Mercedes Benz
lokeshirabatti
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Oct 02, 2015
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About This Presentation
A project Report on Mercedes Benz - by Lokesh Irabatti
Slide Content
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 1
A PROJECT REPORT
ON
“Mercedes Benz”
SUBMITTED TO,
MIT College of Management, Pune.
In Partial Fulfilments Of the Degree Course of
“MBA”
SUBMITTED BY
Mr. Lokesh Suresh Irabatti
Roll No. – G17
Div. – A
(SEM - 1)
MAEER’s MIT College Of Management, Pune
2015 -2016
MAEER’s MIT College Of Management, Pune Page 1
A PROJECT REPORT
ON
“Mercedes Benz”
SUBMITTED TO,
MIT College of Management, Pune.
In Partial Fulfilments Of the Degree Course of
“MBA”
SUBMITTED BY
Mr. Lokesh Suresh Irabatti
Roll No. – G17
Div. – A
(SEM - 1)
MAEER’s MIT College Of Management, Pune
2015 -2016
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 2
ACKNOWLEDGEMENT
This word of Thank You is much less for the word encouragement which I
received from people going out of the way to make me feel comfortable and to
make the things simple.
I extend my profound thanks to our COURSE HEAD for giving me opportunity to
undertake this project.
My special thanks and sincere gratitude goes to our guide Mr. Ganesh Tannu
for the constructive criticism throughout the project.
My sincere and peculiar thanks to Mr. Ganesh Tannu who has motivated me every
time and shared her valuable time and provided me with all necessary
information.
PLACE:- Pune STUDENT’S SIGNATURE
DATE: - Mr. Lokesh Irabatti
Roll No. G17
Division - A
MAEER’s MIT College Of Management, Pune Page 2
ACKNOWLEDGEMENT
This word of Thank You is much less for the word encouragement which I
received from people going out of the way to make me feel comfortable and to
make the things simple.
I extend my profound thanks to our COURSE HEAD for giving me opportunity to
undertake this project.
My special thanks and sincere gratitude goes to our guide Mr. Ganesh Tannu
for the constructive criticism throughout the project.
My sincere and peculiar thanks to Mr. Ganesh Tannu who has motivated me every
time and shared her valuable time and provided me with all necessary
information.
PLACE:- Pune STUDENT’S SIGNATURE
DATE: - Mr. Lokesh Irabatti
Roll No. G17
Division - A
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 3
DECLARATION
I undersigned hereby declare that project report entitled,
Written and submitted by me, is my original work and is done under the guidance
of
Mr. Ganesh Tannu
The empirical findings in this report are based on data collected by myself. While
preparing this, I have not copied from any other report
I understand that any such copying is entitled to be punished in a way that
university authorities deem to be fit.
MAEER’s MIT College Of Management, Pune Page 3
DECLARATION
I undersigned hereby declare that project report entitled,
Written and submitted by me, is my original work and is done under the guidance
of
Mr. Ganesh Tannu
The empirical findings in this report are based on data collected by myself. While
preparing this, I have not copied from any other report
I understand that any such copying is entitled to be punished in a way that
university authorities deem to be fit.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 4
Chapter 1
INTRODUCTION ABOUT THE AUTOMOBILE INDUSTRY
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the
first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,
military tractor that made the use of a steam engine. The range of the automobile, however,
was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,
these automobiles were not fit for the roads as the steam engines made them very heavy and
large, and required ample starting time.
The Automobile Industry came of age with Henry Ford in 1914 for the bulk production of
cars. This lead to the development of the industry and it first begun in the assembly lines of
his car factory. The several methods adopted by Ford, made the new invention (that is, the
car) popular amongst the rich as well as the masses.
According the History of Automobile Industry US, dominated the automobile
markets around the globe with no notable competitors. However, after the end of the Second
World War in 1945, the Automobile Industry of other technologically advanced nations such
as Japan and certain European nations gained momentum and within a very short period,
beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign
automobile companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal that in the developed
countries the Automobile Industries are stagnating as a result of the drooping car markets,
whereas the Automobile Industry in the developing nations, such as, India and Brazil, have
been consistently registering higher growth rates every passing year for their flourishing
domestic automobile markets.
MAEER’s MIT College Of Management, Pune Page 4
Chapter 1
INTRODUCTION ABOUT THE AUTOMOBILE INDUSTRY
In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the
first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,
military tractor that made the use of a steam engine. The range of the automobile, however,
was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,
these automobiles were not fit for the roads as the steam engines made them very heavy and
large, and required ample starting time.
The Automobile Industry came of age with Henry Ford in 1914 for the bulk production of
cars. This lead to the development of the industry and it first begun in the assembly lines of
his car factory. The several methods adopted by Ford, made the new invention (that is, the
car) popular amongst the rich as well as the masses.
According the History of Automobile Industry US, dominated the automobile
markets around the globe with no notable competitors. However, after the end of the Second
World War in 1945, the Automobile Industry of other technologically advanced nations such
as Japan and certain European nations gained momentum and within a very short period,
beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign
automobile companies, especially those of Japan and Germany.
The current trends of the Global Automobile Industry reveal that in the developed
countries the Automobile Industries are stagnating as a result of the drooping car markets,
whereas the Automobile Industry in the developing nations, such as, India and Brazil, have
been consistently registering higher growth rates every passing year for their flourishing
domestic automobile markets.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 5
The World Automobile Industry is turned to the developing markets.
With the developed markets almost saturated, the World Automobile Industry is
now focused on the developing markets of South America and Asia, and Eastern Europe with
special emphasis on BRIC (Brazil, Russia, India, and China).
As per the reports of the International Organization of Motor Vehicle Manufacturers or
OICA(the association of the companies involved in World Automobile Industry), for the
fiscal end in 2010, the automobile manufacturers in the U.S. have been overtaken by those in
Japan, in terms of the total volume of automobile units manufactured worldwide.
Measures to be adopted by global leaders of the World Automobile Industry.
Several significant economic measures are being considered by the major players of
the World Automobile Industry in order to make a smooth entry into the markets of the
developing countries, and to make a name for themselves. The effective measures include:
Reducing the selling prices of the automobiles manufactured in their factories
Improving the levels of after-sales services to keep customers satisfied
Opening manufacturing factories in the developing nations, to reduce effective costs
of production as well as saving shipping charges, and enhancing prompt delivery of
automobile units.
Automobile Industry Trends
In keeping with the Automobile Industry Trends, the leading automobile
manufacturers are turning to the Asian markets that appear set to grow immensely over the
next decade. The automobile markets in the U.S., Europe and the Japan have almost matured
as a result of saturation and appear set to decline through the next decade. In contrast, the
automobile markets spread over the entire Asian continent (with the exception of Japan), are
constantly increasing in size and will be the destination for most of the globally leading
automobile manufacturers.
MAEER’s MIT College Of Management, Pune Page 5
The World Automobile Industry is turned to the developing markets.
With the developed markets almost saturated, the World Automobile Industry is
now focused on the developing markets of South America and Asia, and Eastern Europe with
special emphasis on BRIC (Brazil, Russia, India, and China).
As per the reports of the International Organization of Motor Vehicle Manufacturers or
OICA(the association of the companies involved in World Automobile Industry), for the
fiscal end in 2010, the automobile manufacturers in the U.S. have been overtaken by those in
Japan, in terms of the total volume of automobile units manufactured worldwide.
Measures to be adopted by global leaders of the World Automobile Industry.
Several significant economic measures are being considered by the major players of
the World Automobile Industry in order to make a smooth entry into the markets of the
developing countries, and to make a name for themselves. The effective measures include:
Reducing the selling prices of the automobiles manufactured in their factories
Improving the levels of after-sales services to keep customers satisfied
Opening manufacturing factories in the developing nations, to reduce effective costs
of production as well as saving shipping charges, and enhancing prompt delivery of
automobile units.
Automobile Industry Trends
In keeping with the Automobile Industry Trends, the leading automobile
manufacturers are turning to the Asian markets that appear set to grow immensely over the
next decade. The automobile markets in the U.S., Europe and the Japan have almost matured
as a result of saturation and appear set to decline through the next decade. In contrast, the
automobile markets spread over the entire Asian continent (with the exception of Japan), are
constantly increasing in size and will be the destination for most of the globally leading
automobile manufacturers.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 6
The Automobile Industry Trends reveal that the emerging markets of the
developing nations of Asia especially China, and India are backed by their huge population
growth rate, to add to the growing national economy of these two nations.
