Abstract

Mercedes-Benz, known as a premium car manufacturing company, started targeting other segments of the car market in the early 1990s. The caselet analyzes the reasons for the company entering the economy segments of the car market. It also discusses the measures taken by the company to expand its market.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• What were the reasons that necessitated Mercedes-Benz to explore new segments?
• How did the company go about its target market diversification strategy?
• Did the strategy to diversify the target market prove fatal or fruitful for the company?

Keywords

Daimler-Benz AG, Mercedes-Benz, automobile manufacturer, car market, marketing strategy, brand image, marketing survey