Benz Case

Benz Case

  • Submitted By: vincev27
  • Date Submitted: 11/12/2008 8:44 PM
  • Category: Business
  • Words: 729
  • Page: 3
  • Views: 1

Problem Statement
For the past three decades Mercedes and BMW have been competing in the Luxury automobile industry against each other. But in the last fifteen years BMW has gain the most market share and left Mercedes to question its market position with the real target market it the automobile industry. To counteract BMW accomplishments, Mercedes has been trying to change the overall image of the company to a younger audience by releasing several new products. These products are more performance oriented but still keeping the luxury that comes with the purchase of a Mercedes. This is also vise versa, where BMW is trying to be more luxurious but still have their performance edge that the company holds with the customers. In the remainder of this report we will discuss some of the price averages and what that means to the rival companies.

Discussion Questions

Battle of the Prices

1.) Nearly 64% of the Mercedes Dealer’s prices are priced out of the BMW 330ci market. Meanwhile, nearly all of the BMW 330ci fit into the Mercedes CLK 230’s price range and only one percent of BMW dealers have the 330ci priced with the CLK 230 mean. Less than one percent of the Mercedes have priced the CLK 230 into BMW’s price range for the 330ci (*See Appendix 1). This tell you that in terms of the pricing between the 330ci and CLK 230, BMW has a firm hold on the cheaper automobile, therefore is in the price range for more consumers.
Fuel Efficiency
2.) Forty percent of the CLK drivers fall into the range of 26-30 miles per gallon. This is because the range only last from 24-34 mpg’s and they are uniformly distributed. The Same is for the 330ci, it too has forty percent of its cars driving in the 24-30 mpg range. They both have a large portion in this range but BMW has just a little bit higher fuel efficiency because their range goes up to 35 where Mercedes max is 34. Mercedes could appeal to the target market by comparing the statistics of the two and showing that both...

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