... The BMW customization program “Dream It.Build It.Drive It.” for X3 series compact SUV model had driven sales across North America. Joseph Wierda, BMW product manager was contemplating using the same marketing strategy to drive sales across all BMW product lines. He was particularly interested in using this customization strategy for flagship brand X5 and a new model X4 launching in 2015. The major marketing challenges to implement this customized program were as below: * Regional and Global Manufacturing Strategy: In North America compared to Europe, customers wanted immediate delivery. Purchase of a car was a major decision and that meant there was a high emotional value attached to the purchase. Customers wanted to experience thrill and excitement attached to car purchase. To solve the problem of immediate delivery for North America and to maintain customer interest during the sales process, BMW team made significant adjustments at the plant, in BMW’s supply chain and IT systems. For X3 series, they even shifted their assembly line from Austria to South Carolina to reduce delivery time across continents. BMW‘s plant in South Carolina manufactured six different models including X5 and X4. For other models which are not manufactured in North America immediate delivery in few weeks would be difficult to achieve. As models manufactured outside North America meant increased shipping time between continents. So, the concept of “Dream It.Build It.Drive It.” Mass cutomization...
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...Mass customization, in marketing, manufacturing, and management, is the use of flexible computer-aided manufacturing systems to produce custom output. Those systems combine the low unit costs of mass production processes with the flexibility of individual customization. The concept of mass customization is attributed to Stan Davis in Future Perfect[1] and was defined by Tseng and Jiao (2001, p. 685) as "producing goods and services to meet individual customer's needs with near mass production efficiency". Kaplan and Haenlein (2006, pp. 168–182) concurred, calling it "a strategy that creates value by some form of company-customer interaction at the fabrication / assembly stage of the operations level to create customized products with production cost and monetary price similar to those of mass-produced products". Just as mass production was crucial to manufacturing in the 20th century, mass customization (MC) will be the key to economic growth in the 21st century. MC is the ability to design and manufacture customized products tailored to meet a customers needs at mass production costs and speed (see Figure 1). While organizations continue to outsource for economical reasons, managing the interfaces between suppliers has become expensive and inefficient. By dispersing engineering and production geographically, manufacturers have increased the number of places their knowledge interfaces and multi-tier supply chains can breakdown. This amasses hidden costs, increases lead times...
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...Asia Pacific Journal of Marketing & Management Review__________________________________________ ISSN 2319-2836 Vol.2 (6), June (2013) Online available at indianresearchjournals.com FACTORS AFFECTING PURCHASE DECISION OF CARPENTERS FOR LAMINATES UMA SHANKAR SINGH*; SRITAM KUMAR PADHI** *PH.D. (FULL TIME RESEARCH SCHOLAR) INSTITUTE OF BUSINESS AND COMPUTER STUDIES SIKSHA „O‟ ANUSANDHAN UNIVERSITY BHUBANESWAR, ODISHA, INDIA **MBA INSTITUTE OF BUSINESS AND COMPUTER STUDIES SIKSHA „O‟ ANUSANDHAN UNIVERSITY BHUBANESWAR, ODISHA, INDIA _____________________________________________________________________________________ ABSTRACT The main reason to conduct this study is to find out the factors which compel or attract a carpenter to choose a laminate or veneer for his clients. This project report is revealing the state of mind of the carpenters with the changing environment. How the carpenters reacted with the change in customer preference and with the introduction of a large number of companies dealing with laminates and veneers. To know this a survey conducted using a structured questionnaire containing the items which helped in obtaining the desired information from the carpenters. Carpenters were approached targeted the capital city Bhubaneswar of Odisha state in India The aim and motive of carrying this project is to know about the brand awareness and consumer preference for laminates. The objective of this research is to find out the foremost factors...
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...customer order penetration point. From a research perspective, we classify the methods that are employed in the management of these chains, based on whether supply and/or demand are flexible or fixed. Interestingly, our taxonomy highlights a very critical research area at which both supply and demand are flexible, thus manageable. Simultaneous management of supply and demand chains sets the stage for mass customization which is concerned with meeting the needs of an individualized customer market. Simultaneous and real-time management of supply and demand chains set the stage for real-time mass customization (e.g., wherein a tailor first laser scans an individual’s upper torso and then delivers a uniquely fitted jacket within a reasonable period, while the individual is waiting). The benefits of real-time mass customization can not be over-stated as products and services become indistinguishable and are co-produced in real-time, resulting in an overwhelming economic advantage. Keywords: Value chain, supply chain, demand chain, taxonomy, real-time management, mass customization, information and decision technologies,...
