Marketing Strategy and Corporate Strategy in the automobile industry A marketing strategy may be described as a process that allows a company to direct its meager resources towards the biggest opportunities with an aim of increasing profits, sales and also attain sustainable competitive edge. Corporate strategy on the other hand targets the overall scope and purpose of a company in meeting the expectations of the stakeholders. This forms a very vital level since it is highly influenced by the various stakeholders and investors in the business and it is also concerned with making of strategic decisions in the business.
The corporate strategy is plainly and explicitly referred as the mission statement. The marketing strategy for Mercedes Benz is focused on stability, ambiance, comfort, and stability in their vehicle models. This strategy has mainly been sparked by the stiff competition that this automobile industry faces from other players in the car global market.
Due to the economic recession of 2008, Mercedes Benz broadened its market focus and widened its ratings through promotions and advertisements. As a marketing strategy, the company has also excelled in the provision of informative and amazing customer care, by highlighting the customer’s value to the progress of the company. Further, the company has also added more approach to their technological and communications advancement.
This new marketing strategy is solely focused on the lifestyle needs and fun of the user, making them to reconsider increasing their share capital in a very competitive vehicle market. The company has also added more supply units where the requests of the customer are met. Mercedes Benz has embarked in getting a corporate makeover by increasing its retailer targets. For the opportunity to drive sales, the company must fully engage their retailers. The company also seeks to establish a relationship with the customer that will help in nurturing healthy relations that will lead to increased volume of sales.
The company is also seeking to shorten its replacement cycles as its corporate strategy. The company has also vowed to continue avoiding the credit hire sector and the heavily subsidized daily rental so as to protect its residual values while maintaining its corporate policy. In the year 2007, Volkswagen launched a new strategic direction in handling its business. This strategy was rooted in bringing its customers closer to the company and also improves on its competitiveness.
This strategy would also see the ultimate goal of tripling the company’s sales by the year 2018. This corporate strategy was built on five pillars: dealer network, product, brand positioning, local production, and organization. By implementing these pillars, the company will become more responsive to the requirements and wants of the customer. In order to maintain the company’s achievement culture of trust, teamwork, and excitement, the company solely focuses on the following principles; diversity, environment, vehicle safety and corporate giving. F
rom the above discussion it clear that companies will pursue different marketing strategies for various products from the same industry. This may be referenced to the Volkswagen case. This company is involved in the manufacture of other car models such as Audi, Bentley, and Lamborghini; all the brands have specific marketing strategies based on the target group of customers.
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Mitchener, B. (1998). Volkswagen Drives Into the High End of the Car Market. The Wall Street Journal, 12(4), 8-9.