Introduction To Mercedes Benz
Introduction To Mercedes Benz
Introduction To Mercedes Benz
manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks.
Benz's slogan is "Das Beste oder nichts" in German and literally incorporated in English as "The
best or nothing". Mercedes-Benz is part of the "German Big 3" luxury automakers, along with
Audi and BMW, which are the best-selling luxury automakers in the world.
Few inventions have had as enduring an influence on the world's development as the invention of
the automobile. The pioneers of automobile manufacture towards the end of the 19th century
were Gottlieb Daimler (pictured below) (1834-1900) and Carl Benz (pictured below) (1844 1929).
They set up the predecessor companies, which merged to form Daimler-Benz AG in 1926 –,
Daimler with his Daimler Motorengesellschaft (DMG) and Benz with his Rheinische
Gasmotorenfabrik.
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At the 1876 World Exposition in Philadelphia, Wilhelm Maybach (pictured above) had made the
acquaintance of William Steinway and introduced him to Gottlieb Daimler at the end of the
1880s. Following his visit to Cannstatt, Steinway secured himself the contractual right of
exclusive representation for the entire Daimler product range in the USA and Canada.
Carl Benz did not manage to forge closer foreign contacts until the end of the 19th century. In
addition to Britain, he celebrated surprising successes in the USA and South Africa.
Apart from their efforts to gain a foothold in foreign markets, both pioneers pressed ahead with
the continuous technical improvement of their products. For instance, Wilhelm Maybach,
This innovation represented a major breakthrough in engine design and the principle behind it is
still applied to this day. The first major long-distance tours in France and Britain demonstrated
the superiority of the petrol engine over its steam counterpart. The outstanding performance of
the Daimler engines marked the technical breakthrough for the automobile. The company had
DMG decided to enlarge its factory and transferred production from Cannstatt to Untertürkheim
in December 1903.
From the very outset, both company founders were committed to the highest quality standards
("the best of the good", "the best or nothing"), a characteristic of the company to this day. In the
period preceding the First World War, despite increasing competition the enterprises founded by
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the pioneers developed into world-leading manufacturers of passenger cars and commercial
vehicles.
As in other industries, the companies strived to form larger units in order to achieve economies
of scale. After initially entering into a joint venture with the aim of rationalising production, and
with a major role also being played by Deutsche Bank, the two companies Daimler
Motorengesellschaft and Benz & Cie. finally merged in 1926 to form Daimler-Benz AG with its
In 1928 the German automaker had only four basic models in the medium-size and luxury car
S, SS and SSK (pictured on the right) was the showcase model of the
During the period from 1949 to 1960, in the fast-expanding German automotive industry
Daimler-Benz AG succeeded in regaining the position it had enjoyed before the Second World
War. As early as 1954 the company cracked the billion mark in terms of turnover and with that
assembly operations, production of the vehicles took place in Germany alone. New cars and
successes in motorsport events, such as the Carrera Panamericana Mexico and Grand Prix racing,
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The Mercedes-Benz 300 SL Gullwing (pictured on the right),
The launch of the “tailfin Mercedes” in 1959 represented a milestone in the field of automotive
safety. For the first time, the concept of front and rear crumple zones in conjunction with a rigid
The company’s rapid growth can be attributed not least of all to exports, despite the high
absorptive capacity of the German market. Following the Second World War the Board of
Management even gave exports priority over domestic sales. The increasing concentration on
foreign markets led to foreign sales cracking the billion mark for the first time in 1959.
The most attractive export market was America, where Daimler-Benz of North America Inc. was
set up in 1955.
The breakthrough in the US market was achieved together with American car dealer Maximilian
E. Hoffmann. The 300 SL Gullwing and the 190 SL were successfully launched on the American
Daimler-Benz, an all-rounder of the automotive industry, retained its outstanding position in the
international motor-vehicle markets in the 1960s and 1970s while the industry overall was
subject to sharp fluctuations in sales. In Europe, Daimler-Benz was leader both in the production
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With the significant increase in sales and production in the 1960s and 1970s the company
continued the steady upward trend that had prevailed since war's end and was not even
interrupted by the oil crisis of 1973, an unusually difficult year for the international automotive
industry.
With new structures and model series Daimler Benz opened up new dimensions in the car and
truck sectors. The company continued to aspire to offer premium products like the S-Class in all
divisions and segments. In this way, it managed to continuously extend the basis of its business.
The second oil crisis at the end of the 1970s, growing environmental discussion, and the advance
of new Asian competitors changed the basic conditions for further development of the company.
With operating results declining overall, the commercial-vehicle sector went into the red. The
sales opportunities for top-quality cars in the markets relevant to Mercedes-Benz also attracted a
cautious assessment.
