Aim of the marketing technique is to fulfill the marketing objectives, which are achieved through the use of the 4P’s Item, Cost, Place &amp Promotion.

 

2      Item

 

2.1.1 Specification

“Markets do not stand still. Firms must adapt their present offerings or create new ones in response to changing consumer wants, or take benefit of new ones in response to changing consumer needs”

 

The X-Class has two tanks 1 which holds fuel and the other gas, and there is a switch that the driver can press to activate the needed source of power.

 

The new Mercedes X-Class is set to revolutionize the way in which we drive. The 2.2 liter 276bhp engine will be to run on both LNG (Liquefied Natural Gas) and standard unleaded petrol. The consumer will have the benefit of decreasing fuel costs between 30 and 45% compared with petrol, however the consumer still has the ability to use unleaded petrol really should the require arise. It can also be said that those estimated costs in reduction in fuel could yet be greater, as the current economic trend is for fuel taxes to increase in the forthcoming future.

 

            The Mercedes X-Class will also have low harmful emissions. In comparison to petrol the emissions of LNG contains up to 75% less CO2 emissions, hence becoming friendly to the ozone as nicely as complying with the set government targets. Poor air qualities in the UK’s cities are attributed to rising CO2 emissions from petrol driven cars.

 

2.1.2 Item Experience

We at Mercedes believe that clients have particular expectations. The Mercedes driving encounter will not be inhibited by the X-Class running on LNG. There will be completely no reduction in Mercedes world-renowned performance. An important ergonomic style of the new X-Class is its streamline bodywork. The LNG tank will not compromise the shape of the vehicle.

 

            The X-Class will have the big fuel volume capacity for driving equally long distances as petrol cars hence resulting in a range to cover most travel needs. The X-Class is aimed at A &amp B social classes. Corporate clients can benefit from lower fuel costs and an enhancement of ergonomic executive capabilities that Mercedes prides itself on. The X-Class as constantly will be a worthy competitor in terms of prestige to rivals BMW and Lexus.

 

Table.1, below shows the strategic plan of Mercedes and where the X-Class will be placed into its product/market expansion grid:

 

The X-Class is will compete as a new item in an existing marketplace.

Market

Penetration

Marketplace

Development

 

Diversification

                                                                                                                        Table.1

2.1.three Brand Name &amp Image

At DaimlerChrysler the name “Mercedes-Benz” is considered a synonym for the production of high-top quality and innovative vehicles. In the year 2000, Mercedes-Benz celebrated its hundredth birthday. To date 19 million cars carrying the distinctive Mercedes-Benz badge have been produced, and some of the earliest vehicles are now worth about a few hundred-thousandth pounds.

 

Mercedes-Benz has been long recognized for safety, luxury and precision engineering. By introducing the very first LNG auto to the market, Mercedes will further excel its status as an innovator of cutting-edge technology.

 

We at Mercedes-Benz believe that we have one of the 10 most recognizable brands in the world hence we are willing to play with that a small. There is consistency in the name X-Class as Mercedes use the term Class to name other categories of items this is a helpful tool in that it is a trademark associated with Mercedes. Other classes contain the A, C, E, ML and S class.

 

Due to the fact of increased threats from other luxury auto makers such as BMW and Lexus and Jaguar it is essential that the brands equity is maintained in that this will present the X-Class with a competitive advantage in the market place.

 

            Mercedes suggest attributes such as ‘well engineered’, ‘well built’, ‘durable’, ‘high prestige’, ‘fast’, ‘expensive’ and ‘high resale value’. Hence any of these attributes can be utilised in advertising the car, and customers will translate these attributes into positive aspects. A brand also says something about the buyers’ value therefore Mercedes buyers’ value high performance, safety and prestige. Brand will also project personality. Mercedes buyers can visualize as becoming wealthy, middle-aged enterprise executive. It will hence attract those people whose actual or desired self-images match the brands image.

 

Makes heads turn and hearts race.

 

2.1.4       Extra Services

The Mercedes X-Class will be sold with the same service &amp benefit attributes as all other models. A three-year warranty on production defects will be provided and a 10-year anti-corrosion guarantee.

 

The cars will be delivered to the dealer, for an extra fee the cars can be delivered to the consumer’s door.

 

2.1.5       Item Life Cycle

Throughout the introduction stage of the life cycle the X-Class is not expected to see profits, all revenue will be targeted to boost the awareness of the auto. If the X-Class meets marketplace needs or ‘stimulates previously untapped needs, it will enter in which sales will begin climbing swiftly. The early adopters will continue to get, and later buyers will begin following their lead’. Once Mercedes has gained a share of the marketplace for the X-Class, it will commence to generate profits and a new brand can be established. At this stage we expect to attract our competitors to the marketplace for this segment.

 

            As the X-Class enters the maturity stage the growth of sales will start to decline, price wars will become fierce. Sales will slow down depending on the number of competitors who have adopted this thought as they are likely to introduce models which are much cheaper than the X class one of their major traits is they will not only bring out new items but they will improve on the notion and expand the market as a result. At this stage it is vital the Mercedes has a powerful position in the marketplace. The slow down in sales growth results in a lot of producers with numerous goods to sell. This overcapacity leads to stronger competition. Due to the fact of this competitors will cut prices, increase in advertising and sales promotion. A ‘good offensive is the finest defensive’, the managers of the X class will will need to keep a step ahead continually enhancing the product and innovating.

