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Distribution expansion for plaza LLC : a report discussing the expansion strategy and plan for entry into new counrty (INDIA)

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essey Distribution expansion for plaza LLC : a report discussing the expansion strategy and plan for entry into new counrty (INDIA)

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Executive Summary:

We would like to present you the report made by our team. The research focuses on the next main points and therefore can be divided into three parts.

-First of all, we analyzed the retailer’s evolution over the past three years. We thoroughly studied the history of the company from the beginning but in our report we emphasized the company’s growth and recent successes and took into account the factors facilitating such impressive results.

- Then we analyzed the current distribution strategy of the brand including the recent economic situation in the country, methods used by the company and the efficiency of these methods. Such profound analysis allowed us to determine the target for the next five years.

- In the third part of our report we made a list of recommendations which from our point of view will be very effective and allow company to reach the key target and enter the new market-India.

Recommendations and Conclusion

Taking into account the previous parts of the research we formulated a five-year growth strategy for the brand. The strategy is divided into two parts: the first part focuses on expansion in the region and in the second one we evaluated the possibilities of expansion in India. Our plans are rather ambitious but we will try to persuade the Board of directors that such expansion is possible in the next few years.

What about the current position in the region, the company will continue to strengthen its market position. In 2017 several new models will be launched: renewed E-coupe, renewed GLA, and renewed S-class. Our strategy ensures that Mercedes-Benz cars will continue to play the leading part in the premium segment. Also in 2018 we plan to launch a new branch – vans department. Now there are no competitors in the region: only Volvo and Volkswagen play in the market. But they don’t belong to premium segment so we can say again that Plaza LLC is free from competition. Mercedes-Benz Vans aim to achieve further profitable growth.

To save the leader position under the difficult economic situation we propose to adapt management system of Plaza LLC to be able to react quickly to market fluctuations. This point implies also the launch of a new position: we suggest hiring a risk-manager. This person will calculate risks of business decisions.

To sum up we gained all recommendations in table 3.



To gain the leading part in the segment, profitable growth

Launch of new models, launch of new department, more attention to economic situation

Table 3. Recommendation for expansion in the region

Moreover, in our opinion it is time to build business in Asia. India seems ideal market for the company for several reasons:

According to official sources the 2016 year was the best year in sales for Mercedes-Benz in India.

The company recorded its best year (13558 units) and best quarter (3622 units).

Customers in India expect from a car appealing design and outstanding quality and Plaza LLC is able to suggest them the ideal product. Besides, Daimler has a good image in the country: in March 2017 the company planted 50000 native trees in the country.

According to statistics the highest selling car models are C-class and E-class. What about the SUV-segment, it also remains a steady contributor to volumes in the quarter.

So our initiative in 2017 will involve the introduction of the company in India with 4 main models: C-class, E-class, GLC-class and CLA-class. The choice of the models is based on statistics: C-class and E-class are best-sellers, CLA models will be interesting for young and active people, GLC-class registered the 13 % growth in the last quarter of 2016. Besides, a new long wheelbase version of e-class will be produced in India.

To sum up, we suggest that Plaza LLC should focus on four main points:

  • To Strengthen the core business;
  • To grow globally
  • To gain leadership in technology
  • To gain leadership in client’s service
  • To push digitalization

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