Marketing management of Luxury cars

2. •Company profile: Mercedes Benz, Audi, BMW and Lexus
•Their goals and current objective
•Segmentation, Targeting and Positioning of these companies
•Marketing in social media; a societal marketing perspective
•Marketing mix; the use of 7ps for market performance
•Successful marketing promotion in social media
•The company’s position in marketing concept
•Evaluation of marketing mix among four luxury car company
•Conclusion

3. 1.1 Company profile (objective)
As a pioneer of automotive manufacturing, Mercedes is striving for
innovation, environment safety, high-end technology and luxury in
pursuit of customer satisfaction, sustainable growth and wealth
maximization.
S class luxury cars for rich and high profile people and C class luxury
for middle top income level executives and youths. It has sport luxury
for sport car lovers.
The company has a strong brand recognition of safety, innovative and
perfect classic luxury car.
1.2 Segmentation, Targeting and Positioning
Currently the company is working for autonomous self-driving car along with other
luxury cars for upcoming generation that benefits the company with competitive
advantage of technology.

4. 1.3 Marketing promotion in social media:
"Fable" Commercial is one of the most popular you tube video that has been
view by 12 million viewers. It has made a positive brand impact that one
should buy Mercedes AMT GT S to have success, thrill and real adventure.
This was completely new idea in promotion that was a milestone for the
creative advertisement in social media to attract the customers.
Mercedes has been using social
media for the advertisement and
promotion. It gathers the data and
feedback through facebook, twitter
and instagram.
https://www.youtube.com/watch?v=LQvdIGeUUvo

5. 1.4 Review of Marketing mix
Price: Mercedes uses different price for different models. It has C class car
entry level luxury to SLS class cars for very rich customers.
Promotion: The use of online media and television for promotion, US open
sponsorship and making of Mercedes Benz Stadium in Atlanta are the best
example for successful promotions.
Product: Mercedes produces luxury passenger cars, trucks, vans and other
vehicle to target different customers need. Customers like Mercedes for its
safety, comfort, design, brand, power, reliability and durability features
Place: They have thousands of dealership and hundreds of manufacturing
warehouses across the world
Physical Evidence: Showroom and dealer are designed to be cool, classy
and luxury looking
People and Process: Mercedes stands for highly appraised system for
customer service and distribution mechanism.

6. 2.1 Company profile (objective)
Aiming of being the world leading luxury car company for premium
segments. Value sportiness, progressiveness and sophistication are
three elements of their mission backed by products with attractive
design, high caliber material and build quality.
Small sporty car for European people and Audi is targeting the niche
market customers from high and upper high-class people across the
world with luxury needs. Mostly business corporate prefers Audi for its
performance, safety and luxury features.
In 2007, Audi was voted as Car Company of the Year by the British Car
magazine and has ranked 4th in luxury car.
2.2 Segmentation, Targeting and Positioning

7. 2.3 Marketing promotion in social media:
Audi launched the Hastag campaign in social media that went viral. Audi’s
#WantanR8 campaign is one of the most successful Twitter campaign in
history. It offered the chance of wining an R8 who does participate in the
campaign. This has promoted the brand online among twitter users. The
Hostage advertisement of Audi R8 is another successful story of promotion,
which shows the brand is considered so precise and valuable as living
being.
Audi has made many funny and cool
commercials on television and youtube
network which take the attention of the
people successfully.
https://www.youtube.com/watch?v=_6rj5jisB7g

8. 2.4 Review of Marketing mix
Price: Audi made cars are relatively high priced based on feature.
Promotion: Besides digital and print media promotion, Audi sponsors US
open tennis and has Audi magazine for car lovers.
Product: All the Audi cars meet the standard of safety, conform,
technological innovation and luxury. The company has been actively
working in carbon emission reduction for environment safety and fuel
economy. This has influenced to increase the brand loyalty.
Place: Audi has an extended network of dealership with high quality
customer service in many developed countries.
Physical Evidence: The digitalized and innovative showroom has led a
positive impact in the mind of high-class customers
People : Sales persons and mechanics provide world class services to its
customer to promote the sales via word of mouth.
Process: Audi was the first car to go online in marketing. It has digitalized
its showroom for quality service.

9. 3.1 Company profile (objective)
Lexus manufactures premium vehicles with high level of luxury, advanced
technology, environment friendly, striking design and next level performance.
The product lines up of Lexus are Sedans, Convertibles, Hybrid and SUV.
Lexus NX Crossover is a hybrid Lexus aimed for younger active and urban
consumers.
The main markets are Europe, USA, Japan, Germany and Australia. Lexus
targets younger and urban with active lifestyle.
Exceptionally well-equipped, Edgy and striking design as well as refined and
comfortable.
3.2 Segmentation, Targeting and Positioning
Lexus targets younger generation in their latest ‘This is the New Lexus”
campaign for their hybrid NX Crossover via M&C Saatchi. This is M&C
Saatchi’s first campaign for incredibly luxury car. ‘This is the new Lexus’
campaign centers on ‘Progressive new luxury, leaving old luxury behind ‘in
the first of a number of model launches to target a new and younger
audience.
3.3 Marketing promotion in social media:

10. 3.4 Review of Marketing mix
Products: Lexus has a different range of cars. They varies as Sedan, SUV,
convertible, sport car and hybrids.
Price: Lexus uses Flexible cost pricing, premium, value pricing and
skimming methods depending upon marketing condition and consumer
perception.
Place: Lexus is marketed worldwide and they have five manufacturing
facilities and thousands of dealership and wide distribution network
Promotion: Other than TV promotion Lexus have sales promotions, loyalty
scheme, direct mail, public relations etc.
People: The success of Lexus is a combined effort of the customers and
employees.
Physical evidence: Lexus Company have the Tahara plant in Japan, which is
one of the biggest car manufacturing company in the world. The design and
showroom are made for Excellency.
Process: Lexus has Driver attention monitor, blind –zone alert, cross-traffic
detection, Pedestrian detection system and Parking guide system. They are
using premium materials. They have virtual crash test system that minimized
the accidents.

