Analsis Of Kate Chopin

Market

"Starting at under thirty thousand pounds, the new BMW X3 is set to continue the X success story. Demand is phenomenal, it is tempting more women and a younger audience towards the BMW brand, residuals are expected to be market-leading and it is unrivalled in its abilities."

The launch of the X3 sees BMW continuing its drive to supply premium vehicles in all market segments where customers desire high quality products. At the same time, BMW expands its X range of Sports Activity Vehicles - cars that offer an unrivalled balance of fine on-road dynamics matched by impressive all-terrain ability.

The launch of the X3 could not have been timed better - BMW predicts a worldwide sales increase of 50 per cent in the SUV/SAV market over the next ten years. Purchasing an X3 should be a sound financial decision, with CAP and Glass's Guide predicting typically high residuals for a BMW.

According to CAP's March 2004 figures, the X3 immediately goes to the head of the SUV/SAV pack for its 3 years/60,000 miles value. The X3 2.5i SE will retain 54 per cent of its on-the-road price of Ј28,715, an impressive figure when compared to the residual values of potential petrol competitors such as the Land Rover Freelander 2.5i V6 SE (37%) and the Lexus RX300 SE (47%).

Glass's Guide is expecting a similarly strong performance, predicting that the X3 3.0i SE will retain 52 per cent of its value over 3 years or 60,000 miles.

Strong residual values and the X3's relative rarity will make it an important car for user choosers in the fleet market. Retail sales are expected to dominate however, with a 70 per cent bias towards the private purchaser. More than 40 per cent of X3s are expected to be owned by women, an increase over the X5 which shows 20 per cent female ownership.

"The X3 offers the BMW dealer network the opportunity to achieve a high level of conquest activity and to welcome new customers to the BMW brand. All reports indicate that our dealers have taken on that challenge successfully, proving that the X3 fills a niche in BMW's product line-up."

First indications are that the X3 appeals to many non-BMW owners with BMW dealers reporting major interest from owners of competitor SUVs, 4x4s and estates, including the Land Rover Freelander, Lexus RX300 and a number of owners looking to trade up from less expensive SUVs such as Honda's CR-V and Toyota's RAV4. The styling, combined on- and off-road ability and renowned BMW quality are cited as major factors in many of the orders taken from non-BMW owners.

Market

The BMW X3 provides a unique offering