 

Eventually, the expenses to maintain the item in production will exceed the revenue and the item will be withdrawn. The timescale of the item lifecycle is estimated to be approximately 20 years, nonetheless Mercedes R &amp D department will hopefully have developed a new generation of LNG cars, which will takeover when the LNG’s lifecycle comes to an end                

 

2.2 Pricing

Initially a cost skimming technique will be implemented. This will be achievable in that there is a competitive advantage due to the scarcity in competition. This entails charging at a high price due to the fact there is a substantial competitive benefit. This price will eventually fall due to increased supply within the market. When economies of scale are achieved the cars will be produced at a lower unit price and new marketing and advertising and pricing techniques will be undertaken.

 

            The recommended retail price of the automobile is to be £60,000 for a basic model. This is a premium price to maintain Mercedes pricing image. The company will be promoting trade-ins for the customer’s old cars depending on working condition and age. This promotional give will initially be for the very first three months only.

 

The high cost assists recover as a lot gross profit per unit as probable, while the low promotion spending keeps advertising spending down. Such a technique makes sense when the marketplace size is limited in size, when most consumers in the marketplace know about the item and are willing to pay a high price (these consumers are called the innovators), and when there is little immediate prospective competition]. Hence, the X-Class will adopt a much more for a lot more approach for its value positioning, as its providing the most upscale product and charging a greater price to cover the higher costs.

 

            Even so the cost will want to gradually go down as selection and supply start to grow. Also when economies of scale are achieved the cars will be produced at a lower unit price and new marketing and pricing strategies will be undertaken.

If the target marketplace of five,000 vehicles is not achieved Mercedes will alter its pricing techniques accordingly.

 

2.three Placing

The logistics department will manage the distribution of the Mercedes X-Class. This will involve delivery of the vehicles to various dealerships throughout the UK, both through direct and indirect channels.

 

2.three.1       Dealers &amp Direct Selling

Mercedes sales representatives will be trained to deliver presentations to other independent dealerships in an attempt to boost sales of the vehicle by means of non-Mercedes agents. The dealers will be created aware of our marketplace segment, in this case families and corporate consumers and provided with active training and support to address consumer issues.

 

2.3.2       Web

The Net will play a huge part in the distribution of the vehicle. Consumers will be able to book a test-drive of the vehicle as nicely as being able to take advantage of a 2% discount on the cost should they purchase on-line. Consumers will be able to locate there nearest dealership from the Internet. This will ultimately attract international clients as it has a geographically disperse market. The auto will also be displayed at all major vehicle shows i.e. London, Munich, Paris, Geneva. This is observed as a major intermediary for the sale of the car.

 

2.4  Promotion

 

2.4.1       Launch

The X-Class will be unveiled at the forthcoming and world-renowned Earls Court Motor Show on 15th March 2003. This will coincide with “Greenpeace Day” which is aimed to make folks aware of the damage that is occurring to the ozone layer and the earth’s natural resources. The seasonal peak in car sales is March and September this gives the added bonus of launching the X-Class within this time period. The X-Class will also obtain extensive reviews in the select auto magazines and be put to the test on the BBC’s Leading Gear program during late March.

 

            2.4.2       Promotional Mix

The DaimlerChrysler Group will also be displaying the automobile on the company’s webpage so that it can be readily viewed. With the specifications of the auto, this will take location as soon as the automobile has been launched.

 

            A variety of forms of promotion will be undertaken in the form of broadsheet national newspapers, television programs???, billboards, sponsoring sporting events and principally motor shows. This will all be utilized via a teaser campaign running from the beginning of February until the launch of the X-Class in mid March 2004. (Top Gear(show &amp magazine), Road Show, Economist, Miss World, Mayfair showrooms, FT, Which Automobile, )….

 

            In addition to this Mercedes Benz and its dealers around the UK will initiate an action program to attract the buyers to the dealers. The price of this campaign will be divided between Mercedes and its dealers. This will be completed throughout the periods of May possibly – June.

 

            The commercial companies will be targeted via their fleet managers. These managers will be invited to trade fairs and automobile shows around Europe where Mercedes Benz sales representatives will meet the managers. Fleet managers will also be targeted through direct e-mail where Mercedes sales representatives supply to visit the business and present the X-Class.

 

The car will be sold through Mercedes authorized dealers at 1st and this will be extended to other dealers as car sales enhance. Sales representatives will be provided extra commission incentives to actively promote the vehicle. Utilizing the electoral register and census details families within the significant cities will be directly mailed with details for the new X-Class. They will also be offered a minimum of £1500 trade in for their present Mercedes, limited for the 1st 3 months of the launch. Customers will also be given the credit options being subject to status. Thus, permitting clients to spread the price of purchasing a new car.

 

2.4.3       Sponsorships

Mercedes Benz will also be emphasizing the X-Class into its existing sponsorships these includes a star fashion event, recognized as the Mercedes-Benz Australian Fashion Week, for which the product will be on show for public viewing.

 

            There are also close ties with Mercedes-Benz and the sports world.

 

2.4.4       Word of Mouth

Mercedes need to not only educate its sales force on the advantages of the X-Class, the employees need to be well informed as nicely. Departmental managers ought to be provided a X-Class as a business vehicle and no cost test drives will be offered to all personnel. Thus encouraging employees to promote the vehicle to their family and buddies and in turn making a favorable image. Employees are a important promotional tool and need to not be overlooked.

 

 

 

Jaguar Motor Sports