Mercedes-Benz: Marketing Fundamentals and Strategic Analysis Report

This report provides a comprehensive overview of the marketing fundamentals employed by Mercedes-Benz. It begins with a background of the company, highlighting its history, innovation in luxury vehicles, and global presence. The report then delves into the company's product range, detailing passenger cars, trucks, vans, and buses, emphasizing the company's commitment to quality and comfort. A significant portion of the report is dedicated to Mercedes-Benz's pricing strategy, which focuses on premium pricing, and competitive analysis within the luxury market. The report also discusses the company's global distribution network, including its service stations and franchise locations across various countries, with a focus on maximizing sales through dealer networks and online presence. Finally, the report examines Mercedes-Benz's promotional strategies, including the use of various media channels, social media marketing, sales promotions, and collaborations with celebrities. The analysis includes references to figures, sources, and relevant literature to support the findings.

MARKETING
FUNDAMENTALS
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TABLE OF CONTENTS
Background of Mercedes Benz....................................................................................................3
Company products and their details............................................................................................5
Product prices..............................................................................................................................7
Place.............................................................................................................................................7
Promotion....................................................................................................................................8
REFERENCES..............................................................................................................................10

Background of Mercedes Benz
Mercedes Bens is well known for innovating of luxury vehicles and commercial
vehicles. The first name was appeared as Daimler Benz and principal vendor in premium
vehicles in world along with that many more of passenger have been sold out their cars.
Headquarter in Stuttgart, Germany. It was founded in 1926 and it is world largest brand name
which keeps their customer or existing customer attraction from their luxury cars plus they can
sell out many numerous of cars to their luxury target audience. This company was founded by
Karl Benz and Gottieb Daimler. As they have marked large number of innovation in many others
vehicles also like buses, cars, sports cars and many more.
Karl Benz has its owned creation of first internal engine in car, which was
financed by Benz Patent Motorwagen in 1886. An European trademark developed entrepreneur
worked named with Mercedes after his daughter Jellinek (Baines and et.al., 2017). In 1901 she
started business and promoted in form of market strategies as horseless automobiles amid the
uppermost circle of civilization in his adopt residence, at to facilitate occasion and gathering
situate of France and Europe, Benz in 1886 has widely regarded the first automobiles. Karl has
started working on vehicles part along with that he have big dream of having big luxury cars in
world. He was clear about his intention while by using battery, gear, shift in car parts. The other
aspects which their brand have made with making them in market while following up targeted
customer on social media, which makes it more easy for organization in developing them with
some new strategies.
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Figure 1
Source:- Mercedes Benz 2020
The first Mercedes Benz was produced as brand name which was following Karl as
merger and Daimler's to formed companies and that was formed in 1926 year. The company also
introduced many safety technologies plus many other innovations which has become later
common for other vehicles. The company created their own television and prints for having their
best advertisements (Deepak and Jeyakumar, 2019).. In 2019 Daimler has announced that until
marquee point of company which could be in separate wholly owned that might be called as
Mercedes Benz AG.
Mercedes Benz is one of best known luxury car vehicles along with developed more
automotive brands across the different countries and targeted many other countries being to be
developed soon. Mercedes have initial have better improved cars with them amidst while in
maintaining well reputation for their durability and quality.
The first passenger who carry out all four wheel and feel their targeted consumer more
better. Mercedes has also taken many other sports sponsor ship mainly in Football in addition to
also provide naming with right persons (Vilá Trepat, 2016). It also calculated braking force, try
to avoid many accident with their protection creation if something emergency can be happen
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Company products and their details
Mercedes-Benz is well known for producing opulence vehicles and trading vehicles with
iconic designs (Jedidi and Heil, 2019). Its products are only the solo strongest point of its brand.
The motto of our company is to always provide the best quality products which can help us to
fulfil requirements and desires of beloved customers. We deliver a huge range of products in
various varieties that help them to travel with great comfort and enjoy as per their daily needs.
Product range of Mercedes Benz:
Passenger cars
Cars are the foremost products of our company for which we are popular. We produce New
Mercedes- Benz S class, Mercedes-Benz A class Mercedes-Benz Citan, Mercedes-Benz E class,
Mercedes-Benz T class, Mercedes- AMG, Mercedes-Maybach and Mercedes- smart. These all
are prepared to give best comfort and effectiveness for our customers to enjoy relevant facilities
of our products in their need. Therefore, if anyone looking forward for a great consolation and
luxuries, Mercedes Benz is the appropriate organization for them.
Figure 2
Source: Mercedes Benz 2019
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Figure 3
Source: Mercedes Benz 2018
Figure 4
Source: Mercedes Benz 2020
Trucks
Besides our passenger cars, Mercedes Benz also provides a huge range of trucks in great values.
The company provide trucks to make improvements in transport and to make moving of the
sensitive the goods simple and easy with a lot of safety provisions in the latest designed trucks.
Our company produces different types of trucks for different operations that are Mercedes-Benz
Trucks: Freightliner, Fuso, Western star. BharatBenz trucks. If someone wants a perfect mover
