MARKETING PROCESS STUDY AT SUNDARAM MOTORS MERCEDES

BENZ
Report submitted in partial fulfillment of the requirements for the
award of the Degree of

BACHELOR OF COMMERCE
of

By
Samuel.k
16A1C41007

Under the guidance of

Prof.
NEW SHORES INTERNATIONAL COLLEGE
2018–2019

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 DECLARATION

I hereby declare that the internship work entitled “Marketing Study at SUNDARAM
MOTORS MERCEDES BENZ” submitted to the School of Economics and Commerce,
New Shores International College, Bangalore, is a record of an original work done by me
and this project work is submitted in the partial fulfilment of the requirements of for the
award Bachelor’s Degree in Commerce by New Shores International College.

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other university or Institute for the award of any other degree or Diploma
or Certificate.

Place: SUNDARAM MOTORS MERCEDES BENZ,

Bangalore

Date:

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 CERTIFICATE OF ORIGINALITY

Date:

This is to certify that the internship titled “Marketing Study at SUNDARAM MOTORS
MERCEDES BENZ” is an original work of Mr. Samuel .k ; bearing University Register
Number 16A1C41007 and is being submitted in partial fulfillment for the award of the
Bachelor’s Degree in Commerce by New Shores International College. The report has not
been submitted earlier either to this University /Institution for the fulfillment of the
requirement of a course of study.

SIGNATURE OF GUIDE SIGNATURE OF THE COLLEGE HEAD

DATE: DATE:

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 Acknowledgment

First and foremost I sincerely extend my thanks to Sundaram motors Mercedes Benz
for providing opportunity to carry out .My internship project and also helping me in
completing the internship report, bearing in mind

I would like to express my deepest appreciation to all those who provided me the
possibility to complete this report. A special gratitude to Professor Kyathi , whose
contribution in stimulating suggestions and encouragement, helped me to coordinate my
project

Throughout my internship.

Furthermore I would also like to acknowledge with much appreciation to my internal

guide

Now I extend my gratitude and thanks to my institution “NEW SHORES

INTERNATIONAL COLLEGE”

And the teachers for providing this golden opportunity to undergo this wonderful

Internship study to strengthen my confidence and increase my academic profile.

NAME: Samuel.K

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 Table of Contents

Report Structure

CONTENTS

Chapter No. INDEX

1 Introduction

2 Research study

3 Company profile

4 Data analysis and Interpretation

5 Summary of finding, suggestion

6 Learning experience

Conclusion

Bibliography

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 Chapter 1

Introduction

INDUSTRIAL PROFILE / COMPANY PROFILE

Introduction

Sundaram Motors, is a division of T V Sundram Iyengar & Sons Private Limited, and is
an authorized dealer for Honda cars operating as Sundaram Honda.

T V Sundram Iyengar & Sons Private Limited, Madurai, the holding company of the TVS
group, began passenger bus transport operations in 1911. Over the past nine decades, the
TVS group ventured into vehicle sales and service, spare parts distribution, manufacture of
automobile components, two wheelers, computer peripherals including printers, hire
purchase financing, leasing apart from general insurance. The TVS group comprises of 45
companies with over 30,000 employees and a group turnover exceeding US$ 4 billion.

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In 1929, the firm extended its wings as an exclusive dealer at Madurai for General Motors
India Limited. The company set up a business platform for the foreign partner to bring the
world's best cars to the Indian space viz., Chevrolet, Oldsmobile, Pontiac, Buick, Cadillac,
Vauxhall, Opel cars and Bedford commercial vehicles.

After the exit of General Motors from India in 1954, due to import restrictions TVS signed
a dealership agreement with Premier Automobiles Limited, Bombay for selling Fiat,
Plymouth cars and Fargo trucks. The company grew from strength to strength to become
the largest dealer for motor vehicles in South India, establishing a large network of service
workshops which set the benchmark for excellence in customer care.

The group also set up initiatives for the manufacture of automotive components and
established several large companies in partnership with global industrial giants such as
Dunlop, Lucas Industries, Girling and Clayton Dewandre in the early 60's.

The group also diversified into Tyre Retreading and Parcel Service and soon consolidated
its leadership position in these ventures.

In 1945, a vehicle dealership for handling cars and commercial vehicles was set up in
Madras and thus "Sundaram Motors" was born.

