unveils the genius of daimlerchrysler ...ceptions of daimlerchrysler. building on strong primary and...

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Revolutionizing one of the largest and most competitive industries is no small task, yet in November 1998, the creation of DaimlerChrysler shook the automotive world. While this truly global company combines a commitment to quality and superior engineering with cutting- edge style, DaimlerChrysler’s young brand is still largely undefined and currently without a distinct identity. Fountainhead’s Revolutions Per Minute campaign builds on DaimlerChrysler’s revolutionary strengths to deliver a much needed, unique brand personality that ignites the emotions of all its stakeholders. FOUNTAINHEAD dug extensively into the target markets to find their key insights and shared per- ceptions of DaimlerChrysler. Building on strong primary and secondary research in North America, Germany and the United Kingdom, Fountainhead developed a campaign that UNVEILS THE GENIUS OF DAIMLERCHRYSLER. Promotions UNLEASH THE REVOLUTIONARY FORCE of DaimlerChrysler on the globe and DELIGHT THE TARGET MARKETS. Public relations efforts mend the lack of communication that currently exists between DaimlerChrysler and its targets. The creative concept high- lights the everyday, dramatic differences DaimlerChrysler’s inno- vations bring to individuals across the globe. Through the RPM CAMPAIGN, target audiences see the revolutions that result when the DARING VANGUARD OF THE AUTOMOTIVE INDUSTRY unleashes its revolutionary force. The concept breaks through the clutter of corporate talk by speaking personally to the targets. Executions are supported by media choices that use a blend of traditional and tomorrow’s vehicles to get this message in front of the RIGHT PEOPLE AT THE RIGHT TIME. 1

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Page 1: UNVEILS THE GENIUS OF DAIMLERCHRYSLER ...ceptions of DaimlerChrysler. Building on strong primary and secondary research in North America, Germany and the United Kingdom, Fountainhead

Revolutionizing one of the largest and most competitive industries is no smalltask, yet in November 1998, the creation of DaimlerChrysler shook the

automotive world. While this truly global company combines acommitment to quality and superior engineering with cutting-

edge style, DaimlerChrysler’s young brand is still largelyundefined and currently without a distinct identity.

Fountainhead’s Revolutions Per Minute campaign buildson DaimlerChrysler’s revolutionary strengths to deliver

a much needed, unique brand personality thatignites the emotions of all its stakeholders.

FOUNTAINHEAD dug extensively into the targetmarkets to find their key insights and shared per-ceptions of DaimlerChrysler. Building on strongprimary and secondary research in North America,Germany and the United Kingdom, Fountainheaddeveloped a campaign that UNVEILS THE

GENIUS OF DAIMLERCHRYSLER. PromotionsUNLEASH THE REVOLUTIONARY FORCE of

DaimlerChrysler on the globe and DELIGHT THETARGET MARKETS. Public relations efforts mend the

lack of communication that currently exists betweenDaimlerChrysler and its targets. The creative concept high-

lights the everyday, dramatic differences DaimlerChrysler’s inno-vations bring to individuals across the globe. Through the RPM

CAMPAIGN, target audiences see the revolutions that result when theDARING VANGUARD OF THE AUTOMOTIVE INDUSTRY unleashes its revolutionary force. The conceptbreaks through the clutter of corporate talk by speaking personally to the targets. Executions are supported bymedia choices that use a blend of traditional and tomorrow’s vehicles to get this message in front of the RIGHTPEOPLE AT THE RIGHT TIME.

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Page 2: UNVEILS THE GENIUS OF DAIMLERCHRYSLER ...ceptions of DaimlerChrysler. Building on strong primary and secondary research in North America, Germany and the United Kingdom, Fountainhead

RESEARCH

profitability in 2002.

To continue to distinguish itself through innovation,DaimlerChrysler will invest an additional 17.4 billionEuros for research and development between nowand 2003. This investment ensures thatDaimlerChrysler will continue to lead the automotiveindustry in the production of exciting products.

MARKET ASSESSMENTIn addition to competing against other automotive

companies, DaimlerChrysler’s size, resources andmulti-nationalism enable it to compete with leadingglobal brands outside the industry. Thus,Fountainhead’s market assessment includes the globalmarketplace and automotive industry.

THE GLOBAL MARKETPLACEGlobalization has led to company con-solidations. Global commerce enablescompanies to expand into interdepend-

ent global markets, yet challenges them to integratedifferent cultures and to nurture diversity. By 1998, the“urge to merge” crept into company boardroomsacross the globe. Colossal mergers, such as BritishPetroleum/Amoco and AOL/Time Warner, set a newstandard for integration. Consequently, these globalcompanies shed businesses that are not part of theircore activities. This restructuring process is especiallyapparent in the auto industry.

COMPANY ANALYSISDaimlerChrysler is a dynamic, progressive-

thinking company committed to deliveringthe future through innovative technology.Although DaimlerChrysler is a diversifiedcompany with six different business seg-ments, it is first and foremost an automotivecompany. Created by the largest industrialand cross-border merger in history,DaimlerChrysler is the world’s third largestcarmaker in sales and the fifth largest inunits of cars sold. Its distinct global automo-

tive brands include Mercedes-Benz, Chrysler,Jeep, Dodge and smart. In addition,

DaimlerChrysler holds global alliances with MitsubishiMotors Corporation and Hyundai Motor Company.

Recently, DaimlerChrysler has received a deluge ofnegative press coverage due to management turmoil,loss of market share and disappointing results atChrysler. Moreover, CEO Jürgen Schrempp’s disclo-sure that the so-called “merger of equals” was, infact, an acquisition of Chrysler lead to a frenzy of neg-ative headlines. On February 26, 2001,DaimlerChrysler revealed its overall company per-formance outlook for 2001 to 2003 and a turnaroundplan for the Chrysler Group, which predicts a return to

DAIMLERCHRYSLER IS A DYNAMIC, PROGRESSIVE-THINKING COMPANY COMMITTED TO DELIVERINGTHE FUTURE THROUGH INNOVATIVE TECHNOLOGY.

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sures, several global automakers have become activeparticipants in industry consolidations, acquisitionsand minority shareholdings. Five companies now pro-duce 60% of automobiles worldwide: General MotorsCorporation, Ford Motor Company,, DaimlerChrysler,Volkswagon and Toyota.

COMPETITIVE ANALYSISConsumers perceive DaimlerChrysler’s competitors tobe other automotive companies, such as GeneralMotors Corporation, Ford Motor Company andToyota. In the minds of financial investors and ana-lysts, DaimlerChrysler competes with other globalcompanies such as General Electric and Coca-Cola.

DC • RPM

THE AUTOMOTIVE INDUSTRYBased on the cyclical nature of the automotive indus-try, the five-year forecast in North America, Germanyand the United Kingdom appears bleak. After peak-ing in 2000, sales are not expected to rise again until2005. Hence, after an unprecedented five-year boomin sales, carmakers are downshifting. This effect iscompounded by slowing economies across the globe.The North American economy is slowing, whichaffects the German and British economies as well.Additionally, the Japanese economy is still reelingfrom a disastrous downturn in the 1990s.

To battle the downturn and growing competitive pres-

Competitor

General Motors Corporation

Ford Motor Company

Toyota

General Electric

Coca-Cola Enterprises, Inc.

Strengths

• Rated world’s largest corporation by Fortune magazine

• World’s largest producer of automobiles

• Strong financial network• Largest advertiser in the United

States

• Extremely strong brand recognition• Strong financial and marketing net-

work• Produces vehicles in all market seg-

ments• Good investor relations• Great employee relations

• Japan’s largest carmaker• Large business portfolio with finan-

cial services, telecommunications and industrial equipment

• Distribution network and ability to market cars around the world

• Brand associated with quality cars• Strong presence in Asian markets• Excellent management

• Highly respected • Largest company in terms of mar-

ket capitalization• Incredible management• Diverse businesses and products• High growth

• World’s leading manufacturer, mar--keter and distributor of nonalco-holic beverages

• Highly respected• The world’s most recognized and

valued brand• Sold in nearly 200 countries around

the world

Weaknesses

• Diminishing domestic market share• Core brands have weak presence in

Asian markets• Not credited with ability to make great

technological advances• Declining earnings per share and market

share in the last five years

• Weak presence in some segments of European markets

• Integration problems with Mazda• Image compromised from Firestone

disaster

• Not a global entity• Lacks a brand of affordable sporty

sedan cars, which are popular in Europe

• Unsubstantial presence in US mini-car segment

• Large decline in operating earnings for appliance operation

• Uncertainty due to upcoming top management changes

• Challenges stemming from recent acquisition of Honeywell

• Weak presence in British markets • Quick management turnover in the

last three years• Poor crisis management, as exemplified

by contamination scare in Belgium and France

COMPETITIVE ANALYSIS

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As one analyst told Fountainhead, “Numbers aren’tthe endgame, but they are a scorecard to tell you howwell you’re doing.” While financial analysts andinvestors primarily use quantitative data, they also lookat past growth, past performance and managementstrength to determine stock potential.

Fountainhead was surprised to discover that analystsare also influenced by corporate social responsibility,including activities such as community involvement,philanthropy and employee relations. Analysts toldFountainhead that although they have not heard any-thing negative about DaimlerChrysler as a corporatecitizen, they have not heard anything positive either.One analyst stated, “That is definitely something theyshould work on.”

Analysts regard DaimlerChrysler as a leader in inno-vation, engineering and outstanding research anddevelopment. Conversely, research also indicates thatmembers of the financial community are frustratedwith DaimlerChrysler’s lack of direct and timely corpo-rate communication. Insufficient communication is par-ticularly detrimental to the reputation and success ofthe company. As one analyst claimed, “Nothing willever get better until [DaimlerChrysler] improves rela-tions with those they depend on most.”

Although disappointed by DaimlerChrysler’s dismalstock price, key shareholders are standing behind thecompany.. As Hilmar Kopper, representative ofDaimlerChrysler’s largest institutional shareholder, stat-ed, “The stock price hasn’t been what we would have

hoped for, but we are convinced that thecompany is going in the right direction.”Overall, the majority of the financial com-munity approve of DaimlerChrysler’s recentattempts to cut expenses and create a defi-

nite plan with specific financial goals. However, somequestion the company’s ability to do so.

It is important to acknowledge that differences existbetween German and American investors. In general,Germans invest in stocks that have high potential forlong-term gains. These investors perceiveDaimlerChrysler to be a good investment. Accordingto one German investor, “DaimlerChrysler is a verystrong organization that is a 100% sure investment inthe long run.” However, Americans invest in com-panies that are predicted to yield more immediatereturns.

THE DAIMLERCHRYSLER FAMILYThe DaimlerChrysler Family spans many cultures andemployment positions. It includes employees andopinion leaders.

RESEARCH METHODSFountainhead has determined four target audiencegroups: the Financial Community, the DaimlerChryslerFamily (including employees and opinion, communityand union leaders), Consumers and the Media.

To gain an understanding of DaimlerChrysler’s targetmarkets, Fountainhead consulted a variety of sourcesat the local, national and international levels.

• Traveled to Stuttgart, Germany to participate in a Mercedes engine plant tour, speak with IG Union Metall representatives and meet with the local press.

• Conducted 42 in-depth telephone and in-personinterviews, using self and proxy reports with German, British and American respondents. A native German-speaking representative of Fountainhead conducted nine of these 42 inter-views with German financial analysts, journalists and former upper-managerial employees of Daimler-Benz and DaimlerChrysler.

• Tracked North American and German national newspapers and business publications.

• Monitored financial and employee chat rooms and online discussion boards daily.

• Conducted interviews with consumers, dealers and representatives of auto companies at both the Chicago and Detroit auto shows.

• Tracked local newspapers and labor publica-tions in North American cities with DaimlerChrysler plants.

• Interviewed opinion leaders, such as aldermen and mayors, in American plant communities.

INTERVIEW VALENCE EVALUATIONTo determine overall perceptions of DaimlerChrysler,Fountainhead independently coded each interviewresponse three times with a –2 to +2 valence range(with -2 being an extremely negative opinion ofDaimlerChrysler and +2 being extremely positive).Based on these calculations, the sample’s attitudestoward and overall perceptions of DaimlerChrysler was–0.41. Although the sample currently has a slightlynegative opinion of DaimlerChrysler, the interviewsalso indicate that respondents believe in the com-pany’s potential for long-term success.