In 1995 the new Chairman of the Board of Management, Jürgen E. Schrempp, initiated a
strategic realignment of the group, since many of the existing business units did not enjoy a
The portfolio was focused by parting with Fokker, selling Dornier Luftfahrt GmbH and
dissolving AEG. This move, together with measures designed to boost competitiveness, was
intended to strengthen the earning power of the group, which now concentrated on automotive
Extending the core businesses, supplementing them with new products and services, and
improving the competitive position in global terms took priority over new business fields.
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On 7 May 1998, Daimler-Benz Aktiengesellschaft in Germany and Chrysler Corporation in the
Simultaneously, Mercedes-Benz launched a strategic model initiative in the car sector. New
model series like the A, B and M-Class, niche models like the SLK and CLK, and the
develop the small city car smart made Mercedes-Benz a full-line supplier.
The merger with the Chrysler Corporation and the taking of stakes in the Asian automakers
Mitsubishi Motors and Hyundai Motor Company had pursued the aim of making the company a
world-leading automotive group. With an eye to more favorable long-term market prospects, in
2007 the majority stakes in the Chrysler Group and the associated North American financial
services business were sold. The cooperative links with both Mitsubishi Motors and Hyundai
In October 2007, an extraordinary general meeting approved the change of name from
shareholders voted in favour of this change. The renaming of the company involved renaming
also of production facilities and sales organisations both in Germany and overseas. The guiding
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principle behind this name change was the need to make a clear distinction between the company
Some two years later, on 27 April 2009, Daimler AG also relinquished the 19.9 percent stake,
The increasingly gloomy automotive market situation also led to losses at Daimler AG from mid-
2008. In early 2009 Daimler raised its capital stock by about ten percent and gained Aabar
Investments PJSC, an investment company listed in Abu Dhabi, as a new major shareholder. The
company's sound financial position enabled it to continue investing large sums in research &
instability.
This work focused mainly on developing new, alternative drive technologies, which were
deployed, for example, in the B-Class F-Cell, the Concept Blue Zero E-Cell Plus and the S 500
Plug-in Hybrid technology. With these developments, Daimler plays a pioneering role on the
Both in the passenger-car and commercial vehicle sectors, despite the crisis Daimler AG
continued to develop and expand business activities with a view to future market potentials in the
Asian market. The cooperation with Beijing Automotive Industry Holding Company (BAIC) has
resulted in a new production facility in Beijing, which produces the E-Class and C-Class for the
Asian market.
Even after 125 years, Daimler AG carries on the pioneering spirit and outstanding quality
standards of the original founders and sets the pace in the international automotive industry with
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Things to note about Mercedes-Benz
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INTRODUCTION TO MERCEDES-BENZ INDIA PRIVATE LIMITED
Mercedes-Benz India Pvt. Ltd. is a wholly owned subsidiary of the German Daimler AG founded
India Pvt. Ltd. pioneered the luxury car market in India and boasts of more than 128 years of
Daimler entered the Indian market and set up Mercedes-Benz India Ltd in 1994. The company
was renamed DaimlerChrysler India Pvt. Ltd. after the merger of the parent company Daimler
with Chrysler. After DaimlerChrysler sold off most of its equity interests in Chrysler in 2007, it
changed its name to Daimler AG. As a result, DaimlerChrysler India was renamed Mercedes-
Benz India once again. Mercedes-Benz India is a wholly owned subsidiary of the Daimler AG.
among India’s Top 100 Most Trusted Brands published by The Brand Trust Report and also won
the Best Brand Award by Auto India Best Brand Awards in 2011.
With a world class production facility spread over 100 acres in Chakan, near Pune, set up in
2009 and an independent assembly facility for passenger cars; the facility is among the fastest
green-field operations ever to be created and is rated among the top most CKD (Completely
Mercedes-Benz India product portfolio comprises the locally produced S-Class, E-Class, C-
Class, GL-Class and the M-Class. Completely Built Imported cars include the A-Class, CLS-
Class, SLK-Class and the luxury tourer B-Class etc. The product portfolio also comprises
offering the iconic off-roader G 63 AMG as well as a wide range of other AMG performance
cars like the C 63 AMG, E 63 AMG, SLK 55 AMG, GL 63 AMG etc. Mercedes-Benz India’s
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strong focus on its four pillars of Products, Network, Cost of Ownership and Brand experiences
has led the company’s growth story with a total of 64 outlets located in 36 Indian cities, making
Mercedes-Benz has been associated with India for more than 50 years. Presently, Mercedes-Benz
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OBJECTIVES
To study how Mercedes-Benz India Private Limited lost the market leader position to
BMW
To study the new marketing strategy proposed by Mercedes to regain its no. 1 spot
To find how marketing and promotional strategies have helped Mercedes gain the top
spot again
LIMITATIONS
Time was the biggest limitation. The project requires a thorough study, which requires a
The study is based on secondary data and has the limitations pertaining to the usage of
the data.
