Marketing Mix - Mercedes vs Dacia

Marketing Mix - Mercedes-Benz vs Dacia

Hey! Welcome to my blog. This blog will be discussing the marketing mix. The definitions of the 7 p's. How car companies such as Mercedes and Dacia implement the marketing mix within their business. And how the marketing mix between the two companies are different/similar.

Background Information -

Mercedes-Benz was founded by Daimler-Benz in 1926 and is known for luxury vehicles , buses, coaches, trucks. They have a wide range of cars on offer. In 2016 the least expensive car they offer is the Mercedes A-class and most expensive being the Mercedes AMG divisions.(Mercedes-Benz UK ; Product Range)

Dacia is part of the Renault company. Dacia is a Romanian car and was founded in 1966  provide basic and cheap cars, The quality and price of Dacia are nowhere near that of Mercedes. They have a small range of cars on offer the least expensive being the Dacia Sandero which costs around £5,000 and the most expensive car they offer is the  Dacia Duster which is around £9,000.(Dacia UK; Homepage)

What is the Marketing Mix?

The marketing mix consists of 7P's.

Product - The product must satisfy the needs of the buyer without the product the business will not function. For businesses to create products they must do marketing research before launching products into the market. The product must fit into a gap in the market otherwise little interest will be generated.(Marketing Mix.com)

Price - This is how much the organisation is selling the product/service for. The price must be realistic and over the cost price so that the business makes a profit. Also, the different types of pricing businesses use to sell their product.(Marketing Mix.com)

Place - The product must be accessible to potential buyers this comes  through understanding of your target market. If the product is for a higher class of people then it should be accessible to those in developed countries. It also includes the distribution of the product.(Marketing Mix.com)

Promotion - This is how the product/service is shown to the public. It can happen in a number of ways, TV adverts, posters, billboards etc. Now that marketing is spreading to the social media many businesses promote products on facebook, twitter. Many supermarkets do this by BOGOF (buy one get one free) and half price discounts.(Marketing Mix.com)

People - This s a vital part of any business without people the business simply would not survive. Organisations must have the right people onboard those who have an expertise in that sector e.g. If an engineer is required there would be no gain in employing an accountant. (Marketing Mix.com)

Process - A business must have a systematic process in order to run effectively. The process affects the end result of the service. e.g a distribution centre must have an office team to deploy orders without this there would be confusion within the workplace.(Marketing Mix.com)

Physical Evidence - This is the physical evidence within  an organisation to show that a  service was actually received. This can also mean the presence of a business in the market place e.g when we think of fried food we automatically think of KFC. (Marketing Mix.com)

The Marketing Mix of Mercedes-Benz

How Mercedes-Benz use the Marketing Mix?

Product- Mercedes is a world-wide brand that almost everyone knows of. Mercedes have a wide range of cars,trucks and bus's to choose from. Mercedes competitors are BMW and Audi they also make luxury vehicles.  Mercedes-Benz has many different cars suited to each need. In 2016 they have 15 variants to choose from (not including coupe, cabriolet , AMG editions)(Mercedes ; Homepage). The smallest car Mercedes provide is the A-class and the largest they provide is the GLS. As-well as the sports cars which include AMG GT , SL , SLC and luxury cars like the C-class , E-class and S-Class. (Mercedes-Benz UK ; Homepage) . This provides a car for all customers. In the 2016 Auto Express 'Best Selling Cars' the Mercedes C-class was 9th place because of its interior and comfortable ride.(Auto Express)

Other Products from Mercedes-Benz -

Mercedes have trucks , busses , vans and Maybach. They also own Smart car. An example of a truck that they offer is the Mercedes Truck this offers reliability and top-class product. Another truck is the Freight-liner these trucks are most popular in North America offering state of the art technology and great safety. The Fuso pretty much as a name for itself and as a reputation in Japan, Asia, Middle East. This company that make the Fuso is owned by Daimler at 90% stake. Daimler is the overall name for Mercedes cars , trucks etc. The BharatBenz bus is available in India. It is a ultra-modern bus from Mercedes, however, it's also been offering school trips and tourist trips in India. There are also Mercedes bus and coaches which are available all around the world.From urban buses, Intercity buses and coaches etc. Mercedes also have a wide range of vans on offer sprinter , vito and citan. These vans offer luxury and reliability depending on specification. (Products ; Daimler)

New Products - The Mercedes Concept X-class will the first time Mercedes has gone into the pick-up truck industry. It offers the level of quality that you would expect from Mercedes aswell as with the capabilities of a tough mid-sized pickup truck. (Products ; Vans ; Daimler). there is also the new AMG GT-R coming out and others.