TARGET MARKET INSIGHTSFINANCIAL COMMUNITYThe financial community includes current and prospec-tive shareholders, analysts, brokers and business lead-ers at financial institutions primarily located in the US,Germany and the UK.

FOUNTAINHEAD TRAVELED TO STUTTGART, GERMANY TO INTERVIEW LOCAL UNION REPS, THEPRESS, AND FORMER EMPLOYEES.

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EmployeesThe employee target market is diverse. It includesGerman, American, Canadian and Mexican employ-ees along with upper and middle management andnon-managerial workers. Substantial differences existbetween Germans and Americans and betweenwhite- and blue-collar employees.

“We are absolutely happy with the development ofthe merger. We have a clear understanding: Onecompany, one vision, one chairman, two cultures.”-Jurgen Hubbert, board member responsible forDaimlerChrysler’s Mercedes-Benz division. TheEconomist, 7/29/00.

“What possessed Mr. Schrempp to bring a superiorworld-class brand (Mercedes) to join up with such avile product like Chrysler?”- CBS Marketwatch online discussion, 11/29/2000.

“There was a bit of a joke going on around the timeof the merger. How do you pronounce DaimlerChrysler in German? The answer: the Chrysleris silent. I guess it’s not a joke anymore.”- Yahoo! Finance online discussion group, 2/22/2001.

“If the media would let Zetsche and the rest of theleadership do their job without all the fear monger-ing, I am sure we will see a very strong Chrysler groupemerge with even better products and a higher mar-ket share.”- Employee Internet discussion board,1/22/2001.

The majority of German blue-collaremployees believe they are working forMercedes-Benz, not DaimlerChrysler. Based on theprofit-sharing program that is part of their overallunion contract, German employees have an intimatestake in the success of Mercedes; this influencesemployee morale and motivation. Although morale ishigh, the majority of workers feel uneasy about thefuture of DaimlerChrysler.

Members of the German Union, IG Metall, believethat American Chrysler managers misled and misin-formed the rest of the company. They make lowlyremarks about their American colleagues becausethey feel Germans “do a better job”. They also worrythat the Mercedes brand image could be damaged asa result of the merger.

The majority of American employees do not consider

themselves a part of DaimlerChrysler. Americanemployees are extremely committed to Chrysler andmost have been there through Chrysler’s tumultuouspast. Now, with substantial job cuts and poor financialperformance at Chrysler, many American employeesfeel confused and betrayed. Based on the departureof several respected individuals in upper manage-ment, employees worry not only about their own jobs,but the future of the company as well. AlthoughAmericans still have faith in Chrysler, morale tends tobe lower than that of the German employees.

However, similarities among employees also exist. Allemployees want DaimlerChrysler to be honest withthem as the company resolves its problems and aredetermined to nurture the company back to health.

Union and Local Community LeadersThis subset includes United Auto Workers and IG

Metall representatives, mayors and aldermen inplant communities.

In general, opinion leaders from unions and com-munities are hopeful the company will be success-

ful. They understand the cyclical nature of the auto-motive industry and are confident DaimlerChrysler willmake the necessary changes to lead the market.However, communication with opinion leaders mustbe improved. Opinion leaders are unsure ofDaimlerChrysler’s long-term goals. One opinionleader stated, “I am confident in DaimlerChrysler butwith a little hesitation. We don’t know their long-termplans.” Another remarked, “Communication is keyand so far we haven’t heard anything. Change isalways uncomfortable and their lack of communica-tion isn’t making it any easier.”

In communities with DaimlerChrysler plants, opinionleaders believe the company has a positive economicand social presence but could improve relationshipsthrough enhanced social responsibility.. CharlesBradley, alderman of Kenosha, WI, remarked that“DaimlerChrysler hasn’t been around long enough togive back to Kenosha. Chrysler always did a good jobof contributing to education, scholarships and com-munity improvements.” As a corporate brand,DaimlerChrysler must promote social responsibility.

CONSUMERSConsumers include prospective buyers and currentowners of DaimlerChrysler products and are primarilylocated in North America, Germany and the UK.

DC • RPM

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5ANALYSTS REGARD DAIMLERCHRYSLER AS ALEADER IN INNOVATION, ENGINEERING AND OUTSTANDING RESEARCH AND DEVELOPMENT.

BOTH GERMAN AND AMERICAN WORKERS WANTDAIMLERCHRYSLER TO BE HONEST WITH THEM ASTHE COMPANY RESOLVES ITS PROBLEMS.

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Consumers focus on individual product brands andgenerally do not perceive a vehicle in relation to thelarger corporation. Consumers do not buy aMercedes, Dodge, Chrysler or smart because it is aDaimlerChrysler automobile. Rather, they are product-oriented and want high-quality cars with innovativeand self-expressive style. As one consumer toldFountainhead, “I love the cutting-edge designs ofChrysler but their quality is questionable.”Consumers perceive Mercedes to be of higherquality than Chrysler. According to one con-sumer, “A Mercedes should have nothing todo with something spit out by Chrysler.” In addition,the recent proliferation of Chrysler incentives has leadto buyer burnout.

When asked about DaimlerChrysler’s image, the con-sumer market’s perception is hazy at best. Consumersbelieve Chrysler delivers excitement, while Mercedesdelivers quality and image. Once prompted thatDaimlerChrysler includes both of these brands, inter-viewees stated that something revolutionary shouldcome from merging these two brands.

THE MEDIAIn addition to inadequate communication with themedia, journalists believe DaimlerChrysler’s biggestproblem is “financial chaos and muddled marketing.”They claim that until these problems are solved, pub-lic relations and advertising can have little, if any,effect.

Members of the media overwhelmingly agree thatDaimlerChrysler must be more accessible, direct andhonest. One interviewee said that getting informationfrom DaimlerChrysler is like “getting blood from astone.” Because the media play a crucial role in relay-ing messages, as well as improving attitudes towardsDaimlerChrysler, the company must improve pressrelations to achieve future goals.

DAIMLERCHRYSLER AND ITS PRODUCTBRANDSResearch of target audiences shows the importance ofkeeping DaimlerChrysler's uniquely different brands,particularly that of Mercedes, separate from oneanother. Although Ford has decided to unite all of itsluxury car brands into single dealerships with separateshowrooms, Fountainhead recommends that Daimler-Chrysler’s individual brands remain more distinct.Product brands will be tied vertically toDaimlerChrysler but not horizontally to one another,except for two key instances. These instances include

auto shows and DaimlerChrysler Web sites.

Based on visits to DaimlerChrysler dealerships, plantsand trade shows, the DaimlerChrysler logo is low invisibility.. Therefore, Fountainhead recommends thatthe DaimlerChrysler logo appears at all dealershipsand in all DaimlerChrysler plants.

The individual brands will stay separate; none of theproducts will bear the DaimlerChrysler logo. In addi-tion, creative executions relate individual brands toDaimlerChrysler rather than to each other.

CONSUMERS BELIEVE THAT SOMETHINGREVOLUTIONARY SHOULD COME FROM THE MERGER OF CHRYSLER AND MERCEDES-BENZ.

‘GETTING INFORMATION FROM DAIMLERCHRYSLERIS LIKE GETTING BLOOD FROM A STONE.’

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DC • RPM

STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS: SWOT ANALYSIS

Strengths• Continuous commitment to research and development• Innovative marketing, design and engineering capabilities• Market-driven innovations in product development and design• Wide product variety• Rich tradition of strong brands• Worldwide growth potential• Large economies of scale

Weaknesses• Lack of communication• Negative media coverage• Poor employee morale• Decreasing shareholder base in the United States (currently 17%)

Opportunities• Potential for expansion into foreign markets• Consumers looking for vehicles with alternative fuel sources due to increasing gasoline prices• Increasing city congestion provides greater market potential for smart car and navigation systems• Consumers will continue to buy innovative cars that tap into their emotions

Threats• Asian car makers continue to gain in market share• Cooling world economy• Decline of the US light vehicle market• Buyouts, investor pull-out• Mergers and acquisitions among other carmakers and global companies

SOURCES

• Businessweek • Crain’s Detroit Business • DaimlerChrysler.com • Der Spiegel • Detroit Free Press •Detroit News • Die Zeit • Der DaimlerChrysler Deal by Holder Appel and Christopher Klein• Economist • fastcompany.com • Financial Times • Financial Times London • Financial TimesDeutschland • ford.com • Fortune • forums.ibsys.com • Frankfurter Altgemeine • ge.com • gm.com• Hamburger Abendblatt • Handelsblatt • Harvard Business Review • Jürgen Schrempp - Die Stundedes Strategen by David Waller • just-auto.com • Los Angeles Times • Management Review •Manager Magazin • News & World Report • New York Times • Newsweek • Plastics News • RDS •Sueddeutsche Zeitung • Taken for a Ride by Bill Vlasic et al • Time • toyota.com • USA Today • US• Wall Street Journal • Ward’s Auto World • Washington Post • yahoo.com

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Image-Vision Gap:

“Conflict between outsiders’ image and management’s strategic vision.”

Some members of the outside world are not aware of the

DaimlerChrysler brand. Many who are aware have only been exposed to

negative information about the company. This creates inconsistency

between the desired vision of the company and its current image.

The orange intersection illustrates the branding message that unifies DaimlerChrysler's vision,

image and culture. This message must be realistic to the audiences and achievable by the company. However, when these three areas are not alligned,

gaps occur.

Image-Culture Gap:

“Misalignment between a

company’s image and

organizational culture leads

to confusion among

customers about what a

company stands for.”

Both the outside world and

employees are confused. The

restructuring plan has led the

public to see potential future

profits, while many

employees are worried about

job security. Customers

await benefits from the fusion

of engineering and design,

while employees are

detached from the

DaimlerChrysler group and

remain loyal to individual

brands.

Vision-Culture Gap:

“When senior management

moves the company in a

strategic direction that

employees don’t

understand or support.”

Senior management wants

DaimlerChrysler to be the

most admired and

profitable automotive

company in the world. Due

to a lack of unification and

adequate communication,

this vision has been difficult

to implement. As a result,

frustrated employees react

with cynicism and

increasing suspicion toward

management.

According to the article “Are the Strategic Stars Aligned for your Corporate Brand?” in the February 2001 issue of Harvard Business Review, many companies have recognized the benefits of creating a single umbrella image tied to all their products. Development of a corporate brand requires aligning three elements: the vision, culture and image of the company. Each is driven by a different group: management, employees and stakeholders.

Image: “The

outside world’s overall impression of

DaimlerChrysler. This includes customers, shareholders, the media and the public

Vision: “Top management’s

aspirations for the company.”

Culture:

“DaimlerChrysler’s values, behaviors and

attitudes or the way employees feel about the company.”

STRATEGYTHE CORPORATE BRANDING TOOL KIT: DAIMLERCHRYSLER’S VISION, IMAGE & CULTURE

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Fountainhead has synthesized its research with theimage-vision-culture gap model to arrive at the fol-lowing positioning statement.

Fountainhead recognizes a shared mindset amongthe targets and has identified those with this commonmindset as the “Seekers”. The Seekers demand thefollowing from DaimlerChrysler:

• DaimlerChrysler must communicate more quickly and effectively..

• DaimlerChrysler must address the inherent feelings of frustration and uncertainty in relation to the company..

• DaimlerChrysler must address the demand for stability, security and trust..

• DaimlerChrysler must acknowledge the growing impatience for expectations to be met.

They have been waiting. Excited by prospects intro-duced at the time of merger, the Seekers anxiouslylook for DaimlerChrysler to unleash its force. Theybelieve in the company’s potential, but because ofrecent events and insufficient communication, arebeginning to doubt the outcome.

The message strategy has been developed to com-municate DaimlerChrysler’s brand positioning and tounify its image, culture and vision.

MESSAGE STRATEGYDAIMLERCHRYSLER IS UNLEASHING ITSREVOLUTIONARY FORCE UPON THEAUTOMOTIVE WORLD.

WHAT IS THE KEYWORD?Unleash

WHY SHOULD THE SEEKERS CARE?Daring leaders ultimately win big. If the Seekers comealong with DaimlerChrysler, they will be part of the tri-umph of the world's most united global company..

WHY SHOULD THE SEEKERS BELIEVE?• The restructuring plan allows everyone to be

optimistic that Chrysler will be profitable again in 2002.

• The bad news is already out in the public. The problems from the past 12 months are already priced into the stock. The worst is over.

• The restructuring plan and stronger leadership in DaimlerChrysler's management will allow the company to reach its full potential.

