Product extension is one of the very well know methods to increase sales to target different consumer groups by offering differentiated products.
And the story is not very different for Bugatti Veyron. The automotive engineering excellence thanks to Mr.Piech is a living legend and nobody can deny it. But there are some interesting “limited edition” passion emerged in VW HQ. Every six months, Veyron is offering something limited, only five Veyrons, only for this market, only for that and so on. Of course, there are lots of people are ready to pay extra 250,000 € to Veyron’s normal price tag of 1,000,000 €.
Did you every think twice. Production and development of Veyron was very complicated and suffered serious problems to achieve 407 km/h and domesticate 1001 horses. As a result of this picture, every Veyron is -3,000,000 € for VW. Yes, average production cost of every Veyron is minus. Which is not very good in business terms. So what they did ? Emerging a new path in product extension and it works excellent :)