Mercedes Benz Corporation

Mercedes Benz Corporation

Mercedes Benz Corporation sold over 50 percent of its product in overseas countries. Mercedes Benz Corporation realized that there is an opportunity and the company continued focus outside of the U.S., particularly the developing countries. Because of economic conditions in the developing countries customers are not able to pay hard currency for the product. Mercedes Benz Corporation projected that sales will increase in these areas in the future and came up with any possible way of gaining customers in the developing areas.

The plaintiff, Mr. McCardell purchased a used Mercedes Benz from an individual who used his corporation as a front. When the plaintiff was negotiating the purchase of the car, he thought that the defendant, Aldo Tisi owned the vehicle. Aldo Tisi is the director and sole shareholder of the corporate defendant, Tisi Holdings Co. Inc. The plaintiff drove the car for about 2 months and then he found out that the car was not in mint condition and that the mileage was incorrect. He stopped driving the car when he found out and sued for rescission. He also found out that the defendant was not a licensed automotive dealer and that this was not the only car the defendant had sold.

In 1988 Mercedes Benz Corporation Inc. made record sales of over $10 billion dollars and realizes a profit of $616 million. But although the company sales continue to increase steadily over the next two years (1989 & 1990), the company's profit, however, took a different turn. Profit for 1989 and 1990 fell to $497 million and $210 million respectively. It is not rare that a company sale has increased and its profit continued to drop. Needless to say, however, if things get worst in the industry and sales decline, then the company's net profit could turn into a net loss. In this case Mercedes Benz Corporation sale which was increasing steadily over a three year period from 1988 to 1990 went into a fallen slurp from over $11 billion in 1990 to under $10 billion in 199. As a result, the company saw a net loss of $404 million in 1991.

Analysis of marketing mix variables

Mercedes Benz Corporation's strategy is consistent with sound marketing principles. Mercedes Benz Corporation's marketing mix categories explained the selected strategy consist product, distribution/place, price, and promotion.

Product

Mercedes Benz Corporation is a strong producer of very large equipment. The company offers a tangible and a non-tangible product to its customers. The company's physical products are engines for a wide variety of electrical power systems, such as generation system, and industrial machinery and earth moving, construction, material handling, and agriculture machinery. Also, Mercedes Benz Corporation portfolio includes a non-tangible product by providing financial assistance to its customers. Customers are willing to pay a premium price for Mercedes Benz Corporation's product because they build the biggest and best equipment in the world.

The increasing role of information in Mercedes-Benz USA was discussed next. Using computer information systems, they are able to monitor information in all aspects ...