MC Donalds and Benz Advertising Statergies

7/29/2019 MC Donalds and Benz Advertising Statergies

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Brief History

The business began in 1940, with a restaurant opened bybrothers Richard and Maurice McDonald at California.

The present corporation dates its founding to theopening of a franchised restaurant by Ray Kroc the ninth

McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in

the company and led its worldwide expansion, and thecompany became listed on the public stock markets in1965.

Kroc was also noted for aggressive business practices,compelling the McDonald brothers to leave the fast foodindustry.


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Amazing AD Campaigns

Of McDonalds


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Im lovin it LARRY LIGHTAMARICAN MARKETING ASSOCIATION

Chief Marketing Officer (2002-2005)

Spear headed the revitalization of McDonalds. After

McDonalds first loss in 2002. Light has the budget for the fire-fight - $1.2 billion a

year. And the bulk of it has gone on TV.

Crazy ideas of Larry light included spray painting Hong

Kongs trains with the captions Im lovin it.


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10 elements that marketers should

follow to generate sustainability

Larry Light Stand up for what you stand for Promise what you intend to deliver and deliver what you promise

Provide extraordinary guarantees - keep it simple andstraightforward

Simplify choice complexity - we live in an overchoiced world

Be a trusted information source

Educate consumers - competency breeds comfort

Be open and transparent

Be responsive and responsible

Don't spectate, collaborate. Collaboration is better thanconfrontation.

Support causes.


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PUBLICITY STUNTS

EMOTIONAL ATTACHMENT


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CRAZY STUNTS

1.ICE STATUE STUNT Mcdonalds didnt grow to become and internationally

known brand without having a brilliant marketingdepartment and their latest campaign from Canada shows

just how creative they are.

The promotion was around their $1 drinks and involved agiant ice sculpture embedded with over $4000 dollar coinsin the shape of the iconic golden arches.

The sculpture was then assembled in the center of Albertain a prominent area and left there for users to enjoy as theysaw fit. As you can see from the video plenty of families,children and even the odd dog got involved in trying to freethe money and the feature would have provided a hugeemotional attachment to the brand for many.
http://localhost/var/www/apps/conversion/tmp/scratch_5/Dollar%20Drink%20Days%20-%20Alberta%20-%20YouTube.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Dollar%20Drink%20Days%20-%20Alberta%20-%20YouTube.mp4


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Even though this is a small local campaign there is

no doubt that this video will get featured all overthe world on marketing blogs and that is themarket that McDonalds will be aiming for withthis particular stunt.

These stunts are simple enough to put togetherand the big international brands like Coke havemade them a trademark and it is easy to see why.

Who doesnt like getting some free money even ifyou do have to chip it out of a massive piece ofice!!


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2. POSTER IN PARIS

McDonalds creates more and more innovative

ads like this one in Paris.
http://localhost/var/www/apps/conversion/tmp/scratch_5/Venez%20Comme%20Vous%20%C3%8Ates%20-%20Ev%C3%A8nement%20Paris%202012%20-%20McDonald's%20-%20YouTube.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Venez%20Comme%20Vous%20%C3%8Ates%20-%20Ev%C3%A8nement%20Paris%202012%20-%20McDonald's%20-%20YouTube.mp4


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Guess the symbol?

The Mercedes Benz

-The Best Or Nothing


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Brief History

Mercedes-Benz traces its origins to Karl Benz's creation ofthe first petrol-powered car, the Benz Patent Motor wagen,patented in January 1886 and Gottlieb Daimler andengineer Wilhelm Maybach's conversion of a stagecoach bythe addition a nana a petrol engine later that year.

The Mercedes automobile was first marketed in 1901 byDaimler Motoren Gesellschaft. The first Mercedes-Benz brand name vehicles were produced in 1926,following the merger of Karl Benz's and Gottlieb Daimler'scompanies into the Daimler-Benz company.

Mercedes-Benz is one of the most well-known andestablished automotive brands in the world, and is also theworld's oldest automotive brand still in existence today.


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Consumer Products

According to Business Week magazine, Mercedes-Benz is part ofthe top ten most recognizable global brands.

Mercedes-Benz is considered a luxury car maker and thatreputation is unlikely to change. Mercedes-Benz is the worldsoldest automotive brand still in existence today.

Mercedes-Benz is not a company by itself; its a division of DaimlerAG, its parent company. Mercedes-Benz is a German manufacturerof automobiles, buses, coaches, and trucks.

There are up to 16 different classes of consumer cars which werelaunched by Benz.

Benz was funded by the European Unions EUREKA an amountequivalent to 800 Euros to build an autonomous car which droveitself from Munich to Copenhagen.


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Benz Provide Top Notch Luxury Cars


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Racing History

Mercedes-Benz formerly competed in Grand Prixmotor racing in the 1930s, when the SilverArrows dominated alongside rivals Auto Union.

Both teams were heavily funded by the Naziregime, winning all European Grand PrixChampionships after 1932, of which RudolfCaracciola won three for Mercedes-Benz.

It returned to formula 1 tracks in 2010.

This way Benz proudly presents its amazingachievements on track and newest vehicles.


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Formula 1 Safety Car


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Formula 1 Race Cars


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Major Market America

Policies Relating To Names

Year 1954 1964 1974 1984 1994

Sales 1,000 11,234 38,826 79,222 73,002

Sure, Mercedes has a global market but the US is one of thestrongest markets they have. Because of the global nature of theirmarketing efforts, Mercedes-Benz has faced tough challenges.

There is no doubt that the execution of a global marketing andadvertising campaign is far more complex to design than a nationalor local campaign. Translation issues are usually a problem in those

international plans. Hence, the Mercedes cars stay away from a formal name on their

models and they stick to letters and numbers


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MARKETING VISION

Due to the nature of the Mercedes-Benz products, namely, luxurycars, the company is known for expensive cars, parts and services.

