Marketing of Luxury Cars: CSU MKT 501
- 2. •Company profile: Mercedes Benz, Audi, BMW and Lexus •Their goals and current objective •Segmentation, Targeting and Positioning of these companies •Marketing in social media; a societal marketing perspective •Marketing mix; the use of 7ps for market performance •Successful marketing promotion in social media •The company’s position in marketing concept •Evaluation of marketing mix among four luxury car company •Conclusion
- 3. 1.1 Company profile (objective) As a pioneer of automotive manufacturing, Mercedes is striving for innovation, environment safety, high-end technology and luxury in pursuit of customer satisfaction, sustainable growth and wealth maximization. S class luxury cars for rich and high profile people and C class luxury for middle top income level executives and youths. It has sport luxury for sport car lovers. The company has a strong brand recognition of safety, innovative and perfect classic luxury car. 1.2 Segmentation, Targeting and Positioning Currently the company is working for autonomous self-driving car along with other luxury cars for upcoming generation that benefits the company with competitive advantage of technology.
- 4. 1.3 Marketing promotion in social media: "Fable" Commercial is one of the most popular you tube video that has been view by 12 million viewers. It has made a positive brand impact that one should buy Mercedes AMT GT S to have success, thrill and real adventure. This was completely new idea in promotion that was a milestone for the creative advertisement in social media to attract the customers. Mercedes has been using social media for the advertisement and promotion. It gathers the data and feedback through facebook, twitter and instagram. https://www.youtube.com/watch?v=LQvdIGeUUvo
- 5. 1.4 Review of Marketing mix Price: Mercedes uses different price for different models. It has C class car entry level luxury to SLS class cars for very rich customers. Promotion: The use of online media and television for promotion, US open sponsorship and making of Mercedes Benz Stadium in Atlanta are the best example for successful promotions. Product: Mercedes produces luxury passenger cars, trucks, vans and other vehicle to target different customers need. Customers like Mercedes for its safety, comfort, design, brand, power, reliability and durability features Place: They have thousands of dealership and hundreds of manufacturing warehouses across the world Physical Evidence: Showroom and dealer are designed to be cool, classy and luxury looking People and Process: Mercedes stands for highly appraised system for customer service and distribution mechanism.
- 6. 2.1 Company profile (objective) Aiming of being the world leading luxury car company for premium segments. Value sportiness, progressiveness and sophistication are three elements of their mission backed by products with attractive design, high caliber material and build quality. Small sporty car for European people and Audi is targeting the niche market customers from high and upper high-class people across the world with luxury needs. Mostly business corporate prefers Audi for its performance, safety and luxury features. In 2007, Audi was voted as Car Company of the Year by the British Car magazine and has ranked 4th in luxury car. 2.2 Segmentation, Targeting and Positioning
- 7. 2.3 Marketing promotion in social media: Audi launched the Hastag campaign in social media that went viral. Audi’s #WantanR8 campaign is one of the most successful Twitter campaign in history. It offered the chance of wining an R8 who does participate in the campaign. This has promoted the brand online among twitter users. The Hostage advertisement of Audi R8 is another successful story of promotion, which shows the brand is considered so precise and valuable as living being. Audi has made many funny and cool commercials on television and youtube network which take the attention of the people successfully. https://www.youtube.com/watch?v=_6rj5jisB7g
- 8. 2.4 Review of Marketing mix Price: Audi made cars are relatively high priced based on feature. Promotion: Besides digital and print media promotion, Audi sponsors US open tennis and has Audi magazine for car lovers. Product: All the Audi cars meet the standard of safety, conform, technological innovation and luxury. The company has been actively working in carbon emission reduction for environment safety and fuel economy. This has influenced to increase the brand loyalty. Place: Audi has an extended network of dealership with high quality customer service in many developed countries. Physical Evidence: The digitalized and innovative showroom has led a positive impact in the mind of high-class customers People : Sales persons and mechanics provide world class services to its customer to promote the sales via word of mouth. Process: Audi was the first car to go online in marketing. It has digitalized its showroom for quality service.
- 9. 3.1 Company profile (objective) Lexus manufactures premium vehicles with high level of luxury, advanced technology, environment friendly, striking design and next level performance. The product lines up of Lexus are Sedans, Convertibles, Hybrid and SUV. Lexus NX Crossover is a hybrid Lexus aimed for younger active and urban consumers. The main markets are Europe, USA, Japan, Germany and Australia. Lexus targets younger and urban with active lifestyle. Exceptionally well-equipped, Edgy and striking design as well as refined and comfortable. 3.2 Segmentation, Targeting and Positioning Lexus targets younger generation in their latest ‘This is the New Lexus” campaign for their hybrid NX Crossover via M&C Saatchi. This is M&C Saatchi’s first campaign for incredibly luxury car. ‘This is the new Lexus’ campaign centers on ‘Progressive new luxury, leaving old luxury behind ‘in the first of a number of model launches to target a new and younger audience. 3.3 Marketing promotion in social media:
- 10. 3.4 Review of Marketing mix Products: Lexus has a different range of cars. They varies as Sedan, SUV, convertible, sport car and hybrids. Price: Lexus uses Flexible cost pricing, premium, value pricing and skimming methods depending upon marketing condition and consumer perception. Place: Lexus is marketed worldwide and they have five manufacturing facilities and thousands of dealership and wide distribution network Promotion: Other than TV promotion Lexus have sales promotions, loyalty scheme, direct mail, public relations etc. People: The success of Lexus is a combined effort of the customers and employees. Physical evidence: Lexus Company have the Tahara plant in Japan, which is one of the biggest car manufacturing company in the world. The design and showroom are made for Excellency. Process: Lexus has Driver attention monitor, blind –zone alert, cross-traffic detection, Pedestrian detection system and Parking guide system. They are using premium materials. They have virtual crash test system that minimized the accidents.