• DaimlerChrysler has the essential qualities of all successful leaders: vision, passion and self-confi-dence, as well as a rich history of market leader-ship, bold thinking and innovation.

• DaimlerChrysler leads in research and develop-ment with more than 100 product awards for its outstanding innovation.

• DaimlerChrysler pulls together the three most important automotive cultures in the world—the US, Germany, and Japan—into one organization with global resources and local market insights.

WHAT DO WE WANT THE SEEKERS TO DO?• Believe and trust DaimlerChrysler.• Join the vanguard of the automotive industry.• Become part of a company that unites the power

of the world's three dominating automotive cul-tures.

HOW SHOULD THE SEEKERS FEEL?• Excited, passionate, motivated and inspired to

embark on a successful journey.

DC • RPM

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POSITIONING STATEMENTDAIMLERCHRYSLER IS THE DARINGVANGUARD OF THE AUTOMOTIVEINDUSTRY.

TARGET MARKETS: THE SEEKERSALL ARE IMPATIENTLY WAITING FORDAIMLERCHRYSLER TO FULFILL ITSPOTENTIAL.

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DaimlerChrysler’s target markets areanxious. Frustrated with sporadiccommunication, an image-less cor-

poration and no solid evidence of innovation.DaimlerChrysler must establish a reliable relationshipwith these anxious Seekers.

Creative executions must establish trust betweenDaimlerChrysler and its target markets. Despite theirfrustrations, the Seekers believe big things can comefrom DaimlerChrysler. It’s going to take more than atwo-door sports coupe sliding across the desert orflashing pictures of multi-cultural employees to con-vince our target that DaimlerChrysler on track.

Corporations can use all their innovations and fasci-nating insights to dazzle an audience but what doesthis matter if advances do not affect individual lives?Fountainhead’s RPM campaign revs the emotions andaddresses target markets’ concerns. Creative execu-tions get at the heart of DaimlerChrysler, where thetrue revolution unfolds.

REVOLUTIONS PER MINUTEAlthough this terminology usually applies to engines,Fountainhead expands it to encompass the presentand future of DaimlerChrysler. With this tagline,Fountainhead shows how a DaimlerChrysler revolu-tion affects the personal lives of the Seekers in almostevery moment of every day. These personal revolu-tions happen in the context of a greater revolution.

The RPM campaign gives the target markets exam-ples they can relate to and trust. By boiling the revo-lution down to the very core of the personal interac-tion with DaimlerChrysler, the RPM campaign estab-lishes a connection that DaimlerChrysler has been

lacking with its target markets since themerger.

The RPM campaign’s advertisements fur-ther grab the target market by beingrefreshingly different from competitors’corporate and automotive advertisements.

The RPM campaign shows that, despite its power andcapacity, DaimlerChrysler still understands the needsof a single individual.

OBJECTIVES• Show how DaimlerChrysler is unleashing its revo-

lutionary force upon the automotive world.• Establish trust between DaimlerChrysler and the

CREATIVE

IT’S GOING TO TAKE MORE THAN A TWO-DOORSPORTS COUPE SLIDING ACROSS THE DESERT ORFLASHING PICTURES OF MULTI-CULTURAL EMPLOYEES TO CONVINCE OUR TARGET THAT DAIM-LERCHRYSLER IS ON TRACK.

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In addition, the tagline does not require translation.The majority of Germans are familiar with the Englishlanguage and the German translation, “RevolutionPro Minute” is extremely close to the English version.

Fountainhead believes that DaimlerChrysler, throughthe immense scale of the campaign, can truly own the“Revolutions per Minute” concept.

COPY TONErealistic, fresh, blunt, down-to-earth, straight-forward,clear, conversational

ART DIRECTIONshow movement and energy; appeal to the everyday,familiar, raw

MUSICTrue to the DaimlerChrysler Revolution, Fountainheaduses raw, energetic music from the British Invasion inall commercial executions. The targets, when hearingthe music, expect unusual camera angles and quickcuts. Instead, they receive evenly paced cuts in famil-iar settings. By using events that are normally mun-dane set to powerful music, the RPM campaign showshow DaimlerChrysler’s force extends into the targets’daily lives. Although not obvious in the beginning,the targets soon realize that everyday their life isaffected by a DaimlerChrysler revolution.

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DC • RPM

REVOLUTIONS PER MINUTEDAIMLERCHRYSLER

The RPM campaign embodies the stability of DaimlerChrysler while reflecting its excitement and innovation.

The energy swirl captures the unleashed force of DaimlerChrysler.

By using an RPM dial as the central graphic feature, the logo reinforces the campaign theme.

Seekers.• Close the existing culture-image gap by showing

DaimlerChrysler’s core emotions.• Close the existing vision-image gap by illustrating

the aspirations and accomplishments of DaimlerChrysler to the outside world.

• Break through the clutter of corporate and auto-motive advertising.

STRATEGIES• Show extremely specific and localized effects of

DaimlerChrysler’s work in the target markets’ lives.• Keep copy and art direction very “real” and un-

corporate.• Illustrate that revolutions happen everyday with

DaimlerChrysler.

MANDATORIES• DaimlerChrysler logo.• Revolutions Per Minute tagline and logo.

TAGLINE“Revolutions Per Minute” works on multiple levels.

• Relevant• Car Related• Global• DaimlerChrysler pays it off with their products • Memorable

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DON'T HOLD YOUR BREATH

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Instead breathe, just breathe. Because DaimlerChrysler put fuel-cell technology in Berlin's city buses. This emissions-free alternative does away with the gas-spewing buses of the past.

Some think it's revolutionary that a company has stopped talking about environmental advances and actually implemented them. But DaimlerChrysler's not impressed until a Berliner can stand next to a bus... and not choke on the fumes.

It's happening at a bus stop.It's happening all around you.

REVOLUTIONS PER MINUTEDAIMLERCHRYSLER

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Every automaker talks about fuel-cell technology. Running on conventional gasoline, fuel-cell cars zip along using half the gas. Revolutionary? Yes.

But while others settled on the two-door, DaimlerChrysler tamed the SUV. Realizing you love a tough SUV and a fat wallet, the Dodge division developed a 50 mpg, fuel-cell Durango. Suddenly, your big, bad SUV isn’t that bad anymore.

It's happening at the gas pump. It's happening all around you.

SUV’S THAT GO THROUGH EVERYTHING BUT GAS

REVOLUTIONS PER MINUTEDAIMLERCHRYSLER

Every automaker talks aboutfuel-cell technology.Running on conventionalgasoline, fuel-cell cars zipalong using half the gas.Revolutionary? Yes.

But while others settled onthe two-door,DaimlerChrysler tamed theSUV. Realizing you love atough SUV and a fat wallet,the Dodge division devel-oped a 50 mpg, fuel-cellDurango. Suddenly, your big,bad SUV isn’t that bad any-more.

It's happening at the gaspump. It's happening all aroundyou.

A phone rings in Detroit. The caller is from Berlin. Within 15 minutes, two major automotive brands have joined forces to buy parts. Next year, both will save big on their sedan model production.

For most companies, international cooperation brings chest-thumping talk of “revolution”. But at DaimlerChrysler, a phone call like this happens every day. It's happening on the phone.It's happening all around you.

REVOLUTIONS PER MINUTEDAIMLERCHRYSLER

THE $400,000 PHONE CALL

A phone rings in Detroit.The caller is from Berlin.Within 15 minutes, twomajor automotive brandshave joined forces to buyparts. Next year, both willsave big on their sedanmodel production.

For most companies, inter-national cooperation bringschest-thumping talk of “rev-olution”. But atDaimlerChrysler, a phone calllike this happens every day.

It's happening on the phone.It's happening all aroundyou.

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DaimlerChrysler's newest brakes revolutionize every vehicle out there. They can be used in cars, airplanes, trains… anything that moves you from point A to B.

But everyone makes brakes, right? Not like these. DaimlerChrysler's heat and rust resistant brakes last virtually forever. Put them in your car and you’ll never sit in a brake repair shop again.

It's happening with your brakes.It's happening all around you.

PEOPLE USUALLY SIT DOWN FOR NEWS THIS BIG

REVOLUTIONS PER MINUTEDAIMLERCHRYSLER

DaimlerChrysler's newestbrakes revolutionize every

vehicle out there. They canbe used in cars, airplanes,

trains… anything that movesyou from point A to B.

But everyone makes brakes,right? Not like these.

DaimlerChrysler's heat andrust resistant brakes last vir-

tually forever. Put them inyour car and you’ll never sit

in a brake repair shop again.

It's happening with yourbrakes.

It's happening all aroundyou.

DaimlerChrysler’s big, realbig. 329,000 workers big.

67 plants big.Revolutionizing the auto

industry big.

But it’s the little things thatmatter - like placing interac-

tive kiosks in every plant.Through these kiosks, work-

ers have a direct line ofcommunication with their

managers. So atDaimlerChrysler, one minuteof one employee's day can

shape one big company.

It's happening at the factory.It's happening all around

you.

DaimlerChrysler’s big, real big. 329,000 workers big. 67 plants big. Revolutionizing the auto industry big.

But it’s the little things that matter - like placing interactive kiosks in every plant. Through these kiosks, workers have a direct line of communication with their managers. So at DaimlerChrysler, one minute of one employee's day can shape one big company.

It's happening at the factory.It's happening all around you.

ENORMOUSLY SMALL

REVOLUTIONS PER MINUTEDAIMLERCHRYSLER

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REV

OLU

TIO

NS

PER

MIN

UTE

DAIMLERCHRYSLER

ATME

DAIMLERCHRYSLER

REVOLUTIONS PER MINUTE

IT'S HAPPENING ALL AROUND YOU.

DAIMLERCHRYSLER

REVOLUTIONS PER MINUTE

IT'S HAPPENING ALL AROUND YOU.

DAIMLERCHRYSLER

IT'S HAPPENING ALL AROUND YOU.

The RPM campaigntransfers easily to alter-native media vehicles.Shown here is a buildingin Berlin with the“Breath” (“Atme”) exe-cution. The RPM cam-paign also works on buswraps, the travelingAirbus A380 promotionalplane, as well as airportadvertisements through-out the United Statesand Europe.

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:00Est Shot: Environmental sounds-ex door opening, muffled street sounds, mechanical work etc...

:04Background noise out. Music in: song by The Kinks.Copy runs in bar: DaimlerChrysler invented revolutionary brakes for your car.

:09Music continuesTalent tries to turn sticky magazine pages.Copy: Our heat and rust resistant brakes last virtually forever.

:13Music continuesClose-up of table: dirty magazines, ashtray, crumpled newspaperCopy: Yes, we said forever.

:17Music continuesClose-up of floor: dirty, sticky.Copy: So you'll never sit in a brake shop waiting room again.

:21Music continuesCopy: It's happening with your brakes.

:28Music continuesRPM tag and DaimlerChrysler logo fade in.

:26Music continuesCopy: It's happening all around you.

DaimlerChrysler invented revolutionary brakes for your car.

Yes, we said forever.

Our heat and rust resistant brakes last virtually forever.

So you'll never sit in a brake shop waiting room again.

It's happening with your brakes.

It's happening all around you.

REVOLUTIONS PER MINUTEDAIMLERCHRYSLER

DC • RPM

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Fountainhead clearly understands theimportance of bridging the gap amongtarget audiences and focuses on themindset that holds them together.

Realizing that the Seekers desire increasedcommunication, the RPM campaign employs tra-

ditional and revolutionary public relations techniquesto give the Seekers information that makes them feelconnected. DaimlerChrysler also recognizes the sig-nificance of enhancing its global identity. Designed tonurture DaimlerChrysler’s global involvement, promo-tions celebrate cultural diversity, teamwork and dedi-cation to the global community.

Just like a car needs all its parts to run,DaimlerChrysler must bring together all its divisionsto convey its strength as a unified company. The re-designed elements of the DaimlerChrysler auto showfocus on uniting brand divisions to create a strongcorporate identity, while maintaining enough brandseparation to support individual brand integrity. Byshowcasing DaimlerChrysler’s efforts in research anddevelopment, attendees experience the revolutionDaimlerChrysler is unleashing.

OBJECTIVES• Foster a more personal relationship with target

audiences.• Increase two-way communication between

DaimlerChrysler and target audiences.• Position DaimlerChrysler as the vanguard of the

automotive industry.• Increase awareness of DaimlerChrysler as a truly

global company.

