Marketing of Services Assignment

Company:- Mercedes

Submitted To:- Ms Rachita Sambyal

Submitted by:- Anup Chauhan (13051) Shreya Goyal(13035)

Marketing of Services
Company:- Mercedes
7P Framework
In the 7 P s of marketing the Mercedes has developed certain features which set it apart from its competitors. Here we will discuss all the seven P s of marketing for the Mercedes Benz car.

Product
This is one of the most important constituent in the marketing mix in which the physical product or the service that the company is offering to its customers for sale. Here the unique features and the benefits of the product are communicated to the customer in order to prove the superiority of the product over that of competitors. Besides a niche product Mercedes Benz is known for putting innovation in his product to provide higher comfort and safety to its customers. For example Mercedes Benz is going to introduce a new feature Blue EFFICIENCY. The Blue EFFICIENCY technology is a package of measures which can further reduce energy consumption by higher percentage of combustion of the fuel and hence carbon dioxide emissions will reduce. The Blue Efficiency technology will improve the efficiency of the engine. In a nutshell: at Mercedes-Benz, Blue EFFICIENCY stands for the concept of efficient mobility. The other features that Mercedes Benz have are: high resale value, SUV bumper, larger interior space etc. It is also the first automobile manufacturer to introduce ABS braking system in automobile, the airbag and pre-tensioning devices.

Price
The price is the amount paid by the customer to buy the product or avail the services of the company. This marketing strategy ensures that the pricing of the product is done correctly and It is not overvalued to the customer and not undervalued to incur loss to the company. As Mercedes deals in the niche segment and the customer to which the company provide is not very much price sensitive. The customers of this brand look for the value of the money they are getting on the product.

Place
Place or distribution, tells the availability of the product through different medium in different places. The product can be available online or through a direct sale at showroom but its geographic presence decides this factor of the company. In the past few years Mercedes has spread the reach to the developing countries also and the product is available to almost every corner of the world. The contribution of opening of the economies of the developing countries is also a motivational factor for Mercedes Brand. Earlier a few category of Mercedes were available in the developing countries. But now the geographical boundaries are immaterial for big brands like Mercedes.

Promotion
In order to communicate the people about the features of the product and its availability at different locations the promotion strategies of the company comes into the picture. Mercedes do not believe in incurring a huge cost on advertisement as it only caters to premium segment of the consumer and the brand has already developed a position in the mind of the people that the nameMercedes itself seems doing advertisement for it. The promotion strategy of Mercedes has reflected in the evolution of Mercedes-Benz range. In the past decade we have seen a dramatically expansion of the range of the vehicles provided by Mercedes and the addition of the M-class and A-class was introduced by the company as a part of this strategy. This promotional strategy of Mercedes has been accepted by the consumers all over the world.

People
To make the marketing activity to be effective, the role of the staff of the organization cannot be ignored. Mercedes have a very rich culture which continuously motivates their staff to perform better for the company. Mercedes provides various benefits and compensation, career advancement opportunities to its employees.

Process
The satisfaction of the customer is one of the most important roles of marketing. If you can follow the process of delivering high quality service or products to the customers, your marketing efforts will never be wasted.

Physical evidence
This feature of the product helps to position itself based on its certain physical attribute so that the customers will get to know how the product is going to benefit them. Thus, the product manufacturing company develops certain features in its product by which customer will be able to relate it to the product. Mercedes Benz targets the comfort of the ride and the status symbol to provide the physical evidence to its customers.

Conclusion
Mercedes is the brand which is able to position itself as a player in the niche segment which reflects a symbol of status, luxury and comfort. Like no other brand, Mercedes-Benz has got the highest standards of quality, safety, innovative drive and visual appeal. In spite of the fact that Mercedes Brand is more than 100 year old, it is continued to be the choice of the young as well as business professionals. It is the brand which is gaining up the market share in the developing countries with a consistence increase in the annual sales. With the help of 7 P s of marketing we can also conclude that Mercedes is able to establish itself in a premium segment and believe in providing the technology and comfort to its customer above their expectations. It is a brand which believes in walled garden technology and slowly shifting to open plane technology with the change in the demand of the customers and increasing competency level in the premium segment. There would be no surprise if Mercedes Benz will come with a comparatively less cost vehicles keeping their current strategy of diversification in buses, coaches, and trucks. This strategy would definitely increase the presence of the brand in the other segments of the automobile industry.

Strengths 1. 2. 3. 4. 5. 6. 7. 8. 9. strong brand name Owners club Successful f1 team Good resale value Good relationship with the government 80% of all auto patents worldwide Innovation and technology leadership Global presence All cars created comfortable and luxery by Mercede

Weaknesses 1. Price 2. Long delivery period Opportunities 1. Developments of new models 2. Environmentally friendly cars Threats 1. The current economic crisis 2. Strong competitors 3. New entrants into the market.

