A BMW and Mercedes are both epitomes of luxury vehicles and two best sellers among top German brands.
The engineering and finesse of both cars are supreme in many aspects, and they are rivals for more than a
century. For a long time, no competitor could match a BMW, and then Mercedes arrived to set a new
standard. If you were to test drive a BMW and then a Mercedes, you would surely find differences. Both
cars ride differently, and the handling component is distinctive. BMW owners vouch for the fact that their
vehicles are better in fuel economy with lesser emissions. Mercedes has a larger line up of cars compared to
BMW.
BMW and Mercedes have already formed a luxury car image for the customer; which, has been well
maintained by them. Such image continues to affect brand perception. In comparison, GM and Renault have
a relatively lower luxury car image with medium brand perception in the marketplace.
Therefore, for BMW keeping brand image and lifetime customer relationships is an important factor in
marketing strategies, while GM and Renault need to create a new brand image to attract the customer.
Questions:
1. Identify and explain the importance of the marketing mix involved in this case study.
(4 marks- Answer in 100-125 words)
2. Which factor of the marketing mix was the main reason for BMW and Mercedes success? Justify
your answer. (3 marks- Answer in 75-100 words)
3. Can GM and Renault continue the same marketing mix for a long time or should they change?
Discuss. (3 marks- Answer in 75-100 words)