Household Vehicle Mercedes Benz Marketing Strategy - Case Study Example

Commodity Chain Analysis Page of the (Put the of the Commodity Chain Analysis of Household Vehicle Mercedes Benz C2304MATIC Introduction The new 4MATIC all-wheel-drive system presented the essential concept, with the engine installed longitudinally and the transmission and transfer case planned as a single unit which creates a compact and lightweight assembly that reduces frictional losses, and indicating a number of additional advantages compared to other systems wherein the drive unit is transversely installed. This layout allows the all-wheel-drive to attain similar fuel consumption compared to a two-wheel-drive model. Comfort on vibration and acoustic are a standard feature normally found in the current luxury models. Finest traction is guaranteed at all times, together with the utmost directional constancy and perfect handling. The recently multiple-disc clutch in the centre differential comes to the scheme's support when friction between the tires and ground is specifically low, such as when driving over snow or ice. (Horn 2008) Redefining the way ones belief as regards to driving with C-Class, and with the totally redesigned C230, one should consider about the value the fourth generation C2304MATIC offers. Its features such as the dynamic innovative exterior, power V-6 engines, agility control Commodity Chain Analysis Page 2 suspension, permanent all-wheel-drive scheme, and an instinctively designed interior that sets the whole thing at the driver's command, plus added feature of Bluetooth connectivity. The V6 dedicated a great deal of concentration to whatever that would add to the finest goal. Sophisticated computer schemes were used to calculate the flow of air, thus helping to optimize the flow of air from the air filter twin-chamber. This type considerably contributes to fuel Economy, hence the engineers of Mercedes Benz C2304MATIC refer to these as tumble flaps, which some measure signifies their intention: they literally produce the fuel/air mix to tumble, escalating the turbulence of the airflow and making it to penetrate the combustion chambers at higher speed, with a more consistent distribution. (Booth 2008) Commodity Chain The automotive industry, according to Gereffi 1994, is commonly considered as a typical illustration of a producer-driven commodity chain. It is differentiated by sizeable scale, intensive capital, and controlled by technology product cycles; manufacturer driven commodity chains are networks of global production wherein several final assemblers, one of which is Mercedes Bens, control the industry's major markets. The power and productivity of these incorporated final manufacturers get from their power over volumes, technology and domination over the chain's forward and backward connections, including product design, product specification, brands and R&D networks. Currently, it is noted in the literature, that three key trends have fashioned the modern structure of competition in the global automotive trade; and the same fashions have shaped new possibilities for competition for improving country auto-firms. These three fundamentals of Commodity Chain Analysis Page 3 global modifications in the auto trade for more that fifteen years now are: 1) consolidation in the top levels of the industry through a brandish of amalgamations and achievements in the 1980s and 1990s; and the outcome of which, the similar set of major players control markets internationally; 2) a stronger levelling of suppliers that has increased the value of a minor group of design-competent and global primary level dealers, whereas portioned the rest into contract producers and lesser level sub-contractors has drastically changed consumer and dealers relations, and the employer and employee relations; and 3) an increasing and unrelenting focus by the major assemblers and their primary level dealers on benchmarking dealers down the chain on the cost, deliverability and quality basis, has changed the basis for establishing who obtain to take part in the global supply base of the automotive industry away from cost, to a gradually more multifaceted and learning-intensive standard. (Daimler 2008) Regardless of the increasing wave of Foreign Direct Investment (FDI), many developing countries are, in so far, dealing with quandary in the automotive sectors; discovering that the domestic automotive supply industries that was cared for decades behind tax walls throughout the import replacement period are not essentially automatic recipients of supply linkages with the latest assemblers entering the domestic scene. Generally, today's domestic auto manufacturers have a small global space wherein to contend. However, astonishing productivity rises between global auto producers and their primary level dealers in current years. The rapid moves in technology and design, in terms of modern materials, modern processes and information technology, made is much difficult for native automakers in developing nations to update with Commodity Chain Analysis Page 4 the industry's technology frontier, or contend in global markets with no equity partnership with the most important players or their vital dealers In 2008, Mercedes Benz Canada has launched two new C-Class models, one of which is C2304MATIC. This innovative model made its world exclusive first appearance in the 2008 Montreal Internal Auto Show on January 2008. This model is less expensive compared to the existing C-Class, but presents less standard equipment and include a 2.5 litre V6 gasoline engine producing 201 hp compare to the other C-Class. While this contemporary model offers a more reasonable price as compared to the existing models, its inclusion to the C-Class variety in Canada indicates that six models with V6 gasoline engines have been produced and are now available. The maker