Sundaram Motors is a division of TVS & Sons Madurai, Sundaram Motors has been in
the automobile industry for over six decades and has a strong association with reputed
automobile vehicle manufacturers and component suppliers. Sundaram Motors' turnover
exceeds Rs. 1670 crores (USD 397 million) for the year ended March 31, 2009, and is
involved in sales and service of cars, commercial vehicles apart from after market parts
distribution. Sundaram Motors are dealers for Honda, Mercedes Benz and Chevrolet cars
and are one of the largest dealers for Ashok Leyland commercial vehicles in India. The
division has 11 dealerships for cars, 12 dealerships for commercial vehicles and a
network of 29 parts distribution outlets.

Over time, the ambitious expansion of the parts distribution business has firmly established
Sundaram Motors as one of the largest distributors of automobile components

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manufactured by some of the most prominent companies in the automobile ancillary
industry in India. The network caters to over 6000 retailers in the country.

Karl Benz Gottlieb Daimler

Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car,
the Benz Patent Motorwagen, financed by Bertha Benz and patented in January 1886, and
Gottlieb Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the
addition of a petrol engine later that year. The Mercedes automobile was first marketed in
1901 by Daimler-Motoren-Gesellschaft (Daimler Motors Corporation).

Emil Jellinek, an Austrian automobile entrepreneur who worked with DMG, created the
trademark in 1902, naming the 1901 Mercedes 35 hp after his daughter Mercedes
Jellinek. Jellinek was a businessman and marketing strategist who promoted "horseless"
Daimler automobiles among the highest circles of society in his adopted home, which, at
that time, was a meeting place for the "Haute Volée" of France and Europe, especially in
winter. His customers included the Rothschild family and other well-known personalities.
But Jellinek's plans went further: as early as 1901, he was selling Mercedes cars in the
New World as well, including US billionaires Rockefeller, Astor, Morgan and Taylor. At
a race in Nice in 1899, Jellinek drove under the pseudonym "Monsieur Mercédès", a way
of concealing the competitor's real name as was normal in those days. The race ranks as
the hour of birth of the Mercedes-Benz brand. In 1901, the name "Mercedes" was
registered by Daimler-Motoren-Gesellschaft (DMG) worldwide as a protected trademark.
The first Mercedes-Benz brand name vehicles were produced in 1926, following the
merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz company
on 28 June of the same year.

Gottlieb Daimler was born on 17 March 1834 in Schorndorf. After training as a gunsmith
and working in France, he attended the Polytechnic School in Stuttgart from 1857 to
1859. After completing various technical activities in France and England, he started
working as a draftsman in Geislingen in 1862. At the end of 1863, he was appointed

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workshop inspector in a machine tool factory in Reutlingen, where he met Wilhelm
Maybach in 1865.

Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular
during Germany's Nazi period. Adolf Hitler was known to have driven these cars during
his time in power, with bulletproof windshields. Most of the surviving models have been
sold at auctions to private buyers. One of them is currently on display at the War
Museum in Ottawa, Ontario. The pontiff's Popemobile has often been sourced from
Mercedes-Benz. In 1944, 46,000 forced laborers were used in Daimler-Benz's factories to
bolster Nazi war efforts. The company later paid $12 million in reparations to the
laborers' families. Mercedes-Benz has introduced many technological and safety
innovations that later became common in other vehicles. Mercedes-Benz is one of the
best-known and established automotive brands in the world.

Subsidiaries and alliances.

 Mercedes-AMG

Mercedes-AMG became a majority owned division of Mercedes-Benz in

1999. The company was integrated into DaimlerChrysler in 1999, and became
Mercedes-Benz AMG beginning on 1 January 1999.

 Mercedes-Maybach

Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars

division until 2013, when the production stopped due to poor sales volumes. It
now exists under the Mercedes-Maybach name, with the models being ultra-
luxury versions of Mercedes cars, such as the 2016 Mercedes-Maybach S600.

Models

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Mercedes-Benz offers a full range of passenger, light commercial and heavy commercial
equipment. Vehicles are manufactured in multiple countries worldwide. The Smart
marque of city cars are also produced by Daimler AG.

 A-Class – Subcompact luxury Hatchback / Sedan/Saloon

 B-Class – Subcompact luxury Multi Purpose Vehicle (MPV)
 C-Class – Compact executive Sedan/Saloon, Estate, Coupé and Cabriolet
 CLA-Class – Subcompact luxury 4 Door Coupé and Estate
 CLS-Class – Mid-size luxury 4 Door Coupé and Estate
 E-Class – Executive Sedan/Saloon, Estate, Coupé and Cabriolet
 G-Class – Mid-size luxury Sports Utility Vehicle (SUV)
 GLA-Class – Subcompact luxury Sports Utility Vehicle (SUV)
 GLC-Class – Compact luxury Sports Utility Vehicle (SUV)
 GLE-Class – Mid-size luxury Sports Utility Vehicle (SUV)
 GLS-Class – Full-size luxury Sports Utility Vehicle (SUV)
 S-Class – Full-size luxury Sedan/Saloon, Coupé & Cabriolet
 SL-Class – Grand Tourer
 SLC-Class – Roadster
 V-Class – Multi Purpose Vehicle (MPV)/ Van
 AMG GT – Sports car
 X-Class - Luxury Pickup Truck

