Marketing Essentials: Marketing Plan for Mercedes Benz Analysis

This report provides a comprehensive analysis of marketing essentials, focusing on a comparison between Mercedes Benz and BMW using the 7Ps of the marketing mix. It delves into product, price, place, promotion, people, process, and physical evidence to highlight the competitive strategies of both companies. Furthermore, the report develops and evaluates a basic marketing plan for Mercedes Benz, outlining the company's vision, objectives, and an overview of its marketing strategies, including segmentation, targeting, and positioning. The analysis incorporates SWOT and PESTEL frameworks to assess the internal and external environments impacting Mercedes Benz's global operations. The document concludes with insights into the budget allocation for marketing activities and the overall strategic direction of the company, offering students a valuable resource for understanding automotive marketing and strategic planning. Desklib provides more solved assignments and study tools for similar topics.

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Table of Contents
INTRODUCTION................................................................................................................................4
PART A..............................................................................................................................................5
LO2...................................................................................................................................................5
P3 COMPARISON OF MARKETING MIX OF MERCEDES BENZ AND BMW....................................5
PART B..............................................................................................................................................9
LO3...................................................................................................................................................9
P4 PRODUCE AND EVALUATE A BASIC MARKETING PLAN FOR MERCEDES BENZ..........................9
CONCLUSION.................................................................................................................................21
REFERENCES...................................................................................................................................22
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INTRODUCTION
The marketing department of a multinational organization in the market carries out the
appropriate procedure of market research so as to identify the needs and demands of the
customers in the market. After analyzing the existing trends and conditions of the market, the
members from the marketing team of an organization develops marketing plans and strategies
to successfully achieve all the aims and goals of the company. The role of marketing is
imperative for the development of an organization and thus, this following report effectively
discuss about that imperative role of marketing for the development of an organization. The
multinational organization that has been chosen for this assignment on marketing essentials is
“Mercedes Benz”.
The following assignment is divided into two parts; that is Part A and Part B. Part A depicts the
comparison of two organizations from the same industry; i.e. Mercedes Benz and BMW on the
basis of 7P’s of marketing mix, whereas Part B of this assignment portrays the basic marketing
plan of Mercedes Benz. Both the organizations, i.e. BMW and Mercedes Benz operate in the
field of automobile industry and serve their respective group of targeted customers with the
high quality and luxurious vehicles. Being from the same industry, both of these organizations
give tough competition to each other in the market, and thus their comparison on the basis of
marketing mix has been discussed in the further section of this report.
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PART A
LO2
P3 COMPARISON OF MARKETING MIX OF MERCEDES BENZ AND BMW
The marketing mix procedure of marketing planning is carried out by the marketing department
of an organization in the market to analyze the existing needs and demands of the segmented
customers (Huang, et al. 2014). The marketing team analyzes these needs and demands of the
consumers on the basis of an assortment of different factors that could lead them to get an
exact view of the outlines that are needed to be made by the organization, so as to successfully
draft the marketing plan. Every organization develops new products or services in order to gain
competitive advantages in the local as well as in the international market. Consequently, in
order to predict the success rate of launching those products or services in the market, the
process of marketing mix has to be carried out effectively.
Figure: 1. Marketing Mix
[Source: https://www.managementstudyguide.com/marketing-mix.htm]
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In this following section of the assignment the comparison of Mercedes Benz and BMW on the
basis of 7P’s of marketing mix has been carried out effectively.The elements of marketing mix
on the basis of which the comparison has been carried out include; price, product, place,
promotion, physical evidence, people, and process. The comparison of Mercedes Benz and
BMW on the basis of these elements is as follows;
PRODUCT
Out of the seven different elements of the marketing mix, the element of product is one of the
most essential ones. The organizations like Mercedes Benz and BMW concentrates highly on
the development of new products as per the requirement of their respective targeted
customers in the market. Mercedes Benz is well known brand in the world known for the
development of its premium cars, and thus the organization’s products are one of its strongest
points. As a part of the marketing mix product strategy, Mercedes Benz produces and sells a
wide range of passenger vehicles, light as well as heavy commercial equipment vehicles in the
market. Out of all these product segments, the major product portfolio that is well known in
the international market includes; SUV’s, Sedans, Sports cars, etc. Mercedes Benz also has
different vehicles such as; GLE, GLS, GLA, and GLC in the product portfolio of its SUV sector
along with a wide range of roadsters and cabriolets in the heavy vehicle segments (Kotler,
2015).
