Mercedes-Benz UK Marketing Strategy Analysis: A Comprehensive Report

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INTRODUCTION TO MARKETING
Mercedes-Benz UK
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Contents
INTRODUCTION...........................................................................................................................3
DISCUSSION..................................................................................................................................3
COMPANY DETAILS................................................................................................................3
MARKET PLACE AND CUSTOMER NEEDS IN UK............................................................4
MACRO AND MICROENVIRONMENT ANALYSIS OF MERCEDES-BENZ.....................5
PESTLE ANALYSIS..............................................................................................................5
SEGMENTATION, TARGETING AND POSITIONING OF THE COMPANY.................6
MARKETING MIX ELEMENTS OF THE COMPANY...........................................................7
SWOT ANALYSIS...............................................................................................................10
CONCLUSION AND RECOMMENDATIONS..........................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
The present market situations for the organisations have been quite dynamic since the needs of
the customers and other stakeholders are changing regularly (Belz and Peattie, 2012). According
to Kotler and Armstrong (2010), for every industry, the role of the marketing has been become
more crucial than ever and hence the industries are focusing more towards the new opportunities
where they can get success. As per the study by Feng and Papatla (2012), especially in the
automobile industry, the role of marketing is changing very fast with the advent of new
technologies, changing market needs, need to reduce the costs to the company, the marketing and
promotional practices are also changed.
Talking about a premium and luxury brand of the world in the automaker sector, Mercedes-Benz
is a highly popular brand for which, people still dream about. The history and relationship of
Mercedes and marketing are quite unrelated since the company sales its cars on the basis of its
previous reference till last decade and with the increasing concerns to the company, they had
started promoting their cars to the world. At present, the company has understood the role of
marketing and reaching its customers, and hence they have established a well-developed website,
promote cars on newspaper advertisements, introduced themselves on social media platforms etc.
in order to attract and reach people (Mercedes-Benz, 2019). So, considering this, the document
will be going to evaluate the marketing strategy of the company in the car manufacturing
industry of UK and determine the value and position of the company through analysing its macro
and microenvironment, marketing mix, segmenting and positioning and internal strengths and
weaknesses of the company.
DISCUSSION
COMPANY DETAILS
The history of the Mercedes began in 1886 when Karl Benz has invented the first car in the
world. This invention is still taken as a pioneer part for the innovation and technology by the
company as well as by others. The company is focused on innovation and are exploring the ways
to make the motoring highly suitable with the help of e-mobility, stretching the boundaries of
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production and operations management systems, working on smart with its cars of a new era
which are highly efficient and forward-thinking mobility. The revenue of the group in 2018 is
€167,362 million which has a positive 2% change from previous and particularly of Mercedes-
Benz cars is €93,103 million (Daimler, 2018). In addition to this, for creating a valuable social
presence, the company is associated with Laureus Sport for Good Foundation since 2000 to serve
disadvantaged children and young people around the world (About Us, 2019).
MARKET PLACE AND CUSTOMER NEEDS IN UK
United Kingdom is a wide and varied market place where the rate of GDP is running positively
even after the prospected Brexit, changing market situations, political imbalances, size of the
economy. While, the prospected growth rate of around 2%, the markets are full of opportunities
(Financial Times, 2019). At the same time, the role of the customers is increasing as they are the
one who is ready to utilise the products and services offered by companies (PWC, 2019). So, in
terms of Mercedes has shown its potential customers types as a company car driver, Fleet
Manager. Small business, Chauffeur car owners etc. While, the company is also serving
customers who are willing to get a hybrid car with high fuel efficiency (Mercedes-Benz, 2019).
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MACRO AND MICROENVIRONMENT ANALYSIS OF MERCEDES-BENZ
PESTLE ANALYSIS
POLITICS
The companies like Mercedes are far away from political concerns as they obey and impose all
the necessary regulations to operate in the markets. Being a global brand, they know their
identity and have good compliance with the political aspects. In addition to this, it can be said
that aspects like import, export, taxation of governments, etc. cause slight effects on the business
of the company.
