Mercedes Benz marketing mix framework analyses the German automobile manufacturer and luxury car brand Mercedes Benz to boost brand equity, facilitate market expansion and gain competitive advantage in the automobile industry.
The company aims to solidify its feet firmly in the luxury car market hence the German automaker has created the company’s marketing strategies like an innovative product line, pricing strategy, differentiation strategy and advertising strategy to grasp higher market share in major markets like the Indian market and other markets as well.
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Introduction: Mercedes Benz
# Mercedes Benz Group AG
- Origin Country: Germany
- Founded: 1926
- Headquarters: Stuttgart, Germany
- Employees: 172,425
- Annual Revenue: 133.9 billion EUR
- Net Income: 23.4 billion EUR
The German automobile manufacturer Mercedes Benz Group AG is known as one of the leading car manufacturers in the world. In the year 2021, the luxury car brand Daimler AG became the sixth-largest automaker in the world based on production.
Based on sales volume the largest market of the company is China which accounted for 37% of total sales in 2021. The Business Week Magazine has declared Mercedes Benz as one of the most prominent luxury car brands in the automotive industry.
The History of Mercedes Benz Group
The company was formed with the merger of Daimler Motoren Gesellschaft (founded by Wilhelm Maybach and Gottlieb Daimler) and Benz & Cie (founded by Karl Benz) in 1924. Both the companies of Karl Benz and Wilhelm Maybach-Gottlieb Daimler continued with separate operations until 1926 when they formally merged to become Daimler-Benz AG and agreed to use the brand name Mercedes Benz thereafter.
The Company was renamed DaimlerChrysler in 1998 and Daimler AG in 2007. The German automaker again went through a name change and Daimler AG became Mercedes-Benz Group in 2022.
Mercedes Benz Marketing Strategy & Marketing Mix
The Mercedes Benz marketing strategy & marketing mix explains the 4Ps product, price, place and promotion of the luxury brand in the automobile industry. The target market of the brand is the luxury segment of the major markets and the potential customers are the younger consumers who love high-quality small cars and luxury vehicles. Even if only half of these targets are loyal to the brand then it will prove fruitful for the company.
The marketing mix of Mercedes Benz has helped to create business strategies that have increased the product portfolio and the market share of the company to a great degree. Let us go through the 4Ps in the marketing mix of Mercedes Benz to know more about the luxury car brand in detail
Product Strategy of Mercedes Benz Marketing Mix
The product strategy in the marketing mix of Mercedes Benz is quite clear as the brand has set its priorities on durability and quality. Even from its earliest days, the brand has maintained its position and reputation in the automotive industry. The 1886 Benz Patent Motorwagen by Karl Benz, regarded as the first automobile is one of its kind.
The marketing mix of Mercedes Benz has made sure that the brand maintains its firm grip in the luxury segment of the luxury vehicles market. The product line includes a full range of light commercial, passenger and heavy commercial equipment.
Before 1994 an alphanumeric system was used by the brand to categorize Mercedes Benz Products but since then it has shifted to classes.
Product in The Marketing Mix of Mercedes Benz
Advanced technology, full use of constant research, mechanical and electronic innovations, powerful engine, high standards of safety regulations & safety features and durable materials along with Mercedes Benz marketing strategy has made it possible for the luxury vehicles company to maintain its brand position in the luxury car market. It was the first company to introduce pretensions, airbags and automatic braking systems in vehicles.
The product portfolio in the marketing mix of Mercedes Benz includes sports cars, SUVs (GLS, GLC, GLE and GLA) and Sedans (S-class, C-class and E-class) in the luxury segment and B-class, A-class and CLA in the new generation segment. Mercedes Benz products also include roadsters (SLK-Class) and cabriolets.
In 2005 three new bicycles were introduced by Mercedes-Benz Accessories GmbH including Folding Bike, Trekking Bike, Carbon Bike, Trailblazer Bike and Fitness Bike.
In 2015 the company unveiled the F 015 Visionary Concept Car with lots of awesome features that were unheard of till then.
The Mercedes Maybach S-Class is one of the most in-demand luxury vehicles of the brand with the best design and innovative technology.
The marketing mix of Mercedes Benz is focused on the future and thus the brand has invested heavily in electric and hybrid cars in the automobile market.
The luxury car market is no doubt full of several good brands but Mercedes cars, vans, trucks and buses are some of the best in the industry.
