The marketing mix elements are the basic, tactical components of a marketing plan. Also known as the Four P's, the marketing mix elements are price, place, product, and promotion. This report will compare the marketing strategies used by Mercedes Benz and BMW both of which are German car manufacturers. Mercedes-Benz will discontinue the CLK model after 2010 and replace it with a coupe and convertible based on the new E-class. In comparison BMW has been extending its product portfolio by including smaller and less profitable cars. During 2008 Mercedes-Benz USA appointed 27 dealers to open special AMG performance centers. BMW created an import/export operation which is the only U.S. manufacturing plant, it is located in Spartanburg South Carolina. For promotion during 2008 Mercedes Benz announced a 100 million dollar TV advertising campaign to promote its C-class and M-class premium SUV. BMW planned to do the exact opposite in the US, BMW announced they will heavily focus on the Internet, interactive marketing and print. Mercedes Benz has aggressively priced its new GLK class which is a premium medium SUV, with an entry price under $35,000. In contrast BMW is pricing its new diesels for profit, not volume, in the United States. BMW instead is shooting for higher profits, pricing its diesel vehicles above those of its major rivals.
BMW vs. Mercedes
Mercedes Benz is a German manufacturer of cars, trucks and vans and coaches and is a division of the parent company Daimler AG. This report will focus on the products supplied by the Mercedes-Benz Cars division range from the high-quality small cars of the smart brand to the premium automobiles of the Mercedes-Benz, Mercedes-AMG, and Mercedes-Benz McLaren brands and through to the Maybach luxury sedans. Mercedes-Benz Cars has 17 production sites worldwide (reference www.daimler.com). Daimler bought out the Chrysler Corporation in 1998 to expand the company. Brand names such as Chrysler, Dodge, Plymouth, Jeep, and Mopar became part of the Daimler Company.
BMW is a German automobile, motorcycle and engine manufacturing company and is a division of the BMW group who also own Rolls-Royce and Mini. This report will focus on the products supplied by the BMW car division. BMW now has 1, 3, 5, 6, 7, X, M, Z series and a sport version in the 3 and 5 series. BMW has a tradition of building excellent automobiles with a special emphasis on performance, style and technological advancements that are recognised through their product range. BMW has future goals of a three phase strategy to produce clean energy across its vehicle range. The first phase is to reduce emissions across the entire product range sing efficient dynamics, secondly it works on hybrid cars by combining petrol engines with hydrogen fuel cell or electric power. Thirdly an engine powered by liquid hydrogen that only produces 2g/km of carbon emission. Marketing Mix
Mercedes-Benz will discontinue the CLK model after 2010 and replace it with a coupe and convertible based on the new E-class. Market segments for the CLK and E-class coupe are similarly sized, but Mercedes-Benz needed a two-door that could better compete with the larger coupes that are being launched by competitors. BMW's earnings per car have been decreasing since early 2000 as the company has been extending its product portfolio by including smaller and less profitable cars. This has also considerably reduced the pricing power exercised by the company earlier.
For example 2008 BMW introduced a 1 series model, the 1 series will help BMW increase its customer base. Potential buyers for the 1 series are being drawn from various segments, ranging from BMW owners who want a smaller premium car to conquest buyers new to the brand.
Marketing management has to be careful not to extend the product line length too long, if BMW can make profits by taking models off the market then the product line is too long. BMW...
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