ECONOMIC
Mercedes is one of the leading car manufacturer and no doubt, it very big pockets of finance
working and servicing in luxury. The company takes the pretty high piece for their products
which defines its quality and excellence in cars and hence it can be said that economically they
have negligible concerns from markets, especially in the UK where they receive a good price for
their cars with a significant profit margin.
SOCIAL
In terms of social value and popularity, Mercedes is linked with the with Laureus Sport for Good
Foundation since 2000 and a proud member of the organization working to serve and improve
the lives of the children through several sports projects. In addition to this, Mercedes is working
on its hybrid cars in order to make a good brand image towards sustainability in markets and lead
the innovation with its high-tech cars.
TECHNOLOGICAL
Being the pioneer of the automobile, the company is working on pleasant, resource friendly
mobility, safe, day in day out automobile cars (Mercedes Benz, 2019). In terms of technology,
the company is working on e-mobility, Connected, Autonomous, Shared & Services and Electric
vehicles in which Daimler is making a great success in its path. Mercedes is known for its
advanced engineering, automation, connectivity, mobility concepts, hybrid engines etc.
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ENVIRONMENTAL
Since, the past decade, the concerns regarding environment damage gets increasing and hence
Mercedes has established some ways to lower CO2 emissions that can help in reducing the costs,
they are cutting the consumption (fuel) and hence costs and several other aspects that make it
compact and strong in the markets over other brands.
LEGAL
Acting with uprightness is the imperative thing to long timespan achievement, and Mercedes
pursues this standard when directing exchange everywhere throughout the world. Consistency is
a crucial piece of the honesty culture at Mercedes given that consistency depends on acting with
trustworthiness and represents conformance to nationwide and overall laws. It is a point of the
way to us at Daimler that we hold fast to all profitable legitimate rules, internal standards and
wilful responsibilities, even as showing up with moral standards (Daimler, 2019).
SEGMENTATION, TARGETING AND POSITIONING OF THE COMPANY
SEGMENTATION
Mercedes targets only premium class, business class, retired government officers etc. for their
cars and the segmentation strategy has simple criteria of economy and finance. The classes are
divided into sections of economic class and the business class is kept at a high priority among all
others.
TARGETING
After segmentation, the targeting strategy of the company aims at customers already having a
Mercedes or belongs to a highly stable economy class people who can create more value to their
brand. As a matter of fact, the reason behind low marketing until decades is just to serve few but
true excellence.
POSITIONING
Recently, Mercedes has changed its positioning strategies for the sustainability of the business
through its strategy to overcome from the environmental challenges and some attractive and
effective marketing strategies like use of social media platforms, internet of things, newspaper
advertisements etc. so as to reach their customers more efficiently and maintain relationship with
them for long terms.
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MARKETING MIX ELEMENTS OF THE COMPANY
7P’S MARKETING MIX
PRODUCT WITH PRICES
The products of the Mercedes, Daimler group includes its cars from A-series, B class, C class, E
class, G class, hatchbacks, trucks, coupe’, AMG models etc. offered all around the UK. These
cars are highly popular in the UK and the reason behind this is the excellence in quality and
served by the company
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Figure 1: Products of Mercedes in the UK
Source: [Mercedes-Benz, 2019]
PLACE
In the UK, Mercedes has around 20 showrooms that are available to all the people who wish to
buy a new one or get serviced their old cars etc. These physical places depict the production
centres too, and in terms of serving, they are feasible to people for having a great car
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Figure 2: Locations Mercedes, UK
Source: [Google Maps]
PROMOTION
Company has several offers and promotions under their umbrella to attract people, with personal
contract hire, approved used A-class cars, resale values for cars etc. involved in its promotion
strategy, in addition to this, Mercedes also facilitates an option for EMI for those who wish to
have a brand new Mercedes in your hands.
PROCESS
Marketing, sales, promotion, finance management, production, HR etc. are all involved in
Mercedes with efficient models and use of the tested methodologies for these operations
management like leam management, product life cycle, waste management, energy usage etc. are
also involved in its day to day tasks.