Price - Mercedes manufactures a range of different cars from saloons to sports cars all with that luxury element to it. Customers tend to pay more for that Mercedes badge. ( Hitesh Bhasin ; Marketing 91). The cheapest car Mercedes offer is the standard Mercedes A-Class costs £19,990,00 (Mercedes UK ; Model Chooser)   and the most expensive at base price is the Mercedes AMG GT costing £98,195,00. This is not including the optional extra's which can increase the price quickly because as a Mercedes customer you want everything. For example, a base price C-Class is £24,000,00 with the top C63 version the base price is £44,000,00. (Mercedes UK ; Model Chooser). 

Mercedes also provide various finance and personal contract agreements. A personal contract plan means that you basically lease the car from Mercedes for a fixed-term and fixed mileage. This means you do not take full ownership of the car. At the end of the agreement, you can choose to buy the car or give it back. This enables those who can not afford a prestige car like Mercedes have the ability and chance to drive one. (Mercedes-Benz ; New Car offers).

Promotion - Mercedes provide great finance offers this helps to promote Mercedes-Benz because a whole range of customers can afford to buy with them. (Mercedes-Benz ; New Car offers). Mercedes have taken to the social media to promote their products. They have Facebook, Twitter, Instagram and Youtube to help raise awareness to the younger population. Mercedes-Benz has also partnered up with content maker's and earned media to promote their products. They joined up with Casey Niestat a daily YouTuber. He created videos for Mercedes creating a demographic , cool image for Mercedes to attract younger buyers.( Stephen Zoeller ; How to use Marketing segmentation; Mercedes a success story).     

Mercedes E63 AMG this advert on Mercedes Youtube channel shows how they are trying to attract younger buyers by the sporty side of Mercedes and that Mercedes can combine fun with luxury. (The All New Mercedes E63 ; Youtube)

Place - Mercedes-Benz headquarters are in Germany. However, they have car plants all over the world . They make cars in India, Indonesia , Taiwan , Germany etc. Mercedes have the offer to configure your vehicles online this enables  customers to work out the price and spec before placing the order with your local dealer. (Mercedes ; Home page). There are 12 dealership locations in the UK. (Mercedes UK Inchcape ; Retail Centres).

People - Mercedes have roadside assistance and customer service contact numbers and offer great customer service. This is why people buy with Mercedes because of their customer service and after sales treatment. (Mercedes ; Contact Us). There are over 1 million employees involved with Mercedes. The founders are Karl Benz and Gottlieb Daimler. They joined up making the company Daimler-Benz.(slideshare.net)

Process - Mercedes are expanding to keep on top of its large customer base. This has meant that they have at to make outlets around the world. In India their are 69 outlets across 38 cities this is the largest network of luxury car makers in India. Their are also AMG centres in India since 2014 this as been made to keep up with demand and give the AMD experience to customers.(slideshare.net)  

  

The Marketing Mix of Dacia Automobiles 

How Dacia use the Marketing mix?

Product - Dacia is still a brand that is still rising within the UK market. They have a simple choice of products to choose from in the UK. In the UK there are only four models to choose from. The Dacia Sandero this is a small car similar to size as the Mercedes A-Class. This car is simple to configure with the choice of two engines. The petrol and diesel. However, more money can be paid for the range-topping versions. The optional extra is limited the extra option on the standard Sandero is the emergency spare wheel. (Dacia UK ; Car Configuration). The Sandero step-way is the sandero but sits slightly higher giving it a crossover feel. Similar size to the Mercedes GLA. Next, up we have the Logan mcv this is an estate car provides space for a family and holds a large boot capacity however personally the basic shape can sometimes be off-putting however you get the car at a cheap price. The Dacia Duster is a small SUV personally it is the best looking out of the Dacia range. (Dacia UK ; Home)  

The top version of a Dacia is the Ambiance Prime this is available on all models and adds things like Bluetooth connectivity and body coloured bumpers) (Dacia UK ; Home)  

In the past Dacia cars have not been high quality. However in the 2013 Geneva motor show Dacia had a new brand identity. The cars were redesigned to fit with modern times with a number of exterior updates and interior updates. The exterior was fitted with a new grille and headlights to make it more appealing. The interior also has updates such as bits of chrome in the interior and round dials this makes it contemporary and stylish enticing buyers. Also Dacia are offering media systems such as navigation's within the car and touch screen interface keeping up with modern cars. And things like USB ports to charge your devices. Since 2013 all cars were available in power steering even all models therefore a increase in the comfort of drivers buying the car. Depending on the version some cars have on board computer this allows things like temperature gauge which measures the temperature outside. All cars now have ABS anti-locking braking this improves the safety of the car.  

All cars now have hill start assist this prevents rolling back on hills which is a safety feature. The cars have a new revised engines this has meant better fuel economy and reliability.  Because the cars are now built with help from Renault and Nissan this has meant that the improvements have been made to the cars. However all this for a low price is the selling point of Dacia. (Dacia ; The Youngest Range in Europe). Because Dacia  has made these improvements this will increase sales because the cars provide what more expensive cars provide. 

