- The Mercedes A-class was launched in 1997 as a compact car to expand Mercedes' product portfolio and attract younger customers. It targeted professionals and couples with a small family income.
- While it faced competition from BMW and Audi in the premium compact segment, its positioning under the Mercedes brand helped establish its luxury credentials. However, it was initially not marketed in the US and Asia due to cultural preferences.
- The A-class suffered a major setback when motoring journalists published that it failed a key safety test, but Mercedes redesigned the chassis to address the issues and regain customer trust in the brand.
What Mercedes could do to target the middle class customer....Fahad Ali
Mercedes is renowned for quality but is out of reach for most customers. To address the mass market without compromising its elite image, Mercedes could collaborate with Toyota to produce affordable, high-quality vehicles under a new brand name like "Toyota MRS" or "Toyota & Mercedes". This would allow Mercedes to attract more medium-income customers while keeping its existing luxury customers satisfied with their high-end models. The new brand could leverage Toyota's experience in affordable manufacturing and Mercedes' reputation for quality and comfort to appeal to price-conscious customers seeking better quality.
The document discusses the Mercedes-Benz S-Class sedan. It provides information on the target market for the S-Class, which is middle-aged people with middle to high incomes. The brand is not popular with young people due to its expensive price point. Mercedes-Benz targets both male and female buyers by designing cars to fit both genders. The document also discusses Mercedes-Benz's marketing and advertising strategies to promote the S-Class, including fashion festivals, social media advertising, and donations to charity to increase sales.
The Face Shop is a Korean cosmetics brand that started in 2003. It is now the third largest cosmetics company in Korea, operating over 800 shops domestically and 318 outlets internationally. The Face Shop positions itself as a natural cosmetics brand inspired by nature, using over 600 botanical extracts. It offers a variety of affordable skin, makeup, hair and body care products, as well as men's lines, to appeal to a wide consumer base. The target consumer persona is women aged 16-35 interested in Korean culture and beauty.
Mercedes Benz has a long history dating back to Carl Benz's Patent-Motorwagen in the late 19th century. The document discusses Masao Kozu's lifelong fascination and artwork focused on Mercedes Benz vehicles starting from seeing a 1937 320 Cabriolet B as a teenager. It then analyzes Mercedes Benz's strengths as a global luxury brand with strong design, safety patents and global manufacturing presence. Potential weaknesses around high maintenance costs and opportunities in electric vehicles are mentioned. Finally, threats from government policies, fuel prices, and intense global competition are reviewed.
This is a presentation on mercedes-benz.It has the histrory of mercedes , why it became popular and who are the target audience of mercedes in india and their upcoming models in india.
Mercedes-Benz traces its origins to 1886 and the creation of the first petrol-powered car by Karl Benz. It was formed in 1926 by the merger of Karl Benz's and Gottlieb Daimler's companies. Mercedes-Benz entered the Indian market in 1994 and has manufacturing plants in Pune and Chennai. It targets upper middle and upper class individuals seeking a luxury automobile and status symbol. While it faces strong competition and high costs, Mercedes-Benz maintains strategic advantages as the oldest luxury car manufacturer through innovative technology, quality service, and strong brand equity.
Mercedes-Benz originated in 1871 and is headquartered in Stuttgart, Germany. It produces automobiles, trucks, buses and engines. Some significant car models include the 1928 SSK, 1930 Grosser Mercedes, 1934 500K, 1936 260 D as the world's first diesel car, and the 1965 Mercedes Benz S Class. Strengths include its reputation for quality, innovation leadership including introducing diesel engines and ABS, and large research and development budget. Weaknesses are its expense and lack of suitability for Indian roads. Opportunities exist in hybrid vehicles, increased incomes in India, and competition issues at other brands. Threats include emissions regulations, competition from Renault-Volvo cooperation, and Tata
The document provides an executive summary and market research for a proposed new entry-level luxury electric vehicle called the Gen3 from Tesla Motors. It summarizes Tesla's current position and target markets, and outlines a strategy and marketing plan to introduce the Gen3 at an affordable price point of around $30,000 to expand Tesla's target market and increase market share in the EV/hybrid sector. Market research found increasing demand for electric vehicles and a growing luxury vehicle market focused on entry-level models priced around $40,000, suggesting an opportunity for Tesla to attract new customers with an affordable electric car.
What Mercedes could do to target the middle class customer....Fahad Ali
Mercedes is renowned for quality but is out of reach for most customers. To address the mass market without compromising its elite image, Mercedes could collaborate with Toyota to produce affordable, high-quality vehicles under a new brand name like "Toyota MRS" or "Toyota & Mercedes". This would allow Mercedes to attract more medium-income customers while keeping its existing luxury customers satisfied with their high-end models. The new brand could leverage Toyota's experience in affordable manufacturing and Mercedes' reputation for quality and comfort to appeal to price-conscious customers seeking better quality.
The document discusses the Mercedes-Benz S-Class sedan. It provides information on the target market for the S-Class, which is middle-aged people with middle to high incomes. The brand is not popular with young people due to its expensive price point. Mercedes-Benz targets both male and female buyers by designing cars to fit both genders. The document also discusses Mercedes-Benz's marketing and advertising strategies to promote the S-Class, including fashion festivals, social media advertising, and donations to charity to increase sales.
The Face Shop is a Korean cosmetics brand that started in 2003. It is now the third largest cosmetics company in Korea, operating over 800 shops domestically and 318 outlets internationally. The Face Shop positions itself as a natural cosmetics brand inspired by nature, using over 600 botanical extracts. It offers a variety of affordable skin, makeup, hair and body care products, as well as men's lines, to appeal to a wide consumer base. The target consumer persona is women aged 16-35 interested in Korean culture and beauty.
Mercedes Benz has a long history dating back to Carl Benz's Patent-Motorwagen in the late 19th century. The document discusses Masao Kozu's lifelong fascination and artwork focused on Mercedes Benz vehicles starting from seeing a 1937 320 Cabriolet B as a teenager. It then analyzes Mercedes Benz's strengths as a global luxury brand with strong design, safety patents and global manufacturing presence. Potential weaknesses around high maintenance costs and opportunities in electric vehicles are mentioned. Finally, threats from government policies, fuel prices, and intense global competition are reviewed.
This is a presentation on mercedes-benz.It has the histrory of mercedes , why it became popular and who are the target audience of mercedes in india and their upcoming models in india.
Mercedes-Benz traces its origins to 1886 and the creation of the first petrol-powered car by Karl Benz. It was formed in 1926 by the merger of Karl Benz's and Gottlieb Daimler's companies. Mercedes-Benz entered the Indian market in 1994 and has manufacturing plants in Pune and Chennai. It targets upper middle and upper class individuals seeking a luxury automobile and status symbol. While it faces strong competition and high costs, Mercedes-Benz maintains strategic advantages as the oldest luxury car manufacturer through innovative technology, quality service, and strong brand equity.
