FINAL TERM PROJECT REPORT

Course Name: GLOBAL MARKETING

Title: DIAMLER AG

Submitted To: Prof. Awais Qadeer

Submitted By:

No # Sr. No GROUP 7 ID

1 3 Zohaib Azhar L1F10MBAM0154

2 14 Azeem Farrukh L1F10MBAM2064

3 15 Ibrar Karamat L1F10MBAM2149

4 26 Muhammad Waqas FArooq L1F10MBAM2256

Section: (A)

Given date: 20th APRIL, 2013

Due Date: 25TH MAY, 2013

1

Acknowledgement

All the praise is for Allah Who gave us the strength, mental and physical capabilities

to accomplish this project

This report is a team effort and we owe great thanks to those people who helped and

supported us in writing this report

We would like to thank our mentor, who supported us and provided extremely friendly attitude

without which the accomplishment of this project would not have been possible.

In the end our deepest thanks our parents who supported us and to our teacher Prof. Awais

Qadeer who gave us the opportunity to write this report.

Regards:

No # Sr. No GROUP 7 ID

1 3 Zohaib Azhar L1F10MBAM0154

2 14 Azeem Farrukh L1F10MBAM2064

3 15 Ibrar Karamat L1F10MBAM2149

4 26 Muhammad Waqas FArooq L1F10MBAM2256

2

Outlines:

1. Vision, corporate mission and objectives

2. Philosophies of global marketing

3. Organization/management

4. Coverage that is global presence

5. Global operation

6. Number of product categories and number of brands within each category

7. Standardized and localized brands

8. What is standardized and what is localized in each brand

9. Production facilities

10. R&D

11. Company’s global marketing strategies

12. Environmental concerns

13. Topics covered throughout the semester

14. Article/news the company’s strategies to handles different environmental challenges

3

History:

Daimler AG is a German Multinational automotive corporation. Daimler AG is headquartered in “Stuttgart, Baden-Württemberg” Germany. Daimler AG is a German manufacturer

of automobiles, motor vehicles, and engines, which dates back more than a century. By unit sales, it is the thirteenth-largest car manufacture and second-largest truck manufacturer in the world. There products includes Buses, Cars, Trucks and provide Financial Services.

Timeline of Daimler AG:

Benz & Company, 1883–1926:

An Agreement of Mutual Interest was signed on 1 May 1924 between Benz & Cie (founded 1883) of Karl Benz. Both companies continued to manufacture their separate automobile and

internal combustion engine brands until, on 28 June 1926, when Benz & Cie. 

Daimler Motoren Gesellschaft AG, 1890–1926:Daimler Motoren Gesellschaft AG formally merged.

Daimler-Benz AG, 1926–1998:

Daimler-Benz AG and agreed that thereafter, all of the factories would use the brand name of Mercedes-Benz on their automobiles.

DaimlerChrysler AG, 1998–2007:

In 1998, Daimler-Benz and Chrysler Corporation announced the world's largest cross-border deal ever, valued at US$38billion and the resulting change in company name to DaimlerChrysler AG.

Daimler AG, 2007–present:

4

In 2007, when the Chrysler group was sold off to Cerberus Capital Management, the name of the parent company was changed to simply "Daimler AG".

5

Company Profile:

We are one of the world’s most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world’s biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides financing, leasing, fleet management, insurance and innovative mobility services. The company’s founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As a pioneer of automotive engineering, we continue to shape the future of mobility today: Our focus is on innovative and green technologies as well as on safe and superior automobiles that appeal to and fascinate our customers. For many years now, Daimler has been investing continually in the development of alternative drive systems with the goal of making emission-free driving possible in the long term. So in addition to vehicles with hybrid drive, we now have the broadest range of locally emission-free electric vehicles powered by batteries and fuel cells. This is just one example of how we willingly accept the challenge of meeting our responsibility towards society and the environment.

 

Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world’s most valuable premium automotive brand, Mercedes-Benz, the brands smart, Freightliner, Western Star, Bharat Benz, Fuso, Setra and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2012, the Group sold 2.2 million vehicles and employed a workforce of 275,000 people; revenue totaled €114.3 billion and EBIT amounted to €8.6 billion.

Company ownership:

Daimler is owned by European, U.S. and other international investors. More than one

billion shares (December 31, 2012) are circulating.

Listing:

The stock is listed on the stock exchanges in Frankfurt and Stuttgart.

6

Vision:

“Our vision is simple but at the same time ambitious: Working closely with our automotive

colleagues, we want to be the first-choice provider of financial and mobility services for our

customers and dealers”

Corporate mission:

Our mission is to achieve the best for our customers, dealers, vehicle brands, and parent

company. A large scale and international scope are preconditions for attaining these goals.

Objectives:

Protecting the environment

Optimizing the production process

HR target system

HR organizational structure

Job security through more flexible working time regulations:

Flexible working time regulations

Remuneration of temporary personnel

Performance assessment and target-oriented leadership

Remuneration of the Board of Management

Philosophies of global marketing

There are as following:

A Clear Direction of Strategies for Growth

Front runner

PEOPLE AT WORK

A COMPANY COMMUNICATING

ONROAD, ONLINE

7

Earning Power increases once again:

o New records for earnings, unit sales and revenues

o Operating profit grows faster than revenues - up 28% to €11.0 billion

o Net income increases from €4.8 billion to €5.7 billion

o Synergy targets significantly overachieved with benefits of €1.4 billion

o €2.35 dividend proposed (1998: €2.35)

o Almost 4.9 million passenger cars and commercial vehicles sold (1998: 4.5 million)

o Dasa, Aerospatiale Matra and CASA merge to form EADS

Shareholder base expanded significantly:

Upward trend on international stock markets

o Performance of automotive stocks lagged behind international indexes

o Share price does not reflect positive business developments at DaimlerChrysler

o Highest dividend yield in the automotive industry

Profitable growth:

o Continued high profitability

o Revenues to increase significantly to about €167 billion in 2002

o €50 billion to be invested by the year 2002

o Almost 60 new vehicle models by 2005

Best year ever for Mercedes-Benz:

The new Mercedes-Benz CL is a unique synthesis of high performance and luxury. Advanced

technology that is unavailable in any other car and innovative design are additional features of

this exclusive Mercedes-Benz coupe.

