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I INTRODUCTION
Daimler (Mercedes Benz) and BMW are two name that comes to mind when one think of luxury
car. There is no doubt that they dominate the market for luxury car segment, providing various
options and categories of car. Mercedes providing C, E and S class, etc. and BMW providing 3, 5
and 7 series cars. They have strategically placed cars into these categories to make it easy for
customers to decide which one is best for them. In this project, I have tried to find out which one
of them is better in terms of profitability, market share, Sales volume, customer satisfaction, etc.

Daimler AG (Mercedes Benz)
Daimler AG is a German multinational automotive corporation. Daimler AG is headquartered in
Stuttgart, Baden-Wrttemberg, Germany. By unit sales, it is the thirteenth-largest car
manufacturer and second-largest truck manufacturer in the world. In addition to automobiles,
Daimler manufactures buses and provides financial services through its Daimler Financial
Services arm.
As of 2013, Daimler owns or has shares in a number of car, bus and truck marques including
Mercedes-Benz, Mercedes-AMG, Smart Automobile, Freightliner, Western Star, Thomas Built
Buses, Setra, BharatBenz, Mitsubishi Fuso, as well as shares in Denza, KAMAZ, Beijing
Automotive Group, Tesla Motors, and Renault-Nissan Alliance. At the end of 2012, the
company closed the Maybach marque.
Daimler AG is a German manufacturer of automobiles, motor vehicles, and engines, which dates
back more than a century.
An Agreement of Mutual Interest was signed on 1 May 1924 between Benz & Cie (founded
1883) of Karl Benz and Daimler Motoren Gesellschaft (founded 1890) of Gottlieb Daimler and
Wilhelm Maybach. Both companies continued to manufacture their separate automobile and
internal combustion engine brands until, on 28 June 1926, when Benz & Cie. and Daimler
Motoren Gesellschaft AG formally mergedbecoming Daimler-Benz AGand agreed that,
thereafter, all of the factories would use the brand name of Mercedes-Benz on their automobiles.
In 1998, Daimler-Benz and Chrysler Corporation announced the world's largest cross-border
deal ever, valued at US$38billion, and the resulting change in company name to
"DaimlerChrysler AG". In 2007, when the Chrysler group was sold off to Cerberus Capital
Management, the name of the parent company was changed to simply "Daimler AG".
Mercedes-Benz is a German automobile manufacturer, a multinational division of the German
manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks.
The headquarters of Mercedes-Benz is in Stuttgart, Baden-Wrttemberg, Germany.
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The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler-Motoren-
Gesellschaft's 1901 Mercedes and to Karl Benz's 1886 Benz Patent Motorwagen, which is
widely regarded as the first automobile. Mercedes-Benz's slogan is "Das Beste oder nichts"
(English: "The best or nothing"). Mercedes-Benz is part of the "German Big 3" luxury
automakers, along with Audi and BMW, which are the best selling luxury automakers in the
world.
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car, the Benz
Patent Motorwagen, financed by Bertha Benz and patented in January 1886, and Gottlieb
Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol
engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-
Motoren-Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926,
following the merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz
company. Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular
during Germany's Nazi period. Adolf Hitler was known to have driven these cars during his time
in power, with bulletproof windshields. Most of the surviving models have been sold at auctions
to private buyers. One of them is currently on display at the War Museum in Ottawa, Ontario.
Mercedes-Benz has introduced many technological and safety innovations that later became
common in other vehicles. Mercedes-Benz is one of the best known and established automotive
brands in the world, and is also one of the world's oldest automotive brand still in existence
today in 2014, having produced the first petrol-powered car.
Subsidiaries and alliances:
As part of the Daimler AG company, the Mercedes-Benz Cars division includes Mercedes-Benz
and Smart car production.
Mercedes-AMG
Mercedes-AMG became a majority owned division of Mercedes-Benz in 1999. The company
was integrated into DaimlerChrysler in 1999, and became Mercedes-Benz AMG beginning on 1
January 1999.
McLaren Mercedes
Between 2003 and 2009, Mercedes-Benz produced a limited-production sports car with McLaren
Cars. The resulting Mclaren Mercedes SLR was an extension of the collaboration in which
Mercedes engines are used by the Team McLaren-Mercedes Formula One racing team, which
was then part owned by Mercedes. The partnership with McLaren ended following the decision
to market McLaren road cars.

Maybach
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Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars division until 2013, when
the production stopped due to poor sales volumes.

