What is Mercedes-Benz?
When the name Mercedes-Benz is mentioned, it needs no explanation to talk about a well company as it, but most people have no idea about this automobile legacy and its product’s line. In fact, Mercedes Benz is always associated with the world class brand of cars, buses, coaches and tracks known for their luxurious nature. Mercedes Benz is not a company in itself; Gottlieb Daimler and Wilhelm May Bach call its parent company Daimler AG, which was founded, in 1890.
Earlier on, Karl Benz was the co-founder of the company in 1871, which joined Daimler AG. Mercedes Benz’s headquarters is located at Baden-Wurttemberg and Stuttgart, Germany.
As we mentioned earlier, Mercedes-Benz produces many types of advanced luxury cars
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Marketing and its role in developing Mercedes-Benz’ Business
Marketing is perhaps the most important activity in a business because it forms the communication bond between the customers and the company, and it’s a key aspect of communicating the value of the product.
Although Mercedes Benz marketing strategy used to focus on safety, precision engineering of its cars and safety, they had to make sure that the Mercedes’ cars would suit the customers’ changing attitude. Now, they focus more on fun loving, energetic and approachable side of Mercedes Benz in their marketing. When its market expanded this caused an evolution in its marketing strategy. Mercedes Benz has found that they have to expand their market by including younger customers. Slicing prices to make the product more affordable was one of the marketing strategies also.
Another way of marketing strategies was to increase the communication with its target customers; it has maintained accessibility to customers through:
• Online advertising
• Social
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Customers and brand fans post on the walls, take part in discussion and share images and videos on the automaker’s page.
Micro environment Factors
There are different methods to analyse the micro environment of the company but two only three of them are used in this report to analysis the micro element which affect the strategy of the company. The three analysis techniques used to study micro elements affecting the strategy of Mercedes Benz include
Porters Five Forces:
- Suppliers’ bargaining power: The company does bargains with the suppliers, suppliers are first carefully selected by carrying out bidding then a fixed price is set by multi consent then material is provided by the supplier.
- New competitor’s entry in the market: The Mercedes Benz faces an intense competition from small car manufacturing company and the reason these small companies can affect the sales of the Mercedes is the economic crisis faced by the world people prefer to opt for a small less costly car
- The rivalry between the existing competitors: The rivalry between the three competitors is very high all of the three companies sometimes launch new cars at same. The media and analyst conduct comparisons and reviews of the launched cars and intensify the competition and rivalry between
It was once centred on the safety, luxury, and precision engineering of its cars, but due to increase competition in the luxury car industry and changing consumer attitudes about the Mercedes Benz brand that strategy has changed. Now their marketing strategy is more life style oriented and is focused more on presenting the more fun loving, approachable, and energetic side of Mercedes Benz. Availability of the product when and where it's needed it's important to make it easy to reach at a low cost. Awareness is a key factor of marketing, letting the public know about your product and its feature is very important, that way they might be convinced into giving the product a
The competition among rivals is very high due to price and non-price factors. Companies try to attract customers to their products by introducing
The company that chose for this assignment is Mercedes-Benz. Mercedes-Benz is a old company. It established since almost one century ago. Mercedes-Benz is also a well-known automobile company on the world. It also have many competitors such as Audi, BMW, Volkswagen and so. In the following paragraphs will shows the Mercedes-Benz company background, country background, example of PESTEL, Porter’s 5 Forces, Strategic Recommendations and the conclusion.
In the following report a description and analysis of the international marketing strategy of BMW will be given. First a description of the company will be given, shortly explaining the history and elaborating on it’s current situation. Secondly an overview of the company’s activities will be provided including: products, brand portfolio, markets and other relevant information. This will lead into a discussion regarding the company’s recent performance. Furthermore a detailed description and analysis of BMW’s i-series’ international marketing activities is given which will explain market segmentation, targeting and positioning, the product strategy, market entry and distribution methods and promotion and pricing strategies. Then
There are distinctive barriers to entry in the automotive industry. The main 10 firms operating in the automotive industry have great power in terms of reputation, finances, experience, technology and existing large product portfolios. It would be highly difficult for a new company to compete with the above. • The existing companies within the industry are joining forces, which at times do have detrimental effects for new comers to the market and for some existing companies. For instance, the situation of Rover in the UK. In the past, the profitable components of Rover were purchased by BMW and Ford, and Rover was left producing poor quality and old vehicles, which consequently led to its bankruptcy in April, 2005 (BBC, April
When you think of the terms luxury, sophistication, quality, class, and excellence as they relate to the automotive industry, none other than Mercedes-Benz should come to mind. Headquartered in Stuttgart, Germany, Mercedes-Benz is one of the world’s most successful German automobile manufacturing companies owned by a parent company known as Daimler AG. Daimler AG is also the owner of the car brand known as Smart. The German automotive giant prides itself on its innovative and luxurious automobiles, trucks, buses, and coaches. In addition to the main Mercedes-Benz vehicles, the company owns a high performance division known as AMG, which independently manufactures, engineers, and customizes ultra-high performance Mercedes-Benz AMG vehicles. They produce both upgraded Mercedes-Benz vehicles as well as their own unique vehicles, such as the SLS AMG, that aren’t based on standard Mercedes-Benz cars.
