Mercedes-Benz Analysis Report Sample

Textual Analysis and Planning

Table of Content

Consumer behaviour

Situation/environment factors.

Political factors:

Environmental factor:

Economic factor:

Social factor:

Technological factor:

Segmentation.

Geographic Segmentation:

Demographic Segmentation:

Psychographic Segmentation:

Behavioural Segmentation:

Target audience profile.

Advertising effects.

Media mix choices.

Print media

Social media

Consumer Behaviour

Consumer behaviour is the study of consumer’s behaviour or process or action toward purchasing a product (East et al., 2016). There are numerous models of consumer behaviour that have distinct approaches and measures to evaluate consumers’ behaviour. Some of the models are Nicosia model, Sociological model, Howarth Sheth model, Psychological model, Economic model and many others (Schutte and Clarlante, 2016). According to Phillip Kotler, there are five stages a customer undergoes to make a purchase decision (Munthui, 2009)

• Realising Problem or Need: In this stage, the consumer realises the need or desire to purchase a product.
• Seeking Information: At this stage, the consumer seeks for the relevant information that will help him purchase a product that best suits his requirement
• Evaluating Alternatives: After gathering information about various options, the consumer evaluates the alternatives on different parameter.
• Final Purchase Decision: After evaluation of different options, the consumer makes the final purchase decision considering the product which is fulfilling requirement within budget.
• Post-Purchase Evaluation: Once a customer consumes a product for a period, the consumer goes to evaluate the satisfaction level. If a customer has a high level of satisfaction, there is a tendency to frequently purchase the product and vice-versa.

For Instance, the sociological method would be best to analyse the psychology of the consumers of Mercedes-Benz. In this method, it can be found that the primary group consisting of peers, friends, relatives, acquaintances or family influence purchasing decision. Similarly, the second group consisting of other members of society and their personality type and requirement are based on same.

Situation/Environment Factors

Political factors: Australia is a vast country consisting of 6 states and 2 territories. It is officially known as the Commonwealth of Australia and the federal system governs the country. In the current, Scott Morrison is the prime minister of the country and belongs to Liberal party ruling in alliance with the National Party of Australia. The government has political stability because the prime minister was re-elected in two consecutive elections. The government focuses on tax reduction along with the new climate and economic policies. Also, the country ranks 5^th in the world in terms of the business environment (Standertrade, 2020).

Environmental factor: The environment of Australia is rich in biodiversity but its majority of soil is poor in nutrient and unproductive. Only six per cent of land is arable and the water is in shortage across the nation. Water pollution is a serious problem affecting the marine life which is majorly caused by land-based activities (Australian Government, 2020). To protect the environment from pollution created by vehicle, the government implemented the Green Vehicle Guide (GVG) that restrict the emission level in the vehicle and limits the sale of fuel that generates more pollution. Also, the motor vehicle should meet the standard stated under Australian Design Rule (ADR) and get tested for the same (Australian Government-Infrastructure, 2020).

Economic factor: Australia is the world's 14^th largest economy rated AAA with a stable outlook by the top three global rating agencies. It is GDP is constantly growing for 28 years and it is forecasted it will continue to grow at 2.7% annually for the next five years. The country has shown the highest growth among major advanced economies. Moreover, the government embraces the FDI which now constituting $286 billion to Australia's Industry Value Added and employing 1 out of 10 persons in the nation (Austrade, 2020). Currently, the GDP (PPP) is $1.3 trillion with per capita income of $52,373 and FDI inflow of $60.4 billion (Heritage, 2020). Besides, the current tax rate for the company is 30% for above $25 million and 27.5 % for $25 million to $18,200 and below this, there is no tax applicable (Australian Taxation Office, 2018).

Social factor: By 2018, Australia had a population of over 23 million and average life expectancy of 80 years and 84 years for men and women respectively (BBC, 2018). Australia is a home multicultural and multiracial society and it further classified under three categories as lower class, middle class and upper class. The upper class constitute 5 to 10 per cent and holds the majority of the property, capital and ownerships including expensive cars, homes and clothes. Moreover, there are plenty of migrants across the country who are an integral part of the country along with indigenous people. The boasts of its some of the popular universities attracting many international students every year (Robinson, 2018).

Technological factor: Australia is among the most technologically advanced country in the world. The people here adopt new technologies at higher rates as compared to other nations (NY Times, 2017). Even the government itself technologically savvy, recently the government has tested blockchain technology to collect vehicle ownership details to establish transparency around luxury car tax (LCT) with government authorities (DTA, 2020).

Segmentation

Four segments for Mercedes-Benz are

Geographic Segmentation: This segmentation divides the market between the basis of nation, state, region, zone and similar others (Juska 2017). Under this segment, Mercedes-Benz can seek those locations where people will have higher disposable income and higher preference to the luxury market or even can target large population nation because the small portion can also give enough customers.

Demographic Segmentation: This segment classifies the market based on age, life-cycle, gender, income, religion, belief, qualification, designation, and many others (Green and Keegan, 2019). The Mercedes-Benz can target based on income and age because it can get customers of income group who can afford it and age group who have the desire to own luxury car at a young age mostly between 25 -40 years old.

Psychographic Segmentation: This segment categorises potential buyers on the basic social class, personality, lifestyle, belief, value, attitude, interest and several others (Gajanova et al., 2019). Mercedes-Benz may target on this basis because here it can get the customer who has a rich lifestyle or are brand conscious or even strong desire to own a luxury car for their psychological gratification.

