RIGA TECHNICAL UNIVERSITY

22000 Faculty of Engineering Economics and Management

Course "Business Planning (English) (1),19/20-P" learning platform

BUSINESS FORUM

Mercedes-Benz

Academic Bachelor Study Program

Business Planning
2019 Year 2 Group Full-time students
Dinuka Sachin game Liyanage
Kasun Indajith Banadara
183AIB004

Scientific advise - Inga Eriņa

Riga 2020

Mercedes Benz
Mercedes Benz
Contents
INDUCTION..................................................................................................................................................3
MISSION AND VISON...................................................................................................................................3
MISSION –................................................................................................................................................3
VISION –...................................................................................................................................................3
HISTORY.......................................................................................................................................................3
OUR TEAM...................................................................................................................................................4
SERVICES......................................................................................................................................................4
Our offer for you – on the road and off the road.....................................................................................4
PROJECTS.....................................................................................................................................................5
Digital@Retail simulates the true feel of driving. Wallet” project...........................................................5
Our chatbot buddy makes sure customers are satisfied..........................................................................5
The Wallet app as a service pass?............................................................................................................5
OBJECTIVES AND STRATEGY........................................................................................................................5
COMPANY STRENGTHS................................................................................................................................6
Our goal for Mercedes-Benz........................................................................................................................6
PRODUCTS AND SERVICES SUMMARY.........................................................................................................7
PRODUCTS AND SERVICES.......................................................................................................................7
 Consumer Financing....................................................................................................................7
 Vehicle Protection Product Offerings.........................................................................................7
 Commercial Vehicle Financing....................................................................................................7
 Dealer Financing..........................................................................................................................8
MARKETING SUMMARY...............................................................................................................................9
Product in the marketing mix of Mercedes Benz.....................................................................................9
Promotion in the marketing mix of Mercedes Benz..............................................................................10
Place in the marketing mix of Mercedes Benz.......................................................................................10
Pricing in the marketing mix of Mercedes Benz....................................................................................11
TARGET MARKET.......................................................................................................................................11
Competition...............................................................................................................................................11

Mercedes Benz
INDUCTION
Mercedes-Benz history began in 1886 when engineer Karl Benz invented the world’s first car.
This invention pioneered a path of innovation and technology which remains with us today.
Whether we’re exploring ways to make motoring more sustainable with mobility, or pushing
the boundaries of design and technology with our future cars, innovation underpins everything
we do at Mercedes-Benz. Since inventing the car, we’ve never stopped reinventing it.

MISSION AND VISON

MISSION –

We will inspire and create an exceptional place to work and to do business. One employee, one
customer, one vehicle at a time. Through our transparent atmosphere, premium auto
inventory, and individualized customer care, we create the luxury shopping experience that our
customers truly deserve.

VISION –

Astore Auto of Charleston holds a responsibility to foster an environment which empowers

employees, promotes innovation, relationships, and growth. We will continuously strive
to inspire consumer confidence by supplying a transparent atmosphere and offering a premium
automobile product with individualized customer care.

HISTORY
Mercedes-Benz, a German multi-national division of Daimler AG, is known for its luxurious
prestige, quality and performance. If you own one and are looking for Mercedes Benz car
covers, we carry a full line. The company’s headquarters is located in Stuttgart, Baden-
Württemberg, Germany, manufacturing luxury vehicles, trucks, buses and coaches. Its origins
are traced back to January 29, 1886, when Karl Benz submitted a patented to the Imperial
Patent Office for the Motorwagen – regarded as the first automobile to be gasoline powered.
The Mercedes-Benz automobile was born. Mercedes-Benz’s infamous slogan, “The Best or
Nothing”, and their brand is one of the most recognized in the world

Mercedes Benz
OUR TEAM

Ola Källenius
Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars
Markus Schäfer
Member of the Board of Management of Daimler AG. Group Research & Mercedes-Benz Cars
Development
Wilfried Porth
Member of the Board of Management of Daimler AG. Human Resources and Director of Labor
Relations, Mercedes-Benz Vans
Britta Seeger
Member of the Board of Management of Daimler AG. Mercedes-Benz Cars Marketing & Sales

