Premium Essay

Mercedes Goes After Young Buyers

In: Business and Management

Submitted By Sreela
Words 485
Pages 2
Mercedes Goes After Younger Buyers.

Mercedes and BMW have been competing head to head for market share in the luxury-car market for more than three decades. back in 1959,BMW almost went bankrupt and nearly sold out to Daimler –Benz, the maker of Mercedes –Benz cars. BMW was able to recover to the point that in 1992 it passed Mercedes in worldwide sales. Among the reasons for BMW;s success was its ability to sell models that were more luxurious than previous model but still focused on consumer quality and environmental responsibility. In particular, BMW targeted its sales pitch to the younger market, whereas Mercedes retained a more mature customer base.
In response to BMW’s success, Mercedes has been trying to change their image by launching several products in an effort to attract younger buyers who are interested in sporty, performance-oriented cars. BMW, influenced by Mercedes , is pushing for more refinement and comfort. According to expert , the focus is still luxury and comfort for Mercedes while BMW focuses on performance and driving dynamics.
Even though each company produces many different models, two relatively comparable coupe automobiles are the BMW 330ci and Mercedes CLK320.
Mercedes is concerned that dealer price of the CLK 320 is not consistent and that even though the average price is $43,215, the price is actually normally distributed with a standard deviation of $2,981. Whereas BMW’s price also normally distributed with average price $34,990 and standard deviation of $2,367. 1.) What percentage of Mercedes dealers are pricing the CLK 320 at more than the average price for a 330ci? 2.) Mercedes believes that at $ 42,000, the CLK 320 is priced out of the BMW 330ci market. Comment 3.) Suppose a BMW dealer is selling a 330ci for $ 37,059, what percentage of Mercedes dealer prices the CLK 320 less than this price?


Similar Documents

Premium Essay

Mercedes and Bmw (Bayerische Motoren Werke) Compete in the Luxury Car Segment

...middle, upper middle and high. The responses of the 751 graduates were tallied into a table. SCHOLASTIC ACHIEVEMENT INCOME LEVEL LOW LOWER MIDDLE UPPER MIDDLE HIGH TOTAL Above average 22 31 31 8 92 Average 67 80 73 17 237 Below average 124 161 122 15 422 Is there a relationship between scholastic achievement and level of income? Test this relationship at a 1% level of significance. (Table value: Chi square with 6 df at 0.01 level of significance = 16.81189) Probability distribution - Continuous Mercedes Goes after Younger Buyers Background • Mercedes and BMW (Bayerische Motoren Werke) compete in the luxury car segment • 1959 BMW was bankrupt but in 1992 it overtook Mercedes in sales • Reasons for success • Luxurious models • Consumer quality • Environmental responsibility • Younger customers – refinement and comfort • Focus on performance and driving dynamics • Coupe – 330ci - $34990 – 30 miles per gallon (highway) and 20mpg (town) • Mercedes • Changing...

Words: 588 - Pages: 3

Premium Essay

Quantitative Business Management

...ASSIGNMENT 2 Q1. GENDER EQUITY IN THE WORKPLACE * Gender Discrimination in employment – Title VII of the Civil Rights Act * Equal Employment Opportunity Commission * HR data on gender POSITION | GENDER | TOTAL | | Male | Female | | Managerial | 8 | 3 | 11 | Professional | 31 | 13 | 44 | Technical | 52 | 17 | 69 | Clerical | 9 | 22 | 31 | Total | 100 | 55 | 155 | a) What is the probability that a worker is a woman? b) If a managerial person is selected, what is the probability that the person is a woman? c) A special bonus is given to a person in the technical area – what is the probability that it will go to an woman given that the worker is in the technical area? Is this discrimination against male technical workers? What factors might enter into the awarding of bonus other than random selection? d) What is the probability that a professional person will be a winner to Hawaii? e) What is the probability that the winner will be either a man or a clerical worker? f) What is the probability that the winner will be an woman and in management? g) Suppose the winner is a man. What is the probability that he is from the technical group? Q2. Probability Distributions - Discrete BANKING INDUSTRYs PUBLIC IMAGE * Gallup Survey of 1002 bank customers * 80% bank their primary financial institution * 65% very satisfied with the bank * 79% banks are very important * 64% banks are more competitive......

