Mercedes-BenzThe Luxury of Premium Brand DNA

Nick KelvinBJK&E Media

“How Mercedes-Benz's brand DNA has enabled it to evolve and redefine itself to meet today's and future consumer demands of a luxury marque"

Key DNA Attributes

Assured Quality

Exclusivity

Authenticity

Pedigree

History of Mercedes-Benz

History of Mercedes-Benz

History of Mercedes-Benz

History of Mercedes-Benz

Example Mercedes-Benz World Firsts

Crumple Zone

Collapsible SafetySteering Column

SafetyHeadrests

ABS

Standard Airbag

SeatbeltTensioner

Front PassengerAirbag

Seats withintegrated SeatbeltsSide Airbag

ESP

Brake Assist

Mercedes-Benz: A Top Ten Global Brand

Source: Business Week / Interbrand: Top 100 Brands 2006Source: Business Week / Interbrand : Top 100 Brands 2006 Source: Business Week / Interbrand : Top 100 Brands 2006

Logo Says It All

The ‘three-pointed star’ is better recognised around the world than the Christian cross

– International Olympic Committee: Worldwide Symbol Recognition Survey, 1995– Enduring Passion/Leslie Butterfield

More than a car…

Andy Warhol Cars

…or a conventional brand…

Mercedes-Benz is the most mentioned brand in song lyrics

Source: agendainc.com

…it’s a cultural and social icon

Encapsulated in MB-World

Total Mercedes-Benz Brand Experience at Brooklands

Key DNA Attributes for Reinvention

Assured Quality

Exclusivity

Authenticity

Pedigree

High-End Luxury Maker or Go for Growth?

“The best or nothing”

“The best for the customer”

“We had to take the brand out of its niche, and allow for economies of scale. We couldn’t restrict ourselves to some sort of Tiffany brand”

Hilmar KopperSupervisory Board Daimler-Chrysler

“Exclusivity is not just about price, its about concept. Achieving a premium position in each sector is possible”

Prof. Jürgen HubbertCEO Mercedes Car Group(to 2004)

From Three New Cars in Ten Years…

Year: 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988….

…to New Broader and Deeper Range…

Year: 93 94 95 96 97 98 99 00 01 02 03 04 05 06

…Sharing the Same DNA…

…and Opening up to More People…

Adulthood Maturing YearsMiddle Age

Exploring, questioning the value of things

Beginning careers, working hard, seeking life experiences and

answers

Adding value to life, no compromises

Taking control, doing things always wanted to

do/dreamed of doing

Life and career are established and steady

Working hard, achieving balance, seeking stability

and respect

Source: Workshop

…While Protecting the Price Premium

Mercedes-Benz needed to turn from being seen as a reward after a successful career…

…to being an on-going reward through a successful career

Rewarding Companionship

Adulthood Maturing YearsMiddle Age

…is stopping to enjoy the trappings

of success and gaining recognition for achievements

…represents taking control and rewarding yourself with special

experiences

…represents a marker, a rite of

passage, part of life’s journeyRew

ard

Mod

els

Source: Workshop

Exploring, questioning the value of things

Beginning careers, working hard, seeking life experiences and

answers

Adding value to life, no compromises

Taking control, doing things always wanted to

do/dreamed of doing

Life and career are established and steady

Working hard, achieving balance, seeking stability

and respect

There is an element of status that is the outer-directed expression of wealth

Flash, Showing off The idle rich Decadence Indulgence Opulence / excess Competition Power, position

Source: Workshop

New Status Values

Substance Vacuous

Inner Directed

Outer Directed

Personal Reward

Self deceitDelusions of grandeur

FlashBling

Status Symbol

Source: Workshop

Today status symbols are more about the experiences they deliver

Private self fulfilment A reward for effort Fuelling knowledge and

ideas Taking control A journey Escape Inner peace and

wellbeing

Source: Workshop

Mercedes-Benz Transcending Outer Directed Values

Rewarding individual experience

Obviate the negatives of driving

Make life better

Balance, harmony, control

At one

Nothing to prove

Effortless

Get there better than when you left

Arrived

Planned, no surprises

Public show of indulgence

Accentuate the positives

Make life more exciting

Aggression

Out do

Everything to prove

Trying your hardest

Push to the limit to get the most out

Still getting there

The unexpected

Marque X

Source: Workshop

The Strength of Mercedes-Benz DNA

ESP installed to all A-Class Virtues of being a Mercedes Paradoxically, may have increased brand warmth

A-Class

Has Mercedes-Benz's brand DNA enabled it to evolve and redefine itself to meet today's and future consumer demands of a luxury marque?

The Highest Mainstream Marque Trade-ups

A-Class accounts for 26% trade-ups

> 30% more trade-up sales than nearest rival

Source: Market Intelligence Services

Mercedes-Benz Sales

Mercedes-Benz +11.2%

Competitive Set - 2.6%

Total Market - 4.3%

YTD Sales: August 06

Source: Market Intelligence Services

Mercedes-Benz: Redefining Luxury

Knowledge

Time andExperience

Exclusivity

In/OutwardLife Phases

New/OldMoney

Knowledge

Time andExperience

Exclusivity

In/OutwardLife Phases

New/OldMoney

Thank You