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...Living in Dell Time 1. Identify and describe all the different types or forms of innovation exemplified in this article by explaining with data and facts from the case (10 points). First they are using a production innovation the just-in-time model. (It is a strategy for inventory management in which raw materials and components are delivered from the vendor or supplier immediately before they are needed in the manufacturing process.) Inventory has been a form of security but this kind of security is very expensive because computer parts are fast moving goods, and if your stock is full of these goods you will lose a lot of money. Kevin Rollins the CEO of Dell said, “inventory is like fish, the longer you keep it the faster it deteriorates.” Eleven years ago Dell carried 20 to 25 day of inventory in their warehouses and today they don’t have a warehouse. But if it fails, its manufacturing operations will crash within a matter of hours. But they also said that if you have your stock full of components, always you will have a lot of the wrong stuff and none of the right stuff. Many companies are not sure if it´s good of running so lean in an uncertain world, because you never safe for terrorist attacks or natural disasters. Another innovation is when they miss a forecast and they see they are running out of 15-inch flat screens they make for example a one week special of 17-inch screens in that time they sell it cheaper and so they lead the customer what they should buy...
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...| Lands’ End | Mass Customization | | | Introduction Lands’ End custom tailoring is an optional extra or choice provided to customers ordering predetermined apparel items over the internet or telephonically. Custom Tailoring is a tool designed to capture new customers and provide an additional option to existing customers. Lands’ End has maintained their focus on a traditional line of clothing, chinos, jeans and rugby shirts. Lands’ End sells products through a catalogue mailed to customers. The catalogue is the primary source of marketing. Established in 1963 Lands’ End initially sold sailing equipment but quickly branched off into clothing and home furnishings. Lands’ End sells casual apparel for women, men and children. The clothing line has remained traditional. Every American owns a pair of khakis and a pair of jeans. Styles have changed and Lands’ End has kept pace with those changes never straying too far from the traditional necessities that make up a basic wardrobe. Lands’ End built their company on a commitment to traditional quality products and customer value. In the early 80”s Lands’ End established a new standard for service. Orders were placed telephonically by customers. Lands’ End promised to answer customer calls within 1.5 rings. A customer with an order was promised a quick and easy transaction. Lands’ End commitment to service added to customer loyalty. Ecommerce Lands’ End recognized early the economics of the internet. Sales...
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...Effective Organizations was conducted with a consortium of 11 large companies: Citrix Systems Inc.; Electronic Arts Inc.; Gap Inc.; Lockheed Martin Corp.; Mattel Inc.; Rockwell Automation; Royal Bank of Canada; Sony Pictures Entertainment; Unilever; UPS Inc.; and The Walt Disney Co. Twenty to 30 HR professionals within each company participated in the consortium. We examined the trends of globalization, generational diversity, sustainability, social media, personal technology, mass customization, open innovation, big data and gamification. Beyond Tradition: Reach Out, Venture Out, Seek Out, Break Out Our findings suggest that human resources can make great progress by simply allocating more time, budget and expertise to the emerging trends that have the greatest potential effect on organizations. However, at a larger level, lasting change will require fundamentally rethinking how the HR profession and the HR function operate. This includes: Reaching out: By infusing talent from other disciplines such as marketing, finance, logistics and engineering, and bringing those disciplines to bear on HR issues such as the employment value proposition, options-based leadership development, optimized talent supply chains...
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...Question 1 Mass customization, using mass-production technology to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers provides a competitive advantage to organizations (Daft, 2010). Mass customization has three main capabilities, elicitation, process flexibility, and logistics to meet customer demands (Zipkin, 2001). Elicitation is the process of providing consumers the ability to communicate what they desire, whereas information is gathered and processed. Process flexibility is the ability of an organization to take the information and provide or produce the customized product or service requested by the consumer. Once the service or product is ready, the logistics is the collaboration of the organization’s processes to employ or deliver the product or service. Mass customization may also be used in service firms, whereas unlike a manufacturing organization, service organizations accomplish their primary purpose through the production and provision of services, such as education, health-care, transportation, banking, and hospitality (Daft, 2010). An example of a mass customization utilized by service firms are colleges that offer specialties degrees. Students attending college may have a specialty they would like to pursue when obtaining a degree. Degrees offered at a college may be generalized such as obtaining a MBA, or more specialized such as a MBA with a cognate in marketing, project management, accounting...
