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INTRODUCTION

Mercedes-Benz is a German automobile manufacturer, a multinational division of t


he German
manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coache
s, and trucks.
The headquarters of Mercedes-Benz is in Stuttgart, Baden-Wrttemberg, Germany.
The name first appeared in 1926 under Daimler-Benz but traces its origins to Dai
mler-MotorenGesellschaft's 1901 Mercedes and to Karl Benz's 1886 Benz Patent Mot
orwagen, which is widely
regarded as the first gasoline powered automobile. Mercedes-Benz's slogan is "Da
s Beste oder
nichts" (English: "The best or nothing"). Mercedes-Benz is part of the "German B
ig 3" luxury
automakers, along with Audi and BMW, which are the best selling luxury automaker
s in the world
HISTORY
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-pow
ered car, the Benz
Patent Motorwagen, financed by Bertha Benz[2] and patented in January 1886,[3] a
nd Gottlieb
Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the additio
n of a petrol
engine later that year. The Mercedes automobile was first marketed in 1901 by Da
imler-MotorenGesellschaft. The first Mercedes-Benz brand name vehicles were prod
uced in 1926, following the
merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz
company.Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that w
as popular
during Germany's Nazi period. Adolf Hitler was known to have driven these cars d
uring his time
in power, with bulletproof windshields. Most of the surviving models have been s
old at auctions
to private buyers. One of them is currently on display at the War Museum in Otta
wa, Ontario.
Mercedes-Benz has introduced many technological and safety innovations that late
r became
common in other vehicles.[5] Mercedes-Benz is one of the best known and establis
hed automotive
brands in the world, and is also one of the world's oldest automotive brand stil
l in existence today
in 2014, having produced the first petrol-powered car. For information relating
to the famous threepointed star, see under the title Daimler-Motoren-Gesellschaf
t including the merger into DaimlerBenz.
SUBSIDIARIES AND ALLIANCES

As part of the Daimler AG company, the Mercedes-Benz Cars division includes Merc
edes-Benz
and Smart car production.[7]
Mercedes-AMG
Mercedes-AMG became a majority owned division of Mercedes-Benz in 1999.[8] The c
ompany
was integrated into DaimlerChrysler in 1999,[9] and became Mercedes-Benz AMG beg
inning on 1
January 1999.[10]
Mercedes-AMG is the official engine supplier for the second oldest and most succ
essful F1 team
by Grand Prix wins, McLaren Racing. In 2013 it was announced that after the last
year with
Mercedes contract with McLaren, Mercedes would be dropped and be replaced by Hon
da, who
McLaren had world championship wins in the past together. Mercedes have been sup
plying the
engines to McLaren since 1995.
Road Car Manufacturing
From 2003 to 2009, Mercedes were in a joint venture with McLaren Group to manufa
cture the
Mercedes-Benz SLR McLaren. At this time, Mercedes owned 40% of McLaren Group. Du
e to
Mercedes purchasing Brawn GP, a F1 team, Mercedes decided to sell their shares b
ack to Ron
Dennis, as McLaren would be their rival in F1.
Maybach
Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars division until
2013, when
the production stopped due to poor sales volumes.
PESTLE ANALYSIS
POLITICAL Factor Head of state. Duties are largely representative and ceremonial
. President:
Joachim Gauck Head of government and thus the executive branch of federal govern
ment.
Chancellor: Angela Merkel The Executives

