Mercedes Benz Swot, Segmentation, 4p's

1613 Words Jul 2nd, 2012 7 Pages
SWOT Analysis

As for sure, Mercedes-Benz is a well-known vehicle business throughout the world. It is a global leader in premium cars and has a strong brand value. Hence, the strengths would be a lot than I expected. The brand reputation is the obvious strength for this company. Mercedes Benz is a famous German brand of premier automobile manufacturers in the world which is good in producing automobiles, buses, coaches and truck. It is also the world’s oldest company, which offers these type of vehicles and they are comfortable and safety. On the other hand, Mercedes Car Group has increased 2006 sales to record 1,260,600 passengers vehicle all around the world, hence the market knowledge and market share are also one of the
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In order to win the confidence of their potential consumers towards Mercedes, they have to manufacture their car in Europe. They can cut down the labor cost if they set up their factory in China but usually the Chinese is less educated in the knowledge of building quality and luxury cars.

Mercedes Benz uses three steps for targeting, which are market segmentation, target choice and product positioning. When using segmentation, Mercedes Benz finds information by looking at four segments, they are demographic segmentation, income segmentation, benefit segmentation and psychographic segmentation of society, which helps them to target the market more efficiently. The demographics of people who are able to purchase a Mercedes Benz are mainly male aged 28-50 years old. Behaviorally, these people have a successful image in their mind before buying a car and their annual income level are $150,000 above. Geographically, the main markets for Mercedes Benz where they are doing more than 65% of sales are Europe and North America because these areas are both heavily industrialized locations which means that residents are financially positioned to by their cars.
For Income segmentation, it is to divide a market into income level groups. In the case of Mercedes Benz products, the price range spans from $30,000, which is the cheapest model of the Mercedes Benz A Class, to the most expensive model of the Mercedes Benz SLS AMG, which is $196,100. From this case, we can

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