believes that the consumer prefers this type of model. Lamm, J. (2007) Engineering and Design The C230 4Matic, officially, is rated at 11.9/100 km in the city and 7.9 L/100 km on the highway; and the seven-speed transmission is finely blended to the engine. One can choose comfort by just a button on the console wherein it starts off smoother in second gear, and on slippery roads, or sport, the gear is held a bit longer. The 4Matic delivers torque 45/55 front to rear, wherein it facilitates the C230 to power firmly and totally around curvatures. The brakes are evenly capable to the task, taking the car down from speed in a brief, straight line, with fine pedal experience. Commodity Chain Analysis Page 5 This is a tremendously pleasant car to drive compared to other brands such as BMW and Audi, when one will realize that Mercedes has more heft to it, though it is in no way unwieldy: the competitors appears to be sportier, whereas Mercedes is old-money luxury. The C2304Matics could be the least expensive C-Class, yet it carries all the luxurious feel and silky ride intrinsic to the brand. The numerous modifications to the C-Class design were brought about by the 2008 remake: but is observed that the common shape is still the same, though smoother and with an exuding body line that modernize the car significantly. The most fascinating feature is the latest grille, a gorgeous, AMG inspired front end including enormous three-pointed star. It is a new look that, gradually is being introduced by Mercedes, and one can as well obtain a more conventional undecorated three-bar grille with upstanding hood enhancement on the C230. A 17-inch alloy wheels with all-season performance tires are also included in the package, and C230's standard rims are 16 inch, sport suspension, AMG-style, upgraded brake callipers and sport steering wheel and aluminium pedals. Commodity Chain Analysis Page 6 If the outside design is magnificent, the inside appearance is even better. The preceding double dash design is modified with a smoother one that flows down into the centre heap. The Typical eight-way power seats are clothed in man-man leather, which touch so good that one can never realize that it is not a true cowhide unless one checked the specifications, nevertheless, genuine leather can be added as an alternative. The contemporary instrument cluster comprises a needle that drifts around the exterior of the speedometer, with the digital information axis in the middle of it, used through wheel-mounted buttons. (Kavanagh 2007) Currently, all C-Class models conceal the display screen at the rear of a cover on the dash pushing the button to unlock it and automatically, the stereo comes on, and stays on after the cover is pushed back down. Generally, it is suitable and is very good, with textured, soft-touch materials all over; but the shifter knob and the climate control dials are made of plastic which appears thin and cheap. All controls are illuminated with its soft lighting in the foot wells and door handles. The countless stereo buttons lights up only when the stereo is on; and lights goes out if stereo is turned off, making the dash smoother and decreasing distraction at night. An MP3-compatible single CD stereo is the standard music system, including an auxiliary music player input jack inside the glove compartment (system such as an upgraded Harman/Kardon may be added); and additional standard features contain Bluetooth integration, heated windshield washers, fog lamps, one-touch up/down express windows, cruise control, dual-zone automatic climate control, automatic headlamps and rain-sensing wipers. These specified C-Class, specifically the C2304Matics, footprint, back legroom is larger than it's usual Commodity Chain Analysis Page 7 making the car more comfortable in all seats. The trunk is adequately sized, having a length of 104 cm; however, a folding back or rear seat is an option. Loading is easy by tapping the control on key and the trunk lid springs up completely open and out of the way. Thus, the most difficult part is finding the button, since the key's functions are entire black plastic. Adler, D. (2008). The new improve safety, making 70 percent of the 2008 C-Class, C2304MATIC, new body shell is made with superior-strength steel. Usually, a complement of seven airbags, which includes the curtain-type head shield bags that extend from the A to C pillar in a side impact. The engineering procedure was accelerated with far-reaching computer modelling; and the company's digital prototyping guarantee a faster achievement of quality during the improvement. Several advantage can be observe in the weight of the new car, per Thomas Weber, an engineering principal with Daimler Chrysler, who made a manifestation that the weight of the new, larger car has remained at the level of its forerunner. Jason Kavanagh Marketing The Mercedes Benz awesome C2304MATIC made its World Exclusive first appearance to Canada at the Montreal International Auto Show on January 2008. The most recent addition to the extremely flourishing C-Class family offers a car with a superior emphasis on value, agility, comfort and safety. The appearance of the latest mid-size Mercedes design is described by an edgy interplay of firmed lines and broad, rounded exteriors. Modified suspension and steering help create the latest C-class conspicuously more agile, along with a latest slick-shifting six-speed manual transmission for the C230 rear-wheel-drive model and the 7G-TRONIC automatic transmission for the C2304MATIC. (Deslauriers 2008) Commodity Chain Analysis Page 8 Part of their marketing strategy is offering to modify cars, trucks and SUV with the choices of Mercedes Benz C230 performance parts and its C230 accessories used in C2304MATIC. Discounts is also offered on the Mercedes Benz C230 performance parts and accessories as seen on their website obviously, their