mercedes-benz brand audit

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Mercedes-‐Benz Brand Audit By: Eyad Almasri

Mercedes-Benz Brand Audit

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Table of Contents

Company…………………………………………………………………….…………………………………………………………………………………… 3-‐4

Key Personnel…………………………………………………………………………………………………………………………………………………….. 5

Logo History……………………………………………………………………………..………………………………………………………………………… 6

Financial Data………………………………………………………………………………..…………………………………………………………………… 7

Annual Report……………………………………………………….……………………………………………………………………………………………. 8

Category and Competition………………………………………………………………………………………………………………………………….. 9

Products Within Category…………………………………………………………………………………………………………………………………. 10

Brand Analysis…………………………………………………………………………………………………………………………………………………… 11

Consumer Profile…………………………………………………………………………….………………………………………………………………… 12

Advertising and Marketing………………………………………………………………………………………………………………………………… 13

Media………………..…………………………………………………………………………………………………………………………………………. 14-‐15

Promotions………………………..…………………………………………………………………………………………………………………………….. 16

Internet and New Media…………………………..………………………………………………………………………………………………… 17-‐18

Brand Value…………………………………..…………………………………………………………………………………………………………………. 19

Research……………………………………..…………………………………………………………………………………………………………………… 20

Recommendations…………………………………………………………………………………………………………………………………………… 21

References…………………………………………………………………………………………………………………………………………………… 22-‐23


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Company

Mercedes-‐Benz is a German automobile manufacturer and a multinational division of the German manufacturer Daimler AG.

The headquarters is located in Stuttgart, Baden-‐Württemberg, Germany. The name first appeared in 1926 under Daimler-‐Benz, but

traces its origins to Daimler-‐Motoren-‐Gesellschaft's 1901 Mercedes, which is widely regarded as the first automobile. As part of the

Daimler AG Company, the Mercedes-‐Benz Cars division includes Mercedes-‐Benz and Smart car production. Mercedes-‐AMG became

a majority owned division of Mercedes-‐Benz in 1999. The company was integrated into DaimlerChrysler in 1999, and became

Mercedes-‐Benz AMG beginning on January 1st, 1999. Daimler's ultra-‐luxury brand Maybach was under Mercedes-‐Benz cars division

until 2013, when the production stopped due to poor sales volumes (René, 2008).

As Germany's automotive pioneer, Mercedes always introduces new models of cars. Recently under its brand “The

Best or Nothing,” Mercedes witnessed a record 14 percent increase in sales worldwide, with a 9.5 percent increase in the United

States (Mercedes-‐Benz's largest market) alone. The profits accrued from the E-‐Class models, CLA-‐Class Coupe, and GLA-‐Class SUV

models were recently boosted, as a result of attracting younger consumers. Mercedes has also observed a notable increase in

demand is the S-‐Class line that has gone up 60 percent. The brand also owes much of its recent success to continual innovation and

its commitment to new products and services, as the company plans to release 30 new models by 2020.


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Company (Continued)

“The Mercedes-‐Benz brand was born under a lucky star”. The current trademark comprising a three-‐pointed star in a laurel

wreath was created in 1925 – in time for the merger between Daimler-‐Motoren-‐Gesellschaft (DMG) and Benz & Cie., which together

became Daimler-‐Benz AG in summer 1926 (A star is born, 2014).

The three-‐pointed star now used as the Mercedes-‐Benz emblem is one of the most recognizable brand icons in the world.

According to company lore, Daimler founder Gottlieb Daimler first used the three-‐pointed star to mark his home's place on a picture

on a postcard he mailed to his wife. He told her the star would someday shine over his factories. His sons purportedly suggested the

use of the star—with one point each standing for the engines the company would build for land, sea, and air—in the early twentieth

century after the success of the first Mercedes car and before the merger with Patent Motorwagon (Encyclopedia of Major

Marketing Strategies, 2013).


