Mini Cooper

Delivering Customer Value Through Marketing Case Study December 2011 and March 2012

Professional Diploma in Marketing (Level 6)

© The Chartered Institute of Marketing 2011

541 – Delivering Customer Value Through Marketing

Case Study

December 2011 and March 2012

MINI


Delivering Customer Value through Marketing – Case Study

Important guidance notes for candidates regarding the pre-prepared analysis

The examination is designed to assess knowledge and understanding of the Delivering Customer Value through Marketing syllabus, in the context of the relevant case study. The examiners will be marking candidates’ scripts on the basis of the questions set. Candidates are advised to pay particular attention to the mark allocation on the examination paper and plan their time accordingly.

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As part of the preparation for the examination, candidates will need to carry out a detailed analysis of the case material ahead of the examination. Candidates will find that the time available during the examination is sufficient to answer the compulsory questions, but only if detailed analysis has been undertaken beforehand. When compiling their analysis, candidates should only use the information found within the case, supported by their knowledge and understanding of the syllabus.

Candidates are encouraged to use a range of analytical tools and models in order to undertake a thorough investigation of the key aspects of the case. This will improve their understanding of the case and the issues faced by the organisation(s) and/or industry sectors to which it relates. Clearly, the analysis required will vary depending on the specific case content but, as a guide, candidates should consider undertaking the following:

analysis of the external environment using PESTEL analysis analysis of the competitive environment using Porter’s Five Forces model strategic review using Ansoff’s matrix and/or Porter’s generic strategies stakeholder analysis detailed review/analysis of each of the marketing mix elements product/portfolio analysis (eg using product life cycle analysis, BCG (Boston Consulting

Group) matrix, GE (General Electric) matrix) SERVQUAL SWOT analysis.

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Professional Diploma in Marketing

Candidates must hole-punch and staple their analysis in the top left hand corner. They should have written their CIM membership number and examination centre name on the top of the right hand corner of each page of the analysis. It should then be attached to the answer booklet on completion of their examination, using the treasury tag provided. Although no marks are awarded for the analysis itself, candidates will be awarded marks for how the analysis is used to answer the questions set. Candidates are advised not to repeat or copy the analysis summary when answering the exam questions. It is important that candidates refer the examiner to the analysis summary, where and when appropriate, when answering the questions. Candidates are only permitted to take their analysis into the examination room. Candidates are not permitted to take in the downloaded case study or any other notes. The invigilator will issue candidates with a new clean copy of the case study at the start of the examination along with the question paper. Candidates may not attach any other additional information in any format to their answer book. Any attempt to introduce such additional material will result in the candidate’s paper being declared null and void. The Chartered Institute of Marketing reserves the right not to mark any submission that does not comply with these guidelines.

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DELIVERING CUSTOMER VALUE THROUGH MARKETING

CASE STUDY Preparation In preparation for the examination you will need to analyse the case material provided. You will be given a clean copy of the case study on the day of the examination, but you must bring your analysis with you into the examination. Your written analysis must not exceed FOUR A4 sides and must include your CIM membership number on each page. The written analysis must be submitted as an appendix on completion of the examination and attached with a treasury tag to your answer book. Role You are a marketing consultant with experience in the motor industry. You have been asked by the Marketing Manager of MINI UK, to advise on a number of marketing related issues, including: brand management; marketing communications to support new product launches and to increase

awareness of the brand and its values; marketing activities in relation to sustainability and corporate social responsibility; the consumer car purchase process; customer service; and the role of MINI’s dealerships.


Case Study: MINI Introduction The automotive industry is truly a global industry, with manufacturers, intermediaries and customers in all continents. The worldwide industry produced 48 million cars in 2009. When these car production figures are combined with those of vans, trucks and buses, the industry turnover is approximately €2 trillion, making it equivalent to the sixth largest economy in the world.1 The car industry is divided into categories based on the size of the cars. Cars in the smaller size categories are generally the best sellers. Cars smaller than the median account for 67% of total sales (Society of Motor Manufacturers and Traders). In 2009, there were 1.99 million cars registered in the UK, according to the Society of Motor Manufacturers and Traders (SMMT), which was a reduction of 6.4% on 2008, mainly due to the economic climate. The industry body reported that in 2010 total sales grew by 1.8% compared with the previous year. Registrations of new vehicles rose by 35,847 units to 2,030,846 in 2010. However, this was the second lowest volume of car sales in the past decade and almost 375,000 below 2007 levels. Private car sales fell by 5.6% over 2009, although business demand was more resilient, with fleet sales increasing by 10.3%. A hoped-for surge in December sales to beat the rise in VAT failed to materialise. In January 2011, SMMT predicted that sales of new cars would fall by 5%. SMMT’s Chief Executive, Paul Everitt, said 2010 had been a “year of recovery for the motor industry” but that conditions would be “extremely challenging” in 2011. He added, “we are in a difficult period in terms of public expenditure, concerns about job losses and tax increases.” MINI Against this turbulent backdrop in the car market, May 2009 saw the 50th birthday of the launch of the original Mini. In excess of 25,000 dedicated fans, from over 40 countries, converged at the Silverstone race track not far from the Oxford car manufacturing plant where the MINI is produced, to share in the celebrations. Despite its purchase by the German car manufacturer BMW, the MINI, a premium small car, is seen as an icon of British modernity. History of the Mini The ‘Mini’ was born in 1959. Its name reflected the design of the car – a small and economical four-seater vehicle. This ‘mini car’ was a new design and category of vehicle and was introduced in response to the Suez Crisis, during which the availability of petrol was severely restricted. Sales of the Mini were slow to take off. It was a very different type of car from those available at the time, and it was regarded by many people as being too small to be taken seriously. However, sales increased in the 1960s, when the Mini was seen to be driven by many celebrities, including the 1960s pop group the Beatles. This changed the image of the Mini to a classless car driven by people who could easily afford more expensive and luxurious cars. People chose to buy a Mini because of the convenience it offered, especially in a city environment. The Mini also became a major motorsport success in the 1960s. It superseded the larger, more powerful opposition in both racing and rallying. The motorsport success was built on a

