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Using Segmentation Marketing Mercedes-Benz A Success Story.
Marketing Segmentation key to profitability without losing Prestige.
Mercedes-Benz and other German luxury car brands are examples of choice in the premium segment offering a method to get a younger less affluent consumers using segmentation marketing Three German brands Audi, BMW and Mercedes Benz offer a cost effective method of getting a younger audience without losing the prestige of the brand.
Mercedes-Benz, BMW and Audi have decided to go further in the customer life cycle and tap into a demographic Mercedes-Benz younger consumers, BMW and Audi seeking to influence a younger audience away from companies like Ford GM, Toyota and Chrysler, using a variety of methods.
Start by giving us a definition of marketing segmentation Philip Kotler one of the legendary figures in marketing.
Market segmentation is the subdivision of the market into homogeneous sub-sections of customers, where a subsection may possibly be selected as the target market to reach with a mixture of separate marketing.
The target audience includes consumers from the age in the early twenty-forties with an estimated market size to 75 million potential customers with marketing generations Segmentation provides a way to reveal the untapped potential of the target audience and millennial Generation X.
The main motivation for entering the youngest demographic is the importance of market size that makes it very attractive for these automakers luxury.
Mercedes-Benz, BMW and Audi use similar strategies for carmakers mass market strategy that automakers the most massive market use involves the provision of a product to consumers throughout their lives with products progressively higher prices that the consumer up the income brackets.
The challenge for luxury brands is how to appeal to a younger demographic without losing the prestige of the brand, risking the loss of its main customers.
The main methods to attract younger consumers and less rich were the introduction of new models or product line extensions with a lower price.
A lower price reduces the barrier to entry, and the objection prices for the less fortunate customers while leveraging the appeal of the luxury brand.
Mercedes-Benz launched the CLA at a slightly starting price less than 30,000 BMW launched a new series 3 with a bit starting price less than 33,000 Audi has launched a new A3 sedan from just under 30 000 in direct competition with the other two German manufacturers.
Other methods to influence young audiences include the size and style of the new vehicle.
Mercedes-Benz began marketing segmentation use process to reach a younger audience in 2010 with the creation of generation Benz online community of about 200 to 250 people between 20 and 39 years This online community provided advice to Mercedes-Benz marketing team about the buying habits and preferences of this demographic.
The new generation Benz online community helped to generate a customer profile for the Mercedes Benz company leveraged the community insight to create a successful marketing campaign launched CLA Mercedes.
The campaign Mercedes-Benz has created, included a Super Bowl ad with Usher and Kate Upton, not to mention the stage of the Super Bowl was played in was sponsored by Mercedes-Benz Mercedes-Benz Superdome in New Orleans.
Mercedes-Benz digital and social media channels to target with a mixture of the millennium of earned media, paid media and media belonging to reach key influencers in the target demographic to create awareness and ultimately the equity account Mark.
Mercedes-Benz uses digital media with extensive use of microsites for each product line social media channels including YouTube, Twitter, Facebook and Instagram are also used to raise awareness around the campaign, such as clatakethewheel campaign targeting the early 20s to early 40 demographic.
Mercedes-Benz has paid media, such as Facebook paid ads targeted to the early 20s to early 40s and the millennium generation x demographics The paid ad could be seen in the target's news feed linked to a video piece Content good product to create a virus response.
Mercedes-Benz has used a content marketing strategy using a convergent approach specific media to win a younger audience The earned media component involves a partnership with Casey Niestat, one of the key influencers in this demographic group providing a place fresh, a little edgy, adventurous and authentic image of the product.
Casey has created several videos for Mercedes-Benz, including Facebook paid ads Casey is a key influencer creates from millennials content.
Mercedes-Benz in partnership with the five most popular photographers to share the new model of CLA Mercedes-Benz has created a documentary style video interview with celebrity guests involving Tinie Tempah and Daisy Lowe discuss fashion and style while driving the Mercedes-Benz A-Class organized by Reggie Yates.
Segmentation combined marketing to media convergence approach in a content marketing strategy provided these victories below to the brand and the CLA product marketing campaign.
Reducing the average age of Mercedes-Benz customers The average age of the typical customers of Mercedes-Benz is 57 years old and the average age of clients is 46 CLA.
Conquest rate of 82 percent; the percentage of new buyers who have already selected another brand.
Mercedes-Benz has had more visitors than any other time in the previous story.
Mercedes-Benz has a million visitors view the content of CLA online.
Consumers have built 342,000 models of CLA on the site.
CLA has been the best product launch for Mercedes-Benz in the past 20 years.
The Mercedes-Benz example gives a unique insight into how a premium brand can engage a younger demographic group remains true to its brand strategy, and increased sales with the marketing segmentation An approach more traditional helps explain the approach of Mercedes-Benz and key marketing elements used to achieve a target younger audience.
The comments of an online community is essential in supplying Mercedes-Benz with the insight necessary to achieve a demographic heritage and remain faithful to his young Mercedes-Benz offers an example of the main advantages for market research as the foundation the success of the marketing strategy.
Mercedes-Benz has used a combination of price and product as well as the convergence plan digital social media media and a unique creative strategy to reach its target audience younger point of 29800 departure, elements of attractive style, and product size removes barriers to purchase and deliver significant value for its target consumer.
Brand strategy and integrated marketing communications.
The brand and creative strategy used by Mercedes-Benz is a shining example of a BMI integrated marketing communication approach integrates the new Mercedes-Benz RBIs and prices in a way that is not seen as degrading the prestige of the brand and communicate the same brand messages across multiple platforms by engaging the target audience.
The approach of the Mercedes-Benz media plan includes a mix of property, paid and earned media using social media and digital key influencers in the younger demographic has provided essential in choosing the correct creative strategy plan and the media who engage with brand messages that resonated with a younger target.
Mercedes-Benz is an example of how a luxury brand can effectively segment and target a different audience without losing its prestige Mercedes-Benz brand had failed in this area before, but had learned from their past mistakes.
It was not a revolutionary approach invented Mercedes-Benz, but rooted in good strategic planning in the former and execution based on a thorough market research of the target audience Other planned premium brands can take note of this excellent study of cases and to use for example as Mercedes-Benz path to move into new segments successfully.
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Longert, R, 2013, August 7 How Millennials in Mercedes brand advocates Retrieved from.
Neuman, B 2014, April 25 Mercedes-Benz Shakes its marketing strategy to target young Retrieved from.
Turkus, B 2013, December 13 CLA Mercedes-called best start in 20 years as it warns against tight supplies dealers Retrieved from.
How to use the Blog Marketing Segmentation Marketing Mercedes-Benz A Success Story Stephen Zoeller, marketing, segmentation, success.