BTEC Assignment 2

Qualification Pearson BTEC Level 3 International Extended diploma

di in Business

Unit number and title Unit 24: Branding

Learning aim(s) B: Review how branding is used by a selected business

C: Recommend changes to a brand for an existing

product

Assignment title Time to change the brand?

Assessor KASOZI RICHARD

Issue date 04.11.2024

Hand in deadline

18.11. 2024
INTRODUCTION
This report is based on Mercedes Benz inc. a German multinational automotive
corporation founded on june 28 1926 by Karl Benz, headquartered in Stuttgart,
Baden-Württemberg, Germany. It counts as one of the world's leading car
manufacturers. Daimler-Benz came into being with the merger of Benz & Cie.,
the world's oldest car company. The Mercedes-Benz Group's brands are
Mercedes-Benz for cars and vans, including those built under the Mercedes-
AMG apart from that Mercedes-Maybach brands. It holds shares in other
automobile companies like Daimler Truck, BAIC Motor, and Aston Martin. Since
2019, Smart left Daimler AG and became a 50/50 joint venture with Geely. By
consolidated unit sales the Mercedes-Benz Group is the tenth-largest car
manufacturer in the world; shipping two million passenger vehicles in 2021 and
by revenue the sixth largest car manufacturer worldwide in 2022. In 2023, the
company ranked 42nd in the world.
24/B.P3 Investigate the reasons for a selected large business to have a
brand strategy

Having a right strategic position is crucial for Mercedes-Benz’s brand positioning

within the global market particular to the luxury automobile sector. This strategy
is derived from a few fundamental goals, all of which must be met to guarantee
sustained relevance and profitability, as well as customer and market expansion.
The justification for brand strategy is multifaceted, representing a dynamic
equilibrium between tradition and progress with regards to today’s consumers.
Here are some of the main reasons for Mercedes-Benz's brand strategy:

Maintaining Brand Prestige and Exclusivity

Luxury Market Positioning: Its brand name has always been linked to things such
as luxury, quality, and performance on the road. This high-end brand positioning
needs to be consistently kept mainly to avoid dilution of the brand and constant
reminding of customers about the brand’s superiority to the competition.
Price Premium Justification: The same strategy affords Mercedes-Benz the
chance to explain its high prices since consumers are willing to pay more for a
brand known for reliability, luxury, and now technology.
Evolving Consumer Expectations
Demand for Advanced Technology: The modern buyer’s demand is indeed
equipped with all the newest technologies for luxury automobiles. Mercedes’
strategy has changed to the implementation of new ADAS, EV, and digital
human-machine interfaces like MBUX. This conformity with consumer’s demands
plays a role in ensuring that Mercedes continues to maintain its progressive
image.
Customization and Personalization: The strategy also includes more choices of
options, so the customer can tailor the inside of the car and what abilities it has,
which strengthens the bond between the customer, the automobile, and the
manufacturer.

Strengthening Brand Loyalty and Customer Retention

Customer Experience Focus: The Mercedes-Benz brand strategy will focus on
positioning the company and its automobiles as a luxurious brand that caters for
its clients from the time they decide to buy a car to the time they decide that their
car needs to be serviced. This is evident in both high-quality setting of
dealerships, individualized approach to clients and Mercedes me app that would
provide connected car experience in a bid to further express the German car
manufacturers’ focus on delivering superior service.
Building Loyalty with Innovation: Mercedes-Benz always innovates and brings in
features, like the fancy, new infotainment system known as MBUX that makes
the ride all the more better. These are innovations that draw consumers who are
unique brand advocates because the company is not only interested in improving
the product with features that augment driving.
Competing Effectively in a Crowded Market.
Differentiation in the Luxury Segment: It is positioned in a very sensitive luxury
segment where it competes with some of the world’s best automobile companies
such as BMW, Audi, Tesla, Lexus among others. In the brand strategy,
Mercedes-Benz tried to maintain a clear and unique position based on the
combination of the traditional image and the innovative technology; it contributes
to building the competitive advantage.
Targeting High-Growth Markets: It involves specific activities in the key markets
of growth such as China where the market for luxury automobiles is
commanding. In that way, Mercedes-Benz is able to develop a closer proximity to
the customer's wants and needs that can ultimately create a more international,
flexible brand image.

To Sum up, Mercedes-Benz needs to have a stable and efficient brand strategy
in order to be dedicated as a leader in the luxury cars’ segment, to respond to the
changes in the automotive market, and, therefore, to ensure its future
development.

24/B.P4 Explain, using examples, the branding of two contrasting products

in a selected large business
Some of the products manufactured by Mercedes-Benz have a vast range of
products for different demographic segments, yet all are aligned with their brand
reputation for quality, luxury, and performance. Two opposing examples are
presented below, which illustrate two other branding methodologies for two
different market segments.

