INTRODUCTION

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-Wrttemberg, Germany.
The name first appeared in 1926 under Daimler-Benz but traces its origins to Daimler-MotorenGesellschaft's 1901 Mercedes and to Karl Benz's 1886 Benz Patent Motorwagen, which is widely
regarded as the first gasoline powered automobile. Mercedes-Benz's slogan is "Das Beste oder
nichts" (English: "The best or nothing"). Mercedes-Benz is part of the "German Big 3" luxury
automakers, along with Audi and BMW, which are the best selling luxury automakers in the world
HISTORY
Mercedes-Benz traces its origins to Karl Benz's creation of the first petrol-powered car, the Benz
Patent Motorwagen, financed by Bertha Benz[2] and patented in January 1886,[3] and Gottlieb
Daimler and engineer Wilhelm Maybach's conversion of a stagecoach by the addition of a petrol
engine later that year. The Mercedes automobile was first marketed in 1901 by Daimler-MotorenGesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926, following the
merger of Karl Benz's and Gottlieb Daimler's companies into the Daimler-Benz
company.Throughout the 1930s, Mercedes-Benz produced the 770 model, a car that was popular
during Germany's Nazi period. Adolf Hitler was known to have driven these cars during his time
in power, with bulletproof windshields. Most of the surviving models have been sold at auctions
to private buyers. One of them is currently on display at the War Museum in Ottawa, Ontario.
Mercedes-Benz has introduced many technological and safety innovations that later became
common in other vehicles.[5] Mercedes-Benz is one of the best known and established automotive
brands in the world, and is also one of the world's oldest automotive brand still in existence today
in 2014, having produced the first petrol-powered car. For information relating to the famous threepointed star, see under the title Daimler-Motoren-Gesellschaft including the merger into DaimlerBenz.
SUBSIDIARIES AND ALLIANCES

As part of the Daimler AG company, the Mercedes-Benz Cars division includes Mercedes-Benz
and Smart car production.[7]
Mercedes-AMG
Mercedes-AMG became a majority owned division of Mercedes-Benz in 1999.[8] The company
was integrated into DaimlerChrysler in 1999,[9] and became Mercedes-Benz AMG beginning on 1
January 1999.[10]
Mercedes-AMG is the official engine supplier for the second oldest and most successful F1 team
by Grand Prix wins, McLaren Racing. In 2013 it was announced that after the last year with
Mercedes contract with McLaren, Mercedes would be dropped and be replaced by Honda, who
McLaren had world championship wins in the past together. Mercedes have been supplying the
engines to McLaren since 1995.
Road Car Manufacturing
From 2003 to 2009, Mercedes were in a joint venture with McLaren Group to manufacture the
Mercedes-Benz SLR McLaren. At this time, Mercedes owned 40% of McLaren Group. Due to
Mercedes purchasing Brawn GP, a F1 team, Mercedes decided to sell their shares back to Ron
Dennis, as McLaren would be their rival in F1.
Maybach
Daimler's ultra-luxury brand Maybach was under Mercedes-Benz cars division until 2013, when
the production stopped due to poor sales volumes.
PESTLE ANALYSIS

POLITICAL Factor Head of state. Duties are largely representative and ceremonial. President:
Joachim Gauck Head of government and thus the executive branch of federal government.
Chancellor: Angela Merkel The Executives

