Mercedes-Benz, a brand positioning overview

MERCEDES BENZ- AN OVERVIEW OF BRAND POSITIONING

Mercedes-Benz is a German automobile manufacturer, a multinational division of the German manufacturer Daimler AG. The brand is used for luxury automobiles, buses, coaches, and trucks. The headquarters of Mercedes-Benz is in Stuttgart, Baden-Württemberg, Germany.

Continuing to provide the comfort, performance, and safety consumers have come to expect from the brand, while also offering dramatic styling and innovative new features, it's no wonder Mercedes-Benz's models continue to captivate.

CURRENT POSITIONING-

Mercedes-Benz targets the market via Demographic,Socioeconomic and Psychographic segementations.

1. Under Demographics, it looks to target 30-50 years old with more than 20 “Classes” and  young city dwellers(25-40 years old) thanks to some restyled and modern cars (B, A, GLA-Classes).

2. Socioeconomic- Upper class: can afford the most high end cars (S, SL, CLS-Classes, etc.)Upper middle class: can afford bottom of the range and midrange models (A, B, SLK-Classes, etc.)

3. Psychographic- Succeeder: confidence, stability, strong goal orientation, material comfort; car choice based on prestige, status symbol, quality.

Current competitors, POD's and POP's-

The brand currently competes with the likes of BMW,Audi, Volvo, Ford etc. across global markets.

The competitive frame of references is the market in which a company, a brand competes. As BMW,Audi,Ford and Mercedes-Benz compete in the same premium cars market, they have the same competitive frame of references. That being said, in order to differentiate, they had to define a brand positioning strategy by identifying the Points of Parity (POPs) and the Points of Difference (PODs).

In order to legitimately compete in the high-end cars market, Mercedez Benz must have associations in common with their competitors (POPs). Indeed, to compete between each other and against other premium brands, Mercedes has to maintain a reputation for the quality of their cars: high quality build, finishing, design, motorization, etc. Plus they have to be associated with performance and efficiency; that is why these German giants take part in prestigious motorsport competitions: Mercedes is currently involved in Formula One through its racing team Mercedes AMG; BMW is involved in multiple motorsport competitions such as “Le Mans 24 Hours” and “Dakar Rally”. 

However, brands needs to develop distinctive attributes or benefits (PODs), so as to attract customers and have a competitive advantage over competitors.Indeed, Mercedes-Benz embodies elegance and precision better than anybody: the sleek, long lines and the radiator grill integrated into the front of its cars are some of its brand-defining features that seduce consumers. The “C-Class” is a perfect example. Safety innovation is another Mercedes’ Point of Difference: the carmaker pioneered a system able to detect imminent crash called “Pre-Safe” in 2002, and won a Safety Award in 2007 for 50 years of automobile safety innovation.

RESULTS OF CURRENT POSITIONING STRATEGY-

Demand for the flagship luxury S-Class line has surged 60 percent, and its E-Class models, CLA-Class Coupe, and GLA-Class SUV shook up the entry-level luxury market by attracting younger consumers. The timeless appeal of the Mercedes brand, currently summed up by its tagline "The best or nothing," is seductive the world over and appeals to drivers of all ages.

Sales rose 9.5 percent in the U.S. (Mercedes-Benz's largest market), demand has been revived in Europe, and the brand is closing in on competitors in China. (Statistics as of 2014).

IMPROVING THE POSITIONING

As previously noted, Mercedes has been on the receiving end of quite a bit of success with its current brand positioning strategy. Some would say that the way it has upheld its identity as well as continue to adapt to modern trends is simply perfect. So how to improve on perfection?

Perhaps a straddling strategy is in order(trying to satisfy multiple frames of reference) to further heighten its dominance in the market and differentiate itself from its competitors. Mercedes has mainly put their money on providing their target market with the feeling of sleekness, luxury and elegance. It has however delved a bit into safety innovations as well. However one aspect it has yet to put emphasis on is the 'racer's intuition'. This is when potential customers look forward to associate their vehicles with performance, speed and handling excellence. The irony is that Mercedes takes part in the Formula One racing series (the biggest automotive competition in the world) but yet does not correlate such racing attributes with their other product lines. If Mercedes did decide to enter this segment, they could advertise their new performance line based on their recent successes in the Formula One series and capture the youth market aka potential customers driven by the prospect of adventure (associating high speed with adrenaline rush).

One major drawback of undertaking such a step would be the diversification of resources from its original line of products. However, a reputed as well as rich company such as Daimler should not have much trouble funding a new product line.

 Indeed, continued innovation is also one mantra of Mercedes, and the brand also owes much of its recent success to continual innovation and its commitment to debuting new products and services. (Mercedes-Benz plans to roll out 30 new models by 2020.) Would be interesting to see how many or if any are advertised as performance driven vehicles.

Another setback could come from the fans of the brands who associate the brand with safety. Pushing from a mindset of safety, all the way to adrenaline charged adventure are certainly two ends of the spectrum.