MBA Semester - 1

A PROJECT REPORT

ON

“Mercedes Benz”

SUBMITTED TO,

MIT College of Management, Pune.

In Partial Fulfilments Of the Degree Course of

“MBA”

SUBMITTED BY

Mr. Lokesh Suresh Irabatti

Roll No. – G17

Div. – A

(SEM - 1)

MAEER’s MIT College Of Management, Pune

2015 -2016

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ACKNOWLEDGEMENT

This word of Thank You is much less for the word encouragement which I received from people going out of the way to make me feel comfortable and to

make the things simple.

I extend my profound thanks to our COURSE HEAD for giving me opportunity to undertake this project.

My special thanks and sincere gratitude goes to our guide Mr. Ganesh Tannu for the constructive criticism throughout the project.

My sincere and peculiar thanks to Mr. Ganesh Tannu who has motivated me every time and shared her valuable time and provided me with all necessary

information.

PLACE:- Pune STUDENT’S SIGNATURE

DATE: - Mr. Lokesh Irabatti

Roll No. G17

Division - A

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DECLARATION

I undersigned hereby declare that project report entitled,

Written and submitted by me, is my original work and is done under the guidance of

Mr. Ganesh Tannu

The empirical findings in this report are based on data collected by myself. While preparing this, I have not copied from any other report

I understand that any such copying is entitled to be punished in a way that university authorities deem to be fit.

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Chapter 1

INTRODUCTION ABOUT THE AUTOMOBILE INDUSTRY

In the year 1769, a French engineer by the name of Nicolas J. Cugnot invented the

first automobile to run on roads. This automobile, in fact, was a self-powered, three-wheeled,

military tractor that made the use of a steam engine. The range of the automobile, however,

was very brief and at the most, it could only run at a stretch for fifteen minutes. In addition,

these automobiles were not fit for the roads as the steam engines made them very heavy and

large, and required ample starting time.

The Automobile Industry came of age with Henry Ford in 1914 for the bulk production of

cars. This lead to the development of the industry and it first begun in the assembly lines of

his car factory. The several methods adopted by Ford, made the new invention (that is, the

car) popular amongst the rich as well as the masses.

According the History of Automobile Industry US, dominated the automobile

markets around the globe with no notable competitors. However, after the end of the Second

World War in 1945, the Automobile Industry of other technologically advanced nations

such as Japan and certain European nations gained momentum and within a very short

period, beginning in the early 1980s, the U.S Automobile Industry was flooded with foreign

automobile companies, especially those of Japan and Germany.

The current trends of the Global Automobile Industry reveal that in the developed

countries the Automobile Industries are stagnating as a result of the drooping car markets,

whereas the Automobile Industry in the developing nations, such as, India and Brazil, have

been consistently registering higher growth rates every passing year for their flourishing

domestic automobile markets.

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The World Automobile Industry is turned to the developing markets.

With the developed markets almost saturated, the World Automobile Industry is

now focused on the developing markets of South America and Asia, and Eastern Europe with

special emphasis on BRIC (Brazil, Russia, India, and China).

As per the reports of the International Organization of Motor Vehicle Manufacturers or

OICA(the association of the companies involved in World Automobile Industry), for the

fiscal end in 2010, the automobile manufacturers in the U.S. have been overtaken by those in

Japan, in terms of the total volume of automobile units manufactured worldwide.

Measures to be adopted by global leaders of the World Automobile Industry.

Several significant economic measures are being considered by the major players of

the World Automobile Industry in order to make a smooth entry into the markets of the

developing countries, and to make a name for themselves. The effective measures include:

Reducing the selling prices of the automobiles manufactured in their factories

Improving the levels of after-sales services to keep customers satisfied

Opening manufacturing factories in the developing nations, to reduce effective costs

of production as well as saving shipping charges, and enhancing prompt delivery of

automobile units.

Automobile Industry Trends

In keeping with the Automobile Industry Trends, the leading automobile

manufacturers are turning to the Asian markets that appear set to grow immensely over the

next decade. The automobile markets in the U.S., Europe and the Japan have almost matured

as a result of saturation and appear set to decline through the next decade. In contrast, the

automobile markets spread over the entire Asian continent (with the exception of Japan), are

constantly increasing in size and will be the destination for most of the globally leading

automobile manufacturers.

