Targeting position itself as the best luxury

Targeting
the millennial audience was a huge step for Mercedes Benz to expand their
markets. Mercedes-Benz used social media platforms such as Facebook, Twitter,
YouTube and Instagram to increase awareness about their product amongst the new
segment. They also included a Super-bowl ad featuring Usher and Kate Upton to
connect with younger generations (Zoeller, 2017) without stepping out
of the brand image that they created for themselves by providing a sport
package, which offers high performance coupled with luxury. The company is
introducing “Build your own GLA” which allows the users to create their own
versions of car. Users can choose from different components such as colours,
roof, wheels, grill options (Digiday). Their user generated
Instagram account was also an innovative marketing strategy to involve
millennials with the brand of Mercedes.

By
investing in new acquisitions as mentioned above the company is also entering
the business markets. Now they are focusing their research on electric n eco-friendly
cars. The Mckinsey report on automobile revolution report (Paul Gao,
2016)
 says that the upcoming trends in the
auto industry are the electric vehicles and car sharing – Mercedes is way ahead
of everyone and have acquired SMART (electric car segment) and  car2go (car sharing business where people can
experience Mercedes in just 70$ per day). By doing so the company is trying to evolve
with the upcoming trends in the industry.

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Recommendations

·       Focus
on penetrating in emerging markets going forward as they are the sleeping
giants in terms of revenue. While trying to enter emerging markets the company
should be careful of diverse cultures in those regions. They should portray
their product in such a way that it appeals to the costumers’ culture but also
keeps its brand image intact.  Therefore
the company should come with some marketing strategy as to involve brand
ambassadors that attract that foreign region’s values and traditions.

·       Mercedes-Benz
should make further efforts to enhance its value proposition for the newly
targeted customer segment of younger cohort, especially because BMW has resolved
to position itself as the best luxury car. Advertising methods should include
the emerging trends such as virtual 3D tours which could give a close to real
feel of being in a Mercedes-Benz even while sitting at home.

·       As
predicted in a report on automobile revolution (Paul Gao, 2016), future trends are more inclined towards
community based ride-sharing, therefore Mercedes-Benz must go further in its
‘Car2Go’ concept of tiny Smart cars and target the growing segment of customers
who are concerned about the environment. The growing trend where more and more customers
don’t really need the car but enjoy commuting in a eco-friendly luxury car will
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