The rapid growth of the national economy of the BRIC countries (including Brazil,
Russia, India, and China) has enabled a growing section of the population of these countries
to purchase automobiles. Global surveys conducted recently reveal that within the next ten
years, these emerging automobile markets will account for nearly a whopping 90 percent of
the global automobile sales growth. As a result of this, leading Automobile manufacturers of
the world are setting up factories in the emerging markets, in order to serve the potential
consumers better as well as reduce manufacturing and shipping costs. In addition, these
arrangements are enabling the leading global automobile manufacturers to compete with the
local automobile manufacturers, which were flourishing in the absence of quality
competition.
The Emerging Indian Automobile Market
The Indian Automobile Market is a promising industrial sector that is growing
immensely every passing year. The passenger cars are referred to, through the use of the
word "automobile." The whooping growth experienced by the Indian Automobile Market in
the last financial year itself that is the financial year end in February, 2011 was very close to
a 38 percent over the previous fiscal. This statistical fact is a glittering example of the
potential of the growing Automobile Industry in India.
As per the survey conducted by the Society of Indian Automobile Manufacturers,
the total number of automobiles manufactured by the Automobile Industry in India,
throughout the financial year 2010-11, was very close to the 35.5 lakh (3.5 million) margin.
The huge of number of automobiles manufactured by the Automobile Industry in India was
an enormous growth upon the number of automobiles manufactured during the previous
fiscal that ended in 2010.
MAEER’s MIT College Of Management, Pune Page 6
The Automobile Industry Trends reveal that the emerging markets of the
developing nations of Asia especially China, and India are backed by their huge population
growth rate, to add to the growing national economy of these two nations.
The rapid growth of the national economy of the BRIC countries (including Brazil,
Russia, India, and China) has enabled a growing section of the population of these countries
to purchase automobiles. Global surveys conducted recently reveal that within the next ten
years, these emerging automobile markets will account for nearly a whopping 90 percent of
the global automobile sales growth. As a result of this, leading Automobile manufacturers of
the world are setting up factories in the emerging markets, in order to serve the potential
consumers better as well as reduce manufacturing and shipping costs. In addition, these
arrangements are enabling the leading global automobile manufacturers to compete with the
local automobile manufacturers, which were flourishing in the absence of quality
competition.
The Emerging Indian Automobile Market
The Indian Automobile Market is a promising industrial sector that is growing
immensely every passing year. The passenger cars are referred to, through the use of the
word "automobile." The whooping growth experienced by the Indian Automobile Market in
the last financial year itself that is the financial year end in February, 2011 was very close to
a 38 percent over the previous fiscal. This statistical fact is a glittering example of the
potential of the growing Automobile Industry in India.
As per the survey conducted by the Society of Indian Automobile Manufacturers,
the total number of automobiles manufactured by the Automobile Industry in India,
throughout the financial year 2010-11, was very close to the 35.5 lakh (3.5 million) margin.
The huge of number of automobiles manufactured by the Automobile Industry in India was
an enormous growth upon the number of automobiles manufactured during the previous
fiscal that ended in 2010.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 7
The total number of cars that were exported from India was very close to the 5.0 lakh
(5.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in India.
The export of cars manufactured in India comprised nearly 33 percent of the total number of
cars manufactured domestically by the Automobile Industry in I ndia.
The India Automobile Market looks set to prosper, largely due to the growing market
for automobiles that is developing in India. In the financial year that ended in February,
2009, the Indian automobile markets were the fastest growing in the world, with the
registered growth rate touching nearly 20 percent. The Automobile Industry in India
mainly comprises of the small car section, which enjoys nearly a 2/3rd market share of the
entire market for automobiles in India. In this respect, the Indian markets are the largest in
the world for small cars, behind Japan.
The Indian passenger car market which ranks amongst the largest in the world, is
poised to become even larger and enter the top five passenger car markets in the world in the
next decade.
India Automobile Industry
Following India's growing openness, the arrival of new and existing models, easy availability
of finance at relatively low rate of interest and price discounts offered by the dealers and
manufacturers all have stirred the demand for vehicles and a strong growth of the Indian
automobile industry. The data obtained from ministry of commerce and industry, shows
high growth obtained since 2001- 02 in automobile production continuing in the first three
quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the
growth rate in 2003-04 was 15.1 per cent the automobile industry grew at a compound
annual growth rate (CAGR) of 22 per cent between 1992 and 1997.
With investment exceeding Rs. 50,000 crore, the turnover of the automobile
industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component
sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is
estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.
MAEER’s MIT College Of Management, Pune Page 7
The total number of cars that were exported from India was very close to the 5.0 lakh
(5.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in India.
The export of cars manufactured in India comprised nearly 33 percent of the total number of
cars manufactured domestically by the Automobile Industry in I ndia.
The India Automobile Market looks set to prosper, largely due to the growing market
for automobiles that is developing in India. In the financial year that ended in February,
2009, the Indian automobile markets were the fastest growing in the world, with the
registered growth rate touching nearly 20 percent. The Automobile Industry in India
mainly comprises of the small car section, which enjoys nearly a 2/3rd market share of the
entire market for automobiles in India. In this respect, the Indian markets are the largest in
the world for small cars, behind Japan.
The Indian passenger car market which ranks amongst the largest in the world, is
poised to become even larger and enter the top five passenger car markets in the world in the
next decade.
India Automobile Industry
Following India's growing openness, the arrival of new and existing models, easy availability
of finance at relatively low rate of interest and price discounts offered by the dealers and
manufacturers all have stirred the demand for vehicles and a strong growth of the Indian
automobile industry. The data obtained from ministry of commerce and industry, shows
high growth obtained since 2001- 02 in automobile production continuing in the first three
quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004; the
growth rate in 2003-04 was 15.1 per cent the automobile industry grew at a compound
annual growth rate (CAGR) of 22 per cent between 1992 and 1997.
With investment exceeding Rs. 50,000 crore, the turnover of the automobile
industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component
sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is
estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 8
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd.
General Motors India
Ford India Ltd.
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Mahindra Motors
Hyundai Motor India Ltd.
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
Government has liberalized the norms for foreign investment and import of technology and
that appears to have benefited the automobile sector. The production of total vehicles
increased from 4.2 million in 2005-06 to 7.3 million in 2006-07.
MAEER’s MIT College Of Management, Pune Page 8
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd.
General Motors India
Ford India Ltd.
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Mahindra Motors
Hyundai Motor India Ltd.
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
Government has liberalized the norms for foreign investment and import of technology and
that appears to have benefited the automobile sector. The production of total vehicles
increased from 4.2 million in 2005-06 to 7.3 million in 2006-07.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 9
The industry has adopted the global standards and this was manifested in the
increasing exports of the sector. After a temporary slump during 2007- 2008 , such exports
registered robust growth rates of well over 50 per cent in 2008-09 and 2009-10 each to
exceed two and- a-half times the export figure for 2011-12.
Automobile Export Numbers
THE KEY FACTORS BEHIND THIS UPSWING
Sales incentives, introduction of new models as well as variants coupled with easy
availability of low cost finance with comfortable repayment options continued to drive
demand and sales of automobiles during the first two quarters of the current year. The risk of
an increase in the interest rates, the impact of delayed monsoons on rural demand, and
increase in the costs of inputs such as steel are the key concerns for the players in the
industry.
As the players continue to introduce new models and variants, the competition may intensify
further. The ability of the players to contain costs and focus on exports will be critical for the
performance of their respective companies.
The auto component sector has also posted significant growth of 20 per cent in 2009-10, to
achieve a sales turnover of Rs.30,640 cr (US$ 6.7 billion). Further, there is a potential for
higher growth due to outsourcing activities by global automobiles giants. Today, this sector
has emerged as another sunrise sector.
MAEER’s MIT College Of Management, Pune Page 9
The industry has adopted the global standards and this was manifested in the
increasing exports of the sector. After a temporary slump during 2007- 2008 , such exports
registered robust growth rates of well over 50 per cent in 2008-09 and 2009-10 each to
exceed two and- a-half times the export figure for 2011-12.
Automobile Export Numbers
THE KEY FACTORS BEHIND THIS UPSWING
Sales incentives, introduction of new models as well as variants coupled with easy
availability of low cost finance with comfortable repayment options continued to drive
demand and sales of automobiles during the first two quarters of the current year. The risk of
an increase in the interest rates, the impact of delayed monsoons on rural demand, and
increase in the costs of inputs such as steel are the key concerns for the players in the
industry.
As the players continue to introduce new models and variants, the competition may intensify
further. The ability of the players to contain costs and focus on exports will be critical for the
performance of their respective companies.
