Mercedes-Benz - Exploring Non-Premium Segments*



Mini Case Code : CLIM011
Publication date : 2005
Subject : International Marketing
Industry : Automobiles
Length : 03 Pages
Price : Rs. 100

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Key words:

Daimler-Benz AG, Mercedes-Benz, automobile manufacturer, car market, marketing strategy, brand image, marketing survey


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Mercedes-Benz, known as a premium car manufacturing company, started targeting other segments of the car market in the early 1990s. The caselet analyzes the reasons for the company entering the economy segments of the car market. It also discusses the measures taken by the company to expand its market.


What were the reasons that necessitated Mercedes-Benz to explore new segments?
How did the company go about its target market diversification strategy?
Did the strategy to diversify the target market prove fatal or fruitful for the company?


Daimler-Benz AG popularly known as Mercedes-Benz was a company known for producing world class luxury cars.

Questions for Discussion:

1. Do you think the 100-year-old luxury car company is right in shifting its target market from the upper-class segment to other segments in the car market? Justify your stand.

2. What are the various marketing strategies followed by Mercedes-Benz to increase its sales?

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