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The Automobile Industry Trends reveal that the emerging markets of the

developing nations of Asia especially China, and India are backed by their huge population

growth rate, to add to the growing national economy of these two nations.

The rapid growth of the national economy of the BRIC countries (including Brazil,

Russia, India, and China) has enabled a growing section of the population of these countries

to purchase automobiles. Global surveys conducted recently reveal that within the next ten

years, these emerging automobile markets will account for nearly a whopping 90 percent of

the global automobile sales growth. As a result of this, leading Automobile manufacturers of

the world are setting up factories in the emerging markets, in order to serve the potential

consumers better as well as reduce manufacturing and shipping costs. In addition, these

arrangements are enabling the leading global automobile manufacturers to compete with the

local automobile manufacturers, which were flourishing in the absence of quality

competition.

The Emerging Indian Automobile Market

The Indian Automobile Market is a promising industrial sector that is growing

immensely every passing year. The passenger cars are referred to, through the use of the

word "automobile." The whooping growth experienced by the Indian Automobile Market in

the last financial year itself that is the financial year end in February, 2011 was very close to

a 38 percent over the previous fiscal. This statistical fact is a glittering example of the

potential of the growing Automobile Industry in India.

As per the survey conducted by the Society of Indian Automobile Manufacturers,

the total number of automobiles manufactured by the Automobile Industry in India,

throughout the financial year 2010-11, was very close to the 35.5 lakh (3.5 million) margin.

The huge of number of automobiles manufactured by the Automobile Industry in India was

an enormous growth upon the number of automobiles manufactured during the previous

fiscal that ended in 2010.

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The total number of cars that were exported from India was very close to the 5.0 lakh

(5.0 hundred thousand) margin, an encouraging sign for the Automobile Industry in India.

The export of cars manufactured in India comprised nearly 33 percent of the total number of

cars manufactured domestically by the Automobile Industry in India.

The India Automobile Market looks set to prosper, largely due to the growing market

for automobiles that is developing in India. In the financial year that ended in February,

2009, the Indian automobile markets were the fastest growing in the world, with the

registered growth rate touching nearly 20 percent. The Automobile Industry in India

mainly comprises of the small car section, which enjoys nearly a 2/3rd market share of the

entire market for automobiles in India. In this respect, the Indian markets are the largest in

the world for small cars, behind Japan.

The Indian passenger car market which ranks amongst the largest in the world, is

poised to become even larger and enter the top five passenger car markets in the world in the

next decade.

India Automobile Industry

Following India's growing openness, the arrival of new and existing models, easy availability

of finance at relatively low rate of interest and price discounts offered by the dealers and

manufacturers all have stirred the demand for vehicles and a strong growth of the Indian

automobile industry. The data obtained from ministry of commerce and industry,

shows high growth obtained since 2001- 02 in automobile production continuing in the first

three quarters of the 2004-05. Annual growth was 16.0 per cent in April-December, 2004;

the growth rate in 2003-04 was 15.1 per cent the automobile industry grew at a compound

annual growth rate (CAGR) of 22 per cent between 1992 and 1997.

With investment exceeding Rs. 50,000 crore, the turnover of the automobile

industry exceeded Rs. 59,518 crore in 2002-03. Including turnover of the auto-component

sector, the automotive industry's turnover, which was above Rs. 84,000 crore in 2002-03, is

estimated to have exceeded Rs.1,00,000 crore ( USD 22. 74 billion) in 2003-04.

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Major Manufacturers in Automobile Industry

Maruti Udyog Ltd.

General Motors India

Ford India Ltd.

Eicher Motors

Bajaj Auto

Daewoo Motors India

Hero Motors

Hindustan Motors

Mahindra Motors

Hyundai Motor India Ltd.

Royal Enfield Motors

Telco

TVS Motors

DC Designs

Swaraj Mazda Ltd

Government has liberalized the norms for foreign investment and import of technology and

that appears to have benefited the automobile sector. The production of total vehicles

increased from 4.2 million in 2005-06 to 7.3 million in 2006-07.