The auto component sector has also posted significant growth of 20 per cent in 2009-10, to
achieve a sales turnover of Rs.30,640 cr (US$ 6.7 billion). Further, there is a potential for
higher growth due to outsourcing activities by global automobiles giants. Today, this sector
has emerged as another sunrise sector.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 10
Chapter 2
Mercedes-Benz
Type Division
Industry Manufacturing
Predecessor
Benz & Cie. (1883-1926)
Daimler-Motoren-Gesellschaft
(1890-1926)
Founded 1926
Founder
Karl Benz and Gottlieb
Daimler
Headquarters Stuttgart, Germany
Area served Worldwide
Key people Dieter Zetsche, Chairman
Products
Automobiles
Trucks
Buses
Internal combustion engines
Luxury vehicles
Services
Financial services
automobile repair
Owner Daimler AG
Divisions Mercedes-AMG
Slogan The best or nothing.
Website www.mercedes-benz.com
MAEER’s MIT College Of Management, Pune Page 10
Chapter 2
Mercedes-Benz
Type Division
Industry Manufacturing
Predecessor
Benz & Cie. (1883-1926)
Daimler-Motoren-Gesellschaft
(1890-1926)
Founded 1926
Founder
Karl Benz and Gottlieb
Daimler
Headquarters Stuttgart, Germany
Area served Worldwide
Key people Dieter Zetsche, Chairman
Products
Automobiles
Trucks
Buses
Internal combustion engines
Luxury vehicles
Services
Financial services
automobile repair
Owner Daimler AG
Divisions Mercedes-AMG
Slogan The best or nothing.
Website www.mercedes-benz.com
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 11
Introduction Of the Company
Mercedes Benz is a German automobile manufacturer, a multinational
division of the German manufacturer Daimler AG. The brand is used for
luxury automobiles, buses, coaches, and trucks. The headquarters of
Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany.
Mercedes-Benz is a German automotive company ranked 12th on 'best-
global-brands 2011" same rank it got the previous year 2010, with current
brand value of 27,445million dollars.
This company is a multinational division of the German manufacturer
Daimler AG, and the brand is used for luxury automobiles, buses, coaches,
and trucks. With its headquarter in Stuttgart, Baden-Württemberg,
Germany. The name first appeared in 1926 under Daimler-Benz but traces
its origins to Daimler's 1901 Mercedes and to Karl Benz's 1886 Benz
Patent Motorwagen, widely regarded as the first automobile. It traces its
origins to Daimler-Motoren-Gesellschaft's 1901 Mercedes and to Karl
Benz's 1886 Benz Patent-Motorwagen, which is widely regarded as the first
gasoline powered automobile. Mercedes-Benz's slogan is "Das Beste oder
nichts" (English: "The best or nothing"). Mercedes-Benz is one of the most
recognized and best-selling automotive brands worldwide
Mercedes-Benz firmly staked out its territory atop the premium automobile
category with its new tagline, "The Best or Nothing," successfully tying its
long heritage of excellence in engineering, performance, styling, and safety
to its 125th birthday. Mercedes outranks all other automotive brands in
terms of customer loyalty and satisfaction. With its new model rollout,
Mercedes has responded to a market that is quickly evolving in favor of
green technologies. Half of the product line is available with its Blue
Efficiency package, and it's Daimler "Car2Go" car-sharing mobility concept
recently launched. Mercedes-Benz also continues to partner with Tesla on
lithium-ion battery packs, and it received a 2010 German Sustainability
Award for its Atego Blue Tec Hybrid truck.
MAEER’s MIT College Of Management, Pune Page 11
Introduction Of the Company
Mercedes Benz is a German automobile manufacturer, a multinational
division of the German manufacturer Daimler AG. The brand is used for
luxury automobiles, buses, coaches, and trucks. The headquarters of
Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany.
Mercedes-Benz is a German automotive company ranked 12th on 'best-
global-brands 2011" same rank it got the previous year 2010, with current
brand value of 27,445million dollars.
This company is a multinational division of the German manufacturer
Daimler AG, and the brand is used for luxury automobiles, buses, coaches,
and trucks. With its headquarter in Stuttgart, Baden-Württemberg,
Germany. The name first appeared in 1926 under Daimler-Benz but traces
its origins to Daimler's 1901 Mercedes and to Karl Benz's 1886 Benz
Patent Motorwagen, widely regarded as the first automobile. It traces its
origins to Daimler-Motoren-Gesellschaft's 1901 Mercedes and to Karl
Benz's 1886 Benz Patent-Motorwagen, which is widely regarded as the first
gasoline powered automobile. Mercedes-Benz's slogan is "Das Beste oder
nichts" (English: "The best or nothing"). Mercedes-Benz is one of the most
recognized and best-selling automotive brands worldwide
Mercedes-Benz firmly staked out its territory atop the premium automobile
category with its new tagline, "The Best or Nothing," successfully tying its
long heritage of excellence in engineering, performance, styling, and safety
to its 125th birthday. Mercedes outranks all other automotive brands in
terms of customer loyalty and satisfaction. With its new model rollout,
Mercedes has responded to a market that is quickly evolving in favor of
green technologies. Half of the product line is available with its Blue
Efficiency package, and it's Daimler "Car2Go" car-sharing mobility concept
recently launched. Mercedes-Benz also continues to partner with Tesla on
lithium-ion battery packs, and it received a 2010 German Sustainability
Award for its Atego Blue Tec Hybrid truck.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 12
History
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-
powered car, the Benz Patent Motorwagen, financed by Bertha Benz and
patented in January 1886, and Gottlieb Daimler and engineer Wilhelm
Maybach's conversion of a stagecoach by the addition of a petrol engine
later that year. The Mercedes automobile was first marketed in 1901 by
Daimler-Motoren-Gesellschaft. The first Mercedes-Benz brand name
vehicles were produced in 1926, following the merger of Karl Benz's and
Gottlieb Daimler's companies into the Daimler-Benz company. Throughout
the 1930s, Mercedes-Benz produced the 770 model, a car that was popular
during Germany's Nazi period. Adolf Hitler was known to have driven these
cars during his time in power, with bulletproof windshields. Most of the
surviving models have been sold at auctions to private buyers. One of them
is currently on display at the War Museum in Ottawa, Ontario. Mercedes-
Benz has introduced many technological and safety innovations that later
became common in other vehicles. Mercedes-Benz is one of the best-
known and established automotive brands in the world, and is also one of
the world's oldest automotive brand still in existence today in 2015, having
produced the first petrol-powered car.
For information relating to the famous three-pointed star, see under the title
Daimler-Motoren-Gesellschaft including the merger into Daimler-Benz.
MAEER’s MIT College Of Management, Pune Page 12
History
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-
powered car, the Benz Patent Motorwagen, financed by Bertha Benz and
patented in January 1886, and Gottlieb Daimler and engineer Wilhelm
Maybach's conversion of a stagecoach by the addition of a petrol engine
later that year. The Mercedes automobile was first marketed in 1901 by
Daimler-Motoren-Gesellschaft. The first Mercedes-Benz brand name
vehicles were produced in 1926, following the merger of Karl Benz's and
Gottlieb Daimler's companies into the Daimler-Benz company. Throughout
the 1930s, Mercedes-Benz produced the 770 model, a car that was popular
during Germany's Nazi period. Adolf Hitler was known to have driven these
cars during his time in power, with bulletproof windshields. Most of the
surviving models have been sold at auctions to private buyers. One of them
is currently on display at the War Museum in Ottawa, Ontario. Mercedes-
Benz has introduced many technological and safety innovations that later
became common in other vehicles. Mercedes-Benz is one of the best-
known and established automotive brands in the world, and is also one of
the world's oldest automotive brand still in existence today in 2015, having
produced the first petrol-powered car.
For information relating to the famous three-pointed star, see under the title
Daimler-Motoren-Gesellschaft including the merger into Daimler-Benz.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 13
Logo history
1916-1926
1926-1980
1902-1909
1909-1916
1980-1990
1990 & current
MAEER’s MIT College Of Management, Pune Page 13
Logo history
1916-1926
1926-1980
1902-1909
1909-1916
1980-1990
1990 & current
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 14
Company Profile
Daimler AG (Daimler), incorporated on July 31, 1998, is an automotive
engineering company. The
Company is engaged the development, production and distribution of cars,
trucks and vans in Germany, and the management of the Daimler Group.
The Company operates in five segments: Mercedes-Benz Cars, Daimler
Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial
Services. The Company offers its automotive products and related financial
services primarily in Western Europe and in the North American Free Trade
Agreement (NAFTA) region, which consists of the United States, Canada
and Mexico. Its brand portfolio includes, in addition to the automotive
brand, Mercedes-Benz, as well as Mercedes-AMG and Mercedes-
Maybach, the brands smart, Freightliner, Western Star, BharatBenz, Fuso,
Setra and Thomas Built Buses, and Daimler Financial Services' brands:
Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Truck Financial,
moovel and car2go. It distributes a total of over 100 individual vehicle
models in the product categories cars, vans, trucks and buses in around
200 countries around the world, and automotive financial services in more
than 40 countries in its product portfolio.