1 The International Organisation of Motor Vehicle Manufacturers, www.oica.net


sub-brand of the Mini name – Mini Cooper. ‘Cooper’ refers to the very successful Formula One racing car constructor, John Cooper, who successfully made a proposal to the manufacturers of the Mini to develop higher performance models of the car. The Mini Cooper won in many categories and gained large amounts of publicity in consequence. Cars and drivers appeared on UK television programmes that did not normally cover cars or motorsport, mainly because of the international success that was being achieved. In 1969, the Mini Cooper was the major star in the film ‘The Italian Job’. The film is particularly remembered for the performance of these cars. The manufacturers of the car at that time gave no financial contribution to the film and sold, rather than gave, the numerous cars used in the film to the film production company, despite the massive amount of publicity that would be gained from their appearance in the film. Even at that time, other manufacturers realised the benefit of providing cars for films either at subsidised prices or even for free. The Alfa Romeo models seen in ‘The Italian Job’ were provided free of charge. Mini Lifecycle The original version of the Mini continued in production until October 2000. This is a very long production life for any model of car, as the typical lifetime is around six years. The Mini was a pioneer of the limited edition that is now common in the car industry; these models are introduced to increase demand in the later stages of the life of a car. They were first used on a special edition of the Mini released to celebrate 20 years of production. Typically, the limited edition models had a higher specification of interior materials and equipment, and some had higher levels of performance. A replacement car was developed for the Mini, called the Metro, which was launched in 1980. Although the Metro was successful, continued demand for the Mini meant that it went on to outlive the Metro, which was dropped in 1997 after various revisions and updates. BMW One of the most important changes for the original Mini took place in 1996 as a result of the 1994 purchase of Rover – the producer of the Mini at that time – by the German car manufacturer BMW. The Mini had rarely been a profitable model throughout its production life, because the cost of manufacturing small cars is almost as high as that for large cars, but prices are much lower. BMW reviewed the Mini and increased the specification and price to guarantee its profitability through the final years of its production, whilst a new model was being developed as a replacement. A branding success – the BMW MINI In 2001, the Mini was reborn as the MINI, to differentiate the new version from the original car. BMW had sold off most parts of the organisation it acquired when it bought Rover. However, it retained the MINI brand and used it on the repositioned product. The MINI brand gave BMW a route into a market it did not serve with the BMW range of cars – the ‘Supermini’ category. These cars are smaller and have a lower price than the traditional BMW range. Using the MINI brand for an entry to this category minimised any risk that could be inherent with moving the BMW brand downmarket to the category, but enabled the MINI to be sold within the BMW corporate brand to enhance the image of the car. The new MINI of 2001 was designed and built to take advantage of the heritage of the Mini. It was entirely new in every respect compared with the original design, much larger, but visually representative of the original and it maintained many of the elements that had made the original car iconic.


Jochen Goller, Director of MINI UK, said that “the new MINI was introduced as a technical evolution and a branding revolution”. The intention was to change the way the brand was perceived, especially in the UK market where the majority of the production of the original Mini was sold. MINI UK wanted to challenge the established brand values and preconceptions about the car, such as it being a small car, with basic features and traditionally associated with the colour of racing green. The shift was to emphasise the emotional attachment that owners have with their MINI. The new MINI rapidly became a great sales success. BMW had to extend working hours in the factory, adding extra shifts until the factory was working at maximum capacity. This was a long way ahead of the original expectations at the time that the car was launched. In addition, the car was a worldwide success, with sales in many countries including the USA, which had traditionally been a market for large cars. Within the BMW Group, MINI is seen as an entirely separate brand from the BMW brand. The identity of the brand is very different, being predominantly black for MINI, so representing a creative/cool colour which is post-modern and emotional. BMW, in contrast, uses largely white colouring for the brand. The new MINI marketing mix Product The new MINI initially consisted of one basic model design but buyers could choose from multiple options of specification based on three levels of engine performance. With all the different options for colour scheme, interior specification and exterior accessories, a buyer could order a car of their own specification from over 250,000 permutations. There are five basic styles of the MINI: the core model known as the MINI Hatch an open-topped version, the MINI Convertible an estate version, the MINI Clubman the latest version, the MINI Coupé the larger version, the MINI Countryman. Each model is available in different specification levels: One Cooper Cooper S. The power and equipment depend on the level, with the Cooper S having the most power and best levels of equipment. Petrol engine versions of the MINI all have 1.6 litre engines. Diesel engines are also available in either 1.6 or 2.0 litre variants. Although competitors are able to offer a greater variety of engine sizes and specifications, few competitors have the ability to create such a customised specification as the MINI provides. This is one of the appeals of the car – a customer ordering a new MINI can have it made just the way they would like it. After the initial success of the new MINI, the product range extended to include a diesel engine in 2003, a new body variant in 2004 and an open-top convertible version that commanded a price premium over the closed version. The convertible was available with the whole range of options of the standard car. This further increased the choice open to customers.


The new MINI was replaced with a revised version introduced in 2007. This matched the product life of other car ranges far more closely than had been the case with the 41-year life of the original Mini. Again, the revised MINI of 2007 maintained the visual appearance of both the original and 2001 MINI, together with other attributes of the brand. To benefit even more from the appeal of the MINI brand, the product range of the MINI has been further extended. Initially, the extended range came from the MINI Clubman, a larger car with a single rear door for easier access to the rear seats, with more space in the rear and an estate-style body for greater luggage space. Prior to the arrival of the new MINI Clubman, visitors to the MINI website were invited to view a film that mysteriously described ‘the other MINI’. Although they were unable to preview the MINI Clubman, they were given the chance to book an early test drive, once they registered their interest. The Clubman name was originally used on a variant of the original Mini that had a redesigned front end. The use of names from the original Mini continued with the introduction of the MINI Countryman in 2010. The Countryman is a small Sports Utility Vehicle (SUV) style car to match the lifestyle aspirations of car buyers, and whilst small for an SUV, it is the largest MINI yet produced. It caters for those who want a MINI but need more space. In September 2011, a Coupé version of the MINI was introduced, a two-seater, more sporty version of the hatchback, available only as a Cooper or Cooper S. BMW has planned future developments of the MINI. Both the coupé and roadster variants of the standard car were unveiled during 2009, indicating that a roadster is likely to be introduced. Trials have been running for an electric version of the MINI (the MINI E) with a variety of people, including members of the public, using the electric MINI and providing feedback to BMW on this important development for the future of cars in general. At the Geneva Motor Show in 2011, MINI showed a new concept – the MINI Rocketman – which is smaller than the existing MINI models, closer in overall length to the original Mini. Price Building upon the changes BMW introduced in 1996 with the original Mini, the new MINI was introduced as a premium-priced product for its size, reflecting its specification and the association with the premium BMW brand. The MINI range is priced from £11,810 to £27,255 (excluding the Clubman and Countryman), which compares with a range from £10,865 to £17,465 for the Fiat 500, the closest rival to the concept of the MINI. Other rivals include the Citroen DS3, which ranges from £12,100 to £23,100 and the Audi A1, from £13,420 to £21,800. In comparison, a car sold less as a premium product, the Ford Fiesta, ranges from £9,995 to £15,745. Place and Physical Evidence Following the successful introduction of the new MINI, BMW dealerships built special MINI showrooms within their main showrooms to offer a slight separation of the brand, whilst maintaining the linkage between MINI and BMW. This location reflected the standard of customer service offered with the car – a premium service for a car in the ‘supermini’ category of a level usually only provided by luxury brands. The franchise for MINI is separate from that for BMW, but at present all MINI dealerships are BMW franchisees.