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The industry has adopted the global standards and this was manifested in the

increasing exports of the sector. After a temporary slump during 2007- 2008 , such exports

registered robust growth rates of well over 50 per cent in 2008-09 and 2009-10 each to

exceed two and- a-half times the export figure for 2011-12.

Automobile Export Numbers

THE KEY FACTORS BEHIND THIS UPSWING

Sales incentives, introduction of new models as well as variants coupled with easy

availability of low cost finance with comfortable repayment options continued to drive

demand and sales of automobiles during the first two quarters of the current year. The risk of

an increase in the interest rates, the impact of delayed monsoons on rural demand, and

increase in the costs of inputs such as steel are the key concerns for the players in the

industry.

As the players continue to introduce new models and variants, the competition may intensify

further. The ability of the players to contain costs and focus on exports will be critical for the

performance of their respective companies.

The auto component sector has also posted significant growth of 20 per cent in 2009-10, to

achieve a sales turnover of Rs.30,640 cr (US$ 6.7 billion). Further, there is a potential for

higher growth due to outsourcing activities by global automobiles giants. Today, this sector

has emerged as another sunrise sector.

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Chapter 2

Mercedes-Benz

Type DivisionIndustry Manufacturing

PredecessorBenz & Cie. (1883-1926)Daimler-Motoren-Gesellschaft (1890-1926)

Founded 1926

Founder Karl Benz and Gottlieb Daimler

Headquarters Stuttgart, GermanyArea served WorldwideKey people Dieter Zetsche, Chairman

Products

AutomobilesTrucksBusesInternal combustion enginesLuxury vehicles

Services Financial servicesautomobile repair

Owner Daimler AGDivisions Mercedes-AMGSlogan The best or nothing.

Website www.mercedes-benz.com

Introduction Of the Company

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Mercedes Benz is a German automobile manufacturer, a multinational division of the German manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks. The headquarters of Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany.

Mercedes-Benz is a German automotive company ranked 12th on 'best-global-brands 2011" same rank it got the previous year 2010, with current brand value of 27,445million dollars.

This company is a multinational division of the German manufacturer Daimler AG, and the brand is used for luxury automobiles, buses, coaches, and trucks. With its headquarter in Stuttgart, Baden-Württemberg, Germany. The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler's 1901 Mercedes and to Karl Benz's 1886 Benz Patent Motorwagen, widely regarded as the first automobile. It traces its origins to Daimler-Motoren-Gesellschaft's 1901 Mercedes and to Karl Benz's 1886 Benz Patent-Motorwagen, which is widely regarded as the first gasoline powered automobile. Mercedes-Benz's slogan is "Das Beste oder nichts" (English: "The best or nothing"). Mercedes-Benz is one of the most recognized and best-selling automotive brands worldwide

Mercedes-Benz firmly staked out its territory atop the premium automobile category with its new tagline, "The Best or Nothing," successfully tying its long heritage of excellence in engineering, performance, styling, and safety to its 125th birthday. Mercedes outranks all other automotive brands in terms of customer loyalty and satisfaction. With its new model rollout, Mercedes has responded to a market that is quickly evolving in favor of green technologies. Half of the product line is available with its Blue Efficiency package, and it's Daimler "Car2Go" car-sharing mobility concept recently launched. Mercedes-Benz also continues to partner with Tesla on lithium-ion battery packs, and it received a 2010 German Sustainability Award for its Atego Blue Tec Hybrid truck.

History

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Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car, the Benz Patent Motorwagen, financed by Bertha Benz and patented in January 1886, and Gottlieb Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-Motoren-Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926, following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz company. Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular during Germany's Nazi period. Adolf Hitler was known to have driven these cars during his time in power, with bulletproof windshields. Most of the surviving models have been sold at auctions to private buyers. One of them is currently on display at the War Museum in Ottawa, Ontario. Mercedes-Benz has introduced many technological and safety innovations that later became common in other vehicles. Mercedes-Benz is one of the best-known and established automotive brands in the world, and is also one of the world's oldest automotive brand still in existence today in 2015, having produced the first petrol-powered car.

For information relating to the famous three-pointed star, see under the title Daimler-Motoren-Gesellschaft including the merger into Daimler-Benz.

