Mercedes Benz E-Class: Global Market and Communication Strategies

This report provides a comprehensive analysis of the Mercedes Benz E-Class's global marketing strategies, focusing on product, promotion, and target market segmentation. It examines the application of globalization, localization, and glocalization in the context of international marketing. The report discusses the E-Class product offering, including its features and characteristics, and explores strategies related to product, promotion, and target market. It delves into market segmentation, covering demographic, psychographic, and benefits sought, providing insights into how Mercedes Benz positions itself in different global markets. The report highlights the competitive landscape, particularly in countries like the USA, China, Japan, and Germany, and analyzes how Mercedes Benz adapts its strategies to meet local consumer needs. The report also includes an executive summary, table of contents, bibliography, and appendices to support the analysis, making it a valuable resource for understanding the brand's global marketing approach. The report also includes the marketing theory when discussing globalization, localization and glocalization within the context of international marketing using a range of examples to enhance the discussion and academic sources to discuss marketing terminology.

Running Head: MERCEDES BENZ E-CLASS 0
Mercedes Benz E-Class
Global Market and Communication
Going global, acting local- communicating global brands to global markets.
Student Name:
Student University:

MERCEDES BENZ E-CLASS 1
Executive Summary
Mercedes Benz is a luxury cars brand and to look after the growth in the market they
need to set the target market and segments to maintain the growth locally, globally and
glocally. In the case of product affected and their promotion techniques to attract customers.
There are many models of Mercedes Benz they keep on innovating with improvement and
here talking about the E-Class shows the best sedans, coupe and other. The features,
characteristics of the model highly describe the type of consumers like coupe is for family
purpose with a two-door variant and more. Knowing about the competitors in the USA,
China, Japan, Netherlands, and Germany and in Asian Countries; Mercedes Benz is having
still the highest sales growth.

MERCEDES BENZ E-CLASS 2
Table of Contents
Introduction................................................................................................................................3
Product Offering.........................................................................................................................3
Strategies relating to Product.....................................................................................................4
Globalization..........................................................................................................................4
Localization............................................................................................................................4
Glocalization...........................................................................................................................5
Strategies relating to Promotion.................................................................................................6
Globalization..........................................................................................................................6
Localization............................................................................................................................6
Glocalization...........................................................................................................................7
Target Market.............................................................................................................................8
Market Segmentation.................................................................................................................9
Demographic..........................................................................................................................9
Psychographic.......................................................................................................................10
Benefits Sought....................................................................................................................10
Bibliography.............................................................................................................................11
Appendices...............................................................................................................................15

MERCEDES BENZ E-CLASS 3
Introduction
Nowadays, every business looks for the strategies used domestically and globally to
gain a competitive advantage over the customers because of the competitive business
environment.
This report focuses on the globalization, localization, and glocalization of the
international luxury brand selling cars, Mercedes Benz and internationally looking after the
strategies and segmentations used. Looking at the competitors of Mercedes Benz is important
to set the target market and segments (refer to Appendices) (Rathore , 2015).
Product Offering
The product offered here is Mercedes Benz E-Class Coupe, which equally appeals to
heart and mind with luxury, sportiness and high-tech to an automotive personality with
liveliness providing pleasure of driving. This offered full smartphone unification, Widescreen
Cockpit and latest driver supporting structure; partially automated driving. Engine is
powerful with low exhaust outrush and comfortable removal. Characterised by different front
end with low-positioned sports framework and central star, a long bonnet with power domes,
muscular rear end and more has dynamic looks because of frameless side windows and active
brake support for emergency braking (Mercedes of Indy, 2017).
(Sameh, 2019).
E-Class Coupe has a ‘Car-to-X’
technology to communicate with a central hub for receiving updates and to report.

MERCEDES BENZ E-CLASS 4
Strategies relating to Product
Globalization
Globalization refers to the movement of goods, services, information, people and
money in business freely across the globe which helps in creating networks to communicate
and building connections. There are many advantages of globalization which helps in to
reduce the cost with constant production and sale of goods in the target market reduces
unemployment by encouraging FDI which helps in promoting economic growth (Schiavullo,
2019). Mercedes Benz is a huge manufacturer of luxury vehicles and here talking about the
2017 Mercedes Benz E-Class Coupe with a two-door variant Singapore launch with
multibeam LED, mobile unification, and assistance system and widescreen seat with
automated driving with a turbocharged engine.
(9tro Alliance, 2017).
Localization
Localization refers to the specific area or target market of any product where activities
happen in a business, it can be nationally or internationally but the product should be
manufactured there with its properties or characteristics and legal workings (localization,
2019). In China, the production of Mercedes Benz models in done in R&D Tech Centre with
new technology for growth opportunities and investment including battery-electric feature for
customer satisfaction according to their demands with efficiency and a large place for parking

