INTRODUCTION

Mercedes-Benz is a global automobile manufacturer and a division of the German company

Daimler AG. The brand is known for luxury vehicles, buses, coaches, and trucks. The
headquarters of Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany.

Mercedes-Benz is a German automobile manufacturer company. In the fall of 1998. Today

Mercedes-Benz USA is a wholly owned subsidiary of Daimler-AG. Presently Mercedes-Benz
has their headquartered in Stuttgart, Baden-Württemberg, Germany. Mercedes-Benz cars were
first sold in United States in the 1950s.These cars were mainly known as a symbol of status for
high class consumers.

Mercedes Benz is one of the celebrated and recognized automotive names in the globe. The
automobile manufacturer has its headquarters in Stuttgart, Germany (“The Best or Nothing”).
The current name first appeared in the year 1926. However, the brand emerged in 1901 after the
establishment of Daimler-Motoren-Gesellschaft. The German-based manufacturer is owned by
the Daimler AG Group. Mercedes Benz is known for producing luxury automobiles such as
coaches, sedans, buses, and trucks Mercedes Benz’s focus on quality and comfort is something
that supports the worth of its brand. The value of the brand has strengthened within the past four
decades. Despite such aspects, some challenges such as competition, changing consumer
expectations, and fuel prices will affect Mercedes Benz’s performance in the future.

Mercedes Benz is a leading automobile manufacturer and marketer in the globe. The firm has
established a powerful brand image that supports its position in the industry. The company’s
brand image is associated with “perfection, fascination, and responsibility”. The company
positions itself in the luxury car segment of the automobile industry. Mercedes Benz produces
superior products that can address the needs of the targeted consumer. The firm’s brand image
explains why it is impossible to produce cheap and low-quality products for its customers. The
cars delivered to different consumers are of the highest quality. This image is something that will
continue to support the firm’s future goals. However, the marketers in the firm should do more in
an attempt to complete the positioning strategy for these products. This discussion offers
powerful ideas to explain why digital marketing plan is important to Mercedes Benz to expand
their sales in Germany.
STRATEGIC INTENT (VISION/ MISSION AND VALUE)

COMPANY VISION

The vision of the company is to become the number one in quality, Image and Profitability in the
Automotive Sector (Mercedes-Benz, 2012).

COMPANY MISSION

The mission statement of Mercedes Benz is to delight their customers in everything the company
does. The company also wants to make a continuous improvement in their Quality Management
System and in their business processes. It follows an open minded corporate culture in their
company where the employees will work in a team oriented approach and the company will have
to accept their responsibility and perform to their optimum level. The company wants to improve
their quality of products and services. Another mission of Mercedes Benz is to be aware of the
external environment and act accordingly. The company must maintain a professional
relationship with their business partners who will help them in increasing more revenues and
creating strong corporate connection worldwide (Mercedes-Benz, 2012).

COMPANY VALUES

Values Distinctive Competencies Competitive Market Definition

Positioning

Passion Selective vehicles for High importance set Benz is

each segment. for consumer categorized as one
Respect experience and after of the most
Unbeatable services and sales service. luxurious brand.
Integrity customer orientation.
Discipline Eco friendly Target market is
Quality of the vehicles vehicles and most all high end
Excellence and after sales service. luxurious vehicles customers
Newly announced with new designs. worldwide.
designs and innovative
technology
SITUATIONAL ANALYSIS

MACRO ENVIRONMENT ANALYSIS – PESTEEL

FACTOR DESCRIPTION IMPACT O/T RANK

Political Imposing various taxes and implementation of Pricings and other connected payment T High
policies and regulations. may increase.

Economical Non availability of skilled labor & costly Unreliable expenses and forecasts and T Medium
technological input for producing quality occurring unexpected costs.
vehicles.

Social More concern on eco friendly vehicles and High chance to grab more market share O Medium
technologically equipped vehicles. through required changes.

Technological Usage of improved technology based on the Make quick strategically changes and O High
country. grab the market opportunity.

Ecological Growing concerns eco friendly marketing and Focus should be more on eco friendly O/T Medium
all activities in accordance to green concepts. and contribute more towards
environment.

Legal Regulatory requirements are increased and Business has to be more concern on T High
monitored critically by legal authorities. purchasing and manufacturing and work
according to standards

SWOT ANALYSIS

Strengths Weaknesses
• Strong brand value/ robust brand • Highly competitive markets.
image. • High maintenance cost .
• Global leader in premium car.
• Holds patents on the majority of
safety features.
• Into innovation & research.
• Strong presence in motor sport under
Mclaren Mercedes.