BMW AG
Bayerische Motoren Werke Aktiengesellschaft (BMW AG), which is based in Munich,
Germany, is the parent company of the BMW Group. The primary business object of the BMW
Group is the development, manufacture and sale of engines as well as all vehicles equipped with
engines. The BMW Group is subdivided into the Automotive, Motorcycles, Financial Services
and Other Entities segments (the latter primarily comprising holding companies and Group
financing companies).
Bayerische Motoren Werke G. m. b. H. came into being in 1917. Having been originally founded
in 1916 as Bayerische Flugzeugwerke AG (BFW), it became Bayerische Motoren Werke
Aktiengesellschaft (BMW AG) in 1918. The BMW Group comprises BMW AG and all
subsidiaries, which BMW AG either directly or indirectly has the power to control. BMW
AG is also responsible for managing the BMW Group. General conditions on the worlds
automobile and motorcycle markets (such as the competitive situation, government policies,
statutory regulations), underlying trends within society as well as changes in raw materials
prices, exchange rates and interest rates are some of the major external factors that exert an
influence over our business.
The BMW Group is one of the most successful makers of cars and motorcycles worldwide and
among the largest industrial companies in Germany. With BMW, MINI and Rolls-Royce, the
BMW Group owns three of the strongest premium brands in the automotive industry. The
vehicles it manufactures set the highest standards in terms of aesthetics, dynamics, technology
and quality, a fact borne out by the BMW Groups leading position in engineering and
innovation. In addition to its strong position in the motorcycles market, the BMW Group also
offers its customers a successful range of financial services. In recent years, the Group has also
established itself as a leading provider of premium services for individual mobility. At the end of
the reporting period, the BMW Group had a worldwide workforce of 110,351 employees.
Four straight record years for the BMW Group. For years, we have stood at the pinnacle of the
worlds automotive premium segment. Even during the 2008 / 2009 global financial and
economic crisis, we reported a profit and paid a dividend. Since then, the BMW Group has
enjoyed four consecutive record years. Investors in our Company can look forward to long-term
value enhancement and our shareholders can rely on us to achieve profitable growth even in
the face of high volatility and challenges in our business environment. For this reason, we
continue to invest in our future, in all areas of individual mobility. For us as a premium
manufacturer, innovation and entrepreneurial spirit are key towards growing and creating new
trends.
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The BMW Group operates on a global scale and is represented in more than 140 countries. Our
research and innovation network is spread over twelve locations in five countries. At 31
December 2013 the production network comprised a total of 28 locations in 13 countries.
BMW 3 Series and 4 Series models as well as petrol and diesel engines are manufactured at the
BMW plant in Munich, next to the BMW Groups headquarters. Models of the BMW 1 Series, 3
Series and 4 Series as well as the Z4 Roadster roll off the production lines at the Regensburg
plant. The largest BMW plant is located in Dingolfing, where we build the BMW 3 Series Gran
Turismo, models of the BMW 5, 6 and 7 Series and hybrid BMW 5 and 7 Series vehicles.
Chassis and drive components are also manufactured at this plant. The BMW Leipzig plants
production range covers models of the BMW 1 and 2 Series, the BMW X1 and the electrically
powered BMW i3 as well as the hybrid sportscar BMW i8 (from 2014). The BMW 3 Series
Sedan is manufactured at the plant in Rosslyn (South Africa). The BMW plant in Spartanburg
(USA) is responsible for producing the BMW X3, X4 (from 2014), X5 and X6 models. BMW
X1 and models of the BMW 3 and 5 Series are built exclusively for the Chinese market at the
two plants operated by the joint venture BMW Brilliance in Shenyang (China).
Components for the worldwide production network are manufactured at the BMW plants in
Landshut and Wackersdorf. The Eisenach plant is responsible for toolmaking. The two
production sites in Moses Lake (USA) and Wackersdorf are operated by the joint venture SGL
Automotive Carbon Fibers (ACF) and supply carbon fibre and carbon fibre cores for the
production of BMW i models. The BMW Groups largest engine manufacturing plant in Steyr
(Austria) manufactures petrol and diesel engines for the various BMW plants and diesel engines
for the MINI production. In 2012 the joint venture BMW Brilliance Automotive opened an
engine plant in Shenyang (China), which supplies petrol engines to the neighboring BMW
plants.
The primary function of the BMW Groups assembly plants is to serve nearby regional markets
with BMW cars currently being assembled in Chennai ( India), Jakarta (Indonesia), Cairo
(Egypt), Kaliningrad (Russia), Kulim (Malaysia) and Rayong (Thailand).
Five of the MINI models Hatch, Clubman, Convertible, Coup and Roadster are
manufactured at the Oxford plant (United Kingdom). The UK production triangle also includes
the components plant in Swindon as well as the engine plant at Hams Hall, where petrol engines
are manufactured for MINI and BMW. In Graz (Austria), Magna Steyr Fahrzeugtechnik
manufactures the MINI Countryman and, since 2012, the MINI Paceman for the BMW Group.
The Rolls-Royce Phantom, Ghost and Wraith models are manufactured exclusively at the
Goodwood plant (United Kingdom).
The BMW plant in Berlin is responsible for the manufacture of BMW motorcycles as well as
brake discs. One additional motorcycle assembly plant is located in Manaus (Brazil) and another,
since the end of the year, in Rayong (Thailand).
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The worldwide automobile distribution network currently consists of around 3,250 BMW, 1,500
MINI and 120 Rolls-Royce dealerships. Products and services are sold in Germany through
BMW Group branches and by independent authorized dealers. Sales outside Germany are
handled primarily by subsidiary companies and, in a number of markets, by independent import
companies. The sales network for BMW motorcycles is organized in a similar way to the
automobile business. Currently, there are approximately 1,000 BMW Motorrad dealerships
worldwide.
Our premium brands BMW, MINI and Rolls-Royce are well known and highly admired
around the globe for their innovative technologies and state-of-the-art design. The BMW Group
provides the full spectrum of individual mobility, ranging from premium segment small vehicles
through to ultra-luxurious and powerful vehicles. Our entire product range is linked by one
characteristic: efficiency. The MINI brand is a veritable icon in the premium small car segment,
offering unrivalled driving pleasure in its class. Rolls-Royce has a long and distinguished
tradition in the ultra-luxury segment stretching back over more than 100 years. Our core BMW
brand manages to cover a broad spectrum of customer wishes, ranging from fuel-efficient and
innovative models equipped with Efficient Dynamics through to high-performance, extremely
efficient BMW M sub-brand vehicles, which bring the flair of motor sport onto the roads. All
BMW vehicles share one thing in common: their impressive driving dynamics.