Mercedes-Benz originated in 1871 and is headquartered in Stuttgart, Germany. It produces automobiles, trucks, buses and engines. Some significant car models include the 1928 SSK, 1930 Grosser Mercedes, 1934 500K, 1936 260 D as the world's first diesel car, and the 1965 Mercedes Benz S Class. Strengths include its reputation for quality, innovation leadership including introducing diesel engines and ABS, and large research and development budget. Weaknesses are its expense and lack of suitability for Indian roads. Opportunities exist in hybrid vehicles, increased incomes in India, and competition issues at other brands. Threats include emissions regulations, competition from Renault-Volvo cooperation, and Tata
The document provides an executive summary and market research for a proposed new entry-level luxury electric vehicle called the Gen3 from Tesla Motors. It summarizes Tesla's current position and target markets, and outlines a strategy and marketing plan to introduce the Gen3 at an affordable price point of around $30,000 to expand Tesla's target market and increase market share in the EV/hybrid sector. Market research found increasing demand for electric vehicles and a growing luxury vehicle market focused on entry-level models priced around $40,000, suggesting an opportunity for Tesla to attract new customers with an affordable electric car.
Presentation on ford motor company (pom)Harsh_BITS
Ford Motor Company is an American automaker founded in 1903 that sells a broad range of vehicles worldwide, with strong sales growth and profitability. It has a large organizational structure focused on quality, innovation, and teamwork. Ford aims to expand green vehicle offerings and partnerships while reducing costs and entering new markets to address threats from competition and fluctuating exchange rates.
Mercedes-Benz segments the market based on geography (targeting metro cities), psychographics (targeting those wanting to show high class status), demographics (targeting middle-aged, high-income individuals), and behaviors (targeting those wanting quality and service for special occasions). It uses niche marketing to target the rich. Mercedes-Benz's positioning connects deeply with customers to command premium prices and position the brand as representing elegance through attitude.
This document provides an overview of Tesla's current market situation and brand strategy. It discusses Tesla's small but growing market share in the luxury sedan segment, outlines Tesla's three-stage plan to transition to mass market electric vehicles, and identifies Tesla's key challenge of generating more sales of the Model S to fund continued growth and expansion toward its long term goals.
Audi Marketing Segmentation PresentationPavan Goswami
Please Leave You Valuable Comments.
This Presentation is About Marketing and Branding of an Automotive Company. We Choose Audi for this Presentation.
Topics Are - Market Segmentation
Geographic Segmentation
Demographic Segmentation
Psycho-graphic Segmentation
Market Targeting
Market Positioning
The document provides an overview of Ford Motor Company's 2013 marketing plan for the new Ford Edge Hybrid vehicle. It includes an executive summary, introduction, company description highlighting Ford's values and history, strategic focus and goals. It also contains a situational analysis of trends, competitors and markets. The plan outlines objectives to introduce the 2013 Hybrid Edge in the US, China and Europe and increase hybrid vehicle sales and market share. Financial goals include boosting hybrid sales 100% and overall market share to 20% by 2013.
Disclaimer - None of the images used are mine. No copyright infringement intended. I will take down the slides if any person or entity will claim copyright rights over the images.
This document summarizes the turnaround of Mercedes-Benz India Ltd over three phases: 1) Watching for danger signals like decreasing sales and profitability. 2) Choosing a strategic turnaround by launching new models and entering joint ventures. 3) Implementing changes through asset reduction, revenue growth strategies, and cost cutting under new CEO leadership with management support. The success of turnarounds requires a viable business, resources, vision, management commitment, stakeholder buy-in, and confidence in the process.
Mercedes-Benz is a global luxury automaker known for high performance and high quality vehicles. Their vision is to be the first choice provider of financial services for customers and dealers. Their marketing strategy involves TV commercials targeted at middle aged, upper class viewers to promote brand awareness. Mercedes segments their market geographically, demographically, and psychographically focusing on urban professionals seeking prestige and luxury vehicles.
Mitsubishi Corporation is a Japanese multinational trading and investment company founded in 1954. It has over $100 billion in annual revenue and operates across a wide range of industries including energy, finance, and manufacturing. Within manufacturing, Mitsubishi Corporation is the parent company of Mitsubishi Motors Corporation, Japan's fourth largest automaker. Mitsubishi Motors manufactures and markets passenger cars and light commercial vehicles globally and operates a financial services division to support its sales. The document provides an overview of Mitsubishi Corporation and Mitsubishi Motors Corporation, including their histories, leadership, subsidiaries, and vehicle lineups.
Student Paper of Higher School of Economics, Russia
- Positioning statement
- Competitive Analysis in International Marketing: Tesla competitors in Russia, Brand Map.
- Understanding the consumer: market segmentation; Consumer Value Equation, Buyer Persona.
- PEST-analysis
- SWOT-analysis
- Porter five forces analysis
- Targeting
Audi aims to be the leading premium car brand globally. It uses a variety of marketing mix strategies including distinctive product design, integrated promotion campaigns, an indirect sales network of wholesalers and retailers, and market infiltration pricing to penetrate markets and attract buyers. The company promotes its "Truth in Engineering" slogan and brands its vehicles with four interlinked rings representing Audi's heritage. Racing is recommended to showcase Audi's performance and quality.
Market Segmentation and Targeting with BMWPankaj Chauhan
BMW is one of the best Luxury car Brand available throughout the globe. BMW target only selective segments. This PPT is about different types of Segments available in a genrel market and how BMW has target few of them
Please visit here for voice over presentation https://www.youtube.com/watch?v=_Ha614-Daug
Disclaimer: Lot of material is taken up from Internet. I was not able to give acknowledgment as i lost the track of sources. In case any copyright material used please let me know. Thank You
This document provides an overview of Mercedes-Benz, including its history as a German luxury automaker founded in 1926. It discusses Mercedes-Benz's global strength in manufacturing facilities across 6 continents, and its focus on emerging markets for growth. The document also performs a SWOT analysis, identifying strengths such as its broad product portfolio, but also weaknesses like high servicing costs. Opportunities include growing demand in developing nations, while threats include competition from automakers like Audi and BMW. It then analyzes Mercedes-Benz's marketing strategy using the 4 P's framework, covering its luxury products, pricing, promotion tactics, and global dealer network.
An insight about how BMW successfully segmented its consumers and evolved into a stronger brand. Made during the marketing internship under Prof. Sameer Mathur, IIM Lucknow
Mercedes-Benz is a leading global luxury automaker founded in 1926 in Germany. It traces its origins to Karl Benz's creation of the first petrol-powered car in 1886. Mercedes-Benz is known for producing high-quality, prestigious vehicles and is especially popular among wealthy, well-educated customers who are loyal to the brand. The Mercedes-Benz three-pointed star logo is one of the most recognized emblems in the world.
Segmentation,Targeting and Positioning (STP) of Jaguar CarsGaurav Sharma
This document provides a project report on Jaguar Cars submitted by a group of students at GOA Institute of Management. It includes an introduction to Jaguar's history and current ownership. It then discusses Jaguar's segmentation, targeting, positioning, and evolution of its STP strategies in the Indian market. It analyzes how political, economic, social, technological and other environmental factors have influenced Jaguar's strategies. Finally, it evaluates the attractiveness of the luxury car industry for Jaguar in terms of suppliers' bargaining power.
The document discusses the new 2018 Mercedes-AMG GT R. Key details include:
- It is Mercedes-AMG's new flagship sports car designed for track performance.
- It has a handcrafted 4.0L V8 biturbo engine producing 577 hp and 516 lb-ft of torque.
- Advanced technologies like active rear-axle steering and AMG TRACTION CONTROL enable precise handling.