Logo history

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1902-1909 1909-1916

1916-1926 1926-1980

1980-1990 1990 & current

Company Profile

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Daimler AG (Daimler), incorporated on July 31, 1998, is an automotive engineering company. The Company is engaged the development, production and distribution of cars, trucks and vans in Germany, and the management of the Daimler Group. The Company operates in five segments: Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. The Company offers its automotive products and related financial services primarily in Western Europe and in the North American Free Trade Agreement (NAFTA) region, which consists of the United States, Canada and Mexico. Its brand portfolio includes, in addition to the automotive brand, Mercedes-Benz, as well as Mercedes-AMG and Mercedes-Maybach, the brands smart, Freightliner, Western Star, BharatBenz, Fuso, Setra and Thomas Built Buses, and Daimler Financial Services' brands: Mercedes-Benz Bank, Mercedes-Benz Financial, Daimler Truck Financial, moovel and car2go. It distributes a total of over 100 individual vehicle models in the product categories cars, vans, trucks and buses in around 200 countries around the world, and automotive financial services in more than 40 countries in its product portfolio.Mercedes-Benz CarsMercedes-Benz Cars sells passenger cars and off-road vehicles under the Mercedes-Benz brand and small cars under the smart brand. The products supplied by the Mercedes Benz Cars segment comprise a spectrum of vehicles of the Mercedes Benz brand and its Mercedes-AMG and Mercedes-Maybach sub-brands. These vehicles range from the compact models of the A Class and B Class to various sport utility vehicles, roadsters, coupes and convertibles, and S Class luxury sedans. Additional products are the small cars of the smart brand. The segment's primary manufacturing location is Germany, and the segment also has production facilities in the United States, China, France, Hungary, Romania, South Africa, India, Vietnam and Indonesia. The smart brand offers two models, such as fortwo and forfour models.Daimler TrucksThe Company is a manufacturer of trucks above 6 metric tons gross vehicle weight. Daimler Trucks develops and produces vehicles in a global network. Daimler Trucks distributes its trucks under the brand names Mercedes-Benz, Freightliner, FUSO, Western Star, Thomas Built Buses and BharatBenz.Mercedes-Benz Vans

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The vans of the Mercedes-Benz Vans segment are primarily sold under the brand name Mercedes-Benz and also under the Freightliner brand. The product offering of the Mercedes-Benz Vans segment comprises the Citan urban delivery vehicle, as well as the Sprinter and Vito in the medium-duty and heavy-duty van segment. It also includes the V-Class MPV in the private segment. The Company sold Mercedes Benz Vans 294,600 vehicles around the world in the fiscal year ended December 31, 2014 (fiscal 2014).Daimler BusesDaimler Buses is a bus manufacturer in its core markets of Western Europe and Latin America. Daimler Buses sold 33,200 buses and chassis of the Mercedes Benz and Setra brands around the world fiscal 2014. The Daimler Buses division offers its brands, such as Mercedes Benz and Setra. Its product range comprises city and intercity buses, coaches and bus chassis.Daimler Financial ServicesDaimler's financing and leasing activities are primarily focused on supporting the sales of the Group's automotive products. Daimler Financial Services segment's product portfolio mainly comprises tailored financing and leasing packages for customers and dealers. The segment also provides services, such as insurance, fleet management, investment products and credit cards, as well as various mobility services.The Company competes with BMW, Ford, Fuji Heavy, Honda, Hyundai, Isuzu, Mazda, Nissan, Paccar, Toyota, Volvo and Volkswagen

Competitors

The Company competes with –

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BMW Ford Fuji Heavy Honda Hyundai Isuzu Mazda Nissan Paccar Toyota Volvo Volkswagen

Subsidiaries and alliances

As part of the Daimler AG company, the Mercedes-Benz Cars division includes Mercedes-Benz and Smart car production.

Mercedes-AMG

Mercedes-AMG became a majority owned division of Mercedes-Benz in 1999. The company was integrated into DaimlerChrysler in 1999, and became Mercedes-Benz AMG beginning on 1 January 1999.

