Midterm report course sale managerment code mgt1107e company mercedes benz vietnam

- Notice a new product, transportation to difference - Income: above 50m VND per month function location - Education: - Receive or notice that it | - Meeting partners — is time for havin

GROUP: 6 CLASS: A03E

MIDTERM REPORT COURSE: SALE MANAGERMENT

II

VI

Political Affecting Mercedes-Benz 31 Economic Factors Affecting Mercedes-Benz 32 Socio-Cultural Factors Affecting Mercedes-Benz 33 Technological Factors Affecting Mercedes-Benz 34 Environmental Factors Affecting Mercedes-Benz 36

I INTRODUCTION

One of the most famous car, bus and truck manufacturers in the world The

company is considered a car manufacturer] one of the oldest companies still in

existence today

Type: Division of Daimler AG Industry: Automotive industry

Precursor:

- 1883 by Karl Benz

- 1890 by Gottlieb Daimler and Wilhelm Maybach

Established: June 28, 1926; 95 years ago

Headquarters: Stuttgart, Baden-W &Mrttemberg, Germany Key staff: Ola

K{#Mllenius, incumbent CEO since 2019 Products: Luxury Cars - Vans - Bus - Enginesmoter wagons Parent company: Daimler AG

Il STP

SEGMENTATION

- Marriage status: Family-oriented, sought: Large, such

Extended, from 4 to | - Lifestyles: Running family car Ho Chi

- Occupation: often going to business | - User status: City

executives, users

Education

- Generation: Early

Millennials and

Late Generation X

Adventurers | - Age: 26-35 - Social class: Upper - Occasions: - Areas:

Single, ina venturous, live in the Spacious — for as Hanoi

Occupation: White | play sports, love - User status: Minh colors traveling, going on trips | Potential and ex | City

- Mercedes is currently applying the Concentrated Marketing Strategy on two segments which

both comfort and safety for their family To be specific, in Figure (8) (Statista 2022) shows that more than 70% of respondents answered that the quality that they are looking for in a car is its convenience while 55% mentioned safety Both of those are the qualities that Mercedes emphasized when introducing this model to the market For this segment, their slogans are ‘Safe driving’ and ‘A place for everything and everything in its place’ (Mercedes Benz n.d., Family)

- The second group that Mercedes focus on is the Professional segment This segment consists

of people typically 35 to 55 years old who have extremely high income and travel frequency For this segment, Mercedes has advertised its products as ‘Elegance, style, comfort, and spaciousness define every VClass’ (Mercedes n.d., Vow — Fascination V-Class) This V-class model also has a

b) Image differentiation

- Firstly, Mercedes’s motto "The best or nothing” clearly distinguishes them from competitors in branding Since the first petrol-powered car was introduced in 1886 by Karl Benz, many other luxurious, advanced models have been released (Bible 2018) Today, it continues to launch more innovative and technologically advanced cars to emphasize not only individuality and approachability but also the enthusiasm toward new possibilities of sustainable mobility (Automotiveworld 2021)

- Secondly, Mercedes had successfully made its logo one of the most recognizable symbols

in the world This logo is simple yet modern that radiates power According to DesignRush the three-point star logo represents the domination of Mercedes in the land, air, and water, it depicts their ambition to dominate all forms of transportation in the world (Desi gnRush n.d.) Moreover, one of Mercedes’s competitors is Toyota with their logo emphasizing the trust between the brand and their consumers (Love 2011) Indicating that Toyota’s preference is to make cheap, fuel-

efficient cars that suit their customer’s demand whereas Mercedes attracts those who are

interested in cars that have a high level of safety and technological innovations (UK essays

2017).

- Additionally, for the Vietnamese generally, buying a car is a decision that is not taken lightly, many factors are taken into account seriously when making one According to the high taxes from the government, there are lots of impacts on the consumers’ decisions One of which

is the price, people want to make the most out of their money Mercedes-Benz is well aware of this fact and takes it seriously when building their vehicles (Mercedes-Benz Features n.d.)

2 STP (B2B)

2.1 Organizational Buying Behavior (Segmentation B2B)

a) Medium — Large Business Persona

Decider Description (manager transportation)

Demographic Pain Points (Triggers to search | Main role and responsibility

- Notice a new product, transportation to difference

- Income: above

50m VND per month function location

- Education: - Receive or notice that it | - Meeting partners —

is time for having vehicle that customers graduate high school or

image

Demographic

- Often order above

5 car in 1 time, need to

Pain Points (Triggers

to search information)

- Notice it have

a demand for transportation customers (buyers, users)

- A demand of picking up customers from airport to resort

Main role and responsibility

- Manage a team of salesperson

- Manage a resort

Decision Criteria

Need a transportation solution that luxury and have high value Comfortable Have back seat functional Convenience Fuel saving Want free oil change Focus on TCO, because this type of customer is often used for that project or just used in 1 year ora single product life line They will sell it after they are done

c) Hospital — School Persona

Decider Description (manager transportation)