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Key Personnel


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Logo History

(Mercedes-‐Benz Three-‐Pointed Star, 2014)


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Financial Data


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Annual Report


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Category and Competition

The primary method of distribution in this industry is by ships, trains, and trucks. Global production of motor vehicles of

passenger cars is forecasted to be 72.2 million in 2014 (Statistics and Facts about the Global Automotive Industry, 2014).

The major competitors of Mercedes-‐Benz are BMW, Audi, and Volvo, as they provide similar luxury features at comparable

prices. The industry leaders (or major players) of the automotive industry are currently Toyota, Daimler AG, General Motors, Honda

Motor, and BMW.

One of the major seasonal factors in the automotive industry that increases sales is when a new model comes out. People

usually wait until a new model is out and purchase the previous model for a cheaper price. Regional factors depend on the location

and since Mercedes-‐Benz is a global company, there are no specific factors. The most common legal issue in the automotive industry

is the safety of the vehicle. Car manufacturers are held liable for any injuries that happen due to a defect.


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Products Within Category

According to The Wall Street Journal, Mercedes-‐Benz market share sales in November 2014 were 2.9%. Mercedes-‐Benz

reported November of 2014 as the highest monthly sales in its history for a total of 34,578 units sold, as compared to 34,376 units

the same month last year (Davis, J., 2014).

Mercedes-‐Benz has launched its new C-‐Class, S-‐Class, and the GT S in 2015. It also revealed the new GLE-‐Class and the

Mercedes-‐Maybach that will be out in 2016. It is working on all new models to try and attract and satisfy the different consumer

tastes. This will allow Mercedes-‐Benz to achieve higher sales and be more appealing.

One of the very interesting innovations of Mercedes-‐Benz in its new passenger cars in 2015 is the car perfume that is located

in the glove compartment and will always keep a fresh smell without sticking on clothes. Another new innovation in the new S-‐Class

is the massage chairs that will keep everyone in this luxury sedan as comfortable as it gets.


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Brand Analysis

As of December 31, 2014, Mercedes-‐Benz revenues are 162 billion, which places it in second place after Toyota’s 248 billion

in sales. Also, Based on a survey of executives, directors, and securities analysts of companies within their own industry on eight

criteria: innovation, financial soundness, employee talent, use of corporate assets, long-‐ term investment value, social responsibility,

quality of management, and quality of products/services ranked the world’s most admired Motor vehicle companies in 2013

(World's Most Admired Motor Vehicles Companies, 2013)

In recent competitor news, BMW is recalling 223 of its high-‐tech i8 plug-‐in hybrids from the 2014 model year because the gas

tank might leak, according to a report posted on the National Highway Traffic Safety Administration website. The automaker said the

problem was caused by an ''inadequate weld of the bolt to the fuel tank'' needed for the turbocharged, 1.5-‐liter 3-‐cylinder engine

that powers the i8's rear wheels. A BMW spokesman could not immediately be reached for comment, so it was not clear how the

problem was discovered or whether any fires had been caused by the defect (Jensen, C., 2014)


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Consumer Profile

Although the auto industry remains highly competitive, luxury brand vehicles offer superior sales growth and return. These

brands appeal to a broad age range, and the key 35-‐64 age group is set to continue growing in Europe and the United States

(Cheetham, S. B., & Preston, L., 2003). A vehicle can be purchased at the dealership as well as the online website that can provide all

the specs about a car. When it comes to brand awareness and recall, Mercedes-‐Benz’s name and logo are stuck in our minds.