McLaren Group

Motorsport

McLaren Mercedes logo

Mercedes-AMG was the official engine supplier for the second oldest and most successful F1 team by Grand Prix wins, McLaren Racing from 1995-2014. In 2013 it was announced that after the last year with Mercedes

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contract with McLaren, Mercedes would be dropped and be replaced by Honda, with whom McLaren had world championship wins in the past together.

Road Car Manufacturing

From 2003 to 2009, Mercedes were in a joint venture with McLaren Group to manufacture the Mercedes-Benz SLR McLaren. At this time, Mercedes owned 40% of McLaren Group. Due to Mercedes purchasing Brawn GP, a F1 team, Mercedes decided to sell their shares back to Ron Dennis, as McLaren would be their rival in the F1 championship.

Maybach

Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars division until 2013, when the production stopped due to poor sales volumes. It now exists under the Mercedes-Maybach name, with the models being ultra-luxury versions of Mercedes cars, such as the 2016 Mercedes-Maybach S600.

Car nomenclature

Until 1994, Mercedes-Benz used an alphanumeric system for categorizing their vehicles, consisting of a number sequence approximately equal to the engine's displacement in liters multiplied by 100, followed by an arrangement of alphabetical suffixes indicating body style and engine type.

"C" indicates a coupe or cabriolet body style (for example, the CL and CLK models, although the C-Class is an exception, as it is also offered as a sedan).

"D" indicates the vehicle is equipped with a diesel engine. "E" (for "Einspritzung") indicates the vehicle's engine is equipped with

petrol fuel injection. In most cases (the 600 limousine and Mercedes E-Class being the exceptions), if neither “E” nor "D" is present, the vehicle has a petrol engine with a carburetor.

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"G" was originally used for the Geländewagen off-road vehicle, but is now applied to Mercedes SUVs in general (for example, the GLA and GLK).

"K" was used in the 1930s, indicating a supercharger ("Kompressor") equipped engine. One exception is the SSK, where K indicates "Kurz" (short-wheelbase).

"L" indicates "Leicht" (lightweight) for sporting models and "Lang" (long-wheelbase) for sedan models.

"R" indicates "Rennen" (racing), used for racing cars (for example, the 300SLR).

"S" Sonderklasse "Special class" for flagship models, including the S-Class, and the SL-Class, SLR McLaren and SLS sports cars.

"T" indicates "Touring" and an estate (or station wagon) body style.

Some models in the 1950s also had lower-case letters (b, c, and d) to indicate specific trim levels. For other models, the numeric part of the designation does not match the engine displacement. This was done to show the model's position in the model range independent of displacement or in the price matrix. For these vehicles, the actual displacement in liters is suffixed to the model designation. An exception was the 190-class with the numeric designation of "190" as to denote its entry level in the model along with the displacement label on the right side of the boot (190E 2.3 for 2.3-litre 4-cylinder petrol motor, 190D 2.5 for 2.5-litre 5-cylinder diesel motor, and so forth). Some older models (such as the SS and SSK) did not have a number as part of the designation at all.

For the 1994 model year, Mercedes-Benz revised the naming system. Models were divided into "classes" denoted by an arrangement of up to three letters (see "Current model range" above), followed by a three-digit (or two-digit for AMG models, with the number approximately equal to the displacement in litres multiplied by 10) number related to the engine displacement as before. Variants of the same model such as an estate version or a vehicle with a diesel engine are no longer given a separate letter. The SLR, SLS and GT supercars do not carry a numerical designation.

Today, many numerical designations no longer reflect the engine's actual displacement but more of the relative performance and marketing position. Despite its engine displacement in two litres, the power plant in the A45 AMG produces 355 brake horsepower so the designation is higher as to

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indicate the greater performance. Another example is the E250 CGI having greater performance than the E200 CGI due to the different engine tuning even though both have 1.8-litre engines. From the marketing perspective, E200 seems more "upscale" than E180. Recent AMG models use the "63" designation (in honor of the 1960s 6.3-litre M100 engine) despite being equipped with either a 6.2-litre (M156) or 5.5-litre (M157) engine.