Chrysler Group Exciting products ahead:

8

Combining versatility and efficiency in an all-new, distinctively American design, the Chrysler

PT Cruiser breaks the mold of a traditional small car to create a new flexible-activity vehicle

with an innovative interior package.

Chrysler Group Exciting products ahead:

Freightliner, the No.1 supplier of heavy duty trucks in North America, offers the most modern

family of trucks and the largest selection of cabs, sleepers, and component options in the

industry. Sterling was founded by Freightliner Corporation in 1998. Masterful engineering and

attention to detail are qualities that enable Sterling to create an impressive range of hard-

working, long-lasting professional trucks and tractors.

Services Dynamic growth:

In its tenth financial year, DaimlerChrysler Services (debits) AG continued its success story,

achieving new record figures for revenues, earnings and work force in the future-oriented areas

of financial Services and IT services. For debits, 1999 was typified by further

internationalization.

Aerospace A new dawn over Europe:

As the largest sector of Dasa, DaimlerChrysler Aerospace Airbus GmbH is responsible for our

Airbus activities. Dasa holds a 37.9% stake in the European Airbus consortium, which in 1999

was the world’s number two for passenger aircraft sales, and for the first time, number one for

incoming orders. The Airbus family, which is constantly being expanded with new and

innovative models, offers attractive products to customers all over the world.

Automotive Electronics Rail Systems MTU/Diesel Engines

Rail systems:

-New structure

Automotive electronics:

- Still booming

Mtu/diesel engines:

9

-Technological leaders

Research and Technology Driving innovation:

The variable ergonomics test bench gives answers to important questions concerning the

dimensions and ergonomics of future models. The state of the-art, computer-controlled

equipment helps to considerably shorten the development time of new vehicles.

DaimlerChrysler and the Environment Commitment to environmental protection:

At the Sindelfingen factory, in addition to the legally required measurements of emissions in the

ambient air, plants are also used as solvent detectors. In this greenhouse, air quality is examined

using tomatoes, nasturtiums and bush beans.

Global Procurement & Supply Creating the world’s most effective supply chain:

Teamwork with suppliers is a key source of innovation. DaimlerChrysler employee Richard

Soyka (left) and Decoma employees Christina Hernandez and Chris Keyes are involved with a

new plastics technology that could help make cars lighter and less expensive.

Human Resources 12,000 new jobs created:

A three-week trip abroad offering a view into another culture is the centerpiece of a new Daimler

Chrysler exchange program for young people aged 15 to 17. The program is intended as a way to

develop close relationships between the new company’s employees in North America and

Germany.

10

Organization/Management

Dr. Dieter Zetsche has been the Chairman of Daimler and Head of Mercedes-Benz Cars since

January 1, 2006 as well as member of Board of Management since 1998. He was former

President and CEO of the Chrysler, LLC (previously owned by Daimler AG), he may be best

known in the United States as Dr. Z from a Chrysler advertising campaign called "Ask Dr. Z".

Current members of the Board of Management of Daimler AG are:

Dr. Dieter Zetsche: Chairman of the Board as well as Head of Mercedes-Benz Cars.

Dr. Wolfgang Bernhard: Head of Daimler Trucks.

Wilfried Porth: Head of Human Resources and Labor Relations.

Andreas Renschler: Head of Mercedes-Benz Cars Procurement and Production.

Bodo Uebber: Head of Finance and Controlling as well as Financial Services.

Dr. Thomas Weber: Head of Group Research and Mercedes-Benz Cars Development.

Current members of the Supervisory Board of Daimler AG are: Heinrich Flegel, Juergen

Hambrecht, Thomas Klebe, Erich Klemm, Arnaud Lagardère, Jürgen Langer, Helmut

Lense, Sari Baldauf, William Owens, Ansgar Osseforth, Valter Sanches, Manfred Schneider,

Stefan Schwaab, Bernhard Walter, Lynton Wilson, Mark Wössner, Manfred Bischoff, Clemens

Börsig and Uwe Werner. Dr Manfred Bischoff serves as the Chairman of the Supervisory Board

of Daimler AG and Erich Klemm as Vice-Chairman.

11

Coverage that is global presence

The Daimler AG exists in USA and the market growth is 2.1%. It was 14 million market

volumes. In Europe 2.8% Europe excluding Russia Market growth*. It was 13 million vehicles

market volume. In Russia 3.6 % Market growth*.Its consist of 2.8 million vehicles Market

volume*. In Brazil 4.6 % company Market growth*. It was 3.5 million vehicles Market

volume*.in India the company India 12.2 % Market growth*.its market volume was 2.8 million.

China 9.3% Market growth. It was 14 million vehicles Market volume*. The company is listed

on the stock exchanges of Frankfurt and Stuttgart (stock exchange symbol DAI). In 2012, the

Group sold 2.2 million vehicles and employed a workforce of 275,000 people; revenue totaled

EUR 114.3 billion and EBIT amounted to EUR 8.6 billion.

Countries Market growth vehicles

Market volume*

USA 2.1% 14 million

Europe(exuding Russia) 2.8% 13 million

Russia 3.6% 2.8 million

Brazil 4.6% 3.5 million

India 12.2% 2.8 million

china 9.3% 14 million

12

Global Operations

Africa

Countries Location

South Africa o Atlantis, Atlantis Foundries (Pty.) Ltd.

o Centurion, Mercedes-Benz Financial Services South Africa (Pty)

Ltd

o Centurion, Mercedes-Benz South Africa (Pty) Ltd

Egypt o Cairo, Mercedes-Benz Egypt S.A.E.