Statistics have shown that the highest sales month is November. There is no specific purchase cycle for Mercedes-‐Benz since

they are a high-‐end luxury brand. The brand also excels in customer experience and satisfaction. A new campaign called "Mercedes

me" bundles benefits and services like "Move me," "Connect me," and "Assist me" on one digital platform. This strategic move to

create a personalized world around the owner/driver demonstrates that Mercedes understands today's complex experience-‐based

economy and is well positioned to create an ecosystem around each customer. With a strong customer-‐experience strategy, a

world-‐leading position, contributions to clean mobility, and innovations like an experimental self-‐driving car in development,

Mercedes-‐Benz appears to have a clear vision of its future, and is moving purposefully toward it. (Mercedes-‐Benz -‐ Best Global

Brands – Interbrand, 2014)

Mercedes-‐Benz customers are loyal to this brand. In the US, Mercedes-‐Benz dealerships offer better customer service than

its competitors and therefore attract other brand users and it also makes it hard for its existing customer to switch. Lately,

Mercedes-‐Benz has been trying to attract a younger demographic and promote its cheaper models.


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Advertising & Marketing Communications

Mercedes-‐Benz promoted its new A-‐Class via a YouTube trailer and offered prizes for socially engaged viewers by spotting

hidden clues in the ads. Twitter posts from the #YOUDRIVE hash tag were monitored to select a winner for a limited edition,

personalized movie poster. This campaign engaged socially active audience and the purpose was to appeal to younger, modern

audience (Carter, M., 2012). With that, Mercedes-‐Benz is trying to enter the competition within the younger demographics with

BMW and Audi. Mercedes-‐Benz is also known for organizing family and sporting events to build brand loyalty in young children.

Turning promises into reality is a major matter for Mercedes-‐Benz. It announced the goal of offering self-‐driving vehicles by

2020 (Self-‐driving cars, 2013).


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Media

As visible in the figures, advertisement spending for cars and light trucks is higher than any other category. The most common and

most effective medium for advertising in the automotive industry is still broadcast TV. Advertising efforts in this industry have also

shifted more towards ecommerce and therefore less is spent on advertising in 2013 than 2004.


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Media (Continued)

The figure below shows the number of social media mentions compared to advertisement spending between Toyota and

Mercedes-‐Benz. Since Toyota is the top selling car brand in the world because of its affordability, the launch of the all new Corolla

has been a major story on social media. Mercedes-‐Benz tried to attract viewers by showing a famous model, Kate Upton, washing

the car, but that backfired and the results were not as expected. The social media mentions were skewed towards Kate and the car

being advertised did not get the attention expected.


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Promotions

Promotions used in the automotive industry are usually TV commercials, billboards, and online. For example, Mercedes-‐Benz

made a TV commercial called “winter event” where Santa is sending out the “naughty and nice” cars. This commercial was made to

change the image of what a Mercedes is and that it’s not only for older people who are always calm, but it’s also for young and

“naughty” people.


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Internet and New Media

The official website for Mercedes-‐Benz that serves North America is mbusa.com (the website of the parent company is

daimler.com). Its primary purpose is to sell vehicles, manage financing options, redirect customers to service centers, and update on

models and concepts and offers.

Most sales are done in person at local dealership; however, mbusa.com does offer online sales in which a customer can select

certain features (leather, sunroof, exterior color) and purchase a car online which is then sent for pick up at the dealership.

Mercedes social media activities

include encouraging engagement,

promotion of new and existing cars

and miscellaneous item. Mercedes

will also display picture and video

advertisements in its social media

platforms.


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Internet and New Media (continued)

Instagram Page Twitter Page Facebook Page


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Brand Value

In 2014, the Mercedes Benz brand was ranked #10 (ranked #11 in 2013) with a brand value of $34M for an increase in brand

value of 8% over 2013 ($31M in 2013). (Best Global Brands, 2013).


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Brand Exploratory

I designed a survey that was taken by 11 respondents on how familiar they are with Mercedes-‐Benz, what brand comes to

mind when thinking of a luxury vehicle, how often they’ve heard of people talking about Mercedes-‐Benz, where advertisements

were seen, likeliness to recommend this brand to a friend, and how much this brand is liked. Results showed that 63.64% are

familiar with Mercedes-‐Benz.