Franchise agreements are time limited, typically for two to five years, although many dealerships have held franchises for longer periods, with the agreements being renewed. MINI is now sold through 147 dealerships in the UK. All bar one of the dealerships are run independently from BMW/MINI under a franchise-type agreement, the one exception being MINI Park Lane in London, which is owned by BMW. All dealerships have a similar appearance, colour scheme and layout, conforming to standards set out by MINI. These standards cover the internal height of the showroom, the type of lighting used, the style of floor tiles and other elements of physical evidence, ensuring a degree of uniformity across different franchises. The majority of franchises use new buildings constructed specifically for selling MINIs. The buildings are all owned independently, with no ownership by BMW/MINI. In addition to the usual considerations of customer comfort, the showrooms are designed with sustainability in mind. BMW Group has been named the most sustainable automotive company in the Dow Jones Sustainability Index 2011, and the company is now encouraging its franchisees to meet these standards too. MINI dealerships keep a small stock of new cars, which they own themselves, and may also have demonstrator cars available, which are owned by BMW MINI rather than the dealership. Because of the potential to tailor the specification to the customer’s needs, most cars are manufactured to order, with the dealership helping the customer to choose the options they would like. All MINI dealerships have their own website. The website follows the same visual appearance as the main MINI website, but with some local content included and an emphasis on used vehicles. In addition to sales of cars, new and used, MINI dealerships also offer after-sales service through parts and servicing, and can assist buyers with finance for the purchase of cars. Promotion In re-launching the MINI, BMW wanted to distance the car from any previous traditional marketing campaigns, setting the tone for the future of the car rather than focusing on the past. At the time the company at the time wanted to move away from previous associations with ‘The Italian Job’ etc, and bring the car into the modern day. BMW also wanted to ensure that potential buyers were determined by their attitude not by their gender, as the car appeals to both men and women. The company adopts a global approach to promotion. It is perceived as a global brand with no differentiation required – except in the UK, because of the heritage of the original Mini. With the launch of the new MINI, promotion took place both online and offline and in 1999, a dedicated global website was introduced to support the launch of the new car. In all markets, other than the UK, the strapline “Is it love?” has been used. In addition, each country has some autonomy to develop and implement localised promotional initiatives, including guerrilla marketing campaigns. Whilst a global approach was used, the UK was treated separately because of the heritage from the original Mini. In the UK, a more avant garde approach to promotion was adopted to emphasise its post-modern and highly individualistic appeal, in order to engage with the consumer on an emotional level. All UK promotions for the new MINI were linked through the strapline of ‘A Mini Adventure’. Each television advert showed a highly dramatic MINI escapade, compressed into a short space of time. Branding and all print and other advertising followed the theme. In more recent adverts, the adventurous spirit of MINI remains, but the creative idea has often been more about MINI's wonderful individuality.


Despite the different straplines and execution, the MINI retains a global brand value and language. 2003 saw a remake of the film ‘The Italian Job’. The producers gained major involvement from BMW, which included provision of the cars required for the film (including a brief appearance by an original Mini). BMW promoted celebrity endorsement of the MINI, with the car taking the lead on the endorsement rather than the celebrities – the reverse of the 1960s approach. BMW also continued the link with the Cooper sub-brand, making it a key component of the product range and working with the family of John Cooper to produce the higher performance versions of the MINI. In 2010, BMW announced that the MINI would return to world rallying with the MINI Countryman in 2011. This will be the first manufacturer-supported MINI rally team since 1970. MINI has used national advertising to announce the release of models and to keep people interested in the MINI brand. This includes advertising through online media, press, outdoor, TV and cinema. With 35 million people having access to the internet in the UK, it has become an important communication medium for MINI. Over the years, MINI has created a series of online adverts to attract people’s attention and encourage them to visit the MINI website. MINI also uses flash banners (banners that sit on particular pages of a website) as another form of advertising. Their flash banners incorporate animated images and video, and have been designed so that the viewer can interact with the advertisement. One such example allows the viewer to have a tug of war with a MINI. Finally, MINI has incorporated eye blasters into its advertising campaigns. These are page takeovers or large adverts that appear as a layer over the top of the web page itself. One such example involves a MINI driving across the screen, complete with sound effects. MINI has incorporated the big screen into its advertising campaigns. One cinema advert depicted a MINI driven along a country land and disappearing into the distance. The advert was treated as a feature film, with a classification page and full credits. The film entered the Guinness World Records as the shortest movie ever made, lasting just 12 seconds. Guerrilla marketing has also been used effectively by MINI. This takes the form of unconventional low-budget marketing aimed at maximum impact. All markets for MINI use guerrilla campaigns, which are individual to the country and intended to raise awareness. These campaigns can be run independently within the country without having to gain approval from BMW head office in Munich, Germany. The outdoor advert entitled MINI Christmas Box was produced by Ubachswisbrun advertising agency for MINI in the Netherlands, and was released in December 2009/January 2010. The aim was to convey the MINI brand experience in combination with the low price. The campaign comprised an actual pile of rubbish in the street, the familiar day-after-Christmas street scene, with rubbish bags, Christmas trees and cardboard boxes that presents come in. On top of the pile was a large box with MINI’s logo on the outside and a big 99 euro price-tag – the implication being that a MINI is an affordable present. The MINI Box was an eye-catcher, with passers-by stopping and checking the box. It spurred conversations and people took pictures and videos. The MINI Christmas Box then spread like wildfire on the internet. The YouTube video was viewed 100,000 times in just six days. The box also appeared on all the leading car blogs worldwide. The campaign was featured in magazines and received outstanding reviews on numerous trend-watching blogs


and in magazines, resulting in a substantial increase in test drives and car sales in January 2010 compared to January 2009. MINI Undercover was another interesting campaign. Three new MINIs were launched together in early 2007. People who had registered an interest online were sent an email inviting them to see a sneak preview of the new models. The email explained that the MINIs were 'under cover' but that you could release them by pressing 'the right buttons'. The email contained a link that allowed people to click through to a web page where computer-generated MINIs were tearing around in a warehouse under a giant piece of silk. When you pressed a button the MINIs burst out dramatically into full view.