ASIA

13

Countries Locations

China o Beijing, Beijing Benz Automotive Co., Ltd. (BBAC)

o Beijing, Mercedes-Benz Auto Finance Ltd.

o Fuzhou, Fujian Benz Automotive Co. (FBAC)

Hong Kong o Hong Kong, Mercedes-Benz Financial Services Hong Kong Ltd.

India o Bangalore, Mercedes-Benz Research & Development India Pvt Ltd.

o Chennai, Daimler India Commercial Vehicles Pvt. Ltd.

o Pune, Mercedes-Benz India Private Ltd.

Indonesia o Jakarta, Mercedes-Benz Indonesia

Japan o Kawasaki, Mercedes-Benz Research & Development

o Kawasaki, Mitsubishi Fuso Truck and Bus Corporation (MFTBC)

o Tokyo, Mercedes-Benz Finance Co., Ltd.

o Tokyo, Mercedes-Benz Japan Co., Ltd.

o Yokohama, Mercedes-Benz Advanced Design Center

Malaysia o Kuala Lumpur, Mercedes-Benz Malaysia Sdn. Bhd.

o Kuala Lumpur, Mercedes-Benz Services Malaysia SdnBhd

Singapore o Singapore, Daimler South East Asia Pte. Ltd.

o Singapore, Mercedes-Benz Financial Services Singapore Ltd.

South Korea o Seoul, Daimler Trucks Korea Ltd.

o Seoul, Mercedes-Benz Korea Ltd.

Taiwan o Taipei, Mercedes-Benz Financial Services Taiwan Ltd.

o Taipei, Mercedes-Benz Taiwan Ltd.

Thailand o Bangkok, Mercedes-Benz (Thailand) Ltd.

o Bangkok, Mercedes-Benz Leasing (Thailand) Co., Ltd.

Vietnam o Ho Chi Minh City, Mercedes-Benz Vietnam Ltd.

14

AUSTRALIA / PACIFIC

Countries Locations

Australia o Mulgrave, Mercedes-Benz Australia/Pacific Pty Ltd

o Mulgrave, Mercedes-Benz Financial Services Australia Pty. Ltd.

New Zealand o Auckland, Mercedes-Benz Financial Services New Zealand Ltd.

o Auckland, Mercedes-Benz New Zealand Ltd.

EUROPE

15

Countries Locations

Austria o Graz, Mercedes-Benz Consult Graz GmbH

o Salzburg, Mercedes-Benz Financial Services Austria GmbH

Belgium o Brussels, Mercedes-Benz Belgium Luxembourg NV

o Brussels, Mercedes-Benz Financial Services BeLux NV

Denmark o Copenhagen S, Mercedes-Benz Danmark AS

o Hvidovre, Mercedes-Benz FinansDanmark AS

France o Bailly, Mercedes-Benz Financial Services France S.A.

o Hambach, smart Plant (smart France S.A.S.).

Germany o Affalterbach, Mercedes-AMG GmbH

o Berlin, Daimler Group Services Berlin GmbH

Great Britain o Milton Keynes, Mercedes-Benz Financial Services UK Limited

o Milton Keynes, Mercedes-Benz UK Limited

Greece o Kifissia, Mercedes-Benz Financial Services Hellas AE

o Kifissia, Mercedes-Benz Hellas S.A.

Hungary o Budapest, Mercedes-Benz Broker BiztositásiAlkusz Hungary Kft.

o Budapest, Mercedes-Benz Credit PénzügyiSzolgáltató Hungary

Zrt.

Italy o Como, Mercedes-Benz Advanced Design Studio

o Rome, Mercedes-Benz Financial Services Italia SpA

Netherlands o Utrecht, Mercedes-Benz Financial Services Nederland B.V.

o Utrecht, Mercedes-Benz Nederland B.V.

Poland o Warsaw, Mercedes-Benz Bank Polska S.A.

o Warsaw, Mercedes-Benz Leasing Polska Sp. z o.o.

Portugal o Mem Martins, Mercedes-Benz Portugal, S.A.

o Tramagal, Mitsubishi Fuso Truck Europe S.A.

Romania o Bukarest, Mercedes-Benz Insurance Broker SRL

o Bukarest, Mercedes-Benz Leasing IFN SA

Russia o Moscow, Mercedes-Benz Bank Rus OOO

16

o Moscow, Mercedes-Benz Financial Services Rus OOO

Spain o Madrid, Mercedes-Benz Espana, S.A.

o Sámano, EvoBusIberica S.A.

Sweden o Malmö, Mercedes-Benz FinansSverige AB

o Malmö, Mercedes-Benz Sverige AB

Switzerland o Schlieren, Mercedes-Benz Financial Services Schweiz AG

o Schlieren, Mercedes-Benz Schweiz AG

Turkey o Istanbul-Esenyurt, Mercedes-Benz Türk A.S.

o Istanbul-Hoşdere, Mercedes-Benz Türk A.Ş.

NORTH & CENTRAL AMERICA

Countries Locations

Canada o Mississauga, Mercedes-Benz Financial Services Canada

Corporation

o Toronto, Mercedes-Benz Canada, Inc.

Mexico o Mexico-City, Daimler VehículosComerciales México, S. de

R.L. de C.V.

o Mexico-City, Mercedes-Benz México, S. de R.L. de C.V.

USA o Montvale, Mercedes-Benz USA, LLC

o Portland, Truck Manufacturing Plant (Daimler Trucks North

America LLC)

17

SOUTH AMERICA

Countries Locations

Argentina o Buenos Aires, Mercedes-Benz Argentina S.A.

o Buenos Aires, Mercedes-Benz CompañiaFinanciera

Argentina S.A.

Brazil o Sao Bernardo do Campo Plant, Mercedes-Benz doBrasil

Ltda.

o Sao Paulo, Banco Mercedes-Benz do Brasil S.A.