11. 4.1 Company profile (objective)
BMW has strategy that focuses on profitability and long-term value
enhancement by considering growth, shaping the future, profitability and
access to technologies and costumers. Except the premium and luxury,
BMW has the mission of making the cars with less CO2 emission and higher
fuel efficiency.
The main markets of BMW is Europe and North America which covers 65%
of the total sales of the market and other Asian countries including Australia.
BMW targets Especially Men and women aged between 30 to 50, who have
very good income source and other business executives.
4.2 Segmentation, Targeting and Positioning
BMW is well known for its luxury, innovation, fuel efficiency and sporty looks.
BMW has 13.4 million fans in facebook. Besides the facebook, BMW has been
using twitter, instagram, pinterest and google+ for promotion and interactive
marketing strategy that helps the company to gain competitive advantage of
marketing strategy.

12. 4.3 Marketing promotion in social media:
“BMW i8” was launched in May and is a hybrid drive train electric super
car which is much more fuel efficient and environmental friendly than any
other car with maintaining its safety, standards and the quality as never
before. BMW i8 is visionary vehicle with outstanding look, which changes
the way that people look at premium cars.
Dr. Steven Althaus, head of BMW Brand Marketing: “We deliberately
decided on a campaign that tells of the genesis of the BMW i8 – a
journey from the impossible to the possible. Visuals showcase the beauty
and power of the BMW i8 in pure, genuine, intense images, which give
the campaign greater, more iconic impact.”
BMW I8- “I am the possible”
https://www.youtube.com/watch?v=CD47O_Rob3A

13. 4.4 Review of Marketing mix
Products: BMW offers a lot of different option as per the market
segmentation from Sedan, coupe, convertible, family car to electric sports
car.
Price: BMW offers different price range from approximately $36,000 to
$300,000 in its regular series. The price differs with its facilities so the buyer
can choose what they prefer.
Place: BMW has its activities around 150 countries which started from
Germany and secondly in South America and then to many different
countries.
Promotion: BMW promotes its each product differently to boost the sales
over the product line.
People: Dedicated service staffs render service in showroom and trade
centre to give maximum satisfaction to its high profile consumers.
Physical evidence: Extended dealership across the world and showrooms
are designed for luxury feeling and brand recognition.
Process: Digitalized online marketing has influenced the customers
purchase decision positively.

14. Marketing concept/
Luxury Car Brand Mercedes Audi Lexus BMW
Production No No No No
Product Yes- Exceptionally
well-equipped
Yes- innovation ,
high calibre
material
Yes-High quality
and Functional
features,
Premium product.
Yes-relentless
research, safer,
economic and
environmental
friendly.
Selling No No No No
Marketing
Yes- Diversified
customer needs,
classic prestige
with comfortable
driving experience.
Yes- wide range
of product
varieties,
sportiness.
Yes- offer
exceptional
customer service,
creating loyalty
throughout the
world.
Yes – Strong
brand, Pull
strategy by
delivering quality
revolution.
Marketing concepts used by different Luxury Cars

15. 7P’s/ Luxury car
Brand
Mercedes Benz Audi Lexus BMW
Product ★★★★★ ★★★★★ ★★★★★ ★★★★★
Price ★★★★★ ★★★★ ★★★★★ ★★★★
Place ★★★★★ ★★★ ★★★ ★★★★
Promotion ★★★★★ ★★★★★ ★★★★ ★★★★★
People ★★★★★ ★★★★★ ★★★★★ ★★★★★
Physical
evidence
★★★★★ ★★★★★ ★★★★★ ★★★★★
Process ★★★★★ ★★★★★ ★★★★ ★★★★★
Star rating:
★★★★★= Excellent
★★★★=Good
★★★= Mediocre
★★ = Below par
★=Poor
Review of 7P’s with different Luxury cars

16. A solid and well though-out marketing plan is inevitable to compete in today’s
competitive market. Marketing is a key functional area to succeed in the world.
Marketing determine how the company value its position. Marketing plan helps
to position business, determine the target markets, understand its strengths
and weaknesses and find the opportunities within those strengths and
weaknesses to execute the company’s goals and objectives. When all the
members of company endorses marketing plan, the company will succeed.
Good marketing plan helps the customers to understand why the company’s
service is better than that of competitors.
Conclusion:
In conclusion, based on the utilization of marketing mix and effective
promotion strategy Mercedes comes in first among four cars. Mercedes has
wide range of product line from relatively cheaper to very high priced cars
that targets the large amount of audience in the market. Furthermore, it has
invested a huge money in corporate social responsibility, and technological
innovation. Through consistence business performance and sustainable
growth, Mercedes is able to led a psychological feeling of superiority in
customers mind. However, the intense competition by Audi and BMW has
made the luxury car business more challenging in future.

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