Table of Contents
Background and Forecast
The BMW Individual Collection program has experienced a decline in sales volume. There appears to be a lack of commitment from BMW’s retailers and structural issues surrounding the corporate involvement of the program. Jeremy Shaver, the production planning manager believes that the BMW Individual Collection program has high potential and with an appropriate strategic marketing plan, the program brand building benefits is enormous. It is critical to identify and develop a niche market segment to reinvigorate the IC program. Background and forecast
The BMW Individual program was launched in Canada in September 2002, which targeted consumers whose purchase preference was product uniqueness. The program was successful at the beginning. However the sales have dropped since 2004 due to lack of support from the corporate level down to the retailers level. Jeremy Shaver is considering reviving BMW’s individual collection program. He is confident that the IC program will be a promising plan if it drives to an appropriate segment market with full collaboration among corporate, retailers and competent product planner. Segmentation Analysis
The BMW individual collection program was tailored for those who wished to customize a vehicle to reflect their prestige and status in society. The price range for a BMW is between $36,000 and $130,000. BMW offers premium vehicle to high income consumers who look for purchasing luxury items. According to it, we have identified four market segments that prefer BMW IC program: 1) Young Single Wealthy
This segment consists of men and a few women in ages 25-34 with high earning (annual disposal income would be $60,000-$80,000). The vehicle model is an entry level luxury, stylish, sporty, convertible/coupe and fuel efficiency. The method of acquiring product knowledge...
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