FINANCIAL COMMUNITYFountainhead’s promotions and public relations focuson DaimlerChrysler shareholders as well as financialanalysts, brokerage houses, bankers and financial

opinion leaders. Tactics focus on openinglines of communication with all members ofthe financial community, with emphasis ondeveloping personal relationships with coremembers. Core members include the topcombined 1000 most influential members

within brokerage houses, banks and those that hold ahigh percentage of DaimlerChrysler stock.

Strategies• Provide thorough, timely information about

DaimlerChrysler and its stock.• Establish and use personal communication to

emphasize DaimlerChrysler’s commitment to financial community.

• Recognize DaimlerChrysler’s R&D and future products to highlight the company’s emphasis on

DESIGNED TO NURTURE DAIMLERCHRYSLER’SGLOBAL INVOLVEMENT, PROMOTIONS CELEBRATE CULTURAL DIVERSITY, TEAMWORK AND DEDICATION TO THE GLOBAL COMMUNITY.

PROMOTIONS & PUBLIC RELATIONS

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long-term profitability..• Emphasize DaimlerChrysler’s global presence.

Vanguards of the Revolution GalaTo foster relationships between core financialinvestors and upper DaimlerChrysler management,DaimlerChrysler invites members of the financial com-munity from New York, London and Frankfurt to anexclusive preview of DaimlerChrysler’s 2003 productsand concept cars at a black tie dinner. TopDaimlerChrysler executives discuss the state of thecompany and what financial investors can expectfrom the company in the future.

Virtual Auto ShowTo highlight new and innovative products,DaimlerChrysler delivers a virtual auto show to thefinancial target. Formatted on a business card CD,the auto show features detailed 360 degree imagesand descriptions of new models and concept cars for2003. To encourage a personal relationship with thefinancial community, each CD card contains a specificDaimlerChrysler contact.

British Airways Promotional Pack InsertDaimlerChrysler teams up with BritishAirways to target international businesstravelers. In British Airways’ first/businessclass travel care packages,DaimlerChrysler contributes an interactiveCD. The CD contains DaimlerChrysler employee-rec-ommended hotels, restaurants, bars and points ofinterest in select international cities, as well as aninteractive racing game featuring DaimlerChryslerproducts. This informative and entertaining pack sup-ports the international traveler’s lifestyle.

Benchmarks of a RevolutionDaimlerChrysler’s restructuring plan is integral torebuilding confidence in the company after the recentdownturn. To assure the core financial community ofits commitment to these bold measures, every timeDaimlerChrysler achieves a goal of the plan, theinvestors receive miniature pieces of a Mercedes con-cept car model. As each benchmark is met, a piece isgiven to remind the core investors ofDaimlerChrysler’s promise, while showcasing the rev-olutionary cars that DaimlerChrysler makes.

DCX E-mail updatesFountainhead’s research indicates frustration amonginvestors due to DaimlerChrysler’s lack of consistentcommunication. To address this, DaimlerChrysler cansend investors current information reports via E-mailthat focus on financial and management news.Updates are sent three times per quarter with addi-tional supplements for breaking news.

Financial Chat RoomsThe DCX Web site offers investors across the globethe opportunity to discuss the latest DaimlerChryslernews. The chat room facilitates information exchangebetween DaimlerChrysler and the financial communi-ty. Investors visiting the chat room may pose ques-tions to an on-line DaimlerChrysler decision maker foran immediate answer.

DAIMLERCHRYSLER FAMILYFountainhead realizes different employees requirespecific communications tailored to their needs withinthe company. To address this issue, Fountainheaddivides employees into three categories: upper man-agement, middle management and non-manage-ment employees. Upper management includesimportant decision makers and executives in Stuttgartand Auburn Hills. Middle management includes plantmanagers and supervisors. Our third category, non-management employees, consists of factory workersin DaimlerChrysler plants. Fountainhead also realizesthe importance of reaching out to community leaderssuch as town mayors, councilmen and unions leaders.Communication directed to them is also included incertain communications for middle management.

UPPER MANAGEMENTStrategiesFountainhead found areas where DaimlerChryslerupper management needs improvement in their rela-tionships with financial communities and employees.Fountainhead recommends that DaimlerChrysler:

• Make upper management more accessible to middle management through increased personal communication and interaction to address their questions and concerns.

• Create more opportunities for direct communica-tion with opinion and community leaders in selected markets.

DaimlerChrysler Question-CastUpper management opens communication by usingquestions casted by middle management. Once amonth, middle management has the opportunity topose questions to upper management via E-mail.Selective questions are then addressed in Webcasts.

Restructuring TourDaimlerChrysler executives visit plants that are direct-ly affected by restructuring initiatives. These visits aredesigned to address middle and non-managementconcerns. At this time, personal meetings are sched-uled with key community and opinion leaders in

DC • RPM

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DIFFERENT EMPLOYEES REQUIRE SPECIFIC COMMUNICATIONS TAILORED TO THEIR POSITIONWITHIN THE COMPANY.

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these towns, so they also become a part ofDaimlerChrysler’s actions.

MIDDLE MANAGEMENTStrategies

• Use communication devices that allow middle managers to quickly exchange information.

• Help middle management understand upper management’s decisions.

• Create programs to help middle managers facilitate communication and feedback with their workers.

• Use communication that highlights DaimlerChrysler’s research and develop-ment.

Future of Management Forum: ParagonIn June 2002, DaimlerChrysler invites its top twomanagers from each plant in North America andGermany to the McLaren Paragon in Surrey, UnitedKingdom. The Paragon is a new, state-of-the-art fac-tory that currently develops Formula One racing andsport cars in conjunction with DaimlerChrysler. Theforum provides an opportunity for international man-agers to understand their role in DaimlerChrysler’sglobal structure and to create personal relationships.As a bonus, managers tour a Formula One exhibitfeaturing new products and technology thatDaimlerChrysler helps develop.

360 Degree FeedbackTo innovate communication, DaimlerChrysler imple-ments the 360 Degree Feedback Program, whichincorporates multiple perspectives from all plantemployees. The evaluation addresses employees’concerns regarding individual DaimlerChrysler plantsand the entire company. The results provide middlemanagers insight into how workers perceive theirplants. Upper management can gauge how employ-ees feel and where problems exist.

Congrat-E’sIn the personal spirit of the RPM campaign,DaimlerChrysler supports workers’ personal and pro-fessional lives with Congrat-E’s. This E-mail templateallows plant managers to enter and keep track ofemployees’ personal/production achievements andcareer milestones. With this information, managerssend personalized E-mails congratulating employeeson their accomplishments.

DaimlerChrysler Manager NewsletterThe bi-monthly DaimlerChrysler Manager Newsletteris sent to all plant managers and community leadersacross the globe. The newsletter focuses on issuessuch as employee and union relations, effective com-munication with community leaders, new manage-ment methods and updates on the restructuring plan.

Financial UpdatesResearch indicates employee confusion and uncer-tainty with DaimlerChrysler financial decisions andactions. To address this, DaimlerChrysler plant man-agers receive quarterly packets containing compre-hensive company information to relay to the work-force. Through explanation of DaimlerChrysler’s cor-porate decisions and actions, employees gain a bet-ter understanding of their company and executivedecisions.

NON-MANAGEMENTStrategies

• Encourage and address employee feedback.

• Develop innovative employee programs and communication techniques.

• Create employee aware-ness of DaimlerChrysler’s commitment to the com-munity.

• Improve current employee communication methods.

eDC Plant KiosksTo improve and encourageemployee communication withupper management, plant man-agers and other employees,DaimlerChrysler installs interactivekiosks in all plants. Placed inlounges, the kiosks provideemployees with a variety of options, including:

The

McL

aren

Par

agon

Fac

ility

REVO

LUTI

ONS

PER

MIN

UTE

DAIMLERCHRYSLER

THE FORUM PROVIDES AN OPPORTUNITY FORINTERNATIONAL MANAGERS TO UNDERSTAND THEIRROLE IN DAIMLERCHRYSLER’S GLOBAL STRUC-TURE.

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DC • RPM

• Access to their plant’s productivity in relation to other plants world-wide.

• DaimlerChrysler financial information.• Direct E-mail to all DaimlerChrysler employees,

including top executives.• Access to DaimlerChrysler’s Intranet and the

World Wide Web.• Forms to nominate fellow employees for

outstanding work recognition.• Anonymous suggestion and complaint forms to

be sent to the appropriate department.• Important community news and events.

By providing this in-depth information and two-waycommunication, DaimlerChrysler shows it valuesemployees’ opinions and concerns.

Gestalt Concept Car TourWith the DaimlerChrysler traveling car promotion,employees realize they are part of a greater commu-nity. Pieces of a DaimlerChrysler concept car travel toeach plant around the world. Each plant puts togeth-er a section of the car until the built car is displayedat the auto shows as a symbol of unity throughoutthe company.

Global Plant PartnershipMany DaimlerChrysler employees do not see them-selves as a DaimlerChrysler employee; rather, theydesignate themselves as either a Chrysler or aDaimler-Benz employee. To foster a united workforce, DaimlerChrysler creates a program that match-es international plants according to similar character-istics, such as plant population and products. Thesepartnerships promote global spirit and cooperation,removing the ‘us vs. them’ mentality. The partnershipsinclude activities, such as holiday gift exchangebetween paired families within partnered plants,friendly productivity competition against other part-nered plants and connecting employees’ children andfamilies through E-pals.

Trans-Atlantic Student ExchangeTo further encourage cultural understanding,DaimlerChrysler offers employees’ children an oppor-tunity to participate in an international exchange pro-gram between North America and Germany. Thisprogram is designed specifically for high school stu-dents interested in experiencing and learning aboutanother culture. DaimlerChrysler selects 100 appli-cants to participate in the two-month summerexchange. Following their exchange abroad, the stu-dents are featured on DCTV and in DC Times to

highlight their experience.

DCTV FaceliftAccording to secondary research, many employeesfeel that DCTV lacks pertinent company information.However, Fountainhead recognizes DCTV’s uniqueability to regularly reach employees. Thus, DCTV hasthe potential to be an effective communication tool.Suggestions for revamping DCTV include:

• Provide important company news and informa-tion, both positive and negative.

• Appeal to employees’ lifestyles and interests by providing local and international sports, news andweather.

• Highlight DaimlerChrysler’s involvement in specif-ic DaimlerChrysler plant communities.

• Showcase DaimlerChrysler’s programs and spon-sorships.

• Spotlight exceptional employees.

These recommendations help establish theDaimlerChrysler global community while appealing toemployee interests.

CONSUMERSStrategies

• Create sponsorships targeting important global issues.

• Use promotions to highlight DaimlerChrysler’s research, development and future products.

• Create promotions and sponsorships that positionDaimlerChrysler as the daring vanguard.

• Connect promotions to the Revolutions Per Minute campaign theme.

Countdown to the RevolutionTo arouse the attention and curiosity of consumers,DaimlerChrysler runs a four-day promotion in London,Berlin and New York City. Starting December 28,2001, DaimlerChrysler places a series of RPM teaserads on each city’s large digital screen to raise interestin the campaign. These ads pique peoples’ curiosity

for the RPM campaign and the promotions thatfollow the next day. Teasers also run during thefinal hours prior to midnight on December 31,2001. This excellent opportunity reaches massnumbers of people due to the popularity of

New Year’s festivities in these cities. BeginningJanuary 1 at 1:00 PM, DaimlerChrysler unleashes afleet of Unimogs through different sections of eachcity. On the back of each Unimog are new models ofDaimlerChrysler products. At 5:00 PM, the Unimogsconverge at each city’s main square (Times Square,Leicester Square and Brandenburger Tor) whereDaimlerChrysler then presents the new RPM cam-paign.

THESE PARTNERSHIPS PROMOTE GLOBAL SPIRITAND COOPERATION, REMOVING THE ‘US VS. THEM’MENTALITY.

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DaimlerChrysler Global SummitDaimlerChrysler creates semi-annual global summitsas an international forum to discuss global issues rele-vant to each continent, excluding Antarctica. The firstsummit takes place in Vienna, Austria and discussesright-wing extremism and the rise of Neo-Nazism inEurope. Other topics for forthcoming summits includethe digital divide separating socioeconomic classes inNorth America as well as the debilitating effects ofAIDS on the African continent.

Eco-Challenge SponsorshipIn an effort to highlight culturalcooperation and environmentalawareness, DaimlerChryslersponsors the 9th annual Eco-Challenge, a 300-mile, six to tenday physically-enduring race at alocation to be specified. Theskills necessary to succeed in the

Eco-Challenge-honest communication, compassionand focus-are the same skills DaimlerChrysler needsto succeed.

