E-COMMERCE STRATEGIES

E-commerce strategies

Task A

Introduction

Bayerische Motoren Werke AG or BMW is the world's premium motorcycles and passenger car manufacturer. However, company also offers financing services, leasing of the vehicle and insurance. Major markets of BMW are situated in America and Europe. BMW is having a huge distribution network worldwide. There are three brands under BMW Company which are Mini, Rolls-Royce, and BMW. There are around 1,400 Mini, 90 Rolls-Royce and 3,200 BMW dealerships worldwide. BMW is operating in 14 countries with around 25 product manufacturing sites. Company sells its products in around 140 countries worldwide with a sales network of 43 sales subsidiaries (BMW Group, 2013b).

Automobile division of BMW manufactures, develops and assembles it off-road and passenger vehicles. Spares and other accessories are also sold by BMW. Outside Germany BMW products are sold through independent importers and subsidiaries (BMW Group, 2013b).

BMW uses both business to consumer business model (B2C) and business to business model (B2B), B2C refers to the business model which directly deals with consumer, and B2B model is the business transaction with business (Morley & Parker, 2009, pp. 471). BMW mainly sells its products to consumer of the product directly. BMW's largest market is Germany, where company increased its revenue by 13.8% during Fiscal Year 2010. Overall BMW generates revenue from its four major categories: automobiles with 75.1% of total revenues of company, financial services contributed 22.8%, motorcycles segment with contribution of 2.1%, and other businesses with 0.001% of total revenues. Major markets of the BMW group which are located geographically are Germany, China, U.S, and the rest of the Europe (BMW Group, 2013b).

Company also sells its products to independent importers which further sell them to consumers.

Target market refers to the group of individual sharing more than one similar values and needs (Czinkota & Ronkainen, 2007, pp. 18) . BMW is focused on market based on quality product in terms of efficiency, performance, comfort, and design. BMW catered the need of customers, which majorly focus on performance and quality rather than price. Therefore, BMW is selling and manufacturing premium products for its target market. BMW's all brands are focused towards premium product offering.

BMW is present online in every area of the world. BMW has developed its websites based on a national basis. BMW has established a different website for investors, with company history based on milestones. Company financials and other information which are important for investors are present there. All divisions of BMW group having their different websites. All models are displayed along with their specification, pricing, picture gallery, performance and other features described in their site. On BMW national sites, specific models which are available in those regions are displayed. Also, concept models and other information related to the company are present at the website. There are information about dealers and used vehicles which are approved by BMW for sale.

Brand image of BMW

Brand image refers to the opinion of product as how brand is perceived by consumer and the company ...