Mercedes-Benz S-Class (Luxury Sedans)

Features:
Luxury and Comfort:

Seating: Handcrafted Nappa leather seats with heating, ventilation, and massage
functionality for all passengers. Adjustable headrests and memory settings add to
personalized comfort.

Interior Lighting: Offers a 64-color ambient lighting system integrated into the
dashboard, doors, and seats to create a luxurious atmosphere.
Air Quality: Equipped with an Air Balance package, which includes cabin
fragrance and ionization systems to maintain premium air quality.

.
Technology:

this with the help of the AI based on voice control system known as MBUX-
Mercedes-Benz User Experience.
Much more and big OLED touchscreens for AR for navigation.
Level 3 self-driving is also certified on highways in the places where it is
permitted, although the driver can switch off the regulating systems in several
cases.
It has P.E.T proximity energy transfer system C.R.C close range communication
system Active Distance Assist Distronic Attention assist and Evasive steering
assist.
Performance:

It can go up to inline-6 all the way to V8 in the standard models or even have a
hybrid power plant in the so-called ‘green’ models.
Innovative and unique comfort: AIRMATIC air suspension for the individual in
addition to the superior driving feeling.
The configuration with the rear axle steering is provided for better dynamics at
every kind of the curve.
Appearance:
Exterior:
Only sharp at the edges, with the flowing pattern of line to give it that lean
minimal modern look it has on the wings.
Chrome on grille and window line as well.
High-efficient LED Digital Light headlamps making patterns and signal display.
Small clearance height along with excellent stability due to greater wheelbase
and rarity of fully all-enveloping configuration.
Interior:
A monumental chamber housing a set of stylists suggests an extraterrestrial
motor vehicle to accommodate a driver and a passenger.
Specs such as a huge central display, a fully digital instrument cluster.
Elegance, glamorous, and glamorous are words that one can use to describe
looks and the products that make a proclamation through the pay special
attention to the details of the sewing and used fabrics.

Target Audience: High-net-worth car buyers who prefer luxuries and prestige,
where top technologies are an important component of luxury.
Brand Strategy: The S-Class was positioned as the very top-of-the-line model in
the Mercedes portfolio, representing nothing but the best which Mercedes Benz
has to offer. It is branded for class, superior craftsmanship, and innovative
technology features such as the latest MBUX infotainment system, use of ultra-
fine quality materials like Nappa leather, and the "First-Class" rear-seat
experience.
Ad Style: Most of the ads of S-Class run in very expensive magazines, digital
platforms, and events since that's where targeted audience focuses. In ads,
there's an attempt to include things with elegance and novelty. Ads try to connect
their products with an elite lifestyle. The tone is polished and aspirational,
reflecting the benchmark of the S-Class in the "luxury sedan" market.

On the other hand,

Mercedes-Benz G-Class (SUV)

Features:
Off-Road Capability:All-Wheel Drive (4MATIC): Standard permanent all-wheel drive

with three locking differentials to handle extreme terrains.

Suspension: Independent front suspension and adaptive damping for both on-
road comfort and off-road robustness.

Trail Performance: High ground clearance (9.5 inches) and a fording depth of up
to 27.5 inches make it ideal for water crossings.

Hill Assist: Advanced systems like Hill Descent Control and a low-range transfer
case ensure safety and stability on steep inclines.

Technology:

MBUX System: Like the S-Class, it features cabin control by a voice assistant
and a pair of 12.3-inch screens that handle the infotainment and the driver
information.
Camera System: Off-road views are used in the 360-degree cameras in tackling
difficult terrains on the road.
Interior Climate: Optional features include heated steering wheel and cup holders
also noteworthy features, heated front and rear seats.
Performance:

Engine Options:
Detrimental effect of comfort in terms of speed and power: V8 Biturbo engine in
the range of up to 577 AMG horsepower.
Dynamic Select: This model comes with usual Comfort and Sport modes sharing
the stage with Off-Road and Sand driving modes.
Towing Capacity: 0-7000, depending on type, for usage such as outdoor
recreation or activities that require strength.
Appearance:
Exterior:

Silhouette: Sleek body structure with high edges and some extent of timeless
glamor.
Grille: With vertical chrome slats at the side and a large and clearly set Mercedes
Benz badge.
Lighting: Composite curved LED headlights accompanied by an innovative
although business-like bumper styling.
Rugged Elements: Spare tire on the side of the vehicle, roof rails and lateral tips
of side pipes to give a macho touch but classy look.
Interior:

Design Language: An exciting combination of elegance and sturdiness: diamond-

stitched leather seats and stainless steel.
Dashboard: Vertical, practical design with hand grips, retaining off-road concept.
Space: Comfortable for the passengers with available space with supportive
seats and adjustable rear seating for luggage.
Ambience: A mood lighting that makes the car interior to be bright even at night
and a panoramic roof to give a better view of the outside environment during the
day.

