BharatBenz Truck Strategy Analysis report is exclusive detail report. This is the newest product and corporate addition among the Daimler group. It has noted a excellent growth in sale of Medium and Heavy duty trucks after it’s launch. Daimler has introduced this brand especially for the truck segment for Indian and other emerging countries. This analysis gives a detailed descriptive intelligence analysis on the Truck Model wise sales, State wise sales analysis, Truck Segment wise sales, Product position, Pricing strategy analysis & Trend, Production & branding Strategy, Network analysis, Market share of BharatBenz.
It was assumed that Daimler only wanted to target the niche segment when they introduced their premium model, Actros into the Indian Truck market. Another major player in this department was Scania, a global player created by MAN for the new budget segment. India's vast market is dictated by the budget segment and Daimler has rightly realised this potential for incredible growth. Indian market could very well be the biggest market for this group if they pool in their resources wisely, and their main challenge would be to balance the scales of their brand image with indian prices and position. It is very important to have the right product position with balance and market dynamics at BharatBenz.
The company has seen tremendous growth over the years. 2013 registered a whopping 73% increase in sales as compared to the last year, and 2014 saw a 172% incredible increase in sales from the previous year. The sales figure every year prove beyond doubt the giant lies that BharatBenz has thrust forward to achieve more number of sales in India, with their impressive product portfolio.
The Rigid Haulage truck segment of DICV has seen a steady growth in the transition from 2013 to 2014. The Tipper on the other hand has noted a considerable de growth of 40% in sales and has dipped extensively over the same year. Tractor or loang Haulage sales on the other hand have seen a impressive 96% increase leaving everyone mouth-gaping.
The two most targeted and significant regions for truck sales in India have been the southern and western regions. Bharat Benz has targeted the South region and have managed to capture 48% sales in this region. It's incredible success in this region could be attributed to the major fleet owners and decision makers who inhabit this region. This region is also characterized by its flexibility, both in the South and West. People in the North and East regions have been observed to have an open mind towards new brands. The company gained 2% sales in the south and the East, lost another 2% in the West and north.
The 16T truck was not launched initially by the company. Only the 12T was available powered by its 70hp engine and it's payload and application suitability. After the 16T was introduced due to market, dealer and customer demand, sales saw a hike. Kerala and Goa are two major regions of development for this segment.
State wise sales trend showed that BharatBenz has made a strong foothold in Maharashtra. TamilNadu, Karnataka. Regions of South India, Punjab – Haulage market have also shown a positive, impressive growth due to the attractive multi axle tipper market.
Initially, the company targeted it's truck sales only in certain states and regions to ensure proper sales-service. The plan to capture market share has been a goal for the company who have reached there though division of regions zone wise and step wise. Jharkhand, a potential market could be next to capture the market with it's off road tipper. After networking the Dealers in India, the company has also launched its Tractor. Products like the Tipper and LCV were introduced during the beginning of sales as the run in a limited span. The company approached sales wisely with the goal of efficient, quick service.
Daimler has used effective entry strategy into the the Indian Market segment and Product segment. The Company has been seen with such enthusiasm that the BharatBenz truck segment is extending onto the Bus project for budget segment. It’s product positioning and value proposition made it popular and welcoming entry into the Indian commercial vehicle market. Also,DICV started export in a short period of time to neighbouring countries.
Its target customers are the medium & large fleet owners in South India which then extended into West India, North and West India region. South and East India are largest markets for truck Industry.
The heavy duty segment is characterized by it's flagship products, 3123 and 2523. LCV has it's flagship products as 1214 and 1217. Sales of Tipper have dipped by 16% whereas the 12T segment sales have shooted by 1%. Recently launched products like the 4023 and 4928 have also registered impressive growth.
Pricing Strategy:
BharatBenz has launched it's products at a very competitive price. They are a bit higher than those of traditional players like Tata, Ashok Leyland. Their strategy is to give products with additional features at the market price. Discounts are not offered by the company, which has been bombarded by complaints and unhappy customers in the Indian market.
The Company has increased the prices of all it's products launched between 2012 to 2015 by 1 to 2 Lakhs (2.000 to 4.000 Euro).
The most sellable trucks like 2523 (Tipper), 1214B and 1217 have seen a 2 lakh increase in price(4.000 Euro) and sales of other products which needed to take some time to establish were increased by 1 lakh(2.000 Euro).
Dealer Strategy:
The BharatBenz dealer showcases their impressive infrastructure and cleverly planned campus with all facilities made available including driver space just like any other car showroom. There was a time when such a rich dealer network was provided by Mahindra Truck and Bus.
Media Strategy:
At BharatBenz, they strategized by giving proper awareness of it's product through Industry Magazines, newspapers, blogs, Digital plate form etc before launching the vehicle into the market. They did not focus too much on popularity through advertisements, and this decision had a positive impact on potential buyers.
Brand Strategy:
Daimler has launched a new brand in India. It gives a clear message to the market that this is an Indian brand but characterized by Benz quality and standard. It's new logo successfully differs from the Mercedez Benz one. Their campaign and indirect marketing were successful in creating an effective brand image. However some of the Western media criticize this concept to introduce budget truck.
It give preference to public relations rather than paid advertising & promotion. The vendors follow a very unique strategy where DICV signs an agreement with them vendors which is very helpful for its dealers.
