Marketing Strategies for Mercedes: Enhancing Production and Profitability

This document discusses the importance of marketing strategies for businesses, focusing on Mercedes as a case study. It covers the brand's PESTLE and SWOT analysis, competitive advantage, and marketing strategies for increasing production and profitability. The document also includes information on segmentation, targeting, and positioning strategies.

MARKETING STRATEGIES

PART 1
EXECUTIVE SUMMARY
It can be said that marketing strategies are very important for any business in order to
maintain their production and profitability to higher levels. Marketing strategies will help to
make decisions regarding suitable and necessary changes that help to drive overall performance
which increase productivity and customer satisfaction. Mercedes is one of the top luxury car
brands deliver cars with high quality services and features. An average person is not able to
purchase cars with such high prices. There are so many models launched by brand in the market
towards customers in which AMG is one of the most favorite models of customers. Mercedes is
a global automobile organization and a division of German firm Daimler AG. There is some
luxury items offered by brand such as vehicles, coaches, buses and Lorries in the market
effectively. The headquarter is located in Stuttgart, Baden Wurttemberg. In addition to this, it is a
tough competitor in the market, competing all the other rivalry firms in same sector such as
BMW and Audi. Marketing strategies with the effective evaluation of market will help managers
to make changes in features and models of cars in order to increase productivity and profits.
INTRODUCTION
Marketing strategies are very crucial for business that it helps to manage changes within
firm and production in order to enhance profitability. The report is based on Mercedes brand
which offers luxury cars, buses, Lorries and coaches to customers in the market. In addition to
this, PESTLE and SWOT analysis of Mercedes brand will be covered in this report along with
effective evaluation of competitive advantage in terms of unique selling price. In this, brand
culture, internal and external environmental analysis and strategies with the help of SMART
marketing objectives and goals will be covered. The report will also provide marketing strategies
with determination of sales, profitability and growth. In addition to this, segmentation targeting
and positioning with SMART objectives and goals will be defined. Finally, the report will cover
marketing strategies as recommendations in order to increase production, profitability and
customer satisfaction.
SITUATIONAL ANALYSIS
Political: It can be said that the taxation system is one of the most major political issue for
Mercedes which affect the imported car business. Tax is calculated on car cost and other charged

based on engine category. This will affect the production as well as price of products and
services offered by firm in the market.
Economical: Economical changes such as exchange rates, interest rates, price of imported cars
etc. This will affect the price and productivity of cars and increase further expenses. Foreign
exchange rates also affect the fair price.
Social: Social changes such as trends, culture, choices, taste and other preferences which affect
the production and profitability. People who are earning higher income able to purchase cars
from Mercedes brand. In addition to this, the brand is successful in Malaysia.
Technological: Technological changes such as latest and updated techniques, skills, knowledge
and equipments which will help to drive effectiveness of production process. The firm should
adopt latest technology and techniques that helps to manage productivity and customer
satisfaction.
Legal: Legal changes are managed and controlled by local government. Rules and regulations
involved in business as well as market are formulated in order to manage different activities. In
addition to this, legal changes should be followed by business such as tax rates, policies and rules
in order to run firm and operation smoothly.
Environmental: Environmental changes also affect the operation and activities’ managed by
business. It can be said that here are different types of people with various perception and
thinking which affect the vision of business. For an example, if somebody like Audi more than
Mercedes than he will choose Audi first to buy.
SWOT ANALYSIS
Strengths: The main strength of business is that it sells luxury items and also a part of German
Big 3 luxury automakers along with BMW and Audi. There are so many manufacturing facilities
across 6 continents and 26 countries effectively. In addition to this, there is a lot of innovation
made by firm in order to attract new customers. The firm is also financially strong and holding
the nation with quality services.
Weaknesses: The main weakness of business is its expensive items as well as services and
maintenance charge after purchasing. There are also some conflicting goals of group of the firm.
The brand is also not able to expand its business according to expectations. The stunted growth
affected production and profitability.
Opportunities: Although, there are a lot of opportunities are waiting for business in order to
expand business activities and profits. The growth is shifting towards Asian market in
developing areas such as India, China and other nations. The demand of premium vehicles is also
increasing which helps to enhance production. The technological advancements also helped
towards hybrid cars as Mercedes has a emerging market globally and effectively.

