Project on Indirect Distribution Channel Of Mercedes Benz

Submitted by (SEC G) Arundeep Kaur Kunal Kothari Rishiraj Bora Pallavi Gogoi Sandeep Singh

What is the Perception of masses towards Mercedes Benz?? Just another Car? No, it is a status symbol. But is it only because it is costly vehicle?

Maybe partly true but ,it is a status symbol because it delivers vehicles of superior quality and design

VENUE:T&T MOTORS PERSON: Mr. VARUN KUMAR (Assistant Manager-Sales) PRODUCT:MERCEDES BENZ

About Mercedes Benz

It was founded in 1881 by Karl Benz and Gottlieb Daimler Mercedes-Benz is the brand name owned by Daimler AG and its headquarters is at Stuttgart, Germany. Its Product line consists of Luxury cars, buses, trucks, high performance internal combustion engines.
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History Of Mercedes Benz

Mercedes-Benz was previously owned by Daimler-Benz. It was formed by the merger of Karl Benz s and Gottlieb Daimler's motor car companies. Karl Benz engineered the first petrolpowered car and formed the Benz motor car company i.e. Benz Patent Motorwagen in January 1881. The first Mercedes-Benz brand name vehicles were produced in 1926

Indirect Distribution System

Distribution channels are the methods that companies use to enter the consumer market with their product. An Indirect Distribution System is the system in which the marketer reaches the intended final user with the help of others. This channel is used by companies who do not sell their goods directly to consumers. Types of Indirect Distribution System : A) Single-Party Selling System - Under this system the marketer engages another party who then sells and distributes directly to the final customer. B) Multiple-Party Selling System This indirect distribution system has the product passing through two or more distributors before reaching the final customer.

Channels Of Distribution

Distribution Channel Of Mercedes

Mercedes Benz Daimler Plant

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Mercedes Benz Indian Headquarter , Pune

Mercedes Benz Dealerships

Customer

Questionnaire
Q: How is the Product marketed? A: Mercedes Benz is a brand name in itself and therefore no vigorous advertisement is required. Advertisements in the form of promotion activities are done through conducting events like golf sponsorship, lunch and dinner parties. -Participation in reputed auto expos in Germany, USA, Italy, France ,India etc. -Sponsorship and participation in Car races where products are demanded in bulk.
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Q: What are the Channel Participants and channel structure? A: Companies like DHL, Fedex are some logistic partners. Mainly Cargo Ships are used for imports and trucks are used for national distribution. -USA is the hub of manufacture of Mercedes cars. In India Mumbai, Delhi and Pune are main distribution hubs for the product .Germany has the main Head office.
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Q: How is the channel managed? A: Special software's are used for managing complex problems and are recorded accordingly. One example is TALLY for financial work. Q: What are the components of the distribution costs? A: Distribution Cost includes Octroi, Custom Duties, Freight ,Insurance etc are important factors while transferring the product. 12.5% tax is charged as tax on the overall figure.
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Q: How are channel conflict resolved? A: All the functions are done in a systematical and orderly manner so there is no such conflict. The documents are carefully, confidentially and judiciously used. Insurance and other claim receipts are kept for proof which in turn reduces risk and conflicts. Computers and e-commerce are preferred more to reduce error which cause conflict and accuracy. Payments are made in advance to the main branch. Brand name also plays a vital role.
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Q: Who is responsible for designing and setting up of such channel? A: Different councils sits upon and decides the main channels in Germany head Quarter. They take decisions regarding cost, speediness, time saving etc. various tools and statistical instruments like (PERT CPM, assignment, transportation, regression, correlation, TQM etc are used).
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Q: How are the warehouse managed? A: Warehousing is done by the transporters. The warehouses charges comes upto Rs.2500 a day per car. Eg-Mathura Road Warehouse has capacity of 50-70 cars. Q: What are the Logistics and Distribution Cost? A: Logistic and Distribution Cost is huge as the product is from foreign country and luxurious product. Taxes and Custom duty charges are comparatively higher than other product. Other expenses includes octroi, freight, insurance etc.
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Q:What are the various pricing strategies? A : (Brand name=Price).Price are fixed according to competition. Prices cannot be reduced because Mercedes is a luxury product and Mercedes need to maintain its dignity by pricing. Pricing is done by targeting high income people.

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Suggestions
The channel system can be made better by establishing more assembly plants around the country and creating franchisee so the product is easily available and widely distributed. Company should train their employee more about logistic to reduce uncertainties.
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Our Experience
We learned about the indirect distribution channel of Mercedes Benz. It uses indirect channels like franchisees, Auto expos to sale there product. We got the practical knowledge and real world scenario about indirect distribution channel prevailing in a Firm. Understand the various aspects ,functions and opportunities of logistics in the company(Mercedes Benz) and evaluate and analyze it carefully. Information's related to inventories ,sales and payment were kept confidential to protect from misuse.
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A warm thank you to Mr. Varun Kumar for his great response and contribution in making our project a fruitful one.

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Refrences
www.mercedes-benz.co.in www.consumerphycologist.com www.lookpdf.com www.scribd.com

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Thank You
Any Questions ??

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