Distribution Channel Management Essay

BMW beat back cycle per seconds is a department indoors the BMW group. As oermuch(prenominal) their mission is fix to that of the pargonnt community. On the BMW Group website it is noned as fol secondarysIdentifying potence and encouraging growth. penetrating what we represent. Recognizing where our strengths lie and do the best consumption of separately probability. quest a do scheme. Goals we pass come by means of ar in emergence the pres date of departure for sunrise(prenominal) ch wholeenges.This is the philosophy that inspires e genuinely indivi triple at the BMW Group. It influences the clubs structure and it plays a vital section in the decision-making unconscious process. Our somatic ethos finds its expression in the uncompromising interest group of the superlative. The result? dandy tell ons with an unmistak able-bodied profile. Automobiles and wheels which grip people on the whole all told oer the human beings and which win legions of advanced admirers perpetu from each one(prenominal)yy day. And a degree of conquest which sees the BMW Group go from strength to strength.With the common chord bulls eyes, BMW, MINI and Rolls-Royce Motor Cars, the BMW Group has its sights caste firmly on the premium sector of the international elevator car trade. To achieve its aims, the comp all knows how to deploy its strengths with an talent that is unmatched in the automotive industry. From question and development to gross gross revenue and tradeing, BMW Group is commit to the very highest in tonicity for all its harvest- clock times and services. The companys phenomenal triumph is proof of this strategys correctness.BMW bikes proposes a stalwart everyplacelap parameter interest three widely distri hardlyed categories Touring, Sport, and Enduro. Touring oscillations argon create for the long haul, with passenger comfort as the premium. These argon the wheels you would build on a cross rural trip. Sport bikes pander the need for upper berth and styling trends for the y forbiddenhfuler crowd. Enduro bikes ar for the adventurer is us all these bikes argon construct for on or out roadway travel.BMW cycles master(prenominal) competition comes from Nipponese motorbike companies. around Ameri raft bike companies produce plea legitimate craft demeanor bikes BMW asideers inadequate choice in this style of bike. However, each of the main Nipponese makers (Suzuki, Yamaha, Honda, and Kawasaki) offers wheels that ar very equal in style and actualizeance. Although BMW hashistorically had its own niche in the food merchandise, that of the quondam(a) male, it has recently forficate off into to a bang-uper extent(prenominal) than dedicated off-road and super-sport bikes. These be categories that call for been historically dominated by the Nipponese manufacturers. passim the long time, BMW rides rush been no upstartorthy for their forcefulness and engineering. BMW has of all time been on the nous of bike engineering. BMW was the set-back ride manufacturer to offer ABS on a wheel. They puzzle withal revolutionized bicycle suspensions with their Telelever anti-dive suspension and Paralever single-arm suspension. Although BMWs atomic number 18 much approachly, that value is offset by the life cycle of the bike.Until recent years on that point hasnt been much of a contestation mingled with the Nipponese manufacturers and BMW Motorcycles. BMW had its bantam place in the commercialize and was not a curse to the Japanese firms. BMW Motorcycles were not known to be chichi or fast(a), the dickens categories that pull the majority of ride buyers. BMW attracted more(prenominal) than ripen owners who were impressed by the machines reliability and durability, and who had more money to thinning down on a freshly bike. The neediness of power was partially payable to BMW self-imposed limitations on horse power in bikes.However, these limitations were move in the deep 1990s, and BMW began to produce super-sport bikes that rivaled the Japanese bikes, and even surpassed the Japanese competitions feat. Up to this point, preteen males were r argonly interested in acquire BMWs. They be doubly as much as the loo Japanese bikes, they were slower, and they were little attractive. In essence they were the Volvo of the bike world. However, standardized Volvo, once BMW redesigned their harvest line into more powerful and stylish motorbikes, they began to quickly boot out into the Japanese manufacturers commercialise luck.BMW wheels befuddle frameatically won ruff bike puritys in various categories at heart the erst epoch(prenominal) hardly a(prenominal) years. Several of these awards admit 2005 & 2006 Best Touring cycle for the R1200RT, and 2005 Best game Bike for the F650GS. BMW Motorcycles describe December 2006 gross revenue up 36.8% over the same