- Aggressive aerodynamics and styling contribute to its track-focused performance.
The BMW X3 is targeted towards consumers in the later stages of the family life cycle:
- Married with teenage children (Full Nest II): The X3 provides enough space and cargo capacity for an active family with older children, while still being a smaller SUV suitable for families with teenagers.
- Empty nest I (Older married couples, no children living with them, still working): As children move out, the X3 offers a versatile and luxurious vehicle that can be used for both family and personal needs.
- Empty nest II (Older married couples, no children living with them, retired): The X3 appeals to older consumers looking to downsize from a larger vehicle but still want the comfort, prestige and
The document discusses Michelin, a tire and mobility company. It provides details on Michelin's history, leadership, organizational structure, strategic business units which include tires, tourism and navigation products. There is an analysis of Michelin's tire production rates, manufacturing process, internal financial situation, and external competitive environment. Key competitors in the tire industry like Bridgestone and Goodyear are also discussed. Government regulations and the potential for new competitors entering the Asian market are noted as influences in Michelin's industry environment.
This document discusses research on consumer behavior and perceptions regarding luxury automobiles. It notes that while much research has focused on low-priced vehicle segments, luxury vehicles involve greater influence of brand image and individual buyer preferences. The document also examines differences between fleet/business buyers and retail/individual buyers, and how attitudes and importance of various vehicle attributes can differ between the two groups. Finally, it proposes a set of attitude variables that may influence potential luxury vehicle buyers, such as reliability, quality, durability, and style.
This document discusses research on consumer behavior and perceptions regarding luxury automobiles. It notes that while much research has focused on low-priced vehicle segments, luxury vehicles involve greater influence of brand image and individual buyer preferences. The document also examines differences between fleet/business buyers and retail/individual buyers, and how attitudes and importance of various vehicle attributes can differ between the two groups. Finally, it proposes a set of attitude variables that may influence potential luxury vehicle buyers, such as reliability, quality, and style.
Presentation on ford motor company (pom)Harsh_BITS
Ford Motor Company is an American automaker founded in 1903 that sells a broad range of vehicles worldwide, with strong sales growth and profitability. It has a large organizational structure focused on quality, innovation, and teamwork. Ford aims to expand green vehicle offerings and partnerships while reducing costs and entering new markets to address threats from competition and fluctuating exchange rates.
Mercedes-Benz segments the market based on geography (targeting metro cities), psychographics (targeting those wanting to show high class status), demographics (targeting middle-aged, high-income individuals), and behaviors (targeting those wanting quality and service for special occasions). It uses niche marketing to target the rich. Mercedes-Benz's positioning connects deeply with customers to command premium prices and position the brand as representing elegance through attitude.
This document provides an overview of Tesla's current market situation and brand strategy. It discusses Tesla's small but growing market share in the luxury sedan segment, outlines Tesla's three-stage plan to transition to mass market electric vehicles, and identifies Tesla's key challenge of generating more sales of the Model S to fund continued growth and expansion toward its long term goals.
Audi Marketing Segmentation PresentationPavan Goswami
Please Leave You Valuable Comments.
This Presentation is About Marketing and Branding of an Automotive Company. We Choose Audi for this Presentation.
Topics Are - Market Segmentation
Geographic Segmentation
Demographic Segmentation
Psycho-graphic Segmentation
Market Targeting
Market Positioning
The document provides an overview of Ford Motor Company's 2013 marketing plan for the new Ford Edge Hybrid vehicle. It includes an executive summary, introduction, company description highlighting Ford's values and history, strategic focus and goals. It also contains a situational analysis of trends, competitors and markets. The plan outlines objectives to introduce the 2013 Hybrid Edge in the US, China and Europe and increase hybrid vehicle sales and market share. Financial goals include boosting hybrid sales 100% and overall market share to 20% by 2013.
Disclaimer - None of the images used are mine. No copyright infringement intended. I will take down the slides if any person or entity will claim copyright rights over the images.
This document summarizes the turnaround of Mercedes-Benz India Ltd over three phases: 1) Watching for danger signals like decreasing sales and profitability. 2) Choosing a strategic turnaround by launching new models and entering joint ventures. 3) Implementing changes through asset reduction, revenue growth strategies, and cost cutting under new CEO leadership with management support. The success of turnarounds requires a viable business, resources, vision, management commitment, stakeholder buy-in, and confidence in the process.
Mercedes-Benz is a global luxury automaker known for high performance and high quality vehicles. Their vision is to be the first choice provider of financial services for customers and dealers. Their marketing strategy involves TV commercials targeted at middle aged, upper class viewers to promote brand awareness. Mercedes segments their market geographically, demographically, and psychographically focusing on urban professionals seeking prestige and luxury vehicles.
Mitsubishi Corporation is a Japanese multinational trading and investment company founded in 1954. It has over $100 billion in annual revenue and operates across a wide range of industries including energy, finance, and manufacturing. Within manufacturing, Mitsubishi Corporation is the parent company of Mitsubishi Motors Corporation, Japan's fourth largest automaker. Mitsubishi Motors manufactures and markets passenger cars and light commercial vehicles globally and operates a financial services division to support its sales. The document provides an overview of Mitsubishi Corporation and Mitsubishi Motors Corporation, including their histories, leadership, subsidiaries, and vehicle lineups.
Student Paper of Higher School of Economics, Russia
- Positioning statement
- Competitive Analysis in International Marketing: Tesla competitors in Russia, Brand Map.
- Understanding the consumer: market segmentation; Consumer Value Equation, Buyer Persona.
- PEST-analysis
- SWOT-analysis
- Porter five forces analysis
- Targeting
Audi aims to be the leading premium car brand globally. It uses a variety of marketing mix strategies including distinctive product design, integrated promotion campaigns, an indirect sales network of wholesalers and retailers, and market infiltration pricing to penetrate markets and attract buyers. The company promotes its "Truth in Engineering" slogan and brands its vehicles with four interlinked rings representing Audi's heritage. Racing is recommended to showcase Audi's performance and quality.
Market Segmentation and Targeting with BMWPankaj Chauhan
BMW is one of the best Luxury car Brand available throughout the globe. BMW target only selective segments. This PPT is about different types of Segments available in a genrel market and how BMW has target few of them
Please visit here for voice over presentation https://www.youtube.com/watch?v=_Ha614-Daug
Disclaimer: Lot of material is taken up from Internet. I was not able to give acknowledgment as i lost the track of sources. In case any copyright material used please let me know. Thank You
This document provides an overview of Mercedes-Benz, including its history as a German luxury automaker founded in 1926. It discusses Mercedes-Benz's global strength in manufacturing facilities across 6 continents, and its focus on emerging markets for growth. The document also performs a SWOT analysis, identifying strengths such as its broad product portfolio, but also weaknesses like high servicing costs. Opportunities include growing demand in developing nations, while threats include competition from automakers like Audi and BMW. It then analyzes Mercedes-Benz's marketing strategy using the 4 P's framework, covering its luxury products, pricing, promotion tactics, and global dealer network.
