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Mercedes-Benz

Comparison of the United States and European Marketing Strategies
by

Riley Walker

on 16 June 2010

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Transcript of Mercedes-Benz

Economic Climate Marketing Mix About the Company Political Environment Environmental Concerns Positioning & Segmentation About the Company Marketing Mix European Market United States Market Legal, Political and Economical Environment Segmentation&Positioning Product Price Promotion Place/ Distribution
The Mercedes-Benz Product Line Wide variety of products
Making it especially easy to enter a wide variety of markets introducing both similar and entirely different classes of vehicles.
Mainly Mercedes Benz is known worldwide for its variety of car models: 190-Series C-ClassM-Class
200-Series CL-ClassR-Class
300-Series CLK-ClassS-Class
400-Series CLS-ClassSL-Class
500-Series E-ClassSLK-Class
600-Series G-ClassSLR-Class
The US usually focues on the high end range of engines.

Diesels are an exception and a major factor in manufacturing mercedes in Europe.
in the sense that the 400CDI or 420CDI have not been available in the US.

For the most part, The models themselves have relatively few differences.
Availiability of products in Europe compared to what is available in the US is due more towards image and the consumers wants
Luxury vs. Practicality

In both segments Mercedes-Benz has maintained a reputation for its quality and durability
US vs. EU Products Luxury Automobiles
Luxury SUV
Passenger Cars
Status symbol
Euro Cars
Bus/ Vans
Passenger Cars
Practical engineering
International industry leader in automobile safety
Mercedes is the world's oldest automotive brands still in existence today.
One of the frontline European car brands
Pricing Strategies US vs EU In the United States, pricing is strictly related to Mercedes-Benz emphasis on Performance, Precision and Prestige
Those who find themselves in the market to purchase a mercedes typically have more discretionary income that can be spent on luxury purchases
In Europe Mercedes-Benz also demonstrates top of the line quality
These customers however purchase the product as a result of its oustanding german manufacturing in contrast to the lifestyle it represents in the US
Promotional Strategies in theUS vs. EU Fashion Week
“Beauty, Design and Innovation”
platform for supporting the fashion industry while advancing the ideals of design leadership, luxury, and quality craftsmanship.
PGA America
“Precision and Drive”
Mercedes-Benz is the Official Vehicle of the most recognized tournaments in the game of golf
Auto Shows
“The future right before your eyes”
Motor Sports
World Cup in South Arica
“FIFA Fever”
TV Ads
“The best or nothing”


A New Era for driving
Today´s F1 Drivers
Hybrid Racing
Production and Distribution Strategies
Mercedes originated in Germany and still focuses much of its manufacturing in its native environment
In addition to Germany however, Mercedes-Benz vehicles are also manufactured or assembled in:
Argentina Canada Iran Mexico Thailand

Austria Egypt India Nigeria Turkey

Bosnia Ghana Indonesia South Africa United Kingdon
Mercedes-Benz has dealerships worldwide aiming to make as many vehicle classes available in as many locations as possible
Differences in Manufacturing Due to Mercedes opening production in over 20 countries worldwide, the company has much flexibility when it comes to manufacturing
Meeting the needs of each country´s regulations
Coping with differences in driving terrain -In the US Mercedes manufactures vehicles focusing more strongly on straight handling
-In Europe, manufacturing takes into consideration the narrow streets and small flexibility with parking
Handling focuses strongly on cornering vs. relatively straight driving
January of 1886- Karl Benz unveiled the world's first automobile, a three-wheeled vehicle dubbed the Benz Patent Motor Car.
In 1901- First Mercedes car
Car was named after Jellinek’s daughter, Mercedes.
In 1926 the Mercedes-Benz brand was born.
Birth of Mercedes About the Company An American Focus Late 20's- Development of the sport car.
1954- Iconic 300SL sports car model.
About the Company Learning from mistakes Bad marketing leads Mercedes into a problem.
Mercedes Today Positioning: European Countries Seen as a dependable car company with a very diverse price range
Smaller roads and a high frequency of mopeds make smaller/cheaper cars very profitable
May not be the best cars for the environment, but their high diesel sales in Europe show that they have a higher sense of social responsibility
Positioning: United States Viewed as a high-end brand and more of a lifestyle brand
No car under 30k, which gives the owner a feeling of exclusivity of the social status that follows
Americans have a tendency to not care about environmental standards, which makes SUV and larger Sedans more popular
Segmentation: Europe Segments
Passenger Cars
Trucks
Buses and Vans
McLaren Supercars
Electric Vehicles
Bicycles
Even designed the Popemobile for Pope Benedict XVI
Traits
Focuses on higher income levels but has many options for lower income levels
Has a wider variety of Business to Business Selling when dealing with their Trucks, Buses and Vans
Smart Cars appeal to people with a higher environmental need
Expanded their product line from lowest (Bikes) end to highest (McLaren/Popemobile) end.
Segmentation: United States Segments Traits Sedans & Coups

SUVs & Crossovers

Roadsters & Supercars
Only focuses on the highest income level for all their cars
Very few environmentally friendly cars have been introduced in this market
Current position in the market continues to create a high demand to be a part of the Mercedes Status
Used Mercedes are popular, but status felt stronger if bought new from a sales lot Mercedes Benz Bus Popemobile
One of a Kind McLaren SLR 283,141.327 Euros or $349,000 US Dollar
Mercedes Trailblazer 2,790 Euros or $4,412 US Dollar
Economic environment in USA vs Spain, Germany (Europe) Units Sold During 2009, Mercedes-Benz delivered 1,012,300 vehicles to customers Germany: the brand delivered 265,500 vehicles to customers USA : total US unit sales for MB in 2007 were 253,316 and in 2008 sold 225,128 vehicles company’s reputation for being socially responsible is among the most important considerations for car buyers

Mercedes Benz USA named one of the “100 best companies to work for” by FORTUNE magazine “best place to work in New Jersey” Mercedes in the USA is definitely seen as a status symbol Today AMG line (performance models) make up about 10% of sales for MB in USA. Engine’s tend to be bigger(more powerful) in America than Europe European’s want smaller more efficient cars Median household income for a buyer is $170,004, average age- 53 348 dealerships in USA value, quality, craftsmanship SUV’s very popular in America, not so much in Europe In Europe Mercedes means safety and technologically advanced vehicles and very quality conscious Vario vans segment, not in the US but very popular in Europe 20,000 people work at Sindelfingen in Germany worst CO2 average MB manufactures and assembles in 20 countries
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