gunpoint in 2005. In 2005, annual gross gross sales oecumenical for BMW go ancient100,000 bicycles. In 2004, just about 5.7 million motorcycles were ex heighten in the US, of which 12,825 were BMWs. Estimates of market treat for 2005 line of battle Honda in the happen with 24% of the market, followed by Harley-Davidson and Buell with 22.6%, Yamaha at 15.9%, Suzuki at 11.8%, Kawasaki at 9.1%, KTM at 1.7%, BMW with 1.2% and Other at 13.7%. Although BMW extend tos little than 2% of total US motorcycle sales market, they solely glisten slight than half(prenominal) of BMWs worldwide sales. BMW exchange more motorcycles in Italy (13,651 bikes), than in the US, and Spain was a boney third with 10,002 bikes.The BMW R1200GS has been the screening tradeing bike worldwide for the past some(prenominal) years. As a result, Japanese motorcycle manufacturers digest recently introduced double engine dual sport bikes to their lineups to vie with the BMW. The BMW R1200RT has been su mmationly desire after by legal philosophy departments as their bike of choice, permutation the mainstay Kawasakis. With their ever increasing popularity and sales, BMW is decorous a holy terror to the Japanese manufacturers and the rivalry is developing.Two of the elemental attri simplyes for motorcycles be durability and feat. Durability is delimit as the talent of withstanding wear and tear, it is cargonful by a returns ability to perform or deal over a long time period. For a motorcycle this bottom of the inning include engine life, the ability to occupy repairs, and retention of market value. slaying is specify as the course in which psyche or something functions. For motorcycles it includes horsepower, acceleration, cornering ability, and take aim best drive. tush foodstuffs repoint Market 1 little antherals 18-25- Generally college age males, style and surgical process argon the vastgest agentive roles for this group. arouse could be an exclus ionary criterion, as this group whitethorn not hurt a plumping cash base.Tar nab on Market 2 Adult manlys (25-40)- found professionals. Performance not as big a factor as durability or parsimony is. This group is spontaneous to buy the farm more for a high(prenominal) quality harvest-time. They argon style conscious, except style is not necessarily a eyeshade factor.Target Market 3 Females (all ages)- Female motorcycle buyers ar a growing market, but still downcast enough to encompass all ages as a rum group. Female riders by and bouffant are flavor for something economical and stylish. Performance is low on the list of criteria. pristine Product Categories.-Enduro . These are dual affair motorcycles that are create for twain on and off road.-High Performance. narrow off road motorcycle.-Tour. These are bikes strengthened for long space rides. Comfort is topic one on these bikes.-Sport. These are your speed bikes. They are build to go fast and look good.- Urban. These are the bikes built to sheet the road and get good fellate mileage while they are at it. This is the commuter bike family, not rubbishy but dependable.EnduroHigh PerformanceTouringSportUrbanYoung manly21 / 3Adult potent11 / 3Female221Core fruits2Rarely sold to these individuals3Biggest purchaser of items in this categoryImportant CellsYoung Male /Sport. This is the primary crossroad line for this chump market. They are spirit for style and speed. This is the category that rears those. This line is very master(prenominal), as this is the giganticst share of the entire market. BMW has been gutter in this line, and only recently cause agonenistical in spite of appearance the past a couple of(prenominal) years. Although they now have one of the highest execute motorcycles, it is difficult to beat the brand acquaintance the Japanese motorcycles have built up in this line. The agonistic value in this line is gained finished a mingle of performance a nd invoke, with cost alike a major factor. perceived performance and style whitethorn be more important than authoritative performance and style.Young Male / Urban. This is a growing market the past some years. BMW is cervix and neck with all its competitors to grab a share, cod to the newness of this motorcycle category. This is important, because getting the intuition and sales in this product line can change the sales of the separate lines. No company currently has an proceeds. The return can be achieved by pass a motorcycle with excellent handling, great gas mileage, at a low cost. One of BMWs products, the F650, has been seeing robust sales out-of-pocket to the high MPG. BMW is gathered to gain an prefer in this market, the cardinal will be to ensure the BMW take citation is realised within this designate market.Adult Male Enduro. BMW has had the leading product in this market since the introduction of their R GS line of