Mercedes Brand: Marketing Strategies, Analysis and Recommendations

This report provides a comprehensive analysis of Mercedes' marketing strategies, focusing on its competitive advantages and market position. The report begins with an executive summary followed by an introduction outlining the importance of marketing strategies for business success, particularly in the luxury car market. It then delves into a situational analysis, examining political, economic, social, technological, legal, and environmental factors (PESTLE) affecting Mercedes. A SWOT analysis is included, highlighting the brand's strengths, weaknesses, opportunities, and threats. The report identifies Mercedes' unique selling proposition (USP) and analyzes its competitive landscape, including key competitors like BMW and Audi. The marketing strategy section discusses Mercedes' approach to increasing production, performance, and customer satisfaction, including the use of the marketing mix model, market segmentation, and positioning. The report also covers segmentation, targeting, and positioning (STP), outlining the brand's target audience and market segmentation strategies. SMART objectives and goals are defined to guide the brand's marketing efforts. Finally, the report concludes with marketing recommendations to enhance production, profitability, and customer satisfaction, contributing valuable insights into Mercedes' marketing approach.

MARKETING STRATEGIES

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 and it is headquartered at 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.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
SITUATIONAL ANALYSIS......................................................................................................1
COMPETITIVE ADVANTAGE (USP)......................................................................................3
MARKETING STRATEGY.......................................................................................................3
PART 2............................................................................................................................................4
SEGMENTATION TARGETING & POSITIONING................................................................4
OBJECTIVES AND GOALS......................................................................................................5
MARKETING STRATEGIES AND RECOMMENDATIONS.................................................6
RECOMMENDATIONS.............................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Marketing strategies are very crucial for business that it helps to manage changes within
firm and production in order to enhance profitability (Cronin, Smith and Martinez, 2011). 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.
PART 1
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 (Ryan,
2016). 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 equipment’s 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
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(Glanz, Bader and Iyer, 2012). 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 (Solomon,
Dahl and Polegato, 2014). 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 (Belz and Schmidt‐
Riediger, 2010). The demand of premium vehicles is also increasing which helps to
enhance production. The technological advancements also helped towards hybrid cars as
Mercedes has an 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 (Smutkupt, Krairit and
Esichaikul, 2010). 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
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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 (Gabrielsson, Gabrielsson and Seppälä, 2012). 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 (Chen, Lin and Kuo,
2013). 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 (Hallbäck
and Gabrielsson, 2013). 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 equipment’s, 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
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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 (Oliver and Rosen, 2010).
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
equipment’s 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 (Brinson, Lee and Rountree, 2011). 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 (Chen, Lin and Kuo, 2013). 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.
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Positioning: Positioning will help to identify and determine differential advantage towards each
market segment (Brinson, Lee and Rountree, 2011). 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 (Oliver and Rosen, 2010). 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 (Hallbäck and Gabrielsson, 2013). 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 (Chen, Lin and Kuo,
2013). 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.
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Time bound: It can be said that goals required a specific time to achieve target date or deadline
to meet objectives (Gabrielsson, Gabrielsson and Seppälä, 2012). 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 (Smutkupt, Krairit and Esichaikul, 2010).
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
(Belz and Schmidt‐Riediger, 2010). 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 (Solomon, Dahl and Polegato, 2014). 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.
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 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 (Glanz,
Bader and Iyer, 2012). 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 (Ryan, 2016). 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 analyzed 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 (Cronin, Smith and Martinez, 2011). 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
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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 equipment’s, 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 analyzed 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.
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REFERENCES
Books and Journals
Belz, F. M. and Schmidt‐Riediger, B., 2010. Marketing strategies in the age of sustainable
development: evidence from the food industry. Business Strategy and the
Environment, 19(7), pp.401-416.
Brinson, A., Lee, M. Y. and Rountree, B., 2011. Direct marketing strategies: the rise of
community supported fishery programs. Marine Policy, 35(4), pp.542-548.
Chen, L. C., Lin, S. P. and Kuo, C. M., 2013. Rural tourism: Marketing strategies for the bed and
breakfast industry in Taiwan. International Journal of Hospitality Management, 32,
pp.278-286.
Cronin, J. J., Smith, J. S. and Martinez, J.D., 2011. Green marketing strategies: an examination
of stakeholders and the opportunities they present. Journal of the Academy of Marketing
Science, 39(1), pp.158-174.
Gabrielsson, P., Gabrielsson, M. and Seppälä, T., 2012. Marketing strategies for foreign
expansion of companies originating in small and open economies: the consequences of
strategic fit and performance. Journal of International Marketing, 20(2), pp.25-48.
Glanz, K., Bader, M. D. and Iyer, S., 2012. Retail grocery store marketing strategies and obesity:
an integrative review. American journal of preventive medicine, 42(5), pp.503-512.
Martin, D. and Schouten, J., 2012. Sustainable marketing (Vol. 1). Boston: Prentice Hall.
Hallbäck, J. and Gabrielsson, P., 2013. Entrepreneurial marketing strategies during the growth of
international new ventures originating in small and open economies. International
Business Review, 22(6), pp.1008-1020.
Oliver, J. D. and Rosen, D. E., 2010. Applying the environmental propensity framework: A
segmented approach to hybrid electric vehicle marketing strategies. Journal of Marketing
Theory and Practice, 18(4), pp.377-393.
Ryan, D., 2016. Understanding digital marketing: marketing strategies for engaging the digital
generation. Kogan Page Publishers.
Smutkupt, P., Krairit, D. and Esichaikul, V., 2010. Mobile marketing: Implications for marketing
strategies. International Journal of Mobile Marketing, 5(2).
Solomon, M. R., Dahl, D. W. and Polegato, R., 2014. Consumer behavior: Buying, having, and
being (Vol. 10). London: Pearson.
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