SERVICES
Our offer for you – on the road and off the road .
We want to make your everyday life easier and to support you in making your business
successful. On all levels. Our diverse, tailor-made fleet solutions help you to manage your fleet
effectively. Our high-quality vehicles stand for innovation, efficiency, safety and comfort.
They are the perfect companions for your company vehicle users. They represent quality and
reliability and create measurable added value for your company. From operating costs to
employee satisfaction. Our individual consulting and other services do not end with vehicle
delivery – we are here for you throughout the entire service life of your fleet

Mercedes Benz
PROJECTS
Digital@Retail simulates the true feel of driving. Wallet” project

Frank on the project eMotionSeat

On the move with virtual reality: How can new technologies be transferred to business and used sensibly? And
what value do they add? The Digital@Retail pilot project provides the initial answers.

Our chatbot buddy makes sure customers are satisfied

Nico on the project AI / Chatbots

Off to the store of the future: Whether it’s material goods at eBay, virtual content on YouTube or
standard services on Airbnb, for more and more companies, a digital platform is the core of their
business. Traditional business models, where the goods make their way through sales channels and
supply chains to the consumer, are increasingly being superseded by digital platforms.

The Wallet app as a service pass?

Florian on the “Wallet” project

we tested the assumption that our end customers would see a Service Pass for the Wallet app as a
useful information medium and make use of it. It would expand the existing customer communication
channels and be seamlessly integrated into the existing ecosystem, once the product decision was
made.

OBJECTIVES AND STRATEGY

Today, the automotive industry is on the verge of a fundamental transformation. Four future-oriented
fields are set to radically change the nature of mobility: greater vehicle connectivity, advances in
autonomous driving, the development of digital mobility and transport services, and electric mobility.
Our goal as one of the leading vehicle manufacturers is to become a leading provider of mobility services
as well.

To this end, we will further strengthen our core business and lead the way in these four future-oriented
fields. Our efforts will be supported by a cultural and organizational transformation. We have not lost
sight of our overriding corporate objective: to achieve profitable growth and increase the value of our
company.

Mercedes Benz
COMPANY STRENGTHS
At the advanced design studios, Mercedes-Benzes tracks down the trends of the future. “we track down
trends rather than chasing after fads. “Mercedes has its personal tv for its customers in its website
Mercedes Benz has a strong brand value and global leader in premium cars lack of capital constraints
Mercedes holds patents on the majority of safety features manufactured and assembled in over 20
countries across the world

Our goal for Mercedes-Benz
Our goal for Mercedes-Benz Cars is to play the leading role in the worldwide premium segment over
the long term. We also aim to enhance the smart brand's pioneering role in urban, electric mobility.
Daimler Trucks intends to further strengthen its position as the leading truck manufacturer in the global
truck business.

PRODUCTS AND SERVICES SUMMARY

 Consumer Financing
 Vehicle Protection Product Offerings
 Commercial Vehicle Financing
 Dealer Financing

PRODUCTS AND SERVICES

 Consumer Financing
To help you acquire the Daimler vehicle of your choice, Mercedes-Benz Financial Services is here to
help! Whether you opt for a lease or purchase, we have a solution that’s right for almost every
customer.

Mercedes Benz
  Vehicle Protection Product Offerings
Our industry-leading First Class Protection Products protect our customers. Mercedes-Benz Financial
Services markets a comprehensive suite of branded aftermarket products that increase customer
satisfaction and dealer loyalty.

 Wheel and Tire Protection

 Paintless Dent Repair
 Windshield Protection
 Term Protection
 Key Protection
 Guaranteed Auto Protection (GAP)
 Lease Protection
 Interior and Exterior Protection

 Commercial Vehicle Financing

Daimler Truck Financial, a business unit of Mercedes-Benz Financial Services USA LLC, provides a broad
range of financial and insurance products and, services for Daimler Trucks North America’s commercial
vehicle brands, which include: Freightliner; Western Star; Thomas Built Buses; Mitsubishi Fuso; and
Sprinter.