BMW on the other hand also offers a wide range of premium cars and bikes to the consumers
in the international market. The products of BMW are sold under the three brands known as;
BMW, MINI, and Rolls Royce. There are about 13 research and development centers of BMW
located in around five countries of the world. The cars and bikes that are produced by the BMW
are highly efficient and reliable. Also these products are incorporated with the advanced set of
capabilities and features. The products of BMW are also integrated with the latest technologies
and digitalization.
PRICE
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Another important element of the marketing mix on the basis of which the comparison of
Mercedes Benz and BMW is done is Price. Here the price depicts the cost of products or
services that are offered by the organization to the consumers in the market. Mercedes Benz is
well known brand in the world that is recognized for its premium luxury cars, and thus the
targeted segment of this organization is those customers who prefer quality above the price of
the products. Thus, the prices of these cars are always at the higher end. Due to its premium
features and competition, the average price range of the cars of Mercedes Benz lies between
$40,000 and $100000 in the overseas market.
BMW also offers a variety of luxury vehicles in the market that consists of premium features,
and thus the price range of the products offered by the BMW is also on the higher end. Along
with the brand itself, the associated brands of the BMW such as; Rolls Royce and Mini Cooper
also carry out the same price range of their respective products (Kotabe, et al. 2014). Along
with the price range of BMW products, the pricing of vehicles’ spares as well as the servicing
costs of the automobiles are also comparatively higher than the competitors.
PLACE
Being a multinational organization, Mercedes Benz operates with its dealerships and service
stations in various countries of the world. On the basis of sales and profit generation, the major
international markets of the Mercedes Benz include; Asia pacific, North America, China,
Germany, Europe, etc.
On the other hand, BMW also operates in a wide range of nations all across the world.The
dealership as well as manufacturing facilities of theBMW has been spread inmore than 10
countries of the world. The first and major headquarter of the organization is set up in Bavaria,
Munich.
PROMOTION
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It is one of the most essential elements of the marketing mix strategy.The marketing manager
along with the other team members of the Mercedes Benz’s marketing department develops
different strategies for the promotion of organization’s products or services in the market.For
the promotion of its products, Mercedes Benz utilizes different mediums such as; social media,
online websites, TV, printed media, etc.
BMW also exploits an assortment of different media channels for the promotion of its products
and services in the international market. These different promotional media tools include;
printed media, online sources, TV, billboards, etc. The marketing committee of the BMW also
organizes an event on 1st April of every year as a part of the promotional strategy.
PEOPLE
People here refer to the valuable human resources of the organization that serves the company
to achieve all the aims and objectives of the business. Mercedes Benz provides an assortment
of services to satisfy the needs and requirements of the organization’s key peoples. As a result,
it enhances the level of motivation within the people associated with the company, and
consequently the organization can achieve all of its organizational goals effectively.
There are approximately around 100000 employees working at the different branches of the
BMW in all across the globe (Shalender, et al. 2015). According to the several well-known
market researchers, it is very important for an organization like BMW to have right people
within the workplace so as to drive the business forward successfully.
PROCESS
Process is one of the significant elements of the service marketing mix. It refers to the method
that has been used by the various departments of an organization to carry out their respective
operations successfully and effectively. The production department of Mercedes Benz utilizes
the process of lean production within its workplace, whereas the organization such as BMW
exploits the just-in-time procedure within its workplace. The different processes that are used
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by the organizations like Mercedes Benz and BMW can help them to successfully enhance the
quality of their products and services, and as a result could attract more and more customers
towards their association.
PHYSICAL EVIDENCE
In today’s world, the importance of physical evidence of the products or services of an
organization is very high. All the cars that are developed by the Mercedes Benz are of highly
attractive looks and are available in a variety of different color options (Babin, et al. 2015).
The cars and bikes developed by the BMW attract different segments of customers from the
market on the basis of attractiveness of the vehicles that are produced and served by the
company.
Thus, the above mentioned was the comparison of Mercedes Benz and BMW on the basis of
7P’s of marketing mix.
PART B
LO3
P4 PRODUCE AND EVALUATE A BASIC MARKETING PLAN FOR MERCEDES
BENZ
EXECUTIVE SUMMARY
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Mercedes Benz is a German auto car maker and a leader in luxury cars. Here, an analysis is done
on vision and objective of the company and the political, legal, environmental, social and
technological factors which make an impact on the global operations and strategic planning of
the company (Vigneron and Johnson, 2017). An overview of the marketing strategies of the
company is presented which includes segmenting, targeting and positioning of the company,
budget involved in the marketing activities.
