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NAME – SHUBHAM PRASAD

ROLL NO. – 79
MBA – I
TOPIC – MERCEDES BENZ
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INTRODUCTION TO MERCEDES-BENZ

Mercedes-Benz is a German automobile manufacturer, a multinational division of the German

manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks. The

headquarters of Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany. Mercedes-Benz'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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Gottlieb Daimler Carl Benz Wilhelm Maybach

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, working as an

engineer at DMG, developed the spray-nozzle carburettor, a milestone in the success story of the

automobile.

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 already had the brand name "Mercedes"

patented in 1902. To satisfy the rising demand that

accompanied the motor-racing successes and to ensure the

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necessary expansion of production, 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 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 registered office in Berlin and administrative

headquarters in Stuttgart.

In 1928 the German automaker had only four basic models in the medium-size and luxury car segments. Of

these, the supercharged sports car in its various versions S, SS and

SSK (pictured on the right) was the showcase model of the Mercedes-

Benz brand which not only achieved motorsport success, but also

helped improve the company's export record.

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 broke the existing sales record.
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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 in

1994, with headquarters in Pune, Maharashtra, India. Established in 1994, Mercedes-Benz India Pvt. Ltd.

pioneered the luxury car market in India and boasts of more than 128 years of cutting edge innovation in the

luxury automobile industry globally.

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. The company is headquartered In Chakan, Pune, Maharashtra.

Mercedes-Benz was recognized 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 Knocked Down) plants of Mercedes-Benz,

globally.

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 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 it the brand with the densest network in the luxury segment.
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Mercedes-Benz has been associated with India for more than 50 years. Presently, Mercedes-Benz India’s

engagement in India covers several domains:

Local production of Mercedes-Benz cars

Making available imported Mercedes-Benz cars

Commercial Vehicle operations

Global sourcing of auto components

Captive automotive technology research and development

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OBJECTIVES

To study the initial marketing strategies of Mercedes-Benz India Private Limited

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 study the SWOT analysis of Mercedes-Benz India Private

To study the integrated marketing mix in both the eras

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 considerable

amount of time.

The study is based on secondary data and has the limitations pertaining to the usage of the data.
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MERCEDES LOGO HISTORY

The first edition of the logo, the word “Mercedes” surrounded by an ellipse, appeared on cars manufactured

by Daimler, its predecessor, in 1902. After a while, the company introduced a new brand logo in 1909 — the

glorious star of three points. Technical Director of Deutz, Gottlieb Daimler, designed it. He drew this badge

on a postcard, which he mailed to his wife as far back as in 1872, vowing that one day this image would

become the symbol of a car giant.

The emblem was put into a circle with four little stars above the circumscription “Mercedes” on its bordure

in 1916.

In 1926, after the merging of Benz and Daimler, which resulted in the inception of a new German

automobile brand– Mercedes-Benz, the actual trademark was finally developed. It is a star of three pikes

embosomed with a bordering with laureate wreath and the brand name on it, which still designates Mercedes

cars. Since then the logo has experienced insignificant amendments, the bordering of laurel wreath morphed

into an unpretentious circle.

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MORE ABOUT

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 segment began to change.

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 global developments. In their opinion,

the W124 was a hand-me-down.

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.

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
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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 and was a hit within a

year’s span.

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 changing, they were demanding luxury and class,

an identity.

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 based in Chakkan, Pune, Maharashtra, India.

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.

PROMOTION IN THE MARKETING MIX OF MERCEDES-BENZ

Mercedes-Benz marketing strategy used to focus on the luxury, safety and precision engineering of its cars.

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.

PRICING IN THE MARKETING MIX OF MERCEDES-BENZ

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, depending on the model.
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PEOPLE IN THE MARKETING MIX OF MERCEDES-BENZ

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 dealers and

Daimler Thailand’s staff. Sales service

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 Germany trip

without any costs.

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

GENUINE ENGINE OIL

Lubricates, reduce wear-and-tear and helps to protect the environment and it is perfectly aligned to

your vehicle
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GENUINE PARTS

Produced precisely according to specifications, can rely on spare parts being genuine

ACCESSORIES AND COLLECTION

Offers individual, stylish and special accessories, provided to suit the needs of every individual

PHYSICAL ENVIRONMENT

Mercedes-Benz showrooms’ environments are very exclusive, modern, with high technological

equipment, which give a prestigious and luxurious feeling.

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 showroom, professional

salesperson, and also provide full service.

Food and beverages are provided

Magazines relating automobile

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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 that helped

them get back the No. 1 spot in 2014.

The marketing mix of Mercedes-Benz shows what a fantastic company Mercedes is, and how, as per Business

Week Magazine, it is the top most recognized global automobile brands. This high profile success is not an

accident but hard work, patience and excellent application of effective marketing strategy all rolled into one.

PRODUCT IN THE MARKETING MIX OF MERCEDES-BENZ

Product is the strongest P in the marketing mix of Mercedes-Benz. Mercedes remain as one of the leading

brands in the Indian market, that too for more than 50 years. The company currently assembles its models —

S-Class, E-Class, C-Class and the ML-Class while other models, including GL-Class, CLS-Class and SLK-

Class are fully imported.

PROMOTION IN THE MARKETING MIX OF MERCEDES-BENZ

Although Mercedes-Benz marketing strategy used to focus on the luxury, safety and precision engineering of

its cars, competition has propelled it to adjust its product to suit the changing consumer attitudes. Now, their
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marketing strategy focuses more on presenting a more energetic, fun loving and approachable side of

Mercedes-Benz.

