Self Analysis using Market Segmentation approach developed by me. Only for academic purpose only and not for commercial use. Source of information related to Daimler: Bharatbenz' official communication available on internet, Internet, Self Analysis.

1. A Brief Report on:
Daimler India Commercial Vehicles
“Bharat Benz”
For Academic Purpose Only. Not for any commercial use
Source: Internet

2. Agenda
Agenda:
• Daimler Platforms for India
• Definitions – for understanding customer segments
• Customer Segments Targeted by Daimler – Light Duty Trucks (ICV)
• Customer Segments Targeted by Daimler – Heavy Duty Trucks (HDT)
• Customer Segments Targeted by Daimler – Tippers
• Daimler Key strategies for Indian Market
• SWOT Analysis of Daimler India Commercial Vehicles.
• Daimler India Pricing Strategy
• Daimler India – Fuso Update
For Academic Purpose Only. Not for any commercial use
Source: Internet

3. Daimler Platforms for India
Premium Segment
MB India
MB Truck –based
Bharat Benz
Heavy Duty
Trucks (HDT)
Actros 8x4 Tipper
CKD
GVW >25T
Localized
Fuso-based
Medium Duty
Trucks (MDT)
Light Duty
Trucks (LDT)
GVW 6 – 16 t
Localized
For Academic Purpose Only. Not for any commercial use
Source: Internet

4. Definitions
Definitions for understanding Customer Segments Targeted by Daimler India Commercial Vehicles
Usage Characteristics
User Characteristics
Extent of
loading
Rated
Load (=
GVW)
Moderate
Overload
(upto 30%
of GVW)
High
Overload
(upto 60%
of GVW)
Extreme
Overload
(> 60% of
GVW)
Haulage
Distance
(One way)
Very Short
(upto 100
km)
Short
(100-250
km)
Medium
(250 - 700
km)
Long (>
700 km)
Driving
Speed
Low Speed
(upto 40
kmph)
Medium
Speed (4060 kmph)
High
Speed (>60
kmph)
Fleet Size
OD (1
vehicle)
OND (2-4
vehicles)
SFO (510
vehicles)
Business
Sourcing
Market
Load
Contract
MFO (11-25
vehicles)
and LFO (>
25 vehicles)
Captive
KBF – Key Buying Factors
Captive = Owns vehicle and transportation is means for doing primary business
Market Load = Stands in the market / stand / yard / Transport Nagar to get business (directly from single customer), transportation is primary business
Contract = Transportation provided through long term service agreement, transportation primary business
For Academic Purpose Only. Not for any commercial use
Source: Internet

5. Customer Segments Targeted by DICV – Light Duty Trucks (ICV)
Segment Characteristics
Segment
Customer Segments
Targeted by Daimler
- LDT
Rated Load
60%
Economy
Strider Price
Minimiser
Performance
Seeker Zipper
Progressive
Industry
Size:
65000
(CY
2011)
Over Load
40%
(5%)
KBF's
Safety & Comfort
Performance
Seeker Zipper
(10%)
(2%)
Usage
Medium Speed
Customer
Type
MFO,LFO
Source of
Business
Contract
Captive
Medium, Long Haul
Customer
Source of
KBF's
Usage
Type
Business
Low Acquisition Price Medium Speed
Market Load
OD,OND,
More Fuel Economy Medium, Long Haul SFO,MFO
Contract
Customer
Source of
KBF's
Usage
Type
Business
Turn around Time
High Speed
Pick Up & Acceleration Medium, Long Haul MFO, LFO Contract,
Ease of Driving
Captive
KBF's
Work Horse
Overload Capacity
Striver Load
(28%) Sturdiness
Overload
Rated Load
Maximiser
Reliability
Upto 10% of Overload on GVW is not considered in Moderate Overload Strong Engine (HP)
Source: Self Analysis. Pl refer for my Market Segmentation file to understand it better.
Usage
Medium Speed
Medium Haul
Customer
Source of
Type
Business
OD,OND,
SFO,MFO
Market Load
2020
2025
(40%)
(37%)
(32%)
(17%)
(22%)
(28%)
(7%)
(11%)
(20%)
70%
80%
(8%)
(5%)
(3%)
(4%)
(5%)
(6%)
(26%)
(20%)
(11%)
38%
(15%)
Customer
Source of
KBF's
Usage
Type
Business
Turn around Time
High Speed
Pick Up & Acceleration Medium, Long Haul MFO, LFO Contract,
Ease of Driving
Captive
2016
62%
(40%)
Customer
Source of
KBF's
Usage
Type
Business
Low Acquisition Price Medium Speed
Market Load
OD,OND,
More Fuel Economy Medium, Long Haul SFO,MFO
Contract
Style
Economy
Strider Price
Minimiser
Future Outlook
30%
20%
For Academic Purpose Only. Not for any commercial use
Source: Internet

