1. Daimler-Chrysler Brennan Ott Tim Quick Noah Whitaker Amy Zachery Winter 2007

2. Agenda  Company History  Marketing Mix  Product Line  Competition  Product Development Strategy  Marketing Strategy  POP / POD  CRM  The Future

3. Daimler-Chrysler: The Company  Mission Statement: We intend to excel in everything we do by achieving exceptional results. We aim to create lasting value, and we are working to achieve this goal with all our strength and passion.  Fundamental Values: Passion, Respect, Integrity, Discipline.  Brands: Mercedes, Chrysler, Dodge, Jeep

4. Chrysler: History  Founded in 1925  Creates Plymouth brand and purchased Dodge in 1928  MOPAR introduced in 1930s  Introduced the Hemi in 1951  1960 developed industry standard of uni-body design  Bailed out by US Government in 1971 to avoid bankruptcy  Launched the Minivan in 1983  Merged with Daimler in 1998 to form Daimler-Chrysler  Plymouth phased out in 2001  2007 – Daimler to sell Chrysler???

5. Marketing Mix  Our buyers… and their lifestyles Income, Age, Ethnicity, Life Phase  Be an individual… and be long Greater customization o Design, Interior, Extras Identify with other drivers

6. Marketing Mix Tools Four Ps  Product  Price  Place  Promotion Four Cs  Customer solution  Customer cost  Convenience  Communication

7. Product Line

8. Product Length / Width / Depth Product – Mix - Width Product Line Length SUVsTrucksCrossoverSedanCoupRoadsterMin-vansWagon Chrysler Aspen PT Cruiser300 Crossfire Town and Country PacificaSebring Dodge DurangoRamCaliberCharger ViperCaravanMagnum NitroDakota Avenger Jeep Patriot Liberty Jeep Cherokee Compass Commander Mercedes G Class R ClassC Class CLK ClassSLK Class E Class GL Class E Class CLS ClassSL Class M Class S Class CL Class SLR Class

9. Competition  No. 3 in US market  Small car market  Alternative fuels

10. Product Development Strategy  Small Car Sleek and stylish design Fuel efficient China and European partnerships  Interior Design Stylish appearance Comfort Quality

11. Marketing Strategy  Diffused Preferences Market Baby Boomer & Older Luxury Generation X Generation Y  Selective Specialization Power combined with fuel efficiency Rich and deep interior

12. POP / POD  POP Trucks and SUVs Standard features Customer Service  POD Sleek and stylish designs Hemi (Power) Blue-Tec Diesel fuel innovations

14. CRM  Crafting value proposition and customer loyalty  Mercedes Service for Chrysler Vehicles

15. The Customer Designs the Vehicle  Segmented Marketing: Match product to consumer Custom Vehicles  What car do you drive?  Shift marketing budget to helping dealers  Make the dealership an experience

18. The Future  Efficient and effective to compete in the market Balance marketing mix Introduce compact cars Interior design appeal Add value, reduce costs o Combine Mercedes and Chrysler units o Increase quality for Chrysler Re-invent Jeep line

19. Fantasy Future  Auto Industry Mega Trends: Alternative Fuel Vehicles Product Lifetime Management 1:1 Relationships Unbundling of Services to be Sleek & Profitable Commute Times

20. Fantasy Future Response  The Canvas, or DCX “Me” Factory produced unfinished autos Regional pool yards – reduces inventory True Mass Customization Regional contracted finishers per customer spec. Enjoy your interior Use existing plants & workers instead of closures

21. Fantasy Future Response II  Project Experience – demographic dealerships Dealerships themed to specific experiences Ascribed Lots o Lots are themed to specific age or generational groups, ethnic group, or unique regional identity Achieved Lots o Provides identity and membership to car purchasers o Participation can lead to unique incentives for customization. o Product Life Cycle – “Recustomized Vehicles”

23. CREAMY AND SWEET Then and Now: Time to make DCX Sexy Again