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  • Subject area(s): Marketing
  • Price: Free download
  • Published on: 14th September 2019
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  • Number of pages: 2

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Mercedes Benz is a company that manufactures high end automobiles. It is a company that is world renowned by their luxury cars, high standards and performance. So their brand name represents class and luxury. As the company was first founded back in the early 1900s, It doesn't just produce luxury cars but also buses, coaches and lorries. The company's audience can vary from the middle class to the upper class people and also, younger drivers to car enthusiasts to people with chauffeurs. However, in this report will be focusing on their ‘AMG' vehicles. As their slogan goes, “the best or nothing”.

Market Segmentation

Mercedes Benz segment their market by demographics segmentation using age. Since the brand is a luxury brand, it is a hard task for the marketing team in the company to approach the younger generation and at the same time not lose the brand's prestige and it's already existing customers. Ever since 2010, Mercedes Benz started to being segmenting the market to appeal to the younger generations between ages mid 20s to early 40s; Millennials and Generation X. This change has increased the market size of the company by 75 millions potential buyers. The AMG model from Mercedes appeal more to the younger consumer because of its attractive price whereby it is affordable for the consumer to purchase and to get brand loyalty and as they get older whiles earning a larger income to afford a more expensive model from Mercedes Benz.

The company also apply psychographic segmentation to their marketing scheme mix. They apply this by analysing the professions as they target those with people with higher incomes and view them as a potential buyer. As higher income people are more likely to purchase luxury goods with new technology, more options and more safety implemented into the vehicles more often than those with lower income people. The company also plays a huge part in the Asian market as many asian countries are developing more and more and the demand of luxury vehicles like Mercedes, BMW and Audi is rising to appeal to their changes in their lifestyle in the country.

Target Market

The company's target market is aimed at the younger generations and also people whose profession generate a higher income. However, Mercedes marketing for the younger generation isn't about being the luxury brand anymore but also about how the cars can set their lifestyle statement. The AMG model appeal more to the young people because of its performance, affordable price and the styling of the car. This model open the company to a new market. Young people like entrepreneurs who is just starting up their company and would want a start up vehicle would be more inclined to buy from Mercedes as it represents a higher end tiers of cars. Over the years, The company has built a few other models of the AMG that is a more sporty style and with high efficiency over the years with new technologies fused into the vehicle to satisfy the needs and demands of their younger audience. The millennials and generation X look for newer and better things in their product. As Mercedes came up with a better way for the driver to interact with the car through their on screen user interface, they make it easier for the driver to manage all of its features and make it more comfortable. The way that the company keep their customer coming back for more is the way the company present the models, they create a way to show the vision of success in their models and make those who buy from the company feel like they have achieved success when driving one of the cars they offer.

Market Positioning

Mercedes Benz position their product to be the top of the line when it comes to luxury cars. They appeal to their customers by making how the product can be integrated into their customers' life. The Ad from Mercedes “Grow up”, was produced to aim at the younger audience to show them that where the car can fit into their life. The company also has showcase that the company's manufacturer to be very reliable and of safe product as they have a new breakthrough that helps make an accident less severe and less likely to die from the accident and it is only exclusive to Mercedes. The way Mercedes and other luxury branded car companies like the BMW and Audi are different is that the car design of the Mercedes is very elegant and built with precision to attract its audience. Inorder for the company to attract new customers to buy the car, they must link the product to the lifestyle of people. The AMG model's positioning is by promising a more performance based car mixed with class that no other luxury branded cars have. The engineering team of the AMG car build each of the engine with their own hand, making the model a much more exclusive deal. As many customers buying the car will opt for the AMG premium for a more powerful, stylistic and better handling of the model.


In conclusion, the company Mercedes Benz manufacture high end vehicle. They segment the market by demographics and that is made for a younger audience and also more for the higher income earners.  It's marketing strategy has made them a very successful automobile company that delivers both performance and class for the car model AMG. The product they make is different from the company's competitors for their car design, interior and their technology making their vehicle unique.

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