Some models carry further designations indicating special features:

"4MATIC" indicates the vehicle is equipped with all-wheel-drive. "Blue TEC" indicates a diesel engine with selective catalytic reduction

exhaust after treatment. "Blue EFFICIENCY" indicates special fuel economy features (direct

injection, start-stop system, aerodynamic modifications, etc.) "CGI" (Charged Gasoline Injection) indicates direct gasoline injection. "CDI" (Common-rail Direct Injection) indicates a common-rail diesel

engine. "Hybrid" indicates a petrol- or diesel-electric hybrid. "NGT" indicates a natural gas-fueled engine. "Kompressor" indicates a supercharged engine. "Turbo" indicates a turbocharged engine, only used on A-, B-,E- and

GLK-Class models. "AMG Line" indicates the interior or engine, depending which car, has

been fitted with the luxuries of their AMG sports cars

Model designation badges can be deleted at the request of the customer.

Chapter 3

International Marketing

Mercedes-Benz is a brand that is well recognized around the world and it was rated among the top ten most recognizable brands in the world by "Business Week Magazine"

Mercedes-Benz was purely into domestic production and exporting out for sales until the early 1990s when it started international production and now for the last decade it has successfully established it self in a lot of international production due to the increase in demand and in the attempt to reduce cost and that has improved the sales of Mercedes-Benz with

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1,279,100 units of Mercedes-Benz passenger cars up to 9% worldwide with China increasing by +35%, Brazil +41%, USA +14%, Russia +47%, Japan +4%, South, Korea +27%, India +28%, Germany -1%, Taiwan +34 %, Western Europe(without G.) -1%, Canada +3% in their major markets.

Marketing Mix

For any successful marketing a company has to have a good mix of its marketing strategy known as the 4P's which includes

The right Product

Selling it at the right Price

Targeting the right Place

Making the best and effective Promotion

For all the marketing mix listed above to work well you have to meet up with the following conditions

You have to make all the right features available on your product.

Price must be worth the good they are paying for

Availability of the product when and where it's needed it's important to make it easy to reach at a low cost.

Awareness is a key factor of marketing, letting the public know about your product and its feature is very important, That way they might be convinced into giving the product a chance.

Product

When you hear the word "Product" what comes to mind are the packages that makes it a product like the physical, service and symbol of that particular thing you want. With these we can say a product strategy includes the design, trademarks, guarantees, warrantees, product image and brand name and all this helps prove superiority over competitor rivals, Mercedes-Benz is known for its innovation, advanced technology and constant research to keep its product as number one for what its known for,

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which are its Luxury, Safety and powerful engine, Already known for its class Mercedes has introduced "Blue Efficiency" to cut down the emissions of CO2 and to keep up with its rival company that has a low consumption of fuel or diesel at the same time giving its customers an efficient Mobility.

Mercedes has a high resale value and it's the first automobile manufacturer to introduce the Automatic Breaking System (ABS), Airbag and pre-tensioning devices on its vehicles. All these are what make its product brand unique from the rest. Mercedes-Benz are known for its durability to last very long and still drive very well, Which is a good attribute in the auto world.

Price

This is the amount a customer is willing to pay for a product because it's worth it. Every customer wants to make sure whatever product they are getting is worth what they are paying for it. That's why Mercedes has taken its time to make its product of the finest quality like the use of Alloy steel and Aluminum, which is why Mercedes-Benz is seen as a prestige or class for the rich in the society, this explains why Mercedes have targeted the rich in its business strategy. When pricing a good its good not to over value it to the customer and not undervalue it to avoid loss to the company, That's why a good marketing strategy is needed to keep the balance. Mercedes makes sure its products are worth the value and prices by meeting up with the needs of its customers. Its an expensive product and all its parts are expensive as well which makes it affordable by the rich, which is why its simply known as Class.

Place

The availability of a product is good for customers, not just being available online customers need to feel, touch and even test the product they want to buy before paying for it. Mercedes has provided show rooms for its products in almost all the developing countries, Importation of vehicles use to cost a lot on Mercedes that's why they have decided to make its products available in countries by now manufacturing them in different countries, like what is happening in India right now, this will help reduce cost and taxes. Mercedes has concentrated on its major markets and doing everything to meet up with the demands there and working on getting the middle class and middle aged of the society by providing cars that better

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suit them, Talking about style and luxury mixed together, Providing all the features a young mind will be thrilled about while still maintaining its standard,

Promotion

Is your ability to communicate and convince the customers by giving them reasons to buy your product, Mercedes does not need much here has its name already speaks volumes and is well recognize over the world, Already using the slogan "The Best or nothing" in its adverts gives all the impression you want as a customer, Knowing that the product you buying is the best gives you that extra drive to go for it. This explains why companies spend so much on adverts. Good warranty policy like being able to extend your warranty after the original one expires.

