Short Description: Occur 2011, this case describes how BMW, the primary luxury car manufacturer in the U. H., successfully executed a new advertising initiative based on its on-line video solutions and more sales of customized vehicles. The truth addresses the challenges of catering to the North American buyer, where most car buyers want or have become conditioned towards immediate gratification with their purchases.
Key Learning Aims:
To underscore the importance of consumer habit in tactical planning To demonstrate the difficulty of smartly managing the supply chain for a modern developing company and the implications effects of ‘mass customization’ on source (value) string
Preparation & Analysis
Pertaining to Wednesday’s school (10/9/13):
1 . Go online, analysis and remove a few records on a proper marketing principle called “mass customization to get in-class debate. The process of providing wide-market services and goods that are revised to satisfy a specific customer want. Is a advertising manufacturing strategy that combines the flexibility and personalization of custom-made together with the low product cost associated with mass production Sometimes named made-to-order or built to purchase.
Enabling a client to decide the precise specification of any product or service, and still have that services or products supplied to them for a price close to that to get an ordinary produced in higher quantities alternative.
installment payments on your Read the example.
3. Assessment the following video tutorials which directly pertain towards the case
Martha Stewart customizes a BMW X3 http://www.youtube.com/watch?v=8Ddq6O_QAz0
Understanding Robots ” Mass Personalization http://www.youtube.com/watch?v=HJzzPXeDdX8 THE CAR X3 Ad http://www.youtube.com/watch?v=KpLutmBkyZ4
BMW X3 Build Video http://www.youtube.com/watch?v=VH1gtBYNPOA
Individual Task: After spending period researching the concept of mass personalization, viewing these videos, and reading the case answerand provide your reason for each with the following queries in an overall1-2 page brief essay structure.
1 . Let’s assume that most modern cars share much the same characteristics, what do customers really buy ” a product or an experience? Inside your opinion, what drives car-buying decisions? Years after years, the user’s perceptions to cars has become changing. Persons value more on their requirements these days than their would like. People began looking for products/vehicles that give more value to them; they want automobiles for true use designed for showing off. I think customers purchases products with experience from which they will get worth out of it.
The car buying decision is not an easy activity and will drive various aspects before buying. In my opinion the most important factor can be gender. In many instances gender performs a vital role in buying a car. Value can be another important factor that may drive the buying decision. Fuel effectiveness, affordable, reliable, effective and efficient happen to be various elements for car buying decisions.
2 . Do you consider customers require “millions of combinations for their car? Will they be happy with readily available standard alternatives? What are the upsides and drawbacks of mass customization via both the consumer and manufacturer’s perspective?
It depends on the customer needs that if that they really need “millions of combinations for their car or not. Most of the consumers are happy with all the standard alternatives but if we dig tiny deeper, not every the features availablein the standard versions are important or perhaps useful for a particular customer and what they want is probably not in the particular model. For me, that is the main reason mass modification is being employed by various car companies to carter the specific needs with their customers.
Mass customization is a process of providing products that are modified to meet a specific customer needs. This enables a customer to choose the exact specification of a product or companies. Mass modification allowed suppliers to modify products at lower costs, decreased overheads, and produced bigger margins. Can be, they obtain benefited of actually finding exactly what that they wanted without having to pay a premium cost. The downside of mass personalization from manufacturer’s perspectives are the major detailed challenges faced in supply chain to manage the supply, keep lead some maintain some part and items within a hardly any timeframe. Drawback of mass customization in the customer’s views is they will not be able to compare the product with all the competitors and sometime the purchase price might be large with particular customizations. With assorted choices and lack of experience some consumers might decided to go with unwanted and unnecessary parts for the item.
3. Put yourself in Josef Weirda’s shoes. What would your decision be concerning using online video streaming technology for additional models like the X5 or perhaps X1? In essence, would you apply a similar “Dream It. Build It. Travel It. program pertaining to the release of the X4 in 2014? What is the basis for your decision?
“Dream It. Build That. Drive It. was a success intended for X3 models. My decision for loading technology intended for other versions will be certainly. This is because from the success factors the X3 models received, and almost 50% of the consumers enrolled in this, accessed and shared the video. I think this can be a better value can be to see how their personalized vehicle has been manufactured and be even more in touch with this before this actually gets delivered.
Based upon the success result and the stats readily available from X3, I will apply a similar “Dream It. Build It. Travel It. program to get the kick off of the X4 anddo hostile marketing enjoy it was done for X3. But will not merely stick with this mass personalization, I will also encourage pertaining to the standard versions at the traders. Customization could be one of the features for those consumers who want to personalize their cars. I think together with the success with the X3, the customer will try to view some kind of related features in the new release and also this gives more value for the vehicle. Based on the numbers and information from the case, for now the mass modification concept must be based on US market just.
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