Opportunities Threats
• Developing hybrid cars & fuel • Government policies for
efficient cars for future. automobile sector across the
• Tapping emerging markets across the world.
world & building a global brand. • Ever increasing fuel prices.
• Fast growing luxury automobile • A tax increase for improving
market & increased income. vehicles.
• Manufactured & assembled in
over 20 countries across the
 world.

KEY ISSUES AND CRITICAL SUCCESS FACTORS

Critical Success Factors Key Issues

Competition among the other vehicle brand
Customer service

Value added services Price consideration is high among the clients

High labor and other related costs.
Strong brand name

Innovations Usage of new technology and tech based infrastructures.

Variety of selection Problems in inventory controlling and storage issues

Island wide coverage Cash flow issues and financial related issues.

MICRO ENVIRONMENT ANALYSIS - INDUSTRY ANALYSIS

PORTER’S FIVE FORCES

FORCE DESCRIPTION & IMPACT

Bargaining power is high Mercedes-Benz was offering heavy discounts to some buyers in
Bargaining power of their premium category cars to maintain its lead over BMW in German y.
customers
In the US the auto unions have tremendous power hence the company can easily demand
Bargaining power of more price from the company and so the bargaining power of the suppliers is high
suppliers
The threat of substitutes is medium-moderate. The sales of luxury automotive have increased
with rise in consumers who are looking for cars that give them value. Hence more number of
people are moving towards the luxury car segment though there will always be competition
for brands catering to middle level people like Honda
Threat of substitutes
Mercedes Benz targets niche market segment. For any new player to enter into the market, it
has to set up their prestige of being a luxury car, and it will take several years to do it. Again
luxury car market is at saturation point; hence growth is not as high as the rest of the market.
Also the setup cost of such an industry is very high. Hence it will require huge capital base.
Again the consumer base of this segment already has developed their taste for a particular
brand of their choice. Hence it will be difficult for new players to enter into this segment.
This shows that the threat of new entrants is relatively low as compared to car segments
targeting the middle income group
Threat of new entrants
Rivalry among The degree of rivalry within the industry is high. The luxury car industry is well established
with companies like BMW, Audi engaging in turf completion with one another
existing firms
Segmentation, targeting, and Positioning (STP)

Figure 5.1. : STP

• SEGMENTATION: luxury automobile segment including sedans, suv’s& hatchbacks.

 Geographical segmentation- Mainly metropolitan cities

 Demographical segmentation
• Middle aged, people with high income level
• Youth are also included

 Psycho graphical segmentation

• Showing High class and status of people

 TARGETING: The traditional Mercedes Benz target market includes upper-class

consumers aged 40 and up who want a car with luxury-level conveniences and a high-end
feel. 

 Mercedes-Benz car targets mainly rich people.

 Mainly middle aged people with high incomes.
  Mercedes targets females as well as youth.
 From past few years, they have targeted wealthy farmers as well.

 POSITIONING: The slogan, “ The Best or nothing”

 Mercedes-Benz has adopted a positioning strategy as a manufacturer of highly reliable

and safe automobiles, resulting in a price premium relative to similar international
competitors.
 Outstanding service solution related to the products.
 The car emphasizes design and style rather than speed. Position as a well-engineered
stylish car, its tagline is ‘Vorsprung duch Technik’ in german meaning ‘Lead by
Technology’.

MARKETING OBJECTIVES

01. Enhance assemble channel up to 5 by end of the 2022.

02. To reach 20 online orders per month by end of 2022. (Will generate additional revenue)

03. Improve the own production and provide goods for a reasonable price, grab and extend
the market share up to 40% by end of 2022.

04. Enhance the customer experience with innovations and be the most innovative vehicle
manufacturer by end of 2022 in Germany.

By expanding the assemble channels across the country benz customer base will be increased.
By that market share objective can be easily achievable. Also with the production of innovative
vehicles will also help to grab the market share. As per the new trend digital platform is the
easiest way of purchasing vehicles for customers. The can save their time and can expect a quick
service. By improving that can reach the monthly order target benz can generate additional
revenue and those are helpful for bottom line of the company. Also with the innovations and
enhance customer experience will create customer loyalty.

Marketing Strategies

Mercedes Benz marketing strategy in the Germany was once centered on the safety, luxury, and
precision engineering of its cars, but due to increase competition in the luxury car industry and
changing consumer attitudes about the Mercedes Benz brand that strategy has changed. Now
their marketing strategy is more life style oriented and is focused more on presenting the more
fun loving, approachable, and energetic side of Mercedes Benz.

