MINI sees big opportunity for small cars in Boston
MINI’s head of North American sales talks about how the little car “established itself as an icon.’’
As Vice President of MINI of the Americas, David Duncan is responsible for overseeing the automaker’s sales performance everywhere from the United States and Canada to Argentina. And he’s got a lot to be happy about.
On Friday morning, Duncan met with Boston.com at Herb Chambers MINI of Boston. Duncan was travelling to New England to speak with a few local MINI dealers about the company’s sales strategy and to take a trip up Mt. Washington with a group of MINI owners.
A good year for sales
What has Duncan so happy? For starters, MINI’s May sales are up by 28 percent nationwide from last year. At the local level, it’s almost as impressive, with Boston’s MINI sales jumping 18 percent from last year.
For Duncan, this is welcome news for a brand he helped re-launch in the U.S. back in 2002. At the time, Duncan described the car as “an icon and not a fad,’’ a description he still feels confident in.
“I think about where we were in automotive history back then,’’ said Duncan. “When large SUVs were the norm, MINI launched the smallest car at the time… Look at what happened in the last 13 years.’’
“Fads come and go,’’ said Duncan. “But this hardtop car has established itself as an icon.’’
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See how MINI and other car brands perform in terms of vehicle dependability.
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He’s also encouraged by MINI’s sales performance in Boston considering the powerful winter that slammed the region earlier in the year.
“We feel very good about where we are at this point considering the first quarter was as difficult as it was,’’ said Duncan.
Duncan believes a few factors are at play in attracting new customers to the MINI brand. First, he thinks customers who were once turned off by MINI’s traditional two-door model are taking a second look at the company’s new four-door models, the Hardtop 4-Door and the Countryman. The Countryman has all-wheel drive, a factor that gives it an edge in New England winters.
A MINI for everyone?
The second factor is MINI’s television campaign. A recent MINI commercial features a dad surprising his four sons with a skateboarding trip at an abandoned water park.
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In case you didn’t recognize the father, that’s skateboard legend Tony Hawk and those actors are really his sons. Duncan said the ad helps push the idea that MINI has a variety of vehicles that can work for a variety of consumers – even the “cool dad.’’
“There’s multiple models and multiple opportunities,’’ said Duncan. “Being able to communicate that tells people there’s more than one model, a MINI for everyone.’’
Mixed reviews
But a slew of recent reports from J.D. Power and Associates had mixed reviews for MINI. In February, J.D. Power’s most recent Vehicle Dependability Study, which looks at problems original owners have within the first 12 months of owning a vehicle, found MINI users experienced 193 problems per 100 vehicles, much greater than the industry average of 147 PP100.
Meanwhile, J.D. Power’s Initial Quality Study, which looks at the problems owners experience in the first 90 days of ownership, found MINI consumers experience 122 PP100, a little more than the industry average of 112.
However, MINI seems to make up for its problems with vehicle dependability and initial quality with high marks for customer satisfaction. MINI came in second (behind Buick) on J.D. Power’s Customer Service Index Study with a score of 834 out of 1,000. MINI also took the top spot on J.D. Power’s most recent Sales Satisfaction Index Study, with a score of 727 out of 1,000.
Duncan said these reports have prompted MINI to look at the problems users have experienced with the car’s design. For example, some users have complained that MINI’s controls are counter-intuitive, such as window controls located in the car’s center console.
“New models have adapted to have controls on the door,’’ said Duncan. “We’re listening to what customers have to say and how we can improve and implement those changes.’’
MINIs On Top
MINI’s fans are definitely passionate about their wheels. After his interview with Boston.com, Duncan headed to the MINIs “On Top’’ event in New Hampshire, an annual gathering of hundreds of MINI owners who drive their cars to the top of Mt. Washington.
Duncan joined hundreds of MINI owners for a trip up Mt. Washington in New Hampshire on June 20.
“We have a very passionate group of owners who love their cars and love to be with each other driving their cars at events,’’ said Duncan. “It’s a lot of fun to be around them.’’
“My hope for MINI is we continue to grow and I know we plan to do that with a more focused model lineup,’’ said Duncan. “Based on models we’ve been launching, I feel optimistic about that possibility.’’
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