Strategy and targets of
Mercedes-Benz Cars Sales and Marketing
Dr. Joachim Schmidt, September 29, 2010
UBS Paris Auto Show Investor Conference
1. Our current performance
2. Our targets
3. Strategy of MBC Sales and Marketing
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 2
Mercedes Benz Cars:
Continued strong improvement of EBIT over the last quarters
– EBIT in millions of €, return on sales in % –
9,8%
1.376
7,0%
5,3%
3,5%
806
608
355
-340
(3,2%)
Q2
Q3
Q4
Q1
2009
Q2
2010
Strong increase driven by higher sales volume in all regions and especially in China
More favorable product mix and better pricing
Positive exchange rate development and efficiency enhancements
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 3
Mercedes-Benz Passenger Cars with strong growth
rates in retail sales in 2010
2009
2010
+16%
735.400
+24%
+13%
+12%
+15%
+18%
+13%
+17%
+22%
632.700
113.300
109.900
98.500
101.400 100.100
93.100 86.300
80.700
67.00063.300
53.900
JAN
97.700
83.500
72.100
FEB
UBS Paris Auto Show Investor Conference
MAR
APR
MAY
September 29, 2010
JUN
JUL
81.000
66.200
AUG
JAN-AUG
Slide 4
Mercedes-Benz Passenger Cars with strong sales momentum in 2010
- Retail YTD August 2010 Canada +16%
Russia +60%
Western
Europe +1%
Japan +12%
USA +18%
India +81%
China +132%
Rep. Korea
(South) +138%
Brasil +45%
Rep. South Africa +16%
UBS Paris Auto Show Investor Conference
September 29, 2010
Australia/Pacific +26%
Slide 5
Strong growth across modell ranges and excellent modell mix
- Retail YTD August 2010 -
E-Klasse
E-Class sedan
E-Class Coupe
S-Class sedan
136.000 (+52%)
32.700 (+98%)
41.000 (+32%)
C-Class sedan
GLK
GL-Class
161.300 (+9%)
45.900 (+15%)
17.600 (+24%)
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 6
1. Our current performance
2. Our targets
3. Strategy of MBC Sales and Marketing
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 7
Our ambition at Mercedes-Benz Cars:
The most successful car manufacturer in the premium and luxury segment
Mercedes-Benz Passenger Cars*
vehicle sales [million units]
CAGR 6.9%
1.5
1.0
2009
2015
* excludes smart
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 8
1. Our performance
2. Our targets
3. Strategy of MBC Sales and Marketing
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 9
Mercedes-Benz Cars Strategy
The most successful car
company in the premium
and luxury market
Our strategic pillars
Superior Products &
Customer Experience
Profitable
Growth
10%
RoS
constantly
• Constantly leading & profitable large cars
• New attractive compact cars (MB/smart)
• Delightful customer care
Leading Brands
• Brand positioning and claim
Innovation &
Technology Leadership
• Green technology leadership
Global Presence &
Network
Operational Excellence
High Performing,
Inspired People
UBS Paris Auto Show Investor Conference
Current topics
September 29, 2010
• Global footprint
• Cooperations
• Powerful sales & service organization
• Excellence
Slide 10
Mercedes-Benz Cars Sales and Marketing Strategy
Vertrieb
Sales and
und
Marketing
Marketing
MBC
MBC
Product Price Place Promotion People Processes
1 Authentische
Perfectly positioned
Markenbrand and effective marketing
X
products
2 Fascinating
Effektive Marktdurchdringung
X
Bedingungslose
customer
Kundenorientierung
care
X Delightful
Retail network ready
Retailnetz
for the future
X Zukunftsfähiges
6 Efficient,
Effiziente,integrated
integrierteprocesses
Prozesse and systems
X
7 Motivated,
Motivierte, qualified
qualifizierte
Mitarbeiter
X
employees
X Effective market penetration
Profitable growth
UBS Paris Auto Show Investor Conference
Inspired customers: CSI No. 1
September 29, 2010
Slide 11
1. Brand aspiration
The new brand aspiration of Mercedes-Benz:
Our brand star
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 12
1. Brand aspiration
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 13
1. Brand aspiration
Cross Functional Brand Team: Responsible for the roll-out of the
brand positioning across all functions
Cross Functional Brand Team
Sales &
Marketing
R&D
WP9
Aftersales
WP1
WP8
•Operational targets &
measures have been defined
WP2
WP7
Direct implications for
products services etc.
