Niche segmentation - a bullet-proof idea?

A classic example of niche segmentation here, combining the design of a product for customers who will be prepared to pay a premium price for meeting their special needs and wants…

The Guardian reports how Bentley, the well-known manufacturer of luxury vehicles, is contemplating a move into an even more specialist market segment - the market for armour-plated cars.

Bentley is already a niche manufacturer - it only makes around 4,000 vehicles a year and the vast majority (80%+) of those are exported to wealthy customers overseas. Bentley has enjoyed particularly strong growth in demand from customers in emerging markets like China, Russia and Latin America - locations in which demand for armour-plated cars is also growing!

It seems an obvious move for Bentley - a classic example of how value can be added during the design and manufacturing process. The additional costs of security features like armour-plating will be significant for each vehicle. However, imagine the perceived value added on behalf of the customer, provided the extra security and peace of mind proves effective.