The evolution of Mercedes Benz's marketing strategy can be directly connected to the expansion
of its target market, which now includes persons twenty five to thirty five years old as well as its
initial targets the baby boomers. In order to provide superior customer value to its target market
Mercedes Benz has found it necessary to expand its product line up, provide more competitive
prices, increase communications with its target market, maintain accessibility to consumers, and
continue its excellent customer service.

In recent years Mercedes Benz has extended its product line to include vehicles that suit the
needs and meet the desires of today's consumers. For example, the Mercedes Benz G-Class, with
prices starting under $30,000, allows consumers with small needs and large desires to enjoy the
safety and luxury of a Mercedes Benz. Also, the M-Class provides a more luxurious and
comfortable option in the spots utility market. Mercedes Benz currently offers nine classes of
vehicles, all with multiple models and body style options, to meet the specific wants, needs, and
desires of its target market. The challenge for Mercedes Benz is to increase sales through
expanding its product line without losing its original strengths, which are being the standard for
automotive luxury and engineering excellence.
PRODUCT, PRICE, PLACE, PROMOTION (4PS)

Product of Mercedes Benz

The name Mercedes Benz needs no introduction even to a toddler, but many people don’t know
the inner story of this automobile giant and its line of products. As a matter of fact, Mercedes
Benz has always been associated with the world class brand of cars, buses, coaches and tracks
known for their luxurious nature. Mercedes Benz is not a company in itself; Gottlieb Daimler
and Wilhelm May Bach call its parent company Daimler AG, which was founded, in 1890.
Earlier on, Karl Benz had founded his company in 1871, which later came to join Daimler AG.
Mercedes Benz’s headquarters is located at Baden-Wurttemberg and Stuttgart, Germany.
As already mentioned, the company currently produces a wide range of advanced luxury trucks,
coaches, cars and buses in its manufacturing facilities based throughout the world. The company
has its origin in one of the founding fathers, Karl Benz’s creation of the first automobile that was
launched in 1886. The car was first marketed in 1901. Since then, the company has introduced a
number of innovations that have helped in establishing the company.
Product is the strongest P in the marketing mix of Mercedes Benz. Mercedes remain as one of
the leading brands in the Indian market, that too for more than 50 years. The company currently
assembles its models — S-Class, E-Class, C-Class and the ML-Class while other models,
including GL-Class, CLS-Class and SLK-Class are fully imported.

Price of Mercedes Benz

Mercedes-Benz manufactures different types of convertibles, full sixed sedans, coupes and sports
sedans. It has as many as 14 car models currently ranging from USD 25,000 to 125,000
Mercedes is leaving no stone unturned to tap German market in premium segments. As a matter
of fact, the company deals in a niche segment where the customer is more concerned with the
value they are getting on the product more than anything else is.
Therefore, the company has tried to ensure it makes high quality cars first and foremost.
Place of Mercedes Benz

Mercedes Benz introduced many technological and safety innovations over the years. However,
the introduced innovations went on to be replicated by other brands. The company distributes its
product through a broad network of dealers throughout the world. Mercedes Benz understands
that consumers are not just interested in a buying a car that moves them from point X to point Y.
They are actually making a car that will enable them easily sell the idea about the car in the
market. The company intends to change the perception of the brand and reposition it so that it is
more appealing to younger generation. They are also sending out the message that they are more
approachable than ever before.

Promotion of Mercedes Benz

Although Mercedes Benz marketing strategy used to focus on the luxury, safety and precision
engineering of its cars, competition has propelled it to adjust its product to suit the changing
consumer attitudes. Now, their marketing strategy focuses more on presenting a more energetic,
fun loving and approachable side of Mercedes Benz.
The evolution of its marketing strategy can also be a connected to its expanded market. Mercedes
Benz has, over the years, found it necessary to expand the market to include younger consumers..
In order to increase communication with its target market, Mercedes Benz has maintained
accessibility to consumers through the following
 Online advertising
 Social media
 Establishing excellent customer service at its point of sales
 Offer warranty under excellent conditions
 Television advertising
 Print media
One thing that Mercedes managed to do is to build a reputation of quality and exclusivity in all
its products, making it one of the most recognizable brands in the globe. Thus, it enjoys a
reputation of class and prestige.

