MERC-BENZ

Engineered like no other car in the world

Daimler and Chrysler companies

“A pioneering spirit and power of innovation for sustainable mobility. As the inventors of the automobile, we are equally committed to protection of the climate and the environment and to the safety of our vehicles and accident prevention. Our customers - and all other road users - throughout the world can put their trust in this commitment.”

VIZION

To be the Number 1 in Quality, Image and Profitability in the Automotive Sector in India

MISSION

To delight our customers in everything we are doing & Rejecting compromise

Considering every detail.

To continually improve the quality of our products and services.

To be environmentally sustainable

To have a professional relationship with our business partners.

SWOT

Strength

High brand equity as one of the finest and strongest brands. Drive-train technologies, interior features, and safety systems. Exceptional service quality, An industry landmark. Mercedes Benz is one of the most popular brand names in the world.

Weakness

Mercedes Benz is an expensive car, thus has a limited target group. High maintenance cost and less mileage. Very expensive spare parts.

Opportunities

Developing hybrid cars and fuel efficient cars for the future. Tapping emerging market across the world and building a global brand. Fast growing luxury automobile market and increased income.

Threats

Intense competition. Increasing fuel prices. Improvement in public transport

CRM

80% of customers were attended within 10 minutes by the workshop staff on their arrival to workshop.

64% of dealer workshops are opened on Sunday for customer’s convenience and 75% of Benz customers are expecting similar facilities from the dealers, which are not providing the same.

As the product is targeted at higher segment, the elite customers may not have time to send their vehicle for service, instead of reminding the customer for service through telephone, it is suggested to have a system of pickup and drop for sending the vehicles to the workshop. The average resolving time to close the customer complaint is high of 3 days, with further focus this can be minimized at two days and subsequently addressed within same day.

Programs

My Mercedes: In 2014 Mercedes-Benz India will further enhance the “My Mercedes” platform which was launched in October 2013. The “National Remote Diagnostic Centre” will also be deployed across all dealerships offering customers solutions to complex technical issues at the fastest possible time.

CRM: Mercedes-Benz India will be focusing on excellence in Customer Relationship Management. Mercedes-Benz India has set up a dedicated telephone number for its customers to connect with and will be focusing in the areas of faster response time and speedy resolution of customer queries or any grievances.

Centre of Excellence: Mercedes-Benz India recently inaugurated the “Centre of Excellence” where discerning customers can personally fly down in their choppers and configure cars of their choice in the state-of-the-art facility in Pune and could also opt for a guided tour of the production facility.

Excellence in Retail: Mercedes-Benz India’s dealerships are luxury destinations and are already benchmarks in luxury retailing, with the usage of innovative technologies like iSales. All the sales consultants at Mercedes-Benz India dealerships are equipped with iPads with an advanced app, which communicates the various technologies featuring in a Three Pointed Star. Customers can also customize various financial options and also look at the many configurations available in a car with the help of iSales. The year 2014 earmarks an important period for Mercedes-Benz India as it will be consolidating the gains from the Year of Offensive and launching a slew of initiatives that will create new benchmarks in modern luxury and for the luxury auto industry in India.

Competitive forces

The bargaining power rivalry is what keeps Mercedes Benz on the run, as such that it can keep ahead of BMW and others, who are always there and always threatening their market share

Power of Customers Buyers compete with the industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other all at the expense of industry profitability Differentiation of product has enabled Mercedes Benz to beat down the power of its customers by offering them basically the same product (engines) at various prices under various models and class.

Innovation The versatility of Mercedes Benz enables it not only to produce a wide range of vehicle ranging from cars to trucks but it has also employed a Superior Engineering Technology in relation to other automobile manufacturers and made available the existence of a worldwide after sales service. This diversity of product programme permits consumers to make wide variety of choices and has been a determining factor in the choices made by consumers who decided to buy a Mercedes Benz product and making them a household name.

Power of Suppliers 1)Alliances The proliferation of suppliers coupled with the super network established ensures the flow and exchange of information between Mercedes Benz and it's strategic suppliers worldwide.

2)Growth Mercedes Benz is not relenting in it's effort at the proliferation of its suppliers because it ensures a constant and cheap supply of parts. Rivalry of Competitors Rivalry among existing competitors takes the familiar form of jockeying for position using tactics like price competition, advertising battles, product introductions, and increased customer service or warranties.

Threat of New Entrants

New entrants to an industry bring new capacity, the desire to gain market share, and often substantial resources. Prices can be bid down or incumbents' costs inflated as a result, reducing profitability. The threat of entry into an industry depends on the barriers to entry that are present, coupled with the reaction from existing competitors that the entrant can expect Differentiation Product differentiation means that established firms have brand identification and customer loyalties, which stem from past advertising, customer service, product differences, or simply being first into the industry.