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RESEARCH METHODOLOGY
Research methodology
According to Reedman and Mary defines research is a “systematic effort to gain knowledge”.
Research Design
A research design is the specification of methods and procedures for Acquiring the information
needed to structure or solve the problem. It is the overall operational pattern or framework of the
project that stimulates what information is to be collected from which source and by what
procedure. This kind of research has the primary objective of development of insights into the
problem. It studies the main area where the problem lies and tries to evaluate some appropriate
courses of action
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Descriptive (Qualitative Research)
Both qualitative and quantitative data were applied to analyse the situation at Mercedes-Benz
Online journals
Literature Review
Most often associated with academic-oriented literature, such as a thesis, dissertation or peer-
reviewed journal article, a literature review usually precedes the methodology and results
section. Literature reviews are also common in a research proposal or prospectus (the document
that is approved before a student formally begins a dissertation or thesis). Its main goals are to
situate the current study within the body of literature and to provide context for the particular
reader. Literature reviews are a staple for research in nearly every academic field.
appraise, select and synthesize all high quality research evidence and arguments relevant to that
question. A meta analysis is typically a systematic review using statistical methods to effectively
combine the data used on all selected studies to produce a more reliable result.
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Secondary Data:
Secondary data are indispensible for most organizational research. Secondary data refer to
information gathered by someone other than the researcher conducting the current study. Such
data can be internal or external to the organization and accessed through the internet or perusal of
recorded or published information. Secondary data can be used, among other things, for
forecasting sales by constructing models based on past sales figures, and through extrapolation.
There are several sources of secondary data, including books and periodicals, Govt. publications
of economic indicators, census data, statistical abstracts, and data bases the media, annual reports
of companies, etc. Case studies and other archival records sources of secondary data provide a
lot of information for research and problem solving. Such data are, as we have seen, mostly
qualitative in nature. Also included in secondary sources are schedules maintained for or by key
personnel in organizations, the desk calendar or executive, and speeches delivered by them.
Much of such internal data, though, could be proprietary and not accessible to all.
The advantage of seeking secondary data sources is savings in time and costs of acquiring
information. However secondary data as the sole source of information as the drawback of
becoming obsolete, and not meeting the specific needs of a particular situation or setting. Hence,
Secondary data in this research was collected through various forms, company’s profile, websites
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LITERATURE REVIEW
PUNE: With DaimlerChrysler officially back to being Daimler AG, the Indian company is
expected to return to being Mercedes-Benz India, the name it came in with over a decade ago, as
This, official sources stated, is because the erstwhile DaimlerChrsyler India had only Mercedes-
Benz products and none of Chrysler's products in the Indian market. All the vehicles launched so
far, bear the three-pointed Mercedes-Benz star and the name. The Indian company is set to
launch its buses soon, which are also products from the parent company, hence remains within
The extraordinary meeting of shareholders held in Berlin on Thursday has approved the name
change to Daimler AG, dropping the Chrysler but not, as some shareholders had wanted, to
Daimler-Benz AG. However, reports in the international media on the meeting note that Dieter
Zetsche, chairman of the German automaker, has sought to reassure shareholders that the
Therefore, in countries where they sell only single, Daimler products will become Mercedes-
Benz followed by the country name. In countries where multiple products are sold, the company
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The Daimler AG website notes, "As part of the renaming of the Group as Daimler AG, the
company's production plants and sales organisations in Germany and abroad will also be
renamed. The guiding principle of the name change process is a clear distinction between the
corporate brand Daimler and the Group's various product brands." "The company will be called
Daimler wherever several product brands are produced or sold, or where the focus is on the
Group as a whole.
Plants and sales organisations that exclusively or primarily produce or sell a single-product brand
will be named after the respective product brand," it said. It has further clarified that where sales
organisations which "exclusively or primarily sell Mercedes-Benz products and will therefore be
MUMBAI: German luxury car major BMW continues to maintain its lead after overtaking arch
rival Mercedes-Benz as the number one luxury car in India through aggressive launches and
dealer network expansions. In April-May 2009, BMW India sold 466 cars as compared to
The third luxury brand Audi, which entered the market later sold 233 units in the same period.
Incidentally, while BMW and Audi report retails sales figures, Mercedes-Benz reports wholesale
figures. BMW overtook Mercedes for the first time in January 2009 as reported by ET.
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BMW hopes to retain the momentum for the rest of the year. "We are bullish about the luxury
car segment and expect a growth of 15-20% this year," said a senior BMW official. In 2008,
BMW sold a total of 2,908 units as compared to 1,293 units in 2007. For the first five months
BMW has sold a total of 1,458 units and Audi has sold a total of 617 units. Mercedes sold 1,141
facility, which account for more than 80% of BMW sales in India.
