Mercedes 1998 Annual Report Download - page 45

VEHICLE SALES ORGANIZATION
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Following the merger of Daimler-Benz and Chrysler
we created a new worldwide sales structure as one of
the first results of the integration process. This new
organization lays the groundwork for achieving our
growth goals for the vehicles businesses and
realizing the synergy gains resulting from the
merger. New opportunities and standards have been
defined for the brand portfolio of the new company in
order to enhance the value of each individual brand.
Also for this purpose, distinct areas of brand
responsibility have been allocated within the Board of
Management of DaimlerChrysler. Our overall goal is
to be the best in the world, not only with our
products, but also in all aspects of customer service.
PROTECTION OF BRAND NAMES IS THE MOST IMPORTANT
REQUIREMENT. To protect our investment in the company's six
passenger car brands, we have identified the opportunities and
limits for each individual brand. The next step was to define the
respective positions in the market for the entire brand portfolio
and the product strategy, communication, and sales modalities.
This uniform worldwide brand management clearly separates
the brands from one another and defines the tasks within the
brand portfolio. From today’s perspective, each brand has
considerable prospects for growth within the framework of the
standards and market segments defined for it. Thus, the
operational units are provided with the basis for their strategic
decisions in conformance with the agreed standards. The major
brand positioning elements are defined in a so-called “Brand
Bible” to which all areas of the company are committed.
WORLDWIDE BRAND RESPONSIBILITY. With the goal of further
harmonizing the development of the different brands around the
world, we have restructured the organization of the six
passenger vehicle brands, as well as the four commercial
vehicle brands. Three different areas of worldwide
responsibility have been created. For the Chrysler, Plymouth,
Dodge and Jeep lines, Jim Holden will assume worldwide
responsibility; for the passenger car lines Mercedes-Benz and
smart, Dieter Zetsche will be responsible; and for commercial
vehicle lines Mercedes-Benz, Freightliner, Sterling and Setra,
Kurt Lauk will assume responsibility. Ted Cunningham is
responsible for the worldwide standardization of common
systems and processes in marketing and sales. This structure
allows for regional distinctions and requirements for product
development in order to fully capitalize market potential with
products suitable to the market and the customer, and to
promote future growth.
NEW REGIONAL RESPONSIBILITY. To quickly implement growth
possibilities and operational synergies, we also have created
three areas of regional market responsibility. Market
development and control of the sales companies has been
divided into three regions: North America, South America and
Europe/rest of the world. As a rule, the previously separate
wholesale stages will be integrated in this new organization.
Within each country, responsibility for all brands will then be
taken by one national company.
The main responsibility lies with each country chairman (CEO).
To achieve appropriate savings, central functions such as
finance, controlling, parts logistics and administration will be
combined. In addition, special brand managers in each of the
countries and regions will be responsible for the individual
makes and will orient them toward their respective market
segments and target groups.
MARKETING INTEGRATION COUNCIL. At the top of the new
organizational matrix of worldwide brand responsibility and re-
gional sales responsibility is a “Marketing Integration Council”.
This council steers the new marketing and sales structure and
consists of Ted Cunningham, Jim Holden, Kurt Lauk and Dieter
Zetsche. Among other responsibilities this group will determine
production goals and define the central services to be
established, as well as take decisions on profit goals in
coordination with the business units.