BMW 2010 Annual Report Download - page 42

40
12 GROUP MANAGEMENT REPORT
12 A Review of the Financial Year
14 General Economic Environment
18 Review of Operations
41 BMW Group – Capital Market
Activities
44 Disclosures relevant for takeovers
and explanatory comments
47 Financial Analysis
47 Internal Management System
49 Earnings Performance
51 Financial Position
53 Net Assets Position
55 Subsequent Events Report
55 Value Added Statement
57 Key Performance Figures
58 Comments on BMW AG
62 Internal Control System and
explanatory comments
63 Risk Management
70 Outlook
premium products and premium services for individual
mobility. An additional, profitable line of business has
been created by offering innovative mobility services.
For many years we have successfully been providing car-
related services for BMW and MINI customers under the
name BMW ConnectedDrive. This range of services will
be significantly expanded in future. The strategy is in line
with our full-coverage approach, which includes
vehicle-
related and non-vehicle-related mobility services de-
signed
to cover the whole spectrum of premium mobility
services.
Expansion of distribution network
In order to meet the demands of the emerging markets,
we have expanded our distribution network in China and
the other BRIC markets. In total, some 100 new dealer-
ships have been opened in these markets. The worldwide
distribution network consists of around 3,100 BMW,
1,300 MINI and 80 Rolls-Royce dealerships.
Strengthening the sales organisation
More than 800 dealers in 14 markets had been individu-
ally trained up to the end of 2010 under the dealer quali-
fication programme started in 2009. The main objective
was to promote the sale of new cars. It was also a way
ofhelping to shore up the profitability of the dealership
network in difficult times. Based on the results achieved
as well as the highly positive response from the sales
organisation we have decided to expand the methodol-
ogy and contents of the programme to other sales areas.
This is seen as a long-term instrument to strengthen the
dealer organisation.
After-sales service as important success factor
After-sales service plays a key role in achieving customer
satisfaction. For the BMW Group and its worldwide
dealer network, the sale of BMW and MINI parts, acces-
sories and services represents an important factor in the
Group’s success. Sales generally performed very well in
this line of business, with the German and Chinese mar-
kets recording particularly dynamic growth during the
period under report.
The existing distribution network was expanded in 2010.
Ten additional metro delivery centres commenced oper-
ations
in various metropolitan areas around the world.
These centres enable the same-day multiple delivery of
original spare parts and accessories to the BMW and
MINI sales organisation. A total of 32 metro delivery
centres have now been established worldwide since
2008.
Rolls-Royce launches “21st Century Legends”
campaign
In October 2010 Rolls-Royce Motor Cars launched a
worldwide image campaign entitled “21st Century
Legends”. In a series of five films the campaign provides
anunusual insight into the world of the Rolls-Royce
brand.