Chapter 1: Executive Summary

The problem statement of the project is to know how the top two competitor of Luxury car segment in Automobile Industry are fighting to increase their market share in Indian market. We are majorly focusing on their sales and promotional strategies leading to the increase in their sales volume. Being a small car market, India was never a favorite destination for top car manufacturers in the world. It's a different story today. The great Indian auto industry has stunned the world by becoming one of the fastest growing auto industries in the world today. Almost every luxury car maker has set up their base in India today, including Aston Martin, Ferrari, Porsche, Jaguar, Mercedes Benz, BMW, AUDI, Bentley, Rolls Royce, and a few more are on their way. For the past three calendar years, 2009, 2010 & 2011 BMW came out on top as they sold the highest number of cars in the luxury segment in India. BMW, Mercedes Benz and Audi are the 3 dominant German car manufacturers who are ruling the roost in the country's luxury car segment today. Although the domestic car market has experienced a decline in the past few months, the luxury segment remains unaffected. As per the latest figures, the luxury car segment has witnessed a rise by 45 to 50 percent. The growth in the luxury car segment continued throughout this year. Sales of BMW, Mercedes Benz and Audi combine to form a total of 22,000 units. Last year, the sales figures were just 15,00016,000 units, resulting in a significant rise this year. These three luxury car makers grabbed a major part of the luxury car market in India. During the 11 months, BMW and Mercedes Benz managed to grab a good market share. Sales of Mercedes increased by 31% and sales for BMW rose by 70 %. The recent growth in the luxury car market in India is much more than mere market dynamics in a particular car segment. It is a reflection of the changing lifestyle of the affluent class in the country. In India, the luxury car segment (Average Price 25-30 Lacs) has been growing at an average rate of 20% or above during recent years; it seems to be least affected by the global financial crisis.

Chapter 2: Introduction
2.1Automotive Industry
The automotive industry designs, develops, manufactures, markets, and sells motor vehicles, and is one of the world's most important economic sectors by revenue. Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 260 billion US gallons (980,000,000 m3) of gasoline and diesel fuel yearly. The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Other potentially powerful automotive markets are Iran and Indonesia. Emerging auto markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010.

Automotive Industry in India

The automotive industry in India is one of the largest in the world and one of the fastest growing globally. India's passenger car and commercial vehicle manufacturing industry is the seventh largest in the world, with an annual production of more than 3.7 million units in 2010. According to recent reports, India is set to overtake Brazil to become the sixth largest passenger vehicle producer in the world, growing 16-18 per cent to sell around three million units in the course of 2011-12. In 2009, India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India reached as Asia's third largest exporter of passenger cars, behind Japan and South Korea beating Thailand. As of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 5 million by 2015 and more than 9 million by 2020. By 2050, the country is expected to top the world in car volumes with approximately 611 million vehicles on the nation's roads.

The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster near Chennai is the biggest with 35% of the revenue share. The western hub near Maharashtra is 33% of the market. The northern cluster is primarily Haryana with 32%. Chennai, is also referred to as the "Detroit of India" with the India operations of Ford, Hyundai, Renault and Nissan headquartered in the city and BMW having an assembly plant on the outskirts. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Fiat and Force Motors having assembly plants in the area. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol and further planned for Tata Nano at Sanand. Ford, Maruti Suzuki and Peugeot-Citroen plants are also set to come up in Gujarat. Kolkatta with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country.

2.2 Luxury Car Market in India

The luxury car market in India has registered a fair amount of growth in the last few years and is growing at the rate of 25% per year. A luxury car is a luxuriously styled automobile which is designed to give satisfaction and comfort to its owner. The luxury cars in the Indian market are very expensive, with price tags that start from 20 lakh. Hence, luxury cars can only be afforded by the people who belong to the high income group and there are a lot of such takers in the Indian automobile market. The various reasons for the growth of the luxury car market in India are:

The economy is rising in the country which has given the people more disposable income which they are spending in buying luxury cars. Various loan schemes have been launched by the automobile manufacturers and the financial institutions. This has made it very easy for the people to buy luxury cars and this has boosted the luxury car market in India. With the IT boom in the country many youngsters are earning high pay packages which enable them to buy luxury cars. And this have further given boost to the market of luxury car in India.
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The government have formulated many polices such as the relaxation of equity regulations and the reduction of import tariffs pertaining to the automobile industry. These have helped to reduce the prices of the luxury cars, which in turn have led to the growth of the luxury car market in India

The various automobile companies manufacturing luxury cars for India are:

BMW manufacturers the BMW 530i and BMW 760li models Daimler Chrysler manufactures the Mercedes Benz C and E class models Rolls Royce manufactures the Rolls Royce Phantom V 12 model Porsche manufactures the 911 Carrera, 911 Carrera S, and Cayman S models Bentley manufactures the Bentley Range and Bentley Continental models

Luxury car market in India has grown over the last few years. Premium carmakers are now in the next phase of expansion in India, which will focus on investment in facilities and localization. That it continues to grow, more efforts must be made by the Indian automobile industry and the government of India. And only then the luxury car market in India will be able to reach its heights.

The Indian Luxury segment has being growing at a very consistent pace in the last two years. Luxury car sales for 2010 were recorded 15,815 vehicles which was a 75 per cent jump from the previous year which saw 8,717 vehicles sold. The Indian luxury car market continues to grow at an annual average growth of around 50% recording sales of approximately 20,000 units in 2011. BMW, Mercedes Benz and Audi are the 3 dominant players in the luxury car market which also includes companies like Aston Martin, Ferrari, Porsche, Jaguar, Bentley and Rolls Royce present. For the past two years, BMW has been the number one player in this segment by selling the highest number of cars in the luxury segment in India.

Chapter 3:Research Objective & Methodology

3.1 Objective
The objective of conducting the research for the sales management of the automobile companies (BMW and Mercedes) is to understand that how the sales force work effectively and efficiently on the factors that are considered by every organization which are as follows:Recruitment:-The organization always tries to recruit a right kind of candidate for a particular job which can fulfill the organization objective on time. Training:-The organization also put efforts for training the personnel which has been hired for the sales activity so that the work can be done in the same way as it is expected. Incentives:-The organization should also consider the fact that without giving a good payoff no employee will work in the expected manner. Appraisal:-The organization should work upon the performance appraisal scheme under which the employee feels to work more and more. When all these considerations are taken into account, this will generate motivation in the employees and which will in turn make them work at their maximum to benefit themselves and the organization.

3.2 Research Methodology:

Primary research: All the data pertaining to the sales were collected as a part of company/dealer visit which were extensive and laborious. My field visit included visiting the company and dealership and collect information from the management/employees and dealers salesman in studying the market. Type of Research: Exploratory Tools used: Questionnaire Sample size: 20 Target Audience: Company Management/Employees, Dealership Research Area: Delhi/NCR Sampling Method: Random Secondary research: Other data about the company like Sales figures, Advertisements and such have been collected through internet. Also the facts and figures about the Automotive Industry and Company have been collected through secondary research. Sources used are organization brochures, catalogues, websites, etc.
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Chapter 4: Body Of The Report

4.1 BMW
4.1.1 BMW Global

BMW (Bavarian Motor Works) is a German automobile, motorcycle and engine manufacturing company founded in 1917. BMW is headquartered in Munich, Bavaria, Germany. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands. In 2010, the BMW group produced 1,481,253 automobiles and 112,271 motorcycles across all its brands. The BMW Group is one of the most successful manufacturers of automobiles and motorcycles in the world with its BMW, MINI and Rolls-Royce brands. As a global company, the BMW Group operates 25 production and assembly facilities in 14 countries and has a global sales network in more than 140 countries. During the financial year 2010, the BMW Group sold 1.46 million cars and more than 110,000 motorcycles worldwide. The profit before tax for 2010 was euro 4.8 billion on revenues amounting to euro 60.5 billion. At 31 December 2010, the BMW Group had a workforce of approximately 95,500 employees. The success of the BMW Group has always been built on long-term thinking and responsible action. The company has therefore established ecological and social sustainability throughout the value chain, comprehensive product responsibility and a clear commitment to conserving resources as an integral part of its strategy. As a result of its efforts, the BMW Group has been ranked industry leader in the Dow Jones Sustainability Indexes for the last seven years.

