Mercedes India Competitive Strategies
Mercedes India Competitive Strategies
Mercedes India Competitive Strategies
Mercedes-Benz
Type Industry Predecessor Founded Founder(s) Headquarters Area served Key people Products Production
: Division of Daimler AG : Manufacturing : Benz, Daimler Motoren Gesellschaft : 1926 : Karl Benz ,Gottlieb Daimler : Stuttgart, Germany : Worldwide : Dieter Zetsche (Head Mercedes-Benz Car Division) : Automobiles,Trucks,Buses,Financial services : Europe, Asia, Africa, North & South America
: 100%-owned Subsidiary of Daimler AG : Automative : 1994 : Pune, Maharashtra : Peter T. Honegg , MD &CEO : Luxury & Commercial vehicles : Daimler AG : Chennai & Pune
The C-Class and E-Class are assembled locally others are fully imported
from Germany
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Local production of Mercedes-Benz cars, Making available imported Mercedes-Benz cars, Commercial Vehicle operations, Global sourcing of auto components, Innovation and R&D.
Biofuel from Jatropha Automotive mechatronics Road safety project for children Automotive education, etc
Strengths of Mercedes
World Class Dealer & service network: 22 dealerships across 17 cities in 11 states and 2 Union territories. Service Stations in 32 cites in 16 states and 2 Union territories of India. Core Competencies : Name ,Quality & Innovation
Positioned itself as player in Niche Segment which reflects a symbol of status, luxury & comfort. Known for its standards of safety , quality, innovative drive & visual appeal
The top 100 most trusted brands of India (The Brand Trust Report)
Won the Best Brand Award by Auto India Best Brand Awards 2011.
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Industry Analysis
In Asia, India is the second biggest market for luxury cars after China &
will be amongst the top 3-4 markets , along with Germany, United States and China. Luxury car majors in India - Mercedes-Benz, BMW and Audi put together have around 85% market share. BMW & Audi Most direct competitors The luxury car market in India is estimated at around 15,000 units annually The Indian luxury car market is favorable for new entrants capable of grabbing the untapped opportunities by following the customer-oriented approach.
have gained some market share last year. We are not afraid of competition, competition helps you and it is necessary.
Peter T. Honegg , MD &CEO If I talk about my rivals, mainly BMW, their path to leadership has been
built on discounting, model strip downs and low-entry cars. This is not what Mercedes does. We are clear on maintaining our product quality and brand, while having an aggressive pricing. A stripped down model really does not work for Mercedes and the luxury customers. Mercedes is not there in certain segments like the mini SUV category, which has given rivals an edge in volumes. Debasis Mitra, Director (sales and marketing)
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market by more sportier cars as the profile of new luxury car owners is changing with younger professionals while Mercedes Benz portfolio has some dated cars
BMWs aggressive marketing, fast expansion of product profiles,
provided by Mercedes-Benz.
In the Indian scenario, the luxury cars are generally chauffeur-driven. This
trend has been well-imbibed by BMW as it has focused more on back-seat facilities during designing and marketing.
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competes with Mercedes-Benz having 32 dealership locations because it has strategically expanded its dealership network to higher demand luxury car markets.
In next phase BMW is planning to target emerging tier 1 and 2 cities to
compete with Mercedes whose 25-30% sales revenue comes from tier 2 cities.
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Competitive Strategies
part 1 of 2
Tap markets which are still virgin (semi-urban cities) Position products properly & play around it Opening of its financial arm (The Daimler Financial Services) Planning to introduce the leasing concept in the luxury car market Focus on localisation Investment in customer relationship(digital marketing) Safety innovation (state-of-the-art safety features)
Competitive Strategies
part 2 of 2
Mercedes-Benz to partner the Indian Grand Prix (F1) Building brand centre in India at Gurgaon & Mumbai.
with
all
new
E-class
with the launch of the E 350 CDI Blue EFFICIENCY vehicle in E-class
To reduce fuel consumption & reducing CO2 emissions up to
23%.
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Benz at an irresistible price. Program has been in existence since 2009 and operates across 35 countries presently & uptil now 400 vehicles sold through this route.
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Demand dip...
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Reactions
Luxury car sales constituted around 1.5% of sales of all passenger cars in
2010
To maintain sales traction, luxury players : Intensified marketing strategies, Started price subventions ( in entry-level products like BMW 3 Series,
Mercedes-Benz Class and the Audi A4 which form the bulk of sales of luxury cars),
Discounts range up to Rs 4-5 lakhs.
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THANK YOU
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