Mercedes-Benz The Luxury of Premium Brand DNA

Nick Kelvin BJK&E Media

How Mercedes-Benz's brand DNA has enabled it to evolve and redefine itself to meet today's and future consumer demands of a luxury marque"

Key DNA Attributes

Exclusivity

Assured Quality

Authenticity

Pedigree

History of Mercedes-Benz

History of Mercedes-Benz

History of Mercedes-Benz

History of Mercedes-Benz

Example Mercedes-Benz World Firsts

Collapsible Safety Steering Column Crumple Zone Safety Headrests Front Passenger Airbag

Standard Airbag
ABS Seatbelt Tensioner ESP Brake Assist Seats with integrated Seatbelts

Side Airbag

Mercedes-Benz: A Top Ten Global Brand

Source: Business Week / Interbrand: Top 100 Brands 2006 Source: Business Week / Interbrand : Top 100 Brands 2006

Logo Says It All

The three-pointed star is better recognised around the world than the Christian cross

International Olympic Committee: Worldwide Symbol Recognition Survey, 1995 Enduring Passion/Leslie Butterfield

More than a car

Andy Warhol

Cars

or a conventional brand

Mercedes-Benz is the most mentioned brand in song lyrics

Source: agendainc.com

its a cultural and social icon

Encapsulated in MB-World

Total Mercedes-Benz Brand Experience at Brooklands

Key DNA Attributes for Reinvention

Exclusivity

Assured Quality

Authenticity

Pedigree

High-End Luxury Maker or Go for Growth?

The best or nothing

The best for the customer

We had to take the brand out of its niche, and allow for economies of scale. We couldnt restrict ourselves to some sort of Tiffany brand
Hilmar Kopper Supervisory Board Daimler-Chrysler

Exclusivity is not just about price, its about concept. Achieving a premium position in each sector is possible
Prof. Jrgen Hubbert CEO Mercedes Car Group (to 2004)

From Three New Cars in Ten Years

Year:

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988.

to New Broader and Deeper Range

Year:

93

94

95

96

97

98

99

00

01

02

03

04

05

06

Sharing the Same DNA

and Opening up to More People

Adulthood Exploring, questioning the value of things
Beginning careers, working hard, seeking life experiences and answers Middle Age

Maturing Years Adding value to life, no compromises

Taking control, doing things always wanted to do/dreamed of doing

Life and career are established and steady

Working hard, achieving balance, seeking stability and respect

Source: Workshop

While Protecting the Price Premium

Mercedes-Benz needed to turn from being seen as a reward after a successful career to being an on-going reward through a successful career

Rewarding Companionship
Adulthood Exploring, questioning the value of things
Beginning careers, working hard, seeking life experiences and answers Middle Age

Maturing Years Adding value to life, no compromises

Taking control, doing things always wanted to do/dreamed of doing

Life and career are established and steady

Working hard, achieving balance, seeking stability and respect

represents a marker, a rite of passage, part of lifes journey

is stopping to enjoy the trappings of success and gaining recognition for achievements

Reward

represents taking control and rewarding yourself with special experiences

Source: Workshop

Models

There is an element of status that is the outer-directed expression of wealth

Flash, Showing off The idle rich Decadence Indulgence

Opulence / excess
Competition Power, position

Source: Workshop

New Status Values

Inner Directed

Personal Reward
Substance
Status Symbol

Self deceit Delusions of grandeur

Vacuous
Flash Bling

Outer Directed

Source: Workshop

Today status symbols are more about the experiences they deliver

Private self fulfilment A reward for effort Fuelling knowledge and ideas Taking control A journey Escape Inner peace and wellbeing

Source: Workshop

Mercedes-Benz Transcending Outer Directed Values

Marque X
Rewarding individual experience Obviate the negatives of driving Public show of indulgence Accentuate the positives

Make life better

Balance, harmony, control At one Nothing to prove

Make life more exciting

Aggression Out do Everything to prove

Effortless
Get there better than when you left Arrived Planned, no surprises

Trying your hardest

Push to the limit to get the most out Still getting there The unexpected

Source: Workshop

The Strength of Mercedes-Benz DNA

ESP installed to all A-Class Virtues of being a Mercedes Paradoxically, may have increased brand warmth

A-Class

Has Mercedes-Benz's brand DNA enabled it to evolve and redefine itself to meet today's and future consumer demands of a luxury marque?

The Highest Mainstream Marque Trade-ups

Mercedes-Benz Sales

> 30% more trade-up sales than nearest rival

A-Class accounts for 26% trade-ups

Source: Market Intelligence Services

YTD Sales: August 06

Mercedes-Benz

+11.2%

Competitive Set

- 2.6%

Total Market

- 4.3%

Source: Market Intelligence Services

Mercedes-Benz: Redefining Luxury

Exclusivity

Knowledge

Time and Experience

In/Outward Life Phases

New/Old Money

Thank You