Above is the SWOT and PEST analysis for Mercedes-Benz Introduction Mercedes Benz, a member of the DaimlerChrysler Group, one of the biggest automobile manufacturers in the world. With three great brands, first-class products and highly qualified employees, the Mercedes Car Group plays an essential role in the success of DaimlerChrysler. It is the world market leader in the luxury segment. Mercedes-Benz stands for modern, innovative automobiles, for quality, safety and comfort .Mercedes-Benz enjoys an excellent reputation, particularly in the area of safety technology. Many pioneering technical innovations that are standard automotive features today were first seen in a Mercedes-Benz car. SWOT Analysis To begin with, I will look for the main strength that the company had. As we know, Mercedes-Benz has been a well known business for a very long time; therefore, the strengths would be a lot than I expected. The obvious strength is -High class, comfortable and safety. Below are the examples of the specific strength that presently the company had. They include: y y y y y y Well-established name Better rescue services and customers cares Least possible consumption of energy for the vehicles Skilled engineers and staff High -tech machinery in the manufactory Accessed Roadside assistance system for all the Mercedes vehicles.

Now I will go through the opportunities in SWOT. Not only the company has a lot of strengths in the present days, they have the opportunities which leads the business will be improved in the future as well. Opportunities for Mercedes-Benz : y y y y Joint venture. Improving safety, comfort, and sustainable mobility. Providing fascinated vehicles for customers by the supportive of DaimlerChrysler Group Professional sport sponsorship

Before we go through the opportunities of the business, we have to take seriously on the threats at first. Apparently, Mercedes Benz is a global brand company and yet they are facing a lot of difficulties as well. Although they have a lot of difficulties, they still can handle them properly. Threats for Mercedes: y y y A tax increase for importing vehicles. Less educated employees in China, but also very expensive to hire employees in Europe. Competitors that the Mercedes company had 1. BMW(the most direct competitor) .Luxury small car market with less expensive sub-compact model 2. Cadillac (GM)-Concentric diversification 3. Lincoln (Ford)-Attract satisfied customers with improved products 4. Lexus (Toyota)- Sticker prices considerably below other luxury cars It is very common that every company has its own weaknesses.

The marketing strategies of BMW and Mercedes-Benz. Both companies are renowned market leaders in supplying automobiles. The pair have a history of providing innovative cars for the past century. Over the years with the improvement of technology BMW and Mercedes-Benz have met customer needs by producing the most inspiring and well developed cars of their times. The BMW Group concentrates on selected premium segments in the automobile market. This means that they specialize in providing a high quality product and in return they can achieve higher revenues per vehicle sold. In contrast Mercedes-Benz which also provide to the premium segment of the market have concreted their name in history as manufacturers of luxury cars, have opened their doors to a range of more dynamic models targeting the slightly younger market.Brief Overview BMW On 21st July 1917, Rapp-Motorenwerke is renamed Bayerische Motoren Werke, (BMW) GmbH. Due to the ongoing war the company at the time the company grew quickly. With further expansion in mind, BMW decide to build a new plant next to the Oberwiesenfeld airfield in Munich, concentrating at the time on building aircraft engines for army planes until 1918. After the War BMW struggles to stay independent and is saved by nimble, BMW 700. It carries an engine of a motorbike and was given the name 'lion- hearted weasel'. It becomes extremely popular amongst the car buying public. After 1923 the new era of car development and engages with new products and fresh ideas. However success being short lived by BMW due to the Second World War after which a three year ban was imposed any production activities. BMW struggling to get a 'foothold' in the market later released the Isetta 250, a recognized success in the mini car era of the mid 1950's. However still not being strong enough to compete with its arch rivals of the time Mercedes, it released BMW 507 which quickly reached success. The evolution of the company in this way led to development of the BMW 1500, 1600, 1800, 2000 and were all classified under the first generation of the 5 series. BMW success story continues into the 1990's as it took over Rolls Royce and at the split of Rover plc it also bought the rights to the Mini in 2000 and re-launched its now more dynamic range in 2001.1992 was another year-to-beremembered for BMW when it, for the first time, outsold Mercedes in Europe. BMW now has 1, 3, 5, 6, 7, X, M, Z series and a motor-sport version in the 3 and 5 series. BMW tradition of building excellent automobiles with a special emphasis on performance, style and technological advancements could now be recognized through their product range. Mercedes-Benz Mercedes has been the name of the world's most innovative car brand for more than 100 years now. When Daimler-Motoren-Gesellschaft (DMG) delivered its first Mercedes on 22 December 1900, it began an era of dynamic development of the automobile. Today Mercedes-Benz is the most successful premium brand. Its technical perfection, quality standards, innovative impact and numerous car legends such as the 300 SL Gullwing are unique. The Mercedes star became the most famous symbol of a car brand and is one the world's best known trademarks today. The invention of a high-speed engine and an automobile, were considered by both Gottlieb Diamler and Karl Benz, both independently of one another worked to lay yhe foundations of motorization of road transport, what we know today as 'cars'. To gain publicity and distinction of one another they used 'Diamler' and 'Benz' as trademark. These trademarks would be used to show the origin and quality of the engines made. The boost of car demand can be really related to Emil Jellinek, a progressive thinker of sport, realised that at the dawning era of modernization and a key invention of the future was something he needed to be part of. Jellinek had good contacts with the worlds of international finance and the aristocracy and became increasingly active as a businessman. In 1898, he began to promote and sell Daimler automobiles - in particular, within the higher echelons of society. The name 'Mercedes' came