In another example of marketing, MINI piloted an advertising campaign in Chicago, New York, Miami and San Francisco, which gave selected Cooper owners the chance to get an RFID key fob in the mail (RFID is radio frequency identification that uses radio waves to transmit information into a product or person for identification and tracking purposes). Users could select a custom message to be encoded on their RFID chip, and when they cruised near an overhanging MINI billboard, their particular message lit up for other drivers to see. Other international examples of creative MINI advertising have included: a billboard depicting the MINI driving past two palm trees that are curved around the

billboard to create an illustration of speed and power a real MINI Cooper hanging from a hand like a yoyo whilst moving up and down a tall

building a jet ski that has been designed to resemble a MINI Cooper, to give the impression of a

car driving on water a full-size MINI Cooper on display inside a box, similar in style to the boxes used for toy

cars billboards in situ on the top of tall tower blocks incorporating a MINI pointing upwards,

with headlamps lighting up the sky a real MINI Cooper left hanging from a ski lift. There are MINI websites in each country where MINIs are sold. This is where all of the credentials for each MINI model are to be found, along with details on financing and insurance. Additional mix elements In the UK, the MINI is available with an optional package that covers all servicing and repairs for the first 50,000 miles (80,000 km) or five years. The package, known as MINI tlc (tender loving care), costs £249, a substantial saving over the cost of individual services for the same period. For an additional £275, this can be extended to 8 years or 80,000 miles (128,000 km). Many of the servicing elements for the MINI can be carried out through the MINI Fast Lane Service, taking no more than 90 minutes. During that time, customers can take advantage of facilities in a customer lounge, including complimentary wi-fi, newspapers and television. MINI dealerships even offer a MINI Spa service, where owners can take their car for a range of cleaning services. Overall, the intention is to provide a painless service for owners to maintain their MINI, even including some elements of fun to encourage repeat purchase. BMW and MINI are the only car manufacturers to publish ratings of their dealership network based on the scores given by customers. The dealership star rating is drawn from customer satisfaction scores from real customers. Information is collated from customer satisfaction surveys conducted by MINI UK for new car sales and aftersales transactions. These ratings

http://www.engadget.com/2004/11/23/2005-mini-cooper-limits-bluetooth-compatibility/

http://www.engadget.com/tag/rfid

http://www.engadget.com/2006/11/15/gm-announces-feature-packed-key-fob/

http://www.engadget.com/2005/10/27/construction-sign-recommissioned-for-public-smsing/


are shown on the website for every dealership and allow customers to compare the scores of dealerships they may choose from. The ratings also have the benefit of producing an element of competition between the dealerships who all strive to get the highest rating. The MINI Brand Symbolic elements and key associations are important aspects of the MINI’s brand appeal. When people were asked to describe the MINI, popular answers included: fun to be with energetic likes to be noticed cheeky friendly lovable/popular reliable independent entertaining flashy. Research conducted in 2006 by Simms and Trott2 investigated perceptions of the BMW MINI brand. Customers viewed the MINI as being ‘a unique personality on wheels’ rather than a car, and it was seen to command technical prowess and promote enjoyment. In relation to three particular areas of the brand they found the following: Brand Image The image of the MINI was portrayed as sporty, fun, fashionable and trendy. The MINI was also considered to be ‘cool’, stylish, classy, chic and different. The associations of the MINI with motorsport and the film ‘The Italian Job’ were key to the sporty and fun, yet chic and classy, image it gleaned. Brand Personality The personality of the brand was found to be based on characteristics (trendy, sporty and attractive), traits (cheeky and fun), demographics (young, British) and the uniqueness of the brand. One area of particular interest from the research was that the image of the brand proved to be far more important than the actual product quality. Brand Associations The heritage of the brand was seen as very important in the research. The MINI was associated with the 1960s, British, Motorsport and ‘The Italian Job’. Further associations were related to product attributes such as appearance, handling and the ability to customise the car, as well as its connection with BMW. Sales According to its 2009 annual report, the BMW group sold 216,538 MINI brand cars worldwide in 2009 (-6.8%). The new Mark II MINI Convertible, which has been on the market since spring 2009, recorded sales of 28,303 units, an increase of 22.0% over the

2 Simms, C.D and Trott, P. (2006) The perceptions of the BMW Mini brand: the importance of historical

associations and the development of a model. Journal of Product & Brand Management, Vol 15 (4).


previous year’s sales of the Mark I. At 150,043 units, the total number of MINI cars sold fell 7.5% short of the previous year. The MINI Clubman recorded a sales volume of 38,192 units (-18.9%). In 2009, the MINI brand continued to generate a very high-value product mix. More than a half of customers (53.6%) opted for the MINI Cooper, with 26.2% selecting the MINI Cooper S and 20.2% the MINI One. Conclusion The future of the MINI brand looks assured as a core part of the BMW business. BMW has revealed that in the future, cars at the lower end of the BMW branded range will share major components with those at the higher end of the MINI branded range. The question remains, though: how far can the MINI brand stretch?


APPENDIX ONE Registrations of new cars in the United Kingdom – by marque

Company

YEAR TO DATE

2010 % market

share 2009

% market share

Audi 99,828 4.92 91,172 4.57

BMW 109,418 5.39 98,683 4.95

Citroen 73,317 3.61 72,450 3.63

Fiat 53,093 2.61 60,337 3.02

Ford 280,364 13.81 316,369 15.86

Honda 63,652 3.13 74,819 3.75

Mazda 45,449 2.24 47,934 2.40

Mercedes-Benz 74,977 3.69 72,281 3.62

MINI 43,894 2.16 39,866 2.00

Nissan 89,681 4.42 77,924 3.91

Peugeot 109,324 5.38 102,574 5.14

Renault 95,608 4.71 63,174 3.17

Toyota 87,396 4.30 102,612 5.14

Vauxhall 247,265 12.18 237,840 11.92

Volkswagen 174,655 8.60 161,137 8.08

http://www.smmt.co.uk/2011/01/new-car-registration-figures-full-year-2010/ Registration figures for Great Britain, Northern Ireland, the Isle of Man and the Channel Islands

December Total Diesel Petrol AFV* Private Fleet Business

2010 123,817 62,507 59,918 1,392 52,083 64,003 7,731

2009 150,936 64,649 85,312 975 83,319 60,885 6,732

% change -18.0% -3.3% -29.8% 42.8% -37.5% 5.1% 14.8%

Mkt share 2010

- 50.5% 48.4% 1.1% 42.1% 51.7% 6.2%

Mkt share 2009

- 42.8% 56.5% 0.6% 55.2% 40.3% 4.5%

Year-to-date

Total Diesel Petrol AFV* Private Fleet Business

2010 2,030,846 936,407 1,071,574 22,865 958,005 973,233 99,608

2009 1,994,999 832,456 1,147,580 14,963 1,014,304 882,415 98,280

% change 1.8% 12.5% -6.6% 52.8% -5.6% 10.3% 1.4%

Mkt share 2010

- 46.1% 52.8% 1.1% 47.2% 47.9% 4.9%

Mkt share 2009

- 41.7% 57.5% 0.8% 50.8% 44.2% 4.9%

http://www.smmt.co.uk/2011/01/new-car-registration-figures-full-year-2010/ * alternatively fuelled vehicle.