DaimlerChrysler’s brand strategy was flawed. The new DaimlerChrysler cannibalized its own product line, as the Mercedes M class collided with the Jeep Grand Cherokee, affecting one of Chrysler’s most profitable product lines. Chrysler was supposed to pick up small-car segment, but Chrysler brand didn’t fit the small-car image.
Mercedes goal is to go beyond the needs of consumers by putting more effort in workforce and transportation technologies. Mercedes also focused on “high-tech quality profit strategies” (Kohler, 2009,pg312), which they believed, would help them have a lead within the global automobile market.
Advertising is very important for an automotive company such as VW because customers needs to be informed time and again what products have been launched and what offers are they getting. As, advertising is one of the best way to attract customers and interact with them so the automotive companies should be careful while investing their every penny. For example, we can learn a good lesson from VW. There was a time when people didn’t even knew what products
Bayerische Motoren Werke, modernly known as BMW, is the German automobile, motorcycle, and engine manufacturing company that was established March 7, 1916. BMW is headquartered in Munich, Bavaria, Germany and is also the parent company of Rolls Royce Motor Cars (“History of BMW”, 2015). BMW’s flourishing success has included the company in the “German Big 3” luxury automakers. The “Big 3” includes BMW, Audi, and Mercedes-Benz as the best-selling luxury automakers in the world (“History of BMW”, 2015). BMW’s technological innovation has been a leading cause to their success. Ultimately, the development and history of their innovation have been foundational to their growth and development.
Mercedes Benz is considered to have the most luxurious and safest automobiles in the market. Mercedes Benz has the highest levels of Unaided, Aided and Top-Of-Mind brand awareness in the industry. Mercedes Benz brand awareness has continued to increase in all three categories from 2005 to 2007
What did we learn from BMW? The automobile market is divided into a number of “groups” or “segments.” Sub-Compact; Compact; Full-Size; Luxury, etc. These divisions are however, product based, not customer based. However, customers have, over time, “adopted” this segmentation scheme BMW in the luxury / performance segment. But wants to segment further based on “usage experience.” The Better Driver. Not product based, but customer / market based. Usage experience + “Value pricing” for the segment key to differentiating the product offering from Mercedes, Lexus & Infiniti Along with appropriate product and
* Competitive rivalry within the industry: As technology keeps evolving day by day and innovative products are launched by the competitors, the rivalry has increased within the industry. Competition can happen at different levels. At the brand level, different firms may compete in providing a very similar service or product. At the product level, different firms may compete in providing a similar product.
Many of the customers in over the world believe that Mercedes Benz primary and key assets is the reputation and the respectable brand. The brand of Mercedes Benz is often mentioned and is being located as a character of the luxury, perfection and comfort. The Mercedes Benz is already existed more than 100 years, and it is still a trusted brand by all kind of professional and businessmen, all around the world. To become a big company like Mercedes Benz is very hard, and demand a large capital investment as well as a long time frame (Jackson, 2001).
Because the BMW produces cars in Germany, the United Kingdom, the United States, and South Africa, and its external partner, Magna Steyr who has a plant in Austria, the BMW can accord to different region, different culture, and different terrain to launch product lines to customers (Strategic Planning of BMW 's Global Production Network, 2006, para. 3). For example, the BMW can launch a super sports car which has all high technologies of the BMW. It can tell people that the BMW has technologies which competitors do not have. Moreover, there will be some technologies in other normal series cars. That can attract more customers to buy the BMW’s cars.