Sponsorship like the deals with Formula 1 race, Polo matches, creating apps for new technology like iPhone and Samsung, Fashion shows and other promotional activities.

Mercedes has made evolution strategy one of its strongest point, These explains why in the past decades Mercedes has expanded its range of vehicles in sizes and shapes with the introduction of the M-Class, A-class and most recently the B-Class and the acceptance of this strategy by its customers has been seen all over the world by the number of sales already made in the market.

Internationalization Process Theory

Porters Diamond Internalization process best describes the theory Mercedes-Benz has undertaken, Porters diamond process characterized the reasons why some industries in some countries are more competitive on global scales than their rivals. It argues that some countries provide some specific home advantages which will prove an edge over its rivals on global scale.

The four determinants of these porters' models are

Factor Conditions

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Demand Conditions

Related and supporting Industries

Firm Strategy, Structure and Rivalry

Factor Conditions

This factors are normally not noticed at the initial process but with time its that factor that gives the competitive edge to a nation. This is because it's the reputation built by companies in a country that grows to be an advantage as time goes on. This includes factors like the workforce which can heighten a company's tolerance on defects and focus on automation other factor conditions include

Workforce Shortage

Availability of raw materials

Highly skilled workforce

This is what has given the niche to Germany when it comes to automobile, and got it the nick name "German Engineering" and Mercedes has gained from this recognition as well as contributed to making the country known for it, Known for its skilled work force, German cars are now synonymous with class, Prestige, Safety and luxury because of the local competition amongst the local companies to be the best in that department which has now given the company the global competitive edge.

Demand Conditions

A demanding market calls for improvement to meet up with customer needs and taste through innovation and quality this will increase the competition among local exporting companies on a global scale. This home pressure makes them strive for more improvement.

The demand for Mercedes-Benz and constant request from customers for improvement has increased the innovative ideas of Mercedes, Leading to the introduction of different shapes of cars and expanding its customer target, By now introducing cars that suit not just the elderly people but also the young and middle class of the society and not shifting from its class and

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all the things its known for, This constant demand has lead to the introduction of B-class, A-class and the ML-class which is its strongest selling point now. Mercedes looks at the market where its most needed and concentrate on doing everything to make the supplies meet with the demand, With its biggest market now in India and China Mercedes has moved into local production just so they can meet with the demand and save cost, Introducing coaches and mini cars into china all in other to satisfy the demand for the use of Mercedes. This strategy has worked very well for Mercedes which is why its profits increases with every year that pass with 2011 being its highest profit of all time and already surpassing that record with the quarter of the year sales of 2012. This proves that the demand for Mercedes and its strategic plans to meet with it has been working very well.

Related Supporting industries

When all local companies are competitive strong and creative, they tend to learn from their respective ideas, This is why some countries are known to be the best in a particular product than the other countries, because the share knowledge and experience revolves round them to give them that national symbol for that particular goods.

Mercedes, Volkswagen, BMW and Porsche are all synonymous with good engineering work, Innovation, technology and expensive to own because of its fine and quality finishing. Their competitive battle makes them strive for more and always trying to go one better than the other, so whatever technology that is introduced by one the others try to give a better technology.

Effect of Country of Origin on Mercedes-Benz

The effect of country of origin on a product or brand can either be positive or negative in the mind of the customers and how the products are rated generally. Germany one of the greatest country in the world and a world power in terms of economy and politically, A member of the G8. Its economy is among the 5 largest in the world, Germany is the world number one exporter of goods and third exporter of services, not withstanding that it only represents 1.5% of the world population. Fourth largest producer of automobiles. (GERMANY AND GLOBALIZATION)

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Germany is generally known for its engineering, which is niche. "Made in Germany" is a worldwide symbol for reliability, quality and innovative engineering. The effect and assumption of consumers on products based on their country of origin has been an increasing stereotyping and has called more concentration from the managers on how it affects their sales and now manufacturers are not just interested in where they can find cheap labor anymore but are now worried on the label of where it's made from that it comes with.