18

Product Categories and Brands

I. Divisions of Daimler AG:

 Mercedes-Benz Cars

 Daimler Trucks,

 Mercedes-Benz Vans

 Daimler Buses

Daimler Financial Services

II. Brands under each category:

a) Passenger cars:

Mercedes-Benz

Smart

b) Trucks

Mercedes-Benz

Freightliner

Fuso

Western star trucks

Bharat Benz

c) Vans:

Mercedes Benz

d) Buses:

Mercedes-Benz

Setra

Fuso

Thomas Built Buses

19

e) Financial services:

Leasing and financing

Leasing and Financing for car dealers

Fleet Management

Insurance

Banking

f) Components:

Alliance Truck Parts

Detroit Diesel

g) Others:

Mercedes AMG High Performance Power trains (Builds engines for Formula 1

Racing)

Standardized and Localized Brands

Some of the products of Daimler are standardized means their features and attributes are same

where the product is being offered while some products are localized means they are produced

depending on the need of certain country or region.

Standardized Brands:

Mercedes-Benz – The best or nothing:

True to Gottlieb Daimler’s philosophy, “The best or nothing”, Mercedes-Benz’s

pioneering work has been shaping the future of mobility for more than 125 years. More than any

other trademark in the automotive world, the Mercedes-Benz star symbolizes the perfect

combination of fascination and responsibility. With its great innovative strength, Mercedes-Benz

is constantly defining new milestones in terms of vehicle drive systems, safety, comfort and

design.

20

Mercedes-Benz plays a pioneering role particularly in the field of safety technology.

Many innovative ideas which became reality for the first time in a Mercedes-Benz passenger car

continue to influence all aspects of automobile development to this day. They include the anti-

lock braking system (ABS, 1978), the airbag (1980) and the Electronic Stability Program (ESP®,

1995). Today, Brake Assist Plus with PRE SAFE Brakes, the drowsiness detection system

ATTENTION ASSIST, Blind Spot Assist, Lane Keeping Assist and Collision Prevention Assist,

installed as standard in the Mercedes-Benz A- and B-Class, together with many other driver

assistance and comfort systems, make Mercedes-Benz vehicles the safest automobiles in the

world.

Smart – "A great idea continues on the road to success"

The smart brand stands for innovation, functionality and joie de vivre. smart products

have an unconventional design, high technology standards and are the ideal vehicles for use in

urban areas. True to the maxim "We need different cars – but we still want to stay mobile", smart

is the worlds smallest automotive think tank.

The new 2012 smart for-two model generation is the continuation of a unique success

story for smart. As a trendsetter the smart for-two has been redefining individual urban mobility

for more than ten years now – with a high fun factor and ecological standards. Smart is now

represented in 45 markets worldwide with the Ukraine as the latest new market. The main

markets are Germany, Italy and China.

Fuso – Daimler’s leading Truck Brand on the Asian Market

Fuso has forged its reputation as a manufacturer is committed to quality not just

throughout Asia, the Middle East, Africa, but also worldwide. The vehicles developed and

produced by Fuso are of high quality, efficient, and are ideally matched to diverse conditions of

operation.

Mercedes-Benz Vans:

Mercedes-Benz Vans achieves outstanding product quality through perfection and great

attention to detail, setting standards again and again with forward-looking innovations and

21

excellent value retention. In this way the brand creates real added value for the customer. A

Mercedes-Benz van is "well worth its price".

Mercedes-Benz Buses and Coaches – focusing on safety and economy:

Anyone who travels in a Mercedes-Benz bus can relax secure in the knowledge that

they’re being guided by a lucky star – after all, over 100 years’ experience of bus manufacture

goes into every model. It was in 1895 that automotive pioneer Carl Benz built the world’s first

motor-driven bus, in Mannheim – and today, the city is still the centre for the Mercedes-Benz

Bus brand. All of the vehicles embody the Mercedes-Benz goal of combining premium quality,

excellent economy and the highest standards of safety. As a technology leader with full-line

competence, the Mercedes-Benz Buses and Coaches brand offers a comprehensive range of

products.

Setra – "Best in Class"

"Much more so than knowledge and skill it requires passion to design a perfect bus:

passion for engineering, and for the people who'll be driving the bus."

When people talk about top-flight touring coaches and rural-service buses, inevitably the

name Setra will be dropped. Buses and coaches have been coming out of Ulm and Neu-Ulm for

the past 100 years or so, first under the company name Kässbohrer, and then as Setra brand. Karl

Kässbohrer (1864-1922) set up a wheelwright's shop in Ulm in 1893. The firm initially built

automobile coachwork as well as bodies and superstructures for trucks. Kässbohrer puts its first

bus - it was still an open-bodied design then - on the market in 1907. In 1951, on the occasion of

the Frankfurt International Motor show, after long years of research and development

Kässbohrer presented to the public the S 8, the first coach with a self-supporting body, rear-

mounted engine, and direct drive to the rear axle. With that, Kässbohrer gave rise to a new

brand: Setra.

As a brand of Daimler AG, since 1995 Setra has been a part of EvoBus GmbH, which is

present in Europe and the USA and in China through a license agreement.

22

Localized brands:

Mercedes-Benz Trucks – "Trucks You Can Trust"

Gottlieb Daimler sold the world's first truck in 1896. For over 100 years the name

Mercedes-Benz has guaranteed trucks of highest quality. In the European and Latin American

markets Mercedes-Benz Trucks has always been synonymous with reliability and economy, first-

rate quality in product and service as well as global competency in customer-focused transport

solutions.

This applies in equal degrees to the Actros, Axon, Antos and Atego truck lines and to the

special-purpose vehicles from Mercedes-Benz Trucks. That includes the specialist for municipal,

collection and short-range distribution services, the Mercedes-Benz Econic, and the universal

working machine Unimog for applications in the municipal sector and the power-supply and

construction industries, in road-rail service and in the forest industry, where it is deployed to

fight forest fires, for example. The new off-road truck for operation in the most difficult terrain,

the Mercedes-Benz Zetros, rounds off the range.