Peace Corps Vehicle DonationDaimlerChrysler recognizes the need to assist under-developed countries; therefore, a partnership with thePeace Corps to help this international volunteer pro-gram achieve its goals is appropriate. Since the PeaceCorps often lacks sufficient vehicles to trans-port needed supplies to rural and underdevel-oped areas, DaimlerChrysler donates 35 light-weight trucks per year to disperse to countriesin need. This partnership lets DaimlerChryslerreach out to the global community and make apersonal impact at the local level.

NASCAR/Formula One Interactive TentBoth NASCAR and Formula One racing are very pop-ular sports in North America and Europe. To increasethe excitement of the race day experience,DaimlerChrysler creates an interactive multimediatent offering racecar simulators and games at eachmajor racing event. An actual DaimlerChrysler racecaris displayed in the tent with highlights ofDaimlerChrysler’s latest safety innovations developedto protect drivers.

Revolution of Art: Multimedia GalleryDaimlerChrysler extends an invitation to artists, chal-lenging them to provide a glimpse into the futurethrough the use of multimedia art. Early in 2002,DaimlerChrysler invites prominent multimedia artistsand art students from around the world to create mul-timedia works inspired by DaimlerChrysler products.The winners’ submissions begin a world tour of majorinternational art institutions and galleries and areexhibited in DaimlerChrysler plant communities.

Women’s United States Soccer Association (WUSA)SponsorshipIn 2002, DaimlerChrysler sponsors a Detroit team inthe highly anticipated Women’s Professional SoccerLeague. The WUSA is the first league in the world tofeature American and international players. This revo-lutionary sponsorship displays DaimlerChrysler’s com-mitment to encourage international interaction, whilealso supporting its local community.

VfB Stuttgart Fussball (Soccer) SponsorshipIn an effort to further enforce DaimlerChrysler’s identi-ty in the Stuttgart area, the company sponsorsStuttgart’s most beloved soccer team, VfB Stuttgart.

DaimlerChrysler Employee ScholarshipsTo further extend its commitment to academic excel-lence, DaimlerChrysler provides academic grants tostudents who exhibit outstanding talent within theirmajor. Scholarships are given in the following aca-demic areas: engineering, marketing, communica-tions, international relations, environmental studiesand international business fields pertinent to thefuture of the automotive industry. The scholarshipsare named after outstanding DaimlerChrysler employ-ees within these fields. DaimlerChrysler Global Scholars GrantIn order to better prepare students for the future ofglobalization, DaimlerChrysler encourages academic

cultural exchange through study abroad grants.Grants are awarded based on financial need and anessay.

DaimlerChrysler Airbus A380 Travel TourAmid much anticipation, the European AeronauticDefence and Space company, partly owned byDaimlerChrysler, unveils its long-awaited A380 Airbusin 2004. This will be the biggest and most technolog-ically-advanced plane to ever fly the skies. Before theplane is used by commercial airlines, DaimlerChryslergives consumers a sneak preview of the plane at spe-cific air shows throughout North America and Europe.The large plane is wrapped with the DaimlerChryslername and images from the RPM campaign. Thisplane acts as a traveling billboard promotingDaimlerChrysler as an awe-inspiring, revolutionarycompany.

MEDIA

THE SKILLS NECESSARY TO SUCCEED IN THE ECO-CHALLENGE - HONEST COMMUNICATION, COMPASSION AND FOCUS - ARE THE SAME SKILLSDAIMLERCHRYSLER NEEDS TO SUCCEED.

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DC • RPM

Strategies• Create strong ties with key media through inter-

personal communication.• Provide quick access to DaimlerChrysler’s

communication department.• Provide journalists DaimlerChrysler materials to

assist them in developing their story.

Interactive Press KitThe interactive press kit contains the same materialsas a conventional paper press kit but also offers abusiness card CD. The CD features a virtual autoshow and extra press-related materials including anarchive of DaimlerChrysler’s history, profiles on itsleaders, press contacts and Web links.

Building Personal Relationships with PressAccording to research, the American automotive andfinancial press are frustrated with DaimlerChrysler’slack of consistent communication. In response,DaimlerChrysler develops a program that partnersspecific company contacts with selected journalists.Targets are selected based on their publication’sreadership usage among consumers and the financialcommunity.

AUTO SHOWFrom our observations at the Detroit and Chicagoauto shows, DaimlerChrysler lacks a strong connec-tion among its brands. It is important forDaimlerChrysler to convey itself as a strong, unifiedcompany with diverse products. Therefore, as statedin our research, auto shows are one of two instanceswhere the product brands of DaimlerChrysler areunited. We suggest the following tactics for all autoshows:

• Incorporate the look and feel of the RPMcampaign into DaimlerChrysler’s displays.

• Feature all brand concept cars together to highlight DaimlerChrysler as a unified company.

• Keep all DaimlerChrysler brands within the same area of the auto show.

• Provide information about DaimlerChrysler’s international community endeavors.

• Showcase research and development via interactive kiosks.

• Provide attendees pieces of a model found in each DaimlerChrysler brand area. Consumers must travel from brand to brand to build the DaimlerChrysler miniature car model.

• Photograph visitors next to DaimlerChrysler

concept vehicles, then E-mail these visitors their photos along with important DaimlerChrysler product and company informa-tion.

DaimlerChrysler Vertical AscentDesigned to draw attention to the revolutionary auto-mobiles that DaimlerChrysler is creating, the VerticalAscent takes place in fiveselected cities, includingNew York, London andFrankfurt. DaimlerChryslerhangs shells of its conceptcars from a prominentbuilding in each of theselected cities one week

before the autoshow takes placethere. These hang-ing cars draw atten-tion to the new vehi-

cles DaimlerChrysler isdeveloping, while creatinga buzz for its exhibit at autoshows.

DAIMLERCHRYSLER MUST CONNECT ALL ITSBRANDS TO CONVEY ITSELF AS A STRONG, UNIFIEDCOMPANY WITH DIVERSE PRODUCTS.

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2002

Financial

Vanguard of the Revolution Gala

Virtual Auto Show

British Airways Promotion Pack Insert

Benchmark Gifts

DCX E-mail Updates

DCX Chatroom

Middle Management

DC Question Cast

Future of Management Forum: Paragon

360˚ Feedback

Congrats-E's

Newsletter

Financial Updates

Restructuring Tour

Non-Management

Gestalt Concept Car Tour

eDC Plant Kiosks

Global Plant Partnerships

Trans-Atlantic Student Exchange

DCTV Facelift

Consumers

Countdown to the Revolution

Global Summits

Eco-Challenge Sponsorship

Revolution of Art: Multimedia Gallery

NASCAR Tents

Formula One Interactive Tents

VfB Stuttgart Fussball Sponsorship

WUSA Sponsorship

Peace Corps Vehicle Donation

DC Employee Scholarship

DC Study Abroad Global Scholars

Auto Show RPM Promotions

DC Vertical Ascent

Press

Interactive Press Kit

Building Press Relationships

JAN FEB MAR APR JUN AUG OCT DECMAY JUL SEP NOV 2003

2004

Promotions, PR and Auto Show Timeline

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DC • RPM

24

25

2002

Financial

Vanguard of the Revolution Gala

Virtual Auto Show

British Airways Promotional Pack Insert

Benchmarks of a Revolution

DCX E-mail Updates

DCX Chatroom

Middle Management

Future of Management Forum: Paragon

360˚ Feedback

Congrats-E's

Newsletter

Financial Updates

Non-Management

Gestalt Concept Car Tour

eDC Plant Kiosks

Global Plant Partnerships

Trans-Atlantic Student Exchange

DCTV Facelift

Consumers

Countdown to the Revolution

Global Summits

Eco-Challenge Sponsorship

Revolution of Art: Multimedia Gallary

NASCAR Interactive Tent

Formula One Interactive Tent

VfB Stuttgart Fussball Sponsorship

WUSA Sponsorship

Peace Corps Vehicle Donation

DC Employee Scholarship

DC Study Abroad Global Scholar

Auto Show RPM Promotions

DC Vertical Ascent

Press

Interactive Press Kit

Building Press Relationships

TOTAL

Cost [US]

211157

23500

1038999

54000

--

--

98856

140952

90201

24000

--

205000

400000

901875

206000

24000

173140

1206645

2000000

146175

1035000

971000

1000000

1000000

524000

1050000

400000

684000

1110000

70000

--

15000000

Cost [Euros]

22596

25098

1109551

57672

--

--

105598

150537

96335

25632

--

218940

427200

963203

220008

25632

184914

1288697

2136000

156115

1105380

1037028

1068000

1068000

559632

1121400

427200

730512

1185480

74760

--

16020000

Promotions, PR and Auto Show Budget

Page 26: UNVEILS THE GENIUS OF DAIMLERCHRYSLER ...ceptions of DaimlerChrysler. Building on strong primary and secondary research in North America, Germany and the United Kingdom, Fountainhead

MEDIA

reach of 80% and continuous frequency of 5.

GERMANY2002-2004

• Target financial community with an effective reachof 85% and a continuous frequency of 5.

• Target DaimlerChrysler Family with an effective reach of 80% and a continuous frequency of 5.

UNITED KINGDOM2002-2004

• Target financial community with an effective reachof 85% and a continuous frequency of 5.

STRATEGIES• Use media to highlight DaimlerChrysler’s promo-

tional events and opportunities.• Schedule media weight to support the RPM

campaign’s image-oriented executions that help establish brand identity with the Seekers.

• Use traditional media to reinforce DaimlerChrysleras a global brand and communicate DaimlerChrysler’s business strategy with the Seekers.

• Use new media to reinforce DaimlerChrysler as the vanguard of the automotive industry.

REGIONSFountainhead’s media plan is intended for all globalmarkets, beginning in 2002 in North America,Germany and the United Kingdom. In 2003 and 2004,

Fountainhead’s media strategy embodiesthe unique global capabilities ofDaimlerChrysler. As a vanguard of theautomotive industry, DaimlerChrysler mustfocus its media plan on emerging alterna-

tive media to integrate DaimlerChrysler’s tech-nological innovation in terms of production with its

overall brand image. In addition, DaimlerChryslermust use conventional media to build the integrity ofthe newly defined brand. Most importantly, the mediaplan supports and encompasses the lifestyles of thetarget markets.

OBJECTIVESNORTH AMERICA2002

• Target financial community with an effective reachof 85% and a continuous frequency of 5.

• Use a pulsing pattern to reach 85% of the DaimlerChrysler Family in peak months of January, February, April, June, August and October with a frequency of 6.

• Target DaimlerChrysler Family with an effective reach of 80% in the non-peak months of March, May, July, September, November and December with a frequency of 5.

2003 and 2004• Target financial community with an effective reach

of 85% and a continuous frequency of 5.• Target DaimlerChrysler Family with an effective

Page 27: UNVEILS THE GENIUS OF DAIMLERCHRYSLER ...ceptions of DaimlerChrysler. Building on strong primary and secondary research in North America, Germany and the United Kingdom, Fountainhead

DC • RPM

the media plan expands into other global markets inEurope and Asia.

Conversion RatesFountainhead used conversion rates from Sunday,March 4, 2001. The rates are: 1US Dollar=1.068Euros, 1 Euro=.936 US Dollars.

MEDIA PLAN - NORTH AMERICADaimlerChrysler Family and Consumers - 2002Simmons and MRI data indicate that the media habitsfor the DaimlerChrysler Family and consumers arevery similar. Therefore, Fountainhead uses media thatreach both of these audiences simultaneously.

Target Audience: 225,858,892 peopleThe 1999 US Census states that the population ofindividuals between ages 18-69 is 174,830,739. The1999 World Census states the population of Canadafor individuals between ages 18-69 as 20,923,223 andthe Mexico population for that same age range as30,104,930.

TelevisionTelevision provides the high reach that is necessaryfor a global branding campaign. It also brings theRPM creative concept to life. Based on Simmons andMRI data, Fountainhead’s recommended programshave the highest viewership among the targets.

• :30 spots on both cable and prime-time televi-sion.

• 24 units of cable, 10 units of network during non-pulsing months.

• 26 units of cable, 16 units of network during pulsing months.

• Suggested programs: The West Wing, Ed, Law & Order, X-Files, The History Channel, The Food Network, Ally McBeal, The Family Channel, Network Sports (golf, basketball and football), Will & Grace, Friends, CSI, A&E, Golf Channel, ESPN, ESPN2, Fraiser, CNN, The Weather Channel, The Learning Channel, TNT, C-Span.