http://www.smmt.co.uk/2011/01/new-car-registration-figures-full-year-2010/



Registration figures for Great Britain, Northern Ireland, the Isle of Man and the Channel Islands continued

Best Sellers December

Best Sellers Full year 2010

1 Astra 5,377 1 Fiesta 103,013

2 Corsa 4,737 2 Astra 80,646

3 Fiesta 4,560 3 Focus 77,804

4 MINI 4,236 4 Corsa 77,398

5 Focus 3,831 5 Golf 58,116

6 Polo 3,724 6 Polo 45,517

7 Golf 3,267 7 207 42,185

8 Qashqai 2,841 8 3 Series 42,020

9 Insignia 2,587 9 MINI 41,883

10 3 Series 2,477 10 Qashqai 39,048

http://www.smmt.co.uk/2011/01/new-car-registration-figures-full-year-2010/ © Society of Motor Manufacturers and Traders reproduced with kind permission www.smmt.co.uk


http://www.smmt.co.uk/


APPENDIX TWO Volume of UK cars

Volume of UK Cars (Estimations)

Source and copyright: Mintel, Cars – UK 2011, Mintel Global Market Navigator, 2011

Units 2005 2006 2007 2008 2009 2010

Absolute Size (000) New

registrations 2,439.7 2,344.9 2,404.0 2,131.8 1,995.0 2,031.0

Growth % - -3.9 2.5 -11.3 -6.4 1.8

Volume Consumption per capita (population)

New registrations

0.0405 0.0387 0.0394 0.0347 0.0323 0.0326

Units 2011 2012 2013 2014 2015

Absolute Size (000) New

registrations 2,042.0 2,112.5 2,186.1 2,252.7 2,345.4

Growth % 0.5 3.4 3.5 3.0 4.1

Volume Consumption per capita (population)

New registrations

0.0326 0.0335 0.0344 0.0352 0.0364


APPENDIX THREE Product category segmentation A Mini – eg Smart B Supermini – eg Nissan Micra, MINI C Lower medium – eg Ford Focus D Upper medium – eg Vauxhall Insignia E Executive – eg BMW 5 Series F Luxury Saloon – eg Rolls-Royce G Specialist sports – eg Porsche 911 H Dual purpose (4x4/SUV) – eg Honda CR-V I Multi Purpose vehicle – eg Renault Espace © Society of Motor Manufacturers and Traders reproduced with kind permission www.smmt.co.uk APPENDIX FOUR Forecast UK sales of small and alternatively fuelled cars (AFVs), 2004-14

Year

New registrations of

mini cars 000

New registrations of superminis

000

New registrations of alternatively

fuelled cars (AFVs) 000

Total

000

2004 36.2 839.6 4.2 880.0

2005 27.2 732.8 6.3 766.3

2006 23.3 753.9 9.4 786.6

2007 21.5 770.6 16.6 808.7

2008 28.1 726.0 15.8 769.9

2009 (estimated) 55.0 885.0 14.4 954.4

2010 (forecast) 60.5 867.7 16.2 9,44.4

2011 (projected) 69.8 924.0 19.5 1,013.3

2012 (projected) 77.7 910.3 24.0 1,012.0

2013 (projected) 88.7 942.4 28.1 1,091.8

2014 (projected) 96.3 963.3 32.2 1,091.8

% change 2004-09 52 5 243 8

% change 2009-14 75 9 124 14

Source and copyright: Mintel, Small Green Cars and Alternative Fuels, Market Intelligence, December 2009



APPENDIX FOUR continued Volume sales of UK new and used cars, 2004-14*

Year New cars (million) Used cars (million)

2004 2.57 7.73

2005 2.44 7.58

2006 2.34 7.58

2007 2.40 7.49

2008 2.13 7.16

2009 (estimated) 1.83 6.66

2010 (forecast) 1.74 6.71

2011 (forecast) 1.79 7.09

2012 (forecast) 1.94 7.37

2013 (forecast) 2.05 7.48

2014 (forecast) 2.10 7.54

Source and copyright: Mintel, Purchasing of New and Second-hand Cars (The), Market Intelligence, October 2009

Total value of UK car sales, 2004-14*

Year Current prices (£billion)

2004 62.4

2005 64.5

2006 66.3

2007 69.2

2008 65.1

2009 (estimated) 60.9

2010 (forecast) 60.7





Source and copyright: Mintel, Purchasing of New and Second-hand Cars (The), Market Intelligence, October 2009 * Please note this is only part of the original article.


APPENDIX FIVE Top five best sellers by segment (UK) – 2009 Supermini

Model Registrations Market share

Ford Fiesta 117,296 15.8%

Vauxhall Corsa 84,478 11.4%

Peugeot 207 48,037 6.5%

MINI 39,866 5.4%

Toyota Yaris 30,040 4.1%

Segment Total 742,153 -

© Society of Motor Manufacturers and Traders reproduced with kind permission www.smmt.co.uk



APPENDIX SIX

Sales volume of MINI vehicles by model variant in units

2010 2009

Change in %

Proportion of MINI sales volume 2010 in

%

MINI

One 44,268 41,180 7.5 -

Cooper 76,520 75,213 1.7 -

Cooper S 35,053 33,650 4.2 -

Total 155,841 150,043 3.9 66.5

MINI Convertible

One 4,525 186 - -

Cooper 16,613 16,565 0.3 -

Cooper S 11,542 11,552 -0.1 -

Total 32,680 28,303 15.5 14.0

MINI Clubman

One 2,973 2,291 29.8 -

Cooper 19,551 24,265 -19.4 -

Cooper S 8,793 11,636 -24.4 -

Total 31,317 38,192 -18.0 13.4

MINI Countryman

One 1,733 - - -

Cooper 7,770 - - -

Cooper S 4,834 - - -

Total 14,337 - - 6.1

MINI total 234,175 216,538 8.1 100.0

Source: BMW GROUP, Annual Report, 2010.