The X3, X5, and 7 series are imported as completely built units.
Audi plans to launch 4 new models in the next two years. Currently, Audi's portfolio of products
for the Indian market include the A6, A8, Q7, A4, TT and the sports car R8 available at 11
dealerships across the country. The A4 and A6 are manufactured in the country and the rest of
the Audi models are brought in as completely built units (CBU). The Q7 and A6 account for the
BMW and Audi have kept pace with more sportier features and new launches, encouraging
younger buyers. Discounts offered by Mercedes and fewer launches have eroded the brand value,
stuck with inventory, making the German car maker to despatch fewer cars to the dealerships.
The luxury car market continues to show growth trends despite recessionary trends in the car
market. Zero per cent schemes and loyalty programmes, coupled with exchange schemes, have
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ET Bureau Mar 19, 2009, 09.00pm IST
KOLKATA: Mercedes-Benz India is entering the used car space and is also looking to launch
"The used car segment is not organised in India. Currently, dealers out of their own interest sell
used Mercedes vehicles. As an organisation Mercedes, has globally started the business actively
under which we have a standard global used car programme. As part of global programme, it will
also be launched in India soon," said Debasish Mitra, head of marketing and sales, Mercedes-
Benz India.
He was talking to reporters on the sidelines of a press conference to launch of a new Mercedes
"Mercedes-Benz India has sold about 17,000 cars from the time it set up shop in India. However,
estimates are that nearly 25,000 cars have been bought till date in India, as close to 8000 cars
were imported into India before Mercedes-Benz set up shop," said Mr Manas Dewan, general
"We are working to launch the used car programme in India. It will be launched by December
On launching inter-city buses, Mr Dewan said: "Mercedes-Benz India has launched buses suited
for intra-city services, by way of Mercedes-Benz intra-city luxury coaches. We are doing a
market survey on the demand for such buses. This will be followed by designing buses for Indian
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road conditions. The idea is to transport passengers to another city so that they arrive there fresh,
Speaking on dealer networks, Mr Mitra said: "The dealers have committed a total investment of
Rs 150 crore to ramp up infrastructure in 2009. Despite a sagging economy, the luxury car
segment in India did not suffer much. However, finance have been a problem and that has
NEW DELHI: Mercedes-Benz India is pinning its hopes on new launches to regain the
leadership position in the luxury car segment, which was lost to German rival BMW in 2009.
The company launched the new version of the luxury sedan S-Class and a new sports utility
vehicle GL in Delhi on Monday at ex-showroom prices of Rs 95 lakh and 64.9 lakh. It expects
"We lost out BMW in 2009 because of limited availability of our E-Class car," Mercedes-Benz
"This will be a blockbuster year for us in India. We have launched new cars and would import
The German carmaker will launch a few more models in the next three days at the Auto Expo. It
will unveil the new edition of the C-class sedan and a 3-axle bus, besides displaying E-Coupe,
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M-class SUV and a diesel hybrid. However, the company has no plans to enter the small car
market as it does not foresee a significant market for it as yet, Mr Aulbur said.
Mercedes is also looking at expanding its dealer network across the country with an investment
The fatigue among customers with the Mercedes Benz brand, absence of new models from the
Benz stable and BMW's aggressive marketing made the latter nudge past Mercedes, selling 3,619
cars while the erstwhile leader sold 3,220 cars. The third major luxury car player, Audi, sold
Mercedes-Benz India, fully-owned by Daimler, has been present in India since 1994, initially
through a joint venture with the country's largest vehicle maker Tata Motors.
After the joint venture ended in 1997, the German firm has been making its C, E and S class cars
on its own at a facility leased from Tata Motors. It launched a new facility in Pune in February
last year. Mercedes-Benz currently has about four per cent stake in Tata Motors.
Luxury cars is the fastest growing segment in the Indian auto market and is expected to cross the
10,000 units mark in FY 2010 with BMW and Audi doubling their sales and Mercedes-Benz
The BMW 5Series, Mercedes E-Class and Audi A6 in the Rs 40-55 lakh bracket are the fastest-
selling cars of the luxury segment while the new range of aggressively designed SUVs such as
BMW X6, the new M-Class from Mercedes and the Audi Q7 are also attracting huge buying
interest.
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Economic Times, Automobile, PTI Jan 10, 2011, 04.53pm IST
BMW beats Mercedes-Benz, Audi to emerge as top luxury car-maker in India in 2010
NEW DELHI: Germany's BMW today said it maintained its lead over rivals Mercedes-Benz and
Audi to remain the top luxury car-maker in India in 2010, with sales of 6,246 units.
BMW India, which saw 73 per cent growth in sales during the year, enjoys over 40 per cent
share of the luxury car market in the country, which is estimated at around 15,000 units per
annum.