MERCEDES BENZ E-CLASS 5
of at least 250 car models to test providing workshops for development of ‘Made in China’
products (Becker & Illi, 2018). In Asian countries like Pune, India, the plant is installed for
manufacturing and at a lower price as compared to China and Germany because of not so
flexible size of luxury cars in the Indian market where there can be full-fledged
manufacturing (Business Standard, 2015).
Localisation helps in gaining reputation, trading of skilled labours, development of
facilities, employment opportunities, solving problems and lowering production costs and
quality improvement (Astrid & Gerhard, 2010). There are many legal and technical
necessities for the country due to change in localisation, some policies and regulations
provided are justified and some are not. Mercedes Benz has a legal framework of automated
and autonomous driving stating the mobility of future. The Germany government has taken
the initiative where law do not allow autonomous driving as there is still a need at
international level for action. Technologies also activate new legal issues, they require data
protection; transparency, self-determination and data security is important.
Steering wheels in cars in Asian countries in on left side and in other countries globally like
Europe, Germany, China has the manufacturing of steering wheels on the right side and
because of this different functioning in different countries, the localization to manufacture
any product according to the living is different in particular places (Technical Stuff, 2014).
After implementing the right localization strategy, the business will gain more competitive
advantage and strength.
Glocalization
Glocalization, the word itself is the combination of globalization and localization
created in Japan which means that the product is manufactured according to the laws and
consumer in the local market but is distributed all across the globe (Racoma , 2018). The

MERCEDES BENZ E-CLASS 6
model of Mercedes Benz of the USA with left-hand driving is an original product and in
Malaysia, it was glocalised with right-hand driving which helps in increase in profits, have
knowledge about the brand and is easy to reach to the public effectively but increases
competition and indulge with high risk for the company. In Asian countries, glocalization
helps in the growth of domestic markets and there is an increase in imports of goods and
services wherein Malaysia, the exchange rate applied was fixed and has government
involvement. Mercedes Benz with a dealership network in 31 cities makes it easy for
consumers to have personal services anytime, anywhere (Adgully Bureau , 2012). Mercedes
Benz provides many manufactured offerings of engines at the trim level of their own market
but in abroad the cars offered has more powerful engines and interiors of higher ends (Forbes,
How Mercedes-Benz Accelerated Its Growth In 2015, 2015).
Strategies relating to Promotion
Globalization
Mercedes Benz does not need any promotion activities as its name is enough to
recognize. They use the slogan “The Best or nothing” as an impression which attracts
customers that the product they are buying will give you the best results with the good
warranty policy. Mercedes brand keeps on evolving with an expansion of range in vehicles
they introduce and there is already a high sale in the market. Still, they do online and
television advertising, social and print media and providing best customer service (Hirata,
1988).
(Doha, 2017).
Localization
Whenever they promote something anywhere they use the language of the same while
doing advertising to reach the local customers of the target market including other
promotions as well like magazines, billboards, social media platforms and more for attracting

MERCEDES BENZ E-CLASS 7
the target market in larger extent (Shay & Van Der Horst, 2019). Germany is the largest
market of automobiles and the growth strategy is same as of China globally where they
showcase the efforts to meet local customers’ needs because Chinese people prefer new ideas
and great products (refer to Appendices) (Forbes, Mercedes-Benz Is Catching Up With
Competition In China, 2015). Localization is for research, development, and production for
an increase in sales, car-sharing operations in China for serving the best by providing services
and show the dedication of promoting social development as well (Fusheng, 2017).
(Mathur, 2019). (Gerden, 2019).
(Jayachandran, 2016).
Glocalization
Glocalization is the best policy when thinking of international advertising in which
they even cross national boundaries to understand the local culture and needs of the
customers and if any company have a global presence than customers can easily know them
as a brand with personality and only some of the brands can make this happens from which
Mercedes-Benz is the one (Hackley, 2005). Mercedes try to make a global presence with the
local culture of customers so Glocalization has a slogan as “Think global, Act local” for

MERCEDES BENZ E-CLASS 8
meeting the demands from every side for possible advantages or benefits as a solution to
practice in business for global companies.
(CindyLi, 2014).
Target Market
When we talk about target market of Mercedes-Benz, it is clear that people do not
think about the creativity and think of a symbol of status, luxury cars and correct technology
where people look at it with an eye pop and for consumers the German automotive brand
think of creativity in designs where people can love the brand and make it reach to the next
level. They open a workshop for two days in respect of tradition and culture with “Brand
Experience, Mercedes-Benz” (Fischer, 2019). It should be a lifestyle statement and not just
an automotive brand. They use social media channels to target rich generations because they
do not produce low price cars with a scope of profitability including demographic area to
create brand image and awareness usually targeting the early 20s to early 40s (Zoeller, 2019).
The market leadership of Mercedes Benz was maintained in the markets of Germany and the
USA and their sales in 2017 were in Europe and Asian countries. The largest market where
the strongest growth was over 25% was in China (Liesenfeld, et al, 2018). Target market is
based on the division of consumers with common needs, behaviour and characteristics where
they can implement strategies through media channels and other best ways to reach them and
the brand is popular among young people with high income as it is expensive targeting both
males and females according to the needs of them (refer Appendices) (Bajpai, 2018).

