Assignment

Marketing Fundamentals

Assessment 1

Blog: Mercedes-Benz

Lecturer: Tushara Balendran

Submitted by: Alina Foltea

Student number: 1917686

January 2021
 BLOG

Background of Mercedes- Benz

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Mercedes-Benz is a subsidiary of Mercedes-Benz AG and an automotive marque of German.
The company is well known for commercial vehicles and luxurious vehicles. Its headquarter is in
Stuttgart, Baden Wurttemberg. The company is wholly responsible for doing the business
globally of Mercedes-Benz cars and vans. The company has 173,000 employees with respect
worldwide. The company is founded by Karl Benz and Gottlieb Daimler. The focus area of the
company is on sales and product development of passenger cars. The Mercedes-Benz aspires to
be at the forefront in terms of connectivity. The more innovative look is portrayed on alternative
drives and automated driving. It has its sub-brands. It includes Mercedes-Benz AMG, Mercedes-
Benz me, and Mercedes-Benz Maybach. Mercedes-Benz AG is considered to be the premium
passenger car’s largest manufacturer.

In 2019 2.4 million cars and 438,000 vans were sold. In three continents the company is
developing a network of globalized production of batteries. The company provides various range

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of models which are electrified. The car segment of each passenger is covered by Mercedes-
Benz. It, therefore, includes luxury and premium vehicles as well as microcars. The sales record
of Mercedes-Benz in 2019 was 2.385.432. The current model which is assembled by the
company is ML-Class, E-Class, GL-Class, and S-Class. Numerous innovations have been
adopted by the company for establishing its brand value. It has sustainability value as well by
focusing on its stakeholders. It provides the best financial services. The company concentrates
upon the entire chain of value for profitable growth (Home, Mercedes-Benz Financial Services,
2020).

History of Mercedes-Benz
The origin of Mercedes- Benz is traced to the creation origin of Karl Benz. At that time
combustion of cars has been financed. In 1886, January it was patent. In 1901 the first marketing
of Mercedes automobiles was done.

(Karl Benz)
An entrepreneur of European Automobile in 1902 created a trademark and named Mercedes after
his daughter name Mercedes. The Mercedes cars were sold in early 1901. In 1926 the brand
name of Mercedes-Benz was produced. Later, Both Gottlieb Daimler and Karl-Benz merged
their companies. On 17th March 1834, Gottlieb Daimler was born. He attended Polytechnic
school in Stuttgart after working in France. He then started working in Geislingen after
completing technical activities. In 1865 he met Wilhelm Maybach which he was appointed as
workshop inspector.

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 (Gottlieb Daimler)
The production of the 770 models was done throughout the year 1930 by Mercedes -Benz. At the
time the car, the 770 model was very famous. At that time Adolf Hitler used to drive this
concerned car. More focus was laid on products of the military from 1937 by Daimler Benz. The
products included DB600 and LG3000 lorry. A hidden factory was also built-in in 1936. Around
63,000 workers were prisoned due to the consequences of war. Later, 12 million $ was paid by
the company to the family of workers. Various safety and technical innovations have been
adopted by Mercedes-Benz.
In the whole world, Mercedes-Benz is known as an automated brand that is highly established. In
2019, a new subsidiary was announced by Daimler AG. The new subsidiary came to be known
as Mercedes-Benz AG. The management of cars and vans of Mercedes-Benz was to be taken
care of by the new subsidiary (Raudjärv, 2019). Mercedes-Benz busses and bagged trucks are
going to be the Daimler Truck AG part. Cars of fuel cells, hybrid electric cars have also been
created for environmental control. In 2018, a certification of Allergy-friendly has been received
by Mercedes- Benz. More sustainability has been maintained by the company.

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The Logo
A three and four-pointed stars have been registered by Daimler-Motoren-Gesellschaft as a
trademark. Later the usage of only three-pointed stars was done. The logo represents the strength
and of the Daimler engines on the land, sea, and in the air. Also, this famous logo is a symbol for
the Mercedes-Benz plan and an important goal for world domination.

LOGO

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M
Mission and Vision of Mercedes – Benz

Mission: Its mission is to lead in delivery and innovation in case of customer experience off the
brand. It is likely to be done by amazing services and people.
Vision: The vision of Mercedes Benz is ambitious and simple. The company wants to be
customers and dealers' first preference with regards to finance service. It can be done through the
automotive brand of the company.

Tagline - “The best or nothing”.

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Product can be defined as creating something for satisfying the need and demand of the customers.
It is the image of an organisation in this global market.