"In terms of the sales growth rate, India was among the top three markets for BMW after China,
which saw over 80 per cent growth. India and Korea followed it (China) at around the same
Schaaf said the total number of BMW cars sold in India in 2010 exceeded the company's target
of 4,200 units.
"2010 was an exceptional year for BMW in India and I am not sure if we can repeat it, but the
market will continue to grow and we want to stay number one, as we do not want to give up that
This is the second consecutive year in which BMW has retained leadership position in the luxury
Schaaf, however, said going ahead, there are signs that growth of the automobile market will
slow down.
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"... But seeing the incoming orders for BMW products, I am not too worried and do not see any
Rival Mercedes-Benz India, on the other hand, sold 5,819 cars between January and December,
2010, the highest-ever sales figure registered by the company in the country.
The company's sales volumes grew by 80 per cent during the year, with key growth drivers being
its E-Class model (2,490 units), C-Class (2,070 units) and SUV range (523 units), the company
said in a statement.
Another leading luxury car-maker, Audi India, sold 3,003 units in the country, translating into a
"Having recorded continuous growth all through the year, we are proud of our performance in
2010, as we have exceeded the projected goal for the third year in succession," Audi India
He said in the current year, the company is eyeing over 50 per cent growth in sales volumes,
driven by aggressive product launches, including the Audi A8 sedan and a slew of other models.
The company will be also launching a new version of its A6 and A7 models later this year.
KOLKATA: Mercedes-Benz India ended 2011 with a strong growth of approximately 30 per
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The company sold 7,430 units last year, as against 5,819 units in 2010, Mercedes-Benz India's
Director (Sales and Marketing) Debashis Mitra said here today. Mitra said that there had been
He said the company finished 2011 on a successful note and started the New Year with a range
Benz with India dates back to the 1950s when it introduced trucks with local collaboration.
The company established a world class production facility spread over 100 acre at Chakan, Pune,
in 2009.
KOLKATA: Luxury car maker Mercedes-Benz India is pinning hopes on India's growth story
for which it is investing Rs 250 crore to double production capacity by the end of this year, an
"According to our estimates, the luxury car market in India will be four per cent of the total
passenger car segment by 2020," Boris Fitz, Director (sales and network development),
Mercedes-Benz India said. By 2020, the passenger car segment volume would be nearly eight
million units, he said. Fitz, while launching an A-Class compact car here today, said that at
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present the luxury car segment was two per cent of the total passenger car segment in the
country.
He said that Mercedes-Benz is bullish on India for which it is doubling capacity from 10,000
units per year at present to 20,000 units per year. The cost for expansion of production would be
Rs 250 crore, he said. The company sold 7,138 units in 2012. Fitz said the company was aiming
at double digit growth in 2013. He said that while the growth in passenger car segment had been
southwards, the growth in the luxury car segment has been just the opposite. This is mainly on
account of buyers of luxury cars being insulated from the economic cycles. The company plans
NEW DELHI: German luxury car maker Mercedes-Benz today reported 27.12 per cent increase
in its sales in India in the first quarter of 2014 at 2,554 units. The company's wholly-owned arm
Mercedes-Benz India had sold 2,009 units in the same period last year.
Commenting on the sales performance, Mercedes-Benz India Managing Director and CEO
Eberhard Kern said: "Our success and robust growth of 27 per cent in the first quarter of 2014
amidst challenging market dynamics is a clear indicator that our customers have appreciated our
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Under the strategy, the company has been focusing on offering customers excellence in products,
network, aftersales and unique brand experiences, he added. "We will continue to create new
Mercedes-Benz India witnessed a robust demand for the new S-Class, ML-Class and GL-Class,
all of which are currently wait-listed, even after producing them locally, he said. "Additionally,
our New Generation Cars portfolio comprising the A-Class and B-Class continues to witness
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DATA ANALYSIS
Mercedes-Benz entered the Indian market in 1994 under the name of Daimler AG. Being the first
of its kind in the luxury car segment, Mercedes-Benz was on the top of the charts. 2006 saw a
new course in the luxury car segment with the entry of BMW and the market share of luxury car
But Mercedes' first few years in India were bumpy. From 1,800-odd cars sold in 1996, sales
plunged to 734 units in 1999. The trouble -- premium car brands would do well to pay attention -
- lay in the product portfolio and the dealer network. Or rather, the lack of both.
Mercedes' opening gambit comprised the E220 and E250 Diesel models, part of the W124 series.
Both were dated: the new E Class W210 series was already ready to roll out in Germany. And
Indian consumers knew that – after all, the luxury car buyer is inevitably well-informed about
From the company's point of view, the choice of model made sense.
The E-Class is longer and wider than the C-Class saloon -- important attributes for prospective
premium car buyers. It was also pricier: Rs 23-25 lakh (Rs 2.3-2.5 million), compared to the Rs
15-16 lakh (Rs 1.5-Rs 1.6 million) the C-Class would cost. And analysts point out that low-
volume models give companies time to set up the sales and service network.
