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The best or nothing Dr. Farid Haddad Name: Id: Hassan Saad 109073 Ahmed Amr 109014 Ahmed Khalid 109257 Mohamed Bokl 109140 Zeyad Gharib 109308 Mustafa mahmud 109152 The introduction Mercedes is Stolz der deutschen industrie, which means that Mercedes is the pride of the German industry it was established in Stuttgart in 1926 by Karl Benz and gottieb Daimler Mercedes Benz is known by its famous cars , coaches , busses and formula f1 cars , it is known by its strong German engines Mercedes is a well known brand around the world whenever you hear Mercedes you know that you are facing one of the world strongest automobile production in the world. Pastel analysis First the political: Laws and government regulations have affected this industry since the 1960s. Almost all of the regulations come from consumers increasing concerns for the environment and the concern for safer automobiles. Egypt is a stable country political wise not like many other countries like Sudan etc... so there is no fear on car companies here in Europe there has been a new law that the average CO2 emissions from new European cars must be cut to 130g/km by 2015. not like this is happening in Egypt anytime soon but just thought I should mention another thing is taxes and customs they have been increased dramatically during the past few years so the car prices have been going up so many people have decided not to buy because of the price because Egyptians tend to think price wise . Second the economic: The automobile industry has a huge impact on every country’s economy. According to various studies this industry is the major user of computer chips, textiles, aluminum, copper, steel, iron, lead, plastics, vinyl, and rubber. The study also showed that for every autoworker there are seven other jobs created in other industries. These industries include anything from the aluminums to lead to vinyl. Due to the current economic crisis (Recession) Mercedes along with other car manufacturers are finding it increasing difficult to sell cars and many has even closed plants. Especially here in Egypt because the currency exchange rate makes Mercedes more expensive in Egypt and since there is inflation and no rise in salary no will start to buy high priced luxury cars . Social: Today’s society judges people on the type of car you drive. Society does not like to admit to this but it is very true. Manufactures know this happens and targets their markets by these thoughts. Anyone who drives a nice vehicle is thought to be wealthy. No one wants to be seen driving an unattractive piece of junk because of what other people will think of him or her. Consumers also just feel better when they are driving a nice or new car, if makes them feel better about themselves. Mercedes products are mainly targeted at middle aged people. They are not very popular with youngsters as the brand is expensive and is very hard to get at such a young age ,Mercedes aims towards both genders male and female by designing cars that fits both specification and Due to their relative expense, Mercedes are targeted at people of middle to high incomes. Unlike Toyota for instance, Mercedes doesn't offer different prices ranging from high to low so the products don’t really appeal to consumers with a low income. Also Mercedes needs to focus on trend. Mercedes is recognized as a quality, expensive, corporate, up market and mature brand. So need to make sure there update with fashion, technology and social trends, such as the green movement, to maintain its image. This could be done through research and development Mercedes tend to promote their brand on Bill boards, Business newspapers they also offer their own Mercedes magazine . Technological: The internet has affected just about every industry in the world and has also had a huge impact on the automobile industry. A study was conducted by J.D. Power and Associates in 2002 and involved more 27,000 new vehicle buyers. The study showed that 60% of the buyers referred to the internet before making their purchases and out of that 60%, 88% went to the auto websites before going and taking a test drive. Business-to-business marketplaces have given the industry many opportunities because of the internet, such as more efficiency and lower cost. Safety- Advances in technologies such as shatter-proof windscreens, air-bags, crumple zones and collapsible steering columns have made it possible to manufacture safer cars. And also their plant efficiency and service centers are very high and they started producing hybrid cars which are not used yet in Egypt The SWOT Analysis Strengths : Strengths is internal capabilities that may help a company reach its objectives. The strength about Mercedes company is Mercedes company has a very strong brand name in the market which makes it the first choice for people looking to purchase a unique car, with great advantages and also great name and history because when someone goes to buy a Mercedes car he not just looking to the advantages of the car but he also looking to the big history of Mercedes and also the big name and all of these factors makes Mercedes company leading in the car industry. Also Mercedes cars are the safest cars on the road, there are 80% still on the road and this advantage makes them number one in the world. Mercedes cars have a high quality of luxury which makes business men take it as a first choice for them because Mercedes cars provide them a high