Page 1: Introduction
We identify with products in a variety of ways. At a simple level we may buy a coat in order to keep warm or a can of cola to drink. Consumer behaviour is a complex process and we all have complex motives for the things we do. There are probably types of coats we would not be prepared to wear or cans of cola we would not like to be seen drinking in public! A product is therefore not simply a way of keeping us warm or giving us something to drink, it is more than this. It does not meet a single need; the ownership and use of a product involves a whole range of factors which make up the product concept. At the heart of this is the process of branding.
A brand comprises a range of features which identify the products of an organisation. For example, a name, sign, term, symbol or other creative element. This case study focuses upon the rebirth of a much-loved brand with a unique British heritage - the MG.
The brand originated when Cecil Kimber became General Manager of the Morris Garages dealership in 1922. The business had been founded by William Morris before he became a car manufacturer and by this time was the Oxford outlet for Morris cars. Beginning with stylish coach built bodies on Morris chassis, he developed modifications for more sporting performance and handling. Probably without realising what a momentous decision he was taking, Kimber adopted the acronym ‘MG’ for his 1924 creations, which became known as ‘MG Supersports’ and making a shy appearance on these cars was a neat little octagonal motif incorporating those magic initials.
From 1925 a range of MG Super Sports models was offered and the sales success of the early MG cars was such that it became necessary to open a separate factory for their production. The MG Car Company came into being in 1930. The years before the war were classic ones with more than 30 different models available by 1939. Driving in the 1930s conjures up a stark contrast to the driving on the motorways of today. It creates images of narrow lanes surrounded by hedgerows, multi-directional signposts and a sense of exhilaration, combined with a feeling of new-found freedom supplied through engineering achievement.
Others identified with the virtues of owing something truly British and, after the war, MGs were sold overseas in large quantities, particularly in the USA. The MG Midget brought lowcost motoring for the MG enthusiast and continued in production until 1979. The MGB replaced the MGA in 1962 and was the mainstay of production until the end of 1980
Though MG versions of popular saloons such as the Metro, Maestro and Montego were produced during the 80s, they were not the affordable exhilarating sports cars of the past. To celebrate 30 years of the MGB a limited edition was launched in 1992.
Seventy years after Cecil Kimber had adopted the acronym ‘MG’ the brand had reached a low point in its existence. Its life had been distinct and memorable and, though it appeared to be dying, as we shall see, it was not yet dead!
Page 2: The UK market
During the 1970s, the sports car market was dominated by product offerings from MG and Triumph. As these classic cars were progressively withdrawn, this led to a sharp contraction in this sector.
The UK market was badly affected by recession, with the volume of cars reducing dramatically from 2.3 million in 1989 to 1.57 million in 1992. Today the market for cars is divided into segments providing different types of vehicles, which satisfy the needs of different types of customers. An understanding of market segmentation and the different parts of a market enables an organisation to identify market opportunities.
Across Europe, over this period, the Coupe, Hot Hatch and Sports Car markets had all shown tremendous growth and the successive launches of new vehicles such as the Mazda MX-5, Toyota MR2 and Honda CRX in the Sports Car segment had stimulated expansion of the sector. As these models had shown, there were clear opportunities for new sports cars with the impact of expanding the sector for open-top motoring.
The Rover Group has always held a desire to re-enter the true sports car market. The priority during the 1980s was to replace its mainstream product range and a programme to build a new sports car was just not possible. In 1989 research identified growth of the sports car market and investigations were begun.
In early 1991, the Rover Group Executive Committee gave approval to the concept. Shortly afterwards styling properties were researched amongst owners and potential owners of sports cars and at the same time the information was updated upon the value of the MG Marque. By the end of 1992, the research and engineering feasibility work had reached a stage where the project could now be recommended to the Rover Group Board for approval. Approval was granted and a team of experts assembled to bring MG back to life.
Marque values
The MG brand had always represented a window of opportunity. In the eyes of the motoring consumer, MG was a marque in suspension waiting to be redefined. Although other sports cars had been praised by the press, they did not carry the MG badge, symbolising a niche which traditionally belonged to British manufacturers.
From the beginning it was realised that the market had become much more discerning than in the previous years of MG and consumers’ expectations of quality, refinement and comfort had risen. It was important to emphasise modern design and technology and by taking these forward, build upon the past in order to create modern virtues.
The introduction of the MGF enabled Rover to revitalise the MG Marque in its purest form with AN AFFORDABLE TWO SEATER SPORTS CAR. When potential customers were asked to define the MG of the future, they felt that the opportunity did exist to have the leading sports car brand. They referred to classic British Heritage and the emotional appeal of MG. New MGs should be modern in DESIGN AND TECHNOLOGY and must be affordable both in terms of purchase price and running costs.
Rover Marque Values are developed and communicated throughout the Group. However, as with Land Rover products, customers differ from those of Rover Cars, so Marque Values for MG needed to be addressed separately. Following a process of research five Marque Values were developed:
• FUN ‘To drive an MGF is to experience the ultimate. It’s the time of your life and the pinnacle of your desire. It’s the most FUN you’ve ever had and it’s legal. Revel in rejecting the norm. Feel your heart beating faster.’
• ROMANCE ‘The ROMANCE, the desire. Memories of affection, of warmth, of respect. Remember the look, revel in the heritage and the beauty of line.’
• AGILITY ‘The AGILITY of the MGF is simply breathtaking. Taking the corners as if born to them, its lightweight handling and eager power are the mark of pure excellence.’
• OPENNESS ‘With its classless, straightforward appeal, the MGF personifies integrity. Approachable and honest, its OPENNESS cuts straight to the heart. With the wind in your hair you have found the reality.’
• AUDACITY ‘Be proud. Taste the adventure and assert yourself though the confidence and AUDACITY that is the MGF. Be part of the ‘wow’ factor, dare to be bold, dare to find the real you.’
Page 3: Brand strategy
The development of the MGF provided the opportunity for Rover Group to re-enter an exciting sector of the market, where it had not been represented for many years. Branding is, in itself, a form of product differentiation, which communicates quickly and effectively to consumers a great deal of information about a product.
From the early stages it was realised that the MG branding was a mixed blessing. On the one hand it provided many public relations opportunities, but the downside was that it might encourage people to look to the past rather than to the future. It was vital that the branding process was forward looking and concentrated as much on the product as it did on the MG marque.
Given the nature of the product it was recognised that dealer marketing of the new MG required a special approach. For the product to be successful it required special handling by a strategically positioned selective and enthusiastic network which could seek out new customers and deal thoroughly with their requirements. It was planned that all launches, including that in Japan, would be undertaken within a 6 month window when exposure to the brand was at a peak.