Managing Products and Brands- Assignment 2

This report discusses the branding of Mercedes-Benz using Keller's Brand Resonance Model, BAV and BrandZ models. It provides a brief overview of the organisation and explains the concept of branding of Mercedes-Benz. The report also analyses the performance of Mercedes Benz according to the BAV and BrandZ models. Finally, it provides recommendations on current and future branding issues for Mercedes-Benz.

Running head: MANAGING PRODUCTS AND BRANDS- ASSIGNMENT 2
Managing Products and Brands- Assignment 2
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1MANAGING PRODUCTS AND BRANDS- ASSIGNMENT 2
Table of Contents
1. Introduction............................................................................................................................2
2. Brief overview of the organisation.........................................................................................2
3. Concept of branding of Mercedes-Benz................................................................................2
4. Using Keller's Brand Resonance Model to analyse brand.....................................................5
5. Performance of Mercedes Benz according to the BAV and BrandZ models........................7
6. Recommendations on current and future branding issues for Mercedes-Benz......................9
7. Conclusion............................................................................................................................10
Reference List..........................................................................................................................12

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1. Introduction
The brand represents the customers' perception of an organisation's reputation,
customer service and advertising. When all aspects of a brand are working well; the
organisation becomes profitable and healthy. Branding of the organisation develops
recognition as the simple logo of the brand can create the desired impression. Branding of the
organisation helps to create trust among the customers and the brand can identify the
potential customers of the organisation (Eshuis et al. 2014). The purpose of the report is to
apply the concepts and theories of branding used by Mercedes Benz. The chosen organisation
in this report is Mercedes Benz which deals in the luxury automotive segment. In the first
part of the report, concepts of brand equity and brand resonance are discussed in light of
Mercedes Benz. In the following section, Brand Asset Valuation and the concept of BrandZ
is explained. In the final section, current and future branding recommendations for Mercedes
Benz are given.
2. Brief overview of the organisation
Mercedes-Benz is a division of Daimler AG as it deals in mainly luxury vehicles and
Lorries, coaches and buses. Mercedes-Benz has it headquarter in Stuttgart, Germany and the
organisation started its journey in the year 1926 (Marcedes-benz.com 2018). Mercedes-Benz
manufactures and sells the products and it also provides services like automobile repairing
and financial services. This Germany based automobile giant puts insight to do the branding
for the organisation.
3. Concept of branding of Mercedes-Benz
Branding is the way to create an image of the organisation in the eyes’ of the
customers (Posner et al. 2015). The purpose of the branding is to simply help the customers

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to understand how this organisation is different from other others. Branding of the
organisation can help to establish the Unique Selling Proposition of the company by
combining all the communication tools. A brand can make the relationship with the
customers so that the customers can feel and think what the brand wants to convey.
Mercedes-Benz continues its dynamic progress in the industry and with the name of
Mercedes-Benz, the brand really represents the three-pointed star which may broaden its
offering to the executive level. Mercedes-Benz stands for the aspiration to deliver ‘the best' in
the industry which mainly targets the top executive segment.
In the year 2016, Mercedes-Benz sold almost 18, 80,100 vehicles worldwide and it is
one of the largest selling luxury automobiles in the world. Brand management of Mercedes-
Benz has been done by partnering with various companies like Formula One, Baidu and
Nissan. Mercedes-Benz creates awareness in the minds of the customers through
advertisements at various levels of promotions; magazines, social media and OOH (Out-of-
home) advertising which create positive word-of-mouth. As published in Daimler.com
(2018), Mercedes-Benz has now taken the global agency model which refocuses the brand
communication strategy. The campaign of Mercedes-Benz focuses on the important element
to further advance of the organisation.
BrandingofMercedes-Benz

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Figure 1: Branding of Mercedes-Benz
(Source: Self-researched)
Mercedes-Benz targets the luxury segments and it embodies the exclusive form of
automobile comfort. In the year 2013, Mercedes-Benz launched S-Class model and it
expanded the business from six model variants. The customers can connect the brand from
the logo of Mercedes-Benz and the name of the brand which resonates the style, luxury,
safety and comfort. Mercedes-Benz provides intelligent drive, through the most elegant cars.
Branding of Mercedes-Benz comes with the safety, partially autonomous driving and
assistance system of the cars. Mercedes-Benz provides simple and transparent nomenclature
to give the customers with better orientation (MCDermott 2016).
The brand name of Mercedes-Benz is high and the logo of Mercedes-Benz is well
recognised by the customers. Branding supports advertising as the advertising is a significant
component of the brand and advertising along with promotion helps to do branding for the
organisation. In addition, Branding of Mercedes Benz provides support to build the financial
value of the organisation and strong brand guarantees the future of the organisation (Eshuis et
al. 2014).
4. Using Keller’s Brand Resonance Model to analyse the brand
Keller's Brand Equity Model has four steps which represent fundamental aspects of
what the customers want subconsciously. Step one is about brand identity which represents
the goal of the organisation to create brand awareness. The brand needs to make sure that the
brand must be stand out so that the customers can recognise the brand at once. Mercedes-
Benz advertises and they do campaign revealing the new agency model and brand strategy.
Mercedes-Benz is a well-known brand and it promotes the new cars through social media and