prestige and comfort that makes them more satisfied. Weakness :- Weaknesses is internal limitations that may interfere with a company’s ability to achieve its objectives. The weaknesses of Mercedes company is the price, Mercedes cars are quite high in prices which make it limited to a certain group of high-class of consumers and this may effect on Mercedes sales. Also the waiting list is one of weaknesses of Mercedes cars, when someone goes to buy a Mercedes car he might have to wait for a long time from 3 to 6 months which make him shift his thinking to another car that he can he get it in a short time as possible . Opportunities :- Opportunities is external factors that the company may be able to exploit to its advantages. The opportunity of Mercedes company is Mercedes company can develop its cars and produce a new editions in different categories of cars to expand it’s market share and develop it to make a good sales and satisfy all customer needs. Also Mercedes company should make sure that the cars that they produce aren’t harmful the environment, they shouldn’t just look forward to make a profits, but they should insure that their cars is don’t affect the environment to share in protect the environment and this will makes the customer thinking to buy it and prefer it . Threats :- Threats is current and emerging external factors that may challenge the company’s performance. The threat of Mercedes cars is the current economic crisis that will affect Mercedes cars sales because Mercedes cars are characterized by high prices as we said before. Also Mercedes company has a very strong competitors that may effect the sales of Mercedes cars like BMW company, Audi company, and Volkswagen company and all of these companies have a high quality but also it is not like Mercedes quality but it is may be less than Mercedes cars in the price. Also new competitors are entering the market with low-price cars, which might impact Mercedes sales negatively and for example of new entering competitors there are many competitors like Hyundai company, Chevrolet Company, and Hound company that produce a cars with low-prices that enables the customer to buy it to make a profitable but also with a low quality compared to Mercedes cars. Competition • German cars are the best cars all over the world in the quality, safety, stability and many other things. Especially the Mercedes is in the lead in German which makes the company have many competitors in German. • High quality and service is one of the important competing point where they do have separate department to experiment quality of the car i.e.,tiers, engine and driving comfort and develop according to the standards. • Mercedes-Benz service is 24 hours to serve their customers anywhere. They have hotline for service(008001777-7777*) and they will respond to their customers and arrange for rapid assistance. • Luxury and comfort is one of the important competing point where Mercedes take care of this to differentiate from other competitors • Mercedes got her own Safety concepts which make the company is the best in Safety,, it have four concepts which are During the trip, and a means to help the driver to select the critical cases immediately and deal with them safely. In the second phase, in the case of danger, and can activate many of the preventive measures to reduce the risk of injury. In the event of an accident, passengers can benefit from the protection and effective individual provided a comprehensive set of passive safety systems. Finally, the fourth element includes the stage after an accident, for example, when it is activated automatically flashes a warning to reduce the risk of new incidents • Resale value is one of the advantages to the product where the product can be sold for a good value as the performance of brand and product is good. • Mercedes will stop manufacturing the cars in Egypt, and their cars will be made totally in Germany and then shipped back to Egypt, which means the company will control their products and the costumer will fell more Safe because the products will made in its home country and it will have more options with more efficiency, and that will give Mercedes in Egypt anther strong competing point. Comparing with BMW VS. • Price: BMW is cheaper but Mercedes got a higher quality and more luxuries. • Safety: in safety. Mercedes had a better history were it was one of the first to introduce anti-lock brakes and airbags to the North American market. Category Mercedes Benz(c180) BMW( 316i) BMW( 318i) • Price 300,000LE 240,000LE 285,000LE • CC 1,600CC 1,600CC 2,000CC • Horse Power 156HP 115HP 136HP • Cylinder 4 4 4 • Acceleration(0-100 Km/h) 9.5sec 11.6sec 10.8sec • Top Speed 230Km/h 206Km/h 208 Km/h • CO2 Emission 155-162g/km 180g/km 187g/km • We can conclude from Carbone dioxide emission that Mercedes is mre friendly to the environment. • From all of this Advantage that’s why Mercedes is a successful company and preferable to the costumers. Mercedes (marketing mix) The four Ps of marketing mix : The controllable tactical marketing tools that Mercedes use to differentiate it’s product in order to create a market share, and to attract customers to buy Mercedes cars. Mercedes Benz offers a high quality of product and a suitable price for the target customers, having branches all over the world which make Mercedes one of the most success companies globally. Price: Mercedes have a price strategy to penetrate the market. They know the market and set a price