Mercedes campaign focuses on image, not the current globalrecession and economic hardship.

Other car dealers such as Ford and Hyundai which took advantage

of the current economic difficulties many potential clients areundergoing and placed an advertising campaign showing solidarityto them and offered payment plans for financed vehicles andpromised to help them even if they lose their jobs.

On the other hand, Mercedes launched a communication strategythat emphasized, not the value of the cars and the great deals, but

the cars technology and heritage, a somewhat standard approachfor the brand.


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Mercedes, aware of the recession and the decline insales for the year 2009, ran the ad on TV and displayedthe price for the E-class car starting at $48,600.

This subtle piece of advertising had a powerful impact.In 2003, the E-class car had a 9% higher price. Insteadof stating and promoting the discounted 9% price, theyonly decided to show the new price. And this improved

Sales because people perceived higher value for higherprice.

Therefore, it can be inferred that Mercedes vision ontheir marketing communication will always beconsistent to the historical background and the

perceived high value of German engineering instead ofpromote themselves as a desperate company tocapture sales no matter what.


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SWOT Analysis

Strengths: The Company has been in the car manufacturing industryfor more than 100 years. It is safe to say that Mercedes is not goinganywhere. The robust brand image and name has an invaluablegoodwill. The first thing that comes to mind when a person hearsthe Mercedes-Benz brand is prestige, quality cars and a statementof glamour and status. The value of the perceived worth of thebrand makes it desirable and marketable to members of the middleand upper classes worldwide. Therefore, it is possible to capitalizeof the name and exploit the muscle the logo and trademark have toenhance the product.

Weaknesses: Mercedes-Benz is not the only one making and selling

luxury cars. The market share is deeply affected by toughcompetitors like BMW and Lexus. During the time of the mergerwith Chrysler, Mercedes took a hit on market share and qualityperception. Still, the strength of the brand itself helped to capitalizegains back in the years 2006 and 2007.


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Opportunities: Other brands weakness is our brandsopportunities. Given that Mercedes is the perceivednumber one luxury brand the company must remain inthat position and not lose ground.

Threats: The bad economic times that we are livingnow are threatening Mercedes-Benz sales in themiddle class market. Back in 2009 the company startedto air a TV commercial that pointed out the looks andthe history of the car showing a discounted price. This

is a reflection that the company is aware of the dangersof losing customers in the US due to the recession. Yet,this is a problem that all luxury makers face duringdown times.


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Promotion and Publicity

Car shows in Paris, London, Las Vegas, New York andDetroit attract masses and it is the best showcase to exposethe goods. Many people who cant realistically afford aMercedes still look up to get one day one of those. Carshows are corner stone in the promotion of the cars and

brings also word of mouth publicity that lasts days after thecar show event. The media usually plays a good role to theadvantage of the car maker since they cover the storiesthat cars make in the auto shows.

TV is an important media outlet to expose the cars due to

the ample reach and the ability to enhance productfeatures by means of great visuals and special effects,beautiful models and relaxed and sophisticated settings.


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Mercedes-Benz logo has been recently seen inmajor sport tournaments. The tennis grand slamtournament in UK, Wimbledon British Open hasfeatured the Mercedes logo in the main court

net, a high profile spot that is impossible to miss.By connecting the brand to a prestigious worldevent Mercedes achieves to enhance theluxurious position and creates a bold mental

model in the tournament viewers. Since its entryinto Formula 1 it too has become a good platformfor advertising.


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Advertising Budget

Year 2005 2006 2007

Mercedes-Benz $1.5 $1.8 $2.3

Advertising Expenditures (in Millions)

Whereas the sales for the company have decreased. The comparative figures

against the competition are also very revealing.

Competitive Sales (in Millions)/Share of Market

2005 S.O.M. 2006 S.O.M. 2007 S.O.M.Benz $21.00 37.50% $29.00 36.71% $39.00 35.45%

BMW $23.00 41.07% $31.00 39.24% $45.00 40.91%

Audi $12.00 21.43% $19.00 24.05% $26.00 23.64%
http://localhost/var/www/apps/conversion/tmp/scratch_5/Mercedes%20Benz%20-%20-It's%20Ready-%20-%20YouTube.mp4http://localhost/var/www/apps/conversion/tmp/scratch_5/Mercedes%20Benz%20-%20-It's%20Ready-%20-%20YouTube.mp4


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Conclusion

The Mercedes-Benz website is the boldest statement ofprestige and luxury that anyone can make for a car. It isthe best resource for information about their productsand also sells the idea of a glamorous sport car.

Mercedes-Benz also features why their cars are wellengineered.

Vic had no idea the traffic ahead was stopped.Thankfully, his car did. As Vice President of Engineeringat Google, Vic Gundotra knows all too well that

technology is capable of remarkable things. But evenhe was amazed when the advanced safety systems inhis Mercedes-Benz helped prevent a potentiallydisastrous collision


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The advertising efforts are enormous because they area global company that needs to adapt to local marketsand reach millions. As in the case of the Canadian

market, some unexpected issues may raise with aproduct name or concept. What is appealing in Europemay not necessary be the case in Africa or elsewhere.The company has a long consistent history of qualityand durability that allows them to grow in a highly

competitive market. Mercedes has done a good job in presenting the brand

on TV and the internet with powerful visuals and mind-blowing videos that portrait the sleekness andsophistication of the Mercedes brand appealing to

young and mature audiences alike. There is noquestion that Mercedes will continue to market all ofits products successfully.

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MC Donalds and Benz Advertising Statergies