6. Customer Segments Targeted by DICV – Heavy Duty Trucks (HDT)
Segment Characteristics
Customer Segments
Targeted by Daimler
- HDT
Rated Load
80%
Economy
Strider Price
Minimiser
Performance
Seeker
Zipper
(55%)
KBF's
Usage
Customer
Type
(20%) Turn around Time
High Speed
MFO, LFO
Pick Up & Acceleration Medium, Long Haul
Ease of Driving
KBF's
Progressive
(5%)
Future Outlook
Customer
Source of
KBF's
Usage
Type
Business
Low Acquisition Price Medium Speed
OD,OND,
Market Load
SFO,MFO,
More Fuel Economy Medium, Long Haul
Contract
LFO
Safety & Comfort
Style
Usage
Customer
Type
Medium & High
Speed
MFO,LFO
Medium, Long Haul
Over Load
20%
Performance
Seeker
Zipper
(8%)
Source of
Business
Contract
Customer
Source of
Type
Business
Low Acquisition Price Medium Speed
OD,OND,
Market Load
More Fuel Economy Medium, Long Haul SFO
(2%)
Usage
Turn around Time
High Speed
MFO, LFO
Pick Up & Acceleration Medium, Long Haul
Ease of Driving
KBF's
Rated Load
Overload
Work Horse
Striver Load
Maximiser
Overload Capacity
(10%)
Customer
Type
Sturdiness
Reliability
Strong Engine (HP)
Source: Self Analysis. Pl refer for my Market Segmentation file to understand it better.
Usage
Medium Speed
Medium, Short,
Long haul
Customer
Type
OD,OND,
SFO,MFO,
LFO
2025
Contract,
Captive
Usage
KBF's
Economy
Strider Price
Minimiser
2020
Source of
Business
Rigid
KBF's
2016
Data needs to be added
Segment
Source of
Business
Contract,
Captive
Source of
Business
Market Load,
Contract
For Academic Purpose Only. Not for any commercial use
Source: Internet

7. Customer Segments Targeted by DICV – Tippers
Segment
Segment Characteristics
Future Outlook
2016
Rated Load
5%
Economy
Strider Price
Minimiser
Performance
Seeker
Zipper
(3%)
KBF's
(1%)
Progressive
Usage
Customer
Type
Turn around Time
High Speed
MFO, LFO
Pick Up & Acceleration Medium, Long Haul
Ease of Driving
KBF's
(1%)
Safety & Comfort
Style
Usage
Customer
Type
Medium, High
Speed
MFO,LFO
Medium, Long Haul
Source of
Business
Contract
Source of
Business
Contract
Tipper
Economy
Strider Price
Minimiser
Over Load
95%
Rated Load
Customer
Source of
Type
Business
Low Acquisition Price Medium Speed
OD,OND,
Market Load
More Fuel Economy Medium, Long Haul SFO
KBF's
(40%)
KBF's
Work Horse
Striver Load
Maximiser
(55%)
2025
Data needs to be added
Customer Segments
Targeted by Daimler
- Tippers
2020
Customer
Source of
KBF's
Usage
Type
Business
Low Acquisition Price Medium Speed
OD,OND,
Market Load
SFO,MFO,
More Fuel Economy Medium, Long Haul
Contract
LFO
Overload Capacity
Sturdiness
Reliability
Strong Engine (HP)
Usage
Customer
Source of
Type
Business
Medium Speed
OD,OND,
Market Load,
Medium, Long haul SFO,MFO,
Contract
LFO
Usage
Overload
Source: Self Analysis. Pl refer for my Market Segmentation file to understand it better.
For Academic Purpose Only. Not for any commercial use
Source: Internet

8. Daimler Key Strategies for Indian Market
3 key strategies of Bharat Benz to establish itself in the Indian CV space:
•
•
•
Aggressive target pricing so as to compete effectively with entrenched competitors like Tata Motors
and Ashok Leyland
Focus on Customer Service from the beginning to differentiate with the existing CV majors and
establish its brand
Placing products in the ‘new middle market’ which are just about 5-10% costlier but with high-end
features and higher HP engines (for faster turnaround time) – unlike Tata Prima, Volvo FH etc. which
comes in at a very high premium pricing (almost 2-3 times of the basic / conventional CV range)
Emergence of a ‘new middle market’ – where Bharat Benz plans to establish itself
Rs 1.5 to 1.8 MINR
Rs 1.8 to 2.2 MINR
Rs 3.0 to 4.5 MINR
Source: Internet
Price Ranges have changed, only for reference to show the relative price positioning
For Academic Purpose Only. Not for any commercial use
Source: Internet

