moriiiiiiiiiiiiiii final bmw and mercedes
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8/6/2019 Moriiiiiiiiiiiiiii Final Bmw and Mercedes
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The Race Is On Between BMW and Mercedes Benz
AMIR HABIBI 1091200086
MORTEZA TABASSI 1081200585
MARKETING MANAGEMENT
GROUP ASSIGNMENT
Lecturer:
DR. ABU BAKAR BIN SADE
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The market share of National andhe market share of National andNON-National cars in Malaysia
2007 2008
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Passenger cars market share
in Malaysian Malaysia
6.8%
42.4%7.3%
32.6%
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THE BEST TWO MODELS BETWEEN LUXURY CARSAS A SYMBOL OF WEALTH AND EXTRAVAGANCEACROSS MALAYSIAN SOCITY
MERCEDES-BENZ
.
BMW 0.5%
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Market Trend
Changing Consumer Behavior
Increasing Purchasing Power
Chan in of Culture/Lifest le
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SWOT AnalysisWOT AnalysisWOT AnalysisWOT Analysis
• The overall evaluation of a company’sperformance.
• It involves monitoring marketingenvironments.
Internal – strength & weakness
External – opportunity & threat
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Strengthstrengthstrengthstrengths
• Brand e uit – S ort look attractive
design and superb car handling.
oriented engine.
• Price is comparative lower than Mercedes-
Benz.
• Complimentary of BMW Service + Repair
Inclusive for 3 years.
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Weaknesseseaknesseseaknesseseaknesses
•
.
to repair the engine.
• Limited dealers and service centers.
•Less aggressive in on-line promotion.
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Opportunitiespportunitiespportunitiespportunities
• -
of younger successful executive with betterpurchasing power.
• Innovator and creative designer.
• Environmental practices – introduction of
s ags p ser es se an a runson liquid hydrogen.
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Threatshreatshreatshreats
•
(Jan~June 2007) to 2.4% (Jan~June 2008)*.
• Price rising of fuel oil.
• Over-emphasized of the brand as the
paragon of performance driving – “The
* Malaysian Automotive Association (MAA) 2007/2008 Passenger Car Registratio
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Strengthstrengths• Brand equity – Reliability and safety
Strengthstrengths
.
• Strong brand loyalty among successful and
wor y us nesspersons.
•
2003.
nationwide - Mercedes-Benz Service
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Weaknesseseaknesses
•
Weaknesseseaknesses
•
engines.
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Opportunitiespportunitiespportunitiespportunities
•
(Jan~June 2007) to 3.8% (Jan~June 2008).*
• Back up by skillful technician from the
Apprentice Training Centre – 450 traineesave gra uate .
–the nearest showroom.
* Malaysian Automotive Association (MAA) 2007/2008 Passenger Car Registratio
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Opportunitiespportunitiespportunitiespportunities
Mercedes-Benz Malaysia Sdn BhdLevel 48 & 49, Menara TM
a an anta a ru59800 Kuala Lumpur.Malaysia.Tel: (+603) 2246 8888Fax: +603 2246 8899Website : www.lowemotors.mercedes-benz.com.my
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Threatshreats
•
Threatshreats
cars esp. BMW.
• Brand barrier – less attractive for young
and successful executive.• Price rising of fuel oil.
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Tar et Market
According to our research anddevelo ment de artment our TARGETMARKET is safety, handling, elegant,
luxurious. Companies such as BMWan o t e r est w en t eychoose their target markets cautiously
programs.
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Segmentation
We divide our customer into several parties:
The men and women a e between 20-34 who are lookinfor luxury and indulgence car. BMW series 6, X6, Z3, Z4,Z8, Z9… And BENZ series C, CLS, SLK, SLR…..
The men and women age between 35-60 who aresearching for safety, luxurious, guaranty, and handling
and after sale service.
The group of people who earn above 4000 $ per month.