An insight about how BMW successfully segmented its consumers and evolved into a stronger brand. Made during the marketing internship under Prof. Sameer Mathur, IIM Lucknow
Mercedes-Benz is a leading global luxury automaker founded in 1926 in Germany. It traces its origins to Karl Benz's creation of the first petrol-powered car in 1886. Mercedes-Benz is known for producing high-quality, prestigious vehicles and is especially popular among wealthy, well-educated customers who are loyal to the brand. The Mercedes-Benz three-pointed star logo is one of the most recognized emblems in the world.
Segmentation,Targeting and Positioning (STP) of Jaguar CarsGaurav Sharma
This document provides a project report on Jaguar Cars submitted by a group of students at GOA Institute of Management. It includes an introduction to Jaguar's history and current ownership. It then discusses Jaguar's segmentation, targeting, positioning, and evolution of its STP strategies in the Indian market. It analyzes how political, economic, social, technological and other environmental factors have influenced Jaguar's strategies. Finally, it evaluates the attractiveness of the luxury car industry for Jaguar in terms of suppliers' bargaining power.
The document discusses the new 2018 Mercedes-AMG GT R. Key details include:
- It is Mercedes-AMG's new flagship sports car designed for track performance.
- It has a handcrafted 4.0L V8 biturbo engine producing 577 hp and 516 lb-ft of torque.
- Advanced technologies like active rear-axle steering and AMG TRACTION CONTROL enable precise handling.
- Aggressive aerodynamics and styling contribute to its track-focused performance.
The BMW X3 is targeted towards consumers in the later stages of the family life cycle:
- Married with teenage children (Full Nest II): The X3 provides enough space and cargo capacity for an active family with older children, while still being a smaller SUV suitable for families with teenagers.
- Empty nest I (Older married couples, no children living with them, still working): As children move out, the X3 offers a versatile and luxurious vehicle that can be used for both family and personal needs.
- Empty nest II (Older married couples, no children living with them, retired): The X3 appeals to older consumers looking to downsize from a larger vehicle but still want the comfort, prestige and
The document discusses Michelin, a tire and mobility company. It provides details on Michelin's history, leadership, organizational structure, strategic business units which include tires, tourism and navigation products. There is an analysis of Michelin's tire production rates, manufacturing process, internal financial situation, and external competitive environment. Key competitors in the tire industry like Bridgestone and Goodyear are also discussed. Government regulations and the potential for new competitors entering the Asian market are noted as influences in Michelin's industry environment.
This document discusses research on consumer behavior and perceptions regarding luxury automobiles. It notes that while much research has focused on low-priced vehicle segments, luxury vehicles involve greater influence of brand image and individual buyer preferences. The document also examines differences between fleet/business buyers and retail/individual buyers, and how attitudes and importance of various vehicle attributes can differ between the two groups. Finally, it proposes a set of attitude variables that may influence potential luxury vehicle buyers, such as reliability, quality, durability, and style.
This document discusses research on consumer behavior and perceptions regarding luxury automobiles. It notes that while much research has focused on low-priced vehicle segments, luxury vehicles involve greater influence of brand image and individual buyer preferences. The document also examines differences between fleet/business buyers and retail/individual buyers, and how attitudes and importance of various vehicle attributes can differ between the two groups. Finally, it proposes a set of attitude variables that may influence potential luxury vehicle buyers, such as reliability, quality, and style.
This document discusses research on consumer behavior and perceptions regarding luxury automobiles. It notes that while much research has focused on low-priced vehicle segments, luxury vehicles involve greater influence of brand image and individual buyer preferences. The document also examines differences between fleet/business buyers and retail/individual buyers, and how attitudes and importance of various vehicle attributes can differ between the two groups. Finally, it proposes a set of attitude variables that may influence potential luxury vehicle buyers, such as reliability, quality, and style.
This document discusses consumer behavior and perceptions of luxury automobiles. It begins by providing background on the global luxury car market and notes differences between business and retail luxury car buyers. The document then examines research on luxury car customers and identifies gaps in understanding customers' individual differences and non-functional motivations for purchase. Customer attitudes and how luxury cars can be segmented by brand or price/characteristics are also discussed.
BMW has long focused on innovation and premium vehicles to attract customers. Over the years, BMW expanded its model offerings, production capabilities, and global markets. It tailored its products and marketing to target high-income professional customers seeking status and luxury. While this selective strategy helped BMW succeed in growing its premium brand, it also made the company more vulnerable during economic downturns when fewer customers could afford its vehicles.
The document outlines the history and operations of Mercedes-Benz, including its origins in 1886 in Germany, establishment in India in 1994, and vision to be pioneering and innovative in sustainable mobility. It discusses Mercedes-Benz's model range, competition from BMW, Audi and others, and use of cloud technology. The summary provides an overview of key details about Mercedes-Benz.
Mercedes-Benz used several effective marketing strategies to succeed in the US market, including segmenting the market geographically, demographically, and psychographically. They targeted upper middle class individuals over 40 and younger people aged 25-40. Mercedes-Benz also focused on individuality and used celebrity endorsements and social media to appear more fashionable to younger consumers. They wisely chose TV commercials to target older viewers and social media like Facebook, Instagram, and YouTube to engage younger audiences. These strategies helped Mercedes-Benz increase its market share in the US.
The document discusses launching the Smart forfour small car in China. It provides background on China's automobile industry, including highlights of the government's 11th Five-Year Plan to develop own brands and green technology. Market research was conducted in Shanghai and Shenzhen, with findings showing potential customers are interested in the Smart's environmental and fuel efficiency features if priced at RMB188,000. The launch plan targets young female professionals in these cities, emphasizing the car's Mercedes-Benz heritage, performance and customizable appearance.
The document analyzes Jaguar's strategy in introducing its new X-Type vehicle into the low-price luxury vehicle segment. Jaguar hopes to capture younger customers and increase loyalty through this strategy, as well as increase revenues and margins through aggressive growth. However, Jaguar has faced some problems with poor reviews of quality, producing more vehicles than demanded, and aggressive pricing hurting its brand image. The document recommends Jaguar maintain autonomy, improve production quality to attract customers and leave a good impression, and pursue growth in line with demand to limit discounting. If these measures are enacted, Jaguar will be successful growing sales, attracting new customers, and maintaining its brand image.
- Daimler AG is a leading global automaker comprised of Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses, and Daimler Financial Services. It produces premium cars and commercial vehicles with global reach.
- In 2009, Daimler generated €78.9 billion in revenue, with the largest markets being Western Europe, NAFTA, and Asia. Mercedes-Benz has experienced strong sales growth in markets like China, Australia, and Brazil in 2010.
- Daimler's major competitors include BMW, Audi, Toyota, and Volkswagen. Mercedes-Benz is focusing on enhancing its brand positioning through consistent branding
The Hyundai Genesis targets baby boomers and high tech professionals with its class-leading performance and fuel efficiency at a lower price point than competitors like the Lexus and Infinity. Intense competition in the luxury sedan market applies pricing pressure as automakers use incentives to attract customers. However, Hyundai has gained market share through high quality, safety, and value. The emergence of foreign automakers like Hyundai also increases competition, while high gas prices could threaten large vehicle sales if customers seek alternatives.
The document provides information about the Toyota Camry Hybrid vehicle. It discusses the history of Toyota and the introduction of the Camry Hybrid in 2006. Some key figures are presented, such as the Camry Hybrid accounting for 15% of Camry sales and Toyota having nearly 80% of the hybrid vehicle market share. A SWOT analysis is also included. The document concludes with discussions of target demographics, positioning, and retail communication strategies.
