Marketing Strategy of Mercedes and BMW

Marketing Strategy of Mercedes and BMW What is marketing? Who really knows? In our era, most of the people have in their mind a different meaning of the marketing. For me, marketing is a mean which pulls the strings of our economy. The language of marketing has been borrowed from the military. We talk about defensive marketing, offensive marketing, and guerrilla marketing. Often overlooked, however, is flanking, one of the most powerful military strategies. As for the official meaning of the word, marketing is: Marketing is the process by which companies create customer interest in goods or services. It generates the strategy that underlies sales techniques, business communication, and business developments Marketing is defined by the American Marketing Association (AMA) as the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. The Chartered Institute of Marketing defines marketing as the management process responsible for identifying, anticipating and satisfying customer requirements profitably. Maybe there are thousands different meanings of marketing but in the end they are all agreed that it was created to help the market and the consumers to fulfill their needs. BMW VERSUS MERCEDES-BENZ This assignment is to analyze and compare the marketing strategies of BMW and Mercedes-Benz. Both companies are renowned market leaders in supplying automobiles. The pair has a history of providing innovative cars for the past century. Over the years with the improvement of technology BMW and Mercedes-Benz have met customer needs by producing the most inspiring and well developed cars of their times. The BMW Group concentrates on selected premium segments in the automobile market. This means that they specialize in providing a high quality product and in return they can achieve higher revenues per vehicle sold. In contrast Mercedes-Benz which also provide to the premium segment of the market have concreted their name in history as manufacturers of luxury cars, have opened their doors to a range of more dynamic models targeting the slightly younger market. Mercedess most powerful competitor has long been BMW. The two companies marketing strategies seemed to mirror one another in the 1 990s. Thus in 1996, Mercedes signed a deal to promote its vehicles in Universal Pictures The Lost World, but it was several years behind BMW, which in 1995 made an agreement to feature its vehicles in the James Bond film Goldeneye. More important was an overall shift by both companies in response to the rise of Japanese luxury vehicles such as Lexus and the Acura Legend. Farrell reported in Brandweek, With repricing and repositioning-advertising messages emphasize more value instead of luxury-Germanys two luxury leaders, Mercedes and BMW, are on the offensive à ¢Ã¢â€š ¬Ã‚ ¦ Both have rebounded with a reversal of marketing strategies that include new, lower-priced products and even ads that tout price. Nonetheless, of the two manufacturers, Mercedes has made the more drastic changes. THE HISTORY OF BMW Bayerische Motoren Werke AG (BMW), or Bavarian Motor Works, is a German automobile, motorcycle and engine manufacturing company founded in 1913 with the formation of the Rapp-Motorenwerke company by Karl Rapp. The firm were engaged in the production of aircraft engines from a former bicycle factory located near Munich. It was close to this plant that Gustav Otto established the Bayerische Flugzeugwerke AG aircraft factory and in 1922 these two organisations merged to form BMW. The letters stand for: Bayerische Motoren Werke. In their early years BMW produced mainly aircraft engines, but also some motorcycle engines. In fact the BMW badge is supposed to resemble a spinning aircraft propeller. It wasnt until 1928 when BMW bought a car factory at Eisenach/Thuringia that BMW began producing cars. Along with the factory they bought the license to produce a small car called the Dixi. It was in 1936 that BMW introduced the type 328 roadster which quickly became the most successful sports car of the time. The type 328 roadster accumulated a number of prestigious wins on the racing circuit and was nominated as car of the century in 1999. BMWs involvement in aircraft engine production during WWII led to a 3 year ban on production at the end of the war. It wasnt until 1949 that they were able to return to production which they did with the 250cc R24 motorcycle. It was in 1951 that BMW introduced a spacious, 6-cylinder sedan called the 501. This was followed by the 502 which featured a lightweight alloy V8 engine. Later in the 1950s they began producing the BMW 507, a lightweight, V8 propelled sports car. This was the vehicle they hoped would revive the sporting success theyd achieved with the 328 roadster. But this wasnt to be. They were losing money on every 507 that was produced and so production stopped in 1960. Also during the 1950s BMW bought the design and manufacturing rights to the Isetta which was to become one of the most successful microcars in the post WWII years. It was a time when cheap, short distance transportation was much needed and the 2-seater, with an economical 250cc engine, fit the requirements nicely. Manufacturing rights for the Isetta were sold to various production companies around the world and these included the British Railways works in Brighton, UK. The 1960s saw BMW enjoying a number of notable successes including the BMW 1500 which was a 1499cc, four cylinder touring sedan introduced in 1961. This was the first of the modern BMW sports sedans. They went on to produce a series of popular sedans including the famous BMW 2002. This was a 2-door sedan that had been based upon the 4-door 1600. The 2002 was to be the forerunner of the BMW 3 