The History of Mercedes Benz
The history of Mercedes Benz dates back to 1897 when Emile Jellinek went to Daimler-Benz proposing an automobile with the engine at the front, and outlining a type of racer that he wanted, ordered 36 of them. In return Jellinek asked Daimler to name the car after his daughter, Mercedes.
In an industry that is competitive and dynamic such as the car industry it is essential companies have a full understanding of their audience in order to convoy the right message and also adapt to changes in the external environment.
Mercedes Benz has traditionally used “aggressive promoting”, using advertising such as TV, print, billboards as well as online marketing (MBASkool, 2021). The push towards online marketing has been evident in the UK since 2015. They have been keen to adopt a stronger digital presence in order to reach the current segments of the market. Anders Sundt Jensen (VP for brand communications) stated that Mercedes was investing 50% of the total marketing budget into digital in the UK (MarketingWeek, 2015).
Promotional campaigns have carried the clear message of safety, innovation and quality, which for years has differentiated Mercedes from many of its competitors (Daimler, 2018). However, Mercedes has made a noticeable shift in recent times to a more lifestyle centered approach (UKEssays, 2015). This is due to its target market expanding, which has led to the product line growing with new models such as the A-Class being produced with features that lend it to driving in an urban environment (Mercedes-Benz, 2008).
In order to adapt and target new customers it was important that Mercedes was not isolating itself. Boden N.H. (1984, p. 8) identified the importance on understanding a group’s behavior and having the ability to foresee changes that “develop in a dynamic world”. Mercedes has identified this and adapted their message as well as expanding their product range.
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| The famous Mercedes Benz logo, the 3 pointed star represents land, sea and air, the 3 environments Mercedes wanted to dominate (Mercedes Benz Portland, 2020). |
Promotion in the Mercedes Benz Marketing Mix
“A promotional mix should be designed to show your target audience the benefits, features, and values of the products or services you offer. This helps differentiate you from your competition and drive sales.” Lake (2019).In an industry that is competitive and dynamic such as the car industry it is essential companies have a full understanding of their audience in order to convoy the right message and also adapt to changes in the external environment.
Mercedes Promotional Strategy
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| The Mercedes range, developed around different lifestyle needs. (Evans Halshaw, 2022) |
Promotional campaigns have carried the clear message of safety, innovation and quality, which for years has differentiated Mercedes from many of its competitors (Daimler, 2018). However, Mercedes has made a noticeable shift in recent times to a more lifestyle centered approach (UKEssays, 2015). This is due to its target market expanding, which has led to the product line growing with new models such as the A-Class being produced with features that lend it to driving in an urban environment (Mercedes-Benz, 2008).
“Engineered Like No Other Car in the World”, McCaffrey & McCall (1973).
This slogan summed up the traditional Mercedes promotional strategy. A place centered approach with a message on the safety, luxury and precision engineering of its cars, which appealed to a premium market (UKEssays, 2018). However, Warner identified a potential problem with this kind of approach stating, “Mercedes is considered an exclusive luxury car for white males which tried to broaden its appeal with value prices and new products,” (Brandweek, 1994). Due to increased competition in the luxury car industry this view has potentially led to Mercedes losing out on key segments of the market which they can no longer over look due to changes in buying habits over the years.In order to adapt and target new customers it was important that Mercedes was not isolating itself. Boden N.H. (1984, p. 8) identified the importance on understanding a group’s behavior and having the ability to foresee changes that “develop in a dynamic world”. Mercedes has identified this and adapted their message as well as expanding their product range.
The Mercedes A Class advert showed a clear effort
to target new segments of the market.
How has Mercedes Adapted its Promotional Strategy?
“Sacrifice Nothing” (1992).
From 1992 the change in slogan marked a change in marketing policy, which was brought on by broadening of the market, with new models released such as the A Class for the low end market and E Class for the mid-size luxury cars. Mercedes Benz has evolved its promotional strategy in line with its expansion of target markets, which now includes 25- 45 year old customers in addition to its initial targets the baby boomers (Arica, 2020).Reinventing Mercedes Benz
“Mercedes is attempting to reinvent itself, to evolve from a company long defined exclusively by its gas-guzzling luxury sedans and sports cars. The reborn Mercedes will offer a broader, more complete line of vehicles. The rapidly changing, more complex, higher risk luxury segment Mercedes-Benz, therefore, has to gear itself for a metamorphosis into a company known for value and a diversity of vehicle concepts rather than for the prestige of the three-pointed star.” Totzauer (1993). |
| Nicki Minaj fronting the Mercedes A-Class campaign (HipHopDx, 2018). |
Products are now promoted around customer’s lifestyle needs, shifting away from the message purely about luxury and precision engineering. Mercedes division chief Dieter Zetsche (2007) stated that Mercedes was, “looking to open up new Niche markets” with its new models (Mayne, 2008). This has meant that Mercedes has had to adapt its campaigns to effectively target the right segments of the market, often using different styles of advertisement depending on the car model.
The Just Like You campaign that Mercedes launched for the A Class is an example of how the company has changed its message to suit the audience. Mercedes used Female US Rapper Nicki Minaj to front the campaign that appeared on TV, print and online. It shows how the car is unique, suited to the urban environment and places a lot of focus on living in the digital era and understanding the customer’s needs (Arica, 2020).
The Just Like You campaign that Mercedes launched for the A Class is an example of how the company has changed its message to suit the audience. Mercedes used Female US Rapper Nicki Minaj to front the campaign that appeared on TV, print and online. It shows how the car is unique, suited to the urban environment and places a lot of focus on living in the digital era and understanding the customer’s needs (Arica, 2020).
The Power of the Mercedes Brand
There is still however a strong emphasis placed on the Mercedes brand through its distinctive logo. Mercedes has still held on to some of its traditional values which represent high quality, safety and confidence in the consumers mind. Ola Källenius, Chairman of the Board of Management at Mercedes-Benz stated in 2020 that they, “intend to build the world’s most desirable cars”, which play to the strengths of its luxury brand image while building on the product. (PRNewswire, 2020).This mix between promoting a strong brand image along with high quality technology which appeals to a younger audience is again evident when promoting the EQC. This is their first fully electric SUV which features performer The Weeknd. The advert illustrates the heritage of the company through a montage. At the end of the advert when asked if he was driving an electric car., The Weeknd replies, “I drive a Mercedes” (Levine, 2019). This is reinforcing the message that Mercedes is a powerful brand built on a history of being innovative and excelling in the development of cars over the years.
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