MagazinesMagazines engage the Seekers with little waste.Based on Simmons and MRI data, Fountainhead’s rec-ommended publications have the highest readershipamong the targets.

• 2-page spreads, 4-color, 30 units per month.• Suggested publications: AutoWeek, Bon Appetit,

BusinessWeek, Car & Driver, Car Craft, Forbes, Golf Digest, Good Housekeeping, Hot Rod, Life, Money, Newsweek, Smithsonian, Sports Illustrated, Sunday Magazine Network, Time.

NewspapersNewspapers offer national coverage, a high passalong rate and an affluent readership base.

• Black and white, half-page ads, 18 units per month.

• Suggested publications: USA Today, USA Weekend, Wall Street Journal.

Newspaper InsertsTo foster deeper relationships with plant communities,Fountainhead recommends inserts in local newspa-pers. These personalized inserts reflectDaimlerChrysler as a global corporation working atthe local level.

• 9,070,317 total inserts per month; 9,000 units per month.

• Targeting the following local communities: Ajax, Auburn Hills, Belvidere, Bramalea, Dayton, Detroit, Evart, Fenton, Huntsville, Indianapolis, Kenosha, Kokomo, Newark, New Castle, Portland, Saltillo, Sterling Heights, Toledo, Toronto, Trenton, Tuscaloosa, Twinsburg and Windsor.

OutdoorDue to the diverse DaimlerChrysler Family/consumermarket, Fountainhead focuses on outdoor media thatspan across this varied population.

• Station DominationBy covering every possible advertising venue at a subway stop, Station Domination reaches much of the population on a daily basis. Trains wrapped in the style of the RPM campaign rein-force the campaign message. Since few other companies have utilized this medium, it re-affirms DaimlerChrysler’s vanguard qualities. This place-ment runs year-round in the top five markets, withthose markets changing monthly depending on geographic sales data.

• Bus Wraps Fountainhead grabs attention in the top five con-sumer markets by wrapping thirty-five buses with RPM advertisements. Due to the mobility of the medium, the message reaches a higher percent-age of the target audiences.

New MediaThe newest craze gripping consumers everywhere isPersonal Digital Assistants (PDAs). To capitalize on thislifestyle phenomenon, DaimlerChrysler places infor-mational kiosks in major metropolitan areas. In addi-tion to providing directions, restaurant recommenda-tions or other useful urban information to any Seeker,a PDA owner can receive information from the kiosksto their handheld device.

• Major metropolitan cities.• 100 street kiosks in North America

Total Dollars Spent in 2002: $13,141,584Total Euros Spent in 2002: E14,035,211

26

27

Page 28: UNVEILS THE GENIUS OF DAIMLERCHRYSLER ...ceptions of DaimlerChrysler. Building on strong primary and secondary research in North America, Germany and the United Kingdom, Fountainhead

*Exact GRPs could not befound for each vehicle. Wehave instead based our suc-cess on the number of grossimpressions we achieve. Wehave generated a total of903,435,568 gross impres-sions during non-pulsingmonths. Converting grossimpressions to GRPs, wedivided our total grossimpressions by our targetaudience (225,858,892) toget 400 GRPs a month.Therefore, we have success-fully reached 80% of theDaimlerChrysler Family at afrequency of 5 per month.During pulsing months, wehave generated a total of1,151,880,350 gross impres-sions. Therefore, we havesuccessfully reached 85% ofthe DaimlerChrysler Family ata frequency of 6 per month.

2003 and 2004 Percent and Budget AllocationsPrint 30% $4,035,000 E4,309380Television 33% $4,387,000 E4,685,316Outdoor 32% $4,258,270 E4,547,832New Media 5% $700,724 E748,373

MEDIA

Magazines

Newspapers

FSI

Cable TV

Network TV

New Media

Outdoor (Totals)

Station Domination

Bus Wraps

Total

TOTAL UNITS

180

108

9000

156

96

100

40

10

30

__

COST/UNIT

7589

9756

6.30/1000

3602

8379

3975

__

14704

7561

__

COST/6 MO [Euros]

1458909

1125296

363334

600122

859082

2547180

2395759

942232

1453527

7017606

GROSS IMPRESSIONS*

86130000

19620720

9070317

349961924

215361184

53776650

304634355

101420307

203314048

1151880350

COST/6 MO [US]

1366020

1053648

340200

561912

804384

2385000

2243220

882240

1360980

6570792

MEDIA

Magazines

Newspapers

FSI

Cable TV

Network TV

New Media

Outdoor (Totals)

Station Domination

Bus Wraps

Total

TOTAL UNITS

180

108

9000

144

60

100

40

10

35

__

COST/UNIT

7589

9756

6.30/1000

3602

8379

3975

__

14704

7561

__

COST/6 MO [Euros]

1458909

1125296

363334

553959

536926

2547180

2638013

942232

1695781

7017606

GROSS IMPRESSIONS*

86130000

19620720

9070317

257851693

172351833

53776650

304634355

101420307

203314048

903435568

COST/6 MO [US]

1366020

1053648

340200

518688

502740

2385000

2470050

882240

1587810

6570792

MEDIA

Cable TV

Network TV

Magazines

Newspapers

New Media

FSI

Outdoor (Totals)

Station Domination

Buses

JAN

26

16

30

18

100

9000

40

10

30

FEB

26

16

30

18

100

9000

40

10

30

MAR

24

10

30

18

100

9000

45

10

35

MAY

24

10

30

18

100

9000

45

10

35

JUL

24

10

30

18

100

9000

45

10

35

SEP

24

10

30

18

100

9000

45

10

35

NOV

24

10

30

18

100

9000

45

10

35

DEC

24

10

30

18

100

9000

45

10

35

APR

26

16

30

18

100

9000

40

10

30

JUN

26

16

30

18

100

9000

40

10

30

AUG

26

16

30

18

100

9000

40

10

30

OCT

26

16

30

18

100

9000

40

10

30

DaimlerChrysler Family - North America - Pulsing

DaimlerChrysler Family - North America - Non-Pulsing

DaimlerChrysler Family - North America - Flow Chart

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28

29

DC • RPM

Financial Community - 2002Target Audience: 27,739,745 peopleAccording to the 2000 DaimlerChrysler AnnualReport, 17% of DaimlerChrysler’s 1.9 million share-holders live in North America. According to the USCensus, 2,917,607 people are employed in the finan-cial community, 5,212,745 people in professionalbusiness, 14,227,916 people in executive businessand 3,097,059 people in communications/journalism.According to the 1999 World Census, 294,000 peoplework in the financial/business community in Mexicoand 1,990,418 people work in the financial/businesscommunity in Canada.

Cable TelevisionCable Television is an excellent medium to reach atargeted financial community. Simmons and MRI datashow that this target market has high viewershipamong the recommended networks.

• :30 spots on cable television, buying 36 units per month.

• Suggested cable networks: CNN, CNBC, MSNBC, Bloomberg, FOX News.

• In Canada and Mexico, allocate 13 of the 36 units.

MagazinesMagazines directly target the financial community.Since most of the recommended publications areNorth American editions, additional units need not beset aside for Canada and Mexico.

• 4-color, 2-page spreads in magazines, buying 24 units per month.

• Suggested publications: Barron’s, Bloomberg Magazine, BusinessWeek, The Economist, Forbes,Fortune, Harvard Business Review, Institutional Advisor, Institutional Investor, Kiplinger’s Personal Finance, New Yorker, On Wall Street, Strategy & Business, US News & World Report.

NewspapersSeekers in the financial community read the majorNorth American business newspapers for financialinformation. Since these are North American editions,no changes need to be made for Canada andMexico.

• Black and white, half-page ads in newspapers, buying 20 units per month.

• Suggested newspapers: Financial Times, Wall Street Journal, USA Today, Wall Street Journal Sunday Paper Network.

Direct MailDirect mailers reinforce the DaimlerChrysler messageby speaking to target markets in their homes andallowing them to contact DaimlerChrysler through a1-800 number and the Web sites.

• 3-piece mailer (one piece per month) to the

financial community.• Mailers sent to one-third of the financial commu-

nity per year over the course of three years. • Mailed out in the months of February, April and

June to coincide with promotional events.

Airport MediaBusiness travelers take more than 450 million domes-tic and international flights per year(www.ellermedia.com). The airport provides an unclut-tered environment to place high impact advertise-ments. Fountainhead takes advantage of a wide vari-ety of airport media, ranging from projection bill-boards and 3-D billboards along moving sidewalks tomultimedia pylons, logo projections and ceiling-sus-pended objects shaped as parallelograms.Additionally, the airport placements also combine theSeekers’ travel lifestyles with their PDA accessories.

• 60 kiosks in airports in North America.• Kiosks placed in major airports provide Internet

access and downloads to meet the demands and expectations of the financial community. Through beaming technology, Seekers can take away information that appeals to them.

• Placed in the top three international airports across the country (New York- La Guardia, Chicago- O’Hare, San Francisco International).

OutdoorStation Domination Just as the RPM campaign inundates consumers atsubway stops, Fountainhead also hits the financialcommunity in the same manner. By using StationDomination at stops in the heart of metropolitanfinancial districts with financial specific messages,DaimlerChrysler uses another revolutionary venue toreach this target.

• Placed in the top five subway stations based on the highest number of business travelers.

• Includes Union Station in Chicago, Port Authority Station in New York City, Montgomery Street Station in San Francisco, as well as stations in Boston and Philadelphia.

• High reach and frequency among targets in a very specialized area.

Bus AdvertisementsThis medium allows DaimlerChrysler to reach thefinancial Seekers as they glance out the window oftheir office or run out to grab a quick lunch. Instead ofnormal bus advertisements, Fountainhead uses illumi-nation king-size ads that light up in the evenings toreinforce DaimlerChrysler’s modern, vanguard image.

• Ads on the tops of one hundred buses in the five major financial markets (Wall Street- New York, Chicago, Washington, Boston, Detroit).

Page 30: UNVEILS THE GENIUS OF DAIMLERCHRYSLER ...ceptions of DaimlerChrysler. Building on strong primary and secondary research in North America, Germany and the United Kingdom, Fountainhead

• Magazines: 4-color, 2-page ads.• Newspapers: Black and white, half-page ads.• Suggested publications:

Daily: Monday-Saturday –Berliner Zeitung, Westdeutsche Allegmeine, Sueddeutsche Zeitung, Frankfurter Allgemeine, Die Welt, Stuttgarter Nachrichten, Stuttgarter Zeitung Weekly: Focus, Bild Am Sonntag.

TelevisionThe television audience in Germany is comprised ofthirty-three million households (The EuromediaHandbook). Since Germany has an 8:00 PM water-shed on public television, Fountainhead places ads

Financial - North America - Flow Chart

MEDIA

Cable Television

Magazines

Newspapers

Direct Mail

New Media

Outdoor (Totals)

Station Domination

Bus Ads

Airport Ads

Totals

TOTAL UNITS

432

288

240

3

60

108

5

100

3

--

COST/UNIT

3602

7589

9756

.50/person

3975

--

14704

1225

45000

--

COST/12 MO [US]

1556064

2185682

2341440

1250000

238500

1986120

441120

735000

810000

9557806

GROSS IMPRESSIONS*

16488000

18859149

30534840

2499999

1935140

87944799

26507608

21089180

40368011

117893916

COST/12 MO [Euros]

1661876

2334308

2500658

1335000

254718

2121176

47116

357780

865080

10207737

MEDIA

Cable TV

Magazines

Newspapers

New Media

Direct Mail

Outdoor (Totals)

Station Domination

Buses

Airport Ads

JAN

36

24

20

60

5

5

FEB

36

24

20

60

1

103

100

3

MAR

36

24

20

60

5

5

APR

36

24

20

60

1

103

100

3

JUN

36

24

20

60

1

103

100

3

AUG

36

24

20

60

103

100

3

OCT

36

24

20

60

103

100

3

DEC

36

24

20

60

103

100

3

MAY

36

24

20

60

5

5

JUL

36

24

20

60

5

5

SEP

36

24

20

60

5

5

NOV

36

24

20

60

5

5

Financial - North America

MEDIA PLAN - GERMANYDaimlerChrysler Family and Consumers - 2002Since there is a large overlap between the consumers,the DaimlerChrysler Family and financial community inGermany, Fountainhead reaches all three targets withspecific media venues that address individual seg-ments.