 Dealer Financing
Daimler Truck Financial offers an extensive selection of dealer financial and insurance services in support
of our dealer partners.

 Financing and insuring vehicle inventories

 Assisting in the acquisition of equipment
 Supporting facility improvement and expansion

Mercedes Benz
MARKETING SUMMARY  

The marketing mix of Mercedes Benz shows what a fantastic company Mercedes is, and how, as per
Business Week Magazine, it is the top most recognized global automobile brands. This high profile
success is not an accident but hard work, patience and excellent application of effective marketing
strategy all rolled into one.

Mercedes benz is considered as the world’s oldest manufacturer of luxury carmaker and the reputation
is unlikely to go away in the near future. This marketing mix looks at the company’s marketing and
advertising strategies it has implemented over the years to establish itself as a leader in the fiercely
competitive automobile industry.

Product in the marketing mix of Mercedes Benz

The name Mercedes Benz needs no introduction even to a toddler, but many people don’t know the
inner story of this automobile giant and its line of products. As a matter of fact, Mercedes Benz has
always been associated with the world-class brand of cars, buses, coaches, and tracks known for their
luxurious nature. Mercedes Benz is not a company in itself; Gottlieb Daimler and Wilhelm May Bach call
its parent company Daimler AG, which was founded, in 1890.

Earlier on, Karl Benz had founded his company in 1871, which later came to join Daimler AG. Mercedes
Benz’s headquarters is located in Baden-Wurttemberg and Stuttgart, Germany.

As already mentioned, the company currently produces a wide range of advanced luxury trucks,
coaches, cars and buses in its manufacturing facilities based throughout the world. The company has its
origin in one of the founding fathers, Karl Benz’s creation of the first automobile that was launched in
1886. The car was first marketed in 1901. Since then, the company has introduced a number of
innovations that have helped in establishing the company.

The product is the strongest P in the marketing mix of Mercedes Benz. Mercedes remain as one of the
leading brands in the Indian market, that too for more than 50 years. The company currently assembles
its models — S-Class, E-Class, C-Class and the ML-Class while other models, including GL-Class, CLS-Class
and SLK-Class are fully imported.

Mercedes Benz
Promotion in the marketing mix of Mercedes Benz

Although Mercedes Benz marketing strategy used to focus on the luxury, safety and precision
engineering of its cars, competition has propelled it to adjust its product to suit the changing consumer
attitudes. Now, their marketing strategy focuses more on presenting a more energetic, fun loving and
approachable side of Mercedes Benz.

The evolution of its marketing strategy can also be a connection to its expanded market. Mercedes Benz
has, over the years, found it necessary to expand the market to include younger consumers. Another
marketing strategy employed by Mercedes Benz is its decision to slice prices and make the product
more affordable to consumers.

In order to increase communication with its target market, Mercedes Benz has maintained accessibility
to consumers through the following

 Online advertising
 Social media
 Establishing excellent customer service at its point of sales
 Offer warranty under excellent conditions
 Television advertising
 Print media

One thing that Mercedes managed to do is to build a reputation of quality and exclusivity in all its
products, making it one of the most recognizable brands in the globe. Thus, it enjoys a reputation of
class and prestige.

Place in the marketing mix of Mercedes Benz

Mercedes Benz introduced many technological and safety innovations over the years. However, the
introduced innovations went on to be replicated by other brands. The company distributes its product

Mercedes Benz
through a broad network of dealers throughout the world. Mercedes Benz understands that consumers
are not just interested in a buying a car that moves them from point X to point Y.

They are actually making a car that will enable them easily sell the idea about the car in the market. The
company intends to change the perception of the brand and reposition it so that it is more appealing to
the younger generation. They are also sending out the message that they are more approachable than
ever before.

Pricing in the marketing mix of Mercedes Benz

Mercedes-Benz manufactures different types of convertibles, full sixed sedans, coupes and sports
sedans. It has as many as 14 car models currently ranging from INR 21,49,000 to 7,68,00,000. Mercedes
is leaving no stone unturned to tap Indian market in premium segments. As a matter of fact, the
company deals in a niche segment where the customer is more concerned with the value they are
getting on the product more than anything else is.

