Presented by: Averi, Matt, Razz, Reggie & Sean

CLA-Class

Agenda

I. Product Introduction II. Strategy III. Market Analysis IV. Recommendation V. Q&A

CLA-Class Introduction

https://www.youtube.com/watch?v=fKGQvvDH8bE

Product Description

https://www.youtube.com/watch?v=WKGCNZImHRQ&feature=youtu.be

https://www.youtube.com/watch?v=Ix_80t0QItQ

Super Bowl XLVIII (2014) Commercial

336111 Automobile ManufacturingThis U.S. industry comprises establishments primarily engaged in (1) manufacturing complete automobiles (i.e., body and chassis or unibody) or (2) manufacturing automobile chassis only.

441110 New Car DealersThis industry comprises establishments primarily engaged in retailing new automobiles

New Car Sales Dynamics

Floor Plan

Mercedes-Bens Manufacture

Mercedes-BensDealer

Invoice Dealership’s Bank Mercedes-Bens

Manufacture

Mercedes-BensDealer Window Sticker

Financing

Mercedes-Bens Financial or Customer’s Choice

Lease or Buy

Mercedes-BensDealer Parts & Service

36 month lease (shorter and predictable time for next purchase) Purchase 5 yrs. or longer

Source: Daimler AG

In a world where 2 percent of the population controls the world’s wealth, a firm cannot expand market share by catering exclusively to that 2 percent

How many people can afford a $40,000 vehicle?

$718.75 per month with 0 down (3%)

$628.90 per month with $5,000 down (3%)

Average Age: 40

Strategic Challenges

Source: Bankrate.com

New Market Segments

Source: Euromonitor

Demographics Psychographics

Behavioristics Geographics

Life stages

October 2014 Sales

Source: Auto World

Recommendations

Increase in target advertising and strategic positioning to eliminate barriers (brand awareness vs. purchase intention; cost of ownership; overall brand image)

Create an emotional connection with young consumers

Increase in cause related marketing

Thank You!

Questions…