The product will target those wealthy, adventurous people who demand the most
out of their luxury and rugged off-road performance.
Branding Approach: The G-Class or "G-Wagen" is a particular case in the
portfolio of Mercedes. While it does speak to luxury, it also carries with it
overtones of toughness, performance off the pavement, and an aggressive,
iconic design. Customers it appeals to are those who want an extremely high-
status vehicle that can also handle difficult or rough terrain, urban or rural.
Ad Style: Most G-Class ads show its adventurous spirit, like climbing up the
mountain, crossing rough terrain, or even driving through an urban environment.
This would place it in the class of luxury SUVs for those people who wanted
adventure but never sacrificed their status. The boxy exterior design, military
heritage, and power are accentuated so as to attract a lot of buyers looking for a
mix of luxury and utility.

Contrast
While both models denote the high quality of the brand, the S-Class aims more at
refinement and luxury in the urban and business environments; the G-Class acts
as an icon of durability and status in both urban and rugged settings. The S-
Class is sold on elegance and innovation, while the G-Class is branded as a
luxury off-road icon balancing sophistication with strength.

24/C.P5 Explain the challenges of managing an existing brand for a product

Managing an established brand such as Mercedes-Benz comes with its distinct

challenges especially in terms of extending the brand to specific products without
losing the prestigious character that is constantly desired in the market. Some of
the major challenges include:

Safeguarding the Value and the Core Essence of the Mercedes Brand

Challenge: Mercedes-Benz is synonymous with luxury, performance and

innovative products. Therefore, extending the brand such that it includes new
products and every new product remains to be of the high standard is designed
to be an overwhelming task as the company expands. Any such variation carries
risk of tarnishing the brand image. It is appropriate to state that Mercedes-Benz
has structured all the components of its brand, including MBUX infotainment
systems and all other products to be of high quality in appealing to the luxury
market segment.

Balancing tradition with innovation

There is no doubt that Mercedes-Benz has a strong history however, they are
also a part of an ever-changing and competitive world that is now saturated with
electric vehicles and autonomous technology. Therefore, it is important to stay in
touch with modern trends but at the same time, respect the brand heritage.:
Nowadays, the brand uses advanced technology such as the MBUX infotainment
system, but design and performance remain its top priorities.

Global Brand Consistency: Mercedes-Benz is a global player in the automobile

industry that has to contend with numerous cultures and economies of the
regions in which it is established. Coordination of the brand message, which
must be the same worldwide, but must also incorporate a local appeal, is difficult
in the area of brand management and marketing strategies.

Responding to Market Competition: This pressure was applied as BMW, Audi,

Tesla and even new age focused EV brands posed a threat to Mercedes-Benz’s
market leadership, and thereby forced them to regularly innovate in terms of
technology and design along with the overall customer experience. Mercedes-
Benz has to protect market position from these competitors while it cannot afford
significant shifts that could potentially harm the company’s brands’ loyalty.

Managing Customer Expectations: Current customers of Mercedes-Benz

therefore have high expectations on the level of customer service, product quality
and innovation. The company is constantly going beyond those expectations
while catering for the generational shift and the prospects of new generation
buyers and tech-sophisticated customers who may be just as interested in
connectivity options and digital features as they are about driving.

These are challenges that must be addressed within the parameters of the brand
equity Mercedes-Benz is looking to maintain: luxury car manufacturer, sensitive
to the technology and regulatory backdrop through which it operates and
marketed towards both its core audience and the next generation of consumers.

24/C.P6 Investigate an existing brand for a product using a brand audit

In this criteria I will start by showing a Brand audit in the case of the Mercedes-
Benz that entails an analysis of the strengths, weaknesses, perception by
customers and competitors and the positioning of the brand. Let’s look at the
Mercedes-Benz S-Class for example; the car maker’s flagship luxury car. This
way, we will be able to see what Mercedes-Benz does to ensure it remains a top
world’s luxury car maker and understand what it could do better.