Threats: Competition is the main threat of every business that luxury cars market is also
increasing with luxury brand such as BMW and Audi. The vitality in fuel prices also affecting
the price and production. There are so many nations with low level economic growth affecting
productivity and profitability of business. In addition to this, high cost investment and
government regulations are some major threats of firm.
Competitors: Intense competition from other players in this segment affecting the market share
as well as production and profitability of Mercedes. There are some tough competitor such as
BMW, Audi and Volvo which are taking places in the current market. The firm should manage
some strategic changes in market activities in order to raise level of production and profitability.
COMPETITIVE ADVANTAGE (USP)
The unique selling price USP is propose by Mercedes in many variants from executive
prices and range of products and service to ultra premium versions available for customers in the
market effectively. A unique selling proposition is that in which the brand is able to differentiate
its products and services from any other. In addition to this, it can be described as a factor which
helps to make a difference between products from its competitors. For an example, high quality
services and products with lower cost or first ever products or service of its kind effectively. A
unique selling proposition defines what you have that competitors don’t. in addition to this,
Mercedes has many range of different products and services with executive items to ultra
premiums which helps to make differentiation between products and services offered by firm and
any other competitor. The firm has also some target groups which helps to maintain the
production and increase profitability. There are a lot of competitors available in the market
which sells luxury cars such as BMW, Audi, Volvo, Ferrari and Aston Martin which is affecting
market share. The firm should make some unique selling proposition in terms of making changes
in strategies to develop an innovative product. This will help to attract customers and will
increase profits.
MARKETING STRATEGY
The firm is part of German automaker Daimler and also operating worldwide. The
current market strategies used by Mercedes is to increase production and performance. High
quality cars produced by business will help to enhance sales as well as profitability. Mercedes
make plan and strategy according to the customer preferences and perception including upper
class social group and executives who have an inclination towards latest equipments, techniques
and technology. In addition to this, marketing mix model is also used by firm in order to make
strategies and plans that are necessary to enhance production and profitability. This will also help
to achieve desired goals and objectives. Market segmentation, positioning and selling method
will help to manage customer satisfaction and loyalty towards brand. Mission of firm is to lead
innovation and achieving better customer expectations. The tagline is also impressive which
attract customers that the best or nothing is provided by Mercedes. There are total 38 plans
managed by brand worldwide which is also owned by company effectively. The managers are

also using BCGF matrix in order to provide strengthen to production process. Different variants
and cars are now offered by firm which is a benefit for customer in order to select best and
suitable for him or her. The leader also followed multichannel approach linking with formats of
channels delivery network. Brand equity is also so strong which helps to enhance competitive
advantage. Mercedes is best for people with age between 30-50 years that they are retired from
their work and just want to enjoy riding ultra premium vehicles associated with all the latest
technology and equipments effectively.
PART 2
SEGMENTATION TARGETING & POSITIONING
The brand segment is for people who want to drive luxury cars with total comfort. People
belong from rich families and who are rich purchase such cars for driving passion, dream
purpose. According to this, the segment will be luxury for business. In addition to this, the target
group of business will be upper rich class families and businessmen who want their cars as a
status symbol. The positioning of brand to be a perfect luxury car which gives unmatched
services and driving experience from any other luxury company effectively. Thus, it can be said
that the unique selling proposal of firm will be based on rich families and people who can afford
items offered by firm in the market. STP can be described as an essence of market strategy used
by business. The market should be managed under a segment with appropriate target and develop
the other offerings and positioning effectively.
Segmentation: It is a process in which the business usually split its market in smaller groups or
according to the similar products and services needs in order to identify and determine
characteristics of a person with the purpose of purchasing item. It can be divided according to
country, social cycle, age, gender and other benefits.
Targeting: A business have a proactive selection towards the suitable market which helps
towards effective development and growth of firm in order to enhance profitability and
production. The market activities and their suitability are considered by manager in order to
select the proper target market effectively and efficiently. Niche and mass marketing activities
are covered in targeting.
Positioning: Positioning will help to identify and determine differential advantage towards each
market segment. The position of firm is very good in the market and also increasing day by day
with positive image. The effective image in customer minds will help to enhance satisfaction and
loyalty.
OBJECTIVES AND GOALS
SMART is a tool which helps business towards setting goals and objectives. The concept
of such management to set objectives is attributed to Peter Drucker. Each one should be well

