In this blog, we will discuss the Marketing Mix of Mercedes Benz in detail, covering all 4Ps. Let us first understand the company better.
Mercedes-Benz is a premium car manufacturer founded in 1962 by Karl Benz and Gottlieb Daimler, they operate in luxury cars, buses and trucks. Its headquarters are located in Stuttgart, Germany. The company logo, the three-pointed star, is one of the most famous logos in the world. Daimler AG is a subsidiary of its parent companies Mercedes AMG and Mercedes Maybach. Their slogan is “Best or Nothing”, and they have truly achieved this.
Mercedes Benz India started in 1994 and is headquartered in Maharashtra. It has become a pioneer in the Indian luxury car market and created the Indian luxury car market. Their development speed in the Indian market is remarkable and they have the widest network reach for any luxury car manufacturer.
Now that we have a brief of the company, let us deep-dive into the marketing mix of Mercedes- Benz.
Marketing Mix of Mercedes Benz
A marketing mix is an analytical tool that helps a company to promote its products and help them do branding. It incorporates the 4P’s which are price, product, place, and promotion.
Let us examine the marketing mix of Mercedes-
1. Product Strategy of Mercedes Benz
Mercedes-Benz is known for its innovation, advanced technology, and constant research keeping its products known as the number one known for its luxury, safety and powerful engine. They have also launched “Blue Efficiency” to reduce emissions of Carbon dioxide. It has low carbon dioxide emissions from the competitor’s fuel or diesel consumption, providing customers with efficient mobility.
In the new generation of market segments, it has A-Class, B-class and CLA. In terms of cars, it has Class, Class and S-class models. Mercedes-Benz also has a wide range of convertibles and roadsters in its product portfolio, and GLA, GLE, GLC and GLS in the SUV segment. In addition, the Mercedes-Maybach S-Class sedan itself is the essence of true luxury.
It has a high resale value and is the first automaker to introduce automatic braking systems (ABS), airbags, and pretensions in its vehicles. All this makes the product brand unique. Mercedes-Benz is known for its durability and good driving performance, which is a good attribute in the automotive industry
2. Pricing Strategy of Mercedes Benz
Mercedes-Benz is a high-priced luxury car brand. In the luxury goods arena, they serve a niche market that values quality over price, so prices are always on the higher end. In foreign markets with a wide variety of Mercedes-Benz products, prices range from $ 30,000 to $ 100,000 and more. In India, since it only targets the luxury car market, the price ranges from Rs 25,000,000 to Rs 80,000,000. The company targets the luxury segment only, hence they incur a lot of material costs. Therefore, the pricing strategy of the company is one of the premium pricing strategies based on its characteristics and competition.
3. Place Strategy of Mercedes Benz
Mercedes Benz manufactures cars across continents. They cater to a variety of nations worldwide, with its dealerships and repair stations present across various countries, the main markets are China, Asia Pacific, Europe, Germany, North America etc. a worldwide reach shows the strong place & distribution strategy of the company which has also helped it in building its brand image. The company tries to provide an aura through its stores for customers to give them a sense of luxury and
Mercedes has many dealerships across the main metros and cities globally. They have their factories and plants set all across the parts of the world in Asia, North America, South America, Africa, Europe.
4. Promotion Strategy of Mercedes Benz
Mercedes-Benz has taken a variety of measures to support weaker markets based on the extent of regional unit sales. It has also improved its after-sales service process by providing free or privileged after-sales service to high-end consumers. The company recently targeted the younger generation. This is one of the strategies adopted by the company as a luxury car brand to survive in a slowly recovering economy. According to a survey conducted by the company, among potential customers between the ages of 21 and 29, about 59% of customers have a satisfactory view of the brand, and only half of them are willing to buy Mercedes cars.
So, that was the marketing mix of Mercedes, let us also learn the advertising strategies of the company.
Advertising strategy of Mercedes
Mercedes-Benz has always been an aggressive promoter. The promotion strategy of the company uses all media channels, such as television, print, online, billboards, etc. In catering to the luxury market segment, it does not feel the need for traditional advertising methods. Their marketing strategy has always been focused on products and technology. However, as the times and customer attitudes change, they have also turned to increase communication with consumers around the world through online marketing, social media presence, and print media.
In addition, it has established brand awareness through various customer-focused activities, such as the Mercedes Trophy, which is an international amateur golf tournament in which golfers from all over the world participate. It also organizes various driving activities, such as international driving platforms, luxury driving, and car enthusiasts get the opportunity to drive their cars in challenging places.
Mercedes Benz has existed for more than 100 years, and still maintains its position in all respects. From the very beginning, all the aspects you know represent luxury, safety, comfort, and first-class in a different society from other brands, it is still the first choice for the elderly, middle-aged and young people, which is reflected in the sales and demand continues in developing countries. Using the above marketing mix, we can conclude that it has taken the right approach in its mix of international marketing strategies and sales continue to increase.
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