Mercedes-Benz S-Class: Brand Audit

The perceived image of the Mercedes-Benz S-Class is seamlessly designed in

order to reflect the aspects of luxury, elegance and prestige. As a car model that
represents the Mercedes-Benz, the S-Class’s exterior and interior design should
set the benchmark for the brand’s aspirational image as well as its online
platform.
Exterior Design
Sleek and Elegant Lines: The S-Class has a discreet layout, sleek lines with an
emphasis on the car’s aerodynamics yet it asserts dominance on the road. They
use smooth curvy lines for the exterior and interior creating a feeling and
motionlessness of the car when in fact it is standing still.
Signature Front Grille and Lighting: The grille on the car is the hallmark of
Mercedes-Benz, the three-pointed star logo, which provides a car with a decisive
and luxurious look. New LED headlights with ‘Digital Light’ bring improvements in
safety and style while having a contemporary high-tech look.
Premium Finishes: Available paint choices can be glossy dark colorations that
complements the sleek design of the automobile. There are common such as
metallic and matte finishes available to boost the richness of the model.
Attention to Detail: Chrome trims, seamlessly integrated door handles and
smooth dials, wheels and spokes are all the more revealing of the luxury class
tagline of Mercedes Benz.
Interior Design and Materials
Luxurious Materials: As for S-Class interior, it is force-retail: the use exclusively
eco leather, Nappa leather, wood veneers, and brushed metal inserts.
Ambient Lighting: Obviously, Mercedes has incorporated an auxiliary LED
lighting system that is customizable according to different colors preferred by the
passengers. This lighting promotes the futuristic and luxurious feel of the interior
cabin so appropriately.
Cutting-Edge Digital Displays: S-Class has the new thick, high-definition digital
instrument cluster and digital screen for controlling the various operating systems
that blend into the interior architecture. To this effect, the digital orientation
supports the brand commitment to innovation even more.
Seats and Comfort: The seats are also comfortable ones, which includes some
characteristics like massage, heating and cooling systems. There is an elegant
and very living-room like experience as opposed to a car feel with legroom, soft
closing doors and low noise levels.
Brand Colors in Aesthetic Self-Image
Classic and Timeless Palette: The classic focus is evident in the choice of colors
that can range from black, silver, gray, white and only a deep navy or dark green
on occasion. These colors are definitely more mature and to an extent fit the
image Mercedes wants to portray – classic.
Luxury-Associated Finishes: Glittery and shiny looks make the vehicles come
with a rich look, metallic and matte looks are also added to make the looks of the
vehicle look very exclusive.

Brand Inventory
Product Attributes: The S-Class amongst many things boasts of luxury, safety,
technological sophistication, and superior engineering. Characteristics or
components include Luxurious interior, muscular engine, and quality technology
including MBUX (Mercedes-Benz User Experience), a sophisticated AIS
(Advanced Infotainment System,) and an AUG (Augmented Reality) Navigation
System.

Brand Positioning
The Mercedes Benz S class is a luxury car that is aimed to target those
discerning customers who need cars for prestige, Comfort and performance as
well as having the latest technology.
Also known as ‘the world’s best car,’ it is the class vehicle that goes head on with
other such luxury cars as BMW 7, Audi A8 and Lexus LS.
There is, however, a much stronger emphasis on safety and new technology:
ADAS, ‘MBUX’ connectivity, and expensive materials.
Target Market
Demographics: The target group of reference is relatively young, above middle-
aged, and belongs to the higher income earners such as business people.
Psychographics: To be precise, these people value quality, brand and
technology. The S-Class is used like a status symbol and it proclaims to the
world actual achievements.
Geographics: The S-Class is produced for the North American, European and
Asian markets with China being particularly important.
Brand Equity Market Performance
Brand Value: Mercedes is always among the top valuable car brands in the
world, and the S-Class model plays an immense role in this.
Market Performance: Thus the S-Class has continued to defy the trends of the
market especially with the introduction of more SUV models.
Sales Statistics: By 2023, the S-Class contributed more than 15% of overall
Mercedes-Benz sedan sales worldwide. The need is even higher in China, with
Mercedes selling nearly a third or even half of all S-Class vehicles worldwide.

Brand Elements and Visual Identity

Logo: The star that is present on the Mercedes Benz logo is easily recognizable
and symbolizes quality, sophistication and selectiveness.
Slogan: Mercedes often uses the line “The best or nothing“, which would fit along
the luxurious and high tech nature of the S-Class car.
Design Language: The S-Class features are classy, sleek lines and an
exceptional stylistic aerodynamic road appearance. Its interiors explore
opulence, comfort, and technology through materials, LED infused lighting and
large LCD screens.
The perceptions of customers and their loyalty.
Perception: Consumers in most markets perceive the S-Class as a symbol of
prestige and its purchase as a stamp of approval of Mercedes-Benz’s corporate
values of luxury and technology. The model is usually linked with prestige,
dependability and technological sophistication.
Loyalty: Fifty-nine percent of the S-Class buyers are loyal customers, who have
previously purchased a Mercedes-Benz model. The J.D. Power 2023 Automotive
Loyalty Study shows that Mercedes-Benz retains 58% of its frequent buyers and
is partly due to S-Class owners’ loyalty.
Competitive Analysis
Mercedes Benz has Direct Competitors and These are BMW 7 Series, Audi A8,
Lexus LS, Porsche Panamera and Tesla Model S. The current nearest traditional
rivals are BMW and Audi, but due to the mechanical and electric cars and
technology oriented approach, Tesla poses a serious threat.
Differentiation: The S-Class segment for Mercedes-Benz vehicles is centered on
comfort, traditional premium materials, and advanced safety and assistance
innovations.