Worldwide Sales Vehicles sold in all markets according to BMWs annual report Year BMW MINI Rolls-Royce Motorcycle

2000

822,181

2001

880,677

2002

913,225

2003

928,151

2004

1,023,583

2005

1,126,768

200,428

796

97,474

2006

1,185,088

188,077

805

100,064

2007

1,276,793

222,875

1,010

102,467

2008

1,202,239

232,425

1,212

115,196

2009

1,068,770

216,538

1,002

100,358

2010

1,224,280

234,175

2,711

110,113

4.1.2 BMW India

BMW India was established in 2006 as a sales subsidiary in Gurgaon (National Capital Region). BMW India is a 100% subsidiary of the BMW Group. BMW India has been the leading luxury car manufacturer for the second consecutive year since 2009. BMW India achieved a market share of over 40% in 2010 (from 9% at the end of 2006). With 6246 cars delivered to customers in the calendar year 2010 (73% increase in twelve months). BMW India has achieved the highest sales by a manufacturer in the luxury car segment in a year. BMW India is confident of further increasing its sales owing to the growth potential in the Indian market. Operations A state-of-the-art assembly plant for BMW 3 and 5 Series started operation in early 2007 in Chennai. Construction of the plant started in January 2006 with an initial investment of more than one billion Indian Rupees. The plant started operation in the first quarter of 2007 and produces the different variants of BMW 3 Series and BMW 5 Series. The BMW Plant in Chennai also produces the BMW X1 in petrol and diesel variants and the BMW 7 series. The new BMW X3 is produced in diesel variants. The BMW Plant Chennai has the capacity to produce 11,000 units per year on a double shift basis. In 2011, The Brand Trust Report, India study, ranked BMW as the most trusted brand in India. Employees The total number of employees at BMW India is 650. Up to 1200 jobs will be created in the dealer and service network. Investment The BMW Groups has invested a total of 1.1 billion Indian Rupees in its Indian operations and is expected to invest around 1.8 billion Indian Rupees (approximately 30 million) by the end of 2012. BMW Financial Services India BMW Financial Services India is a 100% subsidiary of the BMW Group and is headquartered in Gurgaon (National Capital Region). BMW Financial Services operates as a Non-Banking Finance Company (NBFC) in India. BMW Financial Services operates with its three business lines: Retail Finance, Commercial Finance and Insurance Solutions (through cooperation partners). The services offered through BMW Financial Services are significantly valuable to the premium clientele in India who require exclusive and flexible financial solutions.

International Purchase Office The International Purchasing Office (IPO) established at BMW Indias Headquarters in Gurgaon identifies and assesses potential suppliers for BMW, MINI, and BMW Motorcycles taking into account BMW Groups requirements for quality, technology and logistics. The IPO strongly focuses on increasing the sourcing of production material (components) as well as IT and engineering services from India to the BMW Group International Production Network. Dealership BMW India is the pioneer in bringing luxurious dealerships to India. BMW India has set a decisive course by setting up BMW dealerships of international standards across the country. BMW India has also set very high standards in service quality and customer care. By end of 2012, BMW India will aggressively expand its dealer network by increasing the number of outlets to 40 across major metropolitan centers and emerging markets in India (from the present 25 outlets).

4.1.3 BMW India Product Portfolio:

CKD Portfolio (Complete Knocked Down)

CBU Portfolio (Complete Built-up Unit)

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BMW Brand The BMW brand has its own identity, comprising various attributes that give it its distinctive character. The most outstanding characteristic of the BMW brand personality is the ability to evoke JOY. JOY is always sure to out a heartfelt smile on people's faces. Joy is so powerful and so enduring because it is multi-faceted, because it is continually coming up with new ideas. Spreading Joy requires understanding what it is, how it comes about, what values it conveys, and where it is headed. Joy is both the driving force and the ultimate goal of everything the brand does. It is the central differentiating criterion and has a multi-faceted character that offers Quality, Service, Sustainability, Exclusivity and Safety to the customer. In India, BMW has successfully implemented key brand initiatives such as the BMW Art Cars exhibition in Mumbai, BMW Golf Cup International in India, association with leading fashion events such as the India Couture Week, formal dining and wine tasting events at BMW Dealerships and Art Exhibitions at the BMW Studio One where customers and prospects can indulge with the brand in an exclusive environment.

BMW India Sales BMW India retained the Number One position in the luxury car segment in India for the second consecutive year. BMW India achieved a market share of over 40% in 2010 (from 9% at the end of 2006). With 6246 cars delivered to customers in the calendar year 2010 (73% increase in twelve months). BMW India has achieved the highest sales by a manufacturer in the luxury car segment in a year. BMW India is confident of further increasing its sales owing to the growth potential in the Indian market.

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BMW India 2011 Sales

Mon 3 Series 5 Series 6 Series 7 Series Jan Feb Mar Apr May Jun Total 164 176 315 240 195 163 1253 271 264 380 255 264 246 1680 1 1 1 1 3 3 10 17 38 60 32 23 30 200

Gran Turismo 7 8 11 5 4 9 44

X1 15 110 203 215 190 403 1136

X3 2 0 0 0 0 2 4

X5 9 10 30 18 8 17 92

X6 9 12 17 13 18 14 83

Z4 5 1 10 1 2 3 22

Total 500 620 1027 780 707 890 4524

Challenge Prepare a market strategy for strengthening the leadership position of BMW in India and widening the gap between BMW India and its competition based on. A scientific evaluation of consumer perceptions in the luxury car segment Changing social patterns and value system of the consumer in the Indian society Drivers of luxury consumption in India SWOT analysis of Marketing and Product strategies of competitors vis-a-vis BMW.

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4.1.4 BMW India Sales Strategies

Competent partners. Attractive offers for International Direct and Special Sales. BMW International Corporate Sales (ICS) offers international companies global solutions for their requirements regarding automobile fleets and company cars. ICS provides support for the organization. BMW International Direct Sales (IDS) is responsible for global marketing strategies and sales of special task vehicles and security automobiles, and also coordinates the sale of BMW automobiles to diplomats and members of international organizations.

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 BMW Security Vehicles Some people stand out from the crowd and this in itself makes them vulnerable. But now there is a saloon that offers the highest possible levels of security on the move. BMW is the first manufacturer to offer a car that is fully compliant with the requirements of the class VR7 ballistic protection standard (tested as per BRV 2009 guidelines). At the same time, the BMW 7 Series High Security delivers an unforgettable driving experience. Because the one thing you never get from BMW is compromises. International Diplomatic Sales Programe at BMW India The BMW Group has been promoting Diplomatic Sales for more than twenty years. The BMW International Diplomatic Sales Programme at BMW India provides a unique service, specifically designed for diplomats or members of International organisations. Individualised solutions & consulting Customer focus without compromises BMW Corporate Sales are focused on giving you what you want and need both day to day and in the long term. This is why they always try to offer our customers individualized solutions. A global network of sales organizations and dealerships combines to create a solution that is tailor-made for your company, in terms of the types of vehicle, finance and fleet management. Offers for Direct and Special Sales BMW AG offers a wide range of special products and services including security and authority vehicles. Also special programs for diplomats and members of international organizations, for U.S. Military Sales personnel and for international fleets and company cars are available. BMW India HOTEL LIMOUSINE PROGRAM BMW India Direct Sales is pleased to announce a special Sales Program. For an esteemed hotel such as customers, there has never been a better time to purchase the BMW 7 Series whether they require one or a whole fleet. With this unique program, customer will pay less for more. Choosing progressive luxury and ultimate comfort for their guests, at the most attractive terms, not only makes financial sense, but hotel business will also benefit from its association with the number one luxury car brand in India and the world. All BMW 7 Series Sedans procured under this program in India will come with an array of additional and exciting options.
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 BMW FINANCIAL Services BMW Financial Services offers a wide range of financial solutions, each one precisely engineered to your specific demands as a BMW customer. They know how well a BMW holds its value and prestige. Tailored financial solutions: To determine the most economical solution for corporate fleet, people at BMW Financial Services offer customized financing to best suit their needs as a corporate customer. BMW offer flexible options for auto loans, competitive rates, a range of down payment and repayment options and convenient terms of up to 84 months. Preferential terms and conditions: Customer will benefit from the preferential terms and special offers that they are able to present to you as a corporate customer. Faster turnaround time: Customer can now expect quicker delivery of your vehicles with the professional and efficient services offered through BMW Financial Services. One-stop solution: All Customer automotive and financing needs for their corporate fleet are now available under one roof.
BENEFITS OF FINANCING WITH BMW FINANCIAL SERVICES:

Flexible loan tenure options to choose from 6 months to 84 months. Options for part payment and pre-closure of retail loan contract. Wide range of retail finance options to choose from Normal Finance, Balloon Finance, Bullet Finance, Step-up and Step-down Option. Exclusive finance options designed to meet your requirements. Options to finance BMW Secure Premium and BMW Service Inclusive. Flexible down payment and monthly installments. Exclusive services for BMW Customers. BMW INSURANCE MOTOR INSURANCE BMW Financial Services through its exclusive insurance partner Bajaj Allianz General Insurance endeavors to provide corporate customers world-class insurance products and services. As a valued BMW customer, they understand customer requirements and hence have collaborated
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with Bajaj Allianz to design motor insurance products that include features that are unique to the requirements of a BMW car. Motor insurance benefits: Instant coverage: BMW will be covered from the very moment of delivery acceptance. Accessories coverage: All accessories other than the standard accessories can also be covered under your motor insurance at an additional charge. Third party coverage: Person will be covered for legal liability damage to third party property and also for third party accidental body injury resulting from a motor accident. Genuine parts replacement: Under your motor insurance policy, you are guaranteed a repair of your BMW at an Authorized BMW Repair Service Centre with new and genuine parts in case of replacement. Easy hassle-free switch: BMW also give you the opportunity to switch to our insurance if you are already covered by a different insurer, so that you can avail from our motor insurance.
BMW SECURE ADVANCED

Your BMW now comes equipped with BMW Secure Advanced right from the date of purchase. Thus providing you with an additional coverage for your BMW. Benefits of BMW Secure Advanced: Free tyre replacement: BMW Secure Advanced provides for replacement of tyres in case of puncture, cut, bulge or burst. Rim: Replacement of up to 4 alloys within a benefit period. Hydrostatic Lock: Coverage of repair cost caused by a hydrostatic lock within a benefit period. Roadside Assistance: In the eventuality of a vehicle distress situation, there are dedicated phone lines accessible 24 hours a day, 7 days a week, for roadside assistance. Roadside Assistance is available for a period of 2 years from the date of retail sale of the vehicle.

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 BMW SECURE PREMIUM

Offered exclusively to BMW customers, BMW Secure Premium is an add-on package which can be booked post purchase of motor insurance through our cooperation partner. This package offers unique features, thus providing additional protection for your BMW. Benefits of BMW Secure Premium: Instant coverage: Your BMW will be covered from the very moment of delivery acceptance. Total damage coverage: In the event of total loss to your BMW within one year of purchase or upon renewal of your BMW Secure Premium, the car will be replaced with a new BMW of the same model inclusive of registration cost and cost of basic motor insurance thereby incurred. No depreciation charges: Under BMW Secure no depreciation will be charged for part replacement through any Authorized BMW Dealer.
BMW PREMIUM SELECTION. CERTIFIED PRE-OWNED.

Joy likes to put a smile on your face, and that is just what it will do. BMW India is pleased to introduce BMW Premium Selection a complete range of high-quality pre-owned BMW cars, all in immaculate condition at an excellent value. All cars have been throughly checked and approved by BMW Certified experts, guaranteeing you the Joy of Sheer Driving Pleasure. Now it takes minimum efforts to upgrade your fleet with maximum quality. Please contact your Authorized BMW Dealer for more details. Exclusive BMW Premium Selection benefits: + 24-month/up to 200,000 km (whichever comes first) BMW Premium Selection warranty + Exhaustive 360 check + BMW Certified + Validated car service history at Authorized BMW Service Centers + Roadside Assistance + Attractive financial plans from BMW Financial Services + Attractive trade-in offers

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4.1.5 BMW Employee Development Program (Company Perspective)

BMW strategy: Innovations. The BMW Group is pursuing the goal of developing new, pioneering ideas for customers as efficiently as possible. In other words, we create enthusiasm with technologically innovative products that are also emotionally appealing at the same time. This is why we built the FIZ Research and Innovation Centre in 1986, which intentionally promotes interpersonal communication with its honeycomb-like floor plan, short routes, and open spaces. The Project House, officially opened in 2004, marks yet another milestone in the expansion of the FIZ. It is the architectural reflection of the BMW Groups so-called Product Evolution Process (PEP). With the elaborate architecture, the technological features, and the design of the high-quality workstations, we are setting new standards. Today, 8,500 associates are employed in the Research and Development departments of the Group worldwide. This is where we work on innovations that underscore our claim of being the best automobile manufacturer in the world. The BMW Group is a global operation In order to stand our ground among the competition, we use a research, production, and sales network that spans the globe, bringing project participants together beyond all concepts of borders. Our plants operate as an integrated system both nationally as well as internationally. On the one hand, this allows us to use regional advantages in order to be quicker, more efficient and more flexible. On the other hand, the network is also a strategy to gain highly-skilled and motivated people from all over the world for the BMW Group. Also innovative in the corporate culture It is not only our technical expertise that so clearly sets us apart from other companies, but also our corporate culture. Because our interactions are based on respect and appreciation, our associates are connected by a strong sense of we the crucial success factor as a team. Satisfied and motivated associates represent an invaluable competitive advantage for us. What drives BMW Group associates We are excited about innovative technologies. On the following pages you can read more about what makes the difference in our corporate divisions and what demands we place on our associates on the following pages.

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4.1.6 Marketing & Sales

Focus on the Customer As a global player, the BMW Group has to respond to the strategic demands of a global market on a daily basis. Being able to guarantee our customers a homogenous brand experience requires farsighted coordination and guidance of global sales operations. Our service is the most important factor for sustained customer loyalty. That is why we create universal and innovative concepts for the entire service value chain. With a claim to the highest quality, we offer services worldwide at the premium level. In doing so, we contribute substantially to our customers' high level of loyalty, creating the basis for new markets.

Marketing Marketing guides the development of the BMW Group brands BMW, MINI, and Rolls-Royce. As a marketing expert with extensive knowledge of your subject, you would work on futureoriented, strategic, as well as operational issues. Your activities would include both marketoriented product management in close coordination with Development as well as the implementation of communications concepts in connection with worldwide product launches. Sales. You can be employed in our offices at headquarters as well as in the national markets. You would coordinate and guide the worldwide sales operations of the BMW Group with the overriding goal of guaranteeing a uniform product and brand experience for our customers around the globe. To achieve this, sales companies and importers have to be advised and supported in their sales business and brand communication. In addition there are a host of other responsibilities. These range from re-engineering sales processes to optimizing logistics and IT infrastructure, from establishing an efficient e-business to division controlling. Aftersales: Service, Parts, and Accessories Your core tasks in the Parts Sales, Accessories, and Lifestyle area at headquarters extend from the development of an attractive portfolio of parts, accessories and lifestyle products and services to product procurement and assurance of excellent logistics to the headquarters, wholesale, and retail levels, through to the marketing of products and services. The function of Aftersales Marketing is to be a liaison to our customers. It is our job to ensure their satisfaction. In a dialog with the markets, you would develop the best service solutions, flexibly and actively facing the challenges of the future. Your goal is to strengthen the brands of the BMW Group with

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outstanding service and to keep your customers mobile at all times. With comprehensive and upto-date product and technological competence, rapid and lasting problem-solving, as well as excellent, friendly, and individual support, your job is not only to meet the customers expectations but exceed them, assuring the claim to premium service even after the sale.