Words: 848 - Pages: 4

Free Essay

Pestel Analysis

...PESTEL Analysis Political Factors: Political factors greatly affect the automotive industry. President Obama has recently announced new efforts to further fuel efficiency standards for medium and heavy duty trucks. This category ranges from large pickup trucks and school buses to the massive 18 –wheeler tractors. The new standard is expected to increase fuel efficiency between 9% and 23% with the largest trucks receiving the largest reductions (23%). This standard will be applied to 2014 – 2018 models and estimates $50 billion in savings for truck users in fuel over the lifetime of the vehicle. The new greenhouse gas standards will become final by March 2016 (Eilperin, 2014). Another long term plan was introduced by the White House states agreements were made between the president and 13 automakers to increase fuel efficiency to 54.5 miles per gallon for cars and light trucks. This plan is expected to be fulfilled by year 2025. A list of the automakers is as follows, Ford, GM, Chrysler, BMW, Honda, Hyundai, Jaguar/Land Rover, Kia, Mazda, Mitsubishi, Nissan, Toyota, and Volvo. Combined these companies account for 90% of vehicles sold in US. Achievement of both plans (most formerly mentioned) estimates that consumers will save $1.7 trillion at the pump or $8K per vehicle. Disposable income, and in turn, economic growth is expected to increase and create quality domestic jobs within cutting edge industries across the country. Additionally, these standards also reduce......

Words: 2746 - Pages: 11

Premium Essay


...1.2 Table of Contents 1.2 Table of Contents 1 1.3 Acknowledgement 2 1.4 Summary/Abstract 3 2.0 Brand #1 Mercedes Benz 2.1 Introduction to Mercedes Benz 4-5 2.2 Mercedes Benz History and Development 5-9 2.3 The Macro-environment 10-12 2.4 Organizations within the industry 12-16 2.5 Strengths and weaknesses of Mercedes Benz 17 2.6 References 18 3.0 Brand #2 Toyota 3.1 Introduction to Toyota 19-20 3.2 Toyota History and Development 20-23 3.3 The Macro-environment 24-29 3.4 Organizations within the industry 30-31 3.5 Strengths and weaknesses of Toyota 32 3.6 References 33 4.0 Comparison between brand #1 and brand #2 34-35 1.3 Acknowledgements This assignment has been done for our subject Fundamentals of Marketing (BM101), at UCSI University. At this time we would like to acknowledge the advice and support of our lecturer Ms. Nazliwati Mohammad. We also acknowledge that some of the material for this assignment has been derived from other sources, all of which are included in our respective references. All group members have worked effectively and cohesively in this project and share equal contribution. 1.4 Summary/Abstract In this assignment we will be analysing two different car manufacturers. The brands we have chosen are Mercedes Benz and Toyota. In this report we will be presenting the brands’ history and development, the macro environment affecting them, and their......

Words: 9079 - Pages: 37

Premium Essay

Examination of the Potential Consequences for the Jaguar Brand Resulting from Its Takeover by Tata Motors of India.

...Examination of the Potential Consequences for the Jaguar Brand resulting from its takeover by TATA Motors of India. Pg.-2 Acknowledgements: This research would not have been possible without the support and assistance of Mr. Gareth Williams, the dissertation supervisor. I am also very grateful to all the experts at Audi, BMW and Jaguar Dealerships (Leeds) and to the people who agreed to share their views with me which assisted in the research process. Pg.-3 Table of Contents Pages Acknowledgements 2 Abstract 4 1. Introduction 6 2. Literature Review 10 2. (A) what is a Brand? 2. (B) why is Branding important? 2. (C) Branding of Cars 2. (D) The issue of Declining Brands 2. (E) Country of Origin 3. Research Methodology 21 4. Research Analysis and Findings 35 5. Conclusions ...

Words: 16736 - Pages: 67

Premium Essay


...migration is given credit for the rapid growth of these European countries. The implication of the economic growth of European countries was that firms were now able to access foreign markets that seem impossible to access. This ambition to conquer foreign markets is what has driven firm to venture in new market. It is the basis of international trade through which powerful nations become wealthier. As one economist and entrepreneur addressed the matter: ” there is no longer any such thing as a purely national economy. The rest of the world is just too big to ignore as a market or as a competitor. If business schools do nothing other than to train their students to think international, they would have accomplished an important task “John Young, CEO, Hewlett-Packard The impact of Europeanization is that the European firms were now able to access cheap labor. Since a nation won’t be able to produce all the goods for its market, countries around the world now have to incorporate...