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...Journal of Media Economics, 23:143–164, 2010 Copyright © Taylor & Francis Group, LLC ISSN: 0899-7764 print/1532-7736 online DOI: 10.1080/08997764.2010.502514 Adoption of Mass-Customized Newspapers: An Augmented Technology Acceptance Perspective Johannes Putzke, Detlef Schoder, and Kai Fischbach Department of Information Systems and Information Management University of Cologne, Germany The authors propose an augmented version of the Technology Acceptance Model to examine the consumer acceptance of mass-customized (MC) newspapers. Model findings (n D 2,114) suggest that the customer’s willingness to invest effort for MC products is one of the main factors driving adoption. Furthermore, gender is found to moderate the relation between base category satisfaction (with the base category “newspaper”) and perceived usefulness of an individually printed daily newspaper. Mass Customization (MC) products are one of the emerging research trends in management (Arora et al., 2008). Although considerable research has been devoted to MC in supply chain management (e.g., Dean, Xue, & Tu, 2009), innovation management (e.g., Franke, Keinz, & Schreier, 2008; Kaplan & Haenlein, 2006), and marketing (e.g., Syam & Kumar, 2006), rather less attention has been paid to MC in media economics (e.g., Franke, Keinz, & Steger, 2009; Franke & Schreier, 2002; Ihlström & Palmer, 2002; Kaplan, Schoder, & Haenlein, 2007; Schoder, Sick, Putzke, & Kaplan, 2006). Hence, there remains a limited...
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...Overview The objective of this assignment is to go beyond theory to provide you with the necessary tools to use the marketing concepts presented during the week. After completing the assignment you would have applied the concepts and the metrics to specific situations. In particular, this assignment will give you an in-depth understanding of: • Market Share (Chapter # 3) • Value creation (Chapter # 4) • Market Segmentation (Chapter # 5) Rubric • Multiple choice questions that require students to show their work will receive 10 points for selecting the correct answer and (0 – 10) for showing the correct calculations, for a maximum total score of 20 points for each question. • Open ended question will receive (0- 20) points based on the clarity of the answer and the relevance of connections between the case study and the concepts covered in the course. Instructions 1. Read the mini-case. 2. Answer the multiple choice questions by selecting the correct answer. 3. Show all your work when requested. 4. Submit your assignment by the end of week 1. Case 1: The Prius Toyota recently introduced a hybrid automobile named Prius. Since its introduction, this offering has achieved a 1.2% market share in this market. Toyota has conducted research in an effort to assess its opportunity for market share development. The table below indicates consumers’ current response at each step along the share development path for Toyota’s Prius hybrid...
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...SCOPE OF STUDY6 MASS CUSTOMISATION7 INDUSTRIES PRACTICING MASS CUSTOMISATION9 CONCLUSION10 REFRENCES11 1. INTRODUCTION With growth in globalization opportunities, and shortening of product life cycles, firms are increasingly being challenged with requirements to proliferate product variety. In this attempt to meet the varied requirements of customers worldwide, mass customization has become an important requirement for many businesses. Provisioning of mass customisation, however, has its pitfalls. Forecasting gets complex, overhead for product support increases, inventory control becomes more difficult, manufacturing complexity upsurges, and after-sales support gets more challenging. Mass customization is a manufacturing process that combines the flexibility of customised product variety, along with the low cost leadership of economies of scale. 2. BACKGROUND OF STUDY To the problems thrown by mass customisation, many solutions exist. One solution that pioneering firms have utilised is the influence of product and process designing. This is rendered possible by incorporating design in their supply chain operations, to seek control over product variety expansion. Design has always been viewed as a central driver of manufacturing costs. As high as eighty percent of the manufacturing cost is decided by the design, or the process through which the product is to be developed. Therefore, design can be leveraged to solve the problem of mass customization (Martin M., W....