Main role and responsibility

- Manage the operation

Free oil change Can support as fast as possible

d) Tourism — Car Rental Business Persona

Decider Description (manager transportation)

Demographic

Main role and responsibility

- Cost when buying product,

cost during work, cost from

e) Manufacture Business - Company

Decider Description (worker transportation)

Demographic

- Cost when buying product,

cost during work, cost from

replacement, maintenance

- Need high quality product

Pain Points (Triggers to search information)

- Notice the service have reach their fully potential and need to expand

Main role and responsibility

- Can support as fast as possible

2.2 Target Market Segments

a) Medium — Large Business (A) Segmentation (commercial)

CUSTOMER BUSINESS PRIORIES Comfortable

- Functional for back seat persons

- Convenience

- Can support as fast as possible

- Fuel saving

- Used to create relationship with

TO like resort, high value real estate to show to customer that

PROFITABILITY | organization are very respect them, to satisfy the customer and help

to complete, sign a contract or will become loyalty with that resort (in the case of M#°Ong Thanh Resort, they buy Mercedes and use it for very VIP customer, to transport customer from airport to resort, or any destination that customer want)

CUSTOMER BUSINESS - Seat reinstall capability

PRIORIES - H ave space

- Fuel saving

- Can support as fast as possible

- High quality product

CONTRIBUTION TO - Used to transport patient and having fee (or not

PROFITABILITY depend on the policies of that hospital)

- Used to transport student to school and take a fee from that

d) Tourism — Car Rental Business (D) Segmentation (commercial) APPLICATION - Use for transportation tourism and use for car rental

CUSTOMER - Can easy to reinvest by turning the profits from each CAPABILITIES car, minivan to buy again that increase their capabilities

BUSINESS PRIORIES Fuel saving

- Can support as fast as possible

- Comfortable

- Convenience

CONTRIBUTION TO - Use to tourism and earn back money from activities

e) Manufacture Business - Company (E) Segmentation

CUSTOMER BUSINESS — | - Durable

CONTRIBUTION TO - Used to transport employer, workers every day to PROFITABILITY save time for each person, increase the efficiency of each

In recent years, MBV has begun to pay more attention to other customer segments such as Hospital-School and Tourism-Car Rental MBV is increasingly appealing to customers who value durability as well as comfort and the fastest possible support In addition, according to Maslow's hierarchy of needs, due to the particular upbringing of this segment, the need for love and belonging has generally been met, which initiates the level of need higher needs - the need for self- esteem, a sense of success and admiration This need is in line with MB's distinctive design and historical values, as the luxurious looks of the C-Class can accompany their professional and ambitious image in a business environment In addition, the customer's self- esteem needs are also well met through the product's image differentiation with more detailed information in the next section

Medium — Resort — Hospital — Tourism — Manufacture

Large Luxury Real | School (C) Car Rental Business —

Business (A) Estate Business (D) | Company (E)

Meet demand Yes Yes Yes Yes Yes

Based on the persona and survey we could see that just for hospital — school customers wanting

to reinstall the seat for some specific purpose like turning a minivan into an ambulance Besides that every business has the same demand that MBV needs to provide offering for those

LUXURY

Ị

PORSCHE LEXUS

male customers

- Another strong competitor of the C-Class is the Audi A4 Being established in Vietnam

in 2008, Audi chose Automotive Asia Limited as its official CBU importer and has 3 official dealers in Hanoi, HCMC and Danang Also putting stress on the concept of progress, Audi is well-known for its perfect combination between technology and aesthetics represented by its sporty and youthful look, as its target audience is young and fashionable male customers

- Meanwhile, the Mercedes C-Class focuses on its professional and sophisticated interior and exterior designs, in accordance with its regular technology advancements, making it more suitable for businessmen and businesswomen who seek for a premium status presentation As the price gap between the two options is not highly distant, the success of the two models mainly depends on customer preferences regarding their designs Due to the status orientation of local consumers which will be further analyzed, the C- Class is positioning its brand more effectively

in the Vietnamese luxury car market, resulting in its high presence and sales performance in the last few years Another worth mentioning strength of the C-Class is its unisex design, which also appeals more to female customers in comparison with the BMW 3-series and the Audi A4

BMW

- Electric vehicles will account for - The BMW Group is the world's

- Want customers to feel the production facilities located in 24 locations in difference between their electric motor and 13 countries

7 Achieve sales of 7 million plug-in proven its ability to operate like never before hybrid and pure-electric vehicles from now

to 2030

- BMW having a powerful brand

image BMW Group believes in maintain

core values as technology, innovation,

performance, quality, reliability,

exclusivity and customer satisfaction

- BMW Group targets major markets

of the world, especially North America and

Europe, due to the industrialization and

better per capita income

- The major markets of BMW Group

include Germany, USA, UK, Italy, China,

Spain, France and other developing

countries like Brazil and South Africa

- BMW has grown into the world's only

multi- brand car manufacturer with an

exclusive portfolio that includes premium brands ranging from ultra- compact cars to the luxury segment, all powered by BMW design

