Entering the Growing Small Premium Utility Segment
Volvo expands the market coverage of the popular XC-Range of vehicles with the introduction of the new 2010 XC60. Expected to attract new customers to the Volvo brand as well as retaining current customers who are fans of Volvo's previous XC vehicles, the XC60 competes in the Small Premium Utility segment, a relatively fast-growing segment of the U.S. automotive market.
The sales target for the new XC60 is 50,000 units per year. Distribution between Europe and North America is uniform at about 30 percent each. The remaining 40 percent is destined for other global markets. The five largest markets during the introductory year are expected to be the U.S., Germany, Great Britain, Russia and China.
The Volvo XC60 is built at the Volvo Cars factory in Ghent, Belgium. Sales in Europe began during the fall of 2008 with sales in North America to begin in March, 2009.
Targeting Tech-Savvy Customers
The XC60 targets a group of customers who impose high demands on design, brand integrity and high-tech content in their choice of lifestyle products. One might say that it's all about consumers who've grown up with the microchip as a natural supplement to their breakfast cereal. They're used to the immensely fast pace of development in the world of electronics and every succeeding birthday has brought with it increased capacity in ever-shrinking packages.
With this in mind, XC60s bound for the U.S. will include numerous high-tech features as standard equipment. Beneath the center console armrest resides a USB port for flash drives and MP3 players and an AUX connection port that will accept a wide variety of portable music players. Additionally, the XC60 comes standard with SIRIUS satellite radio preparation (including a complimentary 6-month subscription) and HD Radio technology.
When it comes to the choice of a car, these consumers adopt the same view as they do for other lifecycle products - all of its properties should be integrated into one single attractive and intelligent package. One might say that this could be the C30 owner's next car. It's sporty and exciting, yet more capable. This is a car for the person who lives in the city and for the young family taking the kids for a weekend of fun and adventure.
Aiming at lifestyle rather than age, the XC60 broadens Volvo's model range to attract even more customers with an active urban lifestyle. Like the C30, the XC60 plays an import role in Volvo's planned volume expansion strategy.
