MBMC Case: AMG | Turning the most affluent prospects into loyal clients

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Awareness:
Potential customers first become aware of AMG as a high‑performance luxury brand. The focus is on emotional brand perception and desirability rather than concrete product details.

Consideration:
Customers actively engage with AMG, compare options, and validate whether the brand and product fit their performance expectations, lifestyle, and identity.

Purchase Decision:
The decisive moment where customers commit. In the luxury segment, this is not a transaction but an emotional experience. Personal treatment, exclusivity, and a feeling of uniqueness are critical.

Handover & Usage:
The delivery and first usage phase reinforces the purchase decision. A memorable handover and seamless early ownership experience confirm that the choice was right.

Retention:
Long‑term relationship building through community, exclusive events, and repeat interactions, turning satisfied owners into loyal ambassadors.

Overall logic:
All phases are interconnected, but the purchase decision phase is the key leverage point, as this is where strong product appeal must be converted into an emotional commitment to buy.

Profit logic: Profitability is assessed as:

Profit = Revenue – Variable Costs – Fixed Costs

Step 1: Calculate effective hub volume (Demand vs. Capacity)

Step 2: Compute contribution and profit per region

Step 3: Worldwide total return (profit) and Return on Sales (RoS)

Key insight:

Even though two regions are strongly positive, the global case is roughly break-even because Americas drags the portfolio down and Asia is slightly negative.

Asia shows a deficit of approximately €192k. With an effective hub volume of 228 vehicles, this corresponds to an additional required contribution of about €842 per vehicle (€192,000 / 228). A price increase of roughly €842 per vehicle — or an equivalent reduction in costs — would therefore be sufficient to bring the Asian hub to break‑even.

Now this is your time to shine. There is no single right or wrong answer at this stage. The objective is to assess how you synthesize insights, take a clear position, and communicate a recommendation to senior management. We encourage you to be creative and to bring in your own business judgement and personality.

A strong answer should address the following facets:

• Context & framing
  Briefly restate the business context and the objective of the assignment, and articulate your overall stance (e.g., whether and how AMG should proceed with Individualization Hubs).
• Clear top‑down conclusion
  Provide a concise, unambiguous recommendation that reflects a management‑level decision rather than a summary of analyses.
• Rationale based on insights
  Explain why you reached this conclusion, explicitly linking back to:
  • the customer journey analysis (especially the purchase‑decision phase),
  • the qualitative evaluation of the hub concept,
  • and the key findings from the quantitative profitability assessment.
• Supporting arguments
  Highlight the most important strategic and economic arguments that underpin your recommendation, focusing on value creation, brand impact, and financial sustainability.
• Risks and trade‑offs
  Acknowledge the main risks, uncertainties, or downsides associated with your recommendation and demonstrate awareness of potential trade‑offs.
• Way forward / next steps
  Outline what you would do next to validate or de‑risk the decision, such as pilots, KPIs, governance measures, or additional analyses.