Daimler Ag and Mercedes Benz

Question 1: Identify the global marketing environmental in this case. Show with references to Daimler’s product markets, how it might monitor and meet these environmental challenges in next three years. Mercedes Benz is a German based manufacturer of luxury cars, trucks an coaches and it also world’s oldest automobile company. There are 13 major automobile players in the European automobile industry and outside European giants are Toyota & Nissan. Mercedes Benz has a manufacturing plant in South Africa where they manufactured one third of all passenger cars in EU.

They produce 18. 6 million passenger cars, trucks and buses per annum. Motor manufacturing in EU is a source of worker mobility, social and cultural activity. More than 12 million families depend on automobile employment and 10 million being employed in related sectors like electrics, panel, tyres etc. Mercedes Benz production is now on global basis. Traditionally they operated in the luxury car market segment now they move on to the bigger range of passenger cars. Daimler’s product range includes Mercedes Benz cars(A,B,C,G,GL,CLS E,ML, S,SL,SLK,SLR models, Maybach and Smart.

They have also commercial vehicles, trucks, buses and components. Daimler sold 467,000 heavy, medium and light trucks in 2007. They have also Daimler Financial services. Mercedes Benz active in three forms of motor sport like Formula one, Formula three, and DTM. At 2007 in Frankfurt motor show they showed seven hybrid models including the F700 concept car which combined hybrid drive with innovative Diesotto engine. Daimler is committed to enhancing the quality of life and the environment and societies. Compliance with environmental legislation and regulations is a matter of course for Daimler.

To ensure sustainable development, the Group is also committed to the active and ongoing development of environmental protection, both in production and in the products themselves, in order to further reduce the burden on the environment. They need to address environmental challenge of the future. For monitoring and meeting these environmental challenges they need to commit to the active and ongoing development of environmental protection, both in production and in the products themselves, in order to further reduce the burden on the environment.

They also strive to develop products which are highly responsible to the environment in their respective market segments. They would plan all stages of manufacturing to provide optimal environmental protection. Q 2: a) Describe the basis on which Daimler segments its current markets and suggest alternative bases. b) Conduct a new market opportunity analysis for Daimler’s range of products over the next three years Daimler Product range include Mercedes Benz (A,B,C,G,GL,SLK,CLS E,ML,R,S,SL,SLR). They also have maybach and smart. Traditionally they has operated in the luxury car market segment.

Daimler Chrysler had launched their new super luxury car, the Maybach to much excitement for those that can afford such luxury. The Maybach is the newest addition to the Daimler Chrysler range of car marques, which includes the venerable Mercedes Benz brand. In May 2002, the Maybach went on sale in Europe with two models the Maybach 57 and 62 launched. The Maybach is Daimler Chrysler’s attempt to move into the realm of super luxury car market niche. For super-luxury comes at a hefty price. According to current estimates, worldwide demand for automobiles is likely to grow this year by approximately 2 to 4%.

This growth should be primarily driven by the ongoing expansion of the Chinese market and a moderate increase in demand in the United States. No impetus is to be expected from the Western European market, however. Demand in Japan will probably decrease significantly, with a perceptible negative impact on the growth of the world market. Question 3: With reference to the information available in the case and your observations, identify the social and ethical issues which are impacting on Daimler’s global market operations currently and in the future. How should the company respond to these issues?

Social issues refer to the matters that can be explained only by factors outside an individual’s control and immediate social environment which affect many individuals in a society. Common social issues include poverty, violence, justice, human rights (suppression of), equality (or discrimination), and crime, and usually revolve around conflicting viewpoints and tensions between people who take different stances. Ethical issues refers to a problem or situation that requires a person or organization to choose between alternatives that must be evaluated as right (ethical) or wrong (unethical).

For example, if you are faced with an applicant who is a close friend or family member. If you consider yourself an “equal opportunity employer,” then your ethical obligation is to consider her qualifications against other potential candidates, rather than practice favoritism. In the late 1930’s and in 1955 after a spectator was killed, Mercedes-Benz withdrew itself from motorsport completely. Until the 1980’s, Mercedes-Benz did not return to the world of motorsport. For a certain period of time there out of action due to the social distress they caused.

Now the company should maintain high security and hire extremely talented professional race drivers to avoid this kind of social distress again. Increased demand is coming from China and India, which is a good sign for the industry. But there are some problems. Like, China did not fully implement the WTO commitments across a wide range of areas, causing real concern. China is also creating non-tariff barriers. On top of such restrictions, the eco lobby is busy targeting countries like China and India to cut their carbon dioxide emissions and pollution. In all markets, the anti globalization lobby is omnipresent.