- BMW was developed to meet the different needs of customers, offering a wide range of models for the high-end, mid-market and low- end market segments

- The company continuously makes decisions and improves on new technologies and sets new standards in production

- Audi plans to sell about

800,000 electric and hybrid

vehicles by 2025

The Audi car is considered quite durable in the process of use, despite being used for a long time, the well-maintained car does not look much different from a new car

- Will launch more than 20

electric vehicle models by 2025

using parent company

Volkswagen's new MEB modular

platform along with a vehicle

platform co-developed with

Porsche

without reducing the company's 8-

10% operating profit

- Audi is discontinuing

production of several models,

including two-door versions of the

A1 and À3 models, and cutting

management and parts costs Audi

has set a goal of saving at least 10

billion euros by 2022

- Unify the global marketing

strategy of 1 term, and branch out

each region with the aim to find out

the uniqueness and culture of each

region to update more versions to

suit each region

- Audi's design language will

also be improved "simpler,

cleaner", but without losing the

inherent elegance

- Audi's project called

Artemis will be developed in the

The car also did not have many significant damage, only after going a certain number of kilometers, it had to be replaced like other cars The price level of Audi cars is quite high, considered

in the category of luxury cars when the cheapest one

is more than 1.3 billion dong However, compared to other cars in the same segment such as BMW or Mercedes, the price of the Audi is somewhat lower

future and take the number 1

position of the electric car line held

the company will only launch new

models with electric drive systems

on the global market

- The production of internal

combustion engines will be

gradually phased out until 2033

- Audi will offer electric

vehicle customers an unparalleled

onboard experience with its own

ecosystem Clear decisions as the

result of an intensive strategy

process: Audi’s “Vorsprung 2030”

strategy focuses on profitable

growth and differentiation In

addition, the company has resolved

to become the industry leader in

sustainability, social responsibility,

and technology

- Dynamic all-wheel steering

- Suspension system using artificial intelligence

AI Active suspension Matrix LED headlights with Laser light Automatic

- Parking Pilot and Garage Pilot

- Central controller ZFAS

- Safety technology Audi Pre sense 360 360 degree 3D camera

- Self-driving car feature in traffic jams Audi

° AI Traffic Jam Pilot

° Audi Wireless Charging

- Audi is a car that is evaluated with a modern and luxurious interior The two front seats have backrest pumps, some cars are also equipped with heating, ventilation, massage, memory, 30-color decorative lights, and air conditioning with an automatic activated carbon filter Audi cars entertain users on the road with the new generation MMI Radio Plus system, high-end Bang & Olufsen 3D

° Product development sound system including 19 speakers with a capacity

of 755W with two versions of Design and Sport

- The highlight in the exterior of the Audi car is that customers have up to 14 paint colors to choose from The paint layer is covered the whole car very thoroughly by four times of paint, helping to protect the car from environmental impacts and corrosion

Indirect Competitors

- For the upper-middle class in Vietnam, besides luxury cars, some customers may also choose large-displacement motorcycles as one of their most valuable assets In particular, the market for large motorbikes is developing at a higher rate than one for smaller-size motorbikes, with some prestigious brands such as Ducati, Harley- Davidson, Kawasaki, KTM, etc Due to a large number of young people living in cities in Vietnam, in combination with our country’s developing infrastructure, this type of product may appear as a perfect substitute especially for those trying to avoid traffic congestion

- Besides the fast-growing luxury car market, some customers in Vietnam start to pay more attention to mid-size cars which are slightly more affordable yet offering almost the same level

of technology and design

- These products, namely Toyota Camry, Honda Accord, Mazda 6, Kia Optima, etc offer car buyers with an elegant design, modern equipment and high-tech functions yet maintaining its affordable price However, this car segment’s weakness is exposed when it comes to the level of aesthetic and technological sophistication, as the C-Class line and other luxury cars’ setup is unique and irreplicable Therefore, the targeted segment for mid-size cars is people with a simplistic mindset who do not demand a high level of sophistication, who may choose it over the C-Class as they deem it to possess many luxurious yet unnecessary details

HYUNDAI

- Electric Vehicle (EV)

- Urban Air Mobility (UAM)

- Autonomous Driving Technology

- Fuel Cell System

- With affordable prices, customers can experience modern technologies at a reasonable price

Low car maintenance costs

- As one of the reliable family car brands in Vietnam

- The quality of Hyundai cars is not inferior to

- Japanese cars

- Focusing on one distributor makes

Hyundai easier and more powerful in

marketing campaigns

- Uniform on sales and after-sales

and large vehicles in Vietnam

- Hyundai cars have a design that is not

as luxurious as German cars, but still quite youthful and eye-catching

only reliable, fully tested technologies to serve the company's processes and people

- The design of recent car models has gradually become

2025

of auto parts is 40%, and will reach 60% by

VINFAST

- Vinfast wishes to promote the - Their strength is a brand from development of the domestic supporting Vietnam, which can be favored by many industry In the short term, the localization rate | people because it is a Vietnamese brand

They also promote brand development in the direction of improving the national spirit and making the key image