Words: 1506 - Pages: 7

Premium Essay

Marketing Potfolio

...KARELIA UNIVERSITY OF APPLIED SCIENCE International business Sukhanova Taisiia 1301237 MKBNS13 PORTFOLIO ASSIGNMENT September-November 2013 Chapter 1. Recently, I bought a Smartphone for myself, so here the short report about it. Product: Smartphone HTC one S. Features: The main reason for buying this phone was the price and design. I was really satisfied with the price, it coasted only 14.000 rubles, and it has a classic but really attractive design. Benefits: I was kind of surprised when I start used it, because it has so many functions and different useful programs, such as dropbox, polaris office, goggle map and so on. Disappointments: The one thing that really disappointed me was the camera. The qualities of taken pictures are so bad and also this Smartphone as all these new devices don’t have a life-long charge. Recommendations: Well, if this company wants to have a loyalty relationships with their consumers they should improve like a lot in their phones, for example make the camera more powerful and maybe add some colors to their design such as red, blue, pink, green e.t.c. so it will look more positive. Chapter 2. In my opinion, business ethics is important in providing a foundation for understanding how to succeed in business. Codes of ethics are generally used in the business and professional......

Words: 5003 - Pages: 21

Premium Essay

Capitalism: A Love Story

...make you feel so fired up while watching. After the little advisory, there are various clips of robberies and burglaries that were caught on camera showing people stealing money. At first, I wondered how these clips have a connection with a movie about capitalism. Then it came to me that maybe these people have to resort to stealing because the government is not helping them....

Words: 1961 - Pages: 8

Premium Essay

Bmw, Mp

...| | |BMW AG | |Marketing Plan | | | | | |Robbie Johnson, Paul Vitale, Tim Lyons, Nathan Davis, and Laura Rusbarsky | | | Executive Summary Plan Overview: • We made sure to do the SWOT Analysis for BMW. Our strengths are our brand recognition and reputation for quality while our weaknesses are our high repair costs and vulnerability to currency fluctuation. Additionally, our opportunities are increased media attention on the 2012 Olympics and the BMW Championships golf tournament (both of which we sponsor) and our threats are the rising cost of fuel and the severe economic......

Words: 8773 - Pages: 36

Premium Essay

International Marketing

...International marketing Introduction to Global Marketing (polycopié 1) fidéliser les clients : to build customer loyalty un ensemble de : a set of Définition d'un marché : A market is a set of actual and potential customers. Actual customer is the customer that the company already have. One product is design for one market. One product is design for a set of customers. Market are customers. The marketing process : 1 – Analysis => SWOT analysis - company strenghs & weaknesses (internal analysis) - market opportunities & threats (external analysis) 2 – Planification => setting goals => designing strategies 3 – Implementation => implementing Marketing mix strategies 4 Ps : Product, price, place, promotion 4 – Control => making sure strategies have delivered expected results Global marketing Global marketing is the coordination of marketing activities across various countries that satisfy customers needs. To go global : selling products on a worldwide basis. A) Why do firms go global ? Brand image : a set of mental representations that customers have about the brand. Survival and growth - limited growth in domestic markets eg (équivalent de exemple : exempli gracia en latin) : Nestlé - High growth potential in emerging markets emerging markets : have a fast growth eg China's growth rate around 8 %, BRICS Gaining increased competitiveness - Achieving economies...

Words: 3798 - Pages: 16

Premium Essay

International Business Strategy of Volkswagen

...2012 International Business Globalization - Volkswagen Akshayita Saxena Anirudh Kunjal Avinash Unni Nair Nilisha Aggarwal Rahul Raghunathan Raj Jatheendran Santosh Gaurav Volkswagen – Das Auto INTRODUCTION : A BRIEF HISTORY Volkswagen, in English, translates to “people’s car”, and the German Labour Front originally founded this company in 1937, with the sole purpose of manufacturing cars for the common man, in a German car market dominated by luxury cars. The People’s car, available at a mere 990 Mark, was positioned around factors such as better fuel efficiency, reliability, ease-of-use and economy of usage. Its first prototype, the kdF-Wagen, had a distinctive round shape to its design (the Beetle continues with this design even today) and had about 336,000 takers. By 1946, the Wolfsburg factory was producing close to 1000 cars a month, a remarkable feat in those times. Post the 2nd World War, Volkswagen served as an icon for the resurrection of West Germany, and showed signs of international expansion by selling its first model in the United States of America in 1949, and its sales services were standardized there by 1955. The Golf Type-I model, was given the title “Beetle” by the quirky, hugely popular advertisement campaigns run in the U.S. then, and was officially adopted by Volkswagen only in 1998. By 1961, VW expanded its production line to include Type-III and Type-IV models, and in 1964, VW bought over the Auto Union and the NSU, successfully creating a......