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II ANALYSIS I
The analysis in this section is made on the basis of study of secondary data, such as revenue,
share price performance, sales volume of both companies, etc.
The Capital Market in 2013
A good year on the worlds stock markets. Global stock markets developed very positively in
2013. At the beginning of the year, stock markets were buoyed by positive growth signs in China
and by a preliminary agreement for preventing the United States from falling off a fiscal cliff.
With major central banks continuing to pursue an expansionary monetary policy, investors
increasingly allocated the resulting high market liquidity to purchase equities. As a result, key
stock market indices rose to all-time highs during the year. However, the return of uncertainty
regarding the sovereign debt crisis in Europe caused shares to lose some of their gains in the first
quarter and at the beginning of the second quarter. But confidence in the economic development
of the European Monetary Union improved again later in the year. This caused investors
demand for shares to grow even more a development that especially benefited cyclical stocks.
In the middle of the year, statements by the Federal Reserve Bank concerning a possible tapering
of its expansionary monetary policy caused share prices to fall worldwide. This sell-off was
intensified by higher interest rates in China and by concerns regarding a decrease in the
availability of credit there.
However, stock markets developed very favorably once again in the third quarter. This was
mainly due to the stabilization of the macroeconomic situation in Europe, the United States and
China, which offset concerns regarding the political situation in the Middle East. The budget
conflict in the US and the debate about the countrys debt ceiling had only a temporary effect on
share prices. In conjunction with positive economic indicators, the continued expansionary
monetary policy of key central banks including the European Central Banks surprise interest
rate cut helped share prices to increase across the board later in the year. Under these
conditions, many stock market indices rose to all-time highs in the last two months of the year.
The index of the most important shares in the euro zone, the Dow Jones Euro STOXX 50, rose
by 18% in 2013, although the entire increase occurred in the second half of the year. Due to the
robust condition of the German economy, the leading German index, the DAX, did even better,
rising by 25%. The DAX reached a new all-time high of 9,589 on December 27. In the United
States, the Dow Jones rose by 27% during the year, while Japans Nikkei index was even 57%
higher at the end of 2013 than at the beginning.



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Daimler and the Capital Market
Daimler share price up by 52% over the year. With a gain of 52%, Daimler shares were able to
substantially outperform most stock market indices. Financial markets responded favorably to
the publication of the Daimler Groups results for 2012, the outlook for 2013, and the
recommendation that dividends should remain unchanged at 2.20 per share. This helped the
share price to increase slightly in the first quarter. However, the Daimler share price was not
unaffected by the uncertainties associated with the European sovereign debt crisis and the
Cyprus bailout. In addition, business did not develop as well in the first quarter as had been
expected at the beginning of the year. During this phase, the Daimler share price dropped to its
lowest point of the year when it fell to 38.65 on April 18.