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...& SCOPE OF STUDY6 MASS CUSTOMISATION7 INDUSTRIES PRACTICING MASS CUSTOMISATION9 CONCLUSION10 REFRENCES11 1. INTRODUCTION With growth in globalization opportunities, and shortening of product life cycles, firms are increasingly being challenged with requirements to proliferate product variety. In this attempt to meet the varied requirements of customers worldwide, mass customization has become an important requirement for many businesses. Provisioning of mass customisation, however, has its pitfalls. Forecasting gets complex, overhead for product support increases, inventory control becomes more difficult, manufacturing complexity upsurges, and after-sales support gets more challenging. Mass customization is a manufacturing process that combines the flexibility of customised product variety, along with the low cost leadership of economies of scale. 2. BACKGROUND OF STUDY To the problems thrown by mass customisation, many solutions exist. One solution that pioneering firms have utilised is the influence of product and process designing. This is rendered possible by incorporating design in their supply chain operations, to seek control over product variety expansion. Design has always been viewed as a central driver of manufacturing costs. As high as eighty percent of the manufacturing cost is decided by the design, or the process through which the product is to be developed. Therefore, design can be leveraged to solve the problem of mass customization (Martin M., W. Hausman...
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...MAJOR ISSUES AND TRENDS IN OPERATIONS MANAGEMENT I. COMPUTER AIDED MANUFACTURING/COMPUTER AIDED DESIGN * It is the use of computer software to control machine tools and related machinery in the manufacturing of workpieces. * It also refers to the use of a computer to assist in all operations of a manufacturing plant, including planning, management, transportation and storage. * Its primary purpose is to create a faster production process and components and tooling with more precise dimensions and material consistency, which in some cases, uses only the required amount of raw material (thus minimizing waste), while simultaneously reducing energy consumption. * It is a subsequent computer-aided process after computer-aided design (CAD) and sometimes computer-aided engineering (CAE), as the model generated in CAD and verified in CAE can be input into CAM software, which then controls the machine tool CAD / Computer-Aided Design Computer-aided design (CAD) is the use of computer programs to create two- or three-dimensional (2D or 3D) graphical representations of physical objects. CAD software may be specialized for specific applications. CAD is widely used for computer animation and special effects in movies, advertising, and other applications where the graphic design itself is the finished product. CAD is also used to design physical products in a wide range of industries, where the software performs calculations for determining an optimum shape...
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...at all tomorrow. We have moved a long way from a business environment where the supplier held the power – say it for the ownership of resources, or technology and brands – to a situation where the customer, or even the consumer, is now in the driving seat of this era’s business environment. Where once it was a ‘seller’s market’, today it is a ‘buyer’s market’. At the same time, the prevailing marketing philosophy has changed from the idea of mass markets serviced by mass production to the idea of ‘markets-of-one’ serviced by mass customization. Even though this shift has been observable for some time, it has not reflected in such needy of thinking about supply chain design. The traditional supply chain business model which we knew from times was based around maximizing efficiencies, through the exploitation of the ‘economies of scale’. So, at that time, factories were designed to produce things in large volumes and to maximize the use of capacity. This business model worked well in the conditions for which it was designed, e.g. the production of standard products designed for mass markets. The problem now is that the context has changed. We have seen a move from the traditional supply chain to a supply chain where customer is the leader giving orders of the type of products or even the type of supply chain to be followed, and yet even...
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...consumer information and use it to gain exclusive access to finer consumer segments, even when the costs of customized marketing are exceedingly high. When such is the case, the opportunity arises for an intermediary to coarsen market access in order to protect consumer surplus and to bar firms from exercising price discrimination. This intermediary could be a mass retailer, a mass media or a diverse community. Formally, the paper analyzes the situation of an intermediary who owns a finer market access system, i.e., the capability to separately access two types of consumers who previously remained undistinguishable. The system could be made available to one firm in exclusivity, or to several firms (two instances of “exposure”), or to no firm at all (“privacy”). The best-bidding agent (from among firms, marginal-type consumers, and mainstream-type consumers) is buying the right to command the equilibrium access allocation. The solution involves either privacy (commanded by mainstream consumers) or exclusive exposure (commanded by a firm), depending intuitively on factors such as consumer involvement, homogeneity and adaptability, as well as the size of returns to scale in marketing and the extent of competition. Keywords: Segmentation, price discrimination, privacy, exposure, intermediary, involvement, homogeneity, adaptability, returns to scale, competition, marketing. JEL classification numbers: D0, D4,...
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