4.1.7 Speciality Functions

Human Resources. The BMW Group is an employee-oriented company. For this reason, important responsibilities in the operations of Human Resources include personnel selection and the professional support of our associates with continuing education and qualifications measures, among other things. In addition, there are also tasks in strategic human resources work, for example with the design of payment systems or working time arrangements as well as with internal services such as facility management or health services. Press and Public Relations As a communications specialist with journalistic experience, you would have constant contact with the media, the public, and our associates. You would paint a picture of the goals, positions, and achievements of the BMW Group that is as honest as it is positive. What is indispensable for this activity, in addition to profound product knowledge, is an in-depth understanding of the BMW Group as well as its culture and goals. Business IT As an IT specialist, you are in demand worldwide at headquarters, the plants, and the sales companies. At headquarters IT you could work on the development of corporatewide strategic structural projects while taking into account costs, benefit, and performance criteria. Your responsibilities would include IT in-house consulting, IT process design, and the operation of computer centres and networks. In the IT departments of the divisions and the local facilities, you forge the connection between the knowledge of technical demands with the IT understanding for economy and standardization. Individual applications for virtualization, visualization or product data management, for example in Research or Sales, assist with process optimization and cost savings. Providing support for international rollouts will challenge not only your knowledge of systems but also your intercultural skills.

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Logistics As an engineer, economist or computer scientist, you would be responsible for making sure that the parts required are provided at the right place at exactly the right time. In addition to solid knowledge of the technical aspects of the transportation processes, above all you should bring with you a good feel for cooperation and the sequence of events in Production and Sales. You would make sure that suppliers pre-assemble individual components precisely in sequence, fit them at and/or bring them directly to the assembly stations. In doing so, you would be combining Just in Time and Just in Sequence methods. Requests from Process Planning, Purchasing, the plants, and Sales have to be optimally coordinated with each other. As part of this, you would be responsible for the strategic planning, creation, and implementation of logistics concepts from the development phase through to production start-up. Management and responsibility More than 100,000 associates work for the BMW Group. We are very performance-oriented and know from experience that we only get good performance when our associates feel comfortable and understood. This is why mutual respect and constructive debate in conflict situations are part of our corporate philosophy. We do not recognize cultural or national boundaries. Instead we believe in exchange, because team performance is more than the sum of individual achievements. And we value a balanced relationship be-tween career and private life. For example, we are open to parttime working arrangements or programmes such as telecommuting. Today, the workforce at the BMW Group already works in more than 300 different working hour arrangements. This is the only way our associates deliver the high performance that we expect from them and that we reward in return. It comes down to attitude While a good degree speaks for itself, it doesn't say everything. Which is why your application doesnt have to be the absolute best of the many that we receive every year. But you will have to want to be one of the best associates and you will have to have the absolute determination to keep learning, constantly. This approach stems, for example, from our extensive training program with its many different development and qualification courses that are tailored to your individual talents. After all, the continuous further development and qualification of our associates is the basis for the success of the entire company. And not least of all, for your own personal success.

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What we offer Now, whether you have studied electrical engineering or mechanical engineering, whether you are an IT professional or even if you are coming from aerospace engineering exciting jobs are waiting for you here with us jobs that will take you to your limits. Whats more, as part of a team, you will learn to go even beyond these limits. Our special newcomer and trainee programmes as well as our many continuing education programmes will provide you with the support needed. To this end, we spend some 250 million US Dollar annually on training and continuing education. This amount of money is equivalent to the entire budget for a mediumsized university. In providing all of this, the BMW Group is banking on its own, internally boosted trainees and supports the careers of both specialists and generalists to the same degree. Furthermore, exchanges across locations and department provide important changes and opportunities for professional development. In this way, we ensure that all of our associates have strong skills and qualifications that are well above the standards of the competition. What we demand An important component in the BMW Group human resources policy can be described in just two words: Performance and Reward. The performance of our associates serves as the basis for the decision regarding the reward from the company. We expect independence and personal initiative as well as the determination to continue learning on an ongoing basis and openness to change. It is our task to create a climate of trust where you do not see change as a threat but rather as an opportunity. It will be your task to instigate changes yourself when you discover the potential for improvement. To assist in the orientation of our associates, we regularly hold meetings and establish agreements on objectives. These in turn follow the mission and goals that exist for each department in the company group. We only work with people who want to exploit their potential to the fullest. Recriutment program Regardless of whether you are a high school or college graduate our people development programmes offer you a customized way to join our company. Our policy is to Challenge and Encourage. For you, this means you will have many obligations and even more opportunities. Depending on the status of your education, your job experience, and your preferred location, you might be eligible for one of our development programmes. This development is just one of many opportunities for you to gain the skills you need for demanding tasks in our company group. In connection with the BMW Groups efforts to secure trainees, all of the programmes are oriented towards the future recruiting needs of the company. No matter how you join us, you will increase your own skills and improve your career opportunities.

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4.1.8 BMW Present Scenario:

Refined & pronged strategy that allowed BMW to entrench itself in Indian market The uninterrupted launches of its different series and models, rigorous marketing strategy and strong corporate communications have contributed largely to the company's success in India. In 2009, BMW India retained the top first position in the luxury car segment in India for the second consecutive year with a market share of over 40 per cent. With 6246 cars delivered to customers in the calendar year 2010, BMW India achieved the "highest sales by a manufacturer in the luxury car segment in a year". BMW India, the pioneer in bringing luxury dealerships to India, has set a decisive course in India. In March 2011, BMW India claims to have delivered 1027 cars to customers. Andreas Schaaf, president, BMW India, said: "BMW India is proud to become the first luxury car manufacturer to cross the 1000 mark in a single month. 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. As the market leader in the Indian luxury car segment, I am convinced that we are wellpositioned for a very promising future." The company delivered 2147 cars to customers in calendar year 2011. Schaaf further added, "Today, BMW stands for sport-inspired and efficient driving. The BMW 5 Series has contributed tremendously to the success story of BMW in India and is the largest selling luxury sedan in its segment. The new BMW 5 Series has received extremely positive feedback from the market and has positioned itself as the best business limousine in India." By end of 2012, BMW India aggressively plans to expand its dealer network by doubling the number of outlets to 40 major metropolitan centers and emerging markets in India from the present 20 outlets.

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BMW India Future growth

BMW is poised for rapid growth in India. Last year, a carefully planned market entry strategy for BMW was successfully executed that set the course for long-term success. Since its inception in 2006, BMW India has stood ground in a fiercely competitive environment, delivered strong operating performance and achieved market leadership in the premium car segment in 2009.

Diversification The German carmaker had recently announced that it would enter into the pre-owned car business: 'BMW Premium Selection', by next month. The company is optimistic and is aiming at achieving 30 percent of its total sales in the country to come from this business. The company will open the first showroom for pre-owned cars in Chennai on April 1 and follow it up with an outlet in Gurgaon by the third quarter of this year. The rationale behind entering into the used cars segment, according to company officials is based on a study conducted in 2007, where it found on an average, a customer uses a premium of luxury segment car in the country for five to six years. The company intends to bring down the gestation to around 3-4 years. The strategy is that if the company is able to establish its brand across the country, then the pre-owned car business should comprise at least 30 percent of its annual sales. The company is also particular that it would select the vehicles from the owners only after a thorough inspection by its engineers and technicians to make sure the vehcile is in perfect condition. Then the pre-owned car would be sold by giving a warranty for the cars to the new customers, who buy these used cars. BMW is looking forward to create an entirely new business vertical with the introduction of used-cars and in order to develop this business module into a successful venture, the company would be dealing with the BMW used cars which were purchased since the launch of the company's Indian operations in 2006 will be accepted from the owners. In other words, the company won't accept BMW cars directly imported before 2006 by the car owners. To achieve its growth, the car manufacturer is also adding 50 more human resources at its Chennai facility this year from the current number of 160 workers, meaning an increase of 30 percent. The firm will also assemble X1 here and start rolling out the vehicles by December this year and it will also start the homologation process of the new five series shortly.