ACTION PLAN

BALANCE SCORE CARD

Target
Factor Objective Management metric
2022 2023 2024

Revenue growth Net profit Margin +10% +14% +20%

Financial Enhance the brand awareness Brand equity +15Bn +18Bn +20Bn

Gain 40% of the share in the market Volume of the shares +10% +14% +18%

Customer satisfaction
+20% +28% +40%
Enhanced customer service rate
Customers
Expanding outlets Outlet penetration +50 +75 +100

Attract new customers Market penetration rate +15% +20% +25%

Exceptional customer experience No of complaint -15% -25% -40%

Internal
Success rate of moving
Business +12% +16% +22%
Produce own products new products
Growth
Minimize products defects No of complaint -25% -35% -45%

Motivated employees Employee turnover As per Industry standards

Learning
Training and development Training hours Minimum 60 training hours
and
Growth Employee participation
+10% +15% +20%
Employee engagement rate
BUDGETS

Activity USD Mn Remarks

2022 2023 2024

Trade discounts 260 250 240 To influence customer purchases

Consumer Sales Promotions 14 16 17 To increase Top of Mind Awareness

Trade Sales Promotions 25 25 25

Marketing Campaigns 60 70 90

Public Relations / Publicity 20 20 20 Magazine/newspaper articles

Branding Costs 75 62 50 New products, packaging, and other

mat.

Advertisement Local TV 20 15 10

Advertisement Local Radio 12 8 6

Advertisement Local Print Media 5 4 2

Online advertising, social media, & 28 35 42 Digital channel effectiveness

digital media

Research & Development 40 25 15 process streamlining

market research

PROJECTED PROFIT AND LOSS

Here we will get net profit for 3 years-

PROJECTED BALANCE SHEET

Projected Balance Sheet for 3 years are given below-

CONTROLLS

In order to better understand the environment in which Mercedes-Benz operates in it is crucial to

perform the 5-forces analysis. This Strategic tool is used to investigate how the organization
needs to form its strategy so that it can develop opportunities in its environment and protect itself
against competition and other threats. Porter's 5-forces model identifies five basic forces that can
act on the organization and these are analyzed below: Mercedes-Benz holds excellent
relationships with all its suppliers this is due partly to the scale of operations and the total
expenditure on suppliers. This is evident from the collaborative project they undertook with
Bosch (the brake manufacturers) in the creation of the ABS (Anti-Lock Braking System). In the
car manufacturing industry suppliers are usually large in number, and Mercedes-Benz recognizes
this which is why they manage an effective and friendly relationship with all suppliers. This can
be seen by the economic downturn of the late nineties when Mercedes-Benz had asked if
suppliers could reduce their prices, which they all did. The reason for this is that Mercedes-Benz
has existed for over 100 years and has worked with more or less the same suppliers. Therefore
they are reliant on each other in a sort of compromise that adds value.

There are a very large number of buyers for Mercedes-Benz. In general for the purchase of a
Mercedes-Benz one must have some assets (as mentioned in the market segmentation) of
reasonable wealth. Therefore it could be said that the selling price from the organization is
unimportant to the total cost of the buyer. This has to do with the size of Daimler-Benz, which
has massive manufacturing capacity and which also has thousands of distributors worldwide.
The buyers do not pose much of threat to Mercedes-Benz, within regards to their passenger car
market which deals specifically in the luxury segment, you either can afford one or not, and if
not too bad.
CONCLUSION

Smart defended segment leadership in Germany with 29.000 deliveries. Italy still 2nd biggest
market with 24,000 units. More than 11,000 units delivered to Chinese customers. Very high
growth rates also e.g. in Mexico, the Netherlands, Poland and Czech Republic.

Mercedes-Benz has been around for over a 100years and it still maintains its niche in all the
aspects its been known for right from the start which stands for Luxury, Safety, Comfort and
Class in the society like no other brand, Its still the number one choice for the old, middle aged
and young that reflects in the sales and constant demand for it in developing countries. Using the
marketing mix above we can conclude that Mercedes has taken the right approach in its
International marketing strategy mix with the constant increase in sales and a new record sales
last year already been surpassed by the first quarter sales this year.

Its Introduction of newer models has been really encouraging with good turn over, Its
diversification in buses, trucks and coaches has increased its customer base like in china a lot of
the chauffeurs there are Mercedes Benz along with the buses which serve as commercial cars in
the developed countries and these products are usually bought in bulk cause they are meant for
commercial transportation means which is the target market. Already known for its durability
and now adding the blue efficiency to its new cars it will be hard for people to choose other
brand ahead of Mercedes. All this factors will sure help increase its presence and demand in the
automobile industry.