POLITICAL Analysis The Bundestag The lower house in the German political system. The
Bundesrat The upper house in the German political system The Judiciary The Federal
Constitutional Court acts as guardian of the constitution. The Lnder There are 16 Lnder in the
German political system
ECONOMIC Factor Germany has a social market economy. The 4th largest by nominal GDP
in the world the 5th largest by PPP. GDP of $3.747 trillion and GDP growth of 1.8%. Average
national unemployment rate of 6.8%. Approved a 50 billion economic stimulus plan to protect
several sectors from a downturn 37 of the fortune 500 companies are headquartered in Germany.
ECONOMIC Factor Around 2/3rd of the world's leading trade fairs take place in Germany.
Leading exporter of machinery, vehicles, chemicals, and household equipment. Banking and
insurance are a pillar of the service sector. Important industrial sector are automotive
manufacture, mechanical and electrical engineering and chemicals. Sector wise contribution to
GDP Industry 29% Service 70% Agricultu re 1%
SOCIO-CULTURAL Factor Largest Religion: Christianity Predominant language: German
Wolfgang, Amadeus, Mozart's are three German dance forms. Famous for rye bread. National
alcoholic drink is beer. Football is the most popular sport. UNESCO inscribed 38 properties in
Germany on the World Heritage List
SOCIO-CULTURAL Factor There are 240 subsidised theatres, hundreds of symphonic
orchestras, thousands of museums and over 25,000 libraries spread in Germany. Germans are
just argumentative. Passionate about lifestyle and politics. Corporate Culture: Make
appointments for meetings in advance Dress formally in dark, conservative suits Rank is very
important in business
TECHNOLOGICAL Factor Greatest strength is its automobile industry. Being 3rd largest
automobile producer. World leader in the chemical industry. Considered a technological
heavyweight. Introduced prototypes of hybrid gasoline-electric vehicles. Committed to develop

renewable energy sources such as wind and solar power World-class basic science in fields
ranging from materials science to biomedicine.
ENVIRONMENTAL Factor Resources: 107 cu km of renewable water resources (86% are used
for industrial purposes) Relies principally on fossil fuels as sources of energy. 40% energy
consumption petroleum 30% consumption -domestic coal deposits 17% consumption
natural gas 10% consumption nuclear energy
ENVIRONMENTAL Factor Air pollution resulting from industries & Emissions from coalburning utilities. Acid rain is damaging forests. Pollution in the Baltic Sea from raw sewage
and industrial effluents.
LEGAL Factor Law enforcing system at 3 levels: Federal, State & Local Laws are passed by
the Bundestag Influenced European Union law & by international law. 1,900 acts and 3,000
statutory instruments. Business-life is based on principle of competition. The legal stability
attracts foreign companies. Fair competition is safeguarded. Trademarks and patents enjoy
strong protection.
SWOT ANANYSIS
High Mercedes brand equity as one of the finest and strongest brands. Drive-train
technologies, interior features, and safety systems. Exceptional service quality, an industry
landmark. Mercedes Benz is one of the most popular brand names in the world. Benz is an
expensive car, thus has a limited target group. High maintenance cost and less mileage. Very
expensive spare parts.
Developing Intense hybrid cars and fuel efficient cars for the future. Tapping emerging
market across the world and building a global brand. Fast growing luxury automobile market
and increased income. competition. Increasing fuel prices. Improvement in public transport.

GEOGRAPHIC: It refers to: Dividing a market into different geographical units such as nations,
regions or cities: for example: When referring to the geographic segmentation of the S class, it is
mainly targeted toward somewhat wealthy countries. The S class is sold worldwide but its biggest
market is in the United States. CHINA The first Mercedes-Benz ever sold in China was an S-Class
and especially for Chinese customers, the S-Class has remained the model of modern automotive
luxury. "The all-new S-Class set a new benchmark for the auto industry and contribute strongly to
Mercedes-Benz's future in this country."
INDIA Mercedes-Benz India is all set to launch the new 2014 S-Class in India, however dealers
have already started taking pre-orders of the luxury car. Longer, wider and more roomier than its
predecessor, the S-Class aims at reclaiming the throne of worlds best car KARACHI Mercedes
Benz S class is also available in : Lahore Islamabad Rawalpindi Quetta Kallat Hyderabad

STRATEGY
DEMOGRAPHIC SEGMENTATION It refers to: Age, gender, income, occupation, ethnicity,
social class, family status, and education. Mercedes Benz S class demographic includes adults,
both male and female, mostly middle-aged people. They are not very popular with youngsters
since the brand is very expensive. The S class targets people of middle to high incomes. Youth
are included in this group. People between 22-25 purchased Mercedes Benz. Mercedes Benz does
not produce low price vehicles. Mercedes products also target both males and females as they
design cars to fit both male and female specifications.