POLITICAL Analysis The Bundestag The lower house in the German political system.
The
Bundesrat The upper house in the German political system The Judiciary The Feder
al
Constitutional Court acts as guardian of the constitution. The Lnder There are 16
Lnder in the
German political system
ECONOMIC Factor Germany has a social market economy. The 4th largest by nominal
GDP
in the world the 5th largest by PPP. GDP of $3.747 trillion and GDP growth of 1.
8%. Average
national unemployment rate of 6.8%. Approved a 50 billion economic stimulus plan
to protect
several sectors from a downturn 37 of the fortune 500 companies are headquartere
d in Germany.
ECONOMIC Factor Around 2/3rd of the world's leading trade fairs take place in Ge
rmany.
Leading exporter of machinery, vehicles, chemicals, and household equipment. Ban
king and
insurance are a pillar of the service sector. Important industrial sector are au
tomotive
manufacture, mechanical and electrical engineering and chemicals. Sector wise co
ntribution to
GDP Industry 29% Service 70% Agricultu re 1%
SOCIO-CULTURAL Factor Largest Religion: Christianity Predominant language: Germa
n
Wolfgang, Amadeus, Mozart's are three German dance forms. Famous for rye bread.
National
alcoholic drink is beer. Football is the most popular sport. UNESCO inscribed 38
properties in
Germany on the World Heritage List
SOCIO-CULTURAL Factor There are 240 subsidised theatres, hundreds of symphonic
orchestras, thousands of museums and over 25,000 libraries spread in Germany. Ge
rmans are
just argumentative. Passionate about lifestyle and politics. Corporate Culture:
Make
appointments for meetings in advance Dress formally in dark, conservative suits
Rank is very
important in business
TECHNOLOGICAL Factor Greatest strength is its automobile industry. Being 3rd lar
gest
automobile producer. World leader in the chemical industry. Considered a technol
ogical
heavyweight. Introduced prototypes of hybrid gasoline electric vehicles. Committ
ed to develop

renewable energy sources such as wind and solar power World class basic science
in fields
ranging from materials science to biomedicine.
ENVIRONMENTAL Factor Resources: 107 cu km of renewable water resources (86% are
used
for industrial purposes) Relies principally on fossil fuels as sources of energy
. 40% energy
consumption petroleum 30% consumption domestic coal deposits 17% consumption
natural gas 10% consumption nuclear energy
ENVIRONMENTAL Factor Air pollution resulting from industries & Emissions from co
alburning utilities. Acid rain is damaging forests. Pollution in the Baltic Sea
from raw sewage
and industrial effluents.
LEGAL Factor Law enforcing system at 3 levels: Federal, State & Local Laws are p
assed by
the Bundestag Influenced European Union law & by international law. 1,900 acts a
nd 3,000
statutory instruments. Business life is based on principle of competition. The l
egal stability
attracts foreign companies. Fair competition is safeguarded. Trademarks and pate
nts enjoy
strong protection.
SWOT ANANYSIS
High Mercedes brand equity as one of the finest and strongest brands. Drive train
technologies, interior features, and safety systems. Exceptional service quality,
an industry
landmark. Mercedes Benz is one of the most popular brand names in the world. Benz
is an
expensive car, thus has a limited target group. High maintenance cost and less mi
leage. Very
expensive spare parts.
Developing Intense hybrid cars and fuel efficient cars for the future. Tapping emer
ging
market across the world and building a global brand. Fast growing luxury automobi
le market
and increased income. competition. Increasing fuel prices. Improvement in public t
ransport.

GEOGRAPHIC: It refers to: Dividing a market into different geographical units su


ch as nations,
regions or cities: for example: When referring to the geographic segmentation of
the S class, it is
mainly targeted toward somewhat wealthy countries. The S class is sold worldwide
but its biggest
market is in the United States. CHINA The first Mercedes Benz ever sold in China
was an S Class
and especially for Chinese customers, the S Class has remained the model of mode
rn automotive
luxury. "The all new S Class set a new benchmark for the auto industry and contr
ibute strongly to
Mercedes Benz's future in this country."
INDIA Mercedes Benz India is all set to launch the new 2014 S Class in India, ho
wever dealers
have already started taking pre orders of the luxury car. Longer, wider and more
roomier than its
predecessor, the S Class aims at reclaiming the throne of worlds best car KARACHI Me
rcedes
Benz S class is also available in : Lahore Islamabad Rawalpindi Quetta Kallat Hyderaba
d
STRATEGY
DEMOGRAPHIC SEGMENTATION It refers to: Age, gender, income, occupation, ethnicit
y,
social class, family status, and education. Mercedes Benz S class demographic inc
ludes adults,
both male and female, mostly middle aged people. They are not very popular with
youngsters
since the brand is very expensive. The S class targets people of middle to high
incomes. Youth
are included in this group. People between 22 25 purchased Mercedes Benz. Merced
es Benz does
not produce low price vehicles. Mercedes products also target both males and fem
ales as they
design cars to fit both male and female specifications.
PHYSIOGRAPHIC SEGMENTATION Since the car is a Mercedes Benz cars are quite high.
Mercedes Benz Car Group's target customers are mostly rich. For the psychographi
c segmentation
the S class is commonly purchased among people who have a family, since its a SUV
. Some of
the reasons its customers prefer the S class is for its safety, and by being a l
uxury car it gives you
a certain status among society. BEHAVIORAL SEGMENTATION Behavioral segmentation
is
the most powerful approach because it uses actual consumer behavior or product u
sage to make
distinctions among market segments. When referring to the S class behavioral seg
mentation, it is
purchased among heavy users, its a car you can use on a day to day basis, whether
going to work