series and production of this successful model continued until 1976. By the 1970s BMW had cemented their reputation as an innovative automobile manufacturing company. The 70s saw the introduction of the 3-tier sports sedan range consisting of the 3-series, 5-series and the 7-series. Between 1970 and 1993 BMW car production quadrupled and turnover increased by 1700%. The 1990s, after 1994, saw BMW take ownership of the British Rover Group. This was not a successful venture and in 2000 BMW disposed of Rover. Todays beemers have retained their highly prestigious reputation for quality and reliability. The company are taking steps to reduce the impact they and their motor cars have upon the environment so we can expect to see more innovative and exciting developments from the motor car company who have not only survived two world wars and a massive depression, but thrived. TARGET MARKET OF BMW BMW marketing targeted customers between the ages of 25 and 45 who were new to the luxury car market, nevertheless without alienating their current customer base. The customer base of BMW was 46-year-old male, married with no children, and had a median income of about $150,000. More importantly, the Internet was used by 85% of customers before buying a BMW (Hespos, 2002). Combining the ideas of producing a series of short films and using the Internet in an advertising campaign, short films for the Internet was born with BMW Films (Hespos, 2002).The luxury automobile maker that has established a mark for itself in the luxury car segment with its high performance cars. BMW is a powerful brand that is truly experienced by car lovers all over the world as a symbol of performance, power and luxury, all combined into its power packed machines that are treat to watch, drive, and possess. Thats why, it is truly known as the Ultimate driving Machine. BMWs tighter feel and enhanced responsiveness gave drivers the sense they were in complete control, something no other brand of automobile offered. This handling advantage was greatly appreciated by sports car aficionados and car enthusiasts. MARKETING STRATEGY OF BMW BMW has many different strategies of marketing. One of these strategies is the support of its dealer network. This succeeds only through a range of actions. Dedicated Dealer Marketing Service which assists with all marketing requirements for example: Local advertising for product range Support for local promotions National promotions Hire of promotional equipment for dealer events Image library which stocks various images available for dealers to use when creating their own marketing communications such as leaflets, invitations and direct mail. Educational materials Moreover, there is a Continuous Customer Contacts Program (CCCP) with the objective of increased customer loyalty and satisfaction. BMW also focuses on a great range of advertising. One thing that all BMW adverts have in common is that they focus entirely on the cars. On TV there are many branding campaigns and new car launches. Some TV spots depict stereotypical corporate-cog executives who squelch creativity and initiative. Beware of the compromisers. They say things like, Choose your battles, or Is this idea really worth falling on your sword for? Later, the recurring message throughout the campaign comes in, At BMW, ideas are everything. Radio branding campaigns (2002 was the first year that BMW used radio for national advertising) also uses. It does not tend to be used at a national level, although may be used regionally. As for the press, Color press is listed, for example: Tatler, Vogue, lifestyle magazines, motoring publications, broadsheet newspapers and tabloid newspaper weekend color supplements. Black white: national press. In addition to higher profile national advertising, dealers also run their own local campaigns through: Local press Radio Bus advertisements At the cinema, screens usually show short films. Other ways of advertising includes supply of sales literature, brochures, direct marketing, price lists and point of sale materials. Finally, other methods BMW use to promote its brands and products: Product Placement BMW Art Car Collection Sponsorship These and many others are the marketing strategies of BMW in order to enhance its market share. As for Mercedes-Benzà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. THE HISTORY OF MERCEDES-BENZ The roots of Daimler-Benz went back to the 1880s and founders Carl Benz and Gottfried Daimler, whose separate companies became one in 1926. Besides the two Germans, an important early figure was Austrian banker Emile Jellinek, who in 1897 became a Daimler board member. Jellinek offered a variety of useful marketing advice and suggested a car with an engine to the front, because that was where the horse used to be. After outlining a type of racer that he wanted built, he promised to purchase 36 of them, a sizable order at a time when few people had even ridden in an automobile. In return he asked that Daimler name the car after his one-year-old daughter, Mercedes. The car, introduced in 1900, had a top speed of 30 miles per hour, which at that time made it one of the fastest vehicles on the road. But a Mercedes could go much, much faster, and just nine years later its manufacturers built a special Benz capable of reaching 141 miles per hour. In the economic upheaval that followed World War I, Daimlers and Benzs companies joined forces as Daimler-Benz AG, founded in 1926. Its symbol was a three-pointed star, which reportedly symbolized air, land, and sea-arenas in which Daimler engines dominated. During World War II, Daimler-Benz became associated with the Nazi regime. Hitler had several models specially built for his use, and the company turned to producing