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Differentiation and Communications Strategies: Mercedes Benz AG Case - Essay Example

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Differentiation and Communications Strategies: Mercedes Benz AG Case

The report gives a comprehensive analysis of the marketing strategies of Mercedes Benz. Mercedes Benz is one of the most reputed luxury car brands in the world. The company has been ruling the segment for several decades until the aggressive strategies of rival brands Audi and BMW. Mercedes is now pulled down to the second position. Analysis says that the company will again be pulled to the third position by the rival brand Audi. What happened to Mercedes was the over reliance on market presence, brand value and experience. The marketing team believed that always brand value will sell the product. But when Audi and BMW utilized this weakness of Mercedes Benz for their strategy, Mercedes could not make a sudden makeover on the brand image. A perception of the brand that is built over for years is difficult to be changed with an immediate campaign. It is a gradual process. Mercedes is currently undergoing this process. It can definitely regain the lost market share if they properly identify the strategic areas that can help the company. The greatest strength of Mercedes Benz is its brand name. The company is a renowned luxury car brand with its market spread across most countries. A Mercedes car is the dream of any aspiring car buyer. The brand value that the company developed over the past 125 years has been a greatest contributor to its success. The second major strength of Mercedes Benz is its strong Research and Development facility. Mercedes has one of the world class R&D facilities and R&D teams among the major automakers. Because of the strong base in R&D, the company is able to introduce world class cars in the market. Mercedes Benz is a pioneer in various technologies in the automobile industry. It was Mercedes Benz that introduced the first internal combustion engine, airbags, 7 speed automatic transmission, electronic stability programme and many other technology that are available on various cars today. Weakness: The main weakness of Mercedes Benz is the comparatively low sales growth in the recent months. The fall in sales of the brand has affected the profitability of the parent company Daimler. “The company said that while all of its divisions had been shipping more vehicles, earnings at its Mercedes-Benz Cars division had been hit by changes in the product mix, higher raw material costs and charges due to upcoming model changes.” (Reed, 2011) The next weakness of Mercedes Benz is the lack of youth oriented design. Compared to the latest BMW and Audi cars, Mercedes Benz’s models are not very appealing to the younger generation. Moreover, they are not very sporty compared to that of BMW and Audi. This is one of the major reasons why BMW or Audi is preferred over Mercedes Benz. Mercedes is also slow on development of new models. Audi and BMW have already launched a sedan that is placed below their A4 and 3 Series models. But Mercedes is still in the development stage of their model on the range. Opportunities: The major opportunity for Mercedes Benz is the highly potential luxury car market. The luxury car market of the world is growing at a tremendous rate keeping apart the ...Show more

Summary

This report will make a detailed analysis of the existing marketing strategies of the Mercedes Benz Company. Based on the analysis, recommendations were made for revamping company’s marketing communication and overall brand strategy and regain the lost market share. …
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Differentiation and Communications Strategies: Mercedes Benz AG Case essay example
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