Global auto sales have spiraled downward since last September’s economic reckoning. This is not surprising when you consider that, according to Henry Blodget, in 2007 30% of new car sales in California alone were financed from equity in people’s homes. That’s a pretty troubling statistic for those expecting a rebound in across the board consumer spending any time soon!
However, as ever the apparent “reality” hides stories within it of companies that are able to find buyers who will pay fair prices and allow them to continue to grow a profitable business. A great example is MINI, who expanded its market share in 2008 and is now expanding dealerships; all while thousands of those of their competitors are being closed down.
How can this be? Nobody is buying anything, right?
If you understand the NEO typology this is not only explainable but also highly predictable. Our consumer research shows us that over 60% of MINI owners are NEOs, which is amazing when you consider that they represent only 24% of the population. The majority of the remainder are Evolvers. This is not a Traditional car at all. It is expensive and small – everything that the price and perceived value conscious Traditional (over 50% of the population) hate. They like their cars big and cheap. Unfortunately they aren’t buying many of them now and are unlikely to do so for some time, which will lead to a lot of unsold Chrysler 300s.
MINI has built its success on the driving experience (they are tremendous fun to drive), design (beautiful interpretations of the original Alec Issigonis design) and being a little bit unusual (Union Jack roofs in North America). Both the content and the style of the marketing program to date, with the well-designed urban sales dealerships, directly appeal to the NEO car buyer looking for something different. The ability to personalize the vehicle in a myriad of ways was also a really smart move.
There is a warning though for MINI that should be heeded by anyone hoping to sell to high margin buyers in any industry, including real estate:
Unfortunately the MINI “marketing experts” seem to have decided that pricing is what is necessary to move cars right now. Look at their website today and they lead with a pricing offer. This is a mistake. The website is the first place that the highly research driven NEO will look when exploring their options. It is vital to get the syntax of the offering right upfront, as you can be dismissed as a potential fit with just one click of the mouse.
Do not lead with price unless you have already firmly established why your NEO/Evolver prospect should care. The website is a research tool not a direct sales tool. It should enable the prospects to sell themselves by falling in love with your product so that nothing else becomes an option. Price is then just the cost of that falling in love. By all means have a compelling offer to get someone to buy now, but it needs to be handled in the right order.
Most marketers treat the prospect like a hooker, where price is all that really matters and is negotiated right upfront. This is fine if you are selling to Traditionals, but MINI does not appeal to those consumers, whatever the economy. If you want someone to fall in love with you, then you are going to have to take a little time to show him or her why you are special and the only one for them. Before you close the deal!
There will always be cars that are cheaper than the MINI, (such as the Traditionally marketed Suzuki SX4) just as their will always be cheaper than you in your business. MINI needs to take their marketing “guy/girl” and lock him/her in a closet before they do too much damage. People buy a MINI because they are in love with it, then they want the best price for it. In that order!
Get this wrong and you cease to be able to make your case to be valued differently than everyone else in the market.
After all, who ever ended up marrying the hooker!
NEOBLOGGER
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