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conducting the events. Mercedes-Benz identifies the customers' wants and they narrow down
the choices so that they can understand the competitors' values (Keller 2016). Step two is
about brand meaning; this step consists of two elements performance and imagery.
Performance of the brand defines how the products can meet the needs of the customers
(Yousaf et al. 2017). Mercedes-Benz meets the customers' demands by providing the best car
in the segment with a right set of safety and convenience. Brand imagery means how the
brand meets the customers' needs (Keller 2016). Mercedes-Benz meets the needs of the
customers directly and the performance of the cars reflects the reliability and durability of the
cars with stylish design. Mercedes-Benz's brand imagery is enhanced by the commitment to
conduct various environmental programmes along with social causes. Mercedes-Benz uses a
niche advertising channel rather than the advertising on the television. Mercedes-Benz is now
the symbol of cars of adults and this brand changes their image of being sporty and trendy car
for the youth.
Figure 2: Keller’s Brand Equity Model of Mercedes-Benz
(Source: Keller 2016)

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The third step is about brand response and it has two categories; feelings and
judgement. The customers make a purchase from the brand and this purchase builds up the
expectation of the customers. If the reality of the customers meets the expectation of the
customers; the customers feel positive about the brand. Therefore, the positive experiences
provide feelings to the brand. When the experience of the customers is bad; the customers
leave the negative review. This negative feeling of the customers can be considered as the
judgement. The feelings of the customers about Mercedes-Benz build the positive influence
in the market as it is important to build the brand equity. Many of the customers hold positive
feelings and higher amount of positive encounter the negative judgement of Mercedes-Benz.
The fourth stage is about brand advocate where the brands can connect the psychological and
social connecting between the customers and the brands (Yousaf et al. 2016). Mercedes-Benz
reaches the epitome of the brand resonance as the Mercedes-Benz is connected to the top
executive level. Brand resonance has various levels like the behaviour of the customers,
values and attitudes and engagement of the customers and connecting and feelings.
5. Performance of Mercedes Benz according to the BAV and BrandZ models
Brand Asset Valuator (BAV) helps to measure the Brand Equity and it has four
different components. Differentiation helps to measure the degree to which the organisation
is seen as different from others (Salamovska and Todorvska 2016). The relevance of the
organisation measures the brand appeal and breadth of branding. Esteem of the organisation
measures how well the brand is respected and regarded; finally, knowledge measures how
intimate and familiar the customers with the brand (Badrinarayanan et al. 2016). Brand
strength of Mercedes-Benz focuses on the relevance and differentiation and these two pillars
help to point out the future value of the brand. Mercedes-Benz is different from other brands
in the sense of quality and premium pricing segment. This particular brand appeals to the

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executive class and to the upscale customer segment. On the other side, esteem and
knowledge of the brand create the stature of the brand and it is more of the performance
report of the brands. Mercedes-Benz is familiar with all customer segment and the customers
respect the brand. Brand strength and brand structure are combined to create the power grid
so that it can depict the stages in the cycle of brand development (Badrinarayanan et al.
2016). Mercedes-Benz is already an established brand and this firm shows higher levels of
differentiation than the relevance and the knowledge and esteem both show the lower
importance.
Figure 3: VAB (Value Asset Evaluator) model
(Source: Salamovska and Todorovska 2016)
BrandZ model also measures the brand equity of an organisation and the core element
of the brand is the brand dynamics pyramid. BrandZ model has the pyramid where the core
elements in ascending order are presence, relevance, performance, advantage and bonding
(Vasileva 2016). Presence of Mercedes-Benz is about customers' knowledge regarding the

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brand and the customers from all the segments know about Mercedes-Benz. The relevance of
the brand is about the firm needs to offer the best to the customers. However, each segment
of the customers cannot have Mercedes-Benz as the price of the products is focused on the
luxury segment. Performance of Mercedes-Benz is higher as the cars deliver the best quality
along with comfort and class. The advantage of Mercedes-Benz is the differentiation from the
competitors as it provides 30 models on to the market worldwide. The cars provide the lavish
design, prestigious interiors and it offers extensive scope for individualisation. In addition,
bonding of Mercedes-Benz is about nothing can beat the brand and Mercedes-Benz in the
luxury automobile sector is the sole player apart from Audi and Porsche. 20 years of
continuity involves some of the most successful and recognised products and Mercedes-Benz
focuses on making the nomenclature even more understandable.
6. Recommendations on current and future branding issues for Mercedes-Benz
Current branding issues of Mercedes-Benz are associated with possessing the
compelling vision and creating the new subcategories of the brand. Mercedes-Benz does not
have clear branding goal and it only has the premium quality cars.
In future, Mercedes-Benz may face the issue of generating a breakthrough in building
the brand. Mercedes-Benz may face the issue of achieving the integrated marketing
communication (IMC) through which Mercedes-Benz does the promotions.
Apart from the issues in branding; Mercedes-Benz is the consistent top-performer to
hold the top rank in the luxury vehicle segment. Mercedes-Benz needs to build up the
branding to solve the branding issues:
Building digital promotions:

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Mercedes-Benz mainly focuses on the Auto-Expo and the car launching events;
however, Mercedes-Benz needs to listen to the customers so that the car manufacturer can
improve the comfort and design of the cars. Mercedes-Benz must start their marketing from
the website and improving the traffic on the website. PR team of the brand needs to decide
who are the best customers for the organisation and Mercedes-Benz needs to use social media
analytics to sync the social networking accounts. Digital promotions of the luxury cars will
help to reach maximum audiences.
Developing a relationship with customers
Mercedes-Benz needs to solve the customers’ queries through e-mail or through
social media. Mercedes-Benz can build up the customer relationship through increased
communication. Communication with the customers helps to build up the brand and it is the
chance to exceed the expectations of the customers. The PR team can ask feedback from the
customers and the brand can connect with the customers. Top executive level customers
would be delighted when Mercedes-Benz will show appreciation to the customers.
Customise the vehicles and alteration of marketing technique
Mercedes-Benz has recently started following Customised Agency Model to lead in
the market in the promotion. Many of the customers want to customise the cars; Mercedes-
Benz can allow the customers to have the customised vehicles and it will improve the brand
image of the organisation along with brand feeling. Mercedes-Benz is handing over the
storyline for the latest series of advertisement to Twitter users. Marketing technique needs to
be more customer-centric so that the customers can be targeted easily.

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7. Conclusion
It has been noted that branding has always been part of Mercedes-Benz and BAV and
BrandZ model has been described to measure the brand. Mercedes-Benz faces the issue of
compelling the vision and creates new subcategories. The brand has consistently exemplified
and defined the idea of a luxury vehicle. If the customers consider how other car companies
benchmark or try to outperform MB, it’s likely that they find the brand special too.
Performance-wise, the AMG models are quick, powerful, and responsive to drive. Overall,
people purchase a Mercedes-Benz to get comfort, luxury, image, and performance. They
want a car that leads its class. Mercedes-Benz offers that.

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Reference List
Badrinarayanan, V., Suh, T., and Kim, K. M. 2016. Brand resonance in franchising
relationships: A franchisee-based perspective. Journal of business research, 69(10), pp.3943-
3950.
Daimler.com. 2018.Mercedes Benz Branding. Available at:
https://www.daimler.com/company/tradition/mercedes-benz/ [Accessed 11th Oct 2018]
Eshuis, J., Klijn, E.H. and Braun, E., 2014. Place marketing and citizen participation:
branding as a strategy to address the emotional dimension of policy-making?. International
Review of Administrative Sciences, 80(1), pp.151-171.
Gürhan-Canli, Z., Hayran, C., and Serial-Abi, G. 2016.Customer-based brand equity in a
technologically fast-paced, connected, and constrained environment. AMS review, 6(1-2),
pp.23-32.
Keller, K.L., 2016. Reflections on customer-based brand equity: perspectives, progress, and
priorities. AMS review, 6(1-2), pp.1-16.
McDermott, J. 2016. Mercedes-Benz uses Instagram to sell cars to millennials. Digiday.
Mercedes-Benz. 2018. Branding of Vehicles Available at
https://www.mercedes-benz.com/en/mercedes-benz/vehicles/passenger-cars/s-class/brand-
talk-mercedes-benz-expands-brand-world/ [Accessed 10th Oct 2018]
Posner, H., Williams, S., and Posner, H. 2015. Marketing fashion: strategy, branding and
promotion. Laurence King Publishing.

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Salamovska, S.M. and Todorovska, M., 2016.Brand Valuation and Marketing Assets
Assessment-Theoretical Background vs. Contemporary Managerial Issues. Strategic
Management, 21(4), pp.37-44.
Vasileva, S., 2016. Brand Evaluation: A Review of Interbrand and Millward Brown Models.
In The Priority Directions of National Economy Development: International Scientific
Conference.2(3), pp.12-23.
Yousaf, A., Amin, I. and Gupta, A., 2017. Conceptualising tourist based brand-equity
pyramid: an application of Keller brand pyramid model to destinations. Tourism and
hospitality management, 23(1), pp.119-137.