Threat of Substitutes 1) Differentiation

Mercedes Benz employs a Superior Engineering Technology in relation to other automobile manufacturers. Diversity of product program permits consumers to make wide variety of choices.

Value chain analysis

The value chain is a systematic approach to examining the development of competitive advantage. It was created by M.E Porter. The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organization.

Inbound logistics is the goods are received form a company’s supplier. They are stored until they are needed on the production or assembly line. The goods are moved around the organization. Mercedes-Benz Company will purchase their raw material from all around the world with different supplier. In order to maximize their availability of the supply of the raw material, Mercedes-Benz Company has to maintain the good relationship between the Mercedes-Benz Company and the supplier of the Mercedes-Benz Company. Mercedes-Benz use JIT (just in time) approach for handling of raw material.

Operation. This is where goods are manufactured or assembly. In the individual operation it might include the room service in all the hotel, packing of the books, videos or video games by one of the online retailer or the final tune for the new car’s engine. Mercedes-Benz Company is using this to make new car and the final tune for a new car’s engine. The next is the outbound Logistics. Outbound logistics is the goods are now finished, and they need to be sent along the supply chain to wholesalers, retailers or the final consumer. The Mercedes-Benz Company manage will manage their own car show rooms in the different countries around the entire world. Mercedes-Benz Company can make their product easily assessable.

Marketing and Sales. In true customer orientated fashion, at this stage the Mercedes-Benz Company is prepares the offering to meet the needs of the targeted customers by the Mercedes-Benz Company. This area is focuses strongly upon the marketing communications and the promotions mix.

The services, this services include all area of services such as final checking, final checking is after the Mercedes-Benz company will produced a car from the factory, they will done the first checking before they send it to the branch in the different place. And after the buyer purchase the car, the branch will did the final checking for the buyer to make sure that there is no problem in the car. And besides that is the after sales service, after sales service for the Mercedes-Benz Company is the warranty for the car spare parts for two years and warranty one year for the car stolen, in this one year warranty if your car was stolen by people, the Mercedes-Benz Company will make the compensation with the new car. Furthermore is the complaints handling, the Mercedes-Benz Company have a special departments to handle all the complaints of the customers, this is to make

sure all the complaint from the customers is settle in the time. The last is the employees training. An employee training is to make sure all the employees’ works in the Mercedes-Benz Company are professional. All of this service is because the Mercedes-Benz Company is value their customers.

Marketing mix of Mercedes Benz

The marketing mix of Mercedes Benz shows what a fantastic company Mercedes is, and how, as per Business Week Magazine, it is the top most recognized global automobile brands. This high profile success is not an accident but hard work, patience and excellent application of effective marketing strategy all rolled into one.

Mercedes Benz is considered as the world’s oldest manufacturer of luxury carmaker and the reputation is unlikely to go away in the near future. This marketing mix looks at the company’s marketing and advertising strategies it has implemented over the years to establish itself as a leader in the fiercely competitive automobile industry.

Product in the marketing mix of Mercedes Benz

The name Mercedes Benz needs no introduction even to a toddler, but many people don’t know the inner story of this automobile giant and its line of products. As a matter of fact, Mercedes Benz has always been associated with the world class brand of cars, buses, coaches and tracks known for their luxurious nature. Mercedes Benz is not a company in itself; Gottlieb Daimler and Wilhelm May Bach call its parent company Daimler AG, which was founded, in 1890.

Earlier on, Karl Benz had founded his company in 1871, which later came to join Daimler AG. Mercedes Benz’s headquarters is located at Baden-Wurttemberg and Stuttgart, Germany.

As already mentioned, the company currently produces a wide range of advanced luxury trucks, coaches, cars and buses in its manufacturing facilities based throughout the world. The company has its origin in one of the founding fathers, Karl Benz’s creation of the first automobile that was launched in 1886. The car

was first marketed in 1901. Since then, the company has introduced a number of innovations that have helped in establishing the company.

Product is the strongest P in the marketing mix of Mercedes Benz. Mercedes remain as one of the leading brands in the Indian market, that too for more than 50 years. The company currently assembles its models — S-Class, E-Class, C-Class and the ML-Class while other models, including GL-Class, CLS-Class and SLK-Class are fully imported.

Promotion in the marketing mix of Mercedes Benz

Although Mercedes Benz marketing strategy used to focus on the luxury, safety and precision engineering of its cars, competition has propelled it to adjust its product to suit the changing consumer attitudes. Now, their marketing strategy focuses more on presenting a more energetic, fun loving and approachable side of Mercedes Benz.

The evolution of its marketing strategy can also be a connected to its expanded market. Mercedes Benz has, over the years, found it necessary to expand the market to include younger consumers. Another marketing strategy employed by Mercedes Benz is its decision to slice prices and make the product more affordable to consumers.