defined in order to make sure these are clean and reachable. These are Specific (simple, sensible
and significant), Measurable (Motivating and meaningful), Achievable (agreed and attainable),
Relevant (realistic, resourced, reasonable etc.) and finally time bound (time limited, related and
sensitive).
Specific: The goals of firm should be specific and clear otherwise the managers are not able to
focus on main efforts required to achieve motivation. The managers should set goals in which
they are able to determine what they want to accomplish. Why the goal is crucial, who is
involved and where the business will be located are some necessary factors should be determined
while managing operations and activities to achieve them effectively.
Measurable: It is very crucial to have measurable goals that it will help to keep business on
track towards progress and stay motivated. It is analyzed that assessing progress can help to feel
motivated and focused towards meeting deadlines and other excitement which helps to get closer
to achieve goals. A measurable goal should be acquiring the skills of employees effectively.
Achievable: The goals should be realistic managed and controlled by firm which needs to be
attainable to be successful in the future effectively. In respect to this, they should be effective
enough to stretch performances and activities in order to remain possible. Achievable goals will
help to motivate employees in firm that short goals are necessary for business that it helps
towards sustainable growth and development. This will also help to achieve desired goals and
objectives.
Relevant: The step is all about ensuring that the goals are valuable and matters for Mercedes that
it will help to understand the values and importance of goals in business in order to expand
activities. The help and support of managers is required to manage relevant goals that help to
achieve initial purpose of selling cars to enhance customer experience and profitability.
Time bound: It can be said that goals required a specific time to achieve target date or deadline
to meet objectives. This will help employees as well as managers in firm to achieve goals in a
particular time that helps to achieve desired outcomes. This part of setting objectives and goals
will help to take priority of completing tasks on time effectively and efficiently.
Benefits and drawbacks: It can be said that there are a lot of benefits of setting goals and
objectives for business in order to achieve them in a specific time. This will help to keep
employees motivated towards their individual work and also help to gain competitive advantage
which is necessary for company in this modern world effectively.
In addition to this, some drawbacks are also involved such as it can lose the effectiveness
or create misunderstanding between employees. There are some people believes in long term
goals because of the lack of flexibility and suggestions. Locke’s goals setting theory will help to
understand disadvantages of such goals. Thus, it can be said that SMART will help to achieve
better targets and goals setting which is crucial as well as important for firm in order to

accomplish success. In addition to this, this will also provide significant oath for employees and
managers to complete their work on time in order to enhance production and profitability.
MARKETING STRATEGIES AND RECOMMENDATIONS
It can be said that there are a lot of marketing strategies available for business in order to
promote, increase and manage production and profitability. This will help to enhance customer
satisfaction by providing quality services and products according to their needs and
requirements. Marketing strategies will help to determine demands of customers in the market
which will help manager and other employees to produce goods accordingly. Marketing mix is
one of them which will help to identify marketing strategies.
Price: Price is put for a product by a company towards customers. It is also depended on cost of
production and target segment which shows the ability if market to pay. Supply and demand are
interrelated in this method. There are different types of pricing strategies are available for
business in order to set a fair price for product according to the needs. Pricing strategies are
directly connected with business plan which helps to determine actual price of a product
including profits.
Product: Product is which sold to customer in the market. Here the products are luxury cars,
coaches and buses for customers. A product must be delivering at a minimum level of
performance and the firm should try to put best efforts with other elements. Product should be
according to the requirements and demands of customers in the market that it helps to increase
sales and profitability.
Place: Place is a where customers purchase products and services offered by business. Effective
distribution is important for every business in order to deliver quality services. The aim should
be a good distribution place where the consumers can easily reach and purchase product
according to their requirements effectively. In addition to this, place should be effective enough
to attract customers that it is the first thing creates impression on customers minds.
Promotion: Promotion strategy is important for business in order to expand their business as
well as to deliver information regarding products and services to customers in the market
effectively. Advertising which can be done through reports, press, magazines, TV and other
devices. This will help to provide information regarding policies and offers provided by business
in the market.
Brand awareness: It is analysed that brand awareness is required to achieve production and
profitability targets. There are so many strategies can be used by firm in order to create brand
awareness that helps to remain active in the market. In addition to this, brand awareness will also
help to increase sales by promoting products and services and their importance to consumers in
the market. Brand awareness is an extent from which the management is able to deliver quality

information regarding products which will help to enhance attraction and productivity which is
important for firm. This will help to achieve desired goals and objectives and will increase
profitability effectively. Brand awareness will help to retain customer perception and loyalty
towards brand which helps to maintain target customers in the market effectively.
Recommendations
In this report there are so many strategies, models and tactics has been used to increase
production and profitability of Mercedes. In addition to this, further recommendations are
provided here to improve and develop operational activities and strategies that helps to manage
production and profits. The growth is shifting towards Asian market in developing areas such as
India, China and other nations. The demand of premium vehicles is also increasing which helps
to enhance production. Mercedes has much range of different products and services with
executive items to ultra premiums which helps to make differentiation between products and
services offered by firm and any other competitor. The firm should make some unique selling
proposition in terms of making changes in strategies to develop an innovative product. This will
help to attract customers and will increase profits. Mercedes make plan and strategy according to
the customer preferences and perception including upper class social group and executives who
have an inclination towards latest equipments, techniques and technology.
CONCLUSION
It can be concluded from the above report that marketing strategies are very important for
any business in order to maintain their production and profitability to higher levels. The firm
should manage some strategic changes in market activities in order to raise level of production
and profitability. In addition to this, there are a lot of competitors available in the market which
sells luxury cars such as BMW, Audi, Volvo, Ferrari and Aston Martin which is affecting market
share. The firm should make some unique selling proposition in terms of making changes in
strategies to develop an innovative product. It is analysed and determined that unique selling
proposal of firm will be based on rich families and people who can afford items offered by firm
in the market. Apart from this, SMART will help to achieve better targets and goals setting
which is crucial as well as important for firm in order to accomplish success.