PHYSIOGRAPHIC SEGMENTATION Since the car is a Mercedes-Benz cars are quite high.
Mercedes-Benz Car Group's target customers are mostly rich. For the psychographic segmentation
the S class is commonly purchased among people who have a family, since its a SUV. Some of
the reasons its customers prefer the S class is for its safety, and by being a luxury car it gives you
a certain status among society. BEHAVIORAL SEGMENTATION Behavioral segmentation is
the most powerful approach because it uses actual consumer behavior or product usage to make
distinctions among market segments. When referring to the S class behavioral segmentation, it is
purchased among heavy users, its a car you can use on a day-to-day basis, whether going to work

or to the grocery store. Most of the people that purchase the S class do it for different reasons;
quality, beauty, speed, etc

The target market for the Mercedes Benz is middle aged people of middle to high incomes. (2544 year old age ) Mercedes-Benz Car target customers are mostly rich. Mercedes Benz does
not produce low prices vehicles because Mercedes Benz targets rich people. The brand is not
popular with young people because it is expensive. Mercedes products also target both males
and females as they design cars to fit both male and female specifications.

Mercedes Benz has adopted a positioning strategy as a manufacturer of highly reliable and safe
automobiles, resulting in a price premium relative to similar international competitors.
outstanding service solutions related to those products. BRAND POSITIONING: It targets
young buyers who love to drive. The car emphasizes design and style rather than speed .Positioned
as a well-engineered stylish car, its tagline is 'Vorsprung durch Technik' in German, meaning 'Lead
by Technology'.

The new product of Mercedes Benz S class is Sedan (S550) for the upcoming year. This sedan is
good enough to make buyers attracted towards the new Sedan. The S550 starts at $93,825
including delivery, given all the improvements over the previous versions. Once you start adding
other luxurious options, the price rises to over $130,000. Product Line Pricing Pricing in the US
where all models will be 4Maticstarts at $140,425. Extras can add up to the car price of around
$160,000 because they are more luxurious and comfortable, better looking and fully equipped with
latest technological innovations that attracts the buyers- especially the AMG versions which
represent a huge progress for the product line. Price Adaptation Strategy Mercedes Benz S class
is providing functional discounts to its dealers about $2,500 for pleasing and attracting customers
towards their models.

Mercedes Benz S class organized a Fashion Festival in Brisbane . The goal of the Mercedes-Benz
Fashion Festival is to promote fashion and style, to increase awareness for our local industry and
ultimately to increase sales. Mercedes-Benz has also tried to enhance the reputation of luxury and
durability of its cars by including the Mercedes-AMG that produces high-performance engines

for luxury cars. Mercedes-Benz wanted to reach their target audience throughout their Facebook
advertising .As the Class S model was targeting younger drivers, Mercedes-Benz so it choose
Facebook as the ideal platform. Mercedes-Benz has been using star-power to send a different kind
of message: Stars are bright, but most importantly, they are Mercedes-Benz clients.

Mercedes also conquer the online internet market with the launch of the exciting multimedia
Mercedes-Benz S -Class configuration, interactive online films, and video podcast.

Advertisement: The advertisement for the Mercedes-Benz S-Class series automobile uses several
effective devices. Initially, the lack of color gives the impression of a classical and somewhat
elegant item. Mercedes do not need to expose customers to frequent advertisements. Theme they
use is very creative and it gives the viewer the perception that the name of Mercedes-Benz speak
for itself. Sales Promotion: It is said by the Mercedes Company that on purchase of every Benz S
class, the Company will donate $100 / vehicle to help provide fragile children with medical
facilities which has a significant effect on the sales of Mercedes Benz S class. Direct Marketing: :
Mercedes Facebook page is a main hub of interaction between the brand and its customers.
Customers and brand fans post on the walls, take part in discussions and share images and videos
on the automakers page