Behavioural Segmentation: In this segment, the customer behaviour based on the occasion, benefits, loyalty status are usage rate are considered (Susilo, 2016). Here, Mercedes can target those who seek comfort for higher price or advance or premium quality for a higher price or even world-class after-sale service.

Target Audience Profile

The demographic segment would be most profitable for Mercedes- Benz because the company can target the rich and high-income people who can afford the price of the car. Also, the company can target those age group (25-40 years old) who have a burning desire to own luxury along with stable income to turn their desire into reality. This segment has two factors that make them best to target which are Income and Desire because the money can turn desires into reality. Unlike other groups, some hindrances will stop a potential buyer to afford this.

Advertising Effects

As per the given scenario in the advertisement, it seems that the company is targeting people with different desire in the same car just like their distinct personality. It can be seen in the advertisement that Mercedes has launched a new A-Class sedan classic with customise- able and technologically advanced feature. The new advertisement stares different people with the different expectation from Mercedes and Mercedes is fulfilling the needs of all by listening to them. Also, the advance features like voice command and light adjustment are making it easily customisable for the distinct need of different people. This advertisement is targeting the same segment of young people for a classic car with technologically advanced features incorporated in it.

Media Mix Choices

Two media vehicle that could be used to support the ‘big idea’ communicated in the advertisement are

Print media- The Mercedes can use luxury lifestyle magazines. Such magazines are majorly read by upper and elite class people who have high income and a strong desire to explore and own luxuries. This media mix will massively appeal to a large audience of higher income and preference to luxuries. Such customer can be enticed through detail explanation of the model of the car and its new features combined with luxury that will gratify the cravings of the rich and upper class seeking for such cars.

Social media- The Mercedes Benz can opt for Facebook because there are over 2 billion users from all walk of life which also includes rich and upper-class people from all geographies. The Mercedes-Benz can use its official page to convert existing users to upgrade their old Mercedes with the new one. Also, Mercedes can leverage luxury lifestyle pages or cars pages where massive customers are engaged and can be targeted easily.

References for Mercedes-Benz Report

n.a 2020. Our Natural Environment. [Online] AUSTRALIAN GOVERNMENT. [Available at] https://info.australia.gov.au/about-australia/our-country/our-natural-environment [Accessed on] 8^th May 2020.

n.a 2020. Economic and political outline. [Online] SANTANDER TRADE. [Available at]: https://santandertrade.com/en/portal/analyse-markets/australia/economic-political-outline?&actualiser_id_banque=oui&id_banque=0&memoriser_choix=memoriser [Accessed on] 8^th May 2020.

n.a 2020. Vehicle safety & the environment. [Online] AUSTRALIAN GOVERNMENT- INFRASTRUCTURE. [Available at] https://www.infrastructure.gov.au/vehicles/environment/ [Accessed on] 8^th May 2020.

n.a 2020. Robust Economy. [Online] AUSTRALIAN TRADE AND INVESTMENT COMMISSION.[Available at]: https://www.austrade.gov.au/International/Invest/Why-Australia/robust-economy [Accessed on] 8^th May 2020.

n.a 2020. 2020 Index of Economic Freedom. [Online] HERITAGE. [Available at:] https://www.heritage.org/index/country/australia [Accessed on] 8^th May 2020.

n,a . 2018. Changes to company tax rates. [Online] AUSTRALIAN TAX OFFICE. [Available at]: https://www.ato.gov.au/rates/changes-to-company-tax-rates/ [Accessed on] 8^th May 2020.

Robinson, N. 2018. Australia hosting unprecedented numbers of international students. [Online] ABC NEWS. [Available at:] http://www.abc.net.au/news/2018-04-18/australia-hosting-unprecedented-numbers-international-students/9669030 [Accessed on] 8^th May 2020.

n.a 2018. Australia Country Profile. [Online] BBC.[Available at:] https://www.bbc.com/news/world-asia-15674351 [Accessed on] 8^th May 2020.

n.a 2020. Simple, clear and fast public services. [Online] AUSTRALIAN GOVERNMENT-DIGITAL TRANSFORMATION AGENCY. [Available at] https://www.dta.gov.au/help-and-advice/technology/blockchain/do-you-need-blockchain/blockchain-case-studies/blockchain-case-study-australian-taxation-office [Accessed on] 8^th May 2020.

n.a 2017. How Australia’s Technology Stands Out. [Online] THE NEW YORK TIMES. [Available at] https://www.nytimes.com/2017/10/25/technology/personaltech/australia-technology.html [Accessed on] 8^th May 2020.

East, R., Singh, J., Wright, M. and Vanhuele, M., 2016. Consumer behaviour: Applications in marketing. Sage.

Schütte, H. and Ciarlante, D., 2016. Consumer behaviour in Asia. Springer.

Munthiu, M.C., 2009. The Buying Decision Process and Types of Buying Decision Behavior. Sibiu Alma Mater University Journals. Series A. Economic Sciences, 2(4), pp.27-33.

Juska, J.M., 2017. Integrated marketing communication: advertising and promotion in a digital world. Routledge.

Green, M.C. and Keegan, W.J., 2019. Global marketing. Pearson.

Gajanova, L., Nadanyiova, M. and Moravcikova, D., 2019. The Use of Demographic and Psychographic Segmentation to Creating Marketing Strategy of Brand Loyalty. Scientific annals of economics and business, 66(1), pp.65-84.

Susilo, W.H., 2016. An Impact of Behavioral Segmentation to Increase Consumer Loyalty: Empirical Study in Higher Education of Postgraduate Institutions at Jakarta. Procedia-Social and Behavioral Sciences, 229, pp.183-195.

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Management Assignment Help

Looking For Complete Assignment Sample Get It On WhatsApp