2022

Mercedes Benz Case Study

Name:
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Abstract

The purpose of the case study is to show the marketing strategy and
marketing program development which adopted by Mercedes-Benz. The
study consists of the examination of the external STP framework,
segmentation, targeting, and positioning and also marketing mix
including products, price, place, promotion.

Mercedes-Benz may be a notable German brand of vehicles, created by

the merger between Daimler-Motored-Gesellschaft (DMG) Benz and Cie.
In 1926. This event marked the birth of a new replacement whole new
automobile brand to hold automobility on to the tradition of the two oldest
car makers of the globe and additionally to confirm a successful future for
both the businesses. The trademark of Mercedes-Benz represents the
worth of innovation, quality, awareness for tradition and performance.
Mercedes-Benz won at the “World automobile Awards” awards in 2015
for three consecutive times whereas the Mercedes-Benz C-Class won the
“World automobile of the Year 2015 Award”. This represents the
tremendous quality of the brand among its customers (Daimler ag, 2015a).

The name Mercedes Benz doesn't want an introduction. The name

''Mercedes Benz'' has been related to luxury brands of vehicles, coaches,
buses, and tracks. Mercedes Benz’s merchandise line carries with it all
ranges of premium merchandise that are promoted and sold during the
distribution channels (Daimler atomic number 47, 2015b).

Because of Mercedes selling methods, they need the flexibility to require

an oversized piece of a countries' automobile market. during this paper,
taking the North American nation market as Associate in Nursing
example and primarily discuss what selling methods and selling program
development did Mercedes-Benz use to reach the North American nation
market (Arica, 2020).

Marketing Strategy of Mercedes Benz

• Segmentation
− Demographic Segmentation

Age, occupation, gender, income, legal status, and family size are decisive
factors of demographic segmentation. old individuals on top of forty and
youths from twenty to forty years are the potential marketplace for
Mercedes Benz. The advertising on Mercedes-Benz B-Class is labeled as
"Safest automotive Around for Young Families," and also the campaign
"She's Mercedes" in 2017 targets feminine drivers (Tonghao. Li and Youi.
W, 2021).

− Psychographic Segmentation

The lifestyle" was the chosen theme for Mercedes Benz. This call matches
the idea of creating differentiation in life-style and psychological traits.
Advertisements and campaigns target social control, skilled, and body
people from the higher-middle or upper categories World Health
Organization have a selected fascinating personal life-style, mirrored by
the 2018 commercial: "Your Mercedes-Benz is not only a vehicle, it's a
part of your life, associate degreed an expression of your style" (Tonghao.
Li and Youi. W, 2021).

− Behavioral Segmentation

This segmentation is predicated on a specific item's getting behavior, that

involves variables like profit perceptions, loyalty, pricing, and so on.
However, Mercedes-Benz cars are purchased for numerous reasons, as
well as engine performance and appearance; their high valuation, safety,
and utility cause users to expect an extended product lifetime (Tonghao.
Li and Youi. W, 2021).

• Targeting

Mercedes Benz targets customers from the social group, upper-class,

fulfillers, professionals and executives United Nations agency have an
inclination towards the fashionable technology equipped vehicles, a lot of
safety, a lot of styling and a lot of potency (Puneet. G, 2022).

• Positioning

Mercedes Benz positioning statement “The best or Nothing” empathizes

perfection in engineering, safety, and luxury at the best level. This
philosophy project political orientation and intrigues customers United
Nations agency share the ideology. Benz offers a good sort of cars in their
portfolio, differentiating itself from different makers (Puneet. G, 2022).

Marketing Program Marketing of Mercedes Benz

• Marketing Mix
− Product:

When a product is being designed, associate degree analysis of client

wants associate degreed an understanding of however the merchandise are
utilized by the target market is conducted. the ultimate product is taken
into account to be a decent, service, idea, person, or place, considered
therefore necessary, that it's merit financial exchange by people or
organisations (Brassington and Pettitt, 2012). A product is often
additional divided into 3 segments:

• Core product: This can be the matter finding product customers get.
• Actual product: The options and style that are incorporated within
the core product.
• Augmented product: this can be the services and edges related to the
product.
 − Price:

The price of a brand-new Mercedes ranges from 30,000$ to 1,30,900$.