Words: 6449 - Pages: 26

Premium Essay

Ford Go Green

...Strategic Business Units = GO GREEN 2. Directions and development methods V. Assessment of Alternatives 1. Cost / Benefit Analysis - Alternatives 2. Implementation Timeline 3. Expected Results VI. References I. Who Are We ? 1. Background Henry Ford founded the Ford Company in 1903. Despite a difficult start, he created 19 new models in the first five years. The company already had an international aspect even then since the rubber is imported from Belgium Congo. Success finally came with the Ford T in 1908, so much that any advertisement was unnecessary. To produce this model, H. Ford instituted the practice of large scale manufacturing of car and management of industrial Work forces. Such method was named after him, Fordism, in 1914. Nowadays, Ford is stretched across six continents though it operates mostly in Europe and North America. Its headquarters are in Michigan. We can also safely state that it is one of the largest automotive manufacturers in the world. It employs around 176000 people. 2. Product line In the automotive industry, the easiest way to do segmentation is to classify the cars according to the type of its...

Words: 3516 - Pages: 15

Premium Essay


...toward the realization of a society in which each individual can live with dignity and hope. To this end, we support efforts to activate the wisdom found in everyday life and to build a good society through mutual support and collaboration among neighbors. Searching for the Art of Living Better In today's globalized world, nature is on the verge of crisis, while culture is undergoing a rapid transformation. We wish to contribute to the creation of a beautiful environment and dynamic local culture by nurturing relationships with the people of the world and learning from nature's wisdom, so that everyone can enjoy a compassionate and fulfilling coexistence. Toward a Fulfilling Future We support initiatives to enrich the lives and minds of young people, with the aim of fostering the next generation, on whom the future depends. We hope that this will enable the next generation to respect each other's cultures from a broader perspective and to forge a path to the achievement of lasting peace. SWOT ANALYSIS Strengths: 3 TOYOYA MOTORS y y y y New investment by Toyota in factories in the US and China saw 2005 profits rise. Diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. Many are now saying that Toyota...

Words: 1712 - Pages: 7

Premium Essay

Hunter Boot Ltd. Case Study Report

...Comparative and competitive advantage 4 2.1 Comparative advantage 4 2.2 Competitive advantage 5 2.3 Hunter Boot Ltd. and competitive advantage 5 3. Market screening 6 3.1 Asian market 7 3.2 Screening criteria for Hunter Boot Ltd.’s selection of new markets in Asia 7 4. Market Entry Mode 7 4.1 Hunter Boot Ltd. and entry mode 8 5. The 4 P’s of Marketing 9 5.1 Hunter Boot Ltd.’s two most important P’s 10 5.1.1 Product 10 5.1.2 Pricing strategy to differentiate Hunter products 11 6. Conclusion 11 References 12 1 Introduction This paper looks into different aspects of Hunter Boot Ltd. and its possible expansion to the Asian market. The paper’s content is based on a case study prepared for a Webinar April 12th 2013. The report goes through Hunter Boot Ltd.’s history, theories of comparative and competitive advantages, market screening criteria, Asian market, entry modes and how Hunter Boot Ltd. could apply these theories in order to enter Asian market. Lastly, the report is finished with a short summary of the subject. In recent years, an increasing number of key industries such as automobile and motorcycle production, agricultural equipment, aerospace, military hardware, telecommunication, electronics and luxury consumer goods have become global in scope. Firms in these industries originate, produce, compete, and market their products worldwide. (Mahajan, Muller, Wind, 2000). 1.1 History of Hunter Boot Ltd. Hunter Boot Ltd. has merged......

Words: 3058 - Pages: 13

Premium Essay

Luxury Watches

..................... 3 LUXURY BRANDS AND THEIR POSITIONING ..................................................................... 5 ANALYSIS OF THE LUXURY WATCH INDUSTRY........................................................ 7 3.1 THREAT OF NEW ENTRANTS .......................................................................................... 9 Capital requirement ............................................................................................ 9 Brand recognition ............................................................................................... 9 Distribution........................................................................................................ 15 3.1.1 3.1.2 3.1.3 3.2 BARGAINING POWER OF BUYERS ................................................................................. 17 Established brand............................................................................................. 17 Newcomers....................................................................................................... 18 3.2.1 3.2.2 3.3 BARGAINING POWER OF...

Words: 34176 - Pages: 137