In this case Germans are generally known for luxury cars and big engines, with the 4 major automobile company in Germany (Mercedes-Benz, Porsche, BMW, Volkswagen) known for their durability, safety, innovation and luxury this has given them the nick name "German Engineering", Their similarity in engine power and technology feature makes them unique from other cars. This is a positive image that has given them a vital edge over their rivals for their quality finish. Germany is the first country to build a modern car with internal-combustion engine (SECRET HISTORY) also known for its innovation and discoveries made by Germans, The stable political state there has also been good on its automobile industry.

But when you going to the market with the hope to get a car for its luxury, engine ability, safety, Class, technology, performance, well recognized and respected the first thing that comes to mind is the German car. That is the kind of image its tag with now and it's a positive advantage for Mercedes-Benz as its cars are made to target the top class and middle class of the society. German cars are no working on making their cars more efficiency, which explains why Mercedes-Benz has introduced its blue efficiency to help reduce its consumption rate at the same time increasing the engine power.

Mission, Vision & Values

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Passion to ServeThe Dilawri Group of Companies is committed to offering world class products and customer service that builds  lifetime customer relationships.

Uncompromised ExcellenceThe Dilawri Group of Companies strives to deliver complete customer satisfaction in all areas of our business through our passion, continuous innovation and the development and operation of state-of-the-art automotive dealerships.

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Core ValuesThe Dilawri Group of Companies and its employees are guided every day by a set of values that serve as the foundation for how we operate.

Passion for ExcellenceTo be the best, all the time.

Customer FocusedWe ensure every customer is satisfied.

TeamworkWe promote an environment of collaboration and respect.

IntegrityWe are professional, ethical, honest and accountable.

Willingness to GrowWe continuously innovate and improve.

Make a DifferenceWe support the communities we serve.

Chapter 4

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Current Models

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Chapter 5

Conclusion

Mercedes-Benz has been around for over a 100years and it still maintains its niche in all the aspects its been known for right from the start which stands for Luxury, Safety, Comfort and Class in the society like no other brand, Its still the number one choice for the old, middle aged and young that reflects in the sales and constant demand for it in developing countries. Using the marketing mix above we can conclude that Mercedes has taken the right approach in its International marketing strategy mix with the constant increase in sales and a new record sales last year already been surpassed by the first quarter sales this year.

Its Introduction of newer models has been really encouraging with good turn over, Its diversification in buses, trucks and coaches has increased its customer base like in china a lot of the chauffeurs there are Mercedes Benz along with the buses which serve as commercial cars in the developed countries and these products are usually bought in bulk cause they are meant for commercial transportation means which is the target market. Already known for its durability and now adding the blue efficiency to its new cars it will be hard for people to choose other brand ahead of Mercedes. All this factors will sure help increase its presence and demand in the automobile industry.

Its pricing is really high and I think that strategy has paid off for Mercedes as it helps keep the cliché its known for, generally in life the rich loves being unique and outstanding among everyone else by their appearance and having a Mercedes makes that easy. That's the same reason people go to expensive bars to get a class of champagne for a 100usd when they can get that same glass for 10usd somewhere else but they opt for the latter cause of their status and comfort to make people know they are that rich and comfortable, So I will say that's a good strategy in the world today, everyone doing well today either has a Mercedes or is saving to get one just so they can have a better reception when they arrive for an occasion or a business meeting.

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Another aspect of its strategy that Mercedes has worked on is its local production idea, for the past decade Mercedes has moved into producing its products in countries where they have the biggest customer base, this is a very good idea to cut cost of transportation from Germany to other countries and to help reduce taxes and other cost imposed on imported cars, now with local production they will be avoiding all the policy placed on imported cars and will be able to meet up with the demands of the people, Having showrooms makes it easy for people to come and test drive what they want to buy before paying for it, and it attracts more people to your product as they have this internal feeling that they are close to the company and it won't be difficult to fix a problem with the car should there be the need for it.

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