APPENDIX SEVEN MINI RECYCLING. HARD FACTS. Design for recycling In the early stages of product development, MINI specialists ensure that hazardous materials are excluded from all parts and components. The strategic use of recyclates for component production leads to the reduction of the amount of resources required. Environmentally-friendly recycling processes already exist for metallic components, and it was possible to develop similar recycling processes particularly for the ever-increasing number of plastic parts. In terms of weight, 10% of all plastic parts used in the MINI are made up of recyclates. An optimum recycling quota for the materials used in the construction of the MINI is achieved by placing emphasis on recycling-friendly construction of all components at a very early stage of development. Design engineers are supported by specially developed standards that guide recycling-friendly vehicle construction. Optimised joining techniques and material selection make the economical dismantling of many of MINI components possible. For example, the outer cover of the instrument panel and the shelf below make up a ‘one-material system’ consisting of <ABS+PC>. The loading shelf and the seat panelling covers are examples of pure <PP>materials. The loading shelf cover is fastened by only an expanding rivet, and can be detached from the MINI within seconds. After a side screw has been loosened, the front seat’s rear panel can be levered from its clip and rivet joints. These components can then be recycled completely. Overall, the stringent implementation of the "Design for Recycling" philosophy at MINI Development ensured that, as soon as production had begun in 2001, the MINI had already met the recycling quotas stipulated by the EU directive on end-of-life vehicles for 2015. The depollution process Pre-treatment first starts with deployment of the airbags and other pyrotechnic devices. The MINI then gets moved on to what is known as the depollution rig, where the majority of the work is carried out. To simplify this process, the MINI has easily accessible drainage screws and marked drilling points to allow quick and easy access to the operation fluids. Refrigerant and air conditioning gases are drained off. Brake fluid, cooling fluids, engine and transmission oils and any remaining fuels are then removed using a number of specially designed suction tools and intrinsically safe drills. The different liquids are then filtered and cleaned for reuse, where possible. Pyrotechnical components Pyrotechnical components, such as airbags and seatbelt pretensioners, are triggered using a standardised activation device. This neutralises them, eliminating any risks they may have posed during the rest of the recycling/dismantling process. Battery After the battery has been unclamped and removed, it is sent to a specialised recycling plant, where it is shredded completely. The <PP> plastics are removed and regranulated,


with the regranulate used to manufacture new <PP> plastic parts. The lead in the battery is melted down and made into blocks. These lead blocks are then used as raw materials for the lead-processing industry. Oil Discharged oils can be refined and reused in the production of new oil. Petrol In the course of dismantling, petrol is removed from the MINI by drilling a hole in the tank at the deepest point, suctioning off the petrol and then sealing the hole. The petrol is either burned for energy production or to refuel other cars. Brake fluid The discharged brake fluid can be purified via vacuum film evaporation in order to reduce the amount of water it contains. The output can be used for brake fluid again. The dismantling process Reuse and recovery increases the recycling quota of end-of-life vehicles. For metal parts, reuse or recycling is already a well-established process. Ferrous metal is the principal material in a MINI and as such accounts for the vast majority of recycled material, and is directly supplied back into the metal industry. Parts and components can be disassembled to be used for the same purpose for which they were originally conceived and manufactured. Glass and many plastics can also be recovered and recycled either at the dismantler or after the shredding process. Engine Depending on its condition, the engine of the MINI is either disassembled or torn out using a manipulator. It is then either sold or sent to the MINI exchange parts production unit. Here, the engine is dismantled and cleaned, and any worn parts are replaced. It is then reassembled and is available for customers as a replacement engine. Alternatively, the engine and transmission are used as metal-rich scrap. The scrap is shredded and sorted, and the metal fractions (iron, aluminium and magnesium) are then reused in metal production. Catalytic converter The MINI’s catalytic converter is removed using hydraulic shears, and the precious metals (e.g. platinum, rhodium, palladium) are returned to the materials cycle. They are used, among others, for the manufacture of new catalytic converters for the MINI. Glass During the dismantling process, the MINI’s front windscreen is removed using sawing or milling equipment, and the rear and side windows are knocked out. The glass is then sent to a sheet-glass recycling plant. The pieces of glass are then ground down. The pea-sized pieces of glass are sorted, with tinted glass and any foreign bodies being shot out with air blasts. Recycled glass is an integral part of the glassmaking industry, with most of it being used in the manufacture of bottles and jars.


Alloy wheels During the dismantling process, the wheels are removed from their axles and the rims and tyres are separated. The alloy wheels are then melted down and recycled to form secondary aluminium. Bumper trims After the bumper has been removed from the MINI, it is separated into metal and plastic parts. Rapid dismantling of the large bumper trims, which are made of plastic, is already guaranteed in the early stages of the product development process. All fastening elements are easily accessible, and the construction of the trims enables economical dismantling. The aluminium parts of the bumper trims are sent off to be recycled, and the plastics are ground down, stripped of their paint finish and regranulated. The recyclates are used in the manufacture of parts, such as wheel housings (in terms of weight, 10% of all plastic parts used in the MINI are made up of recyclates). Rear seat panelling After being dismantled, the rear seat panelling in the MINI is shredded and then melted down to form plastic regranulate. Instrument panel cover The instrument panel cover and shelf are made of ‘one-material’ systems consisting of <ABS+PC>. These components are destined for economical recycling, aided by a joining technique with quick-release torque screws. The instrument panel cover is shredded, melted down, filtered and then granulated to form plastics regranulate. All plastic components are labelled with the materials they are made of, for rapid identification for separation and optimum recycling. The shredding process The remainder of the MINI is transported, often partially crushed or flattened, to the shredder. Here the hulks are fed through a variety of mechanical and physical shredding and cutting processes as part of a mixed feed. They are finally sorted into their different metal fractions, sizes and remaining materials including plastics, textiles, glass and foam. Body The shredder reduces the hulk to palm-sized pieces. An air separator is used to sort light plastic parts, leather, carpets and textiles, which are then used for energy production. Parts containing iron are separated using a magnet. The remaining non-iron parts will be broken down in a specialised plant in float/sink reprocessing units into aluminium, copper and magnesium fractions, and then used in metallurgical processes. www.mini.co.uk

