MM-4 - Still orders have not ebbed with the economic downturn In fact Vanilla could ramp up production significantly and still sell everything it

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Concepts of Marketing Name: JOMC 475 MM-4 (Chapter 6) Portland-based Vanilla Bicycles sells hand-built bikes with price tags ranging from $4,000 to $12,000. Now, after only nine years in business, owner Sacha White has stopped taking orders – not because business has dried up but because he has a five-year waiting list. White and his crew of three make only 40 to 50 bikes a year. Frames are made from exotic metals, are welded with silver alloy, and weigh as little as 30 ounces. No two Vanilla bikes are the same. Each is custom fitted to the client and features intricate metal carvings and an artisan paint job. Amazingly, almost all of these high-end velocipedes are sold to middle-class customers.
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Unformatted text preview: Still, orders have not ebbed with the economic downturn. In fact, Vanilla could ramp up production significantly and still sell everything it makes. However, White claims that would compromise the special nature of what customers consider to be works of art. Vanilla bikes are so special that when Portland bike couriers describe something as cool, they routinely say, “That’s sooo Vanilla.” 1. Based on the segmentation variables discussed in the chapter, construct a profile for Vanilla Bicycle’s probably target market. 2. Given that most luxury products suffer in an economic downturn, why has Vanilla still succeeded?...
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This note was uploaded on 01/18/2012 for the course JOMC 475 taught by Professor Heidihennink-kaminski during the Spring '11 term at UNC.

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