CHAPTER 2

RESEARCH STUDY

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 Title of the study

The study is done so that we can get an insight of what the marketing is all about, the
study also gives us a strong practical knowledge background about the service and the
marketing behavior

Learning how it works. Marketing behavior refers to how people build a network within
the groups. This study adds value to create more efficient business organizations and also
helps in achieving certain objectives by interacting and rendering services to the
community, this study also helps in gaining important experience by working with
diverse people.

The central idea of the study of marketing behavior is that a scientific approach can be
applied to the management of workers

The study helps build and encourage to give a practical knowledge to the study. .

Objectives of the study

To study the nature of the industry and understand it’s functions.

 To analyze the strengths and weakness of the company.

 To study the company and its existence in the society.
 To study and analyze the various departments within the company.
 To study the company structure of SUNDARAM MOTORS MERCEDES BENZ.

Scope of the study

 The study mainly focuses at understanding the company’s establishment
And it’s profile.
 It also give an insight to marketing process, and various other
Departmental study.
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 The study also helps in understanding how the company projects it’s goals
And future achievements.

Methodology of the Study

Methodology of study is the process by which we tries to extract the necessary

Information which is required for the internship program,
To evaluate and study at SUNDARAM MOTORS MERCEDES BENZ I resorted to
numerous phases, firstly I executed a primary research followed by secondary research

• Source of data:-

Data is collected both from primary and secondary sources.

 Primary data

This data is the first-hand information collected by various means by the

Investigator. In order to acquire these details the investigator had to speak to
People and communicate with them face to face or either through telephones
Or email. This source of information is mostly accurate if the respondents have
Given honest information.

 Secondary data

For this study the investigator had to rely on sources like the company website
And app, reports, journals, newspapers, magazines etc. these can be relied on
To the extent of the authorized published sources.
This study does not just consist of these two sources primary data and
Secondary data it also includes the knowledge and understandings of the
Investigator. The investigator has arrived at his own assumptions and
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 Conclusions with the available data.

Limitations to the study

 Distance was a constraint in the study.

 with inter or intra organization is not possible to use ratios,

Trends comparison methods.

 Time was a constraint in the study.

Significance

Internship is considered as the first ladder to success. During an internship the

Student can build a good working network. Skill is imparted to a student. The

Company exposure allows to enhance their own knowledge in the specific field. In

Undergoing an intensive internship program boots the self-confidence of students

And motivates them towards facing big opportunities in the future. Some of the

Significance of internship study are as follows;

 Creates real working experience

 Creates wider job opportunities
 Creates time management

CHAPTER-3

COMPANY PROFILE

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Type

Subsidiary

Nature

Automobile

Product/Service Profile

In 2016, Mercedes-Benz's growth strategy for the year will revolve around the slogan
"Winning with Mercedes-Benz". In the Jan-December 2015 period Mercedes-Benz India
registered a historic 32% year-on-year growth by selling 13502 units. For the third
consecutive year, Mercedes-Benz India has witnessed a double digit growth. Mercedes-
Benz to launch 12 models and 10 new outlets in 2016

Mercedes-Benz India currently has the widest network reach for any luxury car maker in
India: in 40 cities with 83 outlets. Mercedes-Benz also inaugurated in three AMG
Performance Centers (APC) in Delhi, Bangalore & Mumbai in 2014 and added two more
APCs in 2015 in Hyderabad and Pune and two more APCs in 2017 in Chennai and
Cochin. These APCs provide an exclusive AMG brand experience to the customers and
enthusiasts

Competitors

Audi TT/TTS Roadster

Audi R8

BMW 6 Series facelift

BMW X5 Plug-In Hybrid

Jaguar XF

Jaguar F-Type 4×4

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 Maserati Ghibli diesel (with more power)

Functional chart

Future prospects

Mercedes-Benz has the ambition of becoming the world’s largest luxury automaker, by
the year 2020, when it plans to sell 2.7-million units. Last year they sold a total of 1.26-
million cars, and came second to BMW, by a very small margin - 120,000 cars

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 CHAPTER-04
DATA ANALYSIS AND INTERPRETATION

Five Forces Model,

Porter's five forces analysis is a framework developed in 1979 by Michael E. Porter

which is based on the paradigm structure–conduct–performance and describes 5 structure
units inherent for each industry. Porter's five forces analysis is used for understanding the
industry's structure, for assessing and analysis the competitiveness, for developing
business strategy, for building the competitive advantage and long-term profitability of
the product.

