Mercedes-Benz India - Targeting a Younger Segment without Diluting the Brand

iD Fresh Enters the Traditional Beverage Segment through its Filter Coffee Decoction
Case Code: MKTG427
Case Length: 9 Pages
Period: 2015-2020
Pub Date: 2020
Teaching Note: Available
Price: Rs.250
Organization : Mercedes-Benz India Pvt. Ltd.
Industry :Automotive
Countries : India
Themes: Brand Strategy/ Market Segmentation/ Marketing Communication/Consumer Behavior
iD Fresh Enters the Traditional Beverage Segment through its Filter Coffee Decoction
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

The case study “Mercedes-Benz India – Targeting a Younger Segment Without Diluting the Brand” describes how Mercedes-Benz India Pvt. Ltd. (Mercedes-Benz India) regained its leadership position in the luxury car segment in India. Mercedes-Benz entered India in 1994, the first luxury car brand to do so. Despite this, Mercedes-Benz India fell behind BMW and Audi, its fellow German luxury car brands, in terms of volume sales between 2009 and 2014. The primary reason for the dip in sales was the company’s image as a luxury brand for the rich older man.

The case looks at how the company took various initiatives to attract the younger demographic audience and reinvented its brand image to regain and consolidate its leadership position. The case study details the various targeting strategies that Mercedes-Benz India adopted including revamping its product portfolio with compact and sporty models, introducing customer-friendly in-house finance schemes to prospective younger customers, and using an omni-channel approach to promotion.

The case also focuses on how Mercedes Benz India made use of digital technologies in its product, service, and marketing to offer enhanced personalized services to its customers, especially the younger segment. These included the launch of an e-commerce website for online sales of used and brand new cars; equipping vehicles with connected features, a digital sales program, and introduction of a contactless vehicle service and repair program. The case ends with a look at the company’s plans to grow by expanding its target segment to include women customers, looking at the opportunities in tier II and III cities, and focusing attention on the retail experience online and offline in relatively untapped markets.

Issues

The case is structured to achieve the following teaching objectives:

  • Learn how companies can compete more effectively and build strong brands by embracing target marketing.
  • Understand the importance of segmenting customers.
  • Learn about the criteria for effective market segmentation.
  • Become aware of using digital technologies at all customer touch points.
  • Understand the challenge of brand repositioning without losing brand equity.

Contents

Keywords

Brand Strategy; Customer Relationship Management; Personalized Services; Marketing Communications; Customer Experience; Digital Technologies; Segmentation Strategy; Brand Building; Product Launch; Brand Repositioning; Consumer Attitudes; Purchase Behavior;

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