MERCEDES BENZ E-CLASS 9
(Moss, 2015).
(Ostroff, 2017). (Wind Europe, 2018).
Market Segmentation
Division of market according to the customers and their characteristics, potential
customers responding to similar marketing strategies with similar needs, interests, and
locations are divided into segments. Other than this, the market can be divided into
demographic, psychographic and benefits sought to practice where the products are premium
and luxury (Liu, et al, 2017).
Demographic
Age, gender, income, family size, race, nationality and more are covered under
Demographic Segmentation including individuals for mass marketing to analyse market

MERCEDES BENZ E-CLASS 10
research and promotions (Obilo & Alford, 2018). Mercedes Benz looks after high-income
individuals with stable jobs, who are middle-aged, can be males and females and individuals
from the middle to the upper class. In China, the automotive models of Mercedes for Chinese
customers is a sign modern luxury hold strong future of the country and in India, dealers have
pre-orders from customers.
Psychographic
Individuals’ lifestyle, activities, interests, opinions are covered under Psychographic
Segmentation looking after the consumer buying behaviour (Hemsley-Brown, 2017).
Mercedes Benz goes through businessman who is urban professionals with high status as the
cars are quite high or expensive which provides more safety and luxury to maintain status in
the society.
Benefits Sought
Quality, performance, customer service, and other benefits are included in benefits
sought looking for the advantage which consumers discover from their product or service
(Arunachalam & Kumar, 2018). Mercedes Benz provides the products which can be used
from day to day basis, wherever they go and which defines the beauty of it. Benefits sought is
a segment of behavioural segmentation and the other is brand loyalty, where some customers
care a lot about the benefits provided by-products to pay attention to buy like saving fuel,
duration of engine and more. The product which can help in saving fuels for saving money
when the price of fuel rises. So they work on developing products which focus on an efficient
way of saving fuel.

MERCEDES BENZ E-CLASS 11
Bibliography
9tro Alliance. (2017, September 22). Mercedes-Benz E-Class Coupe - Singapore Launch.
Retrieved from 9tro: https://9tro.com/media/news/mercedes-benz-e-class-coupe-
singapore-launch
Adgully Bureau . (2012, September 12). Mercedes-Benz India sets newer benchmark in
customer interactivity! Retrieved from Adgully : https://www.adgully.com/mercedes-
benz-india-sets-newer-benchmark-in-customer-interactivity-51748.html
Arunachalam, D., & Kumar, N. (2018). Benefit-based consumer segmentation and
performance evaluation of clustering approaches: An evidence of data-driven
decision-making. Expert Systems with Applications, 111, 11-34.
Astrid, K., & Gerhard, R. (2010). Industrial localization and countries' specialization in the
European Union: An empirical investigation. Center for European, Governance and
Economic Development Research Discussion Papers, 106. Retrieved from Ideas.
Bajpai, P. (2018, April 20). China's Electric Vehicle Market. Retrieved from Nasdaq:
https://www.nasdaq.com/article/chinas-electric-vehicle-market-cm950709
Becker, K., & Illi, S. (2018, November 14). Daimler Accelerates Localization of Mercedes-
Benz Products with Investment in New Tech Center China. Retrieved from Daimler:
https://media.daimler.com/marsMediaSite/en/instance/ko/Daimler-Accelerates-
Localization-of-Mercedes-Benz-Products-with-Investment-in-New-Tech-Center-
China.xhtml?oid=41827136
Business Standard. (2015, July 15). Localisation making luxury cars affordable. Retrieved
from rediff.com: https://www.rediff.com/money/report/pix-auto-localisation-making-
luxury-cars-affordable/20150715.htm
CindyLi. (2014, November 12). Cindy (Jia Xin) Li's Blog. Retrieved from blogs.ubc.ca:
https://blogs.ubc.ca/cindyjiaxinliblog/author/CindyLi/
Doha. (2017, May 20). Lulu Launches 10 Mercedes Benz Cars Promotion. Retrieved from
Asiantelegraphqatar: https://www.asiantelegraphqatar.com/business-forums/indian-
business-community/lulu-launches-10-mercedes-benz-cars-promotion/