One of the most expensive Mercedes Benz cars to be sold at 142 million USD is
- 1955 MERCEDES BENZ SLR
Other notable Mercedes Benz cars in the marketing mix product portfolio are
- C CLASS COMPACT EXECUTIVE LUXURY SALOON COUPE
- S-CLASS FULL-SIZE LUXURY SEDAN CABRIOLET
- MERCEDES AMG
- E-CLASS MID-SIZE EXECUTIVE LUXURY SEDAN ESTATE
- MERCEDES BENZ SPORTS CARS – AMG GT BLACK SERIES
- MERCEDES MAYBACH
- 1996 SLK CLASS
Place Mix of Mercedes Benz: Mercedes Benz Marketing Strategy
Mercedes Benz Group is the parent company to its divisions Smart and Mercedes Benz and has spread its presence to several parts of the world. The company of Gottlieb Daimler and Karl Benz is the 13th largest car manufacturer based on unit sales.
It has a vast network of research centres and production plants located in several places like South America, Brazil, Hungary, India and Germany. Some of the most important ones are Atlantis in South Africa, Bengaluru in India and Fuzhou in China.
The place and distribution strategy in the marketing mix of Mercedes Benz includes product sales with help of dealerships and repair stations as part of after-sales services.
The important markets of the company are China, North America, Germany and Asia-Pacific Region.
Pricing Strategy of Mercedes Benz Marketing Mix
The luxury car market like the Indian market is full of potential customers especially the younger consumers who love to spend on luxury vehicles. The name Mercedes Benz is synonymous with luxury cars and is undisputedly one of the favourites of buyers.
It is the company’s marketing strategies especially the up-to-the-mark price ranges in the marketing mix of the Mercedes Benz that have helped Mercedes cars to maintain growth momentum, record solid sales and generate higher profits all these years.
Price: Mercedes Benz Marketing Strategy
The Mercedes Benz marketing strategy for price marketing mix is fully dependent upon the products. As the company sells luxury cars and related vehicles the price ranges are normally on the higher side.
The price strategies adopted by the company are
Premium Pricing Strategy
The target audience of the company is the niche group that cares more for superior luxury products than prices. The brand has adopted a premium pricing strategy for its high-end products. Innovative features, high-cost materials and advanced technology have pushed the product prices higher than what competitors would levy on similar products.
Skimming Price Strategy
In markets where the demand for Mercedes products is quite high, the company has adopted a skimming pricing strategy. When competitors start selling similar types of products the brand lowers its product prices in the form of offers to maintain its customer base
Competition-Based Price Strategy
The Mercedes Benz marketing strategy encourages the brand to use a competition-based price strategy to support weaker markets based on regional unit sales. Keeping the product prices similar to the prices levied by rival brands makes the product prices affordable and also helps to deal with competitors effectively.
Promotion Mix: Mercedes Benz Marketing Strategy
The parent company Mercedes Benz Group realizes how important promotion and advertising strategies and social media presence are for a brand. It should act as the right tool that will help the brand to stand out amongst other competitor brands in the industry. Even if only half of the target audience can relate to the business strategies of a brand then the purpose of the marketing mix framework gets justified.
Luxury brands have high-priced products and to survive in the market they need to have a loyal customer base. The marketing mix of Mercedes Benz has been spot-on as the brand name has become synonymous with quality and luxury in the automobile industry.
The various advertising strategies in the marketing mix of Mercedes Benz are as follows-
Traditional Advertising Strategy
The promotional marketing mix of Mercedes Benz uses traditional advertising for aggressive marketing. The ad campaigns are shown through both electronic and print media like television channels, radio, newspapers, magazines, billboards and hoardings etc.
Times are changing and so has the advertising strategy. The company knows how important online marketing is so focuses on creating a strong social media presence.
The sales promotion policy has been created to support weaker markets based on regional unit sales. Free after-sales services have been quite effective in creating a successful sales promotion policy.
Customer-centric activities like the Mercedes Trophy and various drives have proved quite good for the brand image. The International Amateur Golf Tournament named the Mercedes Trophy is quite popular. As part of the promotional marketing mix of Mercedes Benz, the company also organizes Luxe Drive and International Driving Platform for enthusiasts.
The company has launched Blue Efficiency to reduce carbon emissions and provide efficient mobility as part of its sustainability efforts.
Memorable Marketing Campaigns: Marketing Mix of Mercedes Benz
Unlock With Mercedes Benz
In 2021 the company launched the campaign “Unlock With Mercedes Benz” before the festive season. It highlighted the lucrative deals offered by the brand as it wanted customers flocking towards the products after the pandemic slowdown.
Merc From Home
Launched in 2020 the revolutionary campaign “Merc From Home” encouraged customers to purchase the luxury product from the comfort of the home
Life Gets Big
The ad campaign “Life Gets Big” was used to highlight the features of T-Class Mercedes, especially the improved space.
Key Takeaways from Mercedes Benz Marketing Strategy
Key takeaways from the Mercedes Benz marketing mix are
- Maintain an exclusive image in the luxury market
- Keep the product prices premium but offer additional incentives to lure in more customers
- Create an advertising and promotional strategy that resonates with the customers
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