Case number: 113-1015-005
Case Author: Adora E. Jones
Course Major: Marketing Fundamentals, International Business, Economics
Related Topics: Marketing Strategy, International Marketing, International Business
Teaching Note Availability: The New Kid in Town: MINI “COUNTRYMAN” Launch [Teaching Note]
MINI is an easily recognizable name in the car industry, and the company aimed to make that true in Indonesia as well. The financial crisis of 2008 showed the strength of the Indonesian economy, as it maintained a 6-8% growth rate in GDP while developed countries in the West stumbled. Furthermore, Indonesia boasts a huge potential market for MINI with both population growth and median age increasing. The automotive industry saw substantial growth in its market. Within one year, 2010 to 2011, car sales in Indonesia jumped by 17%, or 900,000 new vehicles. In general car sales, MINI and its mother company, BMW, face stiff competition from the likes of Toyota, Nissan, Honda, GM, Suzuki and Daihatsu, all of which are expanding. Japanese producers, in particular, make up 95% of the market.
To start its bid to win over the Indonesian premium car market segment, MINI chose the “Countryman” car model as its main product. The car itself came in two models: the S Countryman and the Countryman. For the MINI Countryman, its competitors in size and function come from BMW mostly, followed behind by Mercedes and Audi. The management team was able to divide its target market segment into two distinct groups, 1) the creative individuals and 2) high-income families. In order for the Countryman to reach to the over 300,000 potential customers, MINI needed to translate its brand values into the Indonesian context successfully. The management team agreed to three main objectives: leveraging the MINI global reputation, promoting the vehicle’s unique aspects, and launching a unique marketing scheme.
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