In the Year of the Horse, there is no letting up in China’s passion for luxury horsepower. Despite concerns over economic slowdowns and government regulations, the number of new manufacturers and new models competing in this sector continues to grow.
In ‘Auto insights: the luxe edition’, we’ll take you on a tour of the high-end of the auto market and the changing meaning of luxury itself, including:
The document provides a history of Daimler-Benz and Chrysler, including their founding, brands, and operations. It then discusses their 1999 merger, reasons for the merger including expanding market share and reducing costs. However, the merger ultimately failed due to cultural clashes between the German and American companies and mismanagement. Key factors in the failure included differences in working styles and compensation between Eastern and Western cultures, a lack of due diligence assessing Chrysler's competitiveness, and the German managers not allowing American autonomy.
The document discusses current and future marketing strategies for BMW. It provides details on BMW's business segments, brands, model series, sales figures, target markets, competitors, and marketing mix. Regarding BMW's marketing mix, it outlines the company's product portfolio and life cycles, competitive pricing strategies, global dealer network, and advertising campaigns focusing on slogans like "The Ultimate Driving Machine". It analyzes BMW's segmentation, targeting, positioning, and brand recognition as key to its marketing success.
The document discusses current and future marketing strategies for BMW. It provides details on BMW's business segments, brands, model series, sales figures, target markets, competitors, and marketing mix. Regarding BMW's marketing mix, the document outlines BMW's product portfolio and life cycles, pricing strategy, distribution network, and promotional campaigns/slogans. It emphasizes BMW's focus on the driving experience, quality, and premium brand image in its marketing strategies.
Audi has many strengths including its strong brand reputation, innovative technology, and global manufacturing operations. However, it faces weaknesses such as higher costs relative to larger competitors. Opportunities exist in emerging markets and green technologies, while threats include competition, commodity price fluctuations, and regulations.
This document summarizes and compares the marketing strategies of 4 luxury car companies: Mercedes Benz, Audi, Lexus, and BMW. It discusses their company profiles, segmentation, targeting, and positioning. It also reviews their use of marketing promotion in social media and their overall marketing mixes, including their products, pricing, placement, promotion, and people strategies. The document aims to evaluate and compare the marketing mixes among these top luxury car brands.
This chapter discusses the research methodology used for the study. It begins with an exploratory research approach using both primary and secondary data collection. Primary data was collected through questionnaires administered to 100 respondents in New Delhi. Secondary data sources included books and websites. Descriptive research involved defining the problem, identifying needed information, developing instruments, determining sampling, collecting data, analyzing information, and making generalizations. Potential errors from interviewers, questionnaires, respondents, and sampling are also outlined. The chapter establishes the framework for evaluating and reevaluating the research.
Experience Mazda Zoom Zoom Lifestyle and Culture by Visiting and joining the Official Mazda Community at http://www.MazdaCommunity.org for additional insight into the Zoom Zoom Lifestyle and special offers for Mazda Community Members.
Anny Serafina Love - Letter of Recommendation by Kellen Harkins, MS.AnnySerafinaLove
This letter, written by Kellen Harkins, Course Director at Full Sail University, commends Anny Love's exemplary performance in the Video Sharing Platforms class. It highlights her dedication, willingness to challenge herself, and exceptional skills in production, editing, and marketing across various video platforms like YouTube, TikTok, and Instagram.
buy old yahoo accounts buy yahoo accountsSusan Laney
As a business owner, I understand the importance of having a strong online presence and leveraging various digital platforms to reach and engage with your target audience. One often overlooked yet highly valuable asset in this regard is the humble Yahoo account. While many may perceive Yahoo as a relic of the past, the truth is that these accounts still hold immense potential for businesses of all sizes.
The 10 Most Influential Leaders Guiding Corporate Evolution, 2024.pdfthesiliconleaders
In the recent edition, The 10 Most Influential Leaders Guiding Corporate Evolution, 2024, The Silicon Leaders magazine gladly features Dejan Štancer, President of the Global Chamber of Business Leaders (GCBL), along with other leaders.
Unveiling the Dynamic Personalities, Key Dates, and Horoscope Insights: Gemin...my Pandit
Explore the fascinating world of the Gemini Zodiac Sign. Discover the unique personality traits, key dates, and horoscope insights of Gemini individuals. Learn how their sociable, communicative nature and boundless curiosity make them the dynamic explorers of the zodiac. Dive into the duality of the Gemini sign and understand their intellectual and adventurous spirit.
At Techbox Square, in Singapore, we're not just creative web designers and developers, we're the driving force behind your brand identity. Contact us today.
Zodiac Signs and Food Preferences_ What Your Sign Says About Your Tastemy Pandit
Know what your zodiac sign says about your taste in food! Explore how the 12 zodiac signs influence your culinary preferences with insights from MyPandit. Dive into astrology and flavors!
The Evolution and Impact of OTT Platforms: A Deep Dive into the Future of Ent...ABHILASH DUTTA
This presentation provides a thorough examination of Over-the-Top (OTT) platforms, focusing on their development and substantial influence on the entertainment industry, with a particular emphasis on the Indian market.We begin with an introduction to OTT platforms, defining them as streaming services that deliver content directly over the internet, bypassing traditional broadcast channels. These platforms offer a variety of content, including movies, TV shows, and original productions, allowing users to access content on-demand across multiple devices.The historical context covers the early days of streaming, starting with Netflix's inception in 1997 as a DVD rental service and its transition to streaming in 2007. The presentation also highlights India's television journey, from the launch of Doordarshan in 1959 to the introduction of Direct-to-Home (DTH) satellite television in 2000, which expanded viewing choices and set the stage for the rise of OTT platforms like Big Flix, Ditto TV, Sony LIV, Hotstar, and Netflix. The business models of OTT platforms are explored in detail. Subscription Video on Demand (SVOD) models, exemplified by Netflix and Amazon Prime Video, offer unlimited content access for a monthly fee. Transactional Video on Demand (TVOD) models, like iTunes and Sky Box Office, allow users to pay for individual pieces of content. Advertising-Based Video on Demand (AVOD) models, such as YouTube and Facebook Watch, provide free content supported by advertisements. Hybrid models combine elements of SVOD and AVOD, offering flexibility to cater to diverse audience preferences.
Content acquisition strategies are also discussed, highlighting the dual approach of purchasing broadcasting rights for existing films and TV shows and investing in original content production. This section underscores the importance of a robust content library in attracting and retaining subscribers.The presentation addresses the challenges faced by OTT platforms, including the unpredictability of content acquisition and audience preferences. It emphasizes the difficulty of balancing content investment with returns in a competitive market, the high costs associated with marketing, and the need for continuous innovation and adaptation to stay relevant.
The impact of OTT platforms on the Bollywood film industry is significant. The competition for viewers has led to a decrease in cinema ticket sales, affecting the revenue of Bollywood films that traditionally rely on theatrical releases. Additionally, OTT platforms now pay less for film rights due to the uncertain success of films in cinemas.
Looking ahead, the future of OTT in India appears promising. The market is expected to grow by 20% annually, reaching a value of ₹1200 billion by the end of the decade. The increasing availability of affordable smartphones and internet access will drive this growth, making OTT platforms a primary source of entertainment for many viewers.
