Case Study

Brainard, Bennis & Farrell.

Date: 1995.

To: Peter T. Honegg, Managing Director and C.E.O

DaimlerChrysler India Private Ltd.

From: Dhruv Patel, Management Trainee.

Subject: Report on the adoption of structure for effective internal functioning.

Enclosed is a report on the strategy that will help DaimlerChrysler India Private Ltd., attain its top position in the Indian Luxury car market.

Executive Summary

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Table of Contents

Sr. No. Contents Page No

1 Situation Analysis 5

2 Problem Statement 6

3 Options 6

4 Criteria for Evaluation 6

5 Evaluation of Options 7

6 Recommendations 9

7 Action Plan 9

Situation Analysis

DaimlerChrysler India Private Ltd., was established in November 1994 as a joint-venture between Daimler-Benz AG and Tata Motors. It has its own manufacturing plant in Pune where the C-Class and the E-Class are manufactured. SL-Class cars are imported as completely built units.

In 2006, BMW entered the Indian market and established a manufacturing plant in Chennai. BMW with its aggressive marketing, fast expanding public profiles, strategic location of dealerships and financial service offerings got a market share bigger than Mercedes-Benz.

With 60% of the purchase of cars being done through financing, BMW Group plans to start BMW Financial Services. It will provide service to fleet owners and dealers. It is also launching a ‘Pre-owned Car Sales Program’. Also BMW offers 5 year coverage as compared to th2 years offered by Mercedes-Benz.

Audi entered the Indian markets in 2007 and has been a craze amongst the techno-geeks. It also enthralls customers with new models and variants of the current models.

The company needs to increase its advertising budget and try to recapture the market share lost to the rivals. For this either the company can go in for media advertising or it could go in for personal selling or sponsor a road show of all the antique cars in a few cities.

Media advertising is expensive and will...