Freightliner Trucks – Daimler’s Leading Truck Brand in North America

Since its beginning in 1942, Freightliner Trucks has become one of the most recognizable

and respected names in the trucking industry. Fleet managers and owner-operators alike

associate Freightliner Trucks with efficient, dependable vehicles — business tools to be relied

upon day in and day out under even the most punishing conditions.

Product offerings include a broad range of customizable vocational trucks, such as the

versatile Business Class M2which is well suited for local pick-up and delivery, towing and utility

applications; and the rugged 108SD, 114SD and Coronado SD, which are ideal for construction,

municipal, refuse and heavy-haul duties. The long haul on-highway product lineup is led by

the Freightliner Cascadia, a truck designed from the ground up to maximize efficiency — inside

23

and out. The owner-operator preferred Coronado combines efficiency with traditional styling to

create a bold truck that turns heads. And with its wide selection of natural gas and hybrid-electric

vehicles, including the M2 112, 114SD and Cascadian 113-inch BBC day cab with natural gas

technology and the M2 106 diesel-electric hybrids, Freightliner Trucks leads the medium- and

heavy-duty commercial vehicle market in alternative fuel products.

BharatBenz:

Bharat Benz is Daimler’s 5th truck brand specially developed for the booming Indian

market. While “Bharat” is the native word for India and demonstrates a strong commitment to

this market, “Benz” alludes to Daimler's high technological standards that are incorporated in

this new brand.

BharatBenz focuses on producing trucks in the weight category of 6 to 49 tonnes and

provides platforms for a wide range of haulage and construction applications. While the Light-

duty and Medium-duty trucks are based on the FUSO platform, the Heavy-duty trucks are based

on the Mercedes-Benz Axon platform.

Western Star - "Serious Trucks"

Western Star Truck Sales, Inc., a subsidiary of Daimler Trucks North America LLC,

designs, manufactures, and distributes premium heavy-duty custom trucks for long haul and

vocational applications.

As a brand, Western Star has long stood for the ultimate in ruggedness and power – while

at the same time providing the ultimate in comfort, quality, durability, and distinctive styling.

With their striking exteriors, unrivaled construction and stringent quality control, Western Star

trucks are built to the exact specifications of its customers. From extreme duty off-road to

premium on-highway, the vehicles are without a doubt “one serious truck”.

Thomas Built Buses: Precious cargo. Exceptional buses. Because every mile matters

Since 1916, Thomas Built Buses has been committed to building smart and innovative

transportation. Our employees design and build the kind of school buses they would want their

24

own children to ride in every day. Their dedication translates into a product line associated with

innovative design, reliability, safety and sustainability. And, beyond building and delivering

exceptional buses, we’re here to offer exceptional customer service and support.

Every bus is custom built and sold through independently-owned dealers throughout

North America. With a focus on quality and continuous improvement, Thomas Built utilizes

a lean management operating system designed to produce reliable vehicles customers want,

when they want them and in the most efficient manner possible.

Production facilities:

The truck visited numerous Daimler production facilities in Germany, promoting

integrity under the slogan “Integrity on the move – priority for respect, openness and

fairness”. The tour offered interactive presentations around the theme of integrity, an

ideal opportunity for employees to engage in discussion and become involved in the

company wide dialogue process.

Local production facilities and we are targeting investment in local markets and new

production capacity to enable us to meet the global demand.

Daimler sells its vehicles and services in nearly all the countries of the world and has

production facilities on five continents. Its current brand portfolio includes, in addition to

the world’s most valuable premium automotive brand, Mercedes-Benz, the brands smart,

Freightliner, Western Star, Bharat Benz, Fuso, Setra and Thomas Built Buses.

Our production facilities are spread over five continents and 19 countries. Even research

and development at Daimler is on a global basis – with sites in Europe, the USA and in

Asia.

We intend to carry out this assessment in all of the 18 countries in which we manufacture

products, and to establish a worldwide system of human rights risk management at all of

our production facilities.

As a producer of waste, it is vital that we use a standard process to regularly evaluate the

companies charged with disposing the waste of our production facilities. None of the

waste is exported to other countries.

Production facilities and the sales and service network, the truck producer Foton is

contributing its knowledge of the Chinese and Asian markets to the joint venture.

25

The Group has production facilities in a total of 19 countries and approximately 8,000

sales centers worldwide.

The global networking of research and development activities, production and sales

locations gives Daimler Considerable potential to enhance efficiency and gain advantages

in international competition, resulting in additional growth opportunities.

The main investments at Daimler Buses in 2012 were in new products and the

modernization of production facilities.

The Group has also committed to make payments in connection with rental and leasing

agreements for the use of production facilities and property, plant and equipment.

The Group has issued a number of smaller guarantees, some of which specify that

Daimler guarantees the financial obligations of companies which supply us with parts,

vehicle components or services, or which lease production facilities to us.

Research & Development

“Research has a long tradition at Daimler, where it occupies a key position. Findings

from our own research have always set the pace in the development of new, forward

looking vehicles-and this is why we officially established a research unit in the early

1970s”.

After 125 years, the demand for the automobile is higher than ever before – and this

is precisely why we are reinventing it once again. For as the global need for mobility

increases so do the demands on vehicle engineering in all disciplines: from safety to

comfort and particularly with regard to achieving the highest efficiency and effective

environmental protection. The key lies in new, efficient and clean technologies.

Therefore, at Daimler we consistently focus not only on high-quality development, but

also on our research, which has formed the basis of our success since the beginning. This

has made Daimler the only car manufacturer today with a complete range of vehicles and

technologies for sustainable and emission-free mobility – from optimized combustion

engines to hybrid drives, to electric vehicles with battery and fuel cell drive systems.