airplane engines and military vehicles for the Third Reich. But it recovered quickly from the war and in the 1950s established itself as a manufacturer of luxury sedans in Europe and America. TARGET MARKET OF MERCEDES-BENZ In 1993, Rosemarie Totzauer reported in Brandweek, Mercedes is attempting to reinvent itself, to evolve from a company long defined exclusively by its gas-guzzling luxury sedans and sports cars. The reborn Mercedes will offer a broader, more complete line of vehicles for the rapidly changing, more complex, higher risk luxury segment à ¢Ã¢â€š ¬Ã‚ ¦ Mercedes-Benz, therefore, has to gear itself for a metamorphosis into a company known for value and a diversity of vehicle concepts rather than for the prestige of the three-pointed star. These words, occasioned by the shift in slogans from the old Engineered Like No Other Car in the World. created by McCaffrey and McCall, to the new Sacrifice Nothing, gave a succinct statement of the companys changed marketing policy, The target market had broadened, and so had the Mercedes lines. The latter now included the C class, which replaced the 190 series as a product for the low end of the market; the E class, a mid-size luxury car; the S class, for the high-end luxury vehicles that had previously comprised the sum total of the companys product; and the SL for sports cars. Although, as Fara Warner wrote in Brandweek in 1994, Mercedes is still considered an exclusive luxury car for white males, the company sought to broaden its appeal with value prices and new products. Greg Farrell, writing in the same publication a year later, offered a compelling example of the effect produced by the shift in target market: Maria Pestonit, a 28 year-old Miami computer consultant, didnt like her first three cars à ¢Ã¢â€š ¬Ã‚ ¦ [and] after three performance cars, luxury struck her fancy. Mercedes may have hooked her for life with its C280, costing about $34,000. My family had a Mercedes. But that was my parents car, she said. I thought I could never reach that.' MARKETING STRATEGY OF MERCEDES-BENZ Mercedes Benz marketing strategy was once centered on the safety, luxury, and precision engineering of its cars, but due to increase competition in the luxury car industry and changing consumer attitudes about the Mercedes Benz brand that strategy has changed. Now their marketing strategy is more life style oriented and is focused more on presenting the more fun loving, approachable, and energetic side of Mercedes Benz. The evolution of Mercedes Benzs marketing strategy can be directly connected to the expansion of its target market, which now includes persons twenty five to forty five years old as well as its initial targets the baby boomers. In order to provide superior customer value to its target market Mercedes Benz has found it necessary to expand its product line up, provide more competitive prices, increase communications with its target market, maintain accessibility to consumers, and continue its excellent customer service. The marketing strategy of Mercedes-Benz is short of the same as BMW. More specifically, Mercedes spends a big amount for advertising campaigns. Mercedes-Benz launches an international advertising campaign on the theme of sustainability. The first printed advertisements using the new brand design will feature the E 300 BLUETEC to be launched in Germany in December 2007. Moreover, four different print ads will be placed in all large-circulation magazines in Germany, running in parallel with a TV commercial and an online campaign. The sustainability campaign will then be extended in mid-2008 to include additional vehicles and developments related to Mercedes-Benz activities which are combined under the heading True Blue Solutions. In our marketing campaign on sustainability we promote innovative technologies for environmentally sound mobility such as the BLUETEC emission treatment system, which Mercedes-Benz offers to its customers as the worlds cleanest diesel, says Dr. Klaus Maier, Executive Vice President of Mercedes. Mercedes new marketing campaign stresses safety over luxury. This isnt surprising since the financial crisis has reversed consumer priorities. Its now frowned upon to brag about buying the most luxurious car. Instead the most popular guy is the one who gets the most worth for as little money as possible spent on a new car. Mercedes-Benz is now allocating 50% of its UK marketing budget to digital media, according to its VP for brand communications, Anders Sundt Jensen.The dynamics of the UK market and the advanced consumer behavior in the UK meant the automotive brand was already allocating half of its budget to digital, well ahead of other European territories where the company was far from allocating even 40%.The key to the companys success online was the creation of specialist expertise within the company.We dont have normal marketers just doing online ads, or just putting our TV ads online, Anders Sundt Jensen said. We have a whole department, for example, at our headquarters in Germany just doing digital marketing. Also, one of the marketing strategies of Mercedes-Benz followed is to start promoting some of its cars on IPhone and Facebook. Another marketing action than gave a step forward to Mercedes-Benz is the promotion of a series of green cars. Mercedes-Benz brings to the market hybrid cars that are environmental friendly. To sum up, the key that makes Mercedes-Benz a powerful competitor in the market is the below: Delightful customer care Retail network ready for the future Efficient, integrated processes and systems Sales and Marketing MBC Product Price Place Promotion People Processes Perfectly positioned brand and effective marketing Fascinating products Motivated, qualified employees Effective market penetration CONCLUSION Undoubtedly, BMW and Mercedes-Benz were, are and always be two whoppers. Their marketing strategies are about the same. Their advertising campaigns, the tv and radio spots, the costumers services etc. The difference between them and the reason why they are both special is their target market and their market position, what they want their customers to remember about them. BMW focuses to young customers aged 25 to 45 and it promotes the slogan  «Ultimate driving machine ». It appeals to those who want to have the sense they were in complete control. On the other hand, Mercedes-Benz is still considered an exclusive luxury car for white males, but now decides to broaden its appeal with value prices and new products. It appeals to those who love luxury and safe cars but not too expensive.