strategy to penetrate the market. Off course the prices of Mercedes cars are high, but in return customers have the best of what they need. Comparing with other cars mercies’ cars have the highest prices then other competitors. Mercedes installment system for customers to pay in periods and affordable Credit terms. Product: Mercedes offers a high quality of products, Methods used to improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage. Extension strategies Specialized versions New editions: about an every year Mercedes offer new editions for all car categories with Different prices to be suitable for all the market segments. Changed packaging. Technology: Mercedes offer a high technology in their cars to insure a high level of Comfort to their customers. Mercedes-Benz also made a choice in favour of quality and safety, reliability and design. You can trust Mercedes-Benz Genuine Accessories. From the hands-free system to the all other accessories, every single item is perfectly designed to suit to your vehicle. Promotion: Mercedes have special offers, promotions, using best techniques to advertise to their products (Leaflets and posters), and offer a free gifts for their customers. Mercedes not just advertise for their cars. Mercedes set a strategy to make the consumer aware of the existence of a product or service, star EGYPT comes to demonstrate that Mercedes-Benz is also about lifestyle, entertainment, people, and events. Place: Mercedes have branches all over the world which make it a global company and have market share in many different places in all the country, establish channels for communications in different locations. Mercedes-Benz Retail network in Egypt currently consists of 3 Authorized Sales and After Sales Dealers with 5 sales showrooms and 3 Authorized Service workshops. The network will further expand by 2010 by opening 3 new showrooms & service facility . Environment: The (true blue solution): Individual sustainable mobility at a high level is not just our responsibility but our standard for the future. Mercedese’s comprehensive approach includes the entire process – from selected raw materials in production, to economical and low-emissions operation, all the way to recycling. We call this True Blue Solutions. Find out more about this topic in our web special . Mercedes offers cars that are “engineered like no other car in the world,” stressing engineering design, performance, and safety. Buckley’s Mixture took its most recognizable quality, the bad taste of its cough syrup, and turned it into an award-winning campaign linked by the tag line, “It tastes awful. And it works.” Emotional appeals attempt to stir up either negative or positive emotions that can motivate purchase. Communicators can use such positive emotional appeals as love, pride, joy, and humour. Advocates for humorous messages claim that they attract more attention and create more liking and belief in the sponsor. Consumer How Mercedes Company create value for customers' Innovation, fearless spirit and intimate marketing approach all have helped Mercedes in the re-emergence and the success on the digital scene. The digital strategy is informed by three key brand elements which are • Innovation • Trend-setting • Enduring style Using these three brand elements, Mercedes is able to show self expression and customer intimacy to win its competitors and to woo the digital native cohort. Consequently, Mercedes is establishing a strong presence on industry. Customer Intimacy: The formation of long-standing collaborative relationships with consumers who hold influence with a brand’s core audience. Mercedes is always trying to seek the fruits of innovation. Here the word fruits show that not only Mercedes innovate new things, but also chooses the best needed options for customer’s intimacy. China has other opinion. Not only small cars are the solution for an energy saving society, but also big displacement cars like sedan and luxury cars could be useful for our environment. The new approach is that cars devote themselves to fuel-efficient and emission free mobility. This was shown in Beijing auto show which represented 990 international and domestic cars to visitors with the slogan (for greener tomorrow). According to a recent survey by Ernst& young’s global automotive center, 60% of people in China would consider purchasing a hybrid or electric cars in the future. This was 5 times higher than similar surveys done in Japan and US. As a result, the head of Mercedes Benz said that China is the most promising market for new energy vehicles, so the company decided to manufacture a new brand for the local market. Green luxury: Mercedes offer green luxury cars for China not only for the expansion of its product portfolio, but also to provide eco-friendly technologies to its customers. Mercedes offered the S400 hybrid which was introduced last August in China This was successful and then Mercedes had the confidence to innovate some models like E200 CGI & E260 CGI & E260 CGI coupe for greener offering. E260CGI E260CGI coupe Customer servey of Mercedes Benz What is your opinion about mercedes cars' This bar shart lead us to know that Mercedes cars have an excellent ripitetion in (quality, performance, luxury, and options). Almost of customers aren’t highly satisfay with (price and categories). Mercedes Benz Customer Services: This graph show us that mercedes have many branches in egypt while customer services should be better BMW VS. Mercedes Benz