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Transcript of Mercedes Benz
Mercedes Benz has strong brand value and is a global leader in premium cars.
Forbes estimates Mercedes Benz brand value at $23.8 billion
Manufactured and assembled in over 20 countries around the world.
No capital constraints
More than 12 billion allocated to Research and Development
Almost all safety patents are held by Mercedes Benz
Cars vary in price from 30,000 to over 200,000
Leader in technological advancements in the automobile industry
Emphasis on strong customer service and relationship with owners
High maintenance cost on Mercedes vehicles
Weakening quality with more sales
Limited market to primarily upper class consumers
Many cars are not fuel efficient
Tapping emerging markets around the world and building an even bigger global brand
Fast growing luxury automobile market in India and China which would provide increased income
Developing hybrid cars for the future
Increase in demand of buses across the world
Autonomous driving technology is growing
Last in the emerging China market to Audi and BMW
Government policies and tax increases for importing vehicles
Fuel prices could keep increasing
Intense competition from BMW, Porsche, Audi, Jaguar, Ferrari, and Maserati.
Exchange rate risk
Fluctuations in the price of raw materials
Mercedes-Benz models embody the brands hallmarks of fascination, perfection and responsibility
Pioneer in the field of safety: Prevention, Response, Protection, Rescue
Travel first class every time with a car from Mercedes
Gross Margin/Profit Contribution
To achieve sustained profitable growth and continually increase the value of the company
To attain the leading position in all of their business segments.
To achieve that goal they defined four strategic growth areas.
Organizational Structure of Mercedes Benz
Luxury Automobile Industry
Luxury cars (those costing more than $30,000) account for about 15 percent of the US car market.
Major brands include Audi, BMW, Cadillac, Lexus, and Mercedes.
Demand is driven by consumer spending and interest rates.
Foreign brands, particularly German and Japanese, dominate the luxury car market.
Vice President of Marketing
CEO of MBUSA
General Manager of
First appeared in 1926 under Daimler-Benz
Traces origins to Daimler-Motoren-Gesellschaft's 1901 Mercedes and to 1886 Karl Benz Patent Motorwagon
Widely regarded as the first automobile
Slogan: Das beste oder nichts= "The best or nothing"
"What drives us"
Audacity to reject compromise
Instinct to protect what matters
Commitment to honor a legacy
Vision to consider every detail
Foresight to take responsibility
Ingenuity to outperform expectations
Traditional market: Upper-class consumers age 40
21st Century Approach: Still aimed at upper class
But...target 25-40 as well with the cheaper CLA
Creativity in T.V.
The Four P's
"The Winter Event"
Special financing rates for pre-owned vehicles
Mercedes-Benz sweepstakes by the Los Angeles Clippers
Premium sedans, SUVS, sports cars, and buses sold worldwide
Targets consumers in upper class areas
Strategically located dealerships throughout the world
Vast price range from $30,000 to $300,000
Priced to compete with main rivals BMW and Audi
Quality, luxury, technology, performance
TV, Magazines, newspapers, etc...
Major sports teams, PGA, Tennis
Spent 100-120 million to renovate and get the name
Possibly not worth the money because football and Mercedes-Benz have not worked together in terms of creating sales
Critical Success Factors
Maintaining top notch quality
Remaining #1 in customer service
Car as status symbol
Relationship among sport, fashion, and Mercedes-Benz
"Engineered like no other car in the world"
Combines the premier physical product with non-physical attributes such as their extensive warranty.
Pioneer and leader in technology, safety and innovation.
Aligning organizational structure with the individual divisions
Using new compact-class models to attract younger target groups
Brand/corporate communication activities increasingly involving the use of digital media.
“Fit for Leadership”
Strengthening Core Business
Growing in New Markets
Increasing the production capacities in China
Begin manufacturing the C-Class and GLA for the local market in Brazil. A modernization program has been implemented at 2 Brazilian plants
Continued expansion in Russia
Extending international production network and expanding international research/development network in countries such as China and India.
Overall objective to reduce CO2 emissions of new cars in Europe to an average of 125 g/km by 2016.
The first automobile manufacturer in the world to use lithium-ion batteries in a series-produced car with hybrid drive.
Goal is to become “greener” not only in terms of products, but also reduce emission in other relevant segments of the value chain.
Further strengthen their position as a pioneer in the development of active and passive safety systems
New S-Class safety system underscore claim to be the builders of the world’s safest car.
S 500 INTELLIGENT DRIVE
Make autonomous driving a reality in a series-production vehicle by the end of this decade.
New Mobility Services
Vehicle-related concepts to shape the future of mobility, while also promoting growth in all segments, markets and businesses.
Mercedes Benz is positioning themselves in the market through analysis of the target market to best meet the desires of their target market.
Forbes Values of Mercedes-Benz Brand
Push or pull strategy?
Advertising though TV, print, etc.
Market Research and Strategy
1. Embrace Social Media as an important communication channel
2. Have prospective customers like/follow
3. Generate content
4. Leverage social media to try and stimulate competitive switching
Trade and consumer promotion plan
Promotions offered include bonus events, lease promotions, etc.
Personal Selling Plan
Understand Customer needs
Emphasizes going above and beyond for satisfaction of customer
Identify weakness and potential threats, and create potential solutions
in 26 countries
Three Main Ways
of Distribution :
3. Online Traders
Mercedes-Benz M-Class Sport Utility
Manufactured and Assembled in the United States at Mercedes-Benz US international production facility in Tuscaloosa, Alabama.
The car is then transported to a Mercedes-Benz dealership.
A customer then comes into the dealership and purchases the M-Class car.
Percent of Budget designated to Marketing
MBUSA Product Life Cycle
MBUSA is in the growth stage due to their emerging markets in China