26

Sales growth The company sold over 700 units in the first two months of this year. Clearly, this is a positive indication of the kind of growth the company is aiming to achieve. This year alone, the company is aiming at achieving a double digit growth, meaning it is looking at a sales of 4000 units this fiscal. What with its sales target exceeding the existing capacity at the Chennai facility, BMW is looking to increase output in the near future. Currently, the Chennai factory has a capacity of 3,000 units a year and it is planning to invest more for the capacity expansion. Last year, the company raised ahead of Mercedes to achieve the first position in the premium car segment in the Indian market with sales of 3,619 units against 3,247 units sale of Mercedes. Three and a half years later, BMW has kind of established as a lead player with around 41 percent market share in the Indian luxury car segment against a mere nine percent back in 2006, when it started the Indian operations and that says it all! If you take the sales growth this year, the first two months have seen a sale of 709 units of BMW, clocking a growth of 38 percent over the same period, last year. What is more, the company is also increasing its dealership network from the current 17 to 24 by the end of this year and would focus more on Tier II cities.

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4.1.9 Employee Recommendation & Suggestions

Pros great brand, cool products - great plans for the future - co-workers are the best of best of the best - healthy competition with peers. National Sole Importer. Market exposure. Good payment. Work Life balance, International colleagues, Fun product, reasonable Employee Car Lease program (includes Insurance coverage). Flat org. Very flexible for work. global platform, standardized regulation system, easy-going employees and executives, great team building, opportunity to keep touch with best talent in the mobile industry

Cons Networks of influence can be difficult to crack into and exploit. Awareness of opportunities and opening can be difficult to identify in advance Unpleasant environment. Unorganized structure. Office politics seem to matter more than the job at hand. Unclear path. Lack of development. High job turnover. Small community. Could be hard to get promote as there are small community. Limit opportunity to be promoted to top level, average salary and benefits, no staff canteen, limit OT compensation, average training system. Such a large company that the lower workers sometimes feel left out of the bigger picture and overall mission of the company No guidance given to juniors from the senior members of the workforce. Not a friendly working environment.

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Advice to Senior Management Look to the breadth and diversity of your workforce - don't confine your attention to the traditional BMWler type candidates. Leadership There are smart people who do not work at BMW. Applying the 'Non-Disclosure' policy to every bit of common information is sometimes a little over kill. More cross- dept communication and cooperation, higher salary, pay more attention to staff retention. More powerful PR activities needed. Encourage more team activities Take more of an initiative to new workers and try and make them feel part of the team. Be clearer on work duties and that of what is expected from a new employee.

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4.2 MERCEDES BENZ

4.2.1 Mercedes-Benz

Mercedes-Benz is a division of the German manufacturer Daimler AG, and the brand is used for automobiles, buses, coaches, and trucks. Mercedes-Benz is headquartered in Stuttgart, BadenWrttemberg, 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. Subsidiaries and alliances As part of the Daimler AG company, the Mercedes-Benz Cars division includes Mercedes-Benz, Smart and Maybach car production.

4.2.2 Mercedes-Benz India

Mercedes-Benz India is a subsidiary of Daimler AG based in India. Daimler entered the Indian market and set up Mercedes-Benz India Ltd in 1994. The company was later renamed DaimlerChrysler India Private Ltd after the merger of 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 reached the top 100 most trusted brands of India published by The Brand Trust Report and also won the Best Brand Award by Auto India Best Brand Awards 2011. Manufacturing facilities Daimler has a commercial vehicle plant outside of Chennai which it is currently upgrading with an investment of 700 million Euros. The passenger cars manufacturing plant is located in Pune.

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4.2.3 Mercedes-Benz India Product Portfolio:

The C-Class and E-Class are assembled locally while others are fully imported from Germany. Vehicles Manufactured/assembled locally

Mercedes-Benz C-Class (Sedan only) Mercedes-Benz E-Class (Sedan, Coupe, and Cabrio) Mercedes-Benz S-Class

Imported

Mercedes-Benz CL-Class Mercedes-Benz CLS-Class Mercedes-Benz GL-Class Mercedes-Benz M-Class Mercedes-Benz R-Class Mercedes-Benz S-Class Mercedes-Benz SL-Class Mercedes-Benz SLK-Class Mercedes-Benz G-Class Mercedes-Benz SLS AMG

Commercial vehicles

Mercedes-Benz Intercity Bus

Sales and service network Mercedes-Benz India currently has 22 dealerships across 17 cities in 11 states and 2 Union Territories and Service Stations in 32 cities in 16 States and 2 Union Territories of India.

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4.2.4 Sales & Marketing

Marketing Marketing actively promotes positive visibility for MB (Mercedes-Benz) and strengthens customer relationships and product and brand public perceptions. This is achieved via sporting and lifestyle events, product placement, internet marketing, relationship marketing, and advertising. Marketing also develops and manages MB's current and future product development, and creates and implements targeted marketing strategies for each product as well as for the Mercedes-Benz brand. Core areas include:

Product Management Events Marketing Marketing Communications Internet Marketing Relationship Marketing Market Research & Strategy smart Marketing

Sales
The MB sales function primarily supports the dealer network with new and certified pre-owned sales on a national and regional level. Nationally, they develop plans, budgets, programs and policies to support the achievement of national sales objectives. Sales also work closely with the dealer network to translate national programs into tactical programs that can be implemented across a region and on the dealership level. Additionally, the corporate sales group handles fleet sales. Core areas include:

Sales Operations Regional Operations Pre-Owned Operations Retail Development Corporate Fleet Sales Remarketing

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Human Resources MB recognizes that people are what make our star shine. That is why the aim of the Human Resources department is to find, recruit and retain a highly qualified, diverse workforce, while striving to offer benefits and develop a culture that makes MB a great place to work! Core areas include:

Employee Development & Organizational Design Compensation & Benefits HR Operations - Talent Acquisition and Associate Relations

Diversity The major focus of MB's Diversity and Inclusion strategy is building the sustainability of diversity as part of MB's business strategy and developing diversity and inclusion as a competitive business advantage, which for MB continues to be compelling. Underlying this is the assumption that the business case for diversity and inclusion is based on the realization that changing demographics and increased buying power of the diverse and multicultural segments of the marketplace are happening now. MB defines "Diversity" in a broad and inclusive manner. MB believes diversity encompasses understanding and valuing the differences that all of us exhibit. These differences go beyond ethnicity, race, gender, physical ability, age, sexual orientation and religion, to include national origin, education, and differences in work experience, personalities, lifestyles, cultural background, and countless other factors. Inclusion is defined by MB as the opportunity for all people to equally and fully engage. MB believes an inclusive corporate culture is one in which all people feel comfortable and respected regardless of individual differences and characteristics. MB engages associates at all levels in internal and external diversity events and activities, which allows for the introduction of a fresh perspective and new ways of thinking. Additionally, it promotes the Brand as an active supporter of key Diversity Organizations through the presence and participation of MB associates. For the associates, attendance and participation provides opportunities to represent the Brand acquire knowledge and interact with members of diversity organizations, many of whom are existing or prospective customers.
33

MB is committed to recruiting, identifying, developing, retaining and promoting people from all backgrounds, experiences and cultures. Diversity represents more than just immutable physical characteristics; diversity means different ways of thinking. Accordingly, we participate in career fairs and recruiting platforms associated with external diversity organizations, which include the Society of Women Engineers, the National Society of Black Engineers, the Association of Latinos in Finance and Accounting and Ascend Pan Asian Leaders. Strategic objectives are to ensure:

Diversity and inclusion are embedded in MB's corporate culture A diverse workforce with respect to recruitment, retention, development and promotion Learning and Performance activities include diversity and inclusion content Marketing activities reflect the diversity demographics of our customers Purchasing activities that encompass diverse suppliers A dealer network that leverages the diverse demographics of our customers

Organizations we sponsor: MB supports a variety of national and local Diversity organizations and events through sponsorship and participation in conferences, conventions, awards events and other activities. MB's presence at these events underscores our commitment to support organizations that champion diversity and inclusion. Furthermore, our participation provides opportunities for associates to learn about and engage in diversity and inclusion issues and maintain brand exposure to key diverse demographics.

