International Strategic Marketing for Mercedes Benz - Case Study Example

International Strategic Marketing for Mercedes Benz By + 0. INTRODUCTION The international markets are very competitive in these the current times and companies have structured various complex but workable strategies to attract and retain customers in their target markets. This focusses on their efforts and tome in purchase process. Additionally, it emphasizes on customer’s attention and engagement in the same buying process by their willingness to understand the technical complexity of the products and services they offer. However, this calls for a company’s ability to capture consumer’s attention and a distinguishable comparative position in their perceptions with reference to their cultural base. A prosperous marketing strategy does not start with an exemplary product or a unique idea. The target market is the onset of everything and these markets must contain willing buyers who have a demand for the products. However, the customers do not only concentrate on the product but also on the entire package of values concerned with the product and this is called market offering. These combination of essentials include but are not limited to product, price, brand, package, advertising, store location, transportation services. By developing a mix of the above features, this might have a great impact on the company success by boosting sales and marketing the brand in a global scale. But having the right elements in the right place and in a timely fashion creates a boom in both brand fame and sales volumes. 2.0. ANALYSIS OF MERCEDES BENZ MARKETING MIX Mercedes Benz has a marketing mix that displays how strong the brand is, which makes it the oldest and most famous luxury car-manufacturing brand in the automobile industry. This success is attributed to hard work, endurance and outstanding employment of effective marketing strategies. The marketing mix emphasizes on modification of the company’s advertising strategies that it has applied over the years to establish itself as an example to follow by the rest of its competitors. Marketing mix is a controllable set of tactical marketing tools that an organization will use to produce desired responses from the targeted market (Ritcher, 2012). Marketing mix comprises of all an organization does to increase demand for its product. Our consultancy offers an effective marketing strategy that combines the four P’s of marketing being, product, which majors on design, quality, features, and the brand name. Price that targets the price of the product discounts, payment period and terms of credit, place, which is concerned with locations, inventory and logistics, while promotion targets sales, advertising and public relations. Mercedes Benz has brought together many technological and safety modernizations over the years. Afterwards, the introduced innovations were imitated by other brands such as BMW. The firm dispenses its product via a far-reaching network of dealers around the world. Mercedes Benz appreciates that customers are not just concerned with a buying a car that can take them from one point to another but essentially making cars that will empower them to effortlessly sell the awareness about their cars in the competitive market. The company has transformed the view of the brand and shifts it so that it is more attractive to younger generation. They are also sending out the communication that they are more welcoming than ever previously thought. Mercedes Benz strategies are standardized and adapted across the globe. The above-mentioned four P’s are the major determinants of standardization or adaptation of any company that is going global. The company uses standardization according to the objectives of the company while the marketing mix is determined by the culture of the people in the target market (Gitman & Mc Daniel, 2009). The brand used to exclusively focus on luxury brands in the past but this has changed since the company tries to meet the needs of the consumers. The company is more focused on meeting the demand of every generation. This is the best strategy for Mercedes Benz, to combine both methods. The company therefore would be able to export their products without necessarily making any changes and therefore no alterations to taste or needs of the customers. On the other hand, Mercedes Benz would increase their competitive advantage by adapting to the local needs. As such, it would be necessary to produce a line of automobiles that meet the local standard. 2.1. Keller’s Brand Equity Model For Mercedes-Benz Competitors can feel the strength of Mercedes-Benz in the market. By using Keller’s Brand Equity Model, this can be analyzed objectively. Many factors that Mercedes-Benz have used to keep their brand very fashionable for 80 years are discussed below. The Brand Equity Model incorporates a four-step-pyramid demonstrating four vital questions inquired by customers. 2.1.1. Salience: Brand Identity (Who are you?) Mercedes-Benz is a first-class luxury carmaker established since 1902. Its three-pointed star is identifiable everywhere. It completes the “German Big 3” including Audi and BMW, which are the best-selling car manufacturers globally. So as to unearth the primary identity of a brand, there is need to understand the undying essence of Mercedes-Benz brand. The automobile is crucial to the meaning and achievements of the brand and encompasses the links that are expected to remain persistent as the brand explores new products & markets. Mercedes does not actually have a direct association with a specific brand; however, some consumers always tend to link the brand with the Mercedes Benz E-class with relation to its exterior. In general perspective people tend to be connected to the luxurious sedan model. The logo has been unchanged even though some slight changes have been done in designs nus quality and safety incorporated by the catchphrase, “the best or nothing” (Richter, 2012). 2.1.2. Brand Performance and Imagery (What are you?) The brand performance of Mercedes-Benz automobiles is well known for their safety and quality. These are some of the key values, which have been at the forefront of its innovation. These values are integrated in every car model manufactured and this relates to tradition upheld by the company. The German manufacturer was the first to come up with the airbag and ABS systems. Their engines have the top-notch quality and are very powerful and durable. This is mostly evident with its high performance model, division AMG (CLA 45 AMG model). The cars are also famous for their leather trims, which are very comfortable and well refined mostly in M-Class and C-Class models (Bowman, 2010). The imagery of Mercedes Benz is renowned for its “muscular brand” which can be noted through its design. The manufacturer incorporates horizontal lines in all its models. Stylishness and excellence are also nurtured. 