for their sensible work they can consider our company for fulfilling their demands according to
their requirements and perspectives.
Vans
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Mercedes Benz plays a vital role in producing and supplying its vans worldwide with its special
productions like Mercedes-Benz Vans, Mercedes Camper vans. Those newly produced products
help our company to grow globally and respond to increased demand across the world.
Buses
When our company is providing every range of product and delivering comfort to buyers and
persons worldwide then how could buses be missed by our organization. These buses become
very necessary to be produced when it comes to our brand. Mercedes Benz got very famous on
selling buses such as Setra, Thomas built Buses, Bharat Benz buses (Strenkert and et.al, 2017).
Services
Mercedes Benz also provides mobility and financial services for its customer’s daily life.
Product prices
Mercedes Benz presently uses premium cost and competitive based strategy and does not
obtain low cost strategy because our company has a large number of rivals in the industry and it
comes under segment of luxurious comfort provider. Our company serves to a niche segment of
market where the value and worth matters instead of cost. Our company takes prices into
consideration and set costs of the products according to their looks and features. Mercedes Benz
also uses product bundle pricing sometimes and sell bundles of products at a time when required.
Our company uses optional product pricing for the common products and seperates costs for the
attached accessories which come along with the product.So, the price is always high. Its price
ranges starts from £25000 to £100000 and can touch higher rates than this. Our organization uses
premium pricing strategy because of its competitions and distinct features which makes it unique
and demandable.
Place
Mercedes Benz is a one of the largest global retailer of luxury and commercial vehicles.
Company have its service stations and franchise present many countries around the world. The
prime markets of Mercedes Benz are Europe, Germany, America, Asia pacific etc. To maximise
its sales in UK, company has increased their no. of dealers to distribute its products so that the
product is easily available to the customers (Lahtinen, Dietrich, and Rundle-Thiele, 2020).
Company’s multinational reach shows strong place & distribution strategy. Company has a
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strong network of more than 500 suppliers who provide them with the raw materials whenever
needed for production. Mercedes Benz has built the close relationship with the suppliers enabling
them to introduce exclusive and innovative & attractive features on its product. The company
motto of giving the premium and the best to its customers has made its goodwill. Mercedes Benz
must open their shops on social media as well, where it can show their products detail on these
platforms and sell them with help of social media content and posts. Company can also focus on
enhancing its online presence through its websites and social media platforms which are more
user-friendly and simple to use (Thabit, and Raewf, 2018). The dealers have in recently grown
and can attract good no. of customers, so Mercedes Benz in UK, must make sure that it sells their
product through personal selling to wide reaching retailers. This strategy will increase its sales
more. Mercedes Benz can open up more company operated retail showrooms, where it can offer
all its latest products. This will definitely help in saving cost as the wholesaler and retailer
margin will not exist for the company.
Promotion
Mercedes Benz uses several media channels to advertise and promote its product. It used to
advertise on traditional media and continues to advertise their also because it has huge reach and
ability to give information and attract customers. These days Mercedes Benz uses media which
cheaper in comparison to traditional media is social media platforms to advertise because of the
increased presence and increasing use of internet (McDougall, 2017). Company advertise its
latest and upcoming products on various online platforms such as YouTube, Facebook,
Instagram and Twitter due to increased monthly usage of these social media platform. Company
have very good amount followers and subscribers on its social media pages who wait for the
information and content related to company’s products, Mercedes also post frequent content in
order to have maximum customer engagement. Company undergoes several methods to
promoting its product such as sales promotion by regularly participating in various trade
exhibitions and events and does personal selling with a large sales team across the world to boost
its presence in the retail market (Roşca, 2010). Mercedes Benz has the best marketing
professionals who prepares the promotional budget every year and collaborate with stars in the
different industry and advertise with the help of them.
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Figure 5
Source: Mercedes-Benz Van launch, 2020
Figure 6
Source: Mercedes-Benz Global Brand Ambassador, 2018
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REFERENCES
Books and Journals
Baines, P. and et.al., 2017. Fundamentals of marketing. Oxford University Press.
Deepak, R.K.A. and Jeyakumar, S., 2019. Marketing management. Educreation Publishing.
Jedidi, H. and Heil, O., 2019, July. PRESTIGE PRICING IN MARKETS FOR LUXURY &
PREMIUM PRODUCTS. In 2019 Global Fashion Management Conference at Paris (pp.
636-649).
Lahtinen, V., Dietrich, T. and Rundle-Thiele, S., 2020. Long live the marketing mix. Testing the
effectiveness of the commercial marketing mix in a social marketing context. Journal of
Social Marketing.
McDougall, K., 2017. Oh ADA, Won't You Buy Me a Mercedes Benz?. Northwest Dentistry
Journal, 96(2), pp.5-7.
Roşca, V., 2010. Celebrity endorsement in advertising. Management & Marketing-Craiova, (2),
pp.365-372.
Strenkert, J., and et.al., 2017. The New Plug-in Hybrid Powertrain for the S-Class. MTZ
worldwide. 78(6). pp.40-45.
Thabit, T. and Raewf, M., 2018. The evaluation of marketing mix elements: A case
study. International Journal of Social Sciences & Educational Studies, 4(4).
Vilá Trepat, I., 2016. Introducción al marketing/Marketing fundamentals.
Online
Mercedes Benz 2020 [Online]. Available through: <
https://thecarmarket.co.za/2009/03/mercedes-benz-south-africa-mbsa-to-shut-plant-for-
weeks-at-a-time/ >
Mercedes-Benz announces Slone Stephen Global Brand Ambassador, 2018 [Online]. Available
through:< https://brandingforum.org/branding/mercedes-benz-sloane-stephens/>
Mercedes-Benz Van launch event, 2020 [Online]. Available through:
<https://cpnonline.co.uk/news/mercedes-benz-vans-launches-big-event-biggest-ever-
offers/ >
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