Porter’s five forces analysis is actively used to identify the market attractiveness and
potential profitability of new products and services, for determining competitive intensity
and areas of strength, and helps companies to improve weaknesses and become more
profitable.

Fig 2.4

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SWOT ANALYSIS

Strengths

 High TOMA: Mercedes is a well-established brand & is part of the “German

Big 3” luxury automakers, along with Audi and BMW, which are the best-
selling luxury automakers in the world. Mercedes focuses its sponsorship
spending on events that attract a well-heeled crowd. Its three pillars are golf,
tennis and New York’s Fashion Week. Mercedes won its first Constructors’
Championship as the top team in F1 in 2014.
 Manufacturing facilities worldwide: It has manufacturing facilities across 6
continents and in 26 countries including both for passenger cars & buses which
is helping them to keep their operational cost low & thereby increase their
profit.

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  Continuous product innovation: Daimler parent company of Mercedes has
always been known for its technological advancement right from introduction
of internal combustion engine in 1886 to “Pre-safe” technology in 2013,
Company has travelled far to establish itself in the premium passenger
car/trucks segment. Mercedesis concerned about safety features of the vehicle.
 Financial stability: Strong financial position of the parent company Daimler
which has several other world renowned brands is helping the group companies
in minimizing their operational cost by using shared resources.
 Strong hold in the developing nations: Premium automobile players like
AUDI, BMW etc. who are excelling in the developed economies are being
trailed by Mercedes in developing nations like India. Mercedes is focused on
becoming No.1 player in developing markets & that’s what driving their
growth.
 Product portfolio: Mercedes have strong product portfolio ranging from sedan
to SUV which is helping them to compete with other players in the market.

Weakness

 Expensive After sales service & maintenance: Servicing cost is one of the
important deciding factors which ever vehicle you are planning to buy.
Mercedes servicing cost is high as compared to other players in the same
segment.
 Conflicting goals of the group companies: It may happen that Daimler itself
being such a big group can fall prey of conflicting objectives of the group
companies which may affect its individual brand.
 Distribution is stunted – Although Mercedes could expand strongly, however,
it is found to have a stunted growth because it keeps distribution of its vehicle
very much exclusive, which affects its supply and therefore its brand equity.

Opportunity

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  Growth shifting to Asian markets: Although American & European market
is the pulse of this Industry, but the focus is shifting to developing markets like
China, India & other Asian nations because of rise in disposable income,
changing lifestyle & stable economic conditions.
 Increase in demand of premium vehicles: Companies like VOLVO, Audi,
BMW etc. are betting high & are targeting the developing nations due to
increase in demand of Luxury public transportation system.
 Strategic Alliances: This can prove smart strategy for Automobile companies.
By using specialized capabilities & partnering with other company they can
differentiate their offerings.
 Growing Automobile industry: Automobiles represent freedom and
economic growth. Automobiles allow people to live, work and play in ways
that were unimaginable a century ago. Automobiles provide access to markets,
to doctors, to jobs. Nearly every trip ends with either an economic transaction
or some other benefit to the quality of life.
 Technological advancement: Developing fuel efficient futuristic technology
& hybrid cars can help Mercedes in emerging as a market leader globally.

Threats

 Intense Competition from other players in the segment: Presence

of players such as AUDI, BMW, Volvo etc. who are not leaving any stone
unturned to emerge as a global player & leader in most of the markets.
 Volatility in the fuel Prices: At least for the passenger segment fluctuations in
the fuel prices remains the determining factor for its growth. Also government
regulations relating the use of alternative fuels like CNG. Shell gas is also
affecting the inventories.

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  Sluggish Economy: Macroeconomic uncertainty, Recession, un-employment
etc. are the economic indicators which will daunt the automobile industry for a
long period of time.
 High fixed cost and investment in R & D: Due to the fact that mature markets
are already overcrowded, Industry is shifting towards emerging markets by
building facilities, R & D centers but benefit of these decisions is yet to be
capitalized.
 Government Regulations: Government policies like reduction in global
warming by discouraging the use of personal transportation, reducing the road
permit validity, volatility in fuel prices, restricting the entry of outside state
vehicles are some of the policies/regulation which are already been
implemented in respective regions in the world and is affecting the sector by &
large.