Product: Mercedes Benz is regarded as the leading brand of premium car in the whole world.
The products of Mercedes -Benz are its strength. It has a variety of light commercial and
passenger cars. It also has vehicles of heavy equipment. The segment of luxurious cars is its
strongest portfolio of the product. It comprises SUVs, sports cars, and Sedans. The new
generation has also some segments which are also its power and attract the customers. At
present, it has CLA, B- Class, and A-Class. There are E-Class, C- Class, and S- Class which is
boasted by Sedan. The portfolio of products also comprises roadsters and cabriolets. In the sector
of SUV, it has GLA, GLC, and GLE. One of the essences of luxury is the S Class of Mercedes-
Benz. The product of Mercedes-Benz is the best in terms of technology, design, and luxury.
Through the portfolio of Mercedes-Benz the firm deals with pre-owned Mercedes. Various other
products are the USP of Mercedes-Benz (Team, 2020).

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 GLC 300 Coupe

GLA

The new Mercedes Benz T- class

It is a van of the compact city for families. It provides work, enthusiastic and active leisure its
new design and layout helps the firm to achieve desirability and functionality. Through the
vehicle, families can step into the Mercedes-Benz world.
Mercedes- Benz Trucks
The truck is economically efficient and is reliable. It provides a transport solution for customer
orientation. The concerned brand stands in construction sites and transportation of distribution. It
is segmented into heavy-duty, light-duty, and medium-duty.

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Mercedes- Benz Vans
Network and innovative solution are provided by Mercedes- Benz in the case of vans and
mobility. Its features and design help to make the travel more efficient and safe.

Mercedes AMG -E Class

The vehicle provides greater comfort, aerodynamics are improved and it has striking designs.
The infotainment system and steering wheel are attractive elements.

All the products are of effective quality and have unique technological features. It includes the
airbag of passengers and the steering wheel is of multifunction. The wheels are alloy. The C-
Class has the 1950cc diesel. There is an antilock braking system. The reconcile of modernity and

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tradition is designed by Mercedes-Benz. The edges are being reduced and a “sensual purity” is
provided. The new designs aim for creating sensual surfaces and closer forms. The company
wants to showcase high technology for arousing emotional aspects. Through this, the brand
image is given a different shape. The company has already been associated with the brand of top
class in the entire world. Through unique products, Mercedes-Benz has seen effective market
growth (Bhasin, 2020).
There are some benefits of buying Mercedes-Benz like it has a program that is certified and pre-
owned. The services are complimentary and the buyers get what exactly they desire. Best
finance is received by the customers from the company. There are safety features and is fuel-
efficient.

Pricing strategy is used by the firm to establish price for the service and the product. The
prices are determined to maximize the profit rates.

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Price: Mercedes-Benz is a brand of luxury car which is of the premium price. It mainly caters to
the segment which is niche as it is a segment of luxury. The quality is more valued compared to
price(Liu et al., 2017). It can be said that the price remains at the higher end. There is a huge
availability of Mercedes-Benz products in the market. The pricing range is $100000 from
$30000. In India, the price range is INR 25, 00,000 to INR 80,000. Through this, it can be
understood that premium pricing is used by Mercedes-Benz. The decision is taken based on
competition and its features (Jedidi and Heil, 2019). The company has focused on the car’s
quality at first. More concentration is given to the customers to get more value. This helps the
company to get more loyal customers in this stiff competitiveness. The company is more
customer-centric as customer satisfaction is its major goal. The premium price has a positive
response for Mercedes-Benz as a luxurious lifestyle is possible in a low range. This has created
high brand credibility and it is given more value.

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Page 13 of 20
 Place is one of the
determining factors
for gaining a
profitable outcome in
this global
marketplace. Place
mentoring is critical
in success
determining in the
current market place.
Place: The products of Mercedes-Benz are present all over the world.
It showcases the
It caters its services to various countries on a worldwide basis. The
location of the
service station and dealership are present across various countries.
company and the
Mercedes-Benz's major markets are Europe, Germany, North
areas where it delivers
America, and China. The company has a global reach that showcases
services. In order to
strong distribution and place strategy (Alousque, 2019). There are a
target the customers it
total of 80 dealerships of Mercedes-Benz in India. There are major
is important to look at
factories in Africa, South America, and many other major Asian
the place aspects and
countries. Throughout the whole world, the product is distributed by
requirements.
dealers who have a broad network (Zhelev, 2020).
Mercedes-Benz believes that customers won’t buy the product which
will only move from x point to y point. In this case, new innovative
means have been applied by the company to gain a profitable amount.
The company is working hard to change the perception of reposition
and brand. A car is being made by Mercedes-Benz that helps in
enabling the idea of selling a car in the current market. It is done to make it more appealing to

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the younger generation. A message is sent by the company that they can be considered to be
more approachable. The company makes its products available at their site which is
https://www.mercedes-benz.com/en/company/. Gaining the idea of the company and the way of
placing orders becomes easy. The concerned website helps the customers to get access to the
product at any place in the world.

Promotion is an effective tool for making the brand awareness of Mercedes-Benz for gaining
competitive advantage. It is mainly done for communicating with customers and generating more
sales. It has become utmost important to advertise the product for better customer engagement.
Through this marketing approach is focus. It thus creates a platform for creating differentiation.