Trend in Transport: the Role of Intermodal Transport in the International Logistics

Globalization and the consequently expansion of the geographical firm’s borders led an increase of the international transport’s demand, promoting the develop of transport’s sector. In fact, the growth of the amount of freight being traded, as well as, a great variety of origins and destinations promotes the importance of international transportation as a fundamental element supporting the global economy. In particular, since the trading distances involved are often considerable, there has been an increase of demands on the maritime shipping industry and on port activities. In this process China had an important role, in fact, as its industrial and manufacturing activities developed, it started to import growing quantities of raw materials and energy and export growing quantities of manufactured goods, fostering a surge in demands for long distance international transportation. International transportation system have been under increasing pressures to support additional demands in freights volume and distance at which this freight is been carried. This couldn’t have occurred without considerable technical improvements permitting to transport larger quantities of goods, and this more quickly and more efficiently. Container played, of course, a crucial role, promoting, furthermore, the development of the intermodal transport. Intermodal transport modes recover an important role in international transportation, in fact, because of the involved geographical scale, most international freights movements involve several modes, especially when origins and destinations are far apart. Among the numerous transport modes, two are specifically concerned with international trade: ?Ports and maritime shipping ?Airports and air transports Maritime transportation is very important in international trades, in fact in terms of tonnage it handles about 90% of the global trade. Although in terms of tonnage air transportation carries an insignificant amount of freight(0. 2% of total tonnage) compared with maritime transportation, its importance in term of the total value is much more significant:15% of the value of global trade 70 times more valuable than its maritime counterpart) . This is due to the fact that air transportation, being more expansive, is used mostly to carry rich freights. Road and railway modes tend to occupy a more marginal portion of international transportation since they are above all modes for national or regional transport services. Their importance is focused on their role in the first and the last part of the door to door transportation chain. For this reason they result anyway an important factor that should be considered by a firm in the logistics planning of the distribution of freight to the customer. As said before the driver of intermodal transportation has been the container, which permits easy handling between modal systems, in fact it is designed to be moved with common handling equipment enabling high-speed intermodal transfers in economically large units between ships, railcars, truck chassis, and barges using a minimum labor. The container, therefore, serves as the load unit rather than the cargo contained therein, making it the foremost expression of intermodal transportation. The usage of containers shows the complementarity between freight transportation modes by offering a higher fluidity to movements and a standardization of loads. For logistics managers intermodal transportation offers significant advantages over single mode alternatives. First, intermodal transportation minimizes handling and total transit time, expediting the entire transportation process and thus shortening the customer’s order cycle time. Second intermodal transportation allows to take advantage of the best characteristics of all modes, permitting to offer the most efficient transport service at the lowest possible price to the customer. Third intermodal movement cuts down on theft, loss and transport costs in general by eliminating virtually all handling of individual goods. Another important factor is that intermodal transport uses container and this makes easier tracking the freight during all the transportation process. This is possible thanks to a new technology called RFID (radio frequency ID) a firm (but also a customer) is able to know what assets it has and where they are at every hour. In fact this relatively new technology, that promises to change the way inventories are managed, consists in an RFID device that transmits a signal when it is activated by an RFID receiver. Depending on the device, this signal can have a range as short as 6 feet or as great as 90 feet. The data transmitted can include various product identifiers of value to the manufacturer, shipper or purchaser. So the signal emitted by an RFID device can help company tracking the location