Eric Andrzejewski 830728 – P173 Svenja Friederike Barring 870725 – P164

Myriam Lahmidi 880921 – P488 Núria Moratal Ferrando 880311 – P189

Jordi Pons Triay 880904 – P174

INTERNATIONAL BUSINESS

Agenda

1. The Smart Company

1.1 Smart History / Facts and figures 1.2 Why we chose Smart 2. Marketing Analysis / Marketing Mix

2.1 Product 2.2 Price 2.3 Place 2.4 Promotion 3. International Expansion

3.1 Product development 3.2 Entry strategy 3.3 Cultural aspects

4. Conclusion / SWOT-Analysis

4.1 Strengths and weaknesses 4.2 Business opportunities and risks

1. The Smart Company

1.1 Smart History / Facts and figures

- Began in 1993 in Germany

- Joint venture between Daimler-Benz and Swiss watchmaker Swatch

‘‘S’’ for Swatch, ‘‘M’’ for Mercedes, ‘‘art’’ for the arty combo

- 1998: Entered the European market

- 2008: Launched in the USA

- 2008 , 10th anniversary: 1 million cars sold in 37 countries in 5 continents

- 2010: USA 3rd biggest market for Smart after Germany and Italy

1. The Smart Company

1.2 Why we chose Smart

An example of nowadays international business:

• Strategic considerations and Industrial development:

Joint venture, “alliance capitalism” (partnership to add value to the product, sharing resources, services and knowledge) 

• Global organization:

Standardized production processes, services and distribution places (Smart Centers)Keys of success in global market: efficiency in production, distribution, marketing, management, prices • Market Integration and Cultural

Aspect:

Market adaptations and integration in Europe, North America and AsiaPromotion adapted to cultural trends

2. Marketing Analysis / Marketing Mix

2.1 Product

Smart For TwoSmart Brabus For TwoSmart For Two CabrioletSmart CrossbladeSmart K

2.2 Price

Europe: from 9990€ to 24.200€

USA: from 12.000$ to 21.000$

2.3 Place

Smart CentersDaimler locations: Shop-in-Shop conceptAuthorized retailers

2. Marketing Analysis / Marketing Mix

2.4 Promotion

Marketing Communication Mix“MarComs”

Holistic media approach:

•Above the line Medias: Press, TV, radio, Internet, cinema…

•http://www.wat.tv/video/publicite-smart-lv0r_2fgwr_.html

•http://www.dailymotion.com/video/xf0cce_pub-smart-fortwo-2010_auto

•http://www.smartdiy.com.cn/#/diy/?id=7

•Below the line Medias: Sales promotion, sponsorship, events…

3. International Expansion

3.1 Product development

• Extension of the product line

3.2 Entry strategy

• joint venture between Smart USA and Nissan

• to extend their market segments and to compete on new markets

3.3 Cultural aspects

• Special adaptations: car resized in USA and Japan

Strengths

Merger of two big brands: Mercedes and Swatch (benefits from their brand awareness)

Experience in the European and US market

Unique style: Smart Cars are easily identified (compact size, Smart look…)

Distribution concept efficiency:

A 360° marketing campaign /

74 Smart dealerships across the US / skimming price strategy

Pioneering spirit and product development: Production of the Smart For Two electric drive, Creation of a new model of For Five (only for the

US market in 2011), creation of a new concept of electric scooter.

Weaknesses

Not that safe in comparison to other vehicles on the road

High price for a small car

Failure or the Smart roadster

in 2009, Smart recorded a

decline in sales of 40% compared to 2008, with

14.600 units against

24.600

4. Conclusion / SWOT-Analysis

Opportunities

The Smart products have few direct competitors

Traffic and parking problems in big cities: Small cars are preferred in urban centers

Most of sales made in urban centers: Possibility to reach a lot of customers

More and more agreements with cities administrations making Smart cars more attractive:

Parking price is cheaper for Smart cars in Paris

Global economy in recession: People are not willing to spend large among of money on over-priced large vehicles

European culture is more accepting micro-compact cars

Americans are looking for Smart celebrity status

Spread of the ecological awareness: More people are interested in buying “clean” and electric cars.

Threats

SUVs and light trucks are top sellers in the US market

A lot of alternative vehicles

Car sales in recession with global crisis

Strong Competitors: Mini, Toyota Prius but also copy of the Smart car concept in China

4. Conclusion / SWOT-Analysis

Thank you!

Questions?