Mercedes-Benz Cars
Mercedes-Benz Cars sells passenger cars and off-road vehicles under the
Mercedes-Benz brand and small cars under the smart brand. The products
supplied by the Mercedes Benz Cars segment comprise a spectrum of
vehicles of the Mercedes Benz brand and its Mercedes-AMG and
Mercedes-Maybach sub-brands. These vehicles range from the compact
models of the A Class and B Class to various sport utility vehicles,
roadsters, coupes and convertibles, and S Class luxury sedans. Additional
products are the small cars of the smart brand. The segment's primary
manufacturing location is Germany, and the segment also has production
facilities in the United States, China, France, Hungary, Romania, South
Africa, India, Vietnam and Indonesia. The smart brand offers two models,
such as fortwo and forfour models.
Daimler Trucks
The Company is a manufacturer of trucks above 6 metric tons gross
vehicle weight. Daimler Trucks develops and produces vehicles in a global
network. Daimler Trucks distributes its trucks under the brand names
MAEER’s MIT College Of Management, Pune Page 14
Company Profile
Daimler AG (Daimler), incorporated on July 31, 1998, is an automotive
engineering company. The
Company is engaged the development, production and distribution of cars,
trucks and vans in Germany, and the management of the Daimler Group.
The Company operates in five segments: Mercedes-Benz Cars, Daimler
Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial
Services. The Company offers its automotive products and related financial
services primarily in Western Europe and in the North American Free Trade
Agreement (NAFTA) region, which consists of the United States, Canada
and Mexico. Its brand portfolio includes, in addition to the automotive
brand, Mercedes-Benz, as well as Mercedes-AMG and Mercedes-
Maybach, the brands smart, Freightliner, Western Star, BharatBenz, Fuso,
Setra and Thomas Built Buses, and Daimler Financial Services' brands:
Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Truck Financial,
moovel and car2go. It distributes a total of over 100 individual vehicle
models in the product categories cars, vans, trucks and buses in around
200 countries around the world, and automotive financial services in more
than 40 countries in its product portfolio.
Mercedes-Benz Cars
Mercedes-Benz Cars sells passenger cars and off-road vehicles under the
Mercedes-Benz brand and small cars under the smart brand. The products
supplied by the Mercedes Benz Cars segment comprise a spectrum of
vehicles of the Mercedes Benz brand and its Mercedes-AMG and
Mercedes-Maybach sub-brands. These vehicles range from the compact
models of the A Class and B Class to various sport utility vehicles,
roadsters, coupes and convertibles, and S Class luxury sedans. Additional
products are the small cars of the smart brand. The segment's primary
manufacturing location is Germany, and the segment also has production
facilities in the United States, China, France, Hungary, Romania, South
Africa, India, Vietnam and Indonesia. The smart brand offers two models,
such as fortwo and forfour models.
Daimler Trucks
The Company is a manufacturer of trucks above 6 metric tons gross
vehicle weight. Daimler Trucks develops and produces vehicles in a global
network. Daimler Trucks distributes its trucks under the brand names
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MAEER’s MIT College Of Management, Pune Page 15
Mercedes-Benz, Freightliner, FUSO, Western Star, Thomas Built Buses
and BharatBenz.
Mercedes-Benz Vans
The vans of the Mercedes-Benz Vans segment are primarily sold under the
brand name Mercedes-Benz and also under the Freightliner brand. The
product offering of the Mercedes-Benz Vans segment comprises the Citan
urban delivery vehicle, as well as the Sprinter and Vito in the medium-duty
and heavy-duty van segment. It also includes the V-Class MPV in the
private segment. The Company sold Mercedes Benz Vans 294,600
vehicles around the world in the fiscal year ended December 31, 2014
(fiscal 2014).
Daimler Buses
Daimler Buses is a bus manufacturer in its core markets of Western Europe
and Latin America. Daimler Buses sold 33,200 buses and chassis of the
Mercedes Benz and Setra brands around the world fiscal 2014. The
Daimler Buses division offers its brands, such as Mercedes Benz and
Setra. Its product range comprises city and intercity buses, coaches and
bus chassis.
Daimler Financial Services
Daimler's financing and leasing activities are primarily focused on
supporting the sales of the Group's automotive products. Daimler Financial
Services segment's product portfolio mainly comprises tailored financing
and leasing packages for customers and dealers. The segment also
provides services, such as insurance, fleet management, investment
products and credit cards, as well as various mobility services.
The Company competes with BMW, Ford, Fuji Heavy, Honda, Hyundai,
Isuzu, Mazda, Nissan, Paccar, Toyota, Volvo and Volkswagen
MAEER’s MIT College Of Management, Pune Page 15
Mercedes-Benz, Freightliner, FUSO, Western Star, Thomas Built Buses
and BharatBenz.
Mercedes-Benz Vans
The vans of the Mercedes-Benz Vans segment are primarily sold under the
brand name Mercedes-Benz and also under the Freightliner brand. The
product offering of the Mercedes-Benz Vans segment comprises the Citan
urban delivery vehicle, as well as the Sprinter and Vito in the medium-duty
and heavy-duty van segment. It also includes the V-Class MPV in the
private segment. The Company sold Mercedes Benz Vans 294,600
vehicles around the world in the fiscal year ended December 31, 2014
(fiscal 2014).
Daimler Buses
Daimler Buses is a bus manufacturer in its core markets of Western Europe
and Latin America. Daimler Buses sold 33,200 buses and chassis of the
Mercedes Benz and Setra brands around the world fiscal 2014. The
Daimler Buses division offers its brands, such as Mercedes Benz and
Setra. Its product range comprises city and intercity buses, coaches and
bus chassis.
Daimler Financial Services
Daimler's financing and leasing activities are primarily focused on
supporting the sales of the Group's automotive products. Daimler Financial
Services segment's product portfolio mainly comprises tailored financing
and leasing packages for customers and dealers. The segment also
provides services, such as insurance, fleet management, investment
products and credit cards, as well as various mobility services.
The Company competes with BMW, Ford, Fuji Heavy, Honda, Hyundai,
Isuzu, Mazda, Nissan, Paccar, Toyota, Volvo and Volkswagen
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Competitors
The Company competes with –
BMW
Ford
Fuji Heavy
Honda
Hyundai
Isuzu
Mazda
Nissan
Paccar
Toyota
Volvo
Volkswagen
Subsidiaries and alliances
As part of the Daimler AG company, the Mercedes-Benz Cars division
includes Mercedes-Benz and Smart car production.
Mercedes-AMG
Mercedes-AMG became a majority owned division of Mercedes-Benz in
1999. The company was integrated into DaimlerChrysler in 1999, and
became Mercedes-Benz AMG beginning on 1 January 1999.
MAEER’s MIT College Of Management, Pune Page 16
Competitors
The Company competes with –
BMW
Ford
Fuji Heavy
Honda
Hyundai
Isuzu
Mazda
Nissan
Paccar
Toyota
Volvo
Volkswagen
Subsidiaries and alliances
As part of the Daimler AG company, the Mercedes-Benz Cars division
includes Mercedes-Benz and Smart car production.
Mercedes-AMG
Mercedes-AMG became a majority owned division of Mercedes-Benz in
1999. The company was integrated into DaimlerChrysler in 1999, and
became Mercedes-Benz AMG beginning on 1 January 1999.
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McLaren Group
Motorsport
McLaren Mercedes logo
Mercedes-AMG was the official engine supplier for the second oldest and
most successful F1 team by Grand Prix wins, McLaren Racing from 1995-
2014. In 2013 it was announced that after the last year with Mercedes
contract with McLaren, Mercedes would be dropped and be replaced by
Honda, with whom McLaren had world championship wins in the past
together.
Road Car Manufacturing
From 2003 to 2009, Mercedes were in a joint venture with McLaren Group
to manufacture the Mercedes-Benz SLR McLaren. At this time, Mercedes
owned 40% of McLaren Group. Due to Mercedes purchasing Brawn GP, a
F1 team, Mercedes decided to sell their shares back to Ron Dennis, as
McLaren would be their rival in the F1 championship.
Maybach
Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars
division until 2013, when the production stopped due to poor sales
volumes. It now exists under the Mercedes-Maybach name, with the
models being ultra-luxury versions of Mercedes cars, such as the 2016
Mercedes-Maybach S600.
