Distribution System

Páginas: 3 (552 palabras) Publicado: 18 de abril de 2012
PRACTICE 8: Distribution System

GROUP C
Emma Highman
Agnieszka Kras
Eva Gonzalez Fumero
Andreas Stadler
Joaquín Peiró-Camaró

Company : Engasa – licensed distributor of cars for BMW inValencia
The have two outlet stores Real Monasterio and San Onofre both in the outskirts of Valencia. It is a family owned business, which also operates for other car companies as a distributor (i.e.Citroen under the company Ugarte S.A.)

External determinants:

Customer characteristics:
They operate in an upscale market and distribute BMW exclusively in the Valencian Community. Typicalclients are middle aged persons with medium to high level of income and a flavour for prestigious, upper-class cars. Customers ask for a date and they are guided through the buying process, starting from atrial ride to the selection extras, vehicle configuration, financing methods to the final order.

Nature of the product:
It’s a high-price high-turnover, luxury and speciality product which isnormally bought only a few times in a life; it has to be transported by special equipment like a vehicle transporter or by special equipped trains. When cars roll out the factory a special type of waxto protect damage covers them, so special cleaning is necessary. In general there is less need for warehousing because cars get produced customized right after the order.

Nature of demand/location:In terms of PLC the car sector is in the maturity stage in a developed country and is likely to stay there.

Competition:
The main competitor in Valencia is Bertolín S.L. which offers the sameproducts and services. Besides that, there are outlets of BMW main competitors like Mercedes or Audi in the area. In the broad way of sense also the private used car market can be seen as competitionalthough the typical BMW customer prefers a car that just rolled out of the factory

Market coverage/Channel length:

BMW uses a narrow channel for distributing its products and services. This...
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