Home > B2B e-commerce 2.0, Sales > Mazda wins CIO award for e-commerce site

Mazda wins CIO award for e-commerce site

February 6, 2010 Leave a comment Go to comments

Congratulations to Mazda NA Operations on winning the prestigious 2009 CIO 100 award for transforming business through innovation! Now, Car dealerships can deploy customized websites in 15 minutes!

Channel conflict is usually an issue for manufacturers as intermediaries like distributors, and resellers shield manufacturers from directly reaching end consumers. In automotive industry the dealers essentially represent the manufacturer brand and consumers typically experience the brand through dealers. While this model works well for initial purchase the consumer’s brand loyalty towards the manufacturer diminishes over time. For instance, how many of us insist on using OEM replacement parts on a 5-year old car? This means lost after-sales business for the manufacturer.

Mazda took an innovative approach to solve channel conflict by transforming their business model by providing individual dealers with a co-branded e-commerce site that sells OEM accessories to consumers. The solution allows Mazda to “touch” the end consumer directly while enabling dealers to leverage Mazda accessories catalog and IT infrastructure. It’s a win-win situation!

This B2B2C solution is built using IBM WebSphere Commerce platform that allows Mazda to host 100’s of individual sites for the dealers. The dealers use rich user interface to personalize their site by uploading their own logo and displaying advertisement banners. No site design or programming required on the dealer side. See this case study for further details.

Per CIO.com, “Mazda projects the tool will lead to a 35 percent increase in accessory sales.” This is a perfect example of B2B 2.0 concept where the manufacturer is able to increase top-line revenue with a new sales channel and build brand loyalty with the consumer –- all without upsetting the distribution channel.

So, how do you handle channel conflict in your business?

Note: The above posting is my own and don’t necessarily represent IBM’s or Mazda’s positions, strategies or opinions.

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Categories: B2B e-commerce 2.0, Sales Tags:

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