26

Our company‘s founding fathers passed their love of inventing down to us. In 1885,

Gottlieb Daimler installed his high-speed combustion engine in a two-wheeler, the Riding

Car. Independently of Daimler, Carl Benz presented his Patent Motor Car in 1886, the

world‘s first integral design for an automobile. Nobody talked about research cars in

either case at the time, but both the Riding Car and the Patent

Motor Car marked the starting point of our tradition of having the foresight to create

groundbreaking vehicle concepts early on in order to obtain findings for the development

of tomorrow’s motor vehicles and beyond.

This power of innovation has been one of the key motivating forces within our company

for 125 years – and will continue to be so now and in the future. A tangible example of

this is the constant development of Mercedes-Benz research vehicles, which we have

been using for over four decades to bring innovations to life. The fully functional

Mercedes-Benz research vehicles make it possible to experience and directly evaluate

new technologies. With these vehicles, we are continuously further developing a

combination of fascination and responsibility that is specifically geared toward possible

use in future Mercedes-Benz series cars.

The 1991 Mercedes-Benz F 100, for instance, featured not only a novel seating concept

with a correspondingly pioneering bodywork design, but also numerous electronic

functions for enhanced safety and comfort. Almost 20 years later in the spring of 2010,

the Mercedes-Benz F 800 Style made its debut in Geneva under the motto „Efficiency

paired with elegance“. The five-seat upper-range sedan combines highly efficient drive

technologies and intelligent seat, control and display concepts with unparalleled safety

and convenience features and an emotive design idiom.

The latest research vehicle known as the Mercedes-Benz F 125! is offering insight into

how completely emission-free, individual mobility might be achieved in the future in the

luxury segment. The key innovations include emission-free electric mobility with a range

of 1000 kilometers based on a logical further development of the fuel cell drive system, a

revolutionary hydrogen composite storage unit, and a lighter and more powerful battery

based on next generation lithium-sulfur technology in combination with plug-in

technology. Keeping with anniversary motto„125 Years of innovation“, Daimler, the

technology leader, is demonstrating the potential of fuel cells – a technology that could

27

turn hydrogen into a key energy source in our economy of the future, similar to that of oil

today.

This brochure introduces you to all of the company‘s research vehicles – from the 1969

Mercedes-Benz C 111 to the Mercedes-Benz F 125!, which, thanks to its technical and

formal innovations, should pave the way to a society that does not rely on fossil fuels. We

plan for groundbreaking concepts in our research vehicles and for decades have been

setting trends for the future and thus also for individual mobility.

The future of the original:

The desire to get to the bottom of things was already driving Carl Benz back in 1886

when he designed the famous Patent Motor Car. He researched, calculated, tinkered, and

discarded ideas – until he had finally built a vehicle that, apart from the wheels, had little

in common with its contemporaries. Everything else was original and different – a stroke

of genius. This was the first automobile. Mercedes-Benz has always tested new

automotive concepts on fully operational vehicles, and has stepped up this practice since

1969. The Wankel, or rotary-piston engine, in the C111 was the first to be tested and was

later followed by other drive systems. This car was thus the forerunner of the research

cars. Their history began in 1978 with the “Auto 2000”, the Mercedes-Benz stepping

stone to in-depth basic research for new automobiles. It was followed by the NAFA in

1981. The more recent line-up began with the F 100 in

1991 – The “F” standing for the German for “research car”. Since then, research cars

fitting the description “holistic” have been produced with almost infallible regularity;

they serve not just to test single components, but often to demonstrate an entirely new

vehicle concept in the form of a ready-to-drive automobile that incorporates many

forward looking technologies. Apart from research cars, the company classifies several

other types of vehicle that serve to develop new models.

Test vehicles are close relatives of the research cars. Their purpose is to put new

technologies from the research labs out onto the test track to try them out in practical

operation.

Concept cars at Daimler AG are near-production, ready-to drive vehicle studies. They

position a future vehicle model on the market. One example is the Study A of 1993,

which reveals several characteristics attributed to the subsequent A-Class. Concept cars

28

are equipped with new technology that is already in production cars or soon to reach

production standard.

Vehicle studies are feasibility studies that show new ideas in the form of a complete

automobile. These, however, are not usually roadworthy. This category includes NAFA,

a short-distance vehicle that originated a good twenty years ago. It had a short, high body

and, as such, was a forerunner of the Mercedes-Benz A-Class and the smart city coupé.

29

Daimler

Targets

Growth Areas

GLOBAL STRTEGIES

Daimler strategy based on Targets and Growth Areas.

Targets:

Our overriding corporate goal is to achieve sustainable profitable growth and thus to

increase the value of the Group. We strive to achieve the leading position in all our

businesses.

30

Operational excellence and efficiency along with inspired and high-performing people are the

key to our future corporate success. At the same time, our entrepreneurial activities are guided by

the principle of sustainability. Our employees orient themselves on the four corporate values of

passion, respect, integrity and discipline. We want to lead the competition also in terms of

integrity.

We have set ourselves clear sales targets. By the end of the decade Mercedes-Benz Cars strives

to occupy the Number One position in the premium segment. On the way to achieving this goal,

we want to sell more than 1.6 million cars of the Mercedes-Benz brand in 2015. At Daimler

Trucks, we want to strengthen our leading role in the global truck business and aim to sell more

than 500,000 vehicles in the year 2015. Mercedes-Benz Vans plans to sell 400,000 vehicles and

Daimler Buses 42,000 complete buses in 2015. Daimler Financial Services will continue to grow

in line with our automotive business and expand its product offering in the field of vehicle

financing, as well as with mobility services and insurance.

Additionally to our sales targets, we intend to achieve on a sustained basis a return on sales target

of 9% on average for the automotive business.

For the implementation of our claim to leadership, we draw on the strengths of the Daimler

Group: our traditional role as an innovation and technology leader, the worldwide reputation of

our core brand Mercedes-Benz and our global presence as a full-line supplier of premium cars,

first-class trucks, vans and buses and tailor-made financial services.

