Marketing Management of Mercedes Benz Malaysia

8/17/2019 Marketing Management of Mercedes Benz Malaysia

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Mercedes-Benz Malaysia

Long and rich heritage holder company The Mercedes Benz has been incorportated withMercedes Benz Malaysia Sdn Bhd, a joint venture betwwen Daimler A and !ycle and

!arriage bintang berhad on "st #anuary $%%&'

!urrently Mercedes(Benz Malaysia employs over $&% employees with its administrative and

sales o))ice located at Menara TM in *uala Lumpur and the production plant is located at

+ean, +ahang' Mercedes(Benz Malaysia manages the wholesale distribution o) Mercedes(

Benz, smart and Mitsubishi -uso vehicles, service and spare parts as well as so)tware

development )or global sales solutions and automotive apprentice training'

The retail networ o) Mercedes(Benz Malaysia is represented by ./ authorized dealers )or

the Mercedes(Benz, smart and Mitsubishi -uso brands' A total o) /% outlets provides salesand a)ter sales services nationwide' The emphasis placed on networ development is a global

initiative by Daimler A in line with its brand philosophy to create a uni)orm worldwide

brand that provides Mercedes(Benz customers with superb 0uality services'

1ith a total investment o) 2M"$% million in +ean +ahang and collaborative e))ort with

D2B(3icom Berhad has been resulted in the local assembly o) some o) the world4s most

coveted passenger cars namely the Mercedes(Benz S(!lass, 5(!lass and !(!lass as well as

the Mercedes(Benz and Mitsubishi -uso commercial vehicles'

Mercedes Benz Malaysia is also providing Training support !entre which is nown as

Apprentice Training !enter 6AT!7 located at lenmarie, Shah Alam, aims to develop a poolo) well(trained, technically silled mechanics in order to support the Mercedes(Benz networ

in Malaysia'

The training )acilities is e0uipped with state(o)(the(art training aids and graphic services'

BMW Group Malaysia

BM1 roup Malaysia 8nveils the 9ew Locally Assembled BM1 :" and BM1 :; and

Announces !ustomised 55< Status =ncentives )or the BM1 & Series ran Turismo, BM1

:& and BM1 . Series'

+remium automaer introduces two new models to be locally(assembled in the country and

revises retail prices lower by up to /> )or the BM1 & Series T, BM1 :& and BM1 .

Series'

Customer perceived value:

!ustomer perceived value is a mareting concept which shows the success o) a product based

on the belie) that customer has and which will satis)y their needs' 1hen company try to

deliver the product message to the )inal user then customer is the only one who will decide

how to react to the e?act message'


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8laga6$%%%7 in)ormed that based on what is received and what is given, customer perceived

value is an overall evaluation' Sheth 6"//"7 also in)ormed that customer perceived value

actually e?plain why customer buy or why they don@t purchase speci)ic product'

=n this study, = am comparing the customer perceived value between Mercedes Benz and

BM1 and propose new value proposition'

To identi)y the customer perceived value o) Mercedes Benz = am comparing shelth ey

dimensional theories which comprises with )ive variables such as

"' -unctional

$' Social

&' 5motional

;' 5pistemic

.' !onditional


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which has reputation )or reliability, dependability in terms o) ease o) maintenance and

repairing'

!ognitive elaboration mechanism is something which is actually used by customer )or some

in)ormation and general level o) interest o) the product under certain consideration' This

thing leads to one conclusion that how much success)ul one person is in the society and their status having in the society'

There is a small portion o) Malaysian customers who are really )ascinated to BM1 regarding

their sportiness in per)ormance, handling, and outloo despite the tra))ic congestion

indicating a role )or attitudes toward brand image'

Emotional Values

!ustomers now have more opportunities to achieve )unctional and economical bene)its

regarding per)ormance and handling the both lu?ury car' =n Malaysia customers who are

using Mercedes Benz they actually gain this sort o) bene)its' +eople have their mind set that

)oreign production car especially )rom erman are much )aster in reliability, speed and

values' Malaysian customers have higher purchasing power and opportunities' =n Malaysia

people who are buying this sort o) lu?ury car they actually let the car drive them with more

emotional values and social values'

