Mercedes Branding Strategy Analysis

The assignment delves into Mercedes' branding strategy, including its logo design and sound logo, which are crucial for recognition by consumers. The report also explores the company's overall brand management, emphasizing the need to stay in tune with technology and focus on social media marketing. It concludes that Mercedes has a strong presence of good branding strategy, but must continue with current traditions and marketing tactics while laying focus on social media for capturing new consumers.

MANAGING PRODUCTS &
BRANDS

Table of Contents
Introduction ........................................................................................................................................................4
Keller’s Brand Resonance Model to analyze Mercedes Benz Brand ...............................................................4
Brand Asset valuation model..............................................................................................................................5
Brandz model......................................................................................................................................................6
Provide any recommendations re: current and/or future branding issues for your organization/brand..............8
Conclusion ..........................................................................................................................................................8
References ...........................................................................................................................................9

Introduction
A brand can be defined as a name, symbol, logo or a design that differentiates the product of an organization
from other firms (Minchington and Sirin, 2015). Brand management is all about the technique of improving,
maintaining as well as upholding the brand so that positive results can be generated (Elliot, 2015). It is very
essential to use concepts of branding within business so as to increase product recognition; inspire employees,
build financial values and also attract new consumers towards the company (Spekman, Fritz and Spekman,
2017). The present study has thus laid emphasis on brand management of Mercedes Benz by focusing on
various models such as Keller’s Brand Resonance; BAV and BrandZ models. The study further provides
recommendations on how branding issues can be improved for future survival and sustainability of business.
Keller’s Brand Resonance Model to analyze Mercedes Benz Brand
The term brand resonance can be defined as relation a consumer shares with product or brand of a company.
Keller’s Brand Resonance Model also known as Brand equity pyramid or CBBE model is basically a structure
that tells company how it can build its brand equity (Spekman, Fritz and Spekman, 2017). This can be done by
understanding the consumers and implementing strategies accordingly (Wind and Rhodes, 2017). The image
given below showcases Brand equity triangle which has a presence of 6 building blocks that have been
discussed in context of Mercedes Benz.
Figure 1 Keller’s Brand Resonance Model
(Source: Bhasin, 2018)
Brand identity -Who are you
This level is all about the manner in which consumers look at brand and distinguishes it from others. In all, it
is about how brand defines itself in eyes of the client. As per brand identity, Mercedes brand has been
regarded as premium luxury car maker since the year 1902 (Sekhon and et.al., 2015). Its logo of three-point
star is easily identifiable among consumers. It is also a part of German big 3 which constitutes other car
makers being Audi and BMW. All of them are regarded as the best selling car makers all over globe. In this
respect, consumers of Mercedes are mostly middle aged people who are in middle to high income range. The