Growh Areas:

Four strategic growth areas

We aim to achieve our goals through four strategic growth areas, running as central themes

through all divisions.

We will

further strengthen our core business,

grow in new markets,

take the lead with “green” technologies, and

31

lead the way with the development of new mobility concepts and services.

Strengthening the Core Business:

A strong core business is the key foundation for profitability and growth. In order to

strengthen our core business, we are renewing and expanding our model range, effectively

developing our brands, and taking measures to increase efficiency and competitiveness in all our

businesses. Also we will further extend our pioneering role for active and passive safety with

both cars and commercial vehicles. In all our divisions we are implementing programs,

supporting both our growth strategy as well as further efficiency improvements.

Growing In New Markets:

Growth in global automotive demand will mainly take place in the markets outside

Europe, North America and Japan in the coming years. Although we continue to strengthen our

position in these traditional markets, we also aim to expand in other regions, especially in Brazil,

Russia, India and China, the so-called BRIC countries. We will achieve this through further

enhancing our local presence and, where useful, cooperation with local partners.

32

Leading With Green Technologies:

As a pioneer of automotive engineering, our goal is to make the future of mobility safe

and sustainable. Varying mobility requirements call for different drive solutions. Our portfolio of

solutions ranges from the optimization of internal-combustion engines to hybrid drive and to

locally emission-free driving.

Shape Mobility Concepts & Services:

More than half of the world’s population already lives in cities, and this proportion is

rising. Furthermore digital technologies are changing our corporate and working life. At the

same time customers are increasingly demanding individual, needs-oriented and convenient

mobility solutions that are easy to use and accessible online at any time. As a manufacturer, we

are responding to this demand by offering mobility concepts in the private, commercial and

public sector. Examples are our car sharing initiative car2go, Charter Way, Bus Rapid Transit

(BRT) and the mobility platform “moovel”.

E shop For Mitsubishi Fuso:

The global rollout of standardized IPS processes is progressing extremely well. The

department IPS/BP (IPS Processes, Methods & Tools),responsible for the global rollout and

support, has now implemented the centralized e-Shopcatalog system at the Mitsubishi Fuso

Truck and Bus Corporation (MFTBC) in Japan.E-Shopprovides users with a centralized catalog

system that gives them access to electronic catalog sin Japanese national language, thus enabling

them to submit orders to suppliers simply, economically and directly.

E-shop is proving To Be A Success:

After just six months of intense and challenging project work, Mitsubishi Fuso disposes

now of a new requisition process that is fully integrate dinto the existing system landscape.

Further suppliers and commodities, as well as the 260MFTBC dealers, will gradually be linked

to e-Shop. HansJörg Kottmann, Head of IPS/SP (Procurement

NPM Asia/Pacific, MFTBC) expressed great satisfaction with the result: “e-Shop is already

proving to be a considerable success today, barely half a year since the start of the project.

33

Purchasers are already noticing significant improvements, especially in the processing of small

orders. This increasingly allows us to concentrate our attention on strategic and value adding

tasks.”

Global Brand Protection:

DaimlerChrysler formed the Executive Automotive Committee (EAC). This

committee debated all cross-cutting topics to safeguard the identity of the corporate brands and

to make use of synergy effects where possible.

This did not change the basic sales structure, but merely the brand strategy: Dr. Dieter Zetsche

Chairman of the Board of Management ofDaimler AG and Head of Mercedes-Benz Cars,

declared that from thenon a clear distinction would be made between the corporate brandDaimler

and the group’s various product brands: “The strength of ourbrands is one of our greatest assets

of all. Maintaining them anddeveloping them further is therefore one of our central duties.

Environmental Concerns

We Are Responsible for the Common Good:

As a worldwide leading company, the Daimler Group supports institutions, projects and events

concerning education, science, art, culture, sports and social issues at its entities, and views them

as methods of creating social value. Additionally, the Daimler Group plays an active role in

international disaster relief efforts.

Daimler supports its employees’ tremendous willingness to provide assistance e.g. by matching a

portion of the employees’ donations. One successful example is the pro Cent initiative which

supports non-profit projects at home and abroad.

We Stand for Quality and Safety of our Products:

Our desire is to make the mobility of the future as safe as possible and to turn our vision

of accident-free driving into reality. We, therefore, focus on top quality and constant quality

improvements, as well as the use of innovations in our cars that raise their level of safety. Such

innovations are essential to the growth and success of the Daimler Group.

34

We Work Sustainably and Conserve Resources:

With new mobility concepts, we are taking into account the needs of sprawling metropolises to

reduce environmental pollution and to ensure mobility. The steps we take to improve the

environmental impact of our production and our products are published in an annual

Sustainability Report, and we exchange information with those who follow our business, our

stakeholders.

Hybridization of vehicles with efficient combustion engines:

Plug-in HYBRID, in which batteries can be recharged at normal power outlets in order

to increase a vehicles’ range on electric power. The next generation S-Class will include

a plug-in HYBRID model, which will be the first car in this segment to consume only

three liters of fuel per 100 km.

In 2012, we introduced our latest hybrid models: the E 300 Blue TEC HYBRID (the

world’s most fuel-efficient upper-range automobile with a fuel consumption of 4.1 liters

per 100 km and CO2 emissions of 107 g/km) and the E 400 HYBRID, which was

launched on the U.S. market and will later be offered in other countries such as Japan and

China.

The new Blue DIRECT four-cylinder gasoline engines already comply with the EU6

standard, which will go into effect in 2015. The engines are also the first in the world to

use the stratified lean-burn process in combination with turbo charging and external high-

pressure exhaust gas recirculation. As a result, the E 250 is the only gasoline powered car

in its segment to achieve Efficiency Class A. The vehicle consumes 5.8 liters of fuel per

100 km and emits only 135 g of CO2/km.