Conditional values:

This value is the most important value perceived by the customer normally when they

determined to purchase the car' =t has positive in)luence on customer satis)action and

customer loyalty' Both this things plays an important role in organization success'

1hen the company has loyal customer they actually ma?imize their pro)its' These are the

characters o) the loyal customers

• -re0uently purchase

• =) the company produces new products or technology loyal customer actually tries

those things'

• 1ord o) mouth

• ive companies suggestion regarding products and service'

!onditional values )or both these lu?ury cars are high' The reason behind this high value isthat once the customer determined which brand he wants to buy, they actually don@t go )or

any other brand' 1hile purchasing the car they already have the su))icient in)ormation which

leads them to satis)action and brand loyalty associated with the product'

Epistemic Value:

This value is actually related to curiosity or desire )or more nowledge that a customer has'

1hen customer receives bene)its )rom this value that means products has already satis)ied

the curious mind o) customer' 1hen customer wants to buy Mercedes benz they actually haveall the in)ormation )rom the secondary sources and which lead them higher gainer in


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nowledge related to the lu?ury car' Those sorts o) customers are highly sophisticated and

they are highly nowledgeable regarding lu?ury car'

Value proposition:

1hen customer actually loos )or the in)ormation about speci)ic product or service they

normally read the speci)ications o) that product'


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&syc#o!rap#ic:

According to


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'ey (enefit:

"' 3igh price segment

$' Sa)ety and com)ort

&' Astonishing re)ine handling;' Sustainability mobility

.' !ontemporary styling

C' 5?clusive 0uality

' +er)ormances'

Basis of revie):

&roduct:

Blue e))iciency is the Mercedes Benz new )eature' This technology actually reduces energy

consumption by higher percentage o) combustion o) the )uel and as a result emission o) carbon di o?ide will be reduced'

This technology improves the engine per)ormances' Along with this bene)it other )eatures are

higher resale value, S8< bumper, well and sophisticated interior and braing system which

actually secure the customer sa)ety'

&rice:

The target marets o) the Mercedes Benz are actually high income people who are

sophisticated and well educated' -or them social status, class, sa)ety and durability is muchmore important than price' So Mercedes Benz provide the value the customer deserved based

on the money they are spending on car'

&lace:

!ompany must have the strong promotional activities i) they want to secure their position in

the maret' =) any company has succeed to deliver the e?act communication about their

)eatures and availability at di))erent location then the company can achieved greater success'

-or Mercedes Benz products are available through direct sale at showroom'

&romotion:

Mercedes Benz do not believe in high cost o) advertisement as it only cares to caters to

premium segment o) the customer and the brand has also created a strong position in

customer mind'


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Value Map of Mercedes Benz and BMW:

Value proposition of BMW:

ar!et Mar"et:

BM1 loos at the geographic, demographic, and behavioural and a socio economic

characteristic o) the society and that helps them to identi)y the target maret'

eographic )or BM1 their main marets are in 5urope which is C.>'

Company: BMWCompany: Mercedes Benz


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2ecently in Malaysia premium automaker introduces two new models to be locally-

assembled in the country and revises retail prices lower by up to 9% for the BMW

!eries "#$ BMW and BMW & !eries'

$emo!rap#ic:

+eople, who are able to buy BM1, are actually men and women actually aged &%(.% years

old'

Be#aviourally

Be)ore buying lu?urious car lie BM1, success)ul image has already been created to

customer mind'

%ncome

BM1 target people with very high income'

Occupation

Business man, industrialist and corporate senior e?ecutives'


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&syc#o!rap#ic:

According to


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+rice analysis is important when all the bene)icial costs are monetized and buyers are

economically balanced'

1hile maing pricing )irms normally put more emphasize on product bene)its and the

economic value o) that bene)it is more implicit' Buyers mae the )inal decision be)ore

purchasing the car and they thin about some other )eatures' Their )inal decisions arise )rom

both economical and non(economic )actors'