brand is however not popular among youngsters on account of cost factor. Other than this, both males and
females buy its cars as the company designs the car that fit in there specifications. The brand can further be
distinguished from others on account of its safety features, good performance and styling (Elliot, 2015).
Brand Meaning – What are you?
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Once consumer gains some awareness about the brand then he wants to know more about it in terms of
reliance, safety, consumer price and other features. Hence, as per Keller’s Brand equity model brand meaning
has been divided into 2 parts being performance and imagery. In the performance segment, Mercedes Benz is
renowned for safety. This German car maker has carried out much innovation in safety aspect as well because
they were the first to introduce Anti brake system and airbags (Arribas and Caballero, 2016). They have also
been able to create the most powerful engines with help of employees present in high-performance division.
Other than this, the car is also well known for comfort as well as refined leather seats that add a touch of
luxury. In imagery segment, Mercedes Benz is known as a masculine brand on account of its car design. The
consumers also love this brand due to elegance and excellence portrayed by its car models.
Brand Response – What about you?
Once a consumer buys any product then he or she is most likely to build expectations towards it. If reality
matches expectation then there is a generation of positive feelings. And if the product goes beyond
expectations then there is a generation of positive word of mouth publicity which may make the consumer as a
brand advocate (Bhasin, 2018). As per features of cars offered by Mercedes brand as well as its overall
history, the consumers judge this brand as prestigious and of superior quality. These arouse feelings of
confidence, success and also a sense of achievement in buyer of this car.
Brand resonance – What about you and me?
There are just a few brands that attain this level and become brand advocates. This is as the brand resonance
level involves for a high social and psychological connect of brand with consumer. This level has however
been acquired by Mercedes Benz as if a person is not purchasing this brand then too he or she has a strong
connection with car through social media (17 million likes on Facebook), clubs (Club Mercedes-Benz de
France) as well as the website. The research studies have depicted that 84.1 percent consumers have shown a
high loyalty towards Mercedes brand and acquire a new car of same brand in time frame of 12 months
(Business Wire, 2017). They are also engaged to the brand and have a positive attitude on account of the feel
offered to drivers when they drive the car.
Brand Asset valuation model
Brand asset valuation can be defined as a diagnostic framework that helps a firm to build, leverage as well as
maintain brand. It can be measured with the help of brand asset valuator model which was developed by
Advertising agency Young and Rubicam (Elliot, 2017). The given technique is very important for
organizations as it helps to assess the overall health and future of any brand by collecting consumer insights
on four key areas. It further helps to measure the brand qualities as well as metrics that aid in driving success
in market. This is very essential to have an edge over rival firms and also gain long term sustainability of
business (Arribas and Caballero, 2016).
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Figure 2 Brand Asset valuation model
(Source: Arribas and Caballero, 2016)
Differentiation – it is about the degree by which a brand can be differentiated from others (Spekman, Fritz
and Spekman, 2017). Mercedes brand in comparison to its closest competitor being BMW has a presence of
high reliability, more safety and performance followed by smaller engine but greater power.
Relevance – This aspect focuses on how closely a client can relate to the brand offering. In context Mercedes,
the car is relevant to consumer with respect to its high horsepower, top speed, regular face-lifts, situational
awareness. Not only this, but the car also lies in premium segment because of which consumers can relate it
with on account of its classic style and contemporary appeal (Minchington and Sirin, 2015).
Esteem - This aspect focuses on consumer perception towards the brand. It is all about whether brand delivers
what has been promised by it or not. In case of Mercedes, consumers perceive it as a premium brand to be of
superior quality and the one that provides maximum comfort to consumers on account of its ergonomics.
Knowledge – this is all about the degree of awareness a brand has in minds of consumers. In this respect, the
car buyers, as well as non-buyers all over the world, have a good level of awareness about Mercedes Benz.
They consider it as a car that lies in luxury and premium segment and wishes to buy in on account of
masculine appeal, safety feature and a feeling of achievement they get (Arribas and Caballero, 2016).
Brandz model
The model was developed by marketing research consultants being Millward Brown and WPP (Minchington
and Sirin, 2015).
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Figure 3 Brandz model
(Source: Minchington and Sirin, 2015)
As per this model, there is a series of steps in brand building and the objective of each step is as follows;