B2B payments are rapidly changing. Find out the 5 key questions you need to be asking yourself to be sure you are mastering B2B payments today. Learn more at www.BlueSnap.com.
Call 8867766396 Satta Matka Dpboss Matka Guessing Satta batta Matka 420 Satta...
A Class Consumer Behaviour
1. John Paul Mifsud
Mercedes A-class - A consumer Behaviour approach
CCT 5580 Consumer & Organisational Buying Behaviour
2. Introduction
The following analysis will provide an insight on how consumers behave and relate to the
Mercedes A-class. The automobile was developed by Daimler-Benz. in 1997 after the
company decided to launch a small, compact car that would fit within the product
portfolio. Unlike the other Mercedes classes currently on the market, this car strikes the
consumer as being utterly unique in comparison. It was the smallest Mercedes ever
introduced in the market. The A-class was designed to be one of the safest and compact
cars on the road, particularly on the narrow roads of crowded cities in Europe. The A-
class was a response to both the changes in market trends and the consumers’ needs and
wants (Benetton et Al. 1997).
Market Environment & Competitors
3. The Compact Multi Purpose Vehicle (MPV) market can be divided into two major
segments: mainly the Premium market composed of Mercedes A-class, the BMW 1 series
and the Audi A3; and the mass market with a large volume of brands such as Renault
Scenic, Mazda 3, Ford Focus C-Max and others.
The compact MPV market is one of the most saturated markets in the automobile
industry (Colley, 2004). On the other hand only a few brands have ventured in the
premium segment of MPVs. Of all the vehicle segments, the compact MPV registered
the biggest explosion in new car registrations between 2000 and 2007. The increase in
sales by 56,800 during this period had a reversal effect on the market of used cars
(Compact MPVs, 2008). The Premium market of the MPVs is relatively small but has
the potential to grow due to increasing standard of living and expectations of
commodities, the urban lifestyle and limited parking space and the governments’ (EU &
US) policy favouring incentives for low emission cars.
The A-class, the BMW 1 series and the Audi A3 share similar prices with the highest
version falling under the £20,000 (Audi A3 vs BMW 116i vs Mercedes A170, N.D.) The
Mercedes A-class is not targeted to the North American market. On the other hand the
BMW 1series and the Audi A3 have penetrated the market (Benetton et Al. 1997). The
Mercedes A-class is expected to enter the Northern American Market in 2011 (Aziz,
2008). There is a strong competition between BMW 1 series (Marketing Plan – BMW
1-series in Germany, N.D.) and the Audi A3 (Audi A3 review, 2007) since they both
target a similar segment. Their target groups are the educated younger generation which
are sports oriented and wish to purchase a premium ‘affordable’ car. As we shall discuss,
the Mercedes A-class is different from its competitors (The Death of America’s “Big
Car” Culture: GM Gives Up on Hummers, 2008).
Segmentation and Market Segment
4. The A-class was designed to a particular market segment. In order to identify their target
market Daimler-Benz made use of hybrid segmentation approach by creating
psychographic-demographic profiles. The main variables considered were lifestyle,
income, status, class, geography and age. As highlighted in table 1 (Assignment MMG,
2006) the A-class target consumers in the middle class (middle managerial, professional
or administrative jobs and the lower middle class (supervisory or clerical jobs, junior
management). By applying Mc-Cann Erikson lifestyle Model one notices that the
customers within this segment want to be contemporary to win approval. They act as
indicators of social change, but on the other hand they imitate the flow. Using the Target
Group Index classification developed by Geoff Wicken (Assignment MMG, 2006) one
can conclude that this car is targeted to outgoing fun lovers characterized as magazine
and newspaper oriented, love traveling, entertaining people at home, eating out and
above-average viewers of TV.
Unlike most Mercedes Models who are targeted for affluent mature customers, the A-
class is versatile, capping customers ranging from the age of 25 to 45(Assignment MMG,
2006). In fact the first model of the A-class (1997) was also targeting the late baby
boomers cohort desiring a small, practical and compact car that reflects their mentality
(Benetton et Al. 1997). Moreover this car is targeted towards females. The statistics
show that the target segment is composed of 64% females, 30% males and 20% mixed
over 25years. The A-class is an attempt to attract young, but especially female customers
to Mercedes since their customers are mainly men (Assignment MMG, 2006).
The A-Class is specifically designed to capture the market of professionals over 25,
couples with a small family or a two person household. These consumers would normally
have to wait until financial circumstances improve before they would be able to purchase
a 'luxury car'. The A-Class is also positioned as a desirable second car for those who are
already Mercedes owners (Benetton et Al. 1997).
Geographically the car was marketed mainly for the European market. The compactness
of a city car and the energy efficiency of the A-class make it a perfect match for
European urban cities. On the other hand the Asian market seems to favour only the
5. extra-luxury models such as the S-class and CL-class. As stated earlier, the A-class was
not introduced in North America since their market is dominated by local MPVs such as
the Chevy Aveo. Furthermore, the American automobile culture is oriented towards
expensive big cars. Mercedes is perceived to be a super luxurious car. Currently, the
introduction of the A-class in the US market would harm the brand image, although the
market is changing due to increasing oil prices.
Cultural implication-s UK & Thailand
A comparative study was conducted by Anurit et al. (N.D) on how consumers’ perception
of Luxury automobiles differs between the UK and Thailand. They argue that while
Mercedes cars are more expensive than BMW in every segment in both countries, BMW
is more popular in the UK, while Mercedes is traditionally more popular in Thailand.
From an economic point of view, Mercedes should appeal more to a rich country such as
UK and vice-versa.
They argue that the reason behind this discrepancy is due to the symbolic benefits
associated with the brands in both countries. The image of BMW as a prestigious,
individualistic car appeals more to the successful professionals in the U.K. The image
enhanced by Mercedes in Thailand is that the car is very expensive, luxurious and
prestigious. The status symbol associated with Mercedes attracts more the Thai market.
This image is further enhanced by the Thai royal family sitting in the Mercedes
limousine. Purchasing a Mercedes in Thailand is an expression of power, wealth and
status while purchasing a BMW in the UK is an expression of achievement. This value is
attributed more value in the U.K than in Thailand. Metaphorically we can argue that ‘UK
luxury car customers drive the cars’ but ‘Thai luxury car customers let the cars drive
them’ (Anurit et. al, N.D.). Through this study one can understand why the Mercedes A-
class, as an expensive but affordable car, did not find its roots in the Asian market.
Brand Name and Positioning
6. Brand name awareness is a gateway for entry into consumers' consideration set. ‘A well-
known brand name enhances initial reaction, interest, and willingness to consider or try
the product’ (Benetton et al., 1997). To prevent any negative reactions from the public,
Mercedes begun to promote the A-Class a year prior to its launch by stressing that this
car continues to uphold the brand image of Mercedes as a luxury car. Furthermore, in
order to maintain and protect the exclusive image of Mercedes, they limited the A-Class
production to only 200,000(Benetton et al., 1997).