MCKINSEY’S SEVEN S MODELS

Introduction

McKinney’s of an company is an American worldwide management consulting firm. It

conducts qualitative and quantitative analysis to evaluate management decisions across the
public and private sectors. McKinsey publishes in since 1964, funds the McKinsey Global
Institute research organization, publishes reports on management topics, and has authored
many influential books on management. Its practices of confidentiality, influence on
business practices, and corporate culture have experienced a polarizing reception.

McKinsey was founded in 1926 by James O McKinney in order to apply accounting

principles to management. McKinsey died in 1937, and the firm was restructured several
times, with the modern-day McKinsey & Company emerging in 1939. Marvin Bower is
credited with establishing McKinsey's culture and practices in the 1930s based on the
principles he experienced as a lawyer. The firm developed an "up or out" policy, where

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consultants who are not promoted are asked to leave. McKinsey was the first management
consultancy to hire recent college graduates, rather than experienced managers.

1. Hard Elements

 Strategy

The direction and scope of MERCEDES BENZ over the long term.

 Structure

The basic Organization of MERCEDES BENZ. Its departments, reporting lines,

areas of expertise and responsibility.

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  System

Formal and informal Procedures that govern everyday activity, covering everything
from management information system, through to the systems at the time point of contact
with the customer.

2. The Soft S’s

 Skills
The capabilities and competencies that exist within the Company. What it does best.

 Shared Values
The values and beliefs of MERCEDES BENZ Ultimately they guide employees
towards valued behavior.

 Staff
MERCEDES BENZ resources and how they are developed, trained and motivated.

 Style
The leadership approach of top management and the company overall operating
approach.

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 CHAPTER-05
SUMMARY OF FINIDING, SUGGESTION

SUMMARY OF FINDING

During my engagement at MERCEDES BENZ, I came across a few specific aspects of

materiality which the company can work on or perhaps better.

1. Marketing

Finding

The company is not extensively marketing as other peers it should wield social media like
a weapon and penetrate forwards that is use blogs, sites like Facebook, and apps like
Instagram.

Its competitors’ are firing all cylinders, thus

SUNDARAM MOTORS MERCEDES BENZ should wake up before it’s too late.

SUGESSTION AND RECOMMENDATION

 SUNDARAM MOTORS MERCEDES BENZ should work on marketing process

Blogging has its unlimited boons, these set of chartered individuals know how to influence
people by social media, and thus
 SUNDARAM MOTORS MERCEDES BENZ needs to rope such people to blog about
them to make the brand and its product the talk of the town.
 Video streaming should be done on various social media,
 Remove communication barriers and misconceptions between the

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 Customers and distributors by effective communication with institutions
Time to time.
 To improve their service.
 Take corrective measures to overcome the problems of late or delay supply
Of products.
 They should give the proper feedback.
 They should carryout promotional activities properly or effectively.

CHAPTER-6
LEARNING EXPERIENCE

 An Marketing study at SUNDARAM MOTORS MERCEDES BENZ as an

internship during the B.COM course of New Shores International College has
really enabled me to understand the organizational structure of the corporate
world to an extent and the ways and means how it functions.
 In my internship period at SUNDARAM MOTORS MERCEDES BENZ I
studied and learned many things carried out in the company. This internship
helped me in gaining knowledge about the work and production carried out in
the Company. The company has well established work mission for the
familiar of workers which help the workers to be attached to the company
which increases their productivity and overall profit of the company.

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  There was good reaction and co-operation by the employees of the company.
They helped me in collecting information regarding different department.
 I got a clear picture about company work carried on and how the work is
allotted and how it is carried out the duties and responsibilities of employees
in the company. I observed the working technique that are study in subject
being implemented and practiced in company like recruitment process,
welfare facility, training techniques etc.

Conclusion

After going thick on the thing, now time is to make a complete picture. While
Making a product a SKU (stock keeping unit) of the shop retailers think about the
GMROI (Gross Margin on Investment) and they promote the brand which provide
The highest. They expect return in the form of profit margin, company schemes,
Window display and references. Among these, company schemes makes
The differences and are the highest source of motivation then after profit margin.
Retailing demands a constant push from the company.
Marketer needs to use advertising and brand building strategies to address the
Discerning buyers and retail push to in different buyers. The manufacturer should
Understand consumer behavior because retailer can’t help quality and price.

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 . Its portfolio includes various types of things. The company primarily operates around the
world. It is headquartered Stuttgart, Germany and employed many people.
The company has a strong orientation towards product innovation.

BIBLIOGRAPHY

Major information for this report, the primary data was sourced from the company
internally

 Interaction with stakeholders

 Company reports.
 Ecommerce portals
 All pictures and financial information were sourced from the organization.

 Website :- www.sundarammotors.in
 Wikipedia : Mercedes-Benz Indias

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