MAEER’s MIT College Of Management, Pune Page 17
McLaren Group
Motorsport
McLaren Mercedes logo
Mercedes-AMG was the official engine supplier for the second oldest and
most successful F1 team by Grand Prix wins, McLaren Racing from 1995-
2014. In 2013 it was announced that after the last year with Mercedes
contract with McLaren, Mercedes would be dropped and be replaced by
Honda, with whom McLaren had world championship wins in the past
together.
Road Car Manufacturing
From 2003 to 2009, Mercedes were in a joint venture with McLaren Group
to manufacture the Mercedes-Benz SLR McLaren. At this time, Mercedes
owned 40% of McLaren Group. Due to Mercedes purchasing Brawn GP, a
F1 team, Mercedes decided to sell their shares back to Ron Dennis, as
McLaren would be their rival in the F1 championship.
Maybach
Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars
division until 2013, when the production stopped due to poor sales
volumes. It now exists under the Mercedes-Maybach name, with the
models being ultra-luxury versions of Mercedes cars, such as the 2016
Mercedes-Maybach S600.
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Car nomenclature
Until 1994, Mercedes-Benz used an alphanumeric system for categorizing
their vehicles, consisting of a number sequence approximately equal to the
engine's displacement in liters multiplied by 100, followed by an
arrangement of alphabetical suffixes indicating body style and engine type.
"C" indicates a coupe or cabriolet body style (for example, the CL and
CLK models, although the C-Class is an exception, as it is also
offered as a sedan).
"D" indicates the vehicle is equipped with a diesel engine.
"E" (for "Einspritzung") indicates the vehicle's engine is equipped with
petrol fuel injection. In most cases (the 600 limousine and Mercedes
E-Class being the exceptions), if neither “E” nor "D" is present, the
vehicle has a petrol engine with a carburetor.
"G" was originally used for the Geländewagen off-road vehicle, but is
now applied to Mercedes SUVs in general (for example, the GLA and
GLK).
"K" was used in the 1930s, indicating a supercharger ("Kompressor")
equipped engine. One exception is the SSK, where K indicates "Kurz"
(short-wheelbase).
"L" indicates "Leicht" (lightweight) for sporting models and "Lang"
(long-wheelbase) for sedan models.
"R" indicates "Rennen" (racing), used for racing cars (for example,
the 300SLR).
"S" Sonderklasse "Special class" for flagship models, including the S-
Class, and the SL-Class, SLR McLaren and SLS sports cars.
"T" indicates "Touring" and an estate (or station wagon) body style.
Some models in the 1950s also had lower-case letters (b, c, and d) to
indicate specific trim levels. For other models, the numeric part of the
designation does not match the engine displacement. This was done to
show the model's position in the model range independent of displacement
or in the price matrix. For these vehicles, the actual displacement in liters is
suffixed to the model designation. An exception was the 190-class with the
numeric designation of "190" as to denote its entry level in the model along
with the displacement label on the right side of the boot (190E 2.3 for 2.3-
litre 4-cylinder petrol motor, 190D 2.5 for 2.5-litre 5-cylinder diesel motor,
and so forth). Some older models (such as the SS and SSK) did not have a
number as part of the designation at all.
MAEER’s MIT College Of Management, Pune Page 18
Car nomenclature
Until 1994, Mercedes-Benz used an alphanumeric system for categorizing
their vehicles, consisting of a number sequence approximately equal to the
engine's displacement in liters multiplied by 100, followed by an
arrangement of alphabetical suffixes indicating body style and engine type.
"C" indicates a coupe or cabriolet body style (for example, the CL and
CLK models, although the C-Class is an exception, as it is also
offered as a sedan).
"D" indicates the vehicle is equipped with a diesel engine.
"E" (for "Einspritzung") indicates the vehicle's engine is equipped with
petrol fuel injection. In most cases (the 600 limousine and Mercedes
E-Class being the exceptions), if neither “E” nor "D" is present, the
vehicle has a petrol engine with a carburetor.
"G" was originally used for the Geländewagen off-road vehicle, but is
now applied to Mercedes SUVs in general (for example, the GLA and
GLK).
"K" was used in the 1930s, indicating a supercharger ("Kompressor")
equipped engine. One exception is the SSK, where K indicates "Kurz"
(short-wheelbase).
"L" indicates "Leicht" (lightweight) for sporting models and "Lang"
(long-wheelbase) for sedan models.
"R" indicates "Rennen" (racing), used for racing cars (for example,
the 300SLR).
"S" Sonderklasse "Special class" for flagship models, including the S-
Class, and the SL-Class, SLR McLaren and SLS sports cars.
"T" indicates "Touring" and an estate (or station wagon) body style.
Some models in the 1950s also had lower-case letters (b, c, and d) to
indicate specific trim levels. For other models, the numeric part of the
designation does not match the engine displacement. This was done to
show the model's position in the model range independent of displacement
or in the price matrix. For these vehicles, the actual displacement in liters is
suffixed to the model designation. An exception was the 190-class with the
numeric designation of "190" as to denote its entry level in the model along
with the displacement label on the right side of the boot (190E 2.3 for 2.3-
litre 4-cylinder petrol motor, 190D 2.5 for 2.5-litre 5-cylinder diesel motor,
and so forth). Some older models (such as the SS and SSK) did not have a
number as part of the designation at all.
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For the 1994 model year, Mercedes-Benz revised the naming system.
Models were divided into "classes" denoted by an arrangement of up to
three letters (see "Current model range" above), followed by a three-digit
(or two-digit for AMG models, with the number approximately equal to the
displacement in litres multiplied by 10) number related to the engine
displacement as before. Variants of the same model such as an estate
version or a vehicle with a diesel engine are no longer given a separate
letter. The SLR, SLS and GT supercars do not carry a numerical
designation.
Today, many numerical designations no longer reflect the engine's actual
displacement but more of the relative performance and marketing position.
Despite its engine displacement in two litres, the power plant in the A45
AMG produces 355 brake horsepower so the designation is higher as to
indicate the greater performance. Another example is the E250 CGI having
greater performance than the E200 CGI due to the different engine tuning
even though both have 1.8-litre engines. From the marketing perspective,
E200 seems more "upscale" than E180. Recent AMG models use the "63"
designation (in honor of the 1960s 6.3-litre M100 engine) despite being
equipped with either a 6.2-litre (M156) or 5.5-litre (M157) engine.
Some models carry further designations indicating special features:
"4MATIC" indicates the vehicle is equipped with all-wheel-drive.
"Blue TEC" indicates a diesel engine with selective catalytic reduction
exhaust after treatment.
"Blue EFFICIENCY" indicates special fuel economy features (direct
injection, start-stop system, aerodynamic modifications, etc.)
"CGI" (Charged Gasoline Injection) indicates direct gasoline injection.
"CDI" (Common-rail Direct Injection) indicates a common-rail diesel
engine.
"Hybrid" indicates a petrol- or diesel-electric hybrid.
"NGT" indicates a natural gas-fueled engine.
"Kompressor" indicates a supercharged engine.
"Turbo" indicates a turbocharged engine, only used on A-, B-,E- and
GLK-Class models.
"AMG Line" indicates the interior or engine, depending which car, has
been fitted with the luxuries of their AMG sports cars
Model designation badges can be deleted at the request of the customer.
MAEER’s MIT College Of Management, Pune Page 19
For the 1994 model year, Mercedes-Benz revised the naming system.
Models were divided into "classes" denoted by an arrangement of up to
three letters (see "Current model range" above), followed by a three-digit
(or two-digit for AMG models, with the number approximately equal to the
displacement in litres multiplied by 10) number related to the engine
displacement as before. Variants of the same model such as an estate
version or a vehicle with a diesel engine are no longer given a separate
letter. The SLR, SLS and GT supercars do not carry a numerical
designation.
Today, many numerical designations no longer reflect the engine's actual
displacement but more of the relative performance and marketing position.
Despite its engine displacement in two litres, the power plant in the A45
AMG produces 355 brake horsepower so the designation is higher as to
indicate the greater performance. Another example is the E250 CGI having
greater performance than the E200 CGI due to the different engine tuning
even though both have 1.8-litre engines. From the marketing perspective,
E200 seems more "upscale" than E180. Recent AMG models use the "63"
designation (in honor of the 1960s 6.3-litre M100 engine) despite being
equipped with either a 6.2-litre (M156) or 5.5-litre (M157) engine.
Some models carry further designations indicating special features:
"4MATIC" indicates the vehicle is equipped with all-wheel-drive.
"Blue TEC" indicates a diesel engine with selective catalytic reduction
exhaust after treatment.
"Blue EFFICIENCY" indicates special fuel economy features (direct
injection, start-stop system, aerodynamic modifications, etc.)