Some of the diesel-powered E-Class cars are Blue TEC models equipped with SCR

(Selective Catalytic Reduction) technology. As a result, they comply with the EU6

emissions standard before it comes into effect.

Mercedes-AMG’s all-new AMG Cylinder Management system substantially increases

the efficiency of the SLK 55 AMG. Under partial load conditions, the system switches

four of the cylinders off, leading to a significant decrease in fuel consumption.

35

The Blue EFFICIENCY version of the A 180 CDI also achieves outstanding results:

emissions of only 92 g of CO2/km and a fuel consumption of 3.6 liters per 100 km.

Environmental News Related To “DAIMLER” Feb 21, 2013Stuttgart/Munich, Germany, April 25th, 2013

“Mercedes-Benz Actors’ is "Green Truck 2013"

The Mercedes-Benz Actros 1851 GigaSpace is the most eco-friendly commercial

vehicle of 2013. The Euro VI-compliant truck made a direct impact in what was just

its first year on the road thanks to its low fuel consumption, as proven last year in

these independent vehicle tests.

Key criteria for the assessment include, first and foremost, the vehicle's fuel consumption and thus also its CO2 emissions. Additional factors include its exhaust emission classification and maximum payload. The basis for the calculation of the fuel consumption figures was provided by the test results recorded by German specialist truck magazines 'Verkehrs Rundschau' and 'Trucker' on a standardized route.

Contributing significantly to this result, which showed the fuel consumption of the Actros to be almost a full litre lower than that of the second-placed vehicle, was the "anticipatory" cruise control system 'Predictive Powertrain Control' (PPC). PPC recognizes the topography of the route ahead and acts to deliver optimum fuel consumption. The new driver assistance system shows its strengths particularly on hilly routes: as the  first GPS-based cruise control system in the world, Predictive Power train Control not only intervenes in the straightforward control of speed and braking, but also controls the transmission. In a sustainable extension of the use of the EcoRoll function, a standard feature of the Actros that plays an active part in reducing fuel consumption, the system can also very cleverly, when it makes sense to do so, insert single or double downshifts at precisely the right moment.

36

The Actros was also able to demonstrate the achievement of significant fuel savings right after its world premiere back in 2011. In a comparison drive over 10.000 km between Rotterdam and Stettin, monitored by the German professional automotive services organization Dekra, the Actros 1845 LS Blue Tec 6 demonstrated an advantage of 4.5 percent in fuel consumption over the Euro V model of the previous Actros series

Terms Use in Whole Semester

Management orientation:

The form and substance of a company’s response to a global market opportunity depend greatly on management’s assumptions or beliefs – both conscious and unconscious – about the nature of world. “Daimler AG”company having with Geocentric Orientationviews assume the entire world as a potential market and strives to develop integrated world market strategies, this is what we call global or transnational companies.

Daimler AG serving world markets from a single country, or that source globally for the purpose of focusing on select country markets. Daimler, the global company tends to retain their association with a particular headquarters in “Stuttgart, Germany”. They are serving more than 40 countries around the globe.

Driving forces:

“Regional Economic Agreements”a number of multilateral agreements have accelerated the pace of global integration NATFA is already expanding trade among the United States. In Case of “Daimler” In 1998, Daimler-Benz and Chrysler Corporation announced the world's largest cross-border deal ever, valued at US$38billion, and the resulting change in company name to DaimlerChrysler AG.

“Transportation and Communication Improvement”the time and cost barrier associated with distance have fallen tremendously over the past 100 years. Daimler AG with its exclusive product line providing Daimler Trucks, Commercial vehicles, Daimler Buses and Mercedes-Benz Vans.The company fully utilize their opportunity and to get the maximum benefit to go global.

37

“Product Development Cost”the pressure for globalization is intense when new product requires major investment and long period of development time. In case of Daimler AG his product throughout the world is centralize, minor changes of tiers and safety is required.

“Quality” global marketing strategy can generate greater revenue and greater operating margins which, in turn, support design and manufacturing quality. Today people are more quality conscious and this gives the great opportunity to Daimler AG to provide high quality automobiles for consumers around the globe.

Stages of Market Development:

With respect to Daimler AG their global marketing strategies is to create demand for their product and they are successful in more than 40 countries even it includes developed countries like (U.S.A, Germany, Canada, Australia etc.) and developing countries like ( Pakistan , India, South Africa etc.) Daimler unique product portfolio includes cars, buses, trucks, commercial vehicles and vans. Most of countries having low per capita income and people attitude is just spend on their necessities not luxuries but they create a strong brand image in the mind of people and change the status of people and providing best selling cars and affordable prices according to country situation.

Global Products and Brands:

The globalization of industries is putting pressure on companies to develop global products and too leverage brand equity on worldwide basis. Daimler AG meets the and needs of global market and they are offering their product in all world regions. Since globalization and are more focus on their brand protection.“The strength of our brands is one of our greatest assets of all. Maintaining them and developing them further is therefore one of our central duties”. They acquire and contract no’s of companies and working in 40 different countries, they more focus to alive their original brand name.

38

Extension &Adapt:

“Product – Communication Adaption” in case of Daimler AG, they are offering their products in no’s of countries, obviously they have different culture and language issues, to avoid from such problem they act adaptive attitude. They communicate their message in local or country national language so that people easily understand it.

Daimler AC is a global company so for this purpose they close view no needs and wants of customer belonging to different countries such as some customers wants low prices, fuel efficient and high quality. To meet they customer expectation they strong marketing research to satisfy customer satisfaction.

References:

o http://en.wikipedia.org/wiki/Daimler_AG

o http://www.daimler.com/dccom/0-5-7153-1-1593703-1-0-0-0-0-0-12035-0-0-0-0-0-0-0-0.html

o http://www.daimler.com/company

o http://www.daimler.com/company/strategy

o http://www.daimler.com/company/business-units

o http://www.daimler.com/company/daimler-worldwide

o http://www.daimler.com/investor-relations/en

o http://www.daimler.com/company/news

39