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4.2.5 Employee Development Program

Work-Life Balance
We believe that dedication to work shouldn't require major sacrifices in other aspects of life. Flexible work arrangements: Based on the individual needs of the associates and their department, options for flexible work arrangements are available including:

Telecommuting Compressed work week Altered working hours In addition, we have Summer Hours for all associates from Memorial Day through Labor Day. 8:30am-5:00pm Monday through Thursday and 8:30am-2:30pm on Fridays.

On-site Fitness Center: The fitness center includes cardio (treadmills, ellipticals, bikes), weight training equipment, and free weights. The fitness center offers a variety of classes before work, during lunch, and after work. Classes include spinning, yoga, Pilates, and circuit training. It has two full-time trainers on staff plus a massage therapist on Mondays and additional staff that come to teach classes. Reimbursement option is available for employees who prefer to work out elsewhere. Concierge Service: 24/7 concierge service that can do everything from book a restaurant for dinner to plan your next vacation. Absolutely free to all associates. Employee Assistance Program (EAP): The Employee Assistance Program consists of "Associate Assistance", "Child Care Assistance", and "Adult Care Assistance". This program is an absolutely free and confidential service available to all our associates as well as their families and can be accessed via a toll-free number or though the web. Also: Dry cleaning service, car washing service, onsite vendor fairs, credit union, and associate discounts.

35

Culture Between big product launches, global town halls and the occasional picnic, we work to foster a sense of community in every corner of the company, in every corner of the globe.

Product launch parties/special events Promotional events, sporting events, movie events Holiday party and associate picnic Recognition and Rewards Bimonthly employee newsletter: includes news on products, events, employees, and HR topics Product evaluation opportunities Monthly Town Hall Meetings: hosted by the CEO and live broadcast to all remote locations.

Employee Benefits Simply put, the sustained strength of any company depends on the health and well being of its employees. Mercedes-Benz recognizes that both employees and their performance are critical to the success of the organization and play a vital role in the achievement of our goals. Accomplishments are recognized and rewarded through a compensation program that is designed to be both flexible and highly competitive. Here are just some of the benefits that make MB an amazing place to work:

Medical, dental, and vision plans Short- and long-term disability and salary continuation Life insurance/AD&D Spouse and child life insurance Auto/home/pet insurance Same sex domestic partner benefits Flexible spending accounts Annual bonus for all associates Wedding/moving day off Birth/adoption day off 15 total holidays and floaters

36

Development Programs At Mercedes-Benz we believe in continuous learning -- the kind that helps you grow both personally and professionally throughout your career. Find out more. MB commitment to development is demonstrated by own in-house Human Resources Development and Learning & Performance organizations and through the various formal and informal programs that support all levels of associates professionally and personally. In addition to the variety of tools and resources MB employs, such as:

Individual Development Plans along with goals built into the Performance Management process Voluntary, confidential 360 degree feedback surveys Formal Succession Planning Formal and Informal Mentoring and Coaching Tuition Assistance

Our Human Resources Department champions the following programs: Internship/Co-Operative Education Program: Through target institutions, Juniors and Seniors with above average grades can gain valuable work experience while completing their studies. Intern assignments span from 2 - 6 months and are offered in various business areas (Sales, Marketing, Product Management, Finance, Human Resources, IT, etc.) throughout the company. Leadership Development Programs: We promote development to associates in all phases of their career with our formal leadership programs. Whether you are an aspiring professionals, new manager, experienced manager and/or strategic thinker, there is potential to participate in the Emerging Leader and Frontline Leader Development Programs as well as the Advance Leadership Development Program for managers and our Leadership Summit for the senior managers. Our Strategic Leadership Forum, also call upon experienced leaders to help create the companys vision and guide its direction for the future. The extensive training resources offered through our MB Learning and Performance Department which supports associate development in a variety of ways including on-the-job opportunities, facilitated training and education as well as by encouraging self-directed learning through reading, audio books and by providing the convenience of computer based e-Learning Programs.
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4.2.6 Sales Performance Worldwide Mercedes-Benz Passenger Cars with strong growth rates in retail sales in 2010

38

India Mercedes-Benz India recorded sales of 5819 vehicles in 2010 compared to 3250 vehicles sold in 2009 with a sales growth of over 80%.

Mercedes-Benz Domestic Car Sales Model wise 2004-10 Model 2004/05 785 825 (05) 144 (2005) 2006 2007-08 883 922 248 1,127 1,048 518 2008 1,765 1,167 561 2009 1,607 1,048 467 2010 2011

Mercedes C-Class Mercedes E-Class Mercedes S-Class

5,109 (All 6,698 (all models, Jan- models JanNov) Nov) 245 (Jan) 22 (Jan)

Mercedes CLS/SLK/SL/CLK/M

Na

118

125 141 (models (incl. 6 CBU other than 80 Mimports(Jan) C,E and S class) class)

Mercedes-Benz India ends 2011 on a significant high Approximately 30% year on year growth Strong customer traction in sedan & SUV segment 2011 highlights: Star Lounge, Star Lease, Official Automobile partner for BIC, SaffronArt association Strong outlook for 2012 Performance Driving Academy and new Paint shop in 2012

Mercedes-Benz India ended 2011 with a strong growth of approximately 30 percent year on year in the backdrop of a looming overall slowdown in the industry.

39

The company sold 7430 units in the period from January-December 2011 (JanuaryDecember 2010: 5819 units). The growth drivers for Mercedes-Benz India in 2011 have been its segment leading flagship sedans, the new C-Class and the E-Class. With a spur in demand in the SUV segment, Mercedes-Benz SUV portfolio found a strong customer traction, which is reflected in the strong performance of the M-Class and the GL-Class. The CBU segment comprising super performance cars and other brand shapers also witnessed significant growth compared to 2010. The strong sales of SLS AMG at 2.5 crores; G 55 AMG at 1.1 crores and the new SLK 350 and E-Class Cabriolets reaffirms the high demand of sports cars from Mercedes-Benz portfolio and also the growing preference for the brand among the customers. The unique Formula 1 initiatives that Mercedes-Benz undertook around the inaugural Indian GP, have helped the company in firmly reaffirming the sporty attributes of the brand, in addition to that of luxury, which is synonymous with the Three Pointed Star. Mercedes-Benz Indias varied product portfolio along with its first-of-its kind initiatives like the Star Lounge, Star Lease, Performance Driving Academy, collaboration with Fashion and Art has significantly helped to reach out to newer and varied segment of customers. Our Network reach to over 29 cities and 61 touch points backed up by a third year warranty makes us the only luxury car manufacturer to reach out to all our customers said Mr. Peter Honegg, Managing Director & CEO, Mercedes-Benz India. Commenting on the growth achieved in 2011, Mr. Debashis Mitra. Director, Marketing & Sales, Mercedes-Benz India said, The strong growth is a testimony of the fact that we provide rich value to our customers and dont believe in decontenting cars. Consumers who have arrived in life and are putting their hard earned money for the brand, expects no compromise on Performance and Luxury. We will continue our efforts to excite our customers with newer exciting product offerings and more avant-garde initiatives in 2012 Mercedes-Benz is also committed in introducing the culture of motorsports in India and it will be the companys endeavour to promote Performance Driving in India. As an official partner to the Buddh International Circuit, Mercedes-Benz India, in assistance with their AMG division headquartered in Affalterbach, is all set to inaugurate Indias First Performance Driving Academy in the beginning of 2012 . Mercedes-Benz Indias growth will continue to soar in the coming years as we are seriously committed to the Indian market and to our discerning customers, by ways of additional investment in our state-of-the-art plant, introduction of new and exciting products and also our efforts to reach out to customers in newer markets through expanded network. added Mr. Honegg.
40

4.2.7 Mercedes-Benz Cars Strategy

The most successful car company in the premium and luxury market

41

Mercedes-Benz Cars Sales and Marketing Strategy

42

1. Brand Aspiration The new brand aspiration of Mercedes-Benz: Our brand star

43

Cross Functional Brand Team is responsible for the roll-out of the brand positioning across all functions Functional strategies have been developed per brand experience Operational targets & measures have been defined Direct implications for products services etc. Image study controls efficiency of measures for respective targets

