a group presentation: 09ep09ep

8/14/2019 A Group Presentation: 09EP09EP

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:A Group presentation

-SAMEER BHATIA 09EP036

SMITA NAHATA-09EP 047

-VIVEK MOHAN 09EP054


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Theme of the case BMW the company

Business Environment Mass Customization as a concept

( . .)Mass Customization at BMW I C. .Relaunch of I C program

Recommendations


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Individual Collection program at( . .)BMW I C

.Corporate measures Retailers


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BMW Canada .Established in 1986 Canada operations divided into three

regions

North American Automotiveindustry

Competition from foreign manufacturers WTO


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Mass customization refers to production of personalized or custom tailored

goods or services to meet consumer's

diverse and changing needs at near mass

.production prices

-It is a customer co design process which meet the needs of each individual

customer with regard to certain product features .


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:iddle Ages Craft Product ion

18 th :entury Mass Production Industrial Revolution Production in large Volumes Required Low variety and Standard products Economies of Scales

- :

970 80 Customizat ion Increasing Competition Need for Competitive Advantage Emphasis on variety led to customization

- :980 90 Mass Customizat ion Information Revolution and Globalization No distinct difference between competing rivals

Prices slashed down by Japanese manufactures due to LeanManufacturing Differentiation all the more important Tailor Made Products Economies of Scope


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)1 ,customization relates to changing assembling or modifying product or service components

.according to customers' needs and desires

)2)3 Personalization involves intense communication and

.interaction between the customer and supplier

)4)5 Personalization in general is about selecting or

filtering information objects for an individual by using information from the customer profile and then negotiating the selection with the

.individual

)6)7 - -Customization compares to co design and co creation whereas personalization compares strongly to


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The Four Faces of Mass Customization

. :1 Collaborative Customization Consumer and producer engage in a dialogue

.to determine customer requirements

. . , ,E g Computers clothing and footwear,furniture some services

. :2 Adaptive Customization Product is designed so that users can alter

it themselves to fit unique requirements on.different occasions

. . - , ,E g High end office chairs R7 golf club certain electronic devices


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. :3 Cosmetic Customization .Product is unique in appearance only

. . -E g Customer s chosen text or image on T, , , .shirts mouse mats baseball caps mugs

. :4 Transparent Customization Producer provides customized product without consumer being necessarily being

.aware that it has been customizedCan be used when consumer s needs are

,predictable or can be easily deduced and when customers do not want their

.requirements repeated. . ,E g Repeat orders for customized clothingchemicals


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Integrated Information System Flexible Manufacturing System

( - - )Build To Order

Sophisticated Order Management Mass Customization Mentality of.each Employee


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Advantage to company

v Less Inventory parked with.dealer

v .Customer Satisfactionv .Huge sales

Advantage to customers

v .Cars as per their requirementv .Satisfying ego


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Time taken for an order to.process

.Integrated customer preference Intensive focus on Supply Chain

.Mgmt.Changing customer needs

.Dependence on the suppliers .Different scheduling program.Having a proper assembly line


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.Individual Collection programq Exteriorq Interiorq Combination

- .CRM at BMW Build Your Own Car

`


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.First time Offer in the Market&Strong Internal retail support

.at Launch Separate Product planning

.department: -Segmentation Top end variants

.only


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.Stringent retailer requirements.No Incentives for retailers

Huge investments in setting up

.company owned showrooms Lackadaisical approach of the.management

.Absence of training of retailers

Appeal to only very select portion.of customer base


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Why? Brand Building benefits Exclusivity Competitive advantage against rivals

How? Participation of company in collaboration with.retailers

.Emphasis on training of employees .Incentive scheme for retailers . .Monitoring retailer s focus on I C Device a marketing communication plan to build.excitement


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.Open Innovation technique.Customer integration

Use of CRM &to target customers move him upward in customer.pyramid

BMW relationship managers at.retail outlets

Relaxing the terms of agreement.with retailers


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