Why Mini can be pushing upmarket
Source : Why Mini can be pushing upmarket
Mini’s brand-new premium image can be less about refreshing the brand along with also more about turning a higher profit on each car
The consensus can be in which the Mini brand, relaunched under BMW ownership in 2001, has been an object lesson in product development, branding, marketing along with also creating a demand for customisation.
However, Mini has not been a runaway success as a business, with profits likely to have been as smaller as the original Issigonis design was. Indeed, the item can be possible in which over 14 years along with also two generations, Mini hasn’t made any money at all, when the research along with also development spending can be taken into account.
No one can be definitive about Mini’s financial situation because BMW doesn’t give details for the British brand. nevertheless there’s little doubt BMW’s decision to build front-drive BMW-branded cars was given a huge push by problems caused by Mini’s lack of scale.
Mini sold 305,000 cars in 2013 along with also 302,000 in 2014. in which’s not to be sniffed at, nevertheless the item’s a relatively smaller number for a global brand having a stand-alone platform.
the item can be almost impossible for a car maker to turn a profit on a car engineered, built along with also sold in Europe for a cost of much less than £18,000. along with also although Mini has sold some highly optioned designs, my suspicion can be in which the average Mini transaction cost can be not as high as BMW could like, or needs.
the item’s This specific essential calculation in which has pushed the brand-new Clubman into Audi A3 territory. Out goes the jokey, youthful marketing image along with also in comes something more serious along with also worthy, having a cost to suit.
Cars with high-level engineering content are ever more expensive to design, engineer along with also produce. Although This specific can be made to work for premium brands, the item shows just how increasingly difficult the item can be for mainstream brands, or those charging mainstream prices. Which can be why Mini can be heading upmarket as fast as possible.
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