BENZ and BMW. For instances BMW series 7, 6, 5 andBENZ series S, ML, E
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Question 1
Who are involved in the decision rocess to urchase luxur car
What role does each participant play?
Reference: http://www.udel.edu/alex/chapt6.html
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Purchasing Decision Processesurchasing Decision Processes
Need recognition
Search for informationPre-purchase
Pre-purchase evaluation
of alternatives
PurchasePurchase
ConsumptionPost purchase
evaluation
Reference: http://www.nssa.us/nssajrnl/24_1/10-Moser-CombatingPost-PurchaseDissonanceOnline.htm
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Factors Influences To Purchaseactors Influences To Purchase
Cultural factors
Social factors
Personal factors
Reference: http://www.udel.edu/alex/chapt6.html
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Factors Influences To Purchaseactors Influences To Purchase
Cultural factors Cultural factors
fundamental determinant of a person’s fundamental determinant of a person’s wants and behaviors wants and behaviors
•• it acquires values, perceptions,it acquires values, perceptions,
through family or other institutions through family or other institutions
organization image, upper organization image, upper management management
Reference: http://www.udel.edu/alex/chapt6.html
must drive a luxury car must drive a luxury car
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Factors Influences To Purchaseactors Influences To PurchaseSocial factorsSocial factors
•• Consumer wants influenced by opinionConsumer wants influenced by opinionleaders eg. reference groups, socialleaders eg. reference groups, social
c assesc asses
•• Reference groups influence on values andReference groups influence on values andattitudes eg. advice about brand categoryattitudes eg. advice about brand category
••
similar social ranksimilar social rank
Reference: http://www.udel.edu/alex/chapt6.html
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Factors Influences To Purchaseactors Influences To PurchasePersonal factorsPersonal factors
•• demographics factors eg. age, genderdemographics factors eg. age, gender
•• situational influences eg. price basedsituational influences eg. price based
offers during purchaseoffers during purchase
•• personal desires eg. occupation, incomepersonal desires eg. occupation, income
statusstatus
•• psychological factors eg. motives,psychological factors eg. motives,
Reference: http://www.udel.edu/alex/chapt6.html
,,
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Users
o es n decision making
o es n decision making
Approvers Influencers
Deciders
Reference: http://www.udel.edu/alex/chapt6.html
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What is a luxury car ??What is a luxury car ??
Is a $50,000 Ford a luxury? What about a $20,000 BMW?
It is probable that no strict financial criterion can be applied.
Rosecky and King (1996)
Unique characteristics :
- consistently premium quality
- craftsmanship
- recognizability- exclusivity
- reputation
- distinctive variation
- a c ear re ec on o persona y, va ues, an er age
- association with a country of origin that has an especially
strong reputation as a source of excellence in the relevant product
”
(Nueno and Quelch, 1998, pp. 62-63).
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The Penang Island Jazz Festival presented byDaimlerChrysler
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Production a
Table 1 Luxury brands of the top 12 auto manufacturers
Company (parent, alliance, or group) m on,2007)
Origin Luxury brands
General Motors 11.7 USA Cadillac, Hummer, Saab
Ford 7.8 USA Aston Martin, Jaguar, Land Rover,Lincoln, Volvo
Toyota 7.5 Japan Lexus
Renault-Nissan 5.9 France & Infiniti
VW Group 5.0 Germany Audi, Bentley, Bugatti,Lamborghini
Daimler-Chrysler 4.8 Germany & Mercedes-Benz, Maybach
PSA 3.3 France -
Honda 3.2 Japan Acura
Hyundai-Kia 3.1 South Korea -Fiat 2.0 Italy Alfa Romeo, Ferrari, Maserati
Mitsubishi 1.5 b Japan -
BMW 1.3 b Germany BMW, Rolls-Royce, Mini
Notes : a PriceWaterhouseCoopers (2007); b International Organization of Motor Vehicle Manufacturers (2007)
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ANALYSISANALYSIS
MERGER
Date 6 May 1998, new DaimlerChrysler company valued at $75 billion.
