Clash of Tuetons

7/29/2019 Clash of Tuetons

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The battle between automotive luxury brandsMercedes-Benz and BMW is being played out

in India on three fronts

products,distribution and events.


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By attaining the leadership position in a country in just its

third year of operations, BMW India created history

within the group worldwide.

In 2009, BMW sold 3,619 units, while Mercedes-Benz

India managed 3,247 units.

BMW overtook Mercedes for the first time when the

January 2009 sales were revealed.

It was a rude shock for Mercedes-Benz.


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Strategies of MercedesBenz

The action began at theAuto Expo in January,where a collective intake of

breath accompanied therise of the gull wing doors ofthe SLS AMG supercar -easily, the star of the show.

Internally, Mercedes-Benzcalled it the 12x12 strategy.

To garner more volumes,they have introducedstripped-down versions oftheir big sellers

Strategies of BMW

BMW introduced the

limited edition Gran

Turismo, the extremelypowerful X6 M SUV.

A host of other variant

Series.

To garner more volumes,they have introduced

stripped-down versions of

their big sellers


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Despite sharply divergent financial situations, BMW and

Mercedes are more similar than they are different.

Both brands command astonishing customer loyalty,

have produced performance models that define

automotive essence for gearheads around the world,

and are bastions of luxury.

Indeed, studies show that, despite the advance of Lexus,

Jaguar, Infiniti, and others, the ultra rich still see

Mercedes and BMW as the most prestigious brands onearth.


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STRENGTHS

Diverse ranges of Products

Strong Cash Flow Position

Increase turnover and trading profits

Strong Balance Sheet

World's leading Premium Quality Automobile Manufacturer Brand Awareness

Human resources

Capabilities to turn resources into advantages

WEAKNESSES

Perception of High Prices

Customer disinterest

Environmental issues: Pollutions

Buyer sophistication and knowledge

Substitute products or technologies


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OPPORTUNITIES New Products

Market shift to globalisation

Innovation & Alliances

Customers demand change to more comfortable and relevantly cheap cars

Diversification

New Technologies in AutomobilesTHREATS New & existing competition

Volatility in Price of Fuel

New legislations

Consequences of the oil crisis

Economic recession

Market shift to globalisation Takeover bids

Far-East Automobile companies expansion

Extremely high competition for customers and resources


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We assure you that the rest of 2010 will also be highly

engaging and we do have a few more surprises in store

for our customers," says Wilfried Aulbur, the MD & CEOof Mercedes-Benz India.

His few more surprises could be the category busting

R-Class, the cabriolet version of the stylish E Coupe and

new products powered by the recently introduced CGItechnology.


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BMW too promises not to relax. In 2010, we will

resolutely expand our product range and thus cover all

the opportunities in the luxury segment which arerelevant for us," promises Dr Andreas Schaaf, the new

president of BMW India.


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Car manufacturers always use new product launches to

drum up excitement and keep the tempo up in the

marketplace.

When it comes to luxury cars, new engine technologies

plus safety and comfort features also play a big role.

But in this case, both the luxury car makers realize they

need to do more than mere product launches - after all,

they are selling a lifestyle and not just automobiles.


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Both manufacturers have inevitably associated

themselves with golf, high fashion and varied touch-and-

feel experiences with the brand for customers.

Beyond the association of the brands in high profileactivities, both the German manufacturers realize the

game is going to be played out at the retail level.


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With an investment of over Rs200 crore in network,

Mercedes-Benz is now present in 26 cities with 55 touch

points, the largest for any luxury player in India.

In fact, the manufacturer has weeded out

underperforming dealers, leading to a 30 per cent churn

in their 2009 line-up.


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BMW, being the newer player and with only 17 dealer

facilities.

It is racing against time to establish its presence in more

cities.

An aggressive plan was implemented for completion of

phase 1 (12 dealers in the major metros) much ahead of

schedule.

Owing to an exuberant growth potential, they will

expand operations in 10 additional cities in phase 2 of

their dealer network strategy.


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In January-April 2010, BMW sold 1,621units while

Mercedes-Benz's revival has translated into 1,603 units.

The race is pretty close and there are still eight long

excruciating months to go, during which the action can

get quite intense. Better strap up.


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Clash of Tuetons