The key selling points of Dacia vehicles are the comfort that it provides at a low price. The space this has contributed to the sales of Dacia cars because people with family's are buying them. Even though the quality is not great for most people. For the price it has good quality. Also the safety that the brand provides and after-sale service they provide. The economy is pretty good too.(slidshare.net)   

Products outwith the UK -  The Dacia Logan is available in saloon version great for small family's and Dacia have tried to make it stylish so that it is a contender when someone is choosing a car. The Dacia Lodgy is a new car for Dacia it provides better quality materials and a better layout internally. The Lodgy is a people carrier. The Dacia Dokker is large car providing space for a family with five seats and a large boot for storage. This is because of its boxy shape. It has sliding doors enabling passengers to get in and out easily. Dacia Dokker van offers space and has a modern design to it. (Dacia Group ; Car Models)

Price - Dacia use penetration pricing to market their products. The Dacia cars in the UK have a simple pricing strategy with low-cost cars and not many options to choose from. However, there are different versions of each car to choose from. The Dacia Sandero Access starts from £5,995 and with all options and top level spec then it goes up to £10,630,00 this is still less that half compared to a new Mercedes A-Class and you are still getting a car. (Dacia UK ; Car Configuration). Another example is the Duster with all options ticked the price went up to £15,795,00 still cheaper than a Mercedes A-class. Overall the price is significantly cheaper than the Mercedes, however, you are getting less quality product and not paying as much for the badge and still get a car that you can drive. (Dacia UK ; Car Configuration)

Like, Mercedes. Dacia also provides finance that is affordable for individual and family buyers and you can check on the Dacia website via an online application to see if you are eligible for finance. Quick and fast process.    

Promotion - Dacia promotes their cars with a various of sales promotions to increase their sales. Dacia gives all their customers a five-year guarantee on their new cars this entices customers to buy from them. They are also providing test drives before so that potential customers can see the benefits of having a Dacia cars. Dacia has also got involved in public relations they have sponsored various events to get their brand name out theirs. They attend trade fairs and exhibitions such as Geneva moter show to get their name out there. (Marketing Mix Analysis) 

Dacia use three different marketing strategies. In Romania  they are the market leader therefore they promote pride and confidence within the customers. In developing country's like Turkey they use a traditional approach. In Europe , Dacia plays a more revolutionary approach. People think that Dacia is a new product that changes the way people buy cars because of it's cheap price. (slideshare.net)    

Dacia has got the fourth best manufacturer in the Auto Express Driver Power Awards this is because of how affordable the vehicle is and how the brand is going strength to strength. The year before they got 5th position, therefore, they are improving their vehicles year on year. (Dacia ; Dacia News)

     

This advert shows that more and more people are driving Dacia as the brand goes strength to strength (Dacia ; Another one drives a duster)

Place - Dacia is based in Romania, however, have production facilities all over the world. Including Romania and Morocco. The UK cars are produced in the Renault-Nissan   factory in Chennai , India. The Sandero , Sandero Step-way and Logan MCV are built in Pitesti , Romania. (Dacia ; FAQ)

In terms of ordering your vehicle it can all be done online via the Dacia website, however, there are dealerships in the UK they tend to be joined onto Renault dealerships because Renault own Dacia. However, the dealership staff are separate. (Dacia ; FAQ)

Renault bought 51% of Dacia in 1998 after this there was upgrade of the industrial factors and modernisation. Two thirds of Dacia cars are exported (slideshare.net)

How is the Marketing Mix of Mercedes-Benz and Dacia similar/different?

Mercedes have a lot more products on offer filling all the niche markets whereas Dacia has a simple range. This can be a good thing as buyers are not confused with specifications. However, the downside is that if a customer can not find a specific product they will go elsewhere.

Mercedes have nearly all models available in the UK, however, some are not like the freight trucks and G-Class 6 X 6 because it just would not fit in the UK.

Both Mercedes and Dacia are always making improvement to their cars. Dacia made the biggest improvement in 2013 when they updated and improved their brand identity which meant greater sales around the world. Even though Dacia had made all these improvements Mercedes always has the better design and comes with much better technology, engine choice and safety equipment.

The price of Mercedes is obviously going to be higher this is because of the brand that customers want and the level of reliability and luxury they are out to find. And the level of safety that Mercedes provides. However, Dacia being significantly cheaper a lot of people are going towards them and the brand which is associated with cost-effective cars yet provides decent technology, reliability and safety.

The promotion is similar with Dacia and Mercedes this is because all car companies have adverts etc. However, Mercedes have a greater relationship with YouTubers so a lot of their promotion is with content creators. Dacia is trying to build a brand in the UK so they are mostly focusing on TV adverts showing that more and more people are driving Dacia's and they also offer guarantee's so the buyer has reassurance when buying a Dacia.

Both Mercedes and Dacia are available in the UK however Mercedes are more widespread than Dacia this is because Mercedes has been along for longer and they have the budget to export all around the world. Dacia does not have all models available in the UK.