44

Brand Campaign: Print, TV, online and media communications

45

46

2. Effective Marketing Comprehensive communication activities in 2010 support the three brand values

Customers can experience the fascination of the Mercedes-Benz brand on their iPad

47

3. Product portfolio

Examples of fascinating new product highlights

48

4. Effective processes New Sales Organization More Customer, less bureaucracy

5. Successful dealer network Mercedes-Benz The Best Premium Franchise

49

4.2.8 Future
Ambition at Mercedes-Benz Cars: The most successful car manufacturer in the premium and luxury segment

Mercedes-Benz plans to launch five compact cars in India; invest Rs 350 crore
German car manufacturer Mercedes-Benz plans to launch three to five compact premium cars in India by 2015, as part of a strategy to regain its top slot in India's luxury car segment. The Stuttgart-based company is likely to bring in all of its 10 new global products into India. It also plans to invest Rs 350 crore till 2014 in its facility at Chakan, near Pune, for a new paint shop and two assembly lines for B- and A-class cars, and ML and GL SUVs. "India is an important growth market for us, where we see potential. We definitely see a high demand for vehicles of the A- and B-class segments in India," said Dieter Zetsche, chairman of the board of management of Daimler and head of Mercedes-Benz Cars. Zetsche declined to comment on the exact investment but told that the company will expand its dealer network and ramp up production in the country. Mercedes-Benz, which trails BMW in the premium segment in India, is also considering assembly of SUV's ML, GL and GLC-Class in India. These products are likely to be rolled out over the next two to three years and will be priced competitively.
50

Mercedes-Benz India's chairman, Matthias Luhrs, who is also vice-president of sales at the headquarters, is likely to submit the India growth and investment plan to the board of management in the next few months. "Over the next five years, Mercedes Benz has lined up 10 new launches globally and our aim is to reach out to the Indian market as fast as possible," said Luhrs, adding that with the entry of a more compact model, the car manufacturer will more than double its sales in India to over 15,000 units in the next couple of years.

51

4.3 Overall
Competition Product Mapping

52

Retail Sales - India

53

Budget 2012-13: Mercedes-Benz, Audi, BMW to get more expensive by up to Rs 3 lakh Following the hike in excise and customs duties in the Budget for 2012-13, luxury vehicles in are set to become more expensive by up to Rs 3 lakh as auto makers have decided to pass on the additional burden. Premium vehicle makers, including Mercedes Benz and Audi, have decided to increase the prices of their vehicles and are currently finalising the exact amount of hike, while BMW is evaluating its options. "We are going to pass on the additional burden to customers. We have not decided the exact amount yet, but on an average it will vary between Rs 2 lakh and Rs 3 lakh," Mercedes Benz India Director (Corporate Affairs and HR) Suhas Kadlaskar said. The premium car makers usually bring in advanced technology into the country and this step will be very counter productive, he added. "The Budget is very disappointing for us. We were hoping for some reduction in taxes for large vehicles instead of hiking it further," Kadlaskar said. Mercedes-Benz India currently manufactures its C, E and S Class luxury sedans in India. The existing prices of these cars vary between Rs 26 lakh and Rs 1.01 crore. The other models that the comapny sells here through fully imported route are ML-Class, GLClass, E-Class Coupe, E-Class Cabriolet, R-Class, SLS AMG, AMG-Series and Maybach. As per its website, these vehicles are available between Rs 45.39 lakh and Rs 5.85 crore. Another luxury car maker Audi India also said it may hike the prices of its products in the country.The company may now re-evaluate its pricing strategy in India. Finance Minister Pranab Mukherjee had announced hiking the basic customs duty on imported vehicles valued over USD 40,000 and with engine capacity of over 3,000 cc and 2,500 cc for petrol and diesel driven vehicles respectively to 75 per cent from 60 per cent. Another luxury car maker BMW, however, said it has not taken a decision on passing on the burden to consumers. "We have not decided about the price increase yet. We finalise our startegy next week whether we will pass on the additional burden to consumers or not," a BMW India spokesperson said.
54

In the Budget excise duty on cars have been also increased. Petrol cars with engines under 1,200 cc and diesel cars with engine capacity under 1,500 cc, but the length exceeding four metres to 24 per cent from 22 per cent and a fixed duty of Rs 15,000. Petrol and diesel driven vehicles having length exceeding four metres and engine capacity of over 1,200 cc and 1,500 cc respectively will now be charged with an ad valorem duty of 27 per cent, instead of the earlier 22 per cent and a fixed duty of Rs 15,000. Society of Indian Automobile Manufacturers (SIAM) said the vehicle makers were not expecting duties on large cars to go up in the Budget. "While the auto industry appreciates that there was a compulsion to increase base rates of service tax and excise duty, the industry had hoped that the excise duty on large cars would have come down from 22 per cent to 16 per cent rather than going up," SIAM President S Sandilya said. The 27 per cent excise duty will lead to significant increase of tax for large premium cars, he added. Sandilya, however, welcomed the move to impose higher customs duty on imported big luxury vehicles. "The increase in customs duty on cars and MUVs, valued above USD 40,000, from 60 per cent to 75 per cent seems to be a step to encourage local manufacturing, value addition and employment," Sandilya added.

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Chapter 5:Analysis & Findings

Data Analysis and Interpretation
Employee Survey

120% 100% 80% 60% 40% 20% 0% bmw mercedes benz agree neutral 62% 35% 12% 24% 9% 54%

agree strongly

Leadership and Planning The execution in planning process in Mercedes is slightly low as compared to the BMW because of the reason that the employees are not able to understand the working environment of Mercedes as whatever they plan to work it take some another direction which leads to confusion in the whole process.

56

100% 99% 98% 97% 96% 95% Bmw Mercedes Agree Strongly Agree Neutral 98% 2% 3%

97%

Corporate Culture Here, the people of Mercedes feel good with the open environment in their working as they get to become the part of the functioning of the whole process which encourages their morale to perform good and bring out the desired result through their initiatives towards their work as compared to the working of the BMW.

57

100% 80% 60% 40% 20% 0%

23% 23%

28% 22%

54%

50%

Bmw Mercedes Agree Neutral Disagree

Communications BMW works on the principle of Gang Plank, where there is a healthy communication between the people working at same department. This helps them to feel as an important part of the organization which makes them to perform at their best without any conflicts between the people of same departments which is slightly low at Mercedes.

58

120%

100%
80%

12% 35%

8% 19%

60% 40% 20% 0% Bmw Agree Mercedes Neutral Disagree 53% 73%

Career Development The employees feel good when they are appraised for their performance. This is very well understand by the Mercedes to timely appraise their sales staff in order to get their maximum efforts in selling their cars because once the sales personnel feel appraised they will perform more better. But on the other hand, BMW is behind in this type of motivation activity.

59

100%

80%
60% 40% 20% 0%

25 8

10

90 67

Bmw agree

Mercedes neutral disagree

Role Today in order to get your work done effectively and efficiently, every company needs to allocate some kind of authority to their subordinates so that they feel motivated and important in performing the work which is of some managerial level. This strategy is executed by Mercedes so as to increase their sales by providing some kind of power in the hands of their sales personnel which is not done in BMW.

60

120% 100% 25% 80% 60% 40% 20% 0% bmw agree

Recognition and Rewards The employees will always feel happy and motivated when their appraisal towards their performance in measured in terms of salary and designation. This strategy is well understood by BMW who provides their sales personnel a good remuneration scheme and rewards to make them feel motivated so that they can perform much better than earlier for more promotions. This practice is not fully executed in Mercedes.

35%

25% 40% 50% 25% mercedes nuetral disagree

61

100%

80%
60% 40% 20% 0%

25 8

10

90 67

Bmw Mercedes agree neutral disagree

Teamwork and Cooperation The principle of Esprit De Corps means teamwork which is very well recognized by Mercedes which helps them in increasing their sales. The individual effort is fine but does not generate the effective results as it can be achieved through the teamwork which makes the employee feels motivated and the part of the organization and also maintain healthy employee and employer relationship which is not at all in the case of BMW.

