Term Paper on "Marketing Plan Base on Mercedes Benz C300"

Term Paper 15 pages (4028 words) Sources: 1+ Style: MLA

[EXCERPT] . . . .

Mercedes Benz C300 Marketing Plan

Mercedes Benz Presentation

Current Marketing Situation

Mercedes Benz Market

Mercedes Benz Target Segments

Mercedes Benz Product Review

Mercedes Benz Competition

Mercedes Benz Distribution Channels

Marketing Strategy

Product Strategy

Price Strategy

Distribution Strategy

Promotional Strategy

Budget

The following pages will focus on discussing Mercedes Benz's marketing situation. The company's financial situation will also be presented bellow. The beginning of the paper is centered on the company's history, on its present situation, and also on future trends that the company is expected to follow. For a more developed view on the company's situation, a presentation of the worldwide car industry will be discussed. Other than this, the paper continues with an analysis on the company's market, its market segments, and its competitors. A SWOT analysis will also be presented. The company's marketing strategy will be analyzed in terms of product, price, distribution, and promotional strategy. The conclusion will summarize some of the recommendations that will be discussed throughout the following pages.

Introduction

Although the car industry has reached its peak in mature markets like North America, Europe, and Japan, the expansion process of this industry still continues due to emerging markets like China and India. With North America being the largest national market, it is expected that China will soon become the second largest national market, outnumbering Japan. It is also expected that the following decades will be characterized by a significantly increased production.

Another characteristic of car industry's future is related to flexibility and diversity. Experts state that microelectronics will be very common in the future. The energy conservation issue, which is present, or at least it should be, in every aspect of our lives, will determine certain changes in the car industry as well. These changes refer to alternative fuel. Currently, there are more and more hybrid vehicles. They present a series of obvious advantages for the environment, but there is also a downside regarding their price, which is about $3,000-5000 higher than the price for regular vehicles. However, it is clear that both car producers and their customers will be affected by this issue.

Specialists also state that in the future vehicle producers will use different materials like improved plastics or composites that are supposed to reduce vehicle weight, fuel consumption, and will also allow for new designs to be produced.

Another future trend in the car industry refers to a more visible implication of the European Union in the car industry. The assets of the top ten multinational vehicle producers represent 28% of the assets of the world's top 50 companies, 29% of their employment and 30% of their total sales (EMCC, 2004).

Mercedes Benz Presentation

Mercedes Benz is a German automotive company and one of the most prolific companies worldwide. The company was founded in 1871 by Karl Benz and in 1890 by Gottlieb Daimler and Wilhelm Maybach. Currently, the company is a division of Daimler AG, and the company's headquarters are located in Stuttgart, Baden-Wurttemberg, Germany.

The company's creator, Karl Benz, holds the patent for the motor wagon, and is also responsible for introducing the first four-stroke engine (Wikipedia, 2007). Even more, Karl Benz is considered to be the inventor of the modern automobile. Due to the World War I, the economic period that followed determined Benz's and Daimler's companies to sign an Agreement of Mutual Interest that was supposed to be valid until the year 2000. In 1926, the two companies decided to merge, becoming Daimler-Benz.

After the merger, the company started to be known as Mercedes-Benz, after one of its previous car models. Due to the merger, the newly formed company needed a new logo as well, logo that needed to incorporate the names of the two former companies that merged into Mercedes Benz. This is when the three-pointed star was chosen to represent the new company, representing the ability of the company's motors on land, air, and sea use. This image was completed with the traditional laurel wreath symbol. The company's current logo also includes a plain ring that was first used in 1937.

Over the year, Mercedes Benz participated in a series of alliances. One of these alliances was a distribution agreement with the American Studebaker-Packard Corporation that Mercedes Benz entered in 1958. This agreement allowed Mercedes Benz to enter the U.S. market by using Studebaker's dealer network. The agreement was active on the U.S. territory until 1963 only.

Mercedes Benz is one of outsourcing's promoters, by taking its production in several world areas like: South Africa, Thailand, Malaysia, United States of America, Argentina (where the company opened the first factory abroad, producing buses, trucks, and vans), Brazil, India, Nigeria, United Kingdom (where the SLR model is built at the McLaren Technology Center), Egypt, Austria (where G-Class is produced), China, Turkey, South Korea (where Musso and MB100 models are produced by Ssang Yong Motor Company), Federation of Bosnia and Herzegovina, and Mexico.

Regarding Mercedes Benz automobiles distribution, the company has dealerships in over 130 countries. The company operates through both a worldwide group of dealers and directly from the factory. For European customers, Mercedes Benz offers a distinct delivery option.

The models produced by Mercedes Benz in 2007 are: A-Class Hatchback, B-Class Sports Tourer/Hatchback, C-Class Sedan, Sports Coupe and Wagon, CL-Class Coupe, CLK-Class Coupe and Cabriolet, CLS-Class 4 Door Coupe, E-Class Sedan and Wagon, G-Class SUV, GL-Class SUV, M-Class SUV, R-Class Sports Tourer, S-Class Sedan, SL-Class Roadster, SLK-Class Roadster, SLR-McLaren High Performance Coupe and Roaster. The range of vans produced by Mercedes Benz include: Vito, Sprinter, and Vario. The most successful trucks produced by the company are: Atego, Axor, Actros, Econic, and Unimog. The buses produced by the company are designed for Europe and Asia, mainly. Following environmental trends, Mercedes Benz introduced seven hybrid models at the 2007 Frankfurt motor show, including F700, a concept car that combines hybrid features with the DiesOtto engine.

In the United States Mercedes Benz's site reaches 3,803,240 sq m (966 acres), including a plant of 298,700 sq m. The initial investment in the entire location was of $400 million (MBUSI, 2007). Later, the investment expanded to $600 million. The U.S. plant is consisted of one expanded body shop, two paint shops, and two assembly shops, in which 4,012 employees work. Due to the expansion, the total annual production of the U.S. plant reaches 173,600 units. Currently, the plant produces M-Class, R-Class, and GL-Class models. Mercedes Benz U.S. International exports over $1 billion in finished product.

Mercedes Benz's new generation C-Class Sports models are considered to be "proof that dynamic styling, exceptional comfort and thrilling performance can go hand in hand with safety and practicality" (Mercedes Benz, 2007). The 2008 C300 Sport Sedan is expected to leave a strong impression in the customers' mind. The exterior of C300 is impressive, dynamic, sporty, fresher, and more youthful. As always, Mercedes Benz makes proves of its innovative abilities regarding safety, as C300 is equipped with both Anti-lock Braking (ABS) and Brake Assist (BAS). The front and rear suspension are improved, allowing for greater dynamism and handling. In terms of comfort, Mercedes Benz in known for making no compromises, as the C300 offers plenty of lateral support, and front seat Easy Entry function as standard. Even more, C300 offers at no extra cost an additional man-made leather upholstery option. The forecasted price of C300 Sport Sedan will reach $31,975.

Current Marketing Situation

Mercedes Benz is one of the most prolific players on the sports and luxury cars market. This market segment has reported significant increases over the last period, especially between 1986 and 2000. In the United States unit sales between 1997 and 2002 have increased up to 17%. The 9/11 tragic events determined specialists in the field to forecast a significant decrease in sales for this sector. But reality proved them wrong, as in 2001 and 2002 sports and luxury vehicles proved to be more successful than any standard or compact vehicle (Mintel, 2003).

Due to the fact that high prices of luxury and sports vehicles determine greater profit margins, these types of vehicles are preferred by both dealers and manufacturers. For example, in certain cases of ultra-luxury vehicles supplier profit margins can reach 200% or more. Market increases and profit margins increases determine this sector to be more and more competitive, forcing its players to invent marketing methods and techniques that can allow them to gain competitive advantage. It is expected that along with the market's increase the number of customers will increase as well. The increased competitiveness of this sector has determined luxury and sports vehicles manufacturers to increase the quality of their products and to offer new service facilities to their customers. Most significant improvements are related to power, handling, design, safety, and comfort. Branding techniques are responsible for the increased sales of vehicles belonging to Audi, BMW, Jaguar, Lexus, and Mercedes.

However, competition in this sector has increased in other regions than Europe and the United States. Emerging and expanding markets in China and India come to support this affirmation.… READ MORE

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