- 11. 4.1 Company profile (objective) BMW has strategy that focuses on profitability and long-term value enhancement by considering growth, shaping the future, profitability and access to technologies and costumers. Except the premium and luxury, BMW has the mission of making the cars with less CO2 emission and higher fuel efficiency. The main markets of BMW is Europe and North America which covers 65% of the total sales of the market and other Asian countries including Australia. BMW targets Especially Men and women aged between 30 to 50, who have very good income source and other business executives. 4.2 Segmentation, Targeting and Positioning BMW is well known for its luxury, innovation, fuel efficiency and sporty looks. BMW has 13.4 million fans in facebook. Besides the facebook, BMW has been using twitter, instagram, pinterest and google+ for promotion and interactive marketing strategy that helps the company to gain competitive advantage of marketing strategy.
- 12. 4.3 Marketing promotion in social media: “BMW i8” was launched in May and is a hybrid drive train electric super car which is much more fuel efficient and environmental friendly than any other car with maintaining its safety, standards and the quality as never before. BMW i8 is visionary vehicle with outstanding look, which changes the way that people look at premium cars. Dr. Steven Althaus, head of BMW Brand Marketing: “We deliberately decided on a campaign that tells of the genesis of the BMW i8 – a journey from the impossible to the possible. Visuals showcase the beauty and power of the BMW i8 in pure, genuine, intense images, which give the campaign greater, more iconic impact.” BMW I8- “I am the possible” https://www.youtube.com/watch?v=CD47O_Rob3A
- 13. 4.4 Review of Marketing mix Products: BMW offers a lot of different option as per the market segmentation from Sedan, coupe, convertible, family car to electric sports car. Price: BMW offers different price range from approximately $36,000 to $300,000 in its regular series. The price differs with its facilities so the buyer can choose what they prefer. Place: BMW has its activities around 150 countries which started from Germany and secondly in South America and then to many different countries. Promotion: BMW promotes its each product differently to boost the sales over the product line. People: Dedicated service staffs render service in showroom and trade centre to give maximum satisfaction to its high profile consumers. Physical evidence: Extended dealership across the world and showrooms are designed for luxury feeling and brand recognition. Process: Digitalized online marketing has influenced the customers purchase decision positively.
- 14. Marketing concept/ Luxury Car Brand Mercedes Audi Lexus BMW Production No No No No Product Yes- Exceptionally well-equipped Yes- innovation , high calibre material Yes-High quality and Functional features, Premium product. Yes-relentless research, safer, economic and environmental friendly. Selling No No No No Marketing Yes- Diversified customer needs, classic prestige with comfortable driving experience. Yes- wide range of product varieties, sportiness. Yes- offer exceptional customer service, creating loyalty throughout the world. Yes – Strong brand, Pull strategy by delivering quality revolution. Marketing concepts used by different Luxury Cars
- 15. 7P’s/ Luxury car Brand Mercedes Benz Audi Lexus BMW Product ★★★★★ ★★★★★ ★★★★★ ★★★★★ Price ★★★★★ ★★★★ ★★★★★ ★★★★ Place ★★★★★ ★★★ ★★★ ★★★★ Promotion ★★★★★ ★★★★★ ★★★★ ★★★★★ People ★★★★★ ★★★★★ ★★★★★ ★★★★★ Physical evidence ★★★★★ ★★★★★ ★★★★★ ★★★★★ Process ★★★★★ ★★★★★ ★★★★ ★★★★★ Star rating: ★★★★★= Excellent ★★★★=Good ★★★= Mediocre ★★ = Below par ★=Poor Review of 7P’s with different Luxury cars
- 16. A solid and well though-out marketing plan is inevitable to compete in today’s competitive market. Marketing is a key functional area to succeed in the world. Marketing determine how the company value its position. Marketing plan helps to position business, determine the target markets, understand its strengths and weaknesses and find the opportunities within those strengths and weaknesses to execute the company’s goals and objectives. When all the members of company endorses marketing plan, the company will succeed. Good marketing plan helps the customers to understand why the company’s service is better than that of competitors. Conclusion: In conclusion, based on the utilization of marketing mix and effective promotion strategy Mercedes comes in first among four cars. Mercedes has wide range of product line from relatively cheaper to very high priced cars that targets the large amount of audience in the market. Furthermore, it has invested a huge money in corporate social responsibility, and technological innovation. Through consistence business performance and sustainable growth, Mercedes is able to led a psychological feeling of superiority in customers mind. However, the intense competition by Audi and BMW has made the luxury car business more challenging in future.
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