COMPANY OVERVIEW
Mercedes Benz is a Luxury car maker based in Germany. The company is operating globally in
30 countries of Europe, Asia, Africa, North American and South America. Mercedes Benz is
known for its quality and innovation and has set many benchmarks in security and technology
in the automotive industry. Mercedes Benz is a popular brand name all over the world and is
included in the list of most recognizable brands in the world. The company has recently
launched its AMG models which have better handling, stability and design.
Figure 2: Mercedes Benz logo
[Source:
https://upload.wikimedia.org/wikipedia/commons/b/b9/Mercedes_Benz_Logo_11.jpg]
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CURRENT MARKETING SITUATION ANALYSIS
The current marketing situation analysis can be done with the help of tools like SWOT and
PESTEL analysis these tools helps in analysing the external and internal environment of the
company. By the help of these tools, the company can analyse the current market position of
the company and the market worth of the rival companies (Chen, et al. 2013). Based on these
observations the management can design a better marketing plan to achieve the long-term
goals of the company.
SWOT ANALYSIS
The SWOT analysis is an effective tool to analyse the internal strength and weakness of an
organisation, including the opportunities for the company in the market. The tool also
highlights the threats for the company at present and in near future (Ayub, et al. 2013). With
the help of these inputs, the company can design an effective strategic and marketing plan. The
strength, Weakness, opportunities and threats for Mercedes Benz are discussed below:
STRENGTHS
 A strong brand awareness worldwide
 Strong focus on safety and precision in
the cars
 High spending on research and
development activities
WEAKNESSES
 Mercedes cars are not much fuel efficient.
 Mostly serving in the niche market and
not making any low-cost car models.
 Safety issues in some of its models which
have caused negative branding of the
company.
OPPORTUNITIES
 The tremendous growth in the
automobile sector in the emerging
economies of the world.
THREATS
 New luxury car models launched by
competitors such as Porsche, Genesis,
Audi and BMW.
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 Opportunities to expand operations in
Asian economies such as China and India
 New opportunities in the electric car
making sector.
 Low disposable income due to turbulence
in global economies
 Customer focus on sustainable practices
in manufacturing
PESTEL ANALYSIS
The PESTEL analysis is a tool which is used to understand the external factors which make an
impact on the strategic decision making of the company (Zalenger, et al. 2013). Mercedes Benz
is operating internationally and these factors play a deciding role in the profit-making capability
of the company.
Political Factors
The political issues for the automobile companies working globally are complex. There are
many trade barriers and tax rules for doing business in a foreign land. Many countries demand
to establish a manufacturing plant in their countries. European Union has started imposing VAT
on the vehicles which are imported from Germany. Many other such taxes are imposed after
the BREXIT which has increased the overall cost of the company. However, there are many
opportunities in the emerging markets of BRICS countries like China and India. These countries
welcome European companies to do business in their country as it increases the economic
activity in the country and also provides employment on a large scale.
Economic Factors
The recession in the US and many other European countries have increased the price of raw
materials like steel, rubber, iron, copper and computer chips which are widely used in car
manufacturing, increase in prices of these products increases the overall cost of manufacturing.
The penalties and fines imposed on the company for not following the legislation affect the
economy of the company. One such example was the fine imposed by US government for not
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following average fuel economy laws. Adherence to the environmental sustainability requires
many technological changes which also affects the overall economy of the company (Minefield,
2012).
Social Factors
Consumer preferences are changing with changing lifestyle. The people now prefer car models
which ensure safety and are produced in a sustainable way. To satisfy this demand the
companies are focusing more on the safety features of the cars. Technologies like airbags, fire
control and emergency braking systems are installed in the modern cars. The company has
initiated many CSR activities which include organising cultural and community events and the
events to nurture art and music. The company has started school programs to involve young
students in the cultural activities like dance and music.
Technological Factors
Apart from making a technological change regarding better performance, fuel efficiency and
safety arrangements the car makers have to make many technological changes in the
advertising and marketing activities. A survey concluded that around 70 percent of people visit
the website of the company before making a purchasing decision. Many blogs compare the
performances and prices of different car makers, these inputs play an important role in making
a buying decision. Therefore companies have increased the expenses in digital marketing of the
products. Mercedes Benz has done many changes in the design of its website and developed a
dedicated mobile app for the Smartphone users.
Environmental Factors
There has been an increased concern by the governments to decrease the carbon footprint and
adopt sustainable ways of production so that the manufacturing activities have minimum
impact on the environment. Installation of effluent treatment plants in the industry and using
energy efficient practices in the company premises are few such practices. The company has
launched new B-class models which have many energy saving functions such as automatic
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