Advertising – Case Memo II
MINI- USA: Finding A New Advertising Agency
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BMW is a global company with 28% of its market is in North America, 25% of its market is in Germany, 21% in rest of the Europe and its products are sold in Asian regions as well. The new car MINI needs to be launched by the BMW Group in market with the help of an advertizing agency. The selection of an advertizing agency is critical here because it will be responsible for the successful launch of the MINI motor in the market. The car to be launched is having specific special features and is economical as well (far more room in far less space). It is also called as “Wizardry on Wheels”. It has been specially designed for providing more space to those who use it. Its launch needs to be highly effective then only the sales for the new product will increase. The company has in past years did publicity with the help of print advertisements in magazines, mobile advertisements etc. The unit sales have been increasing for the product every year from the year 2002. There is an increasing trend in the units sold for MINI over the period of four years. The accumulated sales increased due to this for the same period of four years. There is further expectation of growth and better performance in future. As per the existing economic conditions of USA, one can notice that there have been continuous increases in the total advertizing expenditures across the country. But the overall constitution of the advertisement expenses in total has been reducing in terms of the comparison to its percentage in the Gross Domestic Product (GDP). The percentage changes in the advertising expenses in the USA have been high as compared to the percentage changes in the Gross Domestic Product (GDP) of the country. In 1999, the Classic Mini ceased production and then the new MINI and MINI Cooper were unveiled to the public in a show of passion and...