Mercedes-Benz India plans foray into MUV segment

Lalita Srinivasan & Sanjay Jog

Mumbai, May 17: MERCEDES-Benz India Ltd (MBIL) proposes to foray into multi-utility vehicle (MUV) segment and launch its A-Class and M-Class models at cheaper price points (less than Rs 20 lakh) within a year. To promote its existing range of cars, the company has earmarked a Rs 7 crore communication package for the calender year 2001.

Company managing director (MD) Jurgen Ziegler, in an exclusive interview with The Financial Express, on Thursday said that it has already initiated the feasibility studies for rolling out MUV and models at cheaper price points. “Today in the luxury segment, we are the first automobile company to offer three products in the range of from Rs 20-50 lakh. You can say we have literally built this segment with our products,” he added.

According to Mr Ziegler, the company hopes to make India as a major hub for the manufacturing of world class range of Mercedes-Benz cars and said that in a bid to enhance its presence in India, MBIL plans to step up its brand building exercise in full steam. “We have earmarked a budget of Rs 7 crore to promote our entire range for this calender year. The communication package will include advertising, direct marketing and public relations,” he added.

To support the communication package, the company proposes to host ground promotions which include cultural evenings, chess tournaments and festivals.

As for the rationale behind the new launch of C-Class, Mr Ziegler informed that the company has received a very good feedback from its European customers. The company launched the C-Class model in Europe only last year.

To announce the launch C-Class, the company has taken the print route and is in the process of rolling out an aggressive print campaign which includes six press advertisements. Created by RK Swamy\BBDO, the campaign drives home the benefits of the new model in its communications.

As of now, the company has no plans to launch television commercials (TVC) — because the company’s product range is positioned in the top luxury segment, Mr Ziegler said.

Contrary to media reports, the company has no plans to opt for celebrity endorsement route. “Our products are ambassadors for promotions. Globally we observe a general rule — we do not opt for celebrity endorsement route to promote any of our products,” he said.

In addition to mass media advertising, the company would also focus on customer relationship management (CRM) initiatives to promote the C-Class which is positioned for the younger generation and for executives.

The MD said that at present, MBIL has 11 dealerships and 13 workshops in major metros across the country. The company has no immediate plans to increase the number of dealerships. “However, we have plans to upgrade skills of our service outlets. We do have plans to launch additional service outlets in India,” he added.
On indigenisation, Mr Ziegler said that the company has achieved an indigenisation level of 50 per cent while it is 70 per cent for E-Class and 20 per cent for S-Class models.

According to Mr Ziegler, the company has launched the individualisation programme which offers greater choice to its customers and facilitates customer specific value additions to its products.
“Our customers will now

have the option of customising their Mercedes-Benz cars at our authorised service stations,” he added. Mr Ziegler said that the C-Class is more flamboyant, youthful, suitable for city driving, a family car, preferably owner driven. “Yet a Mercedes-Benz.”

However, the E-Class would cater to individuals with a greater need for attention. The accent is purely on luxury, comfort, space and greater engine power. “Our experience is that the E-Class is essentially a chauffeur driven car,” he observed.