Saturday, January 16, 2010

Don’t forget the seat belt!

Small surprise that the CEO is like a man possessed, packing in nearly 14 hours of work in a day. He starts his day early (at 5am) and after finishing his hour long exercise regimen, he gets on to work, taking only five minutes off for lunch in between. Given that the luxury car market is expected to grow even higher than the average growth of the passenger car market (around 8-10%) in India, his agenda perhaps would be to corner more market share for Mercedes. Aulbur even seems to have a plan to make reality meet his expectations. Apart from the new E-Class that Mercedes plans to roll out over the next couple of months in India, in a bid to expand its market, the company also launched the improved version of its M-Class SUV in March this year. And to hit back at rivals, Mercedes has kept the pricing of the new model almost similar to the old one, despite added features. Combined with the volume puller C-Class (that accounts for nearly 40% of Mercedes’ total sales in India), the company expects to stay on top of market developments. Hopes are particularly high with the coming festive season. If Mercedes manages to register similar sales figures (banking on the new E-class) as in last fiscal, the going will be smooth for the company.

Importantly, Aulbur is taking a leaf out of his competition’s winning strategies. Despite its late entry, BMW’s dream run in the Indian luxury car market in large parts stems from creating a large network of truly luxurious dealerships, benchmarked to BMW’s global network. An average BMW dealership in India today almost offers a similar retail experience as in Munich or Tokyo. Aulbur is moving along a similar path, with plans to open more showrooms in metros as well as in the Tier-II and III cities to “offer a better retail experience to consumers.” Along with associates, the company is now investing close to Rs.150 crore in its distribution network “to ensure that the Mercedes Benz retail experience is the best in the country,” says Aulbur. Land has already been purchased across the country to build these new showrooms. The show of muscle does not stop there. In a bid to win back its undisputed top slot in India’s luxury automobile segment, the plan is also to ramp up its Bangalore-based R&D facility significantly. The company has already announced that head count is set to go up four fold in the facility.

From new launches, retail reach, pricing controls to unabashedly adopting the winning strategies of its rivals, Aulbur is clearly leaving no room for a mess up in the Indian market. Sure, there is professional pride involved, but there’s also a personal connection. Married to Radha Srinivasan since 1997 and a self-proclaimed follower of democracy, India is second home for Aulbur. And isn’t the taste of success on your home turf always sweeter?

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2010.

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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