In 1962, the Mercedes Benz was established as a subsidiary of Daimler Benz. The headquarter of the company is located in Stuttgart Baden-Wurttemberg, Germany. It is the first automobile company in the global automotive industry.
Market Penetration
Despite the overall difficult situation, the Mercedes Benz cars have created a sales record of 2,382,800 in 2018. This is for the third time that, Mercedes has become the strongest premium brand in the automobile market by maintaining a high sales record in the whole automobile industry.
The company has planned to increase its sales target other than Europe that’s why it is focused to strengthen its business activities in the largest international market “China. Since 2018, the company is continually operating its successful business in China. The company has earned a significant position in the Chinese automotive industry by selling more vehicles units. Currently, nearly two-third units of Mercedes Benz cars are locally manufactured in China. Today, long and short versions of new E-Class and C-Class as well as GLC and GLA SUVs are being produced in China. To launch Battery electric automobile, the Mercedes-Benz company has joined Chines battery and car producer BYD. With the help of the market penetration strategy, there has been ten percent growth in the unit sales of China, 1% in Korea and India and 5% in Thailand. After analyzing the current market situation it has been observed that the production of SUVs and E-Class Saloon and Estate have significantly increased the sales record of Mercedes Benz across the world. Moreover, by using a market penetration strategy, the owner of the Mercedes Benz “A Daimler” has decided to use the brand name of Mercedes Benz and Bharat Benz to penetrate the Indian Premium bus segment and the volume bus segment (Daimler, 2019).
Product Development
The managers of Mercedes -Benz are constantly working to improve its first-class products and services, competitive cost framework, supple methods, and consumer-based trade company. The latest products and services of Mercedes have created specific benchmarks in planned future based areas of connectivity, freedom of driving, tensile use and electric drive systems. All these fields are compiled in acronym CASE. Since the past few years, Mercedes Cars Company is planning to achieve a dominant position in every future- based field and on connecting these fields to produce outclass goods, services, and business structures. For example, in 2016, the cars company focused on the innovation of new E-Class whose safety systems and pioneer assistance has promoted autonomous driving. In 2017, the car company has introduced two more E-Class systems that include E-Class Coupe and E-Class Cabrio. Besides this, Mercedes has launce its EQ brand in 2016 and a new fuel cell car according to Mercedes GLC in 2017. Moreover, the company is planning to produce more than ten electric cars by the year 2025. Mercedes is constantly reshaping its architecture and constituent plan. Due to the successful execution of modified standards and elements in the construction machine, the company is decreasing its operating and fixed cost with an increase in profit margins (Buss, 2016).
Market Development
The car company is protecting the future of its Germen plants through substantial repositioning. On the other hand, Mercedes is growing its developmental structure at an international level. For instance, Mercedes has established its new service Center in Kecskemet, Hungary. In 2019, the car company has installed four-cylinder engines at its new business unit in Jawor Poland and Kamenz Germany. The company has reported a total investment of €1billion on battery production activities in both Poland and Germany. The Mercedes international market development plan is based on three components that involve; marketing plan for international growth, growth, and differentiation of product equities, expansion, and management of consumer-oriented and holistic strong solutions. Mercedes has increased its product portfolio by introducing Mercedes-Benz X-Class that was exported to Europe, Latin America, South Africa, Australia and New Zealand (Buss, 2016).
Diversification
With the global plan of Mercedes Benz vans, the company has planned to expand its business in new markets. For example, in 2015, the firm has introduced its new plant “Metris” in North Charleston, South Carolina to expand its sales in North America. In the future, the company is planning to establish its business in Emerging markets to double its sales record (Daimler, 2019).
References
Buss, D. (2016). Mercedes-Benz Growth Strategy Helps Luxury Automaker Regain Global Lead. Retrieved from https://www.brandchannel.com/2016/09/29/mercedes-benz-growth-strategy-092916/
Major Markets. Mercedes-Benz Cars. (2019). Retrieved 11 January 2020, from https://www.daimler.com/investors/key-figures/major-markets/