Learn about how Mercedes-Benz leveraged economies of scale to produce an affordable luxury car (CLA) to increase top-line revenue growth and conquest sales without cannibalizing C-Class sales or reducing brand equity.

1. Presented by: Averi, Matt, Razz, Reggie & Sean
CLA-Class

2. Agenda
I. Product Introduction
II. Strategy
III. Market Analysis
IV. Recommendation
V. Q&A

3. CLA-Class Introduction
https://www.youtube.com/watch?v=fKGQvvDH8bE

4. Product Description
https://www.youtube.com/watch?v=WKGCNZImHRQ&feature=youtu.be

5. Super Bowl XLVIII (2014) Commercial
https://www.youtube.com/watch?v=Ix_80t0QItQ

6. 336111 Automobile Manufacturing
This U.S. industry comprises establishments primarily engaged in (1) manufacturing complete automobiles (i.e.,
body and chassis or unibody) or (2) manufacturing automobile chassis only.

7. 441110 New Car Dealers
This industry comprises establishments primarily engaged in retailing new automobiles

8. New Car Sales Dynamics
Floor Plan
Mercedes-Bens
Manufacture
Mercedes-Bens
Dealer
Invoice
Dealership’s Bank Mercedes-Bens
Manufacture
Mercedes-Bens
Dealer Window Sticker
Mercedes-Bens
Financial or Customer’s Choice
Financing
Lease or Buy
Mercedes-Bens
Dealer Parts & Service
36 month lease (shorter and predictable time for next purchase)
Purchase 5 yrs. or longer

9. Source: Daimler AG

14. In a world where 2 percent of the population controls the world’s wealth, a firm cannot expand
market share by catering exclusively to that 2 percent
How many people can afford a $40,000 vehicle?
$718.75 per month with 0 down (3%)
$628.90 per month with $5,000 down (3%)
Average Age: 40
Strategic Challenges
Source: Bankrate.com

15. New Market Segments
Source: Euromonitor
Demographics Psychographics
Behavioristics Geographics
Life stages

17. October 2014 Sales
Source: Auto World

21. Recommendations
Increase in target advertising and strategic positioning to eliminate barriers
(brand awareness vs. purchase intention; cost of ownership; overall brand image)
Create an emotional connection with young consumers
Increase in cause related marketing

22. Thank You!

23. Questions…