Motorcycles Developing a Strategy for Distribution Channel Essay Example

older male, It has recently branched off Into more dedicated off- road and super-sport bikes. These are categories that have been historically nominated by the Japanese manufacturers. Throughout the years, BMW motorcycles have been renowned for their durability and engineering. BMW has always been on the forefront of motorcycle engineering. BMW was the first motorcycle manufacturer to offer ABS on a motorcycle. They have also Parallel single-arm suspension. Although BMW are more costly, that price is offset by the life cycle of the motorcycle.

Until recent years there hasn't been much of a rivalry between the Japanese manufacturers and BMW Motorcycles. BMW had its small place in the market and was not a threat to the Japanese firms. BMW Motorcycles were not known to be stylish or fast, the two categories that attract the majority of motorcycle buyers. BMW attracted more mature owners who were impressed by the machine's reliability and durability, and who had more money to spend on a new bike. The lack of power was partly due to BMW self-imposed limitations on horsepower in motorcycles.

However, these limitations were lifted in the late asses, and BMW began to produce super- sport bikes that rivaled the Japanese bikes, and even surpassed the Japanese competitor's performance. Up to this point, young males were rarely interested in archiving BMW. They cost twice as much as the closet Japanese bikes, they were slower, and they were less attractive. In essence they were the Volvo of the motorcycle world. However, like Volvo, once BMW redesigned their product line into more powerful and stylish motorcycles, they began to quickly cut into the Japanese manufacturers' market share.

BMW motorcycles

have consistently won "Best Bike" awards in various categories within the past few years. Several of these awards include "2005 & 2006 Best Touring Bike" for the RI ART, and "2005 Best Adventure Bike" for the FESSES. BMW Motorcycles reported December 2006 sales up 36. 8% over the same period in 2005. In 2005, annual sales worldwide for BMW topped 100,000 motorcycles. In 2004, approximately 5. 7 million motorcycles were sold in the US, of which 12,825 were BMW. Estimates of market share for 2005 show Honda in the lead with 24% of the market, followed by Harley-Davidson and Bubble with 22. %, Yamaha at 15. 9%, Suzuki at 11. 8%, Sukiyaki at 9. 1%, KIT at 1. 7%, BMW with 1. 2% and "Other" at 13. 7%. Although BMW gains less than 2% of total US motorcycle sales market, they only reflect less than half of Bum's worldwide sales. BMW sold more motorcycles in Italy (13,651 bikes), than in the US, and Spain was a close third with 10,002 bikes. The BMW RI ASSES has been the top selling bike worldwide for the past several years. As a result, Japanese motorcycle manufacturers have recently introduced large engine dual sport bikes to their lineups to compete with the BMW.

The BMW RI ART has been increasingly sought after by police departments as their bike of choice, replacing the mainstay Sukiyaki. With their ever increasing popularity and sales, BMW is becoming a threat to the Japanese manufacturers and the rivalry is growing. Two of the primary attributes for motorcycles are durability and performance. Durability is defined as the capability of withstanding wear and tear, it is

measured by a products ability to perform or compete over a long period. For a motorcycle this can include engine life, the ability to conduct repairs, and retention of market value.

Performance is defined as the way in which someone or something functions. For speed. Target Marketable Market 1 : Young Males 18-25- Generally college age males, style and performance are the biggest factors for this group. Cost could be an exclusionary retention, as this group may not have a large cash base. Target Market 2: Adult Males (25-40)- Established professionals. Performance not as big a factor as durability or economy is. This group is willing to spend more for a higher quality product. They are style conscious, but style is not necessarily a prime factor.

Target Market 3: Females (all ages)- Female motorcycle buyers are a growing market, but still small enough to treat all ages as a singular group. Female riders generally are looking for something economical and stylish. Performance is low on the list of criteria. Primary Product Categories. Endure . These are dual purpose motorcycles that are built for both on and off road. -High Performance. Specialized off road motorcycle. -Tour. These are bikes built for long distance rides. Comfort is number one on these bikes. -Sport. These are your speed bikes. They are built to go fast and look good. Urban. These are the bikes built to cruise the road and get good gas mileage while they are at it. This is the commuter bike category, not flashy but dependable. Undergoing PerformanceTouringSportUrbanYoung Male / adult Male / females Core productively sold to these individualistically purchaser of teems in this extemporaneously

Cells:Young Male [Sport. This is the primary product line for this target market. They are looking for style and speed. This is the category that provides those. This line is very important, as this is the largest share of the entire market.

BMW has been behind in this line, and only recently become competitive within the past few years. Although they now have one of the highest performing motorcycles, it is difficult to overcome the brand recognition the Japanese motorcycles have built up in this line. The competitive advantage in this line is aimed through a mix of performance and appeal, with cost also a major factor. Perceived performance and style may be more important than true performance and style. Young Male / Urban. This is a growing market the past few years. BMW is neck and category.

This is important, because getting the recognition and sales in this product line can affect the sales of the other lines. No company currently has an advantage. The advantage can be achieved by offering a motorcycle with excellent handling, great gas mileage, at a low cost. One of Bum's products, the PUFF, has been seeing robust sales due to the high MUG. BMW is poised to gain an advantage in this market, the key will be to ensure the BMW name recognition is realized within this target market. Adult Male Endure. BMW has had the leading product in this market since the introduction of their R - GAS line of bikes.

This award winning product has been continually recognized and awarded for its attributes. It is the king of the hill of endure bikes, with no true

competition in sight. This bike has become on of the cornerstones of BMW motorcycles, and thus its continued success will be a direct reflection of the company. BMW has been able to sustain their advantage in this racket / line by continually improving the product. Adult Male / Touring. This category has seen large growth in the past few years. BMW is poised to gain an advantage here, due in large part to the recognition they are gaining by the police forces.

Police forces have been buying their R-ART models in increasing numbers for the past five years. This has had a direct impact on the sales volume of not only this product, but the touring line as a whole. The police usage has given BMW greater brand recognition. Keeping the bikes visible within police forces will be the key to maintaining their competitive advantage. There are only two real competitors in this category, the Sukiyaki Concurs and the Honda Glowing. The Honda has been the leader in this line until several years ago when BMW sales began to overtake them.

BMW provides better durability, performance and comfort than the competitors. These are all key attributes for this target market. BMW has been pursuing new markets and products; they also have opportunity to develop both, especially in the female rider market. In the past few years, BMW has introduced improved models of their existing motorcycles to increase their appeal to monger markets. They have greatly increased their performance and styling, both key attributes sought after by this largest target market. As a result of developing this market, profits in the young male market have soared.