Not all respondents thought of Mercedes-‐Benz when a luxury vehicle was

thought of. Only five thought of Mercedes-‐Benz as a luxury vehicle and other

mentioned brands were Audi, BMW, Ferrari, Porsche, Rolls Royce, Aston Martin, and

Bentley. All respondents have heard people talking about Mercedes-‐Benz extremely

often in the past year. Results for advertisements are shown in the figure to the right.

TV commercials, billboards, magazines, newspapers, and online are the main tools

where the respondents have seen advertisements for Mercedes-‐Benz in the past year.

Of the 11 respondents, 70% would recommend this brand to a friend and only 10%

would not. Finally, 60% like Mercedes-‐Benz a great deal and 40% like a moderate

amount.


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Recommendations

Mercedes-‐Benz exemplifies prestige and luxury and has high brand awareness. They are also regularly setting the bar for

what has come to be expected in a luxury car amongst competitors. Mercedes has an opportunity to increase car ownership in its

Asian market and must capitalize on that.

A new trend in car manufacturers is the concept of going green. Unfortunately, Mercedes-‐Benz is not known for such

vehicles and if this trend continues, it might lose significant market share. Therefore, it would be wise for them to consider investing

in research and development into the concept of their own hybrid cars, and possibly revamp existing cars, making them more

efficient and advertise them as such. Product recalls may affect the company’s image negatively and cause a decrease in market

share.


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References

Olma, René. (2008, April 17). The history behind the Mercedes-‐Benz brand and the three-‐pointed star | Daimler Global Media.

Retrieved December 15, 2014

The Board of Management of Daimler AG. Retrieved December 16, 2014, from daimler.com/company/corporate-‐

governance/bodies/board-‐of-‐management

A star is born. Retrieved December 16, 2014, from daimler.com/dccom/0-‐5-‐1279050-‐1-‐1279432-‐1-‐0-‐0-‐0-‐0-‐0-‐0-‐0-‐0-‐0-‐0-‐0-‐0-‐0-‐0.html

Mercedes-‐Benz." Encyclopedia of Major Marketing Strategies. Ed. Matthew Miskelly. Vol. 3. Detroit: Gale, 2013. 261-‐264. Gale

Virtual Reference Library. Web. 14 Dec. 2014

Statistics and Facts about the Global Automotive Industry, (2014). Retrieved December 16, 2014, from

http://www.statista.com/topics/1487/automotive-industry/

Davis, J. (2014, December 5). Historical Month for Mercedes-‐Benz. Retrieved December 16, 2014

"World's Most Admired Motor Vehicles Companies, 2013." Business Rankings Annual. Ed. Deborah J. Draper. 2014 ed. Detroit: Gale,

2014. Business Insights: Essentials. Web. 15 Dec. 2014.

Jensen, C. (2014, December 9). BMW Recalls i8 Hybrid for Gasoline Fire Risk. The New York Times. Retrieved December 15, 2014.

Cheetham, S. B., & Preston, L. (2003). Consumer: European Autos: Premium-‐Brand Returns Are Set to Remain Strong. Black Book -‐

The Long View: 2003 Edition -‐ European Perspectives, 93-‐97

Mercedes-‐Benz -‐ Best Global Brands -‐ Interbrand. Retrieved December 16, 2014 from bestglobalbrands.com/2014/mercedesbenz


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Carter, M. (2012, October 10). Mercedes-Benz Adds Twitter Control To Latest TV Campaign. Retrieved December 16, 2014, from

http://www.fastcocreate.com/1681734/mercedes-benz-adds-twitter-control-to-latest-tv-campaign

Self-‐driving cars: Turning promise into a reality. (2013). Automotive News, 88(6591), 12

mercedes-benz brand audit

Documents

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mercedesbenz emblem

brand analysis

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mercedesbenz cars division

logo history mercedesbenz

daimler ag company

recognizable brand icons