Reference no: EM133309251
MERCEDES-BENZ: DISTRIBUTING LUXURY
What began as a high-end luxury car in Germany has become a worldwide leader across a series of product lines. Sales of Mercedes-Benz automobiles take place in Europe, Russ the Middle East, the Far East, South America (especially Brazil), as well as in the United States and Canada. To achieve success in each of these areas requires adaptation and "flexible channels and formats designed to create effective customer contacts (Schmid 2012). To create continuous growth, the company increased its emphasis on finding strong investors in international markets, Identifying ideal locations for new dealerships, and hiring quality sales personnel to serve in every part of the distribution chain.
The Mercedes-Benz brand operates under the Daimler umbrella of automotive fines The Mercedes approach is unique however, due to the strong emphasis on the exclusivity of products. Dealerships must pass stringent tests designed to ensure that any customer and owner will feel differently from others. The sales experience combines with servicing approach in which pleasant and comfortable accommodations await any ind vidual who remains at the dealership while repairs or maintenance programs are provided Others are given high-quality loan cars to use (which also serves as a sales enticement for future purchases). Each sales force will be trained to respond to local conditions, such as those relating to gender (selling cars to women versus men), methods of negotiation (the manner in which sales contracts are finalized, and financing (charging interest versus other methods of granting credit and terms of repayment).
The Mercedes-Benz distribution channel is carefully managed and adapted to the requisites of each nation. Company executives adapt programs to account for customs, duties, regulations, modes of transportation, and any other factor that demands attention, such as the appearance of models in local advertising programs. Each of these elements combines with other aspects of Mercedes marketing program, with the objective of presenting a consistent message about the uniqueness of the entire purchasing process.
The continuing goal within the Mercedes organization is to provide a high-quality experience for every member of the channel while maintaining positive relationships with local authorities and citizens. Careful development of all documents associated with the transfer of ownership as well as the physical delivery of vehicles helps reduce potential conflicts with organizations in the distribution channel, and any disagreement is resolved as quietly and carefully as possible.
Just as the distribution channel necessitates adaptation for each geographic area and country, the line of products offered receives similar attention and development The Mercedes-Benz line includes cars with the titles of A to E, each with a specific set of features and advantages. The consistent theme remains an excellent interaction with high-end purchasers around the world
Question 1.
How might perceptions of quality in the retail experience be affected by local cultural customs and mores?
Question 2.
What challenges would Mercedes-Benz face in creating dealerships in countries with higher levels of poverty and lower levels of economic development?