Brand Strengths
Strong Brand Equity: Mercedes Benz specifically the S class has established
brand image in the market mainly due to its consistency in manufacturing luxury
and creating innovations to sustain its image as a luxurious car.
Technological Leadership: New safety, Infotainment, and driving assistance
technologies are successively installed in the S-Class and put it at the
technological forefront of the Mercedes-Benz brand.
Customer Loyalty: A large portion of S-Class shoppers are what could be
described as repeat-purchasing customers due to the brand image that
Mercedes-Benz offers and as a result of premium after-sale services.
Brand Weaknesses
Environmental Concerns: Still, Mercedes-Benz has tried to counter, offering
hybrid- and electric-powered S-Class models, the conventional internal-
combustion versions of which have come under fire for fuel economy and
emissions as the age of environmental awareness dawns.
Younger Market Penetration: The S-Class is preferred by older customer groups
and younger customers do not have much of a connection with the brand, and
they would rather look for electric cars or sustainable brands like Tesla or even
Polestar.
Cost and Maintenance: The price of its products, including the purchase price
and the long-term maintenance cost are relatively high and have a relatively
shorter depreciation period than some of its competitors’ products which can
serve as barriers to some categories of potential users.

Conclusion
The Mercedes-Benz S-Class currently occupies a solid share in the segment of
luxury sedans with a high brand image, but it has issues with maintaining new
customer demand for the product and modern environmentally friendly concerns.
Constant and strategic spending on EV technology and innovations, luxury
vehicles for the masses, and superior digital facilities will remain a necessity for
the company in future in order to remain a market leader, while dealing with
competition that is on an ever-growing rise, and a market that is in a constant
state of transition.

24/B.M2 Analyze the potential impact of internal and external factors on

branding activities of a product
Identification of Factors Within and Without the Firm Affecting Branding
Exercises for a Mercedes-Benz Product
Brand management is an important activity in the context of Mercedes-Benz
business to sustain market position and enhance the company’s leadership in the
Automobile industry with specific focus on luxury and innovation. Ball & Lámantre
This analysis extends the discussion of internal and external aspects of Branding
into the Mercedes-Benz EQS, as the flagship electric car brand.

Internal Factors
Corporate Vision and Strategy
Mercedes-Benz's Corporate level strategy’ including the Brand promise;
‘Ambition 2039’, will ensure that Mercedes-Benz becomes carbon neutral and
offers leadership in luxury sustainable mobility. Brand positioning for the EQS is
anchored on positioning it as the epitome of innovation towards sustainability
with underlying traditional luxury principles.
This makes it easy to stay consistent with the branding process since everyone
has a clear vision of the overall goal and objective. However, if this vision is not
translated effectively into the branding of the EQS then it may well become
irrelevant, especially given the continued emphasis on sustainability within the
EV market and intensifying competition including Tesla.
In addition to launching new products, Product Innovation and Quality aims
to bring out new ideas in product development.

For the EQS, Mercedes-Benz deploys the latest technology in battery systems,
infotainment system in the MBUX Hyperscreen, and self-driving features.
Popular ones support the concept of branding improving the relation with the
brand as a bear of luxury innovation. However, any problems regarding quality;
for instance, a recall owing to faulty components, somewhat erodes brand image
and consumers’ perceived trust.
Financial Resources
Mercedes-Benz spends huge amounts of money on global marketing
communication that includes web based, newspaper advertising, and finally,
event marketing. In the EQS, campaigns publicize its environmentalism as well
as capabilities.
Enough money enables the brand to deliver strong ad campaigns, whereas
overspending on nonperformance branding media or overlooking consumers’
preferences may result in low B/C ratio.

Employee Expertise and Creativity

The marketing departments at Mercedes Benz create advertisements focusing
on a luxury and innovative aspect of the EQS. For instance, videos and
advertisements depict the car being used in science fiction like climates that are
environmentally conscious to appeal to a considered contemporary technophile,
and environmentally astute consumer.
Innovation is important when considering branding and employees’ creativity
reflects this in the market. However, if the workforce is misinformed or does not
match the branding strategies of the market, then the campaigns are not well
understood by the market.
Corporate Culture

The branded elements of this car’s design reflect the value proposition of the
company through precision engineering of the car to reflect its luxury image.
This means that a good corporate culture is helpful as it makes sure that the
values of products match the brand’s communication. A disconnect, however,
could result in confusion that poses threat to the brand image and overall brand
influence.
External Factors
Consumer Preferences
The branding related to EQS is directed towards conscious, digital and well-off
consumers and emphasizes such aspects as the ability to operate in electric
mode, as well as the uniqueness of the interior.
Consumer behavior towards environmentally friendly products is one of the
primary factors encouraging Branding. If Mercedes-Benz did not adapt to such
changes, rivals with a firmer eco-branding could gain market share in the long
run.

Market Competition
Work: Tesla, BMW, Audi and other players are gradually seeking differentiation
of their brands based on a number of features, including self-driving or charging
capabilities. On its own core competencies, Mercedes-Benz focuses on luxury
and reliability as ways of standing out in the EQS.
Analysis: Competition pressure makes Mercedes-Benz constantly aim at
improving on the strategies of branding. Scheibel-Stasar pointed out that
technology or perceived luxury loss could lead to weakening of the competitive
position of the EQS.

