Mercedes Benz Smart Car Marketing Strategy
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You are a marketing consultant and Mercedes Benz has just hired you to help them introduce their Smart Car in the US market in 2007. Sticking with our theme of how the elements of the marketing mix work together, build a marketing strategy for the launch of the vehicle. Consider such things (in no particular order) as:
Who is the target audience? What are their attributes? How do they make buying decisions?
What should the price be?
Where should the product launch? How?
Who is the competition? How should the car be positioned relative to the competition?
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Solution Summary
This is a discussion of marketing strategy for a fictitious product called the Mercedes Benz Smart Car.
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Who is the target audience? What are their attributes? How do they make buying decisions?
Mercedes-Benz is a well-known brand of luxury cars. Mercedes Benz's usual line of products consists of German engineered and made cars which are known as status symbol of high end consumers. All consumers have their own values and beliefs which influence their car buying decisions. There are several factors responsible for the purchase decision. The car industry continues to grow worldwide. There is a rapid change in trends and consumers preferences for comfortable, reliable, highly efficient and economical cars. Mercedes-Benz must provide consumers with the choices they desire to maintain its brand position in the market and also to grow its market share in the car industry. The company must adapt new hybrid technologies and techniques to build its new Smart Car's brand among "green" consumers.
Today's consumers are well informed and capable of making highly intelligent decisions in selecting a car that meets their needs. They look for the best options available for the best price. They demand not only highly efficient, affordable, reliable cars but also those with comfortable amenities, stylish body styles and high powered engines. Some consumers also consider that the cars should be environment friendly, and these are often referred to as "green" consumers.
Mercedes Benz can segment its markets psychographic where they focus on satisfying this new niche of customers they have not served before. These are cost conscious "green-minded" middle class consumers who may never have considered a Mercedes as an option due to its high cost. The Smart car however is designed to save the consumer money. The Smart car is being priced at $15,000 to $25,000, depending on options and it also designed to save expensive fuel costs through its high mileage rating of between 37 to 50 miles per gallon depending on the final EPA rating (Gartner, 2005). These new customers can now afford the perceived values of high quality and luxury associated with the Mercedes Benz brand.
What should the price be?
The Smart car is being priced at $15,000 to $25,000, depending on options because this is the price range in which buyers are looking for a car that is the cheapest to buy or to operate. At anything past this price range consumers seem to be more concerned with ...
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