Mini marketing chief proves them wrong

Jack Pitney, general manager for the Mini division of BMW of North America LLC, has the distinction of being one of the few car division heads whose professional experience is in marketing communications instead of automotive engineering, manufacturing, finance or sales.

Yet under his leadership, the Mini, which was introduced just nine months ago, has earned a place of honor in automotive history, being named 2003 North American Car of the Year last week.

It wasn't easy, though.

During the Mini's initial media briefings, sales in the first year were projected to be about 20,000, a figure many thought was too ambitious.

But Pitney proved them wrong. In 2002, 24,590 Minis were sold.

And, with a limited budget, the advertising has been phenomenal.

For these feats, Pitney has been named one of two Automotive News Marketers of the Year. The other is Jim McDowell, vice president of marketing for BMW North America LLC.

Special Correspondent Marty Bernstein talked with Pitney about the brand's success.

How does it feel to have the Mini reach its goals and become a status symbol, too?

Obviously, we and our dealers are delighted with the initial consumer response for the Mini. While we've sold all that were originally ordered, we still have lengthy wait lists for the Mini Cooper S. The accolades and awards are wonderful, but it's sales that really count. The customers' enthusiasm, especially for the Mini S, has frankly surprised even us. But it is flattering.

What have you done to generate this response?

Getting the Minis on the road has really helped bring the brand to the public's attention. Our marketing communication budgets are small in comparison with other new-car introductions. But in just nine months, a recent survey showed the Mini has gone from zero to 25 percent brand awareness among consumers, which is incredible growth.

How will you continue the Mini's growth?

Projecting Mini's sales on an annual basis from the first nine months of 24,590 results in a little over 30,000 units. We feel good about our ability to sustain this level of sales.

We won't be offering special incentives, either. We will rely on the product's merits, strengths and attributes.

We have a true partnership with our dealers and are going to bring sales up to a level we think is sustainable and a level that is profitable to both of us. We won't flood, or even attempt to flood, the market.

Do you feel the introduction of the Mini reached your goals?

We are the world's second largest market for the Mini. England, naturally, is No. 1. We've surprised ourselves. We've surprised our dealers, and we've surprised the industry. It's been a great ride so far.

What are your advertising plans for 2003?

As we move forward, our whole credo is if another car company can do it, we ought not. You will continue to see us breaking convention and doing things differently than anyone else in the industry. It helps differentiate the brand and speaks to our brand's unique characteristics. We don't have big budgets compared with other small car manufacturers, so we have to stand out.

Will you continue the award-winning launch campaign created by Crispin Porter & Bogusky?

CPB is a wonderfully talented and creative advertising agency. We enjoy a true partnership with them. It's one big team that's really dedicated and hard-working. Our car is small, and we are small, but that makes us nimble and agile. So we are able to do things that other car brands can't and won't do.

Dealers often do not like the advertising created by the brand's ad agency. How do your dealers feel about CPB?

Our dealers really love their work. And more important, our 70 dealers help determine what compensation bonus Crispin Porter & Bogusky will receive.

That's a new twist. How does it work?

The 70 Mini dealers vote on how effective the agency has been in developing the brand and helping them meet their needs at the local level. Their votes help determine the bonus we will pay the agency. It's a unique incentive.

It sounds like you're relying on your dealers a lot.

Great consumer interest has been generated in the Mini. Seventy-five percent of all buyers read or heard about the car through public relations and Internet exposure before the advertising broke. But with only 70 dealers in 31 American cities, it's important that we tell the consumer where they can purchase a Mini. It's a three-party partnership: Mini, CPB and dealers.

Why haven't you used TV advertising for the Mini's introduction?

Initially, we did not use TV - budget constraints. But we were presented with a unique opportunity to advertise on television after Christmas through early January on prime time in our top 10 markets and took advantage of it. It is an aberration, however, because we usually don't have the money to use television and are not convinced of its appropriateness as a medium for the Mini.

Mini came out with innovative ads. How will you continue that?

Teamwork. When we first started thinking about the Mini, there was a team of 12, and we were all in one big conference room. We got to know each other very well and helped build our team's camaraderie.

We come to work every day thinking, "I've got the best job in the world." Mini's marketing team is led by Kerri Martin, Mini's marketing communications manager, who prefers the title "keeper of brand soul."

Mini advertising has been unconventional and dramatically different from that of BMW. Did you have any difficulty selling or getting corporate approval for the campaign?

The response from corporate BMW has been sensational; the board member responsible for our sales and marketing has taken it upon himself to be the lead Mini ambassador.

In fact, he has challenged us and all the Mini teams around the world to try new things, new programs and new ideas to sell a new kind of car. Tom Purves (BMW of North America's CEO), my direct boss, believes in what we have done. It's great to have top management support for our programs.

Part of the Mini launch was a comprehensive line of accessories and apparel. Have sales met your expectations?

It has gone very, very well, especially in Internet sales. We share the revenue with our dealers on direct sales from the Web. This category has helped build our branding efforts and has added to Mini's brand awareness.

Will you expand the category to sales by nonautomotive retailers such as department and specialty stores?

This year an announcement will be made about expanding beyond the Mini lifestyle products we now sell and beyond the venues in which they are sold. Once again, we will surprise the industry.

Rumors abound about the entry of the Smart car into the U.S. market. Do you anticipate serious competition?

Several of our dealers have told us they have been visited by Smart car people who have been really impressed by the financial commitments made by Mini dealers and by BMW in establishing the Mini division as a separate entity with its own brand identity and retail environment. They will be competing with us.

What would you like to do better in 2003?

There is one area that requires intensification and modification this year. There needs to be a better, more comprehensive training program for our retail salespeople to assure consistency and professionalism.