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100%

100%
99% 99% 98% 98% 97%

1 2

99 98 Bmw Mercedes agree neutral dsagree

Your Immediate Supervisor The principle of equity is fully practiced by BMW because they work in healthy environment where the subordinate works according to the specifications of his superior because he has trust on his superior that he will treat him and all other subordinates in the fair manner without being partial to anyone. This practice is not much into existence in Mercedes.

63

100% 99% 98% 97% 96% 95% 94% 93% 92% Bmw Mercedes agree neutral disagree 95 96 5 4

Working Conditions The management should provide minimum workload on their sales personnel in order to make them feel fresh and can achieve their sales target effectively and efficiently. The management should also focus on the job security of their employees which makes the employees feel motivated. These activities are done by both BMW and Mercedes but here also Mercedes works in this form more efficiently.

64

100%

22

80%
60% 40% 20% 0% Bmw agree Mercedes neutral disagree 92 75

Training Program The sales personnel will not perform effectively and efficiently until and unless they are not provided with a good training program. This is very well executed by BMW as they hire the best trainers for their sales personnel to get them trained and make them fully understand all the important aspects of selling. This brings motivation in the sales personnel and makes them encourage performing well. But this type of training program is not organized by Mercedes.

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100% 98% 96% 94% 92% 90% 88% 86% 84% 82%

2 12 98 88 Bmw agree Mercedes neutral disagree

Benefits The employees not only satisfied with their salary packages but also with the other benefits which are provided by the company. BMW works on it and provide benefits to its sales personnel on achieving their sales targets in order to make them feel motivated and perform more and more. This principle is not appropriately followed by Mercedes.

66

Management Survey

100% 18 80% 60% 40% 20% 0% 82

95

Bmw Mercedes agree neutral disagree

Expectations The authority and responsibility given to the subordinates by their respective superiors are because they expect their subordinates to work in an environment where they can show their skills and feel motivated and perform their selling activities effectively and efficiently. This is more smartly done by Mercedes than BMW.

67

100% 18 80% 60% 40% 20% 0% 82

10

90

Bmw Mercedes agree neutral disagree

Productivity The people at Mercedes work with full dedication and enthusiasm. This can only happen when there is a proper understanding between seniors and juniors and even when there is simple functioning of work without any complications. This leads Mercedes to work at it extremes to achieve its desired sales target. But, in the case of BMW, they perform their work which is slightly different from Mercedes.

68

100% 80% 60%

12 12

98 40% 20% 0% Bmw Mercedes agree neutral disagree 76

Teamwork Management always try to achieve its sales target through every possible manner. For this matter, they always try to make a healthy relationship between the employees and wants that whatever task is given to the employees they should do it in a team rather than to do it individual which will help them in increasing their efficiency. This is done by Mercedes very well than BMW.

69

100% 80% 60% 40% 20% 0%

7 3

10 13

90

77

Bmw Mercedes agree

Security When there is a feeling of secured a person will feel motivated and will able to work well and show some valuable performance. This aspect was well understood by BMW who always provide feeling of job security to its seniors and juniors so that they can perform well and achieve their targets. This aspect was not fully implemented by Mercedes.

neutral

disagree

70

120% 100% 80% 60% 40% 20% 55% bmw agree nuetral 25% 20% 45% 30% 25% mercedes disagree

0%

Creativity The most important factor which counts in BMW is that the employees working there possess the quality of being creative and innovative by bringing out new ideas and plans on which they can work and achieve their targets effectively and efficiently. The power of showing creativity is not that much superior in the case of Mercedes.

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120% 100% 80% 60% 40% 20% 53% 25% bmw agree nuetral mercedes disagree 19% 28% 42% 33%

0%

Communications An organization will only perform well when there is a proper flow of communication between every individual employee and employer. This can very well noticed in the case of BMW where communication is very important to achieve their goals on time without any hurdles. This can also be seen in Mercedes but slightly lower than BMW.

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120% 100% 80% 60% 40% 20% 22% 50% 54% 28% bmw agree nuetral mercedes disagree 14% 32%

0%

Fair Play The management at Mercedes always tries to make a good balance between its employees and for that they treat their every employee equal. They provide fair justice to every employees grievance and also provide the right kind of remuneration scheme so that employee gets encouraged to work more and more. This feature is not seen in the case of BMW appropriately.

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120% 100% 80% 60% 40% 20% 40% 22% bmw agree nuetral mercedes disagree 38% 17% 20% 63%

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Ethics and values If we talk about the ethics and values that are followed in the companies then Mercedes will get a higher rank as compared to BMW which is evident from the statistics gathered. Ethics and values play a vital role in any organization and reflect the core values of people. Therefore BMW should work on this aspect.

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120% 100% 80% 60% 40% 20% 88% 80% 12% 20%

0%
bmw agree nuetral mercedes disagree

Excellence Mercedes and BMW both the companies aim at excellence and the management of both the companies agree to the fact that striving for excellence is one of their top priorities. Both the counterparts know this aspect of the business and it wouldnt be wrong to say that they are its masters as well.

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Chapter6: Recommendations
It wouldnt be wrong to say that both the companies i.e., Mercedes and BMW are one of the best in their field but there are some things which are done well in one company and which the other lacks. If both of them learn from its rivals then they could attain a better position for that there are some recommendations for both to have an upper hand over the other. BMW BMW lacks in its corporate culture. The management believes that it has an open and inviting corporate culture but there is a diversion of beliefs in this aspect between the management and employees. Employees at Mercedes feel they are a part of the whole process but this feeling is lacking in the employees of BMW. The career development path at BMW is not well defined at it should be, at BMW, according to the perspective of employees. They feel neglected at this part employees are one of the most important assets of any company and they should be valued. If the employees do not feel they have an opportunity for growth and improvement they would not put in their best and will turn into a liability. The teamwork at BMW is not at appropriate level. The management should work in that form where the whole organization will put their joint efforts to achieve their desired results effectively and efficiently. The efforts given by everyone will bring the company to a new level. Not much authority allocated to the staff personnel. It should be given so that employee feels motivated. MERCEDES The flow of information from one department to another is not effective enough. Therefore, the company should focus on more open movement information between departments and make the process more transparent and less hierarachial. The mission of Mercedes is to do things creatively at every step but the personnel of the company does not feel that they have the space to do things creatively. BMW is much more open in this context. Therefore the forrmer should apply this mission statement in practicality as well. The principle of equity is fully practiced by BMW because they work in healthy environment where the subordinate works according to the specifications of his superior because he has trust on his superior that he will treat him and all other subordinates in the fair manner without being

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partial to anyone. This practice is not much into existence in Mercedes And therefore the latter should work on it. The employees will always feel happy and motivated when their appraisal towards their performance in measured in terms of salary and designation. This strategy is well understood by BMW who provides their sales personnel a good remuneration scheme and rewards to make them feel motivated so that they can perform much better than earlier for more promotions. This practice is not fully executed in Mercedes and therefore the matter should be looked into.

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Chapter7: Conclusion
The major objective of the entire study is to analyse and get a good understanding of the top 2 automobile brands of the world. These companies have been in existence from decades and have been engaged in excellence since the very beginning. Both the companies being competitor to each other have a lot of commonalities in different parameters and functionalities. However our objective was to understand what that one company is does better than the other and gives it an upper hand. The rivalry between BMW and Mercedes Benz dates back to 1959 and in our opinion, it can be classified as being beneficial for both the companies and consumers. BMW and Mercedes are both top notch brand and serve their employees and consumers with satisfaction and varieties. Finally, we personally believe that they should recruit right, train right, appraise right and maintain them for long working.

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Annexure

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Bibliography
Books Robbins Coulter: Sales Management
NEWSPAPER

The Times of India The Hindustan Times Internet Sites

http://en.wikipedia.org/wiki/Automotive_industry_in_India http://www.bmw.in/in/en/ http://en.wikipedia.org/wiki/BMW http://www.mercedesbenz.co.in/content/india/mpc/mpc_india_website/enng/home_mpc/passengercars.html http://en.wikipedia.org/wiki/Mercedes-Benz http://www.raygain.com/pdf/Indian%20Luxury%20Car%20Market.pdf http://business.mapsofindia.com/automobile/car-manufacturers/luxury-market.html

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