDF ALG

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Beetle’s brand equity Like the name itself, Beetle turns alive with its small, adorable design. Its German engineering gives the brand credibility. When the brand appears, you can see they remain the individuality, however, in an approachable way. They are cheerful, delightful, and are chic as well. Historically, it originates from German’s classic and inspire German’s spirit at that time. It’s not hard to find the classic model in old movies. For Beetle drives, we can simply say that they are nice. Just like the uncle in the picture, they keep the big smile and are amiable. They still see themselves as stylish. However, their unique style is not for showing off. It’s just for their own chilling life. Reflecting on target audience, they are young city dwellers. They are low-key life stylist. From the relationship, more likely, it’s about the lovely atmosphere with the car and the owner’s life. They want to cuddle the car as well as embrace life with their beloved ones.

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Brand Equity elements In order to delve into each brand’s DNA, our team compared their brand equities and came up with words that describe their brand personalities. Though some of them are in common, there is still something unique about each brand. For MINI, it’s more sporty, adventurous, individualistic, and brings out the excitement. We could say they hold the trend and want the world here. For FIAT, it’s more about simplicity and inspiration. They are expecting to follow the trend. For Beetle, it’s adorable, approachable, and cheerful. They hold the trend and chill themselves.

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Brand DNA: MINI Compared to main competitors VW Beetle and Fiat 500 series, we can see MINI’s key DNA elements are individuality and excitement. Just as the CEO of BMW of North America, Ludwig Willisch said: "the unique selling proposition that Mini stands for -- the agility, versatility and fun to drive -- that excitement has not been able to translate to other brands." 23 Brand DNA: FIAT Two main elements that are in FIAT’s brand DNA are unique, separating itself from Mini and Beetle - simplicity and inspiration. Simplicity here refers to FIAT’s definition of beauty. Beauty doesn’t have to be sexy or cute all the time, it can be simple beauty. Just like little things in life, FIAT wants to make people feel inspired to discover them, so that they could also find confidence and surprise from the experience. Brand DNA: VW Beetle Beetle and MINI, they have several similarities. They are both small. They both have European heritage. They both have iconic design that make them stand out. However, they are iconic in different way. Beetle are adorable, approachable. They are closer to people. For many people, their fundamental emotional demands is happiness. Beetle roots its DNA in embracing happiness in life.

http://www.autonews.com/article/20130520/RETAIL03/305209963/goofy-ads-variants-help-mini-rule-it s-own-little-world

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MINI is a brand that has a strong voice. Throughout the year, MINI had managed to communicate their brand DNA really well. It is understandable that the car industry is changing and MINI is trying to answer that. Countryman was one of their strategy. Unfortunately, Countryman is not mini. It is huge and more functional rather than individuality. There are two options moving forward: ● Discontinue Countryman; which is a huge cost. ● Communicate more about individuality, rather than looking at its functionality, to inject MINI’s true brand DNA.

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Sources: Wood, C. (2011, February 10). MINI Cooper's Number One Competitor Will Surprise You AutoGuide.com News. Retrieved April 15, 2017, from http://www.autoguide.com/auto-news/2011/02/mini-coopers-number-one-competitor-will-s urprise-you.html Rosenbaum, E. (2017, February 24). Millennials are buying homes more than people think, and plan to keep on doing it. Retrieved April 15, 2017, from http://www.cnbc.com/2017/02/23/millennial-money-myths-the-truth-about-homes-cars-and -ownership.html 2014 MINI Cooper vs. Its Competition. (n.d.). Retrieved April 15, 2017, from http://www.thecarconnection.com/compare/mini_cooper-hardtop_2014_choices 50 Years of Motoring. (n.d.). Retrieved April 15, 2017, from http://www.miniusa.com/content/miniusa/en/why-mini/why-mini/over-50-years-of-motorin g.html Bird, C. (2014, February). Compact Cars and Crossovers-US. Retrieved April 15, 2017. Healey, T. (2015, June). Marketing Cars to Millennials And Gen X. Retrieved April 15, 2017. Patterson, B. (2011, April). SUVs and Crossovers. Retrieved April 15, 2017. Farfan, B. (n.d.). Mission Statements of Auto Manufacturers. Retrieved April 17, 2017, from https://www.thebalance.com/auto-industry-mission-statements-4068550 Bayerische Motoren Werke AG, 80788 München. (n.d.). MINI Vision. Retrieved April 17, 2017, from http://annual-report2013.bmwgroup.com/reports/bmwgroup/annual/2013/gb/English/4030/mi ni-vision.html