The evolution of its marketing strategy can also be a connected to its expanded market. Mercedes-Benz has,

over the years, found it necessary to expand the market to include younger consumers. Another marketing

strategy employed by Mercedes-Benz is its decision to slice prices and make the product more affordable to

consumers.

In order to increase communication with its target market, Mercedes-Benz has maintained accessibility to

consumers through the following

Online advertising

Social media

Establishing excellent customer service at its point of sales

Offer warranty under excellent conditions

Television advertising

Print media
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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 Mercedes-Benz has in store:

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 the Budd International Circuit.

Part 2: Popularizing Motorsport: Mercedes-Benz will start a nationwide promotional and 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 enthusiasts and collectors.

The Mercedes-Benz Speed Date is another activity planned around third week of October at Mumbai with

participation of over 100 Mercedes-Benz and AMG cars.

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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 welcome to the grand debut of Indian Grand Prix.

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 Performance Driving

Academy to create a platform to provide high octane experience to 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 with racing as Mercedes-Benz.

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MEDIA PUBLICATION OF MERCEDES-BENZ

Mercedes-Benz joins hands with MaXposure to launch ‘Mercedes’ magazine

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 aspire to be a part of the Mercedes-Benz family.

‘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.

Daimler AG publishes the international counterpart of this avant-garde magazine.

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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 Mercedes-Benz customers with

outstanding content in every issue.”

The Indian edition of the ‘Mercedes’ magazine is for private circulation only and will be couriered

complimentary to Mercedes-Benz customers in India. However, it will be open to 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 reputation of class and prestige.
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QUALITY RANKINGS

Mercedes-Benz dealer in Munich, Germany.

Since its inception, Mercedes-Benz has maintained a reputation for its quality and durability. Objective

measures looking at passenger vehicles, such as J. D. Powersurveys, demonstrated a downturn in reputation

in these criteria in the late 1990s and early 2000s. By mid-2005, Mercedes temporarily returned to the

industry average for initial quality, a measure of problems after the first 90 days of ownership, according to

J. D. Power In J. D. Power's Initial Quality Study for the first quarter of 2007, Mercedes showed dramatic

improvement by climbing from 25th to 5th place and earning several awards for its models For 2008,

Mercedes-Benz's initial quality rating improved by yet another mark, to fourth place On top of this accolade,

it also received the Platinum Plant Quality Award for its Mercedes’ Sindelfingen, Germany assembly

plant.[ J. D. Power's 2011 US Initial Quality and Vehicle Dependability Studies both ranked Mercedes-Benz

vehicles above average in build quality and reliability. In the 2011 UK J. D. Power Survey, Mercedes cars

were rated above average.A 2014 iSeeCars.com study for Reuters found Mercedes to have the lowest

vehicle recall rate.

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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.

They are actually making a car that will enable them easily sell the idea about the car in the market. The

company intends to change the perception of the brand and reposition it so that it is more appealing to younger

generation. They are also sending out the message that they are more approachable than ever before.

PRICING IN THE MARKETING MIX OF MERCEDES-BENZ

Mercedes-Benz manufactures different types of convertibles, full sixed sedans, coupes and sports sedans. It

has as many as 14 car models currently ranging from INR 21,49,000 to 7,68,00,000. Mercedes is leaving no

stone unturned to tap Indian market in premium segments. As a matter of fact, the company deals in a niche

segment where the customer is more concerned with the value they are getting on the product more than

anything else is.

Therefore, the company has tried to ensure it makes high quality cars first and foremost. The company has a

broad price structure outside India, ranging from $30,000 to up to $100,000, depending on the model.
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PEOPLE IN THE MARKETING MIX OF MERCEDES-BENZ

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 dealers and

Daimler Thailand’s staff. Sales service

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 Germany trip

without any costs.

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 THE MARKETING MIX OF MERCEDES-BENZ

Service

Service Work& Maintenance

Pool of experts, qualified and specializes in servicing vehicle at a fair price

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

Service 24 hour – “Star Assist”

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

Genuine Engine Oil

Lubricates, reduce wear-and-tear and helps to protect the environment and it is perfectly aligned to

your vehicle

Genuine Parts

Produced precisely according to specifications, can rely on spare parts being genuine

Accessories and Collection

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

Mercedes-Benz showrooms’ environments are very exclusive, modern, with high technological

equipment, which give a prestigious and luxurious feeling.

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 showroom,

professional salesperson, and also provide full service.

Food and beverages are provided • Magazines relating automobile

OTHER INITIATIVES TAKEN UP BY MERCEDES-BENZ

Mercedes-Benz Performance Drive

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 surfaces while unleashing the

performance of their brightest Stars.

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.

Social Involvement of Mercedes-Benz

Mercedes-Benz is also involved with social-oriented programs across India like:

‘Biofuel from Jatropha’

Road safety project for children

Automotive education, etc.

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2012 Auto Expo: Mercedes launches Mercedes Performance Driving Academy

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, C63 AMG and more such

adrenaline pumping vehicles. The Academy

is open only for two days per quarter and only

64 exclusive slots per year for customers and

enthusiasts have been allotted. There will be

eight participants allowed per 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.

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 turn will benefit the customers.

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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 end of the current fiscal year.

“We have been in constant talks with our headquarters for ramping up

our operations here in India,” he said. “A significant investment will

happen in the CKD (completely knocked down) category. We would

like to do more and more local assembly here. For that, we need to ramp

up the capacity,” said Debashish Mitra, director-sales and 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 them from the number one spot in the

year 2009.

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 in Germany but rated above the latter.

The new target market and marketing mix seems to be paying off for Mercedes where they regained their

number one position in 2014.

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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.