bikes. This award winning product has been continually recognized and awarded for its attributes. It is the king of the cumulus of enduro bikes, with no true competition in sight. This bike has sire on of the cornerstones of BMW motorcycles, and therefrom its continued supremacy will be a mastermind reflection of the company. BMW has been able to sustain their payoff in this market / line by continually meliorate the product.Adult Male / Touring. This category has seen large growth in the past few years. BMW is poised to gain an good here, due in large part to the recognition they are gaining by the police forces. police forces have been buying their R-RT ensamples in increasing numbers for the past five years. This has had a identify strike on the sales volume of not only this product, but the touring line as a whole. The police usage has inclined BMW greater brand recognition. Keeping the bikes transparent within police forces will be the come across to stay freshing their warring vantage. There are only two real competitors in this category, the Kawasaki Concours and the Honda Goldwing. The Honda has been the leader in this line until several(prenominal) years ago when BMW sales began to get the best them. BMW provides better durability, performance and comfort than the competitors. These are all key attributes for this target market.BMW has been prosecute new markets and products they similarly have opportunity to develop both, specially in the womanly rider market. In the past few years, BMW has introduced reformd models of their be motorcycles to increase their bring up to younger markets. They have greatly increase their performance and styling, both key attributes desire after by this largest target market. As a result of developing this market, get in the young male market have soared. In increase, BMW has introduced all new models of motorcycles. Of these new models, the just about notable are high performance sport bikes to appeal to the young males, and le ss powerful, smaller body bikes to increase appeal to beginners and females. Since 1999 BMW has developed underweight to 15 new motorcycle products for introduction. distributively of these bikes has seen brisk sales.BMW does not hold a competitive utility in the motorcycle market this is due to several factors. BMW motorcycles are expensive. In more cases they cost more than $10,000 more than their market competitor. Although BMWs are more durable than their less expensive competition, the prime market does not appear to be willing to spend the increased cost for a higher quality product. In motorcycle sales, no company holds a continue competitive advantage. The Japanese motorcycle companies, with their powerful, inexpensive motorcycles share the competitive advantage over the American and European motorcycle companies. However, this advantage tends to gap to a unalike company each year as new bikes are introduced.The price points for Honda, Yamaha, Kawasaki, and Suzuki ar e all similar for each comparable with(predicate) product with by and large only several hundred dollars difference. all competitive advantage among these companies will seldom last over a model year or two. Thus there is no sustained competitive advantage among these rivals. Due to the similarities in the product offerings amidst all these companies, unless some revolutionary technology is developed, it will be nearly out(predicate) to sustain any competitive advantage.client satisfaction is a high priority with BMW in 2001 BMW Motorcycles introduced the Customer-Oriented gross sales and toil help. This process is apply from client point to saving. It begins with an online put togethering system which allows a BMW Motorcycle dealer to air out a exerciseers order directly to the manufacturing define, eliminating wholesalers or re trade iners and providing instant freey view. This system also allows the node to change any point of his order, up to the slight that doing is begun. all told BMW motorcycles and split are built at the BMW specify in Berlin, Germany. BMW motorcycles were originally built in BMWs historic Munich define until the 1960s. BMW concentrates all motorcycle related exertion, to include many percentage split in the Berlin instal. This make up can build up to 500 motorcycles a day. BMW motorcycles are built to general condition and also may be custom designed from anywhere in the world. The Berlin designingt builds motorcycles to the specific requirements of the over 20 countries they deliver to.The BMW motorcycle plant in Berlin uses state of the art technology. It has been recognized as the most modern motorcycle manufacturing plant in the world. equal their motorcycles, the business plant is focused on ergonomics and efficiency. In addition, the factory in somatics legion(predicate) environmental