C230 parts are sold in priced below retail. As they strive to market the product and serve consumer well, every Mercedes Benz C230 parts purchase offers a no hassle return policy. That is, if the consumer is not satisfied with the Benz C230 parts, simply return it and get a refund. This service is offered as they are completely confident that the consumer will be totally pleased with the Mercedes Benz C230 purchase. The C230 is not offered in the United States, only in Canada and in some European countries. Its feature power-driven, a 24-valve, 2.5 litre inline-6 that improves 201 horsepower and 181 lb-ft of torque, which is too much a car test, and equipped with the 4MATIC all-wheel drive hardware and 7-speed automatic, and definitely reaches 100 km/h in 8.7 seconds. The new Mercedes-Benz Canada is responsible for the sales, marketing and service of the brands within the Mercedes Car Group in Canada (i.e. 2008 Mercedes Benz C2304MATICS. The Headquartered in Toronto, Ontario, Mercedes-Benz Canada employs roughly 1000 people in 19 sites across Canada. By way of a nationwide network of 14 Mercedes-Benz owned retail operations and 39 authorized dealerships, Mercedes-Benz Canada made a sale of 18,547 vehicles in 2007, the best year ever reported for Mercedes-Benz Canada Inc. (Mercedes Benz 2008) The C230 4MATIC can be purchased with the optional sport package and it is simply distinguished by the AMG body-styling, front and rear aprons are deeper as well as under-door rocker panels, mounted star grille, and multi-spoke 17-inch wheels of staggered width. Commodity Chain Analysis Page 9 Additionally, the car includes sport shocks and springs that give a crisper ride and a 15 mm,0.6 inches, lower ride height. Interior designs include a three-spoke steering wheel and aluminium trim, rather of the four-spoke wheel and Calypsos wood trim. A gadget cluster with titanium-coloured background and rubber-studded aluminium pedals discriminate further the models. It is noted that more Mercedes-Benz cars are sold in the state of California compared to any other place in North American. As a matter of fact, California is selling more Mercedes Benz vehicles than of Canada, so it was a outlandish consideration that the 2008 Mercedes Benz C2304Matic was introduced as a Canada model only. In spite of the motivation behind presenting the Canada-only Benz C2304Matic, most reports do declare that it is a reliable sedan. The price tag is about $39,500 for the basic model with no extraordinary features included. Generally, drivers who tested it realized that C2304Matic is a nice car to drive with excellent handling; as Canadian Driver.com noted that it has more heft than BMW and Audi and that it definitely had a silky ride. Reasonably, the C2304Matic may well be the finest choice for Canadians looking for a piece of luxury while not giving up any of the speed or horsepower. Also, the design of the car is striking, particularly with a latest grille and an AMG-inspired frond end. The design of the car is striking, particularly with a new grille and an AMG-inspired front end. A sport package can be added to the C2304Matic for additional cost that would offer a more conventional grille on the front, complete with an upright hood decoration and three-bar design The Canada-only Mercedes-Benz C2304Matic is a sharp car offered for those Benz lovers north of the border. Other Mercedes-Benz styles are made available for test drive as well, but for those Commodity Chain Analysis Page 10 interested in rather a little sportier and definitely more Canadian, the C2304Matic may well be the perfect fit. McIntosh, J (2008). Conclusion It is obvious that the fourth-generation C-Class will hide the success of its predecessors and strengthen further its function as a core product with the respected Mercedes-Benz family. The latest four-door, C2304Matic, regenerate highlight on safety, agility and comfort, in tandem with a moderate amount of useful technology, the C-Class, C2304Matic should ascertain to be more popular. The consummate illustration of a two-pronged marketing strategy, the C-Class and Luxury models harmonize each other while increasing the appeal of the new car. With its visual differentiation and performance, the Sport models are expected to turn heads among car enthusiasts and bring about new, younger consumers to the brand. Social change is altering the auto business, and consumers are searching for more communally responsible options for their personal transportation. Many would agree that C-Class four-door C2304Matic is the new right-size, and the flex-fuel ability supports the country's current environmental initiative. If consumers demonstrate sufficient interest, a clean diesel power plant is undoubtedly with the realm of C-Class potentials for the market. On the other hand, with the new-generation C2304Matic, the company is well placed for the future. (Zoellter, J. 2007) Reference Adler, D. (2008). Mercedes-Benz. Minneapolis, MN: Motorbooks. Booth, D. (2008). Mercedes Benz C-Class. Canwest News Service Christian, E. (2008). MercedesBenz. Courtesy of Daimler, USA. 2:58:27 PM IST# Deslauriers, Michael 2008. The C-Class Lite edition. 2008 Mercedes-Benz C230 4MATIC Review Horn, B (2008). Canada Catches Cheaper Car. News and Nonsense. World of Wheels Magazine Kavanagh, J. (2007). More Drama, More Room. Engineering Editor Lamm, J. (2007) First Drives-Mercedes Benz C-Class. Mercedes' new small sedan gets a better- than-passing grade from a harst critic, the owner of a previous generation C-Class. Road and Track. 50. McIntosh, J (2008). Mercedes Benz C230N4MATIC. Assistant Editor for CanadianDriver.Com (AJAC). On Line Magazine Mercedes-Benz (2008). Marketing Strategy. Canada's Mercedes-Benz C2304MATIC Zoellter, J. (2007). Drive Lines Preview. 2008 Mercedes-Benz C-Class, Sportier looks, sportier behavior. Car and Driver. 123 Read More