OBJECTIVE• lower costs through volume purchases
• slashed redundancies
• Daimler-Benz’s key advantages in quality, innovation & exclusivity
• Chrysler’s success on size, rapid decision-making, and flexibility
(Smith, 1998).
OUTCOME
Blending of luxury and mass-market automobile brands in one corporate
,
potentially fatal brand corrosion.
Consumer perceptions…..
Luxury brands vs. mass-market brand (commonality)
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COMPETITIVENESSCOMPETITIVENESS
Global Marketing
- Self-contained markets - linked global markets
- Product life-cycles shorten / global competitors contest
Brand reinforcement
- Innovations
- Consistency
Analyzing needs & trends
- Global vs. local (economic, social-cultural, political-legal,technolo- Market evolution
Marketing strategies revival
- . .
current profitability- Systematic program of culture change
[ “the best or nothing” – first espoused by Gottlieb Daimler more than a“ ”cen ury e ore – was rescr p e o e es or e cus omer
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Question No.2
Based on product attributes, what wouldyou suggest to Mercedes and BMW fordeveloping appropriate positioningstrategies?
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Product Attributeroduct Attribute
•Feature1
•Function2
• ene s
•Use4
•Quality5
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Positioning Strategiesositioning StrategiesDifferentiation Cost
Leadership
1. Product 1 Cost ControlDifferentiation
2. Service
Differentiation
2. Scale- Efficient
Plant
3. PersonnelDifferentiation
4. Image
3. Efficient Value
Chain
erent at on
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Product Differentiationroduct Differentiation
•Focus on innovation technology
Example: The “Engines” of Tomorrow
•Focus on safety
Example: 1)Intervehicle communication using
wireless LAN networks2)Accident research unit
•Expand product range
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Service Differentiationervice Differentiation
•Tailor comprehensiveprogramme or women
driver
•Traffic safety programmed
young drivers.
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Personnel Differentiationersonnel Differentiation
•Hiring and training better people
•Maintain relations to internationally recognized
scientific institutions, colleges and universities
worldwide
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Image Differentiationmage DifferentiationUltimate innovation safet drivin machine
•Advertisement
•Product Placement
•Sponsorship
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-Positioning Strategy
Strengthen Partnership•Duty Structure under Common EffectivePreferential Tariff (CEPT) Scheme for AFTA
•Increase price competitiveness
Expand production capacity•Increase ASEAN market exposure
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-Positioning Strategy
Increase Product Range •Target different age group (approximately33% from 20-50 age group in Malaysia)
•Example: Mercedes-BenzC class and E class
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-Positioning Strategy
Product Positioning •Explore future automobile thru R&D
•Example: Mercedes Bionic Car,economical and environmentally friendly
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ummary
• ,
(+32% in 2007 vs. 2000) compare with Mercedes(-5% in 2007 vs. 2000)
• Malaysia Market Share for Mercedes is still
-, – Consumer Perception
– Market Positioning
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References
http://www.stealingshare.comhttp://www.udel.edu/alex/chapt6.htmlhttp://www.nssa.us/nssajrnl/24_1/10-Moser-CombatingPost-
.www.livemint.com/MercedesBenz-BMW-fight-it-ou.html
www.ibscdc.org/Case_Studies/Strategy/.../CCA0008.htmwww.benzworld.org/1346619-2007-audi-rs-4-2008-mercedes.html
. . .www.carpages.co.ukhttp://www.autospies.com/news/Audi-BMW-and-Mercedes-Benz-s-China-Sales-Soar-in-September-Audi-Remains-Market-Leader-48574/
- - - - -. .benz-three.htmlwww.globalinsight.com/SDA/SDADetail17458.htmwww.thetruthaboutcars.com/mercedes-benz-bmw-in-ev-talks-with-magna-
www.resources.bnet.com/topic/marketing+and+mercedes-benz.html
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