But Mercedes didn't take advantage of that opportunity. Until 1998, the company served
customers directly through offices in Delhi, Mumbai and Chennai. It did tie up with the Tata
Group to set up the Concorde chain of exclusive showrooms, but that went off track, too.
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When BMW entered the Indian market, Benz was the major player in the luxury car segment in
India. At that time, analysts had said that Benz was an aspirational vehicle, and BMW would not
be able to challenge it seriously. In 2009, BMW India went ahead of Mercedes-Benz India in
sales. In March 2011, BMW delivered 1,027 units to the customers. With this feat, it not only
retained its position as the top luxury car manufacturer in the country, but also became the first
luxury car manufacturer to sell over 1,000 cars in a single month in India. On the achievement,
Schaaf said, "This proves that we have a whole range of competitive advantages: exciting new
products, first class premium dealerships, superior customer service, and a very strong and
aspirational brand."...
Mercedes-Benz was only just recovering from this blow when Audi hit the market in 2007 with
their Audi A3. Audi a division of Volkswagen Group caught the eye of the Indian public quickly
These young aspiring companies came in with aggressive advertising while Mercedes-Benz on
the other hand was still not marketing its brand in India. Mercedes-Benz believed in loyalty of a
customer. But with changing time and changing demands peoples perspectives were also
When Mercedes-Benz entered India, everything was in its favor -- from tremendous brand equity
to a virgin market. At the time, the Indian car market was just revving up. But they failed to
realize the markets potential and left the door open for BMW and Audi to dethrone them from
the no, one spot in the year 2009. The integrated marketing mix and SWOT analysis of this
dethroning phase of Mercedes (mentioned below) clearly explains why they lost their No. 1 spot.
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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. The company produced only cars in its manufacturing facilities
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 then
imported all its models namely - S-Class, E-Class, C-Class, ML-Class, GL-Class, CLS-Class and
SLK-Class.
Mercedes-Benz marketing strategy used to focus on the luxury, safety and precision engineering
of its cars.
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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.
Mercedes-Benz manufactures different types of convertibles, full sixed sedans, coupes and sports
sedans. It had as many as 14 car models currently ranging from INR 1,21,49,000 to 7,68,00,000.
In 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,
Dealer
Dealer send representative to meeting at head quarter every two months to know updates
about the market, trend and the corporate plans and events.
Offer Dealers Trip once in a while, to tightens each dealers relationship and relationship of
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Sales manager meeting at Daimler Crysler head quarter every month, to inform new
promotion/ads campaign also to let every dealer’s sales management plans goes on the same
direction
Reward for 30 top sales person and 5 sales manager that generate most revenue to go to
Mechanic
MBCC (Mercedes-Benz Competence Centre) new program of recruiting mechanic staffs for
company. MB Thailand joined with Samutprakan Technical College seeks for students that
are interested and trained them, they also provide wages for the students.
STAR Assist training, a service program that provide customers 24 hrs assistant for any car
problem
Specialized mechanists training for head mechanic of every dealer, to get information up to
date
Process in Mercedes-Benz
Parts
Lubricates, reduce wear-and-tear and helps to protect the environment and it is perfectly
Genuine Parts
Produced precisely according to specifications, can rely on spare parts being genuine
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Accessories and Collection
Offers individual, stylish and special accessories, provided to suit the needs of every
individual
Physical Environment
The colors used in showroom are metallic colors such as black and gray
The showrooms from authorized dealers look nicer in term of physical looks of the
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FIGHT BACK FOR NUMBER ONE SPOT
Mercedes-Benz marketing was once centered on the safety, luxury, and precision engineering of
its cars, but due to increase competition in the luxury car industry and changing consumer
attitudes about the Mercedes-Benz brand that strategy has changed. Now their marketing strategy
is more life style oriented and is focused more on presenting the more fun loving, approachable,
and energetic side of Mercedes-Benz. The evolution of Mercedes-Benz’s marketing strategy can
be directly connected to the expansion of its target market, which now includes persons twenty
five to thirty five years old as well as its initial targets the baby boomers. In order to provide
superior customer value to its target market Mercedes-Benz has found it necessary to expand its
product line up, provide more competitive prices, increase communications with its target
market, maintain accessibility to consumers, and continue its excellent customer service.
