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Mercedes-Benz Brand Strategy Analysis Presentation


on 16 November 2014

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Transcript of Mercedes-Benz


"The best or nothing."
Brand Strategy Analysis
Taylyse Wornum
Dr. Jin
MK 617

Mercedes-Benz is a luxury German automobile manufacturer.

Founded in 1886 by Karl Benz. It has been around for 128 years.

Mercedes is part of the German "Big 3" along with Audi and BMW, who are their competitors.

Their slogan has been, "Das beste oder nichts"
(The best or nothing).
Brand Personality
The Best...
The best or nothing.
Who is Mercedes-Benz the best for?
Based on who you believe Mercedes-Benz target market to be, out of this group of people, who do you think owns a Mercedes?
Mercedes positions their product as being the
The company wants their consumers to believe that nothing compares to their vehicles, their style, or their brand.
Mercedes accentuates a lavish lifestyle which ultimately represents a symbol of status.
Average Mercedes-Benz Buyer Profile:

Age: 50 +
Gender: Typically male
Average HHI: $162,000
Shifting Gears
Mercedes has been depicted as a luxury vehicle for an older group of people who are well-established and typically affluent.

Even the form, shape, and design of their vehicles was considered to be geared towards older people.
Product Line
Below $50,000
By August of 2013, the average price for a new vehicle was $31,252, according to TrueCar.com.
Mercedes-Benz has one vehicle under the average price and three vehicles between$2000 and $8,000 above the average price, which seems to be a good offering for a luxury brand.
$50,000 to $100,000
$100,000 and above
CLA-Class: $29,000
GLA-Class: $33,300
GLK-Class: $37,900
C-Class Coupe: $39,400
C-Class Sedan: $40,400
B-Class: $41,450
SLK-Class: $43,950
M-Class: $48,300
E-Class: $51,400
E-Class: $53,350
E-Class: $56,700
E-Class: $58,600
E-Class: $61,350
GL-Class: $63,600
CLS-Class: $72,100
SL-Class: $84,000
G-Class: $115,400
S-Class: $119,900
SLS-Class: $221,580
SLS-Class Roadster: $228,080
Social Media
Fashion Week
& Tennis
Mercedes-Benz &
Saving Face
2014/2015 Advertisements
Product Placement
Sex and the City
Transporter 3
Placement: Prominent or Subtle?
Plot Connection: Weak or Strong?
Impressive numbers

Mercedes wins popularity contest on social media.
Assessment was facilitated by eBench from January 1st, 2014 to June 30th, 2014.
"A person or thing regarded as reliably providing essential support for something."
"Style, class, and evolution"
Mercedes-Benz is tied to couture and that is why they sponsor over 30 fashion-related events across five continents, supporting the fashion industry through its constant reinventions.

Some of the locations where Fashion Week is held are Miami, New York, Istanbul, Australia, and Russia.
At Mercedes' Fashion Week there are popular, top of the line fashion designers such as Michael Kors, Tory Burch, Vera Wang, and Rachel Zoe.

An attendee also has the opportunity to see various Mercedes on display.

"Fashion trends may come and go but true icons never go out of style"
Mercedes-Benz sponsors three events that attract a typically wealthy crowd:

Mercedes-Benz Fashion Week
Tennis - US Open
Golf - PGA, Ryder Cup
Within these events, Mercedes is boosting their brand while hoping to simultaneously attract customers.

These events are especially helpful in Mercedes reaching each of their intended market segments because of the diverse group of people each event attracts.
"Competition, challenge and peak performance"
Brand Ambassadors:
Adam Scott
Rickie Fowler

Gender: 77.5% are male and 22.5% are female
Age: The average age is 46
Household Income: Average = $95,000

At the 2012 Ryder Cup Golf Tournament, Mercedes hosted a challenge where fans had the opportunity to win a brand new Mercedes by sinking a hole-in-one on a 150-yard par 3 with a green positioned over water. This is a great way to encourage consumer participation and interaction with the brand.
Golfer Profile:
A shining star. A perfect match.

Adam Scott is a marquee player and 2013 Masters champion
Both Mercedes and Adam are highly respected and revered in their fields.
They each strive for perfection and are driven by a passion for what they do
Precision is crucial on the golf course and on the road, which is why Adam and Mercedes-Benz are such a perfect combination.
Eyebrow-raising wardrobe.
Head-turning talent.

