Smart marketing case

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STRATEGIC MARKETING CASE MCC SMART 1.1 - COMPANY DESCRIPTION MCC SMART (Micro Compact Car) was established in April 1994 by the Mercedes and Swatch association. The Swatch main idea was to create an urban, simple, environment-friendly and inexpensive car for the new century. The name SMART is a combination of Swatch, Mercedes and art. The partnership between these two firms involves theirrespective knowledge about their specialities. Mercedes for the engineering and Swatch for the plastic know-how. Today the locations of the factories are in Böblingen (Germany) and Hambach (France). These plants employ a total of 1,400 people and more than 5,000 suppliers. When the system partners are included, this means 2,500 people are involved in building, designing and marketing the SMART. MSS SMARTis a wholly-owned subsidiary of DaimlerChrysler (the group which owned Mercedes) and is the shareholder with 100% of the total shares. 1.2 - HISTORY 1994 Nicolas Hayek (from Swatch) is the creator of the SMART concept. Mercedes and Swatch are developing the concept (507 millions Euros are spent for R&D 1997Launch of the SMART, objectives for the first year 200,000 cars to be sold, MCC SMART iscontrolled by 91% by Mercedes company 1997End of the year - Less than 130,000 cars have been sold across Europe 1998 Jürgen Schrempp, Mercedes CIO take the total control of MCC SMART, 110 SMART-CENTER in Europe 1999 End of the year - 80,000 cars have been sold, and losses represent 150 millions Euros since the launch 1999 April - Rescue plan = the production process is totally rebuilt, new marketingmix, price decrease by 533 Euros for each model, new distribution network, new communication style 2000Launch of the turbo diesel (CDI) model and the cabriolet 2000End of the year - Turnover is reaching 828 millions Euros 2004 First benefits

1.3 - COMPANY BUSINESS AND MISSIONS 1.3.1 - Mission statement · Provide a cheap and useful car for metropolitan people · Respond to the market's needs(customization, modularity) 1.3.2 - Objectives · For Mercedes SMART represents an opportunity to extend the product portfolio and also benefits. · For Swatch the car allows them to extend their know-how to another field and to find a new mean to promote the brand. 1.3.3 - Goals · The car is expected to be sold in March 1997 at a price between 8,746 Euros and 10,600 Euros · A margin of 16% · Providevariables offers (one offer is one package including financing, licensing and insurance)

· Expectations of 1,000 units sold per year in each concession 1.4 - SEGMENTING ·Geographic: the car is directed for people who are living in big cities and urban areas. ·Economic and social: people with high level of income, which implied a high social level too. ·Demographic: women and men between 18 and40 years old 1.5 - TARGETING Target group: second car for singles / small families in larger cities. Two target markets exist: ·People between 18 and 40 years of age, singles who are living in big cities or couples without children and with two incomes, known in marketing slang as "Dinks". ·Retired people with a fresh attitude.

1.6 - POSITIONING The company wants to position the car as a funbut useful means of transportation in crowded cities. It is a new concept that with an innovative and young positioning. The characteristics that differentiate this car from the rest are because it is small, easy to park, offers to you the possibility to use in big cities as motorbikes. 1.7 - BRAND PROBLEM At the beginning the idea of the product was an inexpensive car and at the end the price isvery expensive for the product. They made some mistakes in the marketing Mix like promotion, distribution (we will explain in the next point). PART 2 - Competitive nature of the brand

The Swatch mobile, more recognised as Smart is a unique car that does not have a specific competitor due to its special characteristics. We can divide the competitors in two groups. · In the first group we can...
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