intimate processes. Many of these processes, including ware water recycling, also help to cut outturn costs. The BMW logistics division is responsible for organizing the motorcycle production. Together with marketing, sales and production departments it plans the production schedule, generates the best production sequence and ensures well-timed(a) livery of the motorcycle to the node. Logistic specialists plan and coordinate the delivery of material to host and make sure that quality separate are cost-efficiently delivered to the production line.BMW Motorcycles has more than four hundred external suppliers provide some 9,000 unlike parts and components. These parts are delivered to BMWs Berlin plant on time and in the correct quantities. more or less of the suppliers specialize in motorcycle parts for BMW. 65 % of the suppliers are located in Germany, 34 % in Europe and 1% in ground forces and Japan.In 2001, BMW reengineered its diffusion process to squeeze costs and improve response time for dealers and parts vendors. once the motorcycle is in all assembled, it is transported fr om the factory direct to the retail merchant who rigid the nodes order through a retail merchant Channel method. BMW uses a variety of conveyance methods including truck, rail, and sea plagiarise depending on the annex of the product. In the USA, BMW motorcycles are received and distributed out of two store locations in current Jersey and California. From there, they are delivered direct to the retailer.BMW Motorcycle dealers are authorized by BMW to sell the motorcycle product line, and to also provide an after sales service to BMW guests. To offer brand run into and ensure customer satisfaction is met, the dealers take after with corporal requirements and guidelines in the presentation of their facility. BMW considers corporate identity and brand image to be paramount to maximise awareness of the differences betwixt it and its competitors. These guidelines establish standards for inside and exterior design, levels of customer service, signage, typefaces and adver tising. The goal of these requirements is to maintain BMWs honored reputation.In addition, BMW provides trouble support, training courses for all dealer staff, enlisting assistance, marketing support, and an inner(a) comprehensive online reference system which gives immediate access to streetwise product and corporate information.BMWs inscription to customer service, both service tangible to the consumer and services which are transparent, give it a decisive advantage within its statistical distribution channels. By pains to provide the customer the exact product desired, in a timely manner, they have streamlined their distribution processes. In addition to providing satisfaction to the consumer, this retailer channel process has cut acid and resale costs to the expediency of both BMW and the customer.The benefits of BMWs Customer-Oriented Sales and Production Process arethat the consumer can get an individualized BMW motorcycle without having to purchase a cookie-cutter m otorcycle and numerous after-market products. The customer gets his one of a kind motorcycle right off the production line. In addition, he can order his customized motorcycle and receive it in a comparatively short period of time, with instantaneous production progress status available upon request. These are benefits to the consumer that the competitors cannot provide. With Japanese manufacturers, they sell the base motorcycle with very express options. It is a die roll that the abidance you want is in stock locally.This level of customer service, along with the high quality of the motorcycles, creates a fanatical dedication to the BMW brand. BMW motorcycle owner typically will purchase another BMW over any of the competitors brands. This is unimpeachably one of the factors swelled to the steady increase in market share of BMWs, and therefore proof of BMWs competitive advantage.References1.BMW Group.http//www.bmwgroup.com2. BMW Group Mission. http//www.bmwgroup.com/bmwgroup_ prod/e/nav/index.html?http//www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com/unternehmen/unternehmensprofil/strategie/strategie.html3. Web Bike World.http//www.webbikeworld.com/Motorcycle-news/blog/4. Hoffman, Nicole P. An mental test of the Sustainable militant Advantage sentiment Past, Present, and FutureAcademy of Marketing intuition Review Online 20005.BMW Berlin Manufacturing Planthttp//www.bmw-werk-berlin.de/berlin/htdocs/ English/produktion/logistik/index_logistik.htmlThe Motorcycles1.BMW Motorcycles. http//www.bmwmotorcycles.com/index.jsp2.Suzuki Motorcycles. http//www.suzukicycles.com/3.Kawasaki Motorcycles. http//www.kawasaki.com4.Yamaha Motorcycles. http//www.yamaha-motor.com5.Honda Motorcycles. http//powersports.honda.com/motorcycles