2.1.3. Consumer Reactions and Responses (What about you) In view of their features and historical perceptions, cars manufactured by Mercedes-Benz have always been judged and admired as prestigious and of high quality. Their imagery alone stirs up feelings like a sense of accomplishment, self-assurance or success. Mercedes Benz has also reduced the costs of their newly launched cars, for example, the CLA and the Class A so as to appeal to the young generation (Marketing mix). This has led to a boost in sales which is attributed to the fact that women and young people aged between 23 and 47 years are hardly select the same vehicle brand for their subsequent purchase, compared to men and older people (Bowman, 2010). 2.1.4. Brand Resonance (what about you and me) Many people are devoted to Mercedes-Benz through social media even if they are not purchasing the vehicles. This is evident, for example in Facebook where the company’s official page has over 17 million likes. Also there is a club names after it in France (Club Mercedes-Benz de France) and other websites that incorporate their logos for advertisements. So as to invigorate their brand image to appeal to a younger generation, Mercedes-Benz Company resolved to use social media as an avenue to advertise to a younger target market. This was done by involving an Instagram photographer to take high-quality pictures of the new models and sharing them with the followers, (Newman, 2014). For more publicity, Mercedes came up with a documentary-style interview campaign for famous celebrities Figure 1: Brand Equity Pyramid for Mercedes Benz. 3.0. INTERNALIZATION PROCESS This is the attitude an organization has towards the foreign investment or such related activities abroad (Blaine, 2008). These attitudes are the foundations for the organizations decisions to venture abroad. These attitudes are influenced by experiences from international activities. Mercedes Benz rides on its superior production of automobiles to successfully endeavor in its markets abroad. By maintaining a good reputation, it is therefore easy to gain acceptance abroad (Cohen, 2007). The company merged with Chrysler in order to gain a strong foundation when venturing new markets. The merger can be considered a crucial strategy as both companies have their strong areas. For instance, Mercedes is more recognized in other countries as compared to Chrysler, which is more popular in Europe. As such, they take full advantage of markets at home and abroad. Mercedes is using foreign direct investment theory in its operations. The company has built factories in other countries and especially in the US, Alabama where it aims to venture and retain sales abroad invested in a multi-million company (Bowman & Gatignon, 2010). This is a good strategy for the company as it tries to venture and retain sales abroad. In so doing, Mercedes Benz is able to understand the needs of the local consumers that could be different due to a different culture in America as compared with its original home in Europe. By investing directly, the company maximizes on the advantage it enjoys from tailoring consumer needs and as such ensures satisfaction. Mercedes Benz sought to lunch its products in India. Due to the location of its manufacturing plants in high-income countries, trading in foreign made merchandises into the Indian market could have been uncompetitive. Besides, well-settled competitors had already made way into the market with satisfactory prices. In 2007, the Mercedes Benz Company bought 100 acres of land establishes a production plant in Pune, India. The plant had a yearly capacity of over 5000 units and engaged the locals in labor and used local materials. This was a strategy to reduce costs, expand revenue and market base, and to reduce competition in the domestic market (Barry, n.d). Conclusion Even though Mercedes Benz marketing strategy has mainly been focused on the safety, luxury, and quality manufacturing of its cars, competition has pushed it to fine-tune its inventions to suit the fluctuating consumer attitudes. Currently, their marketing strategy concentrates more on offering a more enthusiastic, fun loving and friendly side of Mercedes Benz. The development of its marketing strategy is to expand its global market. The company has over the years, seen it as an essential to grow its market to take account of the younger customers. They have also slashed their prices so that the cars are less expensive to everyone especially the young population globally (De Feijter, 2010). Bibliography Barry, E. n.d. 5 Tips from Branding Giant BMW. Retrieved July 8, 2013, from http://www.inboundmarketingagents.com/inbound-marketing-agents-blog/bid/301544/5-Tips-from-Branding-Giant-BMW Blaine, H. G. 2008. Foreign direct investment. New York, Nova Science Publishers. Bowman, D., & Gatignon, H. 2010. Market response and marketing mix models: trends and research opportunities. Boston, now. Cohen, S. D. 2007. Multinational corporations and foreign direct investment avoiding simplicity, embracing complexity. Oxford, Oxford University Press De Feijter, T. 2010. A class | CarNewsChina.com – China Auto News. Retrieved from http://www.carnewschina.com/tag/a-class/ Europe, Middle East & Africa. n.d. Retrieved from http://www.principleemea.com/en/case-studies/management-of-bmw-future-retail-showroom-experience-rollout Gitman, L. J., & Mc Daniel, C. D. 2009. The future of business: the essentials. Mason, OH, South-Western Cenage Learning. Marketing mix of Mercedes Benz. (n.d.). Retrieved from http://www.marketing91.com/marketing-mix-mercedes-benz/ Neuman, B, 2014. Mercedes-Benz Shakes Up Its Marketing Strategy to Target Youth. Retrieved from http://blog.contentboost.com/2014/04/25/mercedes-benz-shakes-up-its-marketing-strategy-to-target-youth/ Paukert, C. 2012. Mercedes-Benz A-Class hatches new level of refinement for its class [w/video]. Retrieved from http://www.autoblog.com/2012/03/05/mercedes-benz-a-class-reveal-geneva-2012-video/ Richter, T. 2012. International marketing mix management: theoretical framework, contingency factors and empirical findings from world-markets. Berlin, Logos. Read More