Table of Contents
Executive Summary
The main objective of the study was to evaluate the concept of grow up campaign by the Mercedes Benz, with much focus being the explanation of the transformations associated with the traditions and value of its brands. Mercedes is well known to manufacture and assemble vehicles that are high class. The study also evaluated the importance of the “grow up campaign”, with much focus being marketing segmentation. Marketing segmentation that has been developed targets generational clients – specifically the Millenials. The discussion has also provided literature information that explains the concept of marketing segmentation particularly through cohorts and more information about the “grow up” campaign that the company has established. The literature also discusses the major issues affecting Generation Y consumers, especially issues related to social class, economic recessions and their ability to still purchase quality products regardless of their economic situation. The marketing campaign by Mercedes Benz is successful as it explains the major aspects related to traditional inheritance by the Millenials.
Background information
The major discussion surrounding the Marketing communication conducted by Mercedes Benz is the appreciation of the customers through explaining that they have the ability to have a ride in their vehicle. The company has established an important brand that is appreciated in terms of class and style. Through the “grow up campaign”, the company considers its values and provides a direction regarding the transformation of its traditions through generations until the current generation. Mercedes has established a tradition that makes them highly competitive in the market, ensuring that their customers are satisfied with their product. Mercedes-Benz as compact car for family seems to embrace a new approach to market place as grow up inventions. The need for grow up operation is mainly to target the youths and young adults who tend to embrace modernity and new compact life.
The launching held in early March of 2017 US rapper AՖAP Rocky was one of the new brand launched. The campaign-grow up mainly consist of new model series that exposes much progressive and more dynamic brand identity of Mercedes-Benz. This identity is highly related to its traditions and much focus has been directed towards the importance of class while reaching the middle income clients. In other words, the financial crisis has made Mercedes Benz to consider its traditions in developing vehicles that can be purchased by the middle income clients and the high income clients who are facing some economic crisis – but still want classy products.
Literature review
The literature review evaluates the major issues surrounding Mercedes Benz and its evolutions with respect to its traditions. The goals of the campaign are critically explained. For instance, reinterpretation of traditional attitudes and believes to Mercedes- Benz whereas showing the contemporary understanding and significance among the targeted groups as explained by the vice president marketing Mercedes-Benz cars, Dr. Jens Thiemer. The grow up movement is also comprehended as a process hence some of the strategies are not easily advertised due to wider view of digital focus and mechanical part of it.
Digital Hub as the campaign’s key strategy
The hub’s website has led to an enhancement of consumers in their attempt to discovering the ‘Grow up’ domain. According to Mercedes (2017), the main purpose of the campaign is to uncover the brand car family’s models by relating them to the young personality’s character. For example, at present, if a disagreement occurs between family friends, it can lead to several months of complete silence. Later however, the parties may realize the significance of true friendship and opt to resolve the issues. This in a similar way helps explain the Mercedes-Benz’s life as one that is undoubtedly promising. The videos and films available on the internet are strategically made in such a way that the images show young and looks that are reliable without staged posing. In a likewise, the vehicles are made part of the action in ways that make them ordinary.
The Face of the New Contemporary Luxury
In the current society that is trending, the upcoming generation has displayed its decisiveness towards life. For example, this is shown in the purchase and use of the new model Mercedes-Benz. Several films over the campaigns portray how often the brand has been used. For instance, there is a movie that has depicted the lifestyle of the new generation, which hand in hand matches with the campaign’s message. This further serves to explain the opinions and views of the new generation as far as the company Mercedes-Benz is concerned.
Market Segmentation of cohorts
Division approaches that have for some time been referred to utilize unmistakable factors, for example, statistic and geographic techniques, alongside psychographic approaches that endeavor to go past the surface of buyers so as to comprehend purchasing inspiration among other behavioral issues (Moroko and Uncles, 2009). The behavioral issue of ‘why customers purchase’ is of awesome significance in outlining and executing systems for retailing. Age has for quite some time been utilized as a division variable yet, as we will see, it doesn’t address the “whys” of utilization and customer inspiration (Parment, 2013). Advertising as indicated by generational accomplice digs underneath the distinct surface to comprehend inspirations related with age
Marketing segmentation with respect to cohorts focuses on various aspects. The concept of clients or consumers having differences in terms of the type and amount of efforts directed towards particular shopping trend have been established in diverse fronts in marketing (Moroko and Uncles, 2009). These differences are highly critical in understanding the needs of the generations and marketers can utilize strategies that can manipulate the consumer reactions towards particular products (Parment, 2013).
