Name: Rohan BharajPRN: 15020841046

Mercedes Benz

Summary:

Mercedes Benz is a German automobile company under the Daimler Group. It was of the first few foreign automobile companies to enter India in 1994. Mercedes was the king of the premium segment for many years until Audi and BMW entered India and changed the dynamics of the premium automobile segment in India. Mercedes went from being number one to number three behind Audi and BMW in the sale of premium cars in India.

What does Mercedes convey and how does it do it?

Mercedes has always projected itself as a super-premium brand for the elite crowd of the country. They have used very niche channels to advertise rather than advertising on TV. Through all the marketing activities that have been done, they have always tried to convey that it is a matter of pride and prestige to own a Mercedes. Before the entry of Audi and BMW, they had models starting from 35 lakhs. Their target market was adults that are working at managerial and CXO level positions and people who had their own huge business. But now due to increased competition, changing business dynamics and rising aspirations and purchasing power of the people in India, they came up with A-Class and B-Class models that are priced starting 25 lakhs. These models were introduced to target the youth of the country that want to up their standard of living and are willing to push their budget up to get something as exclusive as a Mercedes. On the other hand, they also introduced AMG engines for all their models and completely revamped their look to give a sportier finish in order to attract the young and successful business people. Thus, from being a car for the adults they have tries to change their image as a sporty and trendy car for the youth. They have stuck to their marketing strategy of not advertising on TV and instead they advertise on Billboards in posh areas of cities, automobile magazines, newspapers etc. Another reason why Mercedes is such a huge brand in India is because of the word of mouth. Due to all the timely changes in their business strategy, Mercedes adopted really well to the changing business environment and it helped them to regain the top spot it had lost to Audi and BMW.

Laws of Branding:

I feel Mercedes has followed the following Laws of Branding to be successful in the Indian Market:

Contraction - A brand becomes stronger when you narrow its focusMercedes kept it focus on passenger vehicles and did not did not venture into any other area in India.

Publicity - The birth of a brand is achieved with publicity not advertisingMercedes has been publicized all over the country for its stunning looks and solid performance.

Word – A brand should strive to own a word in the mind of consumerMercedes from the very beginning has been synonyms with Prestige

Singularity - Most important aspect of a brand is its single-mindednessMercedes gives out one single message through each and every advertisement of theirs – Prestige, Style, Performance.