9. SWOT Analysis for Daimler India Commercial Vehicles
SWOT Analysis of Daimler India Commercial Vehicles
Strengths:
Weaknesses:
•
‘Benz’ brand recall among many sections of the
•
Lack of Indian market experience and knowledge
Indian market – make Bharat Benz easy to establish
•
Unproven products given that they are tweaked for
itself
the Indian market
•
Aggressive pricing may allow it to compete
•
Lack of strong and established sales and service
meaningfully with entrenched players
network
•
Backed by global technology
•
India operations have been built from scratch, with
•
Changing paradigm – with customers willing to
no readily available global blueprint for help
experiment may support its entry in the Indian
market
•
Leverage the export potential along with domestic
volumes.
SWOT Analysis
(Daimler India
Commercial
Vehicles)
Opportunities:
•
Upgrading the Indian CV operators by creating the
new-middle market through provision of global
technology at a marginally premium priced products
•
Participation in one of the world’s largest CV market
•
Daimler can get a strong foothold in the rapidly
growing Indian CV market
•
Export to various countries.
Threats:
•
Execution risk – Current Capacity: 70000,
Investment: 700 Million Euros. Daimler must ensure
that all the elements of its strategy must get well
executed. Else, its bold attempt can prove to be a
big setback which may floor Daimler for a long
period of time
•
Timely aggression from the Indian CV players.
Source:Internet
For Academic Purpose Only. Not for any commercial use
Source: Internet

10. Daimler India – Pricing Strategy
Pricing Strategy – Global trucks at local prices
Daimler plans to price its ‘BharatBenz’ trucks just about 5-10% expensive than the existing truck models in the market of that of Tata and
Ashok Leyland. Some of the pointers to this aggressive pricing strategy may be as following
•
•
•
•
Higher localization (85%) from the beginning – at local prices
o Local manufacturing of engines – contract & in-house
o In-house manufacturing of frames, axles, sheet metal parts etc.
o Local procurement of most of the components – with a large vendor base (~50%) located within a 50 km
distance of the mother plant in Chennai.
o Will also act a shield against currency fluctuations
Huge tax benefits – Full-fledged manufacturing in India helps in reducing taxes
o Customs duty for imported FBU
o Customs duty for imports of SKD kits
o Excise tax for locally manufactured trucks (including engines and other aggregates)
No-frill / Stripped down versions of their existing models – Mercedes-Benz Axor and Fuso Canter
products. Basically, Daimler would provide a no-frill products without features such as AC, power
windows etc.
Additional revenue stream – test track as a ‘Profit Centre’, i.e. it will lend out the test track to others
even to its component vendors and non-core competitors which will help in augmenting its revenues,
although it may not be a major revenue earner
Source: Internet
For Academic Purpose Only. Not for any commercial use
Source: Internet

11. Daimler India – Fuso Update
Fuso Update:
Daimler Trucks Asia exports first FUSO Trucks “Made in India”
•
•
•
•
•
•
The Daimler commercial vehicles subsidiaries Mitsubishi Fuso Truck and Bus Corporation (MFTBC) and Daimler India
Commercial Vehicles (DICV) are working side by side on achieving the joint unit sales target of 290,000 commercial
vehicles until the year 2020.
Under the umbrella of Daimler Trucks Asia, MFTBC is now going a step further together with DICV: With a view to
boosting the presence in the growth markets and tapping into further sales potential, the two companies are going
forward with an integrated product portfolio for greater variant diversity and an optimized production network with
the truck plants in Kawasaki, Japan, and Chennai, India, as the main production hubs.
In addition to producing BharatBenz trucks for India, since May 2013, DICV is also making FUSO trucks for selected
export markets in Asia and Africa.
By the end of the year, Bangladesh, Zambia, Tanzania, Uganda and Brunei will also be supplied with state-of-the-art
trucks under the FUSO brand from India.
The successive roll-out in the growth markets of Indonesia, Thailand, Malaysia, Malawi, Zimbabwe, Mozambique,
Mauritius and the Seychelles is planned for the year 2014.
The new, medium-duty and heavy-duty FUSO models are based on the same technical Daimler Trucks product
platform as the BharatBenz trucks. This enables the production of both truck brands under one roof.
Source: Daimler Investor Relations Release June 2013
For Academic Purpose Only. Not for any commercial use
Source: Internet

12. Thank you …