"CGI" (Charged Gasoline Injection) indicates direct gasoline injection.
"CDI" (Common-rail Direct Injection) indicates a common-rail diesel
engine.
"Hybrid" indicates a petrol- or diesel-electric hybrid.
"NGT" indicates a natural gas-fueled engine.
"Kompressor" indicates a supercharged engine.
"Turbo" indicates a turbocharged engine, only used on A-, B-,E- and
GLK-Class models.
"AMG Line" indicates the interior or engine, depending which car, has
been fitted with the luxuries of their AMG sports cars
Model designation badges can be deleted at the request of the customer.
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MAEER’s MIT College Of Management, Pune Page 20
Chapter 3
International Marketing
Mercedes-Benz is a brand that is well recognized around the world and it
was rated among the top ten most recognizable brands in the world by
"Business Week Magazine"
Mercedes-Benz was purely into domestic production and exporting out for
sales until the early 1990s when it started international production and now
for the last decade it has successfully established it self in a lot of
international production due to the increase in demand and in the attempt
to reduce cost and that has improved the sales of Mercedes-Benz with
1,279,100 units of Mercedes-Benz passenger cars up to 9% worldwide with
China increasing by +35%, Brazil +41%, USA +14%, Russia +47%, Japan
+4%, South, Korea +27%, India +28%, Germany -1%, Taiwan +34 %,
Western Europe(without G.) -1%, Canada +3% in their major markets.
Marketing Mix
For any successful marketing a company has to have a good mix of its
marketing strategy known as the 4P's which includes
The right Product
Selling it at the right Price
Targeting the right Place
Making the best and effective Promotion
For all the marketing mix listed above to work well you have to meet up
with the following conditions
You have to make all the right features available on your product.
Price must be worth the good they are paying for
Availability of the product when and where it's needed it's important to
make it easy to reach at a low cost.
MAEER’s MIT College Of Management, Pune Page 20
Chapter 3
International Marketing
Mercedes-Benz is a brand that is well recognized around the world and it
was rated among the top ten most recognizable brands in the world by
"Business Week Magazine"
Mercedes-Benz was purely into domestic production and exporting out for
sales until the early 1990s when it started international production and now
for the last decade it has successfully established it self in a lot of
international production due to the increase in demand and in the attempt
to reduce cost and that has improved the sales of Mercedes-Benz with
1,279,100 units of Mercedes-Benz passenger cars up to 9% worldwide with
China increasing by +35%, Brazil +41%, USA +14%, Russia +47%, Japan
+4%, South, Korea +27%, India +28%, Germany -1%, Taiwan +34 %,
Western Europe(without G.) -1%, Canada +3% in their major markets.
Marketing Mix
For any successful marketing a company has to have a good mix of its
marketing strategy known as the 4P's which includes
The right Product
Selling it at the right Price
Targeting the right Place
Making the best and effective Promotion
For all the marketing mix listed above to work well you have to meet up
with the following conditions
You have to make all the right features available on your product.
Price must be worth the good they are paying for
Availability of the product when and where it's needed it's important to
make it easy to reach at a low cost.
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MAEER’s MIT College Of Management, Pune Page 21
Awareness is a key factor of marketing, letting the public know about your
product and its feature is very important, That way they might be convinced
into giving the product a chance.
Product
When you hear the word "Product" what comes to mind are the packages
that makes it a product like the physical, service and symbol of that
particular thing you want. With these we can say a product strategy
includes the design, trademarks, guarantees, warrantees, product image
and brand name and all this helps prove superiority over competitor rivals,
Mercedes-Benz is known for its innovation, advanced technology and
constant research to keep its product as number one for what its known for,
which are its Luxury, Safety and powerful engine, Already known for its
class Mercedes has introduced "Blue Efficiency" to cut down the emissions
of CO2 and to keep up with its rival company that has a low consumption of
fuel or diesel at the same time giving its customers an efficient Mobility.
Mercedes has a high resale value and it's the first automobile manufacturer
to introduce the Automatic Breaking System (ABS), Airbag and pre-
tensioning devices on its vehicles. All these are what make its product
brand unique from the rest. Mercedes-Benz are known for its durability to
last very long and still drive very well, Which is a good attribute in the auto
world.
Price
This is the amount a customer is willing to pay for a product because it's
worth it. Every customer wants to make sure whatever product they are
getting is worth what they are paying for it. That's why Mercedes has taken
its time to make its product of the finest quality like the use of Alloy steel
and Aluminum, which is why Mercedes-Benz is seen as a prestige or class
for the rich in the society, this explains why Mercedes have targeted the
rich in its business strategy. When pricing a good its good not to over value
it to the customer and not undervalue it to avoid loss to the company,
That's why a good marketing strategy is needed to keep the balance.
Mercedes makes sure its products are worth the value and prices by
meeting up with the needs of its customers. Its an expensive product and
all its parts are expensive as well which makes it affordable by the rich,
which is why its simply known as Class.
MAEER’s MIT College Of Management, Pune Page 21
Awareness is a key factor of marketing, letting the public know about your
product and its feature is very important, That way they might be convinced
into giving the product a chance.
Product
When you hear the word "Product" what comes to mind are the packages
that makes it a product like the physical, service and symbol of that
particular thing you want. With these we can say a product strategy
includes the design, trademarks, guarantees, warrantees, product image
and brand name and all this helps prove superiority over competitor rivals,
Mercedes-Benz is known for its innovation, advanced technology and
constant research to keep its product as number one for what its known for,
which are its Luxury, Safety and powerful engine, Already known for its
class Mercedes has introduced "Blue Efficiency" to cut down the emissions
of CO2 and to keep up with its rival company that has a low consumption of
fuel or diesel at the same time giving its customers an efficient Mobility.
Mercedes has a high resale value and it's the first automobile manufacturer
to introduce the Automatic Breaking System (ABS), Airbag and pre-
tensioning devices on its vehicles. All these are what make its product
brand unique from the rest. Mercedes-Benz are known for its durability to
last very long and still drive very well, Which is a good attribute in the auto
world.
Price
This is the amount a customer is willing to pay for a product because it's
worth it. Every customer wants to make sure whatever product they are
getting is worth what they are paying for it. That's why Mercedes has taken
its time to make its product of the finest quality like the use of Alloy steel
and Aluminum, which is why Mercedes-Benz is seen as a prestige or class
for the rich in the society, this explains why Mercedes have targeted the
rich in its business strategy. When pricing a good its good not to over value
it to the customer and not undervalue it to avoid loss to the company,
That's why a good marketing strategy is needed to keep the balance.
Mercedes makes sure its products are worth the value and prices by
meeting up with the needs of its customers. Its an expensive product and
all its parts are expensive as well which makes it affordable by the rich,
which is why its simply known as Class.
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MAEER’s MIT College Of Management, Pune Page 22
Place
The availability of a product is good for customers, not just being available
online customers need to feel, touch and even test the product they want to
buy before paying for it. Mercedes has provided show rooms for its
products in almost all the developing countries, Importation of vehicles use
to cost a lot on Mercedes that's why they have decided to make its
products available in countries by now manufacturing them in different
countries, like what is happening in India right now, this will help reduce
cost and taxes. Mercedes has concentrated on its major markets and doing
everything to meet up with the demands there and working on getting the
middle class and middle aged of the society by providing cars that better
suit them, Talking about style and luxury mixed together, Providing all the
features a young mind will be thrilled about while still maintaining its
standard,
Promotion
Is your ability to communicate and convince the customers by giving them
reasons to buy your product, Mercedes does not need much here has its
name already speaks volumes and is well recognize over the world,
Already using the slogan "The Best or nothing" in its adverts gives all the
impression you want as a customer, Knowing that the product you buying is
the best gives you that extra drive to go for it. This explains why companies
spend so much on adverts. Good warranty policy like being able to extend
your warranty after the original one expires.
Sponsorship like the deals with Formula 1 race, Polo matches, creating
apps for new technology like iPhone and Samsung, Fashion shows and
other promotional activities.
Mercedes has made evolution strategy one of its strongest point, These
explains why in the past decades Mercedes has expanded its range of
vehicles in sizes and shapes with the introduction of the M-Class, A-class
and most recently the B-Class and the acceptance of this strategy by its
customers has been seen all over the world by the number of sales already
made in the market.