HighGearMedia.com, V. V. (2013, July 26). 2014 MINI Cooper Previewed By New Vision Concept. Retrieved April 144, 2017, from http://www.washingtonpost.com/cars/2014-mini-cooper-previewed-by-new-vision-concept/ 2013/07/26/5d0ebd9c-f5bf-11e2-81fa-8e83b3864c36_story.html?utm_term=.1c1f69780778 2013 Car Brand perception survey. (n.d.). Retrieved April 8, 2017, from http://www.consumerreports.org/cro/2013/02/2013-car-brand-perception-survey/index.htm Callaway, S. (2015, July 20). Fiat Chrysler Tops 2015 Total Quality Ranking. Retrieved April 12, 2017, from http://fortune.com/2015/07/20/fiat-chrysler-best-new-cars/

Callaway, S. (2015, July 20). Fiat Chrysler Tops 2015 Total Quality Ranking. Retrieved April 13, 2017, from http://fortune.com/2015/07/20/fiat-chrysler-best-new-cars/ Linkhorn, T. (2017, February 22). Jeep again ranks low on J.D. Power's reliability survey. Retrieved April 15, 2017, from http://www.toledoblade.com/Automotive/2017/02/23/Jeep-again-ranks-low-on-JD-Power-reli ability-survey.html ALG, Spring 2012 Perceived quality survey - Mainstream & Luxury models. Retrieved from https://www.autonews.com/assets/PDF/CA79774530.PDF Monticello, M. (n.d.). Car Brands Ranked by Owner Satisfaction. Retrieved April 14, 2017, from http://www.consumerreports.org/car-reliability-owner-satisfaction/car-brands-ranked-by-s atisfaction/ Walsworth, J. (n.d.). Buick becomes first U.S. brand to crack top 3 reliability rankings by Consumer Reports. Retrieved April 10, 2017, from http://www.autonews.com/article/20161024/RETAIL/161029945/buick-becomes-first-u.s.-bran d-to-crack-top-3-reliability-rankings-by Case Study: Fiat Eco: Drive, Sebastian Kemmler. Warc. Retrieved from https://www-warc-com.ezproxy.cul.columbia.edu/SubscriberContent/Article/Fiat_ecoDrive/9 4854 Fiat's Soave On U.S. Entry Of The Fiat 500. (n.d.). Retrieved April 20, 2017, from https://www.mediapost.com/publications/article/145260/fiats-soave-on-us-entry-of-the-fiat500.html?edition= Kurylko, D. T. (n.d.). Goofy ads, variants help Mini rule its own little world. Retrieved April 20, 2017, from http://www.autonews.com/article/20130520/RETAIL03/305209963/goofy-ads-variants-help-mi ni-rule-its-own-little-world Lutz, H. (n.d.). Mini is pushing its brand awareness in new ways. Retrieved April 21, 2017, from http://www.autonews.com/article/20160411/RETAIL06/304119974/mini-is-pushing-its-brand-a wareness-in-new-ways The Bug’s life: The history of VolksWagen Beetle(n.d.). Retrieved April 21, 2017, from http://www.caranddriver.com/flipbook/the-bugs-life-a-history-of-the-volkswagen-beetle Hirsch, J. (2014, January 31). First Volkswagen Beetle arrived in a U.S. showroom 65 years ago. Retrieved April 21, 2017, from http://articles.latimes.com/2014/jan/31/autos/la-fi-hy-volkswagen-beetle-65-years-20140130

Appendix

Figure 1

Figure 2

Figure 3

Figure 4

Figure 5

Figure 6

Figure 7 Figure 1-7 are from Auto Brand Perceptions 2014: National Consumer Assessment (National Research Center)

Figure 8 2013 Car Brand Perception Survey conducted by the Consumer Reports National Research Center (Top and bottom 10 brands) Rank

Brand

Woul d Buy Again

Tesla

91%

Porsche

84%

Audi

77%

Subaru

76%

Toyota

76%

Honda

75%

Mazda

74%

Chrysler

73%

Chevrolet

73%

Lexus

73%

GMC

73%

Lincoln

73%

Hyundai

73%

BMW

72%

Ford

72%

Mini

71%

Ram

70%

Kia

70%

Mercedes-Benz

69%

Volvo

69%

Buick

68%

Cadillac

68%

Dodge

66%

Volkswagen

64%

Jeep

60%

Acura

58%

Infiniti

58%

Nissan

58%

Fiat

53%

Figure 9 The car owner satisfaction ranking 2016 http://www.consumerreports.org/car-reliability-owner-satisfaction/car-brands-ranked-by-s atisfaction/ 2016 Rank

Rank change from last year