2010 PGA Rookie of the Year and 2012 Wells Fargo champion Rickie
On the golf course, Rickie exhibits the kind of play and poise that make him a perfect mixture of style and substance — which is something Mercedes-Benz knows all about.
"Grace, elegance, and power"
Mercedes classifies the sport of tennis as being a mixture of grace, elegance, and power, which can also be said of a Mercedes-Benz. And that is why their association with the sport of kings is a natural one. Mercedes-Benz has been a marquee supporter of professional tennis since 1996, continuing to this day with their sponsorship of the US Open.
Brand Ambassador:
Roger Federer
Roger Federer is someone of poise, who excels in his field, and who has always been a fan of Mercedes-Benz. That´s why Mercedes-Benz partnership with Roger makes sense: not only is he one of the true greats of tennis, he declared his intention to one day drive a Mercedes-Benz years before he even had a driver´s license.
Currently ranked world no. 2 by the Association of Tennis Professionals
Through the partnership with Roger, Mercedes is now able to extend the brand's visibility throughout tennis.
Like most companies and brands, Mercedes did not want to be associated with the negativity surrounding the Los Angeles Clippers due to Donald's deplorable remarks regarding people of color and people of the middle and lower class .
Pre-Donald Sterling scandal, Southern California Mercedes dealers offered a convenient bonus for Mercedes owners who were attending a Los Angeles Clippers home game, which was called the "Preferred Valet Experience ."

Post-Donald Sterling scandal: Mercedes Southern California dealer group ceased its sponsorship of the Los Angeles Clippers immediately.
This experience provided:

A Mercedes-Benz gift
Mercedes-Benz Courtside Club passes - Access tothe exclusive Mercedes-Benz Courtside Club in the Chairman’s Room
Opportunity to make dinner reservations in the San Manuel Club
A free valet parking space for the Clippers home games
Positive or negative?
Extrinsic or intrinsic?

Mercedes-Benz offers interactive platforms such as Facebook, Instagram, Twitter, and YouTube through which individuals and communities share, co-create, discuss, and modify user-generated content.
In particular, I will focus on how Mercedes utilized Instagram as a means to target Millennials.
"Get 'em young, wow them with the best experience in the business and keep them for life." - Steve Cannon, President and CEO of Mercedes-Benz USA

Changing the design of some of the classes from luxury to sport luxury coupled with pricing some of their vehicles at a significantly lower price, starting at $29,000 for the new CLA-Class, was very profitable and beneficial for Mercedes, especially in their pursuit to capture their new segment.

By lowering their cost Mercedes can now pursue those buyers who would like the prestige of owning a luxury motor vehicle. It is not only about the car’s features, but it’s also about the status of owning a Mercedes.

Even with the new CLA-Class being sold-out at many of their locations, people opted to buy the next car up, the C-Class, which starts a $39,000.

Mercedes-Benz has modernized its brand image and directed its customer approach very specifically at the relevant customer target groups.

Millennials/Generation Y
Baby Boomers and Generation X
According to Pew Research Center,
of Americans between the ages of 18 and 29 are Instagram users and
are between the ages of 30 and 49.

The challenge used six of Instagram’s best photographers, who were everyday Generation Y consumers who had hundreds of thousands of followers, to spend five days behind the wheel of the Mercedes-Benz CLA. Each participant would document their trip, sharing six photos a day on their Instagram account as well as the Mercedes-Benz Instagram account. The prize was whoever received the most likes, kept the CLA.

The influencers, as they were referred to, were chosen because of the quality of their photographs, their diverse range of lifestyles and viewpoints, as well as their ability to reach a mass amount of people from various backgrounds.

On Instagram alone, the content achieved 87 million organic impressions and over 2 million likes. There were 549,000 social mentions on Facebook and Twitter alone. And this social conversation was 90% net positive.

Over one million visitors viewed CLA content, with 342,000 build-your-owns and when the CLA launched in September, it broke sales records


“They’re one of the youngest age groups in the history of the brand,” according to Mercedes digital marketing manager Mark Aikman. More than half of CLA buyers are Gen-X or Gen-Y, and for 75 percent of them, it was their first Mercedes

Chris Ozer
Nikoletta Cysani
Michael O'Neal
Paul Octavious
Alice Gao
Tim Landis
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