Economic Conditions
In turbulent economic conditions Mercedes-Benz may switch to the references to
the benefits of EQS concerning the reduction costs on fuel and maintenance per
hundred kilometers.
Depression may lead to a decrease in customer patronage of brands and
faculties that relate to luxurious tastes. Inability to be pragmatic on the use of
brand would create divergence that is likely to push away customers and
minimize the chances of consumption.
Technological Trends
Some of EQS branding ideas include the integration of EV infrastructure and
connectivity. For instance, the marketing focuses on the remote download of
software and longer range.
For Mercedes-Benz, maintaining branding consistent with technological
advancements help make the organization look like a leader. However, if the
brand begins to adopt or communicate these trends last, this leads to them
appearing old fashioned.

The It Overall Impact on Branding Activities

Brand Differentiation

Mercedes-Benz builds on the EQS internal resources such as innovation, luxury

and sustainability. These factors give the EQS the appeal of a technological
powerhouse that also signals luxury.

Risk and Crisis Management

Consumers’ complaints that may be crowned by product defects or external
shocks such as adverse media do not wait to be addressed. Building a brand
image requires strategic branding activities, but companies need to extend that
brand positioning /image to another level where it can be adjusted and rebuilt
during periods of crisis.

Market Responsiveness
Measures that are related to branding and which take into consideration the
currents outside the firm as well as consumers, ensure that EQS remains desired
by consumers. For instance, increasing the affordability angle when the
economic environment is tight or the superior range when charging stations are
being deployed.

Conclusion
The strategy management of the Mercedes-Benz EQS branding is highly
influenced by internal and external factors which ought to be addressed. On the
internal side, strategic management deals with establishing harmony of the
company’s strategic plan, financial support, and corporate climate, region, and
Identities which keeps brand communication consistent. Market related changes,
competition and regulations, on the outside, support endurance to change.
Consequently, Mercedes-Benz has the potential to sustain such forces to
magnify the position of a leader in the luxury car market and innovation.

24/C.M3 Analyze the reasons why an existing brand for a product may need
to change

Mercedes Benz is one of the leading automobile manufacturers that are famous
for their luxury cars globally. But a Mercedes-Benz, for instance, may also
require a change in its branding approach for a specific product due to some
circumstances. The outline of the possible factors behind a change of an existing
brand for a Mercedes-Benz product (for example, the Mercedes-Benz G-Class or
the Mercedes-Benz E-Class):

Shifting Consumer Preferences

Unfortunately, macro factors always play part in the alteration of consumer trends
in regard to lifestyle, values, and expectations of technological advancement. For
example:
From the customers’ perspective, the trend that has been fuelling the demand for
sustainability and eco-friendly vehicles in the market has remained robust.
Here, there is increasing appeal to carbon-free or a combination of carbon and
other electric structures as opposed to the conventional free combustion engines.
Need for integration of new digital communication and customer-oriented
technologies in automobiles.
Impact on Branding:
An object such as the Mercedes-Benz G-Class, an off-road iconic automobile,
might have to reposition itself, change the frame to embrace environmentally
friendly vehicles by launching an electric variant with environmentally aware
attributes. The messaging could switch from rugged adventure to a new luxury
off-road environmentally friendly.

Market Competition
Cut throat competition from companies such as Tesla, BMW, Audi and so on
might result in rebranding. For instance:
In the EV business, agencies and cars are currently defined by strong branding
from Tesla, with more focus on innovation and sustainability.
BMW and Audi are particularly guilty of always updating their branding with
continual themes of performance and luxury.
Impact on Branding:
New products, which Mercedes-Benz has developed, may be renamed with an
emphasis on specific features like, for example, increased level of autonomous
vehicles, improved exclusivity, or lower costs than those indicated by its
competitors.
Technological Advancements
:New changes in Automobile technology give a brand a very short window of
viability. For instance:
longer lasting batteries and enhanced charge throughput on electric vehicles.
Addition and integration of other related smart connectivity elements such as
voice recognition or Over-The-Air updates respectively.
Impact on Branding:
Marketers have associated the C-Class car with aspects of luxury and power;
however, conceivably this may require a change of emphasis to smart features
including AI-assisted driving or digital cabin. This can be in a bid to assuage
consumers who are well informed resulting from technological advancement.

Economic Conditions
Economic fluctuations such as recessions, inflation, or rising fuel costs can
influence consumer purchasing behavior:
The buying pattern for luxury cars may be shifted downwards during recession
probably due to price sensitivity.
It seems that high fuel prices can discourage customers looking to purchase
gasoline supported automobiles.
Impact on Branding:
Mercedes-Benz might adopt a model such as A-Class, a sub-brand for a car
which focuses on economy, affordability, reduced running costs in markets
affected by economic difficulty, leaving the high end luxury aspect behind.

