Ansoff Matrix of Mercedes-Benz

Mercedes-Benz is a German luxury automobile manufacturing multinational company. Karl Benz and Gottlieb Daimler founded the luxury automobile brand in 1926. Today, we’ll discuss the Ansoff matrix of Mercedes-Benz; four growth matrix strategy analysis quadrants; market penetration, market development, product development, and diversification of the Ansoff matrix business example.

Elements of Marketing Penetration Strategic Campaigns of Mercedes-Benz

• Formula 1 documentary on Netflix
• Emotionally connecting with target customers way beyond than track
• Highly active on social and digital media platforms
• Customer-focused strategy by highlighting luxury, innovation, and technology
• Taking steps towards environmental sustainability by launching hybrid and electric vehicles
• Providing memorable and exciting driving experience

Top Selling Markets and Geographical Regions of Mercedes-Benz

• Europe – 659400
• Asia – 963,800
• North America – 339500
• USA – 29800
• Worldwide – 81100

Latest and Best Collection Offers of Mercedes-Benz

• AMG Vans
• Mercedes-Benz two seater cars
• Passenger car MayBach
• Smart Automobiles
• G-Class
• Electric Models
• Financial services
• Digital payment service
• Brokerage insurance

The Ansoff matrix of Mercedes-Benz would analyze the four growth matrix strategy analysis quadrants; market penetration, product development, market development, and diversification strategies. Here’s the Mercedes-Benz Ansoff matrix company example as follows;

Ansoff Matrix of Mercedes-Benz 

Let’s discuss the four growth matrix strategy analysis quadrants of the Ansoff matrix of Mercedes-Benz as an Ansoff matrix company example; they’re as follows;

Market Penetration Strategy of Mercedes-Benz

The market penetration quadrant in the Mercedes-Benz Ansoff matrix business example as growth matrix strategy analysis has the lowest risk level in the growth strategy. It is because here the automobile company sells its current automotive and luxury vehicles in the existing customer market. However, the automobile market is growing, and the market penetration growth strategy is possible.

I-Sponsorships

Mercedes-Benz sponsors various sporting events like the German nation football team, Bundesliga club VFB Stuttgart, and others. The sponsorship of mega sporting events allows the company to run its logo and company’s message throughout the tournament and develop emotional connections with teams. As a result, the automotive brand penetrates the market by selling its automobiles in the market.

II-Video Alliances

Mercedes-Benz recently partnered up with video gaming companies like Nintendo and Mario Kart 8. The partnership and alliance allowed the company to include its vehicles in the video games, and automobile-branded advertisements started running in different advertisements. Such types of business alliances allow the company to increase the sale of its existing products in the market.

III-Marketing & Promotion

Along with sponsorships of mega sporting events, Mercedes-Benz runs various types of marketing and promotions campaigns in multiple media channels for the promotion of its automobiles. They help the company to penetrate the market and increase its sales.

Market Development Strategy of Mercedes-Benz

The market development quadrant in the Mercedes-Benz Ansoff matrix business example as growth matrix strategy analysis has a bit higher risk level than the market penetration strategy. It is because here you expand your automobile market and offer your current luxury vehicle portfolio in the new market. However, you don’t know the culture and response of the new market; that’s what makes it riskier.

I-Outsourcing & Production Facilities

Along with in-house production facilities, Mercedes-Benz has opened up its production and manufacturing facilities in various countries across the globe. Outsourcing and production in other regions and countries help the company expand its business globally and sell its automobiles in new markets.

II-Alliances

Mercedes-Benz has partnered up with various automobile brands in the joint venture Bejing Benz, Baharat Benz, Thailand Benz, and others. Such types of strategic alliances and joint ventures help the company to increase its business in new regions and markets around the world.

Product Development Strategy of Mercedes-Benz

The product development quadrant in the Mercedes-Benz Ansoff matrix business example as growth matrix strategy analysis has a higher risk than the market penetration strategy. It is because here you launch new automotive models for the existing customer market. You would have to run new marketing and promotional campaigns for the new product and it makes it riskier.

I-R&D

Mercedes-Benz allocates a significant amount of capital resources to research and development for the production of efficient tech automobiles. According to