from Jellinek, it was first used as the team racing name and later was patented in 1909. and the logo of the three pointed star was to symbolise Diamler's ambitions of universal motorisation 'on land, on water and in the air'. As did BMW, Mercedes also struggled with the aftermath of War. The demand for luxury cars being non existent, in 1926 Diamler merged with its rival company Benz and Cie, to form Diamler- Benz AG. Moving on into the more recent era Mercedes had secured their name as providers of standard luxury cars. But with growing competition Mercedes was falling behind as the market was becoming more diverse and the demand was changing from luxury to more fun loving automobiles. Mercedes- Benz reacting quickly wanted now to deliver a more fun loving and affluent make for the younger professionals and to cater for this market.

Marketing Strategy of Mercedes Benz

y Mercedes Benz understands that its customers are not simply buying a car to get from point A to point B, so before they actually sell a car they must first sell an idea about that car. Mercedes Benz sells their ideas through promotion and advertising. Mercedes Benz wants to change the perception of their brand at the personal level and reposition their brand so that they are more appealing to young professional men of all ethnicities. Secondly, Mercedes Benz is communicating to its target market the idea that they are a more approachable, personal, fun, and energetic brand. This new message was evident in the Janus Joplin advertisement, in the sponsoring of the Elton John concert in New York, and the sponsoring of professional tennis. In the summer of 2003 Mercedes Benz launched an marketing event in 16 cities across the United States to promote the new C- Class to younger buyers. The campaign gave potential buyers a chance to test drive the C-Class product line on courses that simulated real life driving conditions and gain information from current Mercedes Benz owners in attendance. Mercedes Benz Mercedes has decided to stress safety over luxury in its new marketing campaign. As the tables have turned in the economic downturn, so have consumer priorities. It is becoming more popular to brag about how little you just spent on a new car as opposed to telling your friends how ridiculously expensive your new car was. Steve Cannon, VP of marketing for the U.S., believes that the new safety technology Mercedes has to offer should play a bigger role in its vehicle sales. In an interview with Automotive News, Cannon said, "You have to give people the justification that says, 'Yes, a Mercedes-Benz is relevant to me -- it can save my life.' " At a time when hybrids and less expensive cars are hugely popular, Mercedes has to give America a reason to shop for a Benz. Mercedes has just launched its all new E-class, equipped with several features previously only available in the top of the range S-class. Blind spot detection, lane-keeping assist, night view, and attention assist, which monitors the driver's road awareness, are a few safety features

available on the 2010 E-class. These features set Mercedes ahead of the pack in terms of safety, and the company is banking on its innovation to help it sell some cars. y Cannon quickly touched on competing brands and their marketing tactics. He said that Mercedes would not lower its game and that the company would continue to focus on innovation and safety Mercedes Benz marketing strategy in the United States 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.

The Best or nothing new global brand strategy by Mercedes-Benz

Mercedes has launched a new slogan called : The best or nothing. The brand campaign will begun yesterday on June 11, 2010, and will run in print, TV and online channels. This ambition to lead will also be evident in the visual depiction of the brand through greater proximity between the badge on the vehicle and communication. In communication activities, the brand name and logo will be used together and augmented by the The best or nothing brand claim. The star one of the world s most valuable and best known logos receives a three-dimensional appearance and a highly polished chrome finish. It was Gottlieb Daimler who formulated the motto The best or nothing, always living and working by this. Until this very day, this leadership expectation remains fundamental to the thoughts and actions of every single Mercedes-Benz employee. Therefore, it was no surprise that this theme was enthusiastically adopted by the workforce as a motivating internal rallying cry and call to top performance. Staying with this notion, Mercedes-Benz is enlisting its employees as brand ambassadors for the international brand campaign. Whether they are safety engineers, head designers or electronics specialists, employees from a wide range of functions underscore factors that reflect the brand s ambition to lead now and in the future.