WP3
WP6
• Image study controls efficiency of
measures for respective targets
(brand monitor, market research)
WP4
WP5
Production
Controlling,
IT, HR
UBS Paris Auto Show Investor Conference
•Functional strategies have
been developed per brand
experience
Purchasing
September 29, 2010
Slide 14
1. Brand aspiration
International Brand Campaign:
Print, TV, online and media communications
TVC
Print
Online
PR
www.the-best-or-nothing.com
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 15
2. Effective Marketing
Comprehensive communication activities in 2010 support the three
brand values
Perfection
Fascination
Responsibility
Driver Assistance
Systems Campaign
CLS Campaign
BlueEFFICIENCY Campaign
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 16
2. Effective Marketing
Customers can experience the fascination of the Mercedes-Benz
brand on their iPad
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 17
3. Product portfolio
Examples of fascinating new product highlights
CLS
Shooting Brake
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September 29, 2010
Slide 18
3. Product portfolio
Ambitious CO2 targets for Mercedes-Benz Cars
CO2 fleet average Mercedes-Benz Cars
[in gramms/km]
183
178
173
160
2006
2007
UBS Paris Auto Show Investor Conference
2008
2009
September 29, 2010
<140
95g
(4.0 l/
100km)
MBC target
2012
EU target
2020
Slide 19
3. Product portfolio
Mercedes-Benz Cars aims at leading position with green technologies
Roadmap for sustainable mobility:
Optimization of
combustion engines
C 220 CDI
Further efficiency gains
through hybridization
S 500 Plug-in Hybrid
117 74
grams CO2/km
UBS Paris Auto Show Investor Conference
grams CO2/km
September 29, 2010
Locally emission-free
electric engines
smart electric drive, E-Cell, F-Cell
0
grams CO2/km
Slide 20
3. Product portfolio
Highlights Paris Auto Show:
New concepts for emission free urban mobility
UBS Paris Auto Show Investor Conference
SLS AMG E-CELL
A-Class E-CELL
smart escooter
S250 CDI
September 29, 2010
Slide 21
4. Effective processes
New Sales Organization – „More Customer, less bureaucracy”
More customer
focused organization
in Headquarters and MPC
Stronger focus on integrated
downstream products
Increase
Effectiveness
Increase
Efficiency
New Leadership Modell
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 22
5. Successful dealer network
Mercedes-Benz – “The Best Premium Franchise”
Attractive brand and products
Gain and keep best automotive partners
Sales New
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Sales Used
September 29, 2010
Service and Parts
Financial Services
Slide 23
6. Satisfied customers
Mercedes-Benz with strong improvements in customer
satisfaction in most markets
Customer Satisfaction Ranks
in the Premium Segment1
Sales
2005 → 2009
Further awards for customer satisfaction
Service
2005 → 2009/10
5→1
Germany
3 → 1
5→2
UK
6 → 3
5→2
France
3 → 1
6→1
Italy2)
4 → 3
4→1
Spain2)
2 → 3
3→2
Switzerland2)
4 → 3
5→1
The Netherlands2)
3 → 3
2→1
South Africa2)
4 → 2
3→2
USA
7 → 6
J.D. Power 2010
Initial Quality Study
J.D. Power VOSSSM Germany
No.1 Premium Brand in Service
Satisfaction
J.D. Power CSI France
No.1 Premium Brand
Grand Prix des Marques
Automobiles 2010
No.1 in Sales and After Sales Service
ADAC and auto motor sport
No. 1 in workshop tests with best
reults overall in both tests
1)Source:
NCBS, JDP SSI/CSI, CBS
2) Results 2006 → 2008
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 24
Our ambition at Mercedes-Benz Cars:
The most successful car manufacturer in the premium and luxury segment
Mercedes-Benz Passenger Cars*
vehicle sales [million units]
CAGR 6.9%
1.5
1.0
2009
2015
* excludes smart
UBS Paris Auto Show Investor Conference
September 29, 2010
Slide 25
For the full year 2010 we expect Mercedes-Benz Cars EBIT
of about 4 billion Euros
[EUR billion]
4
1.4
0.8
Q1
UBS Paris Auto Show Investor Conference
Q2
H2
September 29, 2010
FY 2010
Slide 26