Marketing Strategy Analysis: Strategic Analysis Of Mercedes-Benz India

Mercedes-Benz operates on the differentiation strategy. Luxury, prestige and technological innovations drive the company 's production from the high quality small cars and e-bikes of the smart brand, to the premium automobiles of the global corporation.

Mercedes doesn't only seek for horse power & top speed , it also seeks for taking care of engineering and designing parts . It's a joyful thing to ride a fast car that can go from 0 to 70 in 50 seconds but your car won't be a good performer unless all it's parts are taking a good care in their details .

India is the 4th largest economy by ppp index and growth in urbanization is further increasing the sales of automobiles.

Being a world-class classic sedan car M5, it targets the middle or high income people as their customers. And these target customers will not usually pay seriously attention on the price. So the purchase decision made by this group of people will always depend on the product features, quality or even just image. These target customers and up-to-date technology make M5 stay a high price.

Tata Motors, India’s largest auto manufacturer have created the world’s cheapest car priced at $2,500 allowing drivers to be able to afford a car. Tata Group is a global enterprise whose headquarters are located in India, founded in 1868. The group contains over 100 independent operating companies, located in more than 100 countries. Each company is under control of their own board of directors and shareholders. One of the subsidiaries of Tata Group that will be focused on in the paper will be Tata Motors. They were founded in 1945, which is headquartered in Mumbai produces different types of vehicles. These vehicles include passenger cars, trucks, vans, buses and military vehicles. Over the years Tata Motors have used a global strategy to

This was one of the main divergent by Tata Motor from 207 to multi-utility vehicle, which set a record of 90000 booking for the car and till now it has a market share of twenty %.

The following project lays down the marketing strategy of a small size car, Tata Nano. It begins with introducing the car, the beginning of it’s manufacturing. And then it goes on to describe why Ratan Tata’s dream project couldn’t realize the huge expectations that were laid upon it. It further mentions market analysis of India’s Automotive industry, segmentation of the huge market and the appropriate target segment selected for the product. It then entails how the product is to be positions in the minds of the target audience and how that goal can be achieved; finally ending with the conclusion of the report.

Mercedes goal is to go beyond the needs of consumers by putting more effort in workforce and transportation technologies. Mercedes also focused on “high-tech quality profit strategies” (Kohler, 2009,pg312), which they believed, would help them have a lead within the global automobile market.

The Indian automobile industry is one of the largest automobile industries in the world with an annual production of 21.48 million vehicles in 2013-14. This industry accounts for 22% of the country’s manufacturing GDP (Gross Domestic Product).

Once the undisputed leader in the luxury car market, Mercedes-Benz India (MBIL) is currently facing stiff competition from its aggressive rivals – BMW and Audi. Bernhard Kern, who recently took over as the chief of MBIL, points out that it also reflects the absence of Mercedes cars in some segments, unlike its peers. “I have a very different picture (of the rankings) because in the saloon and luxury SUVs, Mercedes is leading in India. We are not in some segments like smaller SUVs. There are some gaps but we will close the gap,” says Kern. The A-class and diesel version of the B-class are part of MBIL's play against its peers at the lower part of the premium and luxury car market.

Although Mercedes Benz marketing strategy used to focus on safety, precision engineering of its cars and safety, they had to make sure that the Mercedes’ cars would suit the customers’ changing attitude. Now, they focus more on fun loving, energetic and approachable side of Mercedes Benz in their marketing. When its market expanded this caused an evolution in its marketing strategy. Mercedes Benz has found that they have to expand their market by including younger customers. Slicing prices to make the product more affordable was one of the marketing strategies also.

Mercedes Benz is considered to have the most luxurious and safest automobiles in the market. Mercedes Benz has the highest levels of Unaided, Aided and Top-Of-Mind brand awareness in the industry. Mercedes Benz brand awareness has continued to increase in all three categories from 2005 to 2007

Many of the customers in over the world believe that Mercedes Benz primary and key assets is the reputation and the respectable brand. The brand of Mercedes Benz is often mentioned and is being located as a character of the luxury, perfection and comfort. The Mercedes Benz is already existed more than 100 years, and it is still a trusted brand by all kind of professional and businessmen, all around the world. To become a big company like Mercedes Benz is very hard, and demand a large capital investment as well as a long time frame (Jackson, 2001).

Because the BMW produces cars in Germany, the United Kingdom, the United States, and South Africa, and its external partner, Magna Steyr who has a plant in Austria, the BMW can accord to different region, different culture, and different terrain to launch product lines to customers (Strategic Planning of BMW 's Global Production Network, 2006, para. 3). For example, the BMW can launch a super sports car which has all high technologies of the BMW. It can tell people that the BMW has technologies which competitors do not have. Moreover, there will be some technologies in other normal series cars. That can attract more customers to buy the BMW’s cars.

However, due to its unique targeting strategy, it has not win compatible brand recognition among the public. Although Audi enter much earlier than BMW and Benz in the luxury car market, its marketing strategy limited increase of public brand recognition even Audi has over 100 years’ history. Besides, although its styles are highly accepted by the targeting customers, there are a growing number of people who can afford luxury cars for family use in China. Lack of vitality is limit of its further market expansion. On the contrary, its major competitor in China, BMW, has launched a series of marketing strategies to promote its high-performance, manoeuvrability, as well as stylish design to attract young people (BMW, 2009) in order to expand its market share. Therefore, although Audi has achieved success in the targeting market, it may consider further development through diversification in product line and advertising campaign.