However, when Daimler published its financial statements for the first quarter, they emphasized
that they expected results to improve during the course of the year. In the following weeks, the
share price was also boosted by the very positive feedback regarding the newly introduced
products. Investors responded especially positively to the presentation of the new S-Class and the
Concept GLA. In this environment, the Daimler share price rose substantially until mid-May and
temporarily peaked at 50.37 on May 20. However, statements made by the Federal Reserve
Bank and the Chinese central bank in June caused the Daimler share price to follow the general
market trend and lose some of its gains.
This temporary slump ended in mid-June. In the second half of the year, the Daimler share price
once again benefited from a more favorable stock market climate and the positive business
development. For example, the capital markets responded positively to Daimlers second-quarter
results, which were better than most market participants had expected. In addition, the good
response to the new products and increasingly dynamic car sales boosted investors interest in
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Daimler shares. Daimler used the Frankfurt Motor Show to enable capital market representatives
to experience the new products at first hand. And on September 20, Daimler Trucks held a
Capital Market Day in Worth. At the event, the division informed analysts and investors about
the latest developments in the truck business and our ongoing strategy. Under these conditions,
the Daimler share price rose to 58.43 on September 19, achieving its highest value in more than
two and a half years.
The Daimler share price then continued to increase in line with the general stock market
upswing, rising to 63.15 on December 27. This was not only its high for the year 2013 but also
the highest price in more than five years. The Daimler share price closed the year on December
30 at 62.90. At the end of the year, the company had a market capitalization of 67.3 billion.

The Daimler share price thus increased by 52% during the year, performing better than the Dow
Jones STOXX Auto Index (+37%) and the DAX (+25%). When the dividend payout of 2.20 per
share is also considered, the shareholders had an overall value gain of 58%.
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In the first two weeks of the year 2014, stock-market prices at first continued to rise, especially
in Europe and North America. Global equity prices weakened significantly after that, resulting in
falls of nearly all major stock-exchange indices in January overall.


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BMW and the Capital Market

BMW share price went up by 17% over the year. However, the Daimler share price was not
unaffected by the uncertainties associated with the European sovereign debt crisis and the
Cyprus bailout. In addition, business did not develop as well in the first quarter as had been
expected at the beginning of the year. The BMW share price dropped to its lowest point of the
year when it fell to 63 in July.
BMW v/s Dax

The BMW share price thus increased by 17% during the year, giving less return than the Dow
Jones STOXX Auto Index (+37%) and the DAX (+25%).
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Daimler v/s BMW

The Daimler share price increased 52% during the year as compared to BMW share price
increase of just 17%. Daimler has clearly outperformed BMW in term of return on share price.












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Comparison of Revenue
Daimler Group











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BMW Group


The revenue for Daimler stands at 117,982 million against BMW revenue of 76,058 million,
which is a very huge difference.
The net profit of Daimler for 2013 is 8,720 million , whereas BMWs was 5,340 million.
Thus, Daimler is ahead of BMW in this regard, but the difference is not as large as revenue
difference between the two companies. The earning per share of Daimler is 6.40 which is lower
than 8.10 of BMW.
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Comparison of Car segment business of Daimler and BMW

BMW

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The revenue for Daimler, Mercedes Benz car business stands at 64,307 million against BMW
revenue of 70,629 million. The profit before tax of Daimler for 2013 is 4,006 million, whereas
BMWs was 6,561 million. Thus, BMW is ahead of Daimler, Mercedes Benz in this regard. It
is clear from this that BMW is leading in the market of luxury car segment.

Comparison of sales volume
Mercedes-Benz Cars segment
2013 was another record year for Mercedes-Benz Cars. Unit sales, revenue and production
reached all-time highs. As we anticipated at the beginning of 2013, EBIT displayed a clear
upward trend as the year progressed. Our most important new model was the S-Class, a pioneer
of automotive development that underscores our leadership in the luxury segment. Additional
new models in 2013 were the new E-Class and the CLA compact coupe. We also unveiled the
new GLA, a compact SUV. Targeted investment in our global production network and sustained
improvements in efficiency have put us on track for further profitable growth.