Regulatory Changes
:Stricter environmental regulations in key markets may require Mercedes-Benz to
reposition its branding to align with compliance standards:
Europe and California have set legislated ZEV mandates.
Bureaus are giving subsidies for electrically run cars than the ones run on fuel.
Impact on Branding:
Cars like the GLC SUV may require the flip from appeal-focused towards
prioritizing zero-emission labels to adhere to environmentally-conscious
regulatory demand

In Conclusion ,There could be strategic and inevitable reasons that make

Mercedes-Benz to re-brand its current products, or a part of them, and that
includes the following reasons; For example:

Shifting from Tradition to Innovation: The G-Class could shift from being a luxury
off-roader to sustainable power with an electric model.
Modernizing Legacy Products: The E-Class might need to create a new hype and
rebrand itself as the car for the younger digital prospective buyers.
Regional Customization: Some cars such as the S class car may be subject to
brand standardization due to cultural values.
In this way, Mercedes-Benz sustains and develops elements which define the
company and its products as luxurious, sustainable and innovative.

24/B.D2 Justify Suggested changes to an existing brand for a product

If the current positioning no longer meets the consumer needs or preferences or

threatens to become ineffective or outcompeted by competitors, Mercedes-Benz
may require rebranding an existing product. For example, the Mercedes-Benz G-
Class is an off-roader luxury vehicle that won’t be confused with an S-Class, but
with its iconic design and high price it can boast unleveled off-road capabilities.
The following are suggestions on its branding and the rationale given internal and
external factors.

Make Sustainability Your Priority with Electric Models

Suggested Change: Redesign the G-Class to comment on sustainability by
adding and extensively marketing an electric-class (EQG). Swap from rugged
luxury to performance green crusade.
Evolving Consumer Preferences: Recently a trend in the demand for ‘green cars’
has emerged especially among those buyers who are willing to afford cars of the
premium segment expecting them both to be luxurious and eco-friendly.
Regulatory Pressures: Current and prospective emissions standards in regions
such as Europe and California have encouraged the commercialization of zero-
emissions automobiles. These policies are in tune with the move to reposition
this car as an environmentally friendly sport utility vehicle in order to gain entry
into the market shelves.
Market Competition: The existing competitors such as Rivian and Tesla are thus
laying down their ground in the segment of luxury EVs, Off-road. Adding an
ecological aspect to G-Class’s performance makes it a much more beneficial
decision.

Introduce Technologies & Computer Letters

Suggested Change: They should embrace high technology like self-driving
features, artificial intelligence safety features, and digital amendments option as
one of the avenues of marketing the G-Class.
Tech-Savvy Consumer Base: Consumers in the luxury car segment are
continuously willing to pay a premium for new age technology.
Differentiation from Rivals: Technology is the most emphasized branding aspect
in Tesla products. Linking hi-tech communication makes it possible for G-Class
to stay relevant to the market and the younger generation with advanced
technologies.
Preserving Heritage with Innovation: With sharp integration of technology into the
design of the G-Class, Mercedes-Benz both honors tradition and contributes to a
new image.
Modernize Brand Messaging
Suggested Change: Repositioning from the stereotypical stereotype of JFK’s
‘rugged off-roader’ to a ‘city slicker adventurous’ guy. Position the car to the
target market of affluent urban consumers that look for flexibility in their luxury
car.
Changing Lifestyles: While traditionally the G-Class has been bought for its use
off the beaten path, today many owners of these SUVs use their vehicle mostly in
town. Therefore, updating the brand image to reflect such a dualistic nature is the
best way of reconciling the actual use with the image communicated to
customers.
Broader Market Appeal: While presenting the G-Class as a car for off-road
adventures and aesthetic city driving also increases its consumption, especially
in the Chinese market, where expensive off-road vehicles are considered status
symbols.
To address economic sensitivities the following recommendations are
made;
Suggested Change: Redesign the G-Class, for which people do not need to be
told it is exclusive, and instead employ slogans, like those of durability with lower
maintenance costs as applied to the EV models.
Justification:
Economic Conditions: Even existing to the consumer who is concerned with cost-
plus approach, status symbol products are sought after by consumers with the
Credentials Attainment Motive during uncertain economic periods.
Broader Demographics: The communication regarding the value and longevity
features are likely to entice other target markets of young people and first timers
in the luxury SUV market entailing long term sales.

In conclusion ,With these new changes, Mercedes-Benz must be able to reinvent

the G Class and make it as acceptable as before in order to compete properly in
the market. These strategies build upon markets such as sustainability,
technology, and changing life-styles, without eroding the historic and luxury
character of the G-Class. Lastly, all these rebranding would place the G-Class in
the right side of the luxury vehicle market given the ever changing technological
trend in the automotive industry.

24/C.D3 Evaluate the extent to which the branding of a product meets the
aim(s) of a selected large business

Mercedes-Benz branding premise is aligned by its objectives, which includes;

luxury, innovation, sustainability, and leadership in the global automobile market.
Now, let’s discuss to which extent the branding of the Mercedes-Benz EQS
corresponds to these goals.

Aim: Positioning as a Leader in Luxury.