http://www.mini.co.uk/


APPENDIX EIGHT The Car Purchase Process

3. Budget/finance search

4. Scoping for additions/alternatives

5. Feature/benefit analysis

6. Opinion reinforcement

7. Brand/Model refinement

8. Value search

12. Purchase

9. Further options

10. Dealer search

11. Negotiate

2. Defining needs (brands/models)

1. Purchase triggers


The Car Purchase Process (funnel stages) A brief description of each of the funnel stages is included below. 1. The purchase triggers or ‘hot buttons’ (reasons for funnel entry): a. Desire for change, time for change b. Change of job/unemployment c. Purchasing or selling a property d. Moving in with partner/getting married e. The birth of a first or subsequent child f. Inheritance g. Current car becoming unreliable h. Peer pressure i. Need for improved fuel economy (high fuel prices) j. Purchase a car with greater safety protection k. Owned car coming out of warranty l. Car mileage reaching a certain level m. Car written off following accident n. Manufacturer/dealer promotion (discount finance offer) 2. Defining needs At this early stage, car buyers begin to evaluate their requirements for the type of car they require in terms of size, colour, specification, fuel type and price. 3. Budget availability The budget a car buyer has available is the primary factor that determines whether a new or used car is purchased as well as the brand and model choice. The majority of car buyers determine the budget early on in the purchase process and this includes searching for credit finance if they are not purchasers using cash savings. If searching for credit finance, a significant proportion of the research time spent in the purchase process is devoted to finance and trying to find the lowest cost finance as this will ultimately determine the budget available. 4. Scoping The process of determining the budget can often result in awareness of wider brand and model choice. If a consumer realises they can raise more funds than originally envisaged, it can open up a wider choice of brands and models available within an enhanced budget, especially in terms of monthly finance repayments. This is where more emotive elements can enter the purchase process, as consumers begin to think about other potential brands and models they might be able to afford. This is also the stage where the car buyer’s default brand and model list can begin to be enhanced or rearranged. As the consumer’s receptive capacity becomes susceptible to outside stimuli, the brain becomes more open to suggestion and almost fantasises about brand and model possibilities. This may be stimulated by seeing a car on the road or in a car park that they may not have considered as being a candidate within their default list. The stimulus could be an attractive design or style they had not really seen before or seeing someone they respect in a car they hadn’t considered before.


5. Cost feature/benefit analysis This is the stage where the rational/emotive trade-off begins as the consumer rationalises their emotive brand choices with the practicalities of issues such as running costs “I’d love a BMW but I couldn’t afford the higher servicing costs”. The extent to which the emotional ‘right brain’ overrides the rational ‘left brain’ or vice versa will depend on the person’s personality type and probably whether they are more introverted and thoughtful or more extroverted and impulsive. An introverted person is more likely to invest time in analysing features and benefits, whereas a more impulsive, extroverted person may not want to invest time in feature benefit analysis and prefer to make a decision based on ‘feelings’ rather than judgement. Brand values may have a greater influence on the extroverted or impulsive car buyer who relies on their perceptions of a brand to influence their decision. 6. Opinion enforcement When the consumer has arrived at a full choice of models and brands which includes their default choice supplemented by emotive choice additions, they may then begin the process of reinforcing their brand and model choices from external ‘expert’ recommendations. This might include reading car reviews or seeking peer group reactions to their brand choice to see if their choices are socially acceptable. It may also include talking to the garage that services their current car. 7. Brand and model refinement – the shortlist At this stage, consumers begin to reduce their enhanced list down to a shortlist of desirable brands or models (or possibly just a list of models as the brand decision may already have been made in stages five and six). This stage will include beginning to visit dealers to see cars in the flesh and look round them and sit in them to see how their ‘self-concept’ adjusts or ‘feels’ adapting or being seen in this new environment. 8. Search for best value Having viewed models, the search then begins to find the best value and at this stage the final choice of brand/model may not have been finalised. Often it will be affordability aspects that determine the final choice of model or brand. This is where the internet is employed to compare prices and specifications of cars for sale at different dealers to arrive at a value bargain. 9. Further brand model options An internet search can sometimes result in unexpected brands and models entering the purchase process which may require further consideration. This may result in the car buyer coming out of the purchase funnel and re-entering at a higher level to re-evaluate their brand and model choices. 10. Dealer selection When they have finalised their brand or model choice, they then identify dealers to contact based on their search for best value. The dealer may then be visited to begin discussions and negotiations over car prices, discounts, enhancements and delivery. This is the stage where the dealer either makes or breaks the sale and will depend upon factors such as the trust the car buyer has with a particular salesperson and how engaging the salesperson is with the car buyer.


11. Negotiation With the majority of dealer sales staff operating on commission, their willingness or not to negotiate the amount of commission they stand to make on the transaction may determine the outcome. If the salesperson is regarded by the car buyer as being inflexible, the car buyer may well just say ‘I’ll think about it’ and walk away. As part of the sales process, the question of finance is raised. This can also be a deal clincher or deal breaker. Many dealerships rely on the profit contribution from finance and try to ‘negotiate’ the car buyer into taking dealer finance at a high rate. This can cause the buyer to walk away and start negotiations at another dealer. 12. The purchase When all of the buyer’s criteria have been fulfilled in terms of car specification, price, delivery and finance, the sale is closed and completed. Source and Copyright: Mintel, The Purchasing of New and Second-hand Cars, Market Intelligence, October 2009.


APPENDIX NINE The Perceptions of the BMW MINI Brand: The importance of historical associations and the development of a model3 Only part of the article was supplied for the exam but the whole article can be accessed by members via www.cim.co.uk/elibrary. Simms, C.D. and Trott, P. (2006) The perceptions of the BMW mini brand: the importance of historical associations and the development of a model. Journal of Product and Brand Management, Vol 15(4), pp228-238. http://dx.doi.org/10.1108/10610420610679593

http://www.cim.co.uk/elibrary

http://dx.doi.org/10.1108/10610420610679593


APPENDIX TEN Mini points to revamped BMW image By Jorn Madslien Madslien, J. (2009) Mini points to revamped BMW image. BBC News, 20 September. Available at: http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/8262255.stm © BBC MMX

http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/8262255.stm


APPENDIX ELEVEN

MINI United Kingdom Corporate Communications Media Information 4th August 2011 FULLY CHARGED: MINI PUBLISHES RESULTS OF UK’S MOST IN-DEPTH ELECTRIC VEHICLE TRIAL

Over 250,000 miles driven on UK roads Average cost to charge less than 2p per mile Full results of BMW Group’s government-supported research into the day-to-day

running of electric cars revealed Average daily distance driven 29.7 miles Virtually all recharging carried out at home Almost all participants said they’d consider buying an electric car as a result of taking

part. Understanding how electric cars are driven in the real world has taken an important step forward with the release of data from the MINI E field trial in the UK. With 62 members of the public and 76 pool users running the battery-powered hatchbacks over two six-month periods, the Government-supported trial is the most in-depth of its kind in the UK to publish its findings. The enormous amount of data was collected electronically by the car and the home charging points, and also from extensive driver research carried out by Oxford Brookes University. The early findings have already informed the development of the 2011 BMW ActiveE car, a four-seat car based on the BMW 1 Series Coupe, but the biggest beneficiary will be the BMW i3, the first purpose-built EV from the BMW Group, due in 2013. This information has also helped to inform UK policy-making decisions and other EV market stakeholders. The UK trial discovered that everyday use of the electric MINIs didn’t radically differ from the typical driving patterns of a control group of drivers of conventionally powered cars in the same segment. In fact, the daily journey distance of 29.7 miles was slightly more than the 26.5 miles recorded by the control cars, a mix of MINI Coopers and BMW 116i models. Interestingly, the UK average daily distance driven for private cars overall is less than 25 miles. With information gathered by on-board data-loggers, the average single trip distance was recorded as 9.5 miles compared to the UK average of 7 miles. Four out of five people reported that 80 percent of their trips could be done exclusively in the MINI E, and this increased to 90 per cent of users saying that with the addition of rear seats and a bigger boot, all their trips could have been done in the MINI E. Overall an average range of 90 miles was recorded, although 84 percent said that severe cold weather affected range. Despite that, four out of five participants told the researchers they thought the MINI E was suitable for winter use, with one user, Janet Borgers, saying she “regularly did 88 miles in a single journey in the cold weather”. Another female commuter clocked up almost 8,000 miles over a September to March period. Given the daily driven distance of just under 30 miles, the drivers felt confident enough not to have to charge their MINI E every night. In fact, the average was 2.9 times a week


