IndexGeographical SegmentationDemographic SegmentationPsychographic SegmentationBehavioral SegmentationMarket Targeting and Differentiation StrategyPoints of Parity and Points of DifferencePerceptual MappingBrand Identification and AwarenessBrand ImageBrand Personality and Customer ResponseBrand ResonanceThe marketing mixProductPricePlacePromotionConclusionsThis article analyzes the strategic branding and positioning decision of Mercedes-Benz. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay A well-positioned brand for any highly engineered product is likely to receive a positive sales response while bad ones exactly the opposite. Brand Management Concept by (Keller K., 2008), highlights that "Good brand positioning helps guide marketing strategy by clarifying what a brand is, how it is unique and how it is similar to competitive brands, and why consumers should buy ". and use it" (p.98) The automotive industry is highly competitive, so Mercedes-Benz would need a precise branding and positioning decision to defeat its competitor. Mercedes-Benz, one of the automotive divisions of Daimler AG, is was found by Gottlieb Daimler and Carl Benz in Germany. Mercedes-Benz invented the first high-speed engine in 1884 and in 1890 Mercedes-Benz had its first mass production of cars (Mercedes-Benz, 2018) The star brand three-pointed symbol symbolizes the use of the Mercedes-Benz engine on land, sea and air (Daimler, 2018. Registered in 1909, it is decorated on the front and rear of all Mercedes-Benz vehicles. This mark is used today and is accompanied by the slogan “The Best or Nothing” (Mercedes-Benz, 2018) Mercedes-Benz's positioning statement “The Best or Nothing” emphasizes perfection of engineering, safety and luxury at the highest level. This philosophy projects elitism and intrigues consumers who share the same ideology. Brand positioning begins with market segmentation. There is no absolute answer to addressing market segmentation. Different variables would be implemented, single or mixed, the marketer will have to look for the best solution to understand the market. (Kotler & Armstrong, 2008)Mercedes-Benz has demonstrated the above, using and mixing different variables to adapt to the market. And the 4 Cs of Mercedes-Benz, clarity, consistency, credibility and competitiveness, have laid a solid foundation for the success of its brand. With reference to the "geographical segmentation 3.1" on the Chinese market, Mercedes-Benz exceeded 600,000 units sold for the year 2017 (gbtimes, 2018), and Daimler's financial report ranked China first in market sales ( Daimler, 2018). Geographic Segmentation Geographic segmentation is established using geographic variables such as local population and urbanized location (Elliott, Rundle-Thiele, & Waller, 2012). The BRIC (Brazil, Russia, India and China) market was discussed in Mercedes-Benz's 2012 sales and marketing proposal with a strong emphasis on China. Mercedes-Benz expects China to become the most important market due to the huge population and impressive economic growth and urbanization. (Daimler, 2012) Demographic Segmentation Variables such as age, gender, occupation, income, marital status, and family size are crucial inputs for demographic segmentation (Elliott, Rundle-Thiele, & Waller, 2012). Advertisement on Mercedes-Benz B-Class labeled 'the safest car around for young families'(Mercedes-Benz, 2012). The “She’s Mercedes” campaign in 2017 is aimed at female drivers (NOWNESS, 2017) and (Mercedes-Benz, 2018). And the recent launch of the new Mercedes-Benz E-Class anticipates the needs of business professionals and is marketed as “The Smartest Sedan in the Business Class” (Mercedes-Benz, 2018). Finally, the demographic variables on income. There's no point in bidding when no one can afford it. The cheapest Mercedes-Benz costs around $138,000 while the average annual income of Singaporeans was $55,016 (Ministry of Manpower Singapore, 2017). Psychographic Segmentation “Lifestyle” was the theme chosen for Mercedes-Benz. This decision corresponds to the theory that establishes differentiation in lifestyle and/or psychological traits (Elliott, Rundle-Thiele, & Waller, 2012). Advertising and campaigns focus on mature professionals in the upper-middle or upper classes with a desirable personal lifestyle. (Mercedes-Benz, 2018) supports its campaigns as “Your Mercedes-Benz is not just a vehicle, it is part of your life, and an expression of your style.”Behavioral SegmentationThis segmentation is established on the purchasing behavior of a specific item that includes variables; expectations of advantage, loyalty, prices... etc. (Elliott, Rundle-Thiele, & Waller, 2012). Buyers would expect long product life from this German-made engineering marvel. For some, buying a Mercedes-Benz always depends on its stylish appearance or its handling and engine performance. Above all, the price on a Mercedes-Benz indicates that ownership is prestige only. Mercedes-Benz has also created its own "Mercedes-Benz Brand Club" which offers benefits such as loyalty rewards or purchase discounts to members. (Mercedes-Benz, 2018). Differentiation strategy and market targeting The invention and patent of the “Side Protection System” (Mercedes-Benz, 2018) and the “V8 M176” engine (Mercedes-Benz, 2018) are examples of differentiation focused on engineering innovation /project strategy (Farhana & Bimenyimana, 2015). With innovation, price differentiation and symbolic promotional mix, Mercedes-Benz has launched unique selling points in the minds of target consumers. Mercedes-Benz offers a wide variety of car types. These offerings allow the consumer to have more options, thus differentiating themselves from other manufacturers with limited variations. The sales potential, competitive situation and cost structure must be assessed before developing the market mix (Elliott, Rundle-Thiele and Waller, 2012) . Referring to 3.1, China's GDP surpassed $8 trillion in 2012, and this growth encouraged the purchase of 13.4 million units of passenger cars that year. With a massive urbanization project led by the Chinese government, strong purchasing power and low car density, Mercedes-Benz makes a plan to expand its dealer network in major metropolitan areas in China. (Daimler, 2013)As for the competitors, Mercedes-Benz was planning to engage in tough competition. (Forbes, 2014) Finally, Mercedes commissioned its manufacturing plant in China on November 18, 2013 to achieve cost-effectiveness. (Daimler, 2013) Points of parity and points of difference (Ghodeswar, 2008) states that; “A trademark is essentially intended to identify the goods or services of a group of sellers or a seller by differentiating its goods/services from those of competitors.” (p. 4-12) Perceptual Mapping Company article originally published by Booz & Company, Fall 2003 Issue 32, illustrated Mercedes-Benz's position in the following perceptual mapping (Booz & Company, 2003).4 Brand EquityIllustration of Mercedes-Benz brand using brand value pyramid model (Keller, Aperia, & Georgson, 2012) as follows: (Johansson & Carlson, 2014) illustrates:Below we will analyze how Mercedes-Benz stays in tune with the illustration above.Brand Identification and AwarenessMuch of Mercedes- Benz's identity was already mentioned in Section 2. However, this paragraph would like to point out that Mercedes-Benz has been identified as "the best car in the world" by winning 3" World Car Award" in 2015 (Mercedes-Benz, 2015). (Keller K., 2008) had highlighted: "The sources of brand value are brand awareness and image". (page 50-51). Mercedes-Benz leverages its memorable branding, superior engineering, unmatched product quality and reliability to support its brand identity. With the help of marketing campaign and social media, brand awareness has increased. Study byADWEEK found that Mercedes-Benz advertising outperforms all its competitors (ADWEEK, 2014). Furthermore, Mercedes-Benz's involvement in Formula 1 competitions, such as the financing of the Formula 1 team "Mercedes-AMG PETRONAS Motorsport" (Mercedes AMG F1, 2018), has further boosted its brand awareness. In addition to motor sports, Mercedes-Benz also sponsors sports activities such as horse riding, golf, football, tennis... etc. (Daimler, 2018). In 2017, Mercedes-Benz launched the "Grow Up" project. This campaign focused on young millennial professionals who have aspirations. This campaign aims to create awareness among younger consumers. (ADWEEK, 2017)With all these current strategic measures in place, brand relevance is considerably high for Mercedes-Benz.Brand ImageThe slogan “Best or Nothing” and the vision of “Dedicated to Customers, Driven by Excellence” (Mercedes-Benz, 2018) represent the total perfection of the Mercedes-Benz offering in every respect. This is achieved by leveraging its rich automotive manufacturing history, heritage, product performance, after-sales services, advertising and campaigning, as well as professional automotive critics and magazine reviews. For example, Car Magazine UK reviewed the Mercedes-Benz S-Class as a high-performance car with the ultimate in luxury (Carmagazine UK, 2018) and AutoCar Magazine ranked the Mercedes-Benz S-Class as the number one best luxury car in 2018 (Autocar UK , 2018). ).Mercedes-Benz has also made a name for itself for innovation in the field of vehicle safety with the "Side Protection System" (Mercedes-Benz, 2018).Over the years, Mercedes-Benz has also improved its image by involving community projects such as "Mercedes-Benz and Laureus". This global sports project helps young people find work and reduce criminal behaviour. (Mercedes-Benz, 2018). Mercedes-Benz is also committed to global environmental protection on resource conservation and carbon reduction. (Daimler, 2016).Although Mercedes-Benz suffers from setbacks such as vehicle recalls, the overall brand value still remains positive (Daimler, 2017), (interbrand, 2017) and (Statista, 2018).Personality of the brand and customer responseMercedes-Benz presents itself as competent and sophisticated. This is related to its reliable, high-performance engine and trendy automotive design. Mercedes-Benz has published positive reviews from its customers (Mercedes-Benz, 2018), and according to www.cars.com 2017, customers rated Mercedes-Benz 4.9 out of 5 stars (cars.com, 2017).Brand ResonanceConsumers have developed behavioral loyalty and attitudinal attachment by joining the Mercedes-Benz Enthusiast Club (SG Merc, 2018) or "Mercedes-Benz Owners Singapore" on social media as.