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PEOPLE
Mercedes tales care of its people, employees, customers, all the other stakeholders in order to
create a better life for all through their excellent services in class. Likewise, any other business,
Mercedes also keeps its people ate the centre of the business so as to satisfy them effectively.
PHYSICAL EVIDENCE
Mercedes doesn’t require any reference to make people understand what the brand is, and the
physical evidence of Mercedes depict that it is present throughout the world, have numerous
production regions, thousands of customers who define their success not only in the UK but in
the world.
SWOT ANALYSIS
STRENGTHS
 Premium class, dream brand, popular in the world
 Manufacturing units worldwide to reduce the transportation costs to customers
 Increasing innovative automotive designs working in the latest technologies
 Being a pioneer of the industry, the company is financially stable
 Have a diverse portfolio
WEAKNESSES
 Few target customer groups, due to products for single economic class people
 Distribution is stunted
 Conflicting goals of the group companies serving similar services at low costs
OPPORTUNITIES
 Increase in demand for a premium vehicle like Volvo, BMW, Audi etc. create
opportunities for Mercedes
 Growing Automobile industry
 Growth shifting to Asian markets
 Strategic Alliances with other brands
 Technological advancement
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THREATS
 Intense Competition from other players in the segment
 Sluggish Economy
 High fixed cost and investment in R & D
 Volatility in the fuel Prices
CONCLUSION AND RECOMMENDATIONS
In conclusion, it can be stated that the companies like Mercedes has created their very high
standards and value which is not easy for one to achieve while the analysis of the macro and nice
environment of the business also supports their current business operations and depicts that the
company will grow further in future and will keep its throne to itself with the latest designs,
innovative and high-class excellent cars produced by Mercedes group. While in the
recommendation, it can be said that the brands like Mercedes are far more worthy than others in
order to keep the place of its business in markets for long terms in future. The company should
focus on Asian markets and emphasis on India and China with UK and USA so as to serve a
wide range of people with a latest designed piece of architectures by its engineers and production
teams. At last, in recommendations, it can be suggested to Mercedes that there is a need to serve
people by the ways that require, while at the same time, there are some concerns that have to be
dealt with in the business and hence Mercedes should also take care of this things to their
sustainability in future.
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REFERENCES
About Us, 2019, online available at
https://www.mercedes-benz.co.uk/passengercars/the-brand/about-us.html last accessed on 15th
April 2019.
Belz, F.M. and Peattie, K., 2012. Sustainability marketing: A global perspective.
Daimler, 2018. Annual Report 2018, online available at
https://www.daimler.com/documents/investors/reports/annual-report/daimler/daimler-ir-annual-
report-2018.pdf last accessed on 15th April 2019
Daimler, 2019. Integrity and Compliance, online available at
https://www.daimler.com/company/corporate-governance/compliance/ last accessed on 15th
April 2019
Feng, J. and Papatla, P., 2012. Is online word of mouth higher for new models or redesigns? An
investigation of the automobile industry. Journal of Interactive Marketing, 26(2), pp.92-101.
Financial Times, 2019. The UK economy at a glance, online available at
https://ig.ft.com/sites/numbers/economies/uk/ last accessed on 15th April 2019
Kotler, P. and Armstrong, G., 2010. Principles of marketing. Pearson education.
Mercedes Benz, 2019. Striving for Innovations., online available at https://www.mercedes-
benz.com/en/mercedes-benz/next/?owda=misc last accessed on 15th April 2019
Mercedes-Benz, 2019. Fleet and Business, online available at https://www.mercedes-
benz.co.uk/passengercars/buy/fleet-and-business/fleet-and-business.module.html last accessed
on 15th April 2019.
PWC, 2019. UK Economic Outlook, Prospects for consumer spending and regional growth in
March 2019, online available at https://www.pwc.co.uk/services/economics-policy/insights/uk-
economic-outlook.html last accessed on 15th April 2019
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