 Presence – it is all about the familiarity with a brand on account of past trial, saliency or even having
some knowledge about brand promises. In this respect, Mercedes Benz is a well-known car brand
among the masses and is easily recognized by its masculine cars and logo that symbolizes 3 stars.
 Relevance – it is about finding out as to if the brand is able to fulfill the needs and requirement of
consumers or not with its offerings (Spekman, Fritz and Spekman, 2017). This aspect has been
fulfilled by Mercedes as it offers a promise of good performance, small engine, safety features,
ergonomic design that provides comfort to all of its buyers in the premium segment. All these are the
essential features in a good quality car hence the need of consumer is fulfilled by this brand.
 Performance – it focuses on the performance that can be delivered by the brand so as to come on short
list of consumers. Mercedes Benz has fulfilled most of the features that are needed in a car
performance. It has a presence of small but very powerful engine with a spark for automotive
performance. This not only provides power, responsiveness but also efficiency. Mercedes-Benz
transmissions are known to harness output in such a manner that the car is able to catch a quick pace in
no time and also runs smoothly (Performance, 2018). Other than this, its cars have the presence of
safety features such as ABS and airbags followed by good ergonomic design for maximum comfort.
 Advantage - it is the emotional or a rational advantage that a brand gets over others in the same
category (Arribas and Caballero, 2016). Mercedes has a fairly good advantage as compared to other
brands on account of superior quality and vehicle performance. Other than this, Mercedes was the first
company that introduced safety features like ABS and airbags in its cars which gives the company a
good advantage over rival firms.
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 Bonding – it refers to the attachment a consumer carries with a brand. The consumers find themselves
quite attached with Mercedes Benz on account of its masculine feel; confidence and sense of
achievement that is attained by them after driving the vehicle.
Provide any recommendations re: current and/or future branding issues for your organization/brand.
Mercedes Benz has branded itself in such a manner that is a dream car or a car of choice in the mind of many
consumers. Still, several recommendations can be suggested to the company by which it can maintain its
brand. As of now, the company should continue with its current traditions and marketing tactics that have been
successful so far. But the need is to be in tune with technology and focus on social media marketing as well as
so as to remind the consumers about its presence from time to time. Even if the company officials wish to
change the brand so as to adapt to changing times then they must maintain at least a part of the original image.
This is required to ensure that consumers are still able to recognize the brand even after changes have been
incorporated. As of now, the company can also make use of the sound logo which can be heard immediately
after the featured ad either on radio, TV or social network platforms.
Conclusion
It can be concluded from above report that Mercedes has a presence of good branding strategy and has
imprinted itself in minds of consumers by its good performance, appeal as well as the feeling of success and
achievement that it generates in mind of buyers. Their branding strategy such as logo design is such that the
company is easily recognized by consumers. As of now, it is doing quite well with respect to overall brand
management. Hence it must continue with current traditions and marketing tactics followed by laying focus on
social media for capturing new consumers.
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References
Books and Journal
Elliott, B., 2017. 5 employer branding secrets from SA’s Top Employers. HR Future. pp.28-29.
Kohli, C., Suri, R. and Kapoor, A., 2015. Will social media kill branding?. Business Horizons. 58(1). pp.35-
44.
Merino Arribas, A. and Repiso Caballero, R., 2016. Colombian advertising agencies as domestic and
international marketing agents. Anagramas-Rumbos y sentidos de la comunicación.14(28). pp.51-66.
Minchington, B. and Sirin, C., 2015. Build a world class employer brand: international waters-employer
branding. HR Future. pp.20-23.
Sekhon and et. al., 2015. Being a likable braggart: How consumers use brand mentions for self-presentation
on social media.
Spekman, R.E., Fritz, J. and Spekman, R.E., 2017. Fiat and Chrysler: Gaining on Global Automakers?.
Darden Business Publishing Cases. pp.1-20.
Spry, A. and Lukas, B. A., 2016. Brand Portfolio Architecture and Firm Performance: The Moderating
Impact of Generic Strategy. Springer.
Wind, J. and Rhodes, K., 2017. The Revolution in Innovation Management: The Challenge for Legacy Firms.
Palgrave Macmillan, London.
Yao, Q. and Schwarz, E.C., 2017. Transnational venue management corporations and local embeddedness: A
case study on the Mercedes-Benz Arena in Shanghai, China. International Journal of Sports Marketing
and Sponsorship. 18(1). pp.70-80.
Online
Performance. 2018. [Online]. Available through:
<https://www.mbusa.com/mercedes/benz/performance#module-1>
Business Wire. 2017. [Online]. Available through:
<https://www.businesswire.com/news/home/20170911005687/en/Ford-Mercedes-Top-Consumer-
Automotive-Loyalty-Ranks>
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