The EQS is marketed as the ultimate luxury model in the electric vehicle, or EV,
category. This is well reflected in its luxurious interior, refined looks and some of
its latest tech such as the MBUX Hyperscreen and the fully customizable ambient
lighting.
Both advertisements and promotional contents all praise its exclusiveness and
exquisite workmanship, and all these restate the image of luxury that Mercedes-
Benz has had.
Extent of Success:
Strengths: This aim is well achieved by the EQS in that it provides exclusive
touches that set it apart from rivals, including Tesla or BMW, whose EVs could
lean towards technology or power.
Limitations: Again, there are critics who claim that the brand should try to be
more effective in appealing to young-skin, who set their hearts in different
directions than the traditional luxury.
Aim: Achieving Driving Innovation and Technological Leadership
The EQS is positioned as a technological marvel, featuring:
Efficient and powerful electric motor, and very long battery solely with
opportunities for a fast charge.
Advanced level automation of the vehicle and the AI interlinked systems.
Regular downloads sent through the air, a way of making sure that improvement
is constant.
The Mercedes-Benz brand focuses on its leadership in innovation and opposes
its tradition and advanced technology.
Extent of Success:
Strengths: The EQS branding is consistent with innovation as a product of its EV
platform; besides; it directs attention to Mercedes-Benz’s technological
capabilities.
Limitations: Tesla still controls a decent share of the EV industry, and some
buyers perhaps will view Mercedes-Benz’s foray into EVs as a market response
rather than an initiative.

Aim: Promoting Sustainability

Sustainability is another trend reflected in the branding of EQS since Mercedes-
Benz Company’s “Ambition 2039” vision is to design a CO2-neutral car.
Sustainability is a major marketing feature that underscores the ability of the car
to emit zero emissions, the use of green power in its production and sustainable
materials in the interior of the car.
Extent of Success:
Strengths: Branding explains the company’s sustainable thinking and aligns well
with consumers’ conscience regarding the environment. Mercedes-Benz has
presented the EQS as its leading model in the process of its transformation into
an eco-friendly car manufacturer.
Limitations: A possibility to challenge the old established perception of Mercedes-
Benz as the company that produces fuel-gorging luxury automobiles is the focus
on the sustainability of the company’s activities; however, this focus may not be
entirely effective in the regions that do not demonstrate a high level of adoption
of EVs.
Aim: Secure a Enhanced Market Position On the International Scene
The EQS branding strategy is tailored for diverse global markets:
European campaigns are concerned with sustainable production and operation
that meets stringent environment legal requirements.
Branding in the U.S. has shifted to Luxury and New Technologies in an effort to
counter Tesla upbeat market performance.
In China, marketing focuses on prestige and many sophisticated features to
target the group of individuals who are knowledgeable about technology and care
for their status.
Extent of Success:
Strengths: The branding of EQS is flexible in a way that it will fit the different
expectations of the global people while making sure that it belongs to the same
line of product.
Limitations: As much as this is true, the high cost associated with the EQS may
be a hindrance to its uptake in emerging markets, thus opening the floodgates for
the emergence of other brands that produce far more affordable EV models.

Aim: Being Reliable Emotional Brand Connections

Mercedes-Benz branding for the EQS focuses on delivering an aspirational
narrative: of having the EQS stands that it is a luxury car, innovative and
environmentally friendly.
Ads tend to display the EQS in scenarios that fill consumers’ aspiration with sci-fi
elements, conveying the vision of green living.
Extent of Success:
Strengths: This branding of the cars has appealed to the buyers who are in the
middle of luxury and environmental conservationism.
Limitations: It will likely be viewed as ‘older’ by the younger generations and may
not fit so well with contemporary ‘heritage luxury’ parts of the automobile
compared to rivals like Tesla.

In Conclusion,The branding of the Mercedes-Benz EQS is mostly in line with

the goals of the company with regard to climate and luxury vehicles. But there is
with regards to the management of perceptions of innovation and price sensitive
markets. Through developing and improving the branding approach more neatly,
Mercedes-Benz can achieve even deeper penetration into the sphere, thus
creating an invulnerable position of a futuristic hallmarked automobile
manufacturing company.

REFERENCES
Kotler, P., Keller, K. L., Goodman, M., & Brady, M. (2021).
Marketing Management (16th Edition). Pearson Education.

Moore, C. M., & Birtwistle, G. (2004).

Luxury Fashion Brand Management. Palgrave Macmillan.

Mercedes-Benz Official Website

Statista

Mercedes-Benz Market Insights

Offers market data on the luxury automotive industry, including Mercedes-
Benz’s performance in different regions and segments.

BMW vs. Mercedes-Benz - Comparative Analysis

Automotive News

Mercedes-Benz EQS Analysis

Reports on the EQS launch, branding, and competition in the EV market.

Forbes

Mercedes-Benz and Sustainability

Articles discussing Mercedes-Benz's efforts in electrification and how its
branding reflects these goals.