and quantity of their inventory . The use of RFID in logistics application is one of the pre-eminent fields where the technology can shine. Products can be tracked from points of manufacturer (and even earlier if source components are tracked using RFID) all the way through the distribution chain, and down to the retail level. This new technology has helped many organization solve the main challenge at every node in their supply chains: the lack of visibility of logistics data. RFID technology is a powerful solution to improves asset visibility, data quality, inventory management, and interoperability in an end-to-end integrated supply chain. In addition the use of this technology allows to reduce costs as replacement costs as well as avoiding shrinkage. It also helps to reduce capital costs, increase customer satisfaction, as well as ensuring the assets are in the correct place at the right time, recovering an important function in the logistics process of a firm. An added advantage is the reusability of these tags, so company, which want greater control over assets and their management, have opted to use RFID and logistics management techniques . Using RFID and logistics management strategies will serve to improve capital utilization, lower the total operational costs as well as improve the availability of assets. The use of these asset management techniques has improved customer retention significantly. This technique will help improve visibility of assets in transit, availability management of much needed assets and transportation management The use of RFID and logistics management techniques are especially useful for manufacturers, where parts bins feed parts in an automated plant, since the placement of the right part in the right place is critical. The company can use these techniques in areas where they have expertise whereas professional help can be sought for areas where they lack control such as transportation, delivery, pick up etc. Companies should consider implementing RFID and logistics management techniques, as they will greatly benefit from it. It will reduce cost, increase control and availability, decrease chances of loss of assets due to various factors as well as prove to be very economical. In conclusion we can affirm that transport is one component of the logistic mix that is undergoing a great deal of change. Intermodal transport is a reflection of the changing nature of transport in general, signifying as it does the logistics managers ability to combine the advantages of two or more modes of transport into one seamless shipment that reaches the customer faster and with less damage than a mode-by-mode routing could providing. Therefore to better control the delivery process of the goods, being able to provide value added to the customer, could be useful for a firm develop a tracking system of the freight from the factory to the final customer. This could be seen as value added logistics service useful to satisfy the customer saving costs at the same time.

Choosing Good Write My Paper for Cheap Wiseessays Com

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Organizational Culture Of The Publix Corporation - 1082 Words

Organizing – Organizational Culture Our textbook provides us with the definition of organizational culture â€Å"as the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments† (Kinicki Williams 227). The Publix Corporation formally states its commitment to its organizational culture in their published mission statement. One of the bullet points of the Publix mission dedication â€Å"to the dignity, value and employment security of our associates† (Mission Statement Guarantee). It is the founder’s values that drive an organization’s culture (Kinicki Williams 227). Publix has its story, one of its observable artifacts (the first†¦show more content†¦Organizing – Organizational Structure Organizational structure describes who reports to whom and who does what (Kinicki Williams 239). It is evident that Publix is a for-profit organization. Through the elements found in their strong organizational culture, all Publix employees are aligned and focused with a coordinated effort, on the organization’s common purpose: â€Å"To be the premier quality food retailer in the world† (Mission Statement Guarantee). Although an org chart for the entire organization is not available, due to proprietary information laws, here is a pyramid showing layers of the organizational structure at a standard Publix store (Carvin 125). It appears that a Publix store’s vertical hierarchy of authority, the â€Å"who reports to whom†, in the store is exactly as one would expect, a simple chain of command (Kinicki Williams 239). This display represents a narrow span of control, specifically in the middle management area because there is a one-to-one ratio of department to assistant department managers. This changes to a flatter span of control at the lower level, where each store will have a total of more than one hundred full- and part-time employees reporting to only six assistant department managers. This is also a very commonly used functional structure. For example, employees who work the front of theShow MoreRelatedPublix : Principles Of Management And Leadership2626 Words   |  11 PagesBUS 270 Mrs. Francis 30 April 2015 Publix - Principles of Management and Leadership A General Overview Publix is an employee-owned supermarket chain that is said to be the largest of its kind in the United States. Its operations span throughout the southeast region, with locations in Tennessee, Florida, Georgia, Alabama, North Carolina and South Carolina; with Florida having nearly half of the company’s operating base. 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