Mercedes-Benz was formed in 1926 through the merger of Daimler and Benz. It is now owned by Daimler AG. Mercedes-Benz produces luxury vehicles and accessories, and owns part of the Formula One racing team McLaren. It focuses on premium pricing and technology innovation. Mercedes-Benz emphasizes reducing emissions and improving fuel efficiency through hybrid, electric, and alternative fuel vehicles. It also supports social and environmental initiatives in India related to employment, education, and biodiesel development.

1. Introduction
• Daimler AG, established in 1873, is believed to be its
parent company
• The owner of this parent company Gottlieb Daimler
merged it with Karl Benz to form Daimler-Benz
• Daimler-Benz produced its first petrol-powered car in
January, 1886
• Daimler formed a distinct new enterprise known as
Mercedes in 1901
• In 1926, he merged his Mercedes with the Daimler-Benz
enterprise. Then onwards, the name Mercedes-Benz came
into existence due to economic necessity during World
War 1
•Mercedes-Benz is now owned by Daimler AG and Daimler
Chryler

2. Contd..
• Mercedes-Benz Accessories GmbH was founded in the
year 2000.
• Its business include car accessories, personal accessories,
collection and promotional items, and product design
• It has secured the 4th place in the quality leadership race
of car companies
• Mercedes-Benz partly owns the formula one Team
McLaren
• Mika Häkkinenin and Lewis Hamilton are two champion
drivers for Team McLaren

3. Internal Environment• 250 employees working in 13 sale outlets of Mercedes-Benz in India
• Few thousand workmen, engineers etc work in the assembling plant in
Chakan near Pune city. 240 employees work at the MBRDI
Company policies
• Mercedes-Benz has enjoyed a remarkable reputation in the global
market for more than eight decades
• Capital Intensive Company – Hails from a country which promotes
capitalism post World War II
• Mercedes-Benz boasts that their vintage vehicles were used by high
rank Nazi officials and the Führer himself, Adolf Hitler.

4. • Mercedes-Benz is a quality-oriented company. They aim
at groundbreaking technologies.
• The company has a “Premium” pricing policy. The target
customer are the ones who are less price sensitive i.e.
the conspicuous consumers. Cars available from Rs. 30
lacs to 3.5 crores in India and 8 crores abroad
Marketing Strategy
• Mercedes-Benz does not believe in television media
marketing. Print media is commonly used to advertise its
products and ideas
• Hoardings and brochures are also used to publicize the
brand

5. • Sales promotion in India is in the form of a
lucky draw for those who avail a test drive
• The winner of such a lucky draw may win a
chance to own a C-Class Mercedes-Benz for a
year and runner-up wins a trip to Lavassa to
watch the Merc Road Show
• To simplify the market supply medium,
Mercedes have channelized their output from
factories directly to dealership outlets. These
outlets are franchised to outside parties.

6. External Environment
Suppliers
• Bridgestone supplies tyres to Mercedes-Benz commercial
and formula 1 cars
• Tesla motors provide car batteries
• Car interior accessories are provided to it by its own
division, Mercedes-Benz Accessories GmbH
Competition
• It faces cut-throat competition in from BMW,
Volkswagen, Audi etc., BMW being the closest
competitor in India
• To gain competitive advantage Mercedes-Benz constantly
introduces new models, innovations, extensive marketing
and searching new Indian markets

7. • A distinct strategy adopted by Merc to evade
competition is tie-ups. Mercedes-Benz have ventured
with Aston Martin to concoct Lagonda, Renault to
endeavor the upcoming Forfour and undoubtedly the
most in vogue repercussion of such amalgamation is
the SLR series which is a Mercedes-Benz tie-up with
McLaren
• Mercedes-Benz has other attractive offers like
discounted car loans and estimable finance schemes
with Kotak Mahindra, HDFC and ICICI

8. Technological Environment
• Mercedes-Benz makes a constant effort to improvise
its technology. To achieve technological up gradation,
it has set up a R&D centre in India whose basic
function is to Indianize all Merc cars to make them
suitable on India roads.
• Due to availability of ideal raw materials to produce a
SUV, the SUV production has been transferred from
Germany to USA.

9. The Blue Efficiency
• Goal: To optimize each and every detail to make the
model work more efficiently. When used in conjunction
with efficient engines, BlueEFFICIENCY packages from
Mercedes-Benz can help reduce fuel consumption, and
therefore CO2 emission by upto 23%.
• Mercedes-Benz S400 is now available with a HYBRID
engine. It has two combustion engines, one that
combusts water and the other petrol. The electric motor
optimizes a certain engine, in accordance with driving
circumstance i.e. Water engine is used under 60 km/h
and petrol above it due to the low power offered by
Water combustion engine. This HYBRID will help save
nearly 20% of fuel usage in urban traffics.

10. • Mercedes-Benz NGT is a bi-fuel car. It is up to the
driver to decide whether he wants his car to run on
CNG or petrol at a certain point of time as the car
can operate on both premium-grade petrol as well as
CNG. This will help lower emissions, lower fuel
consumption cost and lower engine noise in traffic
situations.
• Mercedes-Benz F-CELL is another blue efficiency
revolution. The car runs without the use of fossil
fuels. Electric energy is produced by the reaction that
takes place between hydrogen and oxygen in the fuel
cell. The most impressive result: the only thing that
the reaction leaves behind is water.

11. Social & Natural Environment
• With 'The Jatropha Biodiesel Project', Merc
addresses the issues of rural income and
employment, indigenous as well as environment-
friendly biodiesel and reclamation of wasteland
• Its automotive training programmes, like Mobile Kids
are aimed at developing local technical competence
in India.
• Mobile Kids is a programme running in various
schools across India that takes internationally
relevant traffic safety issues and brings them across
through information, motivation and training

12. • In April 2002, the company introduced the first of its
kind, a comprehensive one year 'Mechatronics
Programme'. The program is aimed at developing local
technical competence in India and the sub-continent
for Mercedes-Benz cars’ Automotive diagnostic skills
as well as electronic and electrical networking systems
• The concept is a joint initiative of Mercedes-Benz India
and the Government Polytechnic in Pune and is
supported by CIM (Germany)
• Mercedes-Benz India, in collaboration with the
Government Polytechnic, Pune, has introduced a Post-
Diploma course on Advanced Automotive Technology.

13. • This One-year Post-Diploma course enables students
to be trained as per the highest standards of modern
automotive technology
• The curriculum also imbibes soft skills such as
written and oral communication as well as behavioral
skills.
• The curriculum incorporates key elements of
automobile & electronics technology as well as
insights about advanced automobile systems,
diagnostics and hands-on training.