MAEER’s MIT College Of Management, Pune Page 22
Place
The availability of a product is good for customers, not just being available
online customers need to feel, touch and even test the product they want to
buy before paying for it. Mercedes has provided show rooms for its
products in almost all the developing countries, Importation of vehicles use
to cost a lot on Mercedes that's why they have decided to make its
products available in countries by now manufacturing them in different
countries, like what is happening in India right now, this will help reduce
cost and taxes. Mercedes has concentrated on its major markets and doing
everything to meet up with the demands there and working on getting the
middle class and middle aged of the society by providing cars that better
suit them, Talking about style and luxury mixed together, Providing all the
features a young mind will be thrilled about while still maintaining its
standard,
Promotion
Is your ability to communicate and convince the customers by giving them
reasons to buy your product, Mercedes does not need much here has its
name already speaks volumes and is well recognize over the world,
Already using the slogan "The Best or nothing" in its adverts gives all the
impression you want as a customer, Knowing that the product you buying is
the best gives you that extra drive to go for it. This explains why companies
spend so much on adverts. Good warranty policy like being able to extend
your warranty after the original one expires.
Sponsorship like the deals with Formula 1 race, Polo matches, creating
apps for new technology like iPhone and Samsung, Fashion shows and
other promotional activities.
Mercedes has made evolution strategy one of its strongest point, These
explains why in the past decades Mercedes has expanded its range of
vehicles in sizes and shapes with the introduction of the M-Class, A-class
and most recently the B-Class and the acceptance of this strategy by its
customers has been seen all over the world by the number of sales already
made in the market.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 23
Internationalization Process Theory
Porters Diamond Internalization process best describes the theory
Mercedes-Benz has undertaken, Porters diamond process characterized
the reasons why some industries in some countries are more competitive
on global scales than their rivals. It argues that some countries provide
some specific home advantages which will prove an edge over its rivals on
global scale.
The four determinants of these porters' models are
Factor Conditions
Demand Conditions
Related and supporting Industries
Firm Strategy, Structure and Rivalry
Factor Conditions
This factors are normally not noticed at the initial process but with time its
that factor that gives the competitive edge to a nation. This is because it's
the reputation built by companies in a country that grows to be an
advantage as time goes on. This includes factors like the workforce which
can heighten a company's tolerance on defects and focus on automation
other factor conditions include
Workforce Shortage
Availability of raw materials
Highly skilled workforce
This is what has given the niche to Germany when it comes to automobile,
and got it the nick name "German Engineering" and Mercedes has gained
from this recognition as well as contributed to making the country known for
it, Known for its skilled work force, German cars are now synonymous with
class, Prestige, Safety and luxury because of the local competition
amongst the local companies to be the best in that department which has
now given the company the global competitive edge.
MAEER’s MIT College Of Management, Pune Page 23
Internationalization Process Theory
Porters Diamond Internalization process best describes the theory
Mercedes-Benz has undertaken, Porters diamond process characterized
the reasons why some industries in some countries are more competitive
on global scales than their rivals. It argues that some countries provide
some specific home advantages which will prove an edge over its rivals on
global scale.
The four determinants of these porters' models are
Factor Conditions
Demand Conditions
Related and supporting Industries
Firm Strategy, Structure and Rivalry
Factor Conditions
This factors are normally not noticed at the initial process but with time its
that factor that gives the competitive edge to a nation. This is because it's
the reputation built by companies in a country that grows to be an
advantage as time goes on. This includes factors like the workforce which
can heighten a company's tolerance on defects and focus on automation
other factor conditions include
Workforce Shortage
Availability of raw materials
Highly skilled workforce
This is what has given the niche to Germany when it comes to automobile,
and got it the nick name "German Engineering" and Mercedes has gained
from this recognition as well as contributed to making the country known for
it, Known for its skilled work force, German cars are now synonymous with
class, Prestige, Safety and luxury because of the local competition
amongst the local companies to be the best in that department which has
now given the company the global competitive edge.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 24
Demand Conditions
A demanding market calls for improvement to meet up with customer
needs and taste through innovation and quality this will increase the
competition among local exporting companies on a global scale. This home
pressure makes them strive for more improvement.
The demand for Mercedes-Benz and constant request from customers for
improvement has increased the innovative ideas of Mercedes, Leading to
the introduction of different shapes of cars and expanding its customer
target, By now introducing cars that suit not just the elderly people but also
the young and middle class of the society and not shifting from its class and
all the things its known for, This constant demand has lead to the
introduction of B-class, A-class and the ML-class which is its strongest
selling point now. Mercedes looks at the market where its most needed and
concentrate on doing everything to make the supplies meet with the
demand, With its biggest market now in India and China Mercedes has
moved into local production just so they can meet with the demand and
save cost, Introducing coaches and mini cars into china all in other to
satisfy the demand for the use of Mercedes. This strategy has worked very
well for Mercedes which is why its profits increases with every year that
pass with 2011 being its highest profit of all time and already surpassing
that record with the quarter of the year sales of 2012. This proves that the
demand for Mercedes and its strategic plans to meet with it has been
working very well.
Related Supporting industries
When all local companies are competitive strong and creative, they tend to
learn from their respective ideas, This is why some countries are known to
be the best in a particular product than the other countries, because the
share knowledge and experience revolves round them to give them that
national symbol for that particular goods.
Mercedes, Volkswagen, BMW and Porsche are all synonymous with good
engineering work, Innovation, technology and expensive to own because of
its fine and quality finishing. Their competitive battle makes them strive for
more and always trying to go one better than the other, so whatever
technology that is introduced by one the others try to give a better
technology.
MAEER’s MIT College Of Management, Pune Page 24
Demand Conditions
A demanding market calls for improvement to meet up with customer
needs and taste through innovation and quality this will increase the
competition among local exporting companies on a global scale. This home
pressure makes them strive for more improvement.
The demand for Mercedes-Benz and constant request from customers for
improvement has increased the innovative ideas of Mercedes, Leading to
the introduction of different shapes of cars and expanding its customer
target, By now introducing cars that suit not just the elderly people but also
the young and middle class of the society and not shifting from its class and
all the things its known for, This constant demand has lead to the
introduction of B-class, A-class and the ML-class which is its strongest
selling point now. Mercedes looks at the market where its most needed and
concentrate on doing everything to make the supplies meet with the
demand, With its biggest market now in India and China Mercedes has
moved into local production just so they can meet with the demand and
save cost, Introducing coaches and mini cars into china all in other to
satisfy the demand for the use of Mercedes. This strategy has worked very
well for Mercedes which is why its profits increases with every year that
pass with 2011 being its highest profit of all time and already surpassing
that record with the quarter of the year sales of 2012. This proves that the
demand for Mercedes and its strategic plans to meet with it has been
working very well.
Related Supporting industries
When all local companies are competitive strong and creative, they tend to
learn from their respective ideas, This is why some countries are known to
be the best in a particular product than the other countries, because the
share knowledge and experience revolves round them to give them that
national symbol for that particular goods.
Mercedes, Volkswagen, BMW and Porsche are all synonymous with good
engineering work, Innovation, technology and expensive to own because of
its fine and quality finishing. Their competitive battle makes them strive for
more and always trying to go one better than the other, so whatever
technology that is introduced by one the others try to give a better
technology.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 25
Effect of Country of Origin on Mercedes-Benz
The effect of country of origin on a product or brand can either be positive
or negative in the mind of the customers and how the products are rated
generally. Germany one of the greatest country in the world and a world
power in terms of economy and politically, A member of the G8. Its
economy is among the 5 largest in the world, Germany is the world number
one exporter of goods and third exporter of services, not withstanding that it
only represents 1.5% of the world population. Fourth largest producer of
automobiles. (GERMANY AND GLOBALIZATION)
Germany is generally known for its engineering, which is niche. "Made in
Germany" is a worldwide symbol for reliability, quality and innovative
engineering. The effect and assumption of consumers on products based
on their country of origin has been an increasing stereotyping and has
called more concentration from the managers on how it affects their sales
and now manufacturers are not just interested in where they can find cheap
labor anymore but are now worried on the label of where it's made from
that it comes with.
In this case Germans are generally known for luxury cars and big engines,
with the 4 major automobile company in Germany (Mercedes-Benz,
Porsche, BMW, Volkswagen) known for their durability, safety, innovation
and luxury this has given them the nick name "German Engineering", Their
similarity in engine power and technology feature makes them unique from
other cars. This is a positive image that has given them a vital edge over
their rivals for their quality finish. Germany is the first country to build a
modern car with internal-combustion engine (SECRET HISTORY) also
known for its innovation and discoveries made by Germans, The stable
political state there has also been good on its automobile industry.
But when you going to the market with the hope to get a car for its luxury,
engine ability, safety, Class, technology, performance, well recognized and
respected the first thing that comes to mind is the German car. That is the
kind of image its tag with now and it's a positive advantage for Mercedes-
Benz as its cars are made to target the top class and middle class of the
society. German cars are no working on making their cars more efficiency,
which explains why Mercedes-Benz has introduced its blue efficiency to
help reduce its consumption rate at the same time increasing the engine
power.