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New records set for unit sales and revenue. Mercedes-Benz Cars, comprising the brands
Mercedes-Benz and smart, accelerated its growth with sales of 1,565,600 vehicles in the year
under review (2012: 1,451,600). Revenue also increased to a new record level, rising by 4% to
64.3 billion. At 4.0 billion, EBIT was lower than the figure for the previous year. However,
following a weaker first half of the year, they were able to significantly improve our earnings in
the third and fourth quarters of 2013. The launch of several new and attractive products made a
major contribution to the very positive overall business development throughout the year.
Efficiency improvements from the Fit for Leadership program also had an increasingly
positive effect on earnings as the year progressed.
BMW Cars segment
2013 financial year the success continues. Our vehicles are more desirable than ever: we
delivered more than 1.96 million BMW, MINI and Rolls-Royce cars to customers in 2013,
exceeding the previous years record by 6.4 %. Individually, our three automobile brands also
posted record sales, with more than 1.65 million BMW, over 305,000 MINI and exactly 3,630
Rolls-Royce motor cars sold. We offer customers a full spectrum of premium products from
MINI in the small car segment to Rolls-Royce in the ultra-luxury class.
The core BMW brand represents sheer driving pleasure: the BMW 3 Series, 5 Series and 6 Series
models and the BMW X1 are all leaders in their respective segments. The BMW brand also
comprises efficient high-performance models from BMW M and the particularly sustainable
vehicles of the BMW i family, with the BMW i3 and, from 2014, the BMW i8.

From the above information, it is clear that BMW lead the market for luxury car sales producing
1,963,798 against 1,565,600 produced by Daimler (Mercedes), which is 398,198 more.
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III CONCLUSION, SUMMARY AND RECOMMENDATION

CONCLUSION
As per details of Survey Report Analysis and after Verifying all the other details included in my
study, it is clear Daimler share have outperformed major stock index and BMW as well. The
revenue of Daimler group is much more than BMW Group but if we have to consider just car
segment then BMW is much ahead of Mercedes Benz. BMW outperform Mercedes Benz in
terms of sales volume and profit from car business.
Daimler is growing faster, on a broader front and in more markets than ever before. This growth
is based on extensive product offensives in all our divisions, but in my opinion BMW is
performing well, as per current scenario Mercedes Benz was the market leader but BMW with its
features and Design Mechanism is successful in attracting the people, so the demand for BMW is
increasing.
BMW is getting preference so currently both are at equal position but in near future BMW will
crossover Mercedes-Benz market legacy.

SUMMARY
The motive of this project is to give clear information about BMW AG and Daimler's entry into
luxury and premium automobile sector.
Daimler (Mercedes Benz) and BMW are two name that comes to mind when one think of luxury
car. There is no doubt that they dominate the market for luxury car segment, providing various
options and categories of car. Mercedes providing C, E and S class, etc. and BMW providing 3, 5
and 7 series cars. They have strategically placed cars into these categories to make it easy for
customers to decide which one is best for them. In this project, I have tried to find out which one
of them is better in terms of profitability, market share, Sales volume, customer satisfaction, etc.
The project starts with the basic information on Daimler and BMW Ag, their history,
achievements, their entry into various markets, etc. Analysis I is based on the study of secondary
data from different medium such as books, magazine, website and annual report. It shows that
Daimler share have outperformed major stock index and BMW as well. The revenue of Daimler
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group is much more than BMW Group but if we have to consider just car segment then BMW is
much ahead of Mercedes Benz. BMW outperform Mercedes Benz in terms of sales volume and
profit from car business.
Analysis II is based on the study of primary data. The data is collected from 50 people. Here,
customer satisfaction, their taste and preference are identified. In some aspects BMW is better
then Mercedes Benz and in other Mercedes Benz is better then BMW but it can be concluded
that BMW is gaining more customers then Mercedes Benz.
I had to rely upon the information from secondary sources (Balance sheet, Profit & Loss Account
and Cash Flow) and given by respondents, which may not be fully true.
This study will be limited to only some areas only.
It is only for short period of time.
Lack of professional approach since researcher is a student

RECOMMENDATION
Based on the study I would recommend that Mercedes-Benz and BMW should consider
developing a product that would be suited to today's youth and social trends as their major
customers are in age group of 30-50 years. Such a product would be relatively cheap (although
not so cheap as to compromise their luxury status), have low running costs and be highly eco-
efficient.
Both companies should focus on expanding their reach to customer in different markets. It has
been seen in the study that many customers are not aware of various facilities provided by them;
they should try to educate their customer regarding various services provided by them.
BMW should focus on providing more add-on accessories as they lack behind Mercedes Benz in
this area. Mercedes Benz should come up with better engine as people prefer BMW for its
engine over Mercedes Benz.



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BIBLIOGRAPHY

1. Daimler 2013 Annual Report
2. BMW 2013 Annual Report

INTERNET:
1. BMW Motors' Official Website (http://www.bmw.com)
2. Wikipedia
3. Daimler Official Website http:// www.daimler.com/
5. Mercedes Official Site (http://www.mercedes-benz.com)
6. http://www.yahoofinance.com/