As illustrated in figure 1-3, the car is mainly advertised with other Mercedes models. The
marketing concept behind these adverts is to inform potential customers that the A-class
is not different from the other cars in the Mercedes portfolio, ‘it is the same posy car but
a different segment’. The use of Mercedes’ well-recognized brand name on the A-Class
automatically provides name recognition and facilitates the communication process
(Benetton et Al., 1997). One can therefore claim that the strategy applied by Mercedes
for the A-class is umbrella positioning. If this model was marketed separately, like in the
case of the Smart model, most probably it would have been just one of the many MPV in
the market and possibly fail.
Brand Personality
Brand personality is a set of human characteristics associated with a brand. These
characteristics are important because they form an overall concept of what to expect from
the brand (Brand Personality, 2008). Applying Aaker’s brand personality framework
(Schiffman & Kanuk, 2004), Mercedes fall within two main categories, mainly
competence and sophistication. The luxury attributes associated with the company makes
the brand appear to be upper class and charming. Furthermore attributes such as
reliability, intelligence and successfulness can also be attributed to Mercedes due to its
successful history in producing high-end quality automobiles.
The classical Mercedes, such as the E-class, are perceived as wealthy, stylish, traditional,
masculine and snobbish. The A-class personality differs in some aspects from the others.
The A-class is innovative, unique, feminine, modern, fashionable and less sophisticated
than the classical Mercedes.
7. The assignment of a personality/ celebrity (user imagery) to a brand is a powerful driver
since it makes it easier for the consumer to personify the brand (Brand Personality, 2008).
Mercedes used Celebrity endorsers Christina Aguilera and Giorgio Armani to promote
the brand. Giorgio Armani is associated with fashion and design while Christina
Aguilera with courage, success and perseverance. Christina Aguilera claimed “I’ve
always followed my own star, and I succeeded in finding my own style. That’s my recipe
for success, and it’s also the message of this song and of the new A-Class” (Brand
Personality, 2008).
Needs & Motivations
The choice of purchasing a product-service is triggered by our needs and motivations.
Maslow's Hierarchy model of needs provides a framework into understanding why
people buy and consume certain products (Schiffman & Kanuk, 2004). The purchase of a
Mercedes A-class is triggered by the need to satisfy the social and ego-needs. The
Mercedes A-class is perceived to be a premium MPV for an up-scale market. A
consumer might decide to purchase such a car to satisfy his needs for affection, respect
and sense of belonging to a group. The car could serve as means to integrate the
individual in a particular social group or class (end). It could also serve to boost his/her
ego needs to gain prestige, status, self esteem.
Further to this model one can apply Mc Clelland´s theory of learned needs (Schiffman &
Kanuk, 2004). The purchase of this relatively expensive car can serve as a manifestation
of wealth. Wealth and power are interdependent (Haralombus & Holborn, 2000). The
purchase of this car can be triggered by the need to exercise power and control over
others. It can also be motivated by the desire to manifest success and achievement.
Similar to Maslow’s model, affiliation suggest that behaviour is strongly influenced by
the desire for friendship, acceptance and belonging (Schiffman & Kanuk, 2004).
Consumer Personality
8. Personality has a fundamental role in influencing consumers in the decision making
process. The Freudian Psychographic theory suggests that unconscious needs and drives,
particularly sexual and biological, shape our personality and motivation (Schiffman &
Kanuk, 2004). In this context the need to buy the A-class could be influenced by the
need to receive affection, attention, love and to satisfy the sexual drives. On the other
hand if one applies the traits theory, the A-class appeals to consumers who have a
positive approach to innovation and have a sense of open-mindedness to new products.
Moreover this car applies to consumers with a high sense of uniqueness and who prefer
an environment crammed with novel, complex and unusual experiences (Schiffman &
Kanuk, 2004).
Behaviour & Attitudes
Our decisions are also a product of our attitudes. An individual might have a positive
experience, for example driving his friend’s A-class, which in turn affects his attitude
towards Mercedes and changes his behaviour in purchasing an automobile. Attitudes are
not constant and change over time since they are a result of experiences (Schiffman &
Kanuk, 2004). A car crash might change the attitude towards the brand and one might
decide to exclude Mercedes as an option when buying a car.
Learning Process
The A-class was a new product both for the market and the company. In order to attract
consumers in buying the ‘new’ A-class, the company had to lead the consumers
(audience) in learning about the product. Consumers do not only learn through repeated
trails but also through cognitive learning by developing mental associations. These
associations are retrieved from the long term memory and assist the consumer in the
decision making process (Schiffman & Kanuk, 2004). As illustrated in figure 4 (Swiss
Knife Car, N.D), Mercedes associated the Swiss knife with the A-class. The multi
functions of the Swiss knife represent the versatility of the A-class. The message
conveyed is that the car is not just another MPV but it is a premium lifestyle car for those
who are artistic, sportive and adventurous. For the launch of the new version of the A-
class (2004), a song (Hello) was composed by Christina Aguilera exclusively for the car
9. (Christina Aguilera and Giorgio Armani - Prominent ambassadors of the “Follow your
own star” motto, 2004). This type of promotion enhances mental associations between
the car and artist/ song.
Perceived Price, Quality
In the Automobile industry there is a strong relationship between price and quality.
Usually price is perceived as an indicator of quality (Schiffman & Kanuk, 2004).
Mercedes is perceived as an expensive car with high quality. The traditional Mercedes
customer is not price sensitive (S-class AMG) as illustrated in table 2. One can argue the
typical customers who purchase an A-class are less price sensitive than those purchasing
a mass MPV version, such as the Mazda 3, but are still sensitive to price. The A-class is
targeting a younger market with limited resources. Typically the customer would
rationalize the high cost by justifying that he/she is buying a premium affordable luxury,
i.e. a Mercedes fit to his budget.
Normative Influence and Reference Groups
According to Bournes (as cited in Benetton et al., 1997) Product-Brand Taxonomy, ‘the
purchasing of luxury products that portray highly visible brand names, often reflect a
high level of personal influence, predominantly in the forms of reference groups and
normative influence’. Consumers, particularly those conscious of their self image, rely
heavily upon reference groups.
The purchasing of an automobile is one in which a peer's opinion, often determines what
brand is actually purchased, more so than the attributes of the car itself (Benetton et al.,
1997). As stated earlier, purchasing an A-class might lead to a desired level of social
acceptance among the peers.
The family is also an important reference group in purchasing a car. If the family has a
tradition of buying Mercedes, it will influence the other members to opt for a Mercedes,
especially if they had a positive experience with the car. We tend to trust the family’s
advice. On the other hand, like the Oldsmobile, Mercedes can be perceived as the old
traditional ‘daddy’s car’ and typically the young want to disassociate themselves from
10. their parents image. The A-class might be a successful move into providing a ‘fresh’ and
innovative car, appealing to a younger audience while maintaining the luxury image.
Negative Influencers- Elk test (moose)
Experts are key influencers when it comes to purchasing an automobile since we tend to
trust their judgment. If they rate a car as not worth the money, we tend to conform to
their opinion. While key influencers can influence us positively to buy a product/service,
they can also influence us negatively.
The Mercedes A-Class suffered from a damaged reputation after five Swedish motoring
journalists managed to flip over the Mercedes A-class. This meant that the car failed the
prestigious elk test, also known as the 'moose test'. (Marketing-1_2_assignment, 2009).