according to information fed back via electricity smart meters, with special night-time tariffs successfully encouraging individual drivers to charge when it was cheapest, which coincided with a low demand period and a greater proportion of renewable energy in the grid mix. Nine out of ten drivers told the researchers that charging actually suited their daily routine, with 81 percent agreeing with the statement “I prefer to plug in the car than go to a fuel station”. The running cost-savings were appreciated by users, with one participant telling researchers the thing she’d miss most was: “the money I will have to start paying for fuel again!” Most charged at home, with 82 percent using their wall-mounted charging box 90 percent of the time. The lack of a comprehensive public charging infrastructure in the UK was noted, with four out of five participants (82 percent) saying they thought that it was “essential” that a network of charging points was established. However, almost three quarters (72 percent) said they were able to use their car perfectly adequately right now as they had access to private charging. Asked about their driving experience, the trial participants were full of praise. Every single one enjoyed the quietness, with one user quoted as saying: “I like the silence – it’s very futuristic and it causes a reaction when people notice you pull away without making a sound.” And they all agreed with the statement: “electric vehicles are fun to drive.” The reason was partly down to the “fast pick-up and quick acceleration” of the 204hp MINI, again a statement that 100 percent agreed with. One even went so far to say it was “absolutely the best car I have ever driven”. Driving efficiently to extend the range was seen as part of the enjoyment rather than a chore. Understanding that use of the regenerative braking could increase the range by approximately 15 percent, three quarters of the users (74 percent) agreed with the statement that it was “a game for me to use the regenerative braking in a way that enables me to reach my destination without draining the battery.” Asked by the Oxford Brookes University researchers for suggestions to deal with the potential danger from the low noise at low speeds, over half (56 percent) said that instead of an artificial noise, the driver should pay more attention. However just over a quarter (28 percent) said they’d like to have a warning noise below 12.5mph. Almost all participants (96 percent) said they’d consider buying an electric car as a result of taking part, and half (51 percent) revealed they’d pay a third more for an EV. A third (30 percent) said they’d consider taking the plunge within a year, while 55 percent said they’d hold fire for two or more years. The trial found that one week was all that was needed for customers to adapt to the characteristics and peculiarities of driving an EV, such as charging, range, regenerative braking and low noise. However those company car drivers invited to use the MINI E as a pool car on a less frequent basis needed increased training and support during the initial period of vehicle use in order to condense their learning. Fleet use was a big part of the trial with organisations in the UK and in Europe reporting positive feedback from both individual drivers and also fleet managers monitoring the MINI E’s use as a pool car. Those users who swapped out of their regular car reported that the MINI E was fine for 70 percent of journeys made during the working day, while the pool car success rate was even better with between 80-90 percent of regular trips achievable.


The speed of charging was an important consideration for fleet users, while managers also flagged up the need for a clear procedure for the efficient charging of pool vehicles. Companies that participated included Scottish and Southern Energy, Oxfordshire County Council, and Oxford City Council. The MINI E trial was one of eight UK projects supported by the £25m Ultra Low Carbon Vehicle Demonstrator Programme, funded by the Technology Strategy Board and Department for Transport. These are aimed at bringing forward the introduction of viable electric passenger vehicles to the UK. Suzanne Gray, General Manager of BMW i said: “The feedback from the trial has been invaluable in helping our understanding of how people really respond to electric cars and other factors necessary to support electric car drivers. With this information we will be in a strong position to provide a well-rounded product and service proposition to customers of the BMW i3 and to work with other players in the electric vehicle market to make it a successful experience for a new generation of users.” Kulveer Ranger, Mayor of London's environment director, said: 'Electric driving technology is coming on leaps and bounds, but people naturally still have questions and concerns. Research such as this by BMW Group into real life experiences is invaluable as it debunks some common myths and underscores why electric vehicles are perfect for urban driving. The trial has also demonstrated the importance attached to supporting infrastructure, which is why the Mayor of London has launched Source London to provide a network of charge points that will help to create optimal conditions for electric vehicle use in the UK’s capital.’ The MINI E Trial in numbers: 40 MINI Es 12 Months 138 Drivers (32 women 106 men) 258,105 Miles 33,345 Journeys 80,282 kWh Electricity Highest mileage by an individual driver over six months – 7954 miles Average mileage per vehicle over six months, including fleet pool cars – 3226 Average cost to charge over six months – £60, less than 2p per mile.

Notes to editors: The MINI E is a two-seat development of the familiar MINI Hatch. It is powered by a 204hp electric motor that also generates 220 Nm of torque. It is driven by battery power in the form of a sophisticated 35 kWh Lithium-Ion battery containing 5,088 cells. The battery was charged by a special home charger supplied by consortium partner Scottish and Southern Energy. This enables a charge time of 3.5 hours at 32 amps. The MINI E has a top speed of 95mph and an official range of 149 miles (according to FTP72 standards), although a realistic range is 112 miles. The UK field trial mirrored those on the East and West coasts of the USA, in both Munich and Berlin; Paris; Tokyo and Beijing and Shenzhen. In the UK 40 MINI Es were driven from December 2009 until March 2011. The 40 private MINI E Pioneers were selected from applicants in the South East of England and paid a subsidised monthly lease cost of £330. The remainder were fleet drivers with an individual car nominated by their company. They represented a mix of males and females from a cross section of income-groups, education


backgrounds, urban/rural dwellers, family sizes and annual mileages. Drivers with access to a MINI E pool car also formed part of the study. The UK Consortium members who have supported the MINI E trials are Scottish and Southern Energy who supplied the home/public charging technology and energy, Oxford Brookes University who devised the research methodology, selected participants and analysed data from users, SEEDA who provided funding support and enabled the participation of Oxford City Council and Oxfordshire County Council, and the BMW Group who led the Consortium, supplied the MINI E and managed driver education and support. The 40 MINI Es are still on UK roads in partnership activities which continue to promote awareness and understanding of electric vehicles, and they will form part of the BMW Group UK’s official vehicle fleet for the London 2012 Olympic Games. BMW’s battery vehicle research extends back to the deployment of an electric BMW 1602 during the Olympic Games in Munich in 1972 using lead-acid batteries. Source: BMW GROUP COMPANY


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