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.
3. Introduction
Mercedes-Benz commonly referred to
as Mercedes, is a German luxury
automotive marquee. Mercedes-Benz and
subsidiary Mercedes-Benz AG – of Daimler AG –
are headquartered in Stuttgart, Baden-
Württemberg, Germany. Mercedes-Benz
produces consumer luxury vehicles
and commercial vehicles. Its first Mercedes-
Benz-badged vehicles were produced in 1926. In
2018, Mercedes-Benz was the largest seller of
premium vehicles in the world, having sold 2.31
million passenger cars.
5. Strengths
• It has manufacturing facilities across 6 continents and in
26 countries including both for passenger cars & buses
which is helping them to keep their operational cost low
& thereby increase their profit.
• Mercedes is focused on becoming No.1 player in
developing markets & that’s what driving their growth.
• Mercedes have strong product portfolio ranging from
sedan to SUV which is helping them to compete with
other players in the market.
6. Weaknesses
• Mercedes servicing cost is high as compared to other
players in the same segment.
• It may happen that Daimler itself being such a big
group can fall prey of conflicting objectives of the
group companies which may affect
its individual brand.
• it is found to have a stunted growth because it keeps
distribution of its vehicle very much exclusive, which
affects its supply and therefore its brand equity.
7. Opportunities
• Companies like VOLVO, Audi, BMW etc. are betting
high & are targeting the developing nations due to
increase in demand of Luxury public transportation
system.
• By using specialized capabilities & partnering with
other company they can differentiate their offerings.
• Developing fuel efficient futuristic technology &
hybrid cars can help Mercedes in emerging as
a market leader globally.
8. Threats
• Presence of players such as AUDI, BMW, Volvo etc.
who are not leaving any stone unturned to emerge as
a global player & leader in most of the markets.
• Macroeconomic uncertainty, Recession, un-
employment etc. are the economic indicators which
will daunt the automobile industry for a long period
of time.
10. PRODUCT
• The product is the strongest P in the
marketing mix of Mercedes Benz. Mercedes
remain as one of the leading brands in the
Indian market, that too for more than 50 years.
• The company currently assembles its models
— S-Class, E-Class, C-Class and the ML-Class
while other models, including GL-Class, CLS-
Class and SLK-Class are fully imported.
11. PRICING
• It has as many as 14 car models currently ranging
from INR 21,49,000 to 7,68,00,000.
• As a matter of fact, the company deals in a niche
segment where the customer is more concerned
with the value they are getting on the product
more than anything else is.
• The company has a broad price structure outside
India, ranging from $30,000 to up to $100,000,
depending on the model.
12. PROMOTION
• Although Mercedes Benz marketing strategy used to
focus on the luxury, safety and precision engineering of
its cars, competition has propelled it to adjust its
product to suit the changing consumer attitudes.
• Now, their marketing strategy focuses more on
presenting a more energetic, fun loving and
approachable side of Mercedes Benz.
• Another marketing strategy employed by Mercedes Benz
is its decision to slice prices and make the product more
affordable to consumers.
13. In order to increase communication with its target
market, Mercedes Benz has maintained accessibility
to consumers through the following:
• Online advertising
• Social media
• Establishing excellent customer service at its point
of sales
• Offer warranty under excellent conditions
• Television advertising
• Print media
14. Place
The company distributes its product through a
broad network of dealers throughout the world.
The company intends to change the perception of
the brand and reposition it so that it is more
appealing to the younger generation. They are
also sending out the message that they are more
approachable than ever before.
15. z
STP
Segmentation:
Mercedes segments its luxury & state of art cars on a mix
of demographics, Psychographics & Behavioural factors.
Targeting:
It targets young buyers who are passionate to drive and cars
resonate of what they are, what their fashion statement & style is.
Positioning:
Positioning itself through emotional appeal and creating top of mind
awareness has helped the company in becoming the best luxury
car makers in the world.
16. zConclusion and recommendation
Mercedes-Benz is the German automobile manufacturer in addition of
being a multinational division for the German Daimler manufacturer
AG. This company is popularly known for the various products they
manufacture including coaches, trucks, automobiles and buses.
To Mercedes-Benz, being an ethical company is lying within its
manufacturing, production, and even existences of their various
products. In regards to every aspect of Mercedes-Benz Innovations,
the global benefit comes as a result of the company’s unique
combination concerning the intensive devotion and extensive diversity.
As a global premium auto brand, Mercedes-Benz has sponsored and
participated a bigger percentage of Social and Corporate
responsibilities across the entire globe