Therefore, the company has tried to ensure it makes high-quality cars first and foremost. The company
has a broad price structure outside India, ranging from $30,000 to up to $100,000, depending on the
model.

TARGET MARKET
 The target market for the Mercedes Benz is middle aged people of middle to high incomes. (25-
44-year-old age)

 Mercedes-Benz Car target customers are mostly rich.

 Mercedes Benz does not produce low prices vehicles because Mercedes Benz targets rich
people.

 The brand is not popular with young people because it is expensive.

 Mercedes products also target both males and females as they design cars to fit both male and
female specifications.

Mercedes Benz
Competition
The segment of luxury cars is still accelerating, the wealthy are much less sensitive to high interest rates
and are more resilient overall to downturns.

Luxury cars sales are growing at 15% plus year on year. Even though India staggers from its worst
downturn, previous years of rapid growth have created a new moneyed class.

The bid spenders are top executives, ex-farmers who've sold property and wealthy entrepreneurs

In mature markets, luxury cars account for 10-15% of sales, while in India just 3% of sales comprises of
premium vehicles.

Delhi and Mumbai account for nearly 50% of luxury car sales. Emerging markets show a younger profile
compared to developed ones.

The average luxury car buyer in India is around 35 years old, globally it would be 43-45. Indian
consumers are value —sensitive not price sensitive.

GROWTH OF LUXURY CAR MARKET PLAYERS (SALES UNITS)

Mercedes Benz
 Series 1 Audi Benz

5
2015 2.8
4.5

3
2016 1.8
3.5

2
2017 4.4
2.5

2
2018 2.4
4.3

0 1 2 3 4 5 6

Promotion
Mercedes marketing strategy focuses more on presenting a more energetic and approachable side of
Mercedes-Benzes. Promotion strategy employed by Mercedes Benz is to slice price down and make it
affordable to consumers. Mercedes-Benz promote their product through.

• Online advertising

• Television advertisement

• Print media

In 2018, Daimler AG spent 689 million U.S. dollars on advertising in the United States. The German car
manufacturer decreased its promotional spending in the country that year compared to previous by 20
million dollars.

Daimler AG's advertising spending in the

United States from 2014 to 2018

Mercedes Benz
 Daimler AG's advertising
800

700
700
600 650
620

500
500 510
400

300

200

100

0
1 2014 2 2015 3 2016 4 2017 5 2018

SALES

Daimler’s divisions performed well in 2019 despite some difficult market conditions. This was
significantly supported by numerous new products and innovative services. Mercedes-Benz Cars,
Mercedes-Benz Vans and Daimler Buses all surpassed their prior-year unit sales

Mercedes Benz
Sales Mercedes-Benz Cars

The Mercedes-Benz Cars division sold a total of 2,385,400 vehicles in 2019 despite difficult overall
conditions (2018: 2,382,800). The division thus surpassed the record level of unit sales

Peru

italy

France

India

Chile

Germany

Mexico

USA

0 1000 2000 2019 3000

2018 4000 5000 6000

AMG high performance models peaked in 2017 at nearly 34,000 sales, and deliveries of these high-
performance models have accounted for nearly 10% of total Mercedes-Benz US passenger car sales
(excluding vans) in recent years. Mercedes-AMG sales of 33,586 cars represented 10.6% of the brand’s
total car and SUV sales in 2019, up from 28,940 sales (9.2%) in 2018, but still below the peak of 33,904

Mercedes Benz
sales (10%) in 2017, which was a big step (+45.8%) up from 23,261 units in 2016 (6.8%), helped by the
introduction of the lower-spec AMG 43 versions. In 2015, AMG sales were 17,456 units, or 5.1% of total
M-B passenger car sales in the US. The share of AMG sales had already been increasing steadily in the
years before: 2014: 11,303 (3.4%), 2013: 7,802 (2.5%) and 2012: 6,657 (2.4%).

Mercedes Benz