In order to increase communication with its target market, Mercedes Benz has maintained accessibility to consumers through the following

Online advertising Social media Establishing excellent customer service at its point of sales Offer warranty under excellent conditions Television advertising Print media

One thing that Mercedes managed to do is to build a reputation of quality and exclusivity in all its products, making it one of the most recognizable brands in the globe. Thus, it enjoys a reputation of class and prestige.

Place in the marketing mix of Mercedes Benz

Mercedes Benz introduced many technological and safety innovations over the years. However, the introduced innovations went on to be replicated by other brands. The company distributes its product through a broad network of dealers throughout the world. Mercedes Benz understands that consumers are not just interested in a buying a car that moves them from point X to point Y.

They are actually making a car that will enable them easily sell the idea about the car in the market. The company intends to change the perception of the brand and reposition it so that it is more appealing to younger generation. They are also sending out the message that they are more approachable than ever before.

Pricing in the marketing mix of Mercedes Benz

Mercedes-Benz manufactures different types of convertibles, full sixed sedans, coupes and sports sedans. It has as many as 14 car models currently ranging from INR 21, 49,000 to 7, 68, 00,000. Mercedes is leaving no stone unturned to tap Indian market in premium segments. As a matter of fact, the company deals in a niche segment where the customer is more concerned with the value they are getting on the product more than anything else is.

Therefore, the company has tried to ensure it makes high quality cars first and foremost. The company has a broad price structure outside India, ranging from $30,000 to up to $100,000, depending on the model.

Objectives and Strategy.

Our overriding corporate goal is to achieve sustained profitable growth and thus continually increase the value of the Group. We aim to attain the leading position in all of our business segments. To achieve that goal, we have defined four strategic growth areas for the Group. We will implement measures related to those areas in the coming years within the framework of the growth strategies of our divisions. These strategies will be accompanied by efficiency programs to ensure that our growth has a solid financial foundation.

Focus on the customer. All of our activities are focused on our customers’ needs. We want to inspire our customers with

fascinating premium automobiles that set standards in the areas of design, safety, comfort, perceived value, reliability and environmental compatibility;

commercial vehicles that are the best in their respective competitive environments; outstanding services that are related to all of these products; and new customer-oriented mobility solutions that exploit the potential of increasing digitization.

Target system. (See graphic A.09) Our overriding corporate goal is to achieve sustained profitable growth and thus to continually increase the value of the Group. We aim to attain the leading position in all of our business segments. We inspire our customers with our brands, products and services. Our core Mercedes-Benz brand plays a key role in these endeavors. Through our groundbreaking technologies, we underscore our position as a pioneer in the areas of environmentally friendly drive systems and safety features. We are strengthening our global presence by safeguarding our position in traditional markets and expanding into new ones. Outstanding operational excellence and efficiency, along with inspired and high-performing people, are the foundation of our future corporate success. At the same time, our entrepreneurial activities are guided by the principle of sustainability in the areas of economics, corporate governance, environmental protection and safety, as well as in our relations with employees, customers and society in general. Our four corporate values — passion, respect, integrity and discipline — form the basis of our actions and help us to achieve our goals. One key principle applies to everything we do: No business in the world is worth violating laws, regulations or ethical standards. For us, integrity and business success are two sides of the same coin. That is why we want to lead the competition in terms of integrity as well.

A clear claim to leadership in all business segments. By means of the “Mercedes-Benz 2020” growth strategy, our Mercedes-Benz Cars division aims to occupy the leading role for premium automobiles by the end of this decade. This means that we intend to be ahead of the competition in terms of our brand image, product range, unit sales and also profitability. The smart brand will further enhance its pioneering role in urban mobility. At Daimler Trucks, we want to further strengthen our position as the Number One company in the global truck business. Mercedes-Benz Vans aims to achieve further profitable growth also outside its present markets and market segments with the “Vans goes global” strategic initiative. Daimler Buses has set itself the goal of further strengthening its leading position for buses above 8 metric tons gross vehicle weight. Daimler Financial Services has targeted the position of best captive financial services provider and will continue to grow in line with our automotive business, as well as in the area of mobility services. In all divisions, we are increasingly utilizing innovations on the interface to digital technologies.

Ambitious return targets. In addition to our growth targets, we have set ourselves a return target (EBIT in relation to revenue) of 9% on average for our automotive business. This overall figure is based on the return targets for the individual divisions, which we intend to achieve on a sustained basis. These targets are 10% for Mercedes-Benz Cars, 8% for Daimler Trucks, 9% for

Mercedes-Benz Vans and 6% for Daimler Buses. Our target for the Daimler Financial Services division is a return on equity of 17%.

Four strategic growth areas. We aim to achieve our goals in four strategic growth areas. (See graphic A.10)