The embarrassing publicity was a shock for the prestigious company apart from the fact
that the Swedish market got hostile towards the car. The negative effect was catastrophic
and this widely reported handling shortcoming represented a major crisis for the
company, well-known for its quality and safety standards. The influence these experts
exerted was so huge that the company had to stop all deliveries and redesign the chassis
(Menke-Gluckert, 2008).
Decision making process
Whereas some purchases require little or no effort on the consumer's behalf, for most, the
purchasing of a car requires extensive problem solving (Schiffman & Kanuk, 2004). This
means that the consumer places a significant effort in the purchase making decision. The
purchasing of a Mercedes A-class requires a high involvement decision. The cost
associated in buying a car is an important variable that leads to high involvement decision
but not always. A CEO of a company who wishes to change his old S-class (more costly
than A-class) would probably experience a low involvement since most probably the
company would buy directly the latest version of the S-class without going into extensive
research.
11. The first step in the decision making process is the recognition of a need. The need of
buying of a car is essentially an acquired need. In order to satisfy our needs we set goals.
Goals can be either general goals “I want to buy a car” or specific “I want to buy a
Mercedes A-class” (Schiffman & Kanuk, 2004). The need to purchase an A-class is not
triggered by the functional need for transport but by psychological factors, as discussed
earlier.
At this stage the consumer will search for information to explore the choices. The
information is obtained either internally, retrieved form the long term memory
(experiences) and/or externally from his friends, family, marketers sources and public
information (Schiffman & Kanuk, 2004). His past experiences and the associations
stored in his memory are evoked to guide the consumer. At this stage the reference group
will play a decisive role. In the case of buying an automobile, the search is typically
extensive, especially since it is a high risk decision (social/financial). This is the most
critical stage for marketers. At this point they can evaluate whether their marketing
efforts have been a success or not. If the consumer did not recall the A-class, the
marketing efforts of Mercedes would have been in vain.
A successful information search leaves a buyer with possible alternatives, the evoked set
(Schiffman & Kanuk, 2004). If the consumer decided to opt for a premium compact
MPV, the possible alternatives would be the Mercedes A-class, the BMW 1 series or the
Audi A31. At this point the consumer needs to device a set of criteria (heuristics) to
weigh the proms and cons of each alternative. The consumer needs to question, which
attributes or features of the car would satisfy my desires and needs? What are my
priorities? Once the criterion is set, these attributes are ranked according to their
importance. If the individual values more safety, quality, reliability and prestige he/she
would be inclined to buy the Mercedes A-class, while if the individual gives more weight
to the design, performance, efficiency and sportive look his/her decision would fall for
either the BMW 1 Series or the Audi A3. The decision is taken on the basis of which
alternatives scores the highest. Furthermore, the individual is involved in a series of other
1
For the purpose of this evaluation and from the limited research carried out I am assuming that only
premium compact MPVs in the market are the Mercedes A-class, BMW 1series and Audi A3.
12. decisions such as choosing the make or country of origin, the dealer and the financing
options (Schiffman & Kanuk, 2004).
After following this process, the consumer is prepared to make the purchase, in this case,
buying the A-class. Now that the consumer has affected the purchase he/she can evaluate
the product performance in light of his/her expectations (post purchase evaluation). The
A-class might match his expectations (neutral) or exceed his expectations. If the
performance exceeds the expectations, the consumer would feel satisfied with the
purchase. On the other hand, the product might not satisfy his expectations. In such case
the consumer would be dissatisfied with the purchase and may possibly experience a post
purchase dissonance (Schiffman & Kanuk, 2004). The consumer might, for example,
feel ‘guilty’ of spending so much money on such a small car. The extent to which the
process is followed will also determine the extent of the post-purchase dissonance.
References
Haralombus, M., & Holborn, M. (2000). Sociology: Themes and Perspectives. London:
Harper Collins.
Schiffman, L.G., & Kanuk, L.L. (2004). Consumer Behavoir. New Jersey: Pearson
Prentice Hall.
Websites
13. Mercedes A-Class Range: MERCEDES BRINGS ITS A GAME, (N.D.). Accessed 23rd
November 2009.
http://uk.cars.yahoo.com/car-reviews/car-and-driving/mercedes-a-class-
range-1004055.html
Benetton, C., Fricke, E., Kesselman, J. Nasief, S. & Tang, H. (1997) Mercedes A-Class,
a Consumer Behavior perspective. School of Management: Boston University. Accessed
23rd November 2009, http://managementboy.tripod.com/Final.htm
Assignment MMG, (2006). Accessed 23rd November 2009.
http://www.coursework.info/University/Business_and_Administrative_studies/Marketing
/page.cgi?g=University%2FBusiness_and_Administrative_studies%2FMarketing
%2FThis_case_study_will_allow_us_to_exhibit_L84578.html.
Christina Aguilera and Giorgio Armani - Prominent ambassadors of the “Follow your
own star” motto, (2004). Accessed 23rd November 2009.
http://www.baby-benz.com/portal/new-a-class-w169-/christina-aguilera-and-giorgio-
armani-prominent-ambassadors-of-the-follow-your-own-star.html.
Brand Personality, (2008). Accessed 23rd November 2009.
http://www.scribd.com/doc/6841796/Brand-Personality.
Audi A3 vs BMW 116i vs Mercedes A170, (N.D). Accessed 24th November 2009. http://
www.autoexpress.co.uk/carreviews/grouptests/214578/audi_a3_vs_bmw_116i_vs_me
rcedes_a170.html
Colley, D. (2004). Corolla Verso enters busy compact MPV market. Accessed 26th
November 2009
http://archives.tcm.ie/irishexaminer/2004/02/25/story466947846.asp
Aziz, N. (2008). N. Mercedes B-class and A-class headed for U.S. by 2011. Accessed
26th November 2009.
http://www.leftlanenews.com/mercedes-b-class-and-a-class-headed-for-us-by-2011.html
Compact MPVs, (2008). Accessed 25th November 2009.
http://www.glass.co.uk/EditorsBlog/9a869ea0/Compact-MPVs.html
Marketing Plan – BMW 1-series in Germany, (N.D.). Accessed 26th November 2009
content.grin.com/document/v69455.pdf
The Death of America’s “Big Car” Culture: GM Gives Up on Hummers, (2008).
Accessed 24th November 2009.
http://www.dailygalaxy.com/my_weblog/2008/06/the-death-of-am.html
14. Anurit, J., Newman, K. & Chansarkar, B. (N.D.). Consumer Behaviour of Luxury
Automobiles: A Comparative Study between Thai and UK Customers’ Perceptions.
Accessed 23rd November 2009. http://www.economicswebinstitute.org/essays/carthai.pdf
Menke-Gluckert, W. (2008). Baby Benz faces the moose: Mercedes A Class model fails
the moose test. Accessed 25th November 2009.
http://findarticles.com/p/articles/mi_hb3134/is_199802/ai_n7803948/
Marketing-1_2_assignment, (2009). Accessed 25th November 2008.
http://ivythesis.typepad.com/term_paper_topics/case_study_analysis/
Adverts
Ads, (N.D.). Accessed 26th November 2009. http://www.freelanceartdirector.com.au/ads
%20one.html
Swiss Knife Car, (N.D.). Accessed 23rd November 2009.
http://www.advertolog.com/admirror/swiss-knife-car/
Exhibits
Table1 Table 2