MAEER’s MIT College Of Management, Pune Page 25
Effect of Country of Origin on Mercedes-Benz
The effect of country of origin on a product or brand can either be positive
or negative in the mind of the customers and how the products are rated
generally. Germany one of the greatest country in the world and a world
power in terms of economy and politically, A member of the G8. Its
economy is among the 5 largest in the world, Germany is the world number
one exporter of goods and third exporter of services, not withstanding that it
only represents 1.5% of the world population. Fourth largest producer of
automobiles. (GERMANY AND GLOBALIZATION)
Germany is generally known for its engineering, which is niche. "Made in
Germany" is a worldwide symbol for reliability, quality and innovative
engineering. The effect and assumption of consumers on products based
on their country of origin has been an increasing stereotyping and has
called more concentration from the managers on how it affects their sales
and now manufacturers are not just interested in where they can find cheap
labor anymore but are now worried on the label of where it's made from
that it comes with.
In this case Germans are generally known for luxury cars and big engines,
with the 4 major automobile company in Germany (Mercedes-Benz,
Porsche, BMW, Volkswagen) known for their durability, safety, innovation
and luxury this has given them the nick name "German Engineering", Their
similarity in engine power and technology feature makes them unique from
other cars. This is a positive image that has given them a vital edge over
their rivals for their quality finish. Germany is the first country to build a
modern car with internal-combustion engine (SECRET HISTORY) also
known for its innovation and discoveries made by Germans, The stable
political state there has also been good on its automobile industry.
But when you going to the market with the hope to get a car for its luxury,
engine ability, safety, Class, technology, performance, well recognized and
respected the first thing that comes to mind is the German car. That is the
kind of image its tag with now and it's a positive advantage for Mercedes-
Benz as its cars are made to target the top class and middle class of the
society. German cars are no working on making their cars more efficiency,
which explains why Mercedes-Benz has introduced its blue efficiency to
help reduce its consumption rate at the same time increasing the engine
power.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 26
Mission, Vision & Values
Passion to Serve
The Dilawri Group of Companies is committed to offering world class
products and customer service that builds lifetime customer relationships.
Uncompromised Excellence
The Dilawri Group of Companies strives to deliver complete customer
satisfaction in all areas of our business through our passion, continuous
innovation and the development and operation of state-of-the-art
automotive dealerships.
MAEER’s MIT College Of Management, Pune Page 26
Mission, Vision & Values
Passion to Serve
The Dilawri Group of Companies is committed to offering world class
products and customer service that builds lifetime customer relationships.
Uncompromised Excellence
The Dilawri Group of Companies strives to deliver complete customer
satisfaction in all areas of our business through our passion, continuous
innovation and the development and operation of state-of-the-art
automotive dealerships.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 27
Core Values
The Dilawri Group of Companies and its employees are guided every day
by a set of values that serve as the foundation for how we operate.
Passion for Excellence
To be the best, all the time.
Customer Focused
We ensure every customer is satisfied.
Teamwork
We promote an environment of collaboration and respect.
Integrity
We are professional, ethical, honest and accountable.
Willingness to Grow
We continuously innovate and improve.
Make a Difference
We support the communities we serve.
MAEER’s MIT College Of Management, Pune Page 27
Core Values
The Dilawri Group of Companies and its employees are guided every day
by a set of values that serve as the foundation for how we operate.
Passion for Excellence
To be the best, all the time.
Customer Focused
We ensure every customer is satisfied.
Teamwork
We promote an environment of collaboration and respect.
Integrity
We are professional, ethical, honest and accountable.
Willingness to Grow
We continuously innovate and improve.
Make a Difference
We support the communities we serve.
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 28
Chapter 4
Current Models
MAEER’s MIT College Of Management, Pune Page 28
Chapter 4
Current Models
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 29
MAEER’s MIT College Of Management, Pune Page 29
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 30
MAEER’s MIT College Of Management, Pune Page 30
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 31
MAEER’s MIT College Of Management, Pune Page 31
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 32
Chapter 5
Conclusion
Mercedes-Benz has been around for over a 100years and it still maintains
its niche in all the aspects its been known for right from the start which
stands for Luxury, Safety, Comfort and Class in the society like no other
brand, Its still the number one choice for the old, middle aged and young
that reflects in the sales and constant demand for it in developing countries.
Using the marketing mix above we can conclude that Mercedes has taken
the right approach in its International marketing strategy mix with the
constant increase in sales and a new record sales last year already been
surpassed by the first quarter sales this year.
Its Introduction of newer models has been really encouraging with good
turn over, Its diversification in buses, trucks and coaches has increased its
customer base like in china a lot of the chauffeurs there are Mercedes
Benz along with the buses which serve as commercial cars in the
developed countries and these products are usually bought in bulk cause
they are meant for commercial transportation means which is the target
market. Already known for its durability and now adding the blue efficiency
to its new cars it will be hard for people to choose other brand ahead of
Mercedes. All this factors will sure help increase its presence and demand
in the automobile industry.
Its pricing is really high and I think that strategy has paid off for Mercedes
as it helps keep the cliché its known for, generally in life the rich loves
being unique and outstanding among everyone else by their appearance
and having a Mercedes makes that easy. That's the same reason people
go to expensive bars to get a class of champagne for a 100usd when they
can get that same glass for 10usd somewhere else but they opt for the
latter cause of their status and comfort to make people know they are that
rich and comfortable, So I will say that's a good strategy in the world today,
everyone doing well today either has a Mercedes or is saving to get one
MAEER’s MIT College Of Management, Pune Page 32
Chapter 5
Conclusion
Mercedes-Benz has been around for over a 100years and it still maintains
its niche in all the aspects its been known for right from the start which
stands for Luxury, Safety, Comfort and Class in the society like no other
brand, Its still the number one choice for the old, middle aged and young
that reflects in the sales and constant demand for it in developing countries.
Using the marketing mix above we can conclude that Mercedes has taken
the right approach in its International marketing strategy mix with the
constant increase in sales and a new record sales last year already been
surpassed by the first quarter sales this year.
Its Introduction of newer models has been really encouraging with good
turn over, Its diversification in buses, trucks and coaches has increased its
customer base like in china a lot of the chauffeurs there are Mercedes
Benz along with the buses which serve as commercial cars in the
developed countries and these products are usually bought in bulk cause
they are meant for commercial transportation means which is the target
market. Already known for its durability and now adding the blue efficiency
to its new cars it will be hard for people to choose other brand ahead of
Mercedes. All this factors will sure help increase its presence and demand
in the automobile industry.
Its pricing is really high and I think that strategy has paid off for Mercedes
as it helps keep the cliché its known for, generally in life the rich loves
being unique and outstanding among everyone else by their appearance
and having a Mercedes makes that easy. That's the same reason people
go to expensive bars to get a class of champagne for a 100usd when they
can get that same glass for 10usd somewhere else but they opt for the
latter cause of their status and comfort to make people know they are that
rich and comfortable, So I will say that's a good strategy in the world today,
everyone doing well today either has a Mercedes or is saving to get one
MBA Semester - 1
MAEER’s MIT College Of Management, Pune Page 33
just so they can have a better reception when they arrive for an occasion or
a business meeting.
Another aspect of its strategy that Mercedes has worked on is its local
production idea, for the past decade Mercedes has moved into producing
its products in countries where they have the biggest customer base, this is
a very good idea to cut cost of transportation from Germany to other
countries and to help reduce taxes and other cost imposed on imported
cars, now with local production they will be avoiding all the policy placed on
imported cars and will be able to meet up with the demands of the people,
Having showrooms makes it easy for people to come and test drive what
they want to buy before paying for it, and it attracts more people to your
product as they have this internal feeling that they are close to the
company and it won't be difficult to fix a problem with the car should there
be the need for it.
MAEER’s MIT College Of Management, Pune Page 33
just so they can have a better reception when they arrive for an occasion or
a business meeting.
Another aspect of its strategy that Mercedes has worked on is its local
production idea, for the past decade Mercedes has moved into producing
its products in countries where they have the biggest customer base, this is
a very good idea to cut cost of transportation from Germany to other
countries and to help reduce taxes and other cost imposed on imported
cars, now with local production they will be avoiding all the policy placed on
imported cars and will be able to meet up with the demands of the people,
Having showrooms makes it easy for people to come and test drive what
they want to buy before paying for it, and it attracts more people to your
product as they have this internal feeling that they are close to the
company and it won't be difficult to fix a problem with the car should there
be the need for it.
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