How Mercedes Benz, a division of Daimler AG has applied its marketing Essay

How Mercedes Benz, a division of Daimler AG has applied its marketing mix in major global markets - Essay Example 4 Product: Quality, Quantity and Brand Consistency 4 Price: Profits 5 Promotion: Brand Awareness and PR 5 Summary of Mercedes Benz Marketing Mix 6 Defining Internationalization 7 Internationalization Process Theories 7 Internationalization Process Theory Applied by Mercedes Benz 8 COO EFFECT ON MERCEDES BENZ 9 Defining COO 9 Investigating Factors Affecting COO Effect 10 The relationship between Factors Affecting COO Effect and Mercedes Benz 12 CONCLUSION 13 REFERENCES 14 EXECUTIVE SUMMARY This report examines how Mercedes Benz, a division of Daimler AG has applied its marketing mix in major global markets, namely: the US, China, Germany and Western Europe. It looks into the internationalization process applied by the division; the factors affecting the COO Effect, and how these factors relate to Mercedes Benz. INTRODUCTION Mercedes Benz is a German located manufacturer of automobiles, which is currently a division of Daimler AG, which is the parent company of the Daimler Group. Daiml er AG is situated in Stuttgart, Germany and is involved in the advancement, construction and dissemination of cars, trucks and vans within Germany and the management of the Daimler Group. The Mercedes Benz division supplies products ranging from the first class small cars to the luxury vehicles of the Mercedes Benz brand. The main country of production of the Mercedes Benz brand is Germany, however; the division also has manufacturing plants in the United States, China, France, South Africa, India, Vietnam and Indonesia. This report analyses Mercedes Benz main objectives being: to determine the marketing mix strategy employed by the company in its international markets, to pinpoint the particular Internationalization Process Theory (IPT) that best describes the internationalization process undertaken by Mercedes and to analyze the extent to which the Country Of Origin (COO) effect affects the consumer perception of the Mercedes Benz brand. Background Information The Mercedes Benz fi rst came to be in the year 1886, when Gottlieb Daimler and Carl Benz, on the 29th of January applied to the Berlin patent office to have his vehicle with gas-engine propulsion patented. This marked the beginning of a new era in the automobile industry (Daimler report, 2011). In the year 2011, the company marked its 125th anniversary, since its beginning in the year 1886. This year was a successful year for the company as it was marked by several key events. The company premiered its new C-Class coupe at the Geneva motor show, where it was able to gain a uniquely sporty entry into the Mercedes coupe world; it presented its concept for the A-Class in Shanghai, which features the new Mercedes Benz design; it introduced a new truck brand into the Indian market, the BharatBenz; achieved greatly in its first quarter and made record earnings in its second quarter (Daimler report, 2011). Mercedes Benz: Goals and Aims The aim of the Daimler AG company is to play a revolutionary role in the o ngoing advancements in automobile mobility. The company is dedicated to making the mobility of future generations safe and sustainable; while focusing on their customer’s needs. Daimler AG seeks to stir its consumers with invigorating luxury automobiles, that are pioneers in their design, safety, comfort, perceived value, environment friendliness and dependability; competitive vehicles that are leaders in their respective competitive niches; extraordinary