Accepting that foundation and encounters of a partner have an impact on the accomplice’s esteems, these elements are likewise liable to impact the level of purchaser inclusion (Parment, 2013). It has been recommended that Age Y people put little exertion, feelings and time into low-inclusion choices, for example, the decision of power or home protection provider, yet a great deal of exertion, vitality and feelings into high-contribution choices (Moroko and Uncles, 2009). In spite of the fact that a correlation of partners’ buy conduct can’t wipe out the cover of the accomplice impact and the age impact, it might reveal some insight upon the buy conduct of various companions (Parment, 2013). A few investigations demonstrate that buyers’ spending designs shift throughout a person’s life cycle. The procurement level contribution, a thing that apparently varies from item classes, is urgent in appreciating buy considerations and decisions. Previous study recommends the level of association to differ significantly over group accomplices; for example, Generation Y “may be spending more effort on items that are of high-inclusion when contrasted with the other cohorts”.
Analysis of MARCOMMS campaign
From the background information, it is important to consider that Mercedes are mainly engaging in the process of market segmentation, where it targets the Generation Y – as they are not aware of the real class of Mercedes Benz. The old generation – especially those who bought Mercedes in the 70s and 80s – know exactly what quality meant when one had a Mercedes Benz car. During those days, special vehicles were rare and the presence of Mercedes Benz indicated that the owner was in a special class (Mercedes, 2017). However, the Generation Y does not seem to consider these aspects since new quality products have also emerged into the market. In this case, the company was targeting the consumers that are grouped into age, stage of life and the cohorts. Cohorts have established a way of life where they usually purchase or engage in acts that are similar.
Generation Y people have focused on having classy lifestyles even if there are no funds to maintain that lifestyle. The middle income earners within the Generation Y are concerned with living quality life and living large, where they purchase particular brands of products and maintain the levels of social interactions (Parment, 2013). The cohorts have gone through events during their childhood, adolescent and adulthood – these events are critical because they influence this group in the development of attitudes, values as well as preferences and these aspects remain as long as they are alive (Parment, 2013). In other words, there is a particular lifestyle that they maintain, they have to go higher and not lower in terms of quality and social class.
However, one major characteristic about Generation Y – the Millenials – is that they have gone through the great recession that has consumed the world. The Generation has therefore witnessed various challenges regarding economic planning; many are unemployed and therefore they cannot be able to meet the conditions of purchasing various products that are considered expensive. Nevertheless, these challenges have not hindered them from maintaining the idea of living according to their thoughts and demands regarding class. They have still struggled to ensure that the little money they get is used in building up a classical life.
Mercedes has taken the opportunity of evaluating the demands of the Generation Y clients while also rethinking on how it can remodel its traditional vehicles into modern vehicles. Marketing segmentation in this case is highly influential in understanding the needs of the clients (Mercedes, 2017). Mercedes has established a form of tradition that can be expressed to the Millenials in terms of value, class and traditions. Mercedes has therefore been successful in meeting the demands of this group of clients by enticing them to understand the need to appreciate the traditions and values as far as class and quality are concerned.
Conclusion
Mercedes Benz has always established its values and traditions in meeting the demands of its regular clients. However, with change in Generations, there are concerns about how the company continues its traditions while meeting the expectations of the new generations. The millenials have lived during a time when there is great economic recess; meaning Mercedes has focused on developing ways through which it maintains class and identity. Therefore, Mercedes considered developing a marketing segmentation by expressing the important forms of campaigns. This study evaluated the Grow up campaign which is considered successful in ensuring that it explains to the Millenials regarding the importance and value of traditions. Therefore, the grow up campaign was important in showing the clients how much the company appreciates them.
- Parment, A., 2013. Generation Y vs. Baby Boomers: Shopping behavior, buyer involvement and implications for retailing. Journal of retailing and consumer services, 20(2), pp.189-199.
- Sudbury, L. and Simcock, P., 2009. A multivariate segmentation model of senior consumers. Journal of Consumer Marketing, 26(4), pp.251-262.
- Mercedes 2017. “Grow up” – Stories of a new generation.
- Moroko, L. and Uncles, M.D., 2009. Employer branding and market segmentation. Journal of Brand Management, 17(3), pp.181-196.