Mercedes Benz may be a premium priced luxury automobile complete.
Being within the luxury phase, it caters to a niche distinct phase segment
who price quality over the value and then the value is usually on the upper
finish. within the overseas market wherever Mercedes Benz have an
enormous product selection accessible, the costs vary from $30,000 to
$100000 and higher than. Thus, the Mercedes Benz promoting combine
rating strategy is that of premium rating, supported its options and
competition (Puneet. G, 2022).

− Place:

Mercedes Benz cars are gift all across the planet. Mercedes caters to
variety of nations worldwide, with its dealerships and repair stations gift
across numerous countries. the key markets area unit China, Asia pacific,
Europe, Germany, North America etc. a worldwide reach shows the
robust place & distribution strategy within the promoting mixture of
Mercedes Benz. In India, Mercedes has over eighty dealerships across the
key metros and cities. it's its factories and plants set all across the globe
in Asia, North America, South America, Africa, Europe etc. In India, it's
its factory in Chakan, geographical region that is taken into account to be
one CKD plants of Mercedes (Puneet. G, 2022).
 − Promotion:

Mercedes Benz has continually been associating aggressive promoter.

The selling combine promotional strategy of Mercedes Benz uses all
media channels like TV, print, online, billboards etc. Being business to
the luxurious phase, Mercedes failed to feel the necessity the normal
strategies of advertising. Also, Mercedes has engineered its complete
awareness through numerous client central activities just like the
Mercedes trophy, that is a world amateur golf tournament wherever
golfers from round the world compete. Also, it organizes numerous drives
like the International driving platform, Luxe drive, etc. wherever motor
enthusiasts get a chance to drive the Mercedes cars in difficult locations.
(Brassington and pettitt, 2012).

Mercedes-Benz began the method of mistreatment selling segmentation

to succeed in a younger audience in 2010 with the creation of “Generation
Benz” an internet community of roughly two hundred to 250 individuals
between the ages 20 to thirty-nine. This on-line community provided
consulting to the Mercedes- Benz selling team concerning vendee habits
and preferences during this demographic. The “Generation Benz” on-line
community helped to supply a client profile for Mercedes Benz. the
corporate leveraged the insight from the community to form a thriving
selling campaign launching the Mercedes-Benz CLA product. The
campaign Mercedes-Benz created, enclosed an excellent Bowl ad that
includes Usher and Kate Upton, to not mention the bowl the Super Bowl
was being contend in was sponsored by Mercedes-Benz. Mercedes-Benz
used digital and social media channels to focus on Millennials with a
mixture of earned media, paid media, and in hand media to succeed in key
influencers within the target demographic to form complete awareness
and ultimately complete equity. Sponsorships in movies and television
shows creates windows for Benz to showcase latest merchandise (Puneet.
G, 2022).

Conclusion

Mercedes Benz is one of the most common companies around the word.
The most important thing which make this company popular and
successful is using a perfect marketing strategy and STP marketing. In
this case study, we have shown Mercedes Benz's marketing strategies and
STP marketing.
References

• Arica, A. (2020, February 14). Outstanding Digital Marketing

Strategies of Mercedes-Benz.
https://digitalagencynetwork.com/outstanding digital-marketing-
strategies-of-Mercedes-Benzes/
• Brassington, F., Pettit, (2012). Essentials of marketing. Harlow,
England: Financial Times/ Prentice Hall.
• Daimler AG, 2015a. The history behind the Mercedes-Benz brand.
[online] Available at: < http://www.daimler.com/dccom/0-5-
1279050-1-1279432-1-0-0-0-0-0-0-0-0-0-0-0-0-0-0.html.
• Daimler AG, 2015b. Vehicle-Overview.[online] Available at: <
https://www.mercedes-benz.com/en/mercedes-
benz/vehicles/vehicle-overview/.
• Puneet Garg (2022) STP N 4ps, available at
https://www.scribd.com/document/472109749/stp-n-4ps
• Tonghao. Li and Youi. W (2021) What Marketing Strategies Did
Mercedes-Benz Use to Succeed in the US Market? CC BY-NC 4.0
license- http://creativecommons.org/licenses/by-nc/4.0/.