This can be clearly seen all throughout their new integrated marketing mix and SWOT analysis
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
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,
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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,
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
In order to increase communication with its target market, Mercedes-Benz has maintained
Online advertising
Social media
Television advertising
Print media
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Mercedes-Benz Partners With Buddh International Circuit
Mercedes-Benz India, in a bid to promote what he company calls ‘the spirit of performance
Motoring’ has planned a three pronged strategy. The strategy also includes partnering with the
Buddh International Circuit for promoting motorsports. Here’s a brief detail on the plans
Part 1: Official Automobile Partners of Buddh International Circuit: As the Official partners of
Buddh International Circuit the company along with JPSI will play a pivotal role in the debut of
Indian Grand Prix. The partnership with JPSI is aimed at establishing a stronger connect with
motorsports enthusiasts and potential customers. Mercedes-Benz customers shall have exclusive
and special access to use the cars on the race track. The company also plans a lot of activities at
activation campaign to popularize Motorsport and give enthusiasts access to witness the action at
the Indian Grand Prix at Buddh International Circuit. Mercedes-Benz plans to create Pit Stops at
all its dealerships which will sell tickets for Indian Grand Prix and also merchandise for
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The Mercedes-Benz Speed Date is another activity planned around third week of October at
A college activation program, MTV Date with Speed, is fun filled program, with youth
engagement, music, cars all woven around the theme of Motorsports. Mercedes-Benz will also
be organizing lifestyle parties across multiple cities at the hippest pubs. A host of other
promotional campaigns targeting the young audience will ensure the country gives a rousing
As an Official Automobile Partner, Mercedes-Benz cars will serve as the Official Safety car, Fast
Intervention Vehicles and Race Control Cars in Motorsport event in the country.
Part 3: Performance Driving Academy: Mercedes-Benz along with JPSI will create a
motorsports enthusiasts in India. The new Academy will offer structured programs, cars, trainers
and help groom new talents on the racing circuit. Mercedes-Benz has a rich history of
motorsport. In fact no other automobile manufacturer in the world shares the same relationship
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Media Publication Of Mercedes-Benz
Mercedes-Benz has announced its partnership with MaXposure Media Group to launch the
‘Mercedes’ magazine for the first time in India. With up to eight existing international editions
already, ‘Mercedes’ magazine now hits the Indian market through private circulation. Poised to
serve as a coffee-table book, the magazine seeks to have considerable reach in the dynamic and
young affluent sections of society. Published quarterly, the magazine will be circulated to the
exclusive clientele of Mercedes-Benz in India and to the ever-growing group of people who
‘Mercedes’ will cover topics ranging from high-end products and services to fashion, hobbies,
holidays, and communication and entertainment. The magazine will also cover the global
lifestyle of the rich and famous. Besides these, sections on Mercedes-Benz history, heritage,
production, and future technology have been incorporated for automobile aficionados.
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Introducing the magazine in India, Dr Wilfried Aulbur, MD, Mercedes-Benz India, said, “It
reflects the philosophy of living in luxury the smart way. In the magazine, the readers will
discover a vibrant cultural tapestry from all over the globe in its pages, covering celebrities,
fashion, high-end living, exotic travel destinations, fine dining, art and the latest happenings
from Mercedes-Benz, and 30 per cent of the magazine will be dedicated to local content.”
On the strategic association, Prakash Johari, CEO, MaXposure Media Group, said, “We are
excited about publishing ‘Mercedes’ magazine in India. We hope to strike a chord with all
The Indian edition of the ‘Mercedes’ magazine is for private circulation only and will be
external advertisers with whom the luxury carmaker shares a good synergy. The initial print run
will be 15,000 copies quarterly, which will be audited by BPA Worldwide, a leading global
authority on printing audits. The magazine will also be available at dealerships as take-away for
customers.
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
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.
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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
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,
Dealer
Dealer send representative to meeting at head quarter every two months to know updates
about the market, trend and the corporate plans and events.
Offer Dealers Trip once in a while, to tightens each dealers relationship and relationship
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Sales manager meeting at Daimler Crysler head quarter every month, to inform new
promotion/ads campaign also to let every dealer’s sales management plans goes on the
same direction
Reward for 30 top sales person and 5 sales manager that generate most revenue to go to
Mechanic
for company. MB Thailand joined with Samutprakan Technical College seeks for
students that are interested and trained them; they also provide wages for the students.
STAR Assist training, a service program that provide customers 24 hrs assistant for any
car problem
Specialized mechanists training for head mechanic of every dealer, to get information up
to date
Service
My Service
Let you choose service appointment and options of your choice and is most convenient to
you
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Dealer Search
Offers wide range of additional services and are always willing to help
Comprehensive assistance available24 hours a day • Operator fluent in both Thai and
English
Proven Exclusivity
Trading services for pre-owned cars, carrying same standards worldwide, also including a
2 years warranty
Parts
Lubricates, reduce wear-and-tear and helps to protect the environment and it is perfectly
Genuine Parts
Produced precisely according to specifications, can rely on spare parts being genuine
Offers individual, stylish and special accessories, provided to suit the needs of every
individual
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Physical Environment in the marketing mix of Mercedes-Benz
The colors used in showroom are metallic colors such as black and gray
The showrooms from authorized dealers look nicer in term of physical looks of the
The finest cars and the ultimate driving experiences, tailor-made for you. The events in the
Mercedes-Benz Performance Drive will hone your driving skills on the racetrack and riveting
MercedesTrophy
Established 22 years ago, the MercedesTrophy has quickly become one of the world's most
prestigious amateur Golf tournaments. Today, with over 58,000 avid golfers in over 50 countries
and 600 qualifier tournaments around the globe, this is one tee-time you cannot miss.