Promotion Mercedes-Benz: Due to the changing attitude of customers Mercedes-Benz has also
focus on Promotion. At first, the company used to focus on the safety, luxury, and engineering
department of its company. More fun-loving approaches are being put forward by Mercedes-
Benz. The company is targeting the younger generation as it wants to expand the market (Roxo,
2020). The company follows various promotional techniques for increasing its communication
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level. Online advertisement, Print media, Television, and Social media are considered. The
company also offers warranty services and establishes the service of customers. Through this
Mercedes-Benz can build up a good quality of reputation. It has become a brand that is
recognizable in the whole world. This makes the company enjoy the value of prestige (Zhou et
al., 2019).
Mercedes-Benz is regarded to be the promoter of the product aggressively. As the company
caters its services to many countries, the need for traditional advertising is not its concern.
Through online marketing, communication is more advanced. The activities customer-centric
have helped Mercedes- Benz to create huge awareness among the people. It includes the
Mercedes trophy which is a tournament of golf. Various drivers are organized by Mercedes-Benz
like Luxe drive and International platform of driving. As most people are inclined towards social
media sites like Facebook and Instagram so online promotion results in positive outcomes.

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Page 17 of 20
Reference List
Background
Mbfs.com. 2020. Home | Mercedes-Benz Financial Services. [online] Available at:
<https://www.mbfs.com/> [Accessed 3 December 2020].

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Raudjärv, M., 2019. In Germany–visiting the Mercedes-Benz subsidiary of the large car
manufacturer Daimler AG. Estonian Discussions on Economic Policy, 27(3-4), pp.272-273.
Available at https://ojs.utlib.ee/index.php/TPEP/article/download/16251/11196/

Product
Bhasin, H., 2020. Marketing Mix Of Mercedes Benz. [online] Marketing91. Available at:
<https://www.marketing91.com/marketing-mix-mercedes-benz/> [Accessed 3 December
2020].Bhasin, H., 2020. Marketing Mix Of Mercedes Benz. [online] Marketing91. Available at:
<https://www.marketing91.com/marketing-mix-mercedes-benz/> [Accessed 3 December 2020].

Team, M., 2020. Mercedes Benz Marketing Mix (4Ps) Strategy | MBA Skool-Study.Learn.Share..
[online] MBA Skool-Study.Learn.Share. Available at: <https://www.mbaskool.com/marketing-
mix/products/16988-mercedes-benz.html> [Accessed 3 December 2020].

Price
Jedidi, H., and Heil, O., 2019, July. PRESTIGE PRICING IN MARKETS FOR LUXURY &
PREMIUM PRODUCTS. In 2019 Global Fashion Management Conference at Paris (pp. 636-
649).
Available at:https://www.researchgate.net/profile/Houssam_Jedidi/publication/
334399528_PRESTIGE_PRICING_IN_MARKETS_FOR_LUXURY_PREMIUM_PRODUCT
S/links/5e412732458515072d8e25bc/PRESTIGE-PRICING-IN-MARKETS-FOR-LUXURY-
PREMIUM-PRODUCTS.pdf

Liu, Y., Li, K.J., Chen, H., and Balachander, S., 2017. The effects of products’ aesthetic design
on demand and marketing-mix effectiveness: The role of segment prototypicality and brand
consistency. Journal of Marketing, 81(1), pp.83-102. Available
at:https://www.researchgate.net/profile/Krista_Li/publication/306330784_The_Effects_of_Produ
cts%27_Aesthetic_Design_on_Demand_and_Marketing-
Mix_Effectiveness_The_Role_of_Segment_Prototypicality_and_Brand_Consistency/links/
5d695128a6fdcc547d6cc201/The-Effects-of-Products-Aesthetic-Design-on-Demand-and-
Marketing-Mix-Effectiveness-The-Role-of-Segment-Prototypicality-and-Brand-Consistency.pdf

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Place
Alousque, I.N., 2019. Persuasive Strategies in Mission Statements. Círculo de Lingüística
Aplicada a la Comunicación, 80, pp.37-50. Available
at :https://recyt.fecyt.es/index.php/CLAC/article/download/79220/49127

Zhelev, C., 2020. International Marketing in the Digital Era. Collaboration of Sustainable and
Contemporary Knowledge. European Journal of Marketing and Economics, 3(1), pp.63-71.
Available at:http://journals.euser.org/index.php/ejme/article/view/4649/4516

Promotion
Roxo, F., 2020. Transmedia Storytelling as a Potential Employer Branding Strategy. U. Porto
Journal of Engineering, 6(1), pp.66-77. Available
at;https://journalengineering.fe.up.pt/article/download/2183-6493_006.001_0007/396

Zhou, C., Sridhar, S., Becerril-Arreola, R., Cui, T.H. and Dong, Y., 2019. Promotions as
competitive reactions to recalls and their consequences. Journal of the Academy of Marketing
Science, 47(4), pp.702-722. Available at :https://link.springer.com/article/10.1007/s11747-018-
0611-8

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