+ricing decision is the standardize way to match between delivered bene)its and product price

in competitive maret'

The more bene)its that product actually perceives to deliver, the )urther it actually appears on

the value map'

Suppose

+roduct ! delivers more bene)its than product B and product B delivers the same level o)

bene)it as product A6B"7

Similarly, higher prices appear higher on the map' -or e?ample price o) product ! is higher

priced than product A 6+$G+"7

5ven in this simple theoretical diagram, some logical in)erences can be drawn with respect to

the value delivered by the products' +roduct A delivers more value than product B 6same

bene)its at a lower price7'

Similarly, product ! delivers more value than product B 6more bene)its at the same price7' =n

other words, +roduct B is in an une0uivocally disadvantaged value position'


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&lan to implement value proposition (ot# internally and e*ternally:

=) any companies try to improve their three bene)its such as )unctional, emotional and

conditional values then they will gain higher customer satis)action and higher customer

loyalty' As a result they will be able to create strong value proposition both internally and

e?ternally'

Automobiles lie Mercedes Benz should put more emphasize on some )unctional bene)its

such as engine reliability, )uel consumption design along with strong positive brand'

Mercedes Benz will gain bene)it i) they create two types o) technological in)ormation with

their customers' They should put more technological in)ormation to the e?perienced customer and while communicating with the ine?perienced customer they should simply )ocus on

strong brand position and corporate social responsibility'

Mercedes Benz should identi)y those ine?perienced customer because they are much more

ris avoidant and they are much more sensitive about to tae ris' Management should aware

o) it and they need to tae proper step or adjustment based on the sales strategy'

Mercedes Benz and BM1 are two names that come to mind when customer thin o) buying

lu?ury car' Both the companies has strongly and strategically positioned their product so that

it maes the customer to thin about easily o) their product' Mercedes Benz should put more

emphasize developing a product that would be suited to today@s )ashion and trend, match

with the major customers are in age group &%(.% years, with low running cost and highly eco(

e))icient'

Mercedes Benz should )ocus on e?panding their reach to customer in di))erent marets' =t has

been seen in the study that many customers are not aware o) various )acilities provided by

them' They should try to educate their customer regarding various services provided by them'

To create superior value proposition Mercedes should come up with better engine as people

pre)er BM1 )or its engine over Mercedes Benz'

Conclusion:


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1hen consumer purchases lu?uries products such as cars, they continuously loo )or 0uality

)irst' +erceived 0uality has positive in)luence on purchase decision' 1hen consumer buys

high 0uality product such as car at that time they thin o) their car as more than

transportation'

1hile purchasing lu?uries car customer actually loo )or greater customer with low ris

associated' Be)ore purchasing the car customer thin whether the car is worth to buy or not' =t

is essential )or the automobile companies to thin that they should dedicate the budget and

resource to improve the 0uality o) car' 1ith regard to technology lu?ury automobile

companies such BM1 and Mercedes Benz should invest more on advanced technology )or

engines such as hybrid engines'

=n terms o) money, personality, customer li)e styles and status are also correlated with

purchasing the car' 1hile driving the car on road customer pre)ers to have higher status,

uni0ue personalities with better li)estyles' -or e?ample, high income customer goes to

showroom and the sales e?ecutive at that showroom normally greet their customers, serve

them with drins and provide the ade0uate in)ormation about the speci)ic cars' Hther than

that the sales e?ecutive also provides them the other technical nowledge' Based on the car

model they actually o))er cars rebate and others services 6based on )ree milestone7'

1hen customer receives this sort o) treat )rom the showroom or sales e?ecutive, they believe

that the value the company is providing is way beyond their e?pectations' As a result

customer is willing to tae ris to purchase that speci)ic car'

There)ore, they )ace uncertainty i) they purchase the unsuitable car that result in poor

per)ormance, embarrassment, poor sel)(image and unsa)ely, which cause them lost in

)inancial ris, physical ris, social ris and per)ormance ris' So, customers will tend to

purchase cars that value )or money'

Documents

Marketing Management of Mercedes Benz Malaysia