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Social Involvement of Mercedes-Benz
Mercedes-Benz India Limited has launched the Mercedes-Benz JPSI Performance Driving
Academy at the Buddh International Circuit on the eve of the 2012 Auto Expo in Delhi.
The Driving Academy will have cars like the SLS AMG,
Academy is open only for two days per quarter and only 64
day.
The cost of the Academy course is Rs 75,000 each day. This excludes the stay and travel
expenses. There are also specific courses available for clubs and corporates.
The cost of the Academy course is Rs 75,000 each day. This excludes stay and travel expenses.
Registrations for the Driving Academy are open at the Auto Expo 2012 as also at Mercedes
website and dealerships across India. The Mercedes-Benz JPSI Performance Driving Academy
will also offer assistance for participants to enroll for other higher level courses at the Academy
in Germany.
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Mercedes-Benz to assemble more cars locally to be competitive
Mercedes-Benz is planning to change the way they’ve been doing business in India. The Indian
luxury car market has been changing by the day and in this ultra-competitive age, Mercedes-
Benz plans to make more cars locally which will allow the car maker to take a more aggressive
approach when it comes to pricing. The three big players in the Indian luxury segment are aware
of the potential of the Indian market and are always looking for new ways to counter the
competition. Mercedes-Benz’s latest move will help the car maker save on local taxes which in
Mercedes-Benz also plans to introduce new models in the Rs 20 lakh to Rs 3 Crore segment,
going forward. Also, the ramping up operations will include fresh investment in the company’s
Chakan plant. The upgrade will allow the car maker to assemble more cars from CKD
(Completely Knocked Down) kits. Even though, the year 2011 wasn’t exactly a good year for car
makers in terms of volumes, the luxury segment hasn’t shown any signals of a slowdown. In
fact, Mercedes-Benz predicts that the Indian luxury car segment will rise by 35 percent by the
“We have been in constant talks with our headquarters for ramping up
like to do more and more local assembly here. For that, we need to
marketing’’.
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SWOT ANALYSIS
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FINDINGS
When Mercedes-Benz entered India, everything was in its favor -- from tremendous brand
equity to a virgin market. At the time, the Indian car market was just revving up. But they
failed to realize the markets potential and left the door open for BMW and Audi to dethrone
The barely invested in any promotional strategies in that period, assuming their number one
position was secure. The main reason of the downfall can be singled out to a large extent
due to the lack of promotional strategies which cost them dearly and made them revamp
themselves up completely.
The phase from where Mercedes planned to take back their number one spot was dominated
by their marketing strategies. The first ad of Mercedes-Benz in India was released in 2014
whereas that of BMW was released in 2007. This clearly shows how late Mercedes left it to
explore the extent to which media con affect them and their positioning.
Mercedes-Benz India Private Limited also went about carrying on various other initiatives
along with their strong new marketing and promotional strategies. They also began locally
assembling various models of their cars to reduce the price and also opened a new research
laboratory in India in Bangalore. Their second biggest research laboratory behind their one
The new target market and marketing mix seems to be paying off for Mercedes where they
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CONCLUSION
The main reason for the downfall of Mercedes-Benz with the emergence of BMW and Audi in
the Indian market was mainly due to their ignorance to the new and improving marketing and
promotional strategies and its influence on the masses. The fatigue among customers with the
Mercedes-Benz brand, absence of new models from the Benz and BMW's aggressive marketing
made the latter nudge past Mercedes, selling 3,619 cars while the erstwhile leader sold 3,220
cars. The third major luxury car player, Audi, sold 1,550 cars until November 2009.
BMW not only came in with strong and aggressive marketing campaigns but also brought in new
sportier looks which pulled majority of the younger audience who preferred cars with much
sportier looks.
All this can clearly concluded from their old integrated marketing mix.
Research and development help Mercedes realize how heavily they lacked in the promotional
sector and hence the new investments made in that sector helped Mercedes put up a fight to the
market competitors.
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The above two images help us simply and very clearly understand the main reason why
Mercedes has been able to gain its top spot again in the India luxury car market and that is only
the marketing and promotional strategies. The graph from WaveMetrix clearly shows Mercedes
cars are creating way more buzz rather than the brand.
Such is the power of effective Marketing Strategies, plans and promotions. It can make a
difference always.
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