Print84.3% of the German population read a newspapermore than once a week. In addition, 40% read maga-zines at least once a week. Recognizing the impor-tance of print media in Germany, Fountainhead rec-ommends the following:

* Since this is such a select target, exact GRPs could not be found for each vehicle. Instead, we have based oursuccess on the number of gross impressions we achieve. With the above plan, we have generated a total of117,893,916 gross impressions. Converting gross impressions to GRPs, we divided our total gross impressions byour target audience (27,739,745) to get 425 GRPs a month. Therefore, we have successfully reached 85% of ourfinancial/business community at a frequency of 5 a month.

Total Dollars Spent in 2002: $9,557,806Total Euros Spent in 2002: E162,207,737

2003 and 2004 - Percent and Budget Allocations:Television 30% $3,000,000 E320,400Print 35% $3,500,000 E3,738,000Outdoor 15% $1,500,000 E1,602,000New Media 15% $1,500,000 E1,602,000Direct Mail 5% $500,000 E500,000

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30

31

DC • RPM

before this time and sponsors shows during this time. • :30 spots on both public and cable television.• Suggested programming: Sports broadcasting

(soccer, Formula One Racing, tennis, winter sports); prime-time drama and crime (Wolf’s Revier (SAT1), Balko (RTL), Cobra 11(RTL), Movies(SAT1 and PRO7); Entertainment & Soaps (Explosiv (RTL), Gute Zeiten, Schlechte Zeiten (RTL), Galileo (Pro7), Marienhof (ARD),Verbotene Liebe (ARD).

OutdoorFountainhead uses inventive outdoor media to reachtargets who heavily rely on public transportation.

• Digital Multimedia Broadcasting advertisements are transmitted to television screens on buses and street cars enhancing the bold RPM campaign.

• Grandiose building wraps dominate key metro-politan markets.

• Deutsche Bahn trains, locomotives and streetcars capitalize on the mobility of the medium.

AirportsFountainhead uses airport media such as projectionwalls and dioramas placed in Germany’s busiest air-ports in Frankfurt, Munich, Berlin and Duesseldorf.

2003 and 2004 - Percent and Budget AllocationsTelevision 55% E5,874,000 $5,498,064Print 30% E3,204,000 $2,998,944Outdoor/New15% E602,000 $1,499,472

FINANCIAL COMMUNITYPrint

• Magazines: 4-color, 2-page ads.• Newspapers: Black and white, half-page ads.• Suggested publications:

Daily: Monday-Friday/Saturday – Frankfurter Allgemeine, Sueddeutsche Zeitung, Berliner

MEDIA

Print

Magazines

Newspapers

Television

Outdoor

Train Wraps

Deutsche Bahn

Bus Traffic Boards

Building Wraps

Locomotive Wraps

Street Carts

Subway Advertising

Interior Side Walls

Interior Windows

New Media

Airport Advertising

Projection Billboard

3-D Billboards

Multimedia Pylons

Logo Projections

Suspended Objects

Display Area (For Cars)

Digital Multimedia Ads

Spots (36) Before Noon

Spots (40) After Noon

Total

COST

10222/Month

.50/Day

664.68/Month

42720/Wrap

35790/Year

4.1/Month

5.11/Month

7.16/Month

51129/Year

15339/Year

15339/Year

1065/Month

40930/Year

7669/Month

1104.40/Day

1227.10/Day

UNIT

5

1000

100

5

5

2000

500

780

6

10

15

30

12

1

122

122

COST/YEAR [Euros]

2670000

5340000

306660

182500

398808

213600

178950

98400

30660

67018

153387

153390

230085

95850

245418

30676

134737

149706

10679845

MONTHS/UNIT

6

12

6

12

12

12

12

12

6

12

12

3

6

4

4

4

COST/YEAR [US]

2499120

4998240

170820

373284

199930

167497

92102

98400

28697

62729

143570

143573

215359

89716

229711

28713

126113

140125

9996334

DaimlerChrysler Family and Consumers - Germany

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Zeitung, Handelsblatt, Wall Street Journal Europe,Financial Times Deutschland, Financial Times Europe Weekly: Die Zeit, Wirtschaftswoche, Der Spiegel, Focus MONEY, BusinessWeek Monthly: Kapital, Manager Magazin, BIZZ.

Television• :30 spots on commercial television.• Suggested programming: CNN International,

CNBC, N-TV News, N-24 News, Euronews, before news shows on ARD, ZDF, RTL, SAT1, and PRO7; also sponsor financial shows such as Monitor (ARD), Weltspiegel (ARD), Tagetshemen (ARD).

2003 and 2004 - Percent and Budget AllocationsPrint 55% E 4,111,800 $3,848,645Television 30% E 2,242,800 $2,099,260Outdoor 15% E 1,121,400 $1,049,630

MEDIA PLAN - UNITED KINGDOMFINANCIAL COMMUNITY - 2002In the UK, Fountainhead focuses its efforts onLondon, the main financial center of the country, dueto immense crossover in the selected media and tar-get audiences. Unlike the US and Germany, a largeconsumer market does not exist independent of thefinancial market.

To reinforce the RPM campaign, Fountainhead alsoincorporates new media.

• As in the US and Germany, DaimlerChrysler buys electronic kiosks in the Heathrow and Gatwick air-ports, where anyone can access the Internet and download information to his or her PDA.

• Playbills in the Royal Theatre reach our highly specialized target in a sophisticated atmosphere where the medium helps develop the message.

PrintFountainhead uses a combination of newspapers and

Financial - Germany

MEDIA

Print

Magazines

Newspapers

Direct Mail

Television

Outdoor

Train Wraps

ICE Train

Bus Traffic Boards

Deutsche Bahn Metros

Street Carts

Subway Advertising

Interior Side Walls

New Media

Airport Advertising

Projection Billboards

3-D Billboards

Multimedia Pylons

Logo Projections

Suspended Objects

Digital Multimedia Ads

Spots (36) Before Noon

Spots (40) After Noon

Interactive

E-Kiosks

Total

COST

10222/Month

2.56/Day

664.68/Month

17/Day

4.1/Month

5.11/Month

51129/Year

15339/Year

15339/Year

1065/Month

40930/Year

1104.40/Day

1227.10/Day

4245/Kiosk

UNIT

4

235

50

60

1000

280

6

10

10

30

5

91

91

25

MONTHS/UNIT

6

12

6

6

6

12

6

12

12

3

6

3

3

12

COST/YEAR [Euros]

3738000

1869000

245328

219584

199404

186150

24600

17170

153387

153390

153390

95850

102258

100500

111666

106125

7475802

COST/YEAR [US]

3498768

1749384

229627

205531

186642

174236

23025

16071

143570

143773

143773

89715

95713

94068

104519

99333

6997351

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DC • RPM

print, both global and local, to reach the Seekers.Although research shows higher index numbers forbusiness trade magazines compared to internationalmagazines, Fountainhead places more emphasis oninternational magazines (i.e. The Economist andManagement Today) due to the larger reach andglobal focus of these publications. Fountainhead alsoallocates a portion of the budget toward in-flightmagazines on British Airways to complement the pro-motional pack inserts in the promotions section. 450million business travelers fly foreign and domesticcommercial flights annually (ellermedia.com).Additionally, Plog Research’s On-Trak Poll found that61% of travelers skim the in-flight magazine and 24%of travelers take the magazine with them.

Magazines4-color, 2-page ads.

• Newspapers: Black and white, half-page ads.• Suggested publications: The Economist,

Management Today, Investors Chronicle, In-flight magazines (Virgin Atlantic’s Hot Air), Wall Street Journal Europe, Financial Times Europe, Sunday Business.

TelevisionSince the UK also has an 8:00 PM watershed for tele-vision, RPM spots are placed before key shows.Fountainhead sponsors shows during this time inorder to further reach the financial community.

• Suggested programming: Sky News, Bloomberg, BskyB, ITN, CNBC Europe, CNN,

BBC News 24.

OutdoorTransit advertisements provide a mobile medium toreach the dense London population. 3.7 million work-ers commute on the Tube daily (Transport StatisticsGreat Britain, 1998).

• Station Domination at major Tube stops in North Greenwich (near the Millennium Dome).

• Fountainhead wraps one train for each line of the Underground with RPM advertisements.

• Fountainhead places many bus and taxi ads around Greater London.

• GMI Screen: DaimlerChrysler sponsors the Global Multimedia Interface Screen in London for one week during our “Countdown to the Revolution”promotional event in January 2002. (Each year, fifty million people pass this cutting- edge, four-story digital screen).

• Outdoor clock ads on every corner of London’s streets create high visibility .

2003 and 2004 - Percent and Budget AllocationsPrint 40% E1,872,000 $2,000,000Television 20% E1,068,000 $1,000,000Outdoor 34.1% E1,595,880 $1,705,000New Media 5.9% E315,060 $295,000

MEDIA

Print

Magazines

Newspapers

Direct Mail

Television

Outdoor

Subway Wraps

Station Domination

Buses

Taxi Wraps

Airport Ads

New Media

Playbills

GMI Screen

Outdoor Clocks

Interactive

E-kiosks

Total

COST

10680/Mo

15710/Mo

11748/Year

4713/Year

44055

8169/Qtr Year

7855/Week

18.15/Day

4245/Kiosk

UNITS

5

1

30

74

4

2 Min/Hour

57

20

MONTHS/UNIT

6

6

12

12

4

12

1 Week

6

12

COSTS/YEAR [Euros]

2136000

1068000

320400

94260

352440

348762

704880

32676

7855

188805

84900

5338978

COSTS/YEAR [US]

1999296

999648

299894

88227

329883

326441

659767

30585

7352

176721

79466

4997283

Financial - United Kingdom

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Currently 300 million people use the Web, up from40 million in 1996. One billion users will be online by2005. This impressive growth in recent years has ledto a flood of companies struggling to secure their

place in the minds of Internet users.Through the use of innovative e-business

strategies, Fountainhead attracts Seekers to theDaimlerChrysler Web sites, enhances the con-sumer buying experience, extends investor,

customer and employee relationships with thecompany and strengthens the value of

DaimlerChrysler's products and corporatebrand.

The current DaimlerChrysler Web site is over-whelming, cluttered and lacking a corporatebrand identity. Thus, the Web site contributes directlyto the facelessness of the brand and adds to people’sconfusion about DaimlerChrysler. DaimlerChrysler’s re-designed Web presence establishes a connection tothe brand through the personal voice of the RPMcampaign.

In addition, as stated in research, DaimlerChrysler’sWeb sites are one of the two instances where theproduct brands are tied together under theDaimlerChrysler corporate brand. This shows visitorsthe scope and diversity of DaimlerChrysler’s productportfolio.

OBJECTIVESRe-design DaimlerChrysler's Web site in order to:

• Increase communication between DaimlerChrysler and its target audiences.

• Support DaimlerChrysler's brand positioning as the daring vanguard of the automotive industry.

• Restore and expand faith in the company.• Provide users with a memorable and efficient

tool to help them access product, service and investment information.

STRATEGIESFountainhead develops three separateDaimlerChrysler sites tailored to specific target mar-kets:

• www.daimlerchrysler.com for consumers.• www.dcx.com for investors and the financial com-

munity.• www.dcen.com (DaimlerChrysler Employee

Network) for employees.This design allows DaimlerChrysler to harness theInternet as both a sales and information channel andas a means of boosting consumer, investor andemployee loyalty.

INTERACTIVE

DAIMLERCHRYSLER’S REDESIGNED WEB PRESENCE ESTABLISHES A CONNECTION TO THEBRAND THROUGH THE PERSONAL VOICE OF THERPM CAMPAIGN.

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DC • RPM

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TACTICSALL WEB SITES

• Incorporate DaimlerChrysler's new corporate image, as expressed through the RPM campaign.

• Offer multiple languages, showing thatDaimlerChrysler acts as a global company.

• Set up message boards where DaimlerChrysler executives post company messages..

• Include Webcast conferences and interviews where management addresses concerns within the company and engineers explain new techno-logical advances. Webcasts also support pro-motional activities such as the DaimlerChrysler Global Summits.

• Provide links where Seekers can request specifically tailored E-mail newsletters.

• Highlight DaimlerChrysler’s current and future promotional events.

WWW.DAIMLERCHRYSLER.COM• Links to the company's individual brands on the

homepage of the consumer site.• Provides DaimlerChrysler screensavers that pro-

vide an on-going execution of the RPM cam-paign.

• Allows players to build their own car and race against others or the computer with an interactiveracing game. The game keeps users on the site longer and encourages repeat visits.

• Includes interactive plant tours.• Links to www.dcx.com, DaimlerChrysler’s new

financial Web site. • Showcases a civic action link conveying

DaimlerChrysler’s community efforts.• Supports a monitored DaimlerChrysler chat room

where consumers can voice questions and con-cerns. DaimlerChrysler’s public relations profes-sionals monitor the room and voice the positive future of the company.

• Makes a consumer newsletter available with information on DaimlerChrysler products, servicesand research and development.

E-COMMERCEWWW.DAIMLERCHRYSLER.COM

• Asks consumers for their lifestyles and vehicle preferences and recommends a DaimlerChrysler car to fit the consumers’ needs.

• After entering their zip code, visitors can cus-tomize and order cars from a list of local dealers carrying the model.

• Links to an online store with the capability to order vehicles, auto parts and other accessories from local dealers.

• Incorporates a previously-owned car section to encourage purchasing used cars from dealers online.

• Educates consumers about car loans and service contracts, which can be purchased online.

• Allows consumers to perform background checks on previously-owned DaimlerChrysler vehicles.

• Enables consumers to purchase auto insurance policies online.

• Provides a "Consumer Reports" link for informat-ion on recalls, new parts, discontinued parts and replacement parts.

• Includes tips and allows visitors to buy parts for restoring older DaimlerChrysler vehicles.

WWW.DCX.COM•Provides downloadable DaimlerChrysler

screensavers with executions of the RPM cam-paign.

• Runs continuously updated DCX stock ticker.• Includes a "snapshot" section explaining the

latest news and trends in the auto industry.• Hosts news groups with the financial community.• Displays a financial newsletter with feature arti-

cles about DaimlerChrysler’s current financial situ-ation.

• Connects the financial site to the consumer site.

WWW.DCEN.COM• Secures Intranet access for employees outside of

DaimlerChrysler facilities (i.e. homes).• Hosts a monitored chat room where employees

can voice their questions and concerns to upper management.

• Provides a newsletter facilitating communication from management to employees.

• Connects the employee site to the financial and consumer sites.

DAIMLERCHRYSLER’S WEB SITES PROVIDE ONE OFTHE TWO INSTANCES WHERE THE PRODUCTBRANDS ARE TIED TOGETHER UNDER THE DAIMLERCHRYSLER BRAND.

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News and CommunicationDaimlerChrysler ChatMessage BoardWeb CastsSpecial ReportsE-mail NewsletterCivic ActionNews@DaimlerChrysler

DaimlerChrysler TVDaily News

ArchivesTop Stories

Archives

Company at GlanceHistory

Brand ArchivesBoard of ManagementSupervisory BoardInternational Locations

Interactive Plant Tours

Individual BrandsOur Brands

Passenger CarsCommercial VehiclesAero EnginesRail SystemsAutomotive ElectronDiesel Engines

Brand History

E-commerceDaimlerChrysler Online StoreConsumer ReportsCar LoansService ContractsUsed Car Background CheckCar InsuranceMy Car, My LifestylePurchase My New VehicleRestoration StationProducts

Research and DevelopmentResearch and DevelopmentArchives

EnvironmentEnvironmental NewsEnvironmental Specials

CareersJobs at DaimlerChrysler

Just For FunPromotions for DaimlerChryslerScreen Savers“RPM” Racing Game

DCXLink to www.dcx.comDCX Stock Ticker

DaimlerChrysler.com

SITE MAPS

DAIMLERCHRYSLER

company at glance news brands

investor relations-dcxe-commerce

environment

just for fun research &development

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Investor RelationsBasic Information

SharesQuestions & AnswersTrading WorldwideStockholder StructureControlling SystemGlossaryThe Merger

ReportsIR ReleasesAudio/VideoAnnual MeetingFinance CalendarIR TeamMailing Service

Order ServiceAgent Service

Car Market “Snapshot”DCX Stock Ticker

News and CommunicationE-mail NewsletterWeb CastsMessage BoardNews Groups

Just For FunPromotions at DaimlerChryslerScreen Savers

DaimlerChrysler.comLink to www.daimlerchrysler.com

dcx.com

HealthHealth Insurance PlansMerckMedco Online Prescription Medicine Ordering

News and CommunicationMessage BoardWeb CastsE-mail NewsletterDaimlerChrysler ChatCivic Action

ExtrasTravel PackagesVehicle ReservationsEmployee CarPersonal Information

Just For FunPromotions for DaimlerChryslerScreen Savers

More InformationLink to www.daimlerchrysler.comLink to www.dcx.com

Education and AdvancementDaimlerChrysler Academy WeblinkE-RecruitingScholarships

SecurityProperty Insurance PlansDCX Stock Purchase ProgramPension FundsMerrill Lynch Benefits

dcen.com

DC • RPM

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To ensure the success of the RPM campaign,Fountainhead has budgeted $3.5 million

to continuously evaluate its effective-ness. Fountainhead will assess theimpact of the RPM campaign with bothquantitative and qualitative measures at

four stages throughout the campaign. The evaluationmeasures are designed to track changes in brandawareness and perception, to identify any problemswith the execution of the campaign and to help maxi-mize the impact of the message strategy. This allowsDaimlerChrysler to be up-to-date on the current atti-tudes and awareness of its global brand, to track pro-gressions in attitude and awareness throughout 2002and 2003, as well as to finish the campaign with valu-able benchmark data to make plans and formulatenew objectives on its way to becoming the mostadmired automotive company in the world.

QUANTITATIVE MEASURES Quantitative data is gathered in the form of tele-phone surveys with questions that allow respondentsto rate their levels of awareness and attitudestoward DaimlerChrysler as a global brand. Thisstatistical data will enable DaimlerChrysler tocompare initial levels of awareness and percep-tions with concurrent as well as concluding lev-els.

In the first stage of the evaluation program,telephone surveys are administered shortly before the

campaign is launched to determine base-line valuesfor awareness of and attitudes towardDaimlerChrysler. The same questions will be used inthe second stage, June 2002, to track the progress ofthe RPM campaign in raising brand awareness andimage changes. Any adjustments needed to maximizeeffectiveness in reaching target audiences are madeat this time with funds from the contingency budget.Finally, in the third stage of the evaluation, December2002, the same telephone surveys will be adminis-tered, permitting DaimlerChrysler to enter 2003 withthe most effective RPM campaign tactics as well asknowledge about progressions in brand awarenessand perceptions among the target audience. InDecember 2003, stage four of the evaluation programis conducted to provide statistical data showing theoverall effectiveness of the RPM campaign. With sucha structured plan of evaluation, figures from all fourstages put DaimlerChrysler in a position to comparethe initial perceptions of its target audiences and theirtransitory perceptions and final perceptions after theRPM campaign is completed.

EVALUATION & BUDGET

THE EVALUATION MEASURES ARE DESIGNED TOTRACK CHANGES IN BRAND AWARENESS AND PERCEPTION, TO IDENTIFY ANY PROBLEMS WITHTHE EXECUTION OF THE CAMPAIGN AND TO HELPMAXIMIZE THE IMPACT OF THE MESSAGE STRATEGY.

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DC • RPM

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QUALITATIVE MEASURES Qualitative data is gathered to further evaluate theawareness and attitudes of the target markets as wellas the impact of the RPM campaign's advertisements,promotions and media tactics. Responses from focusgroups give Fountainhead more in-depth insight as towhy target audiences' awareness and attitudes are atcertain levels. Additionally, they qualify the numbersof the quantitative surveys.

As with quantitative testing, focus groups in the quali-tative phase are conducted at the same four stages.The first stage, before the initial launch of the cam-paign, unveils in-depth cognitive perceptions ofDaimlerChrysler's target audience. In June 2002,focus groups will be done to receive feedback aboutthe effectiveness of the RPM campaign and its overallimpact on the target audiences’ image of and atti-tudes toward DaimlerChrysler. As a result of the quali-tative insights, any changes to the RPM campaignneeded to maximize effectiveness will be adminis-tered at this time. In December 2002, focus groupswill prepare DaimlerChrysler's movement into the sec-ond year of the RPM campaign. Finally, in the fourthstage, December 2003, focus groups will be held inorder to achieve in-depth insight to overall transitionsin awareness and attitudes of all target audiences atthe conclusion of the RPM campaign. These focusgroups help recognize any issues that might have tobe addressed to further reinforce the brand's posi-tioning as the daring vanguard of the automotiveworld.

Finally, to gauge the effectiveness of DaimlerChrysler’smassive media relations efforts, press coverage sur-rounding the company is constantly monitored toensure that the publicity pendulum swings back infavor of DaimlerChrysler. Content analysis of newsclippings and broadcast coverage are used continu-ously to track the impact of the RPM campaign’s tac-tics on the media coverage surroundingDaimlerChrysler.

TARGET AUDIENCE SAMPLE CELLSTarget audience members from the financial commu-nity, the DaimlerChrysler Family and consumers arerecruited to participate in surveys or focus groups,with samples drawn from each of the following RPMtarget countries: the US, UK, Germany, Canada andMexico.

The following are sample sizes recommended for thequantitative studies according to population size ofeach country. Sample sizes ensure 90% confidencethat quantitative measures are accurate to within +/-.83%. Budgets for each country are based on the costof fifteen-minute phone interviews.

UNITED STATESSample size in each wave of sampling = 5000 peopleTotal cost for 4 waves of sampling = $760,000

GERMANYSample size in each wave of sampling = 3000peopleTotal cost for 4 waves of sampling = $460,000

UNITED KINGDOMSample size in each wave of sampling = 3000 peopleTotal cost for 4 waves of sampling = $460,000

MEXICOSample size in each wave of sampling = 2000 peopleTotal cost for 4 waves of sampling = $320,000

CANADASample size in each wave of sampling = 2000 peopleTotal cost for 4 waves of sampling = $320,000

TOTAL QUANTITATIVE MEASUREMENT COST INRPM CAMPAIGN: $2.3 million

For qualitative sampling, there will be ten focusgroups administered at each stage of the evaluationprogram. At the end of the RPM campaign, 40 focusgroups will have been conducted in each target coun-try. Costs are based on the average cost of a focusgroup at $6,000.

TOTAL QUALITATIVE MEASUREMENT COST (withcosts for each country = $240,000): $1.2 million

TOTAL CAMPAIGN BUDGETProduction 10,000,000 13%Media 45,000,000 60%PR/ Promotions 15,000,000 20%Evaluation 3,500,000 5%Contingency 1,500,000 2%Total 75,000,000 100%

THESE FOCUS GROUPS HELP RECOGNIZE ANYISSUES THAT MIGHT HAVE TO BE ADDRESSED TOFURTHER REINFORCE THE BRAND’S POSITIONINGAS THE DARING VANGUARD OF THE AUTOMOTIVEWORLD.

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Through the RPM CAMPAIGN, Fountainhead achieves the goal of posi-tioning DaimlerChrysler as the most admired automotive compa-ny in the world with thought-provoking marketing, communi-cations and advertising strategies. Fountainhead’s cam-paign meets the client’s objectives, effectively using theyearly $75 million budget.

The UNIQUE AND PROGRESSIVE tactics ofthe campaign parallel DaimlerChrysler’s positionas the daring vanguard of the automotiveindustry. The RPM campaign acknowledgesand lessens gaps that have developedbetween the vision of DaimlerChrysler’s man-agement, the employee culture and the cur-rent images that target markets have of thecompany. Consequently, DaimlerChryslerbecomes recognized as a united global brandsetting out to UNLEASH ITS IMMENSEPOTENTIAL upon the automotive world. Thecampaign communicates ACROSS CULTURALBARRIERS by creating a personal relationship thatconnects with the emotions of multiple segmentssimultaneously. As a result,• the financial community is CONFIDENT ANDINSPIRED to invest in the corporation, coming to realize thatDaimlerChrysler is unleashing the qualities of a true industry leader.• employees understand the purpose and FEEL PROUD to become a part of the larger DaimlerChryslergroup, rather than just identifying with one of its individual brands.• consumers and the media are better informed because the RPM campaign BRINGS RECOGNITION to theDaimlerChrysler group as a whole rather than the individual brands.

At the conclusion of the three-year campaign, DaimlerChrysler realizes its brand position as the daring van-guard of its industry, clearing the way for DaimlerChrysler to become the most admired automotive company inthe world.