or to the grocery store. Most of the people that purchase the S class do it for
different reasons;
quality, beauty, speed, etc
The target market for the Mercedes Benz is middle aged people of middle to high
incomes. (2544 year old age )
Mercedes Benz Car target customers are mostly rich
.
Mercedes Benz does
not produce low prices vehicles because Mercedes Benz targets rich people.
The b
rand is not
popular with young people because it is expensive. Mercedes products also target
both males
and females as they design cars to fit both male and female specifications.
Mercedes Benz has adopted a positioning strategy as a manufacturer of highly rel
iable and safe
automobiles, resulting in a price premium relative to similar international comp
etitors.
outstanding service solutions related to those products. BRAND POSITIONING:
It t
argets
young buyers who love to drive. The car emphasizes design and style rather than
speed .Positioned
as a well engineered stylish car, its tagline is 'Vorsprung durch Technik' in Ge
rman, meaning 'Lead
by Technology'.
The new product of Mercedes Benz S class is Sedan (S550) for the upcoming year.
This sedan is
good enough to make buyers attracted towards the new Sedan. The S550 starts at $
93,825
including delivery, given all the improvements over the previous versions. Once
you start adding
other luxurious options, the price rises to over $130,000. Product Line Pricing
Pricing in the US
where all models will be 4Maticstarts at $140,425. Extras can add up to the car p
rice of around
$160,000 because they are more luxurious and comfortable, better looking and ful
ly equipped with
latest technological innovations that attracts the buyers especially the AMG ve
rsions which
represent a huge progress for the product line. Price Adaptation Strategy Merced
es Benz S class
is providing functional discounts to its dealers about $2,500 for pleasing and a
ttracting customers
towards their models.
Mercedes Benz S class organized a Fashion Festival in Brisbane . The goal of the
Mercedes Benz
Fashion Festival is to promote fashion and style, to increase awareness for our
local industry and
ultimately to increase sales. Mercedes Benz has also tried to enhance the reputa
tion of luxury and
durability of its cars by including the Mercedes AMG that produces high performanc
e engines

for luxury cars. Mercedes Benz wanted to reach their target audience throughout
their Facebook
advertising .As the Class S model was targeting younger drivers, Mercedes Benz so
it choose
Facebook as the ideal platform. Mercedes Benz has been using star power to send
a different kind
of message: Stars are bright, but most importantly, they are Mercedes Benz clien
ts.
Mercedes also conquer the online internet market with the launch of the exciting
multimedia
Mercedes Benz S Class configuration, interactive online films, and video podcas
t.
Advertisement: The advertisement for the Mercedes Benz S Class series automobile
uses several
effective devices. Initially, the lack of color gives the impression of a classi
cal and somewhat
elegant item. Mercedes do not need to expose customers to frequent advertisement
s. Theme they
use is very creative and it gives the viewer the perception that the name of Mer
cedes Benz speak
for itself. Sales Promotion: It is said by the Mercedes Company that on purchase
of every Benz S
class, the Company will donate $100 / vehicle to help provide fragile children w
ith medical
facilities which has a significant effect on the sales of Mercedes Benz S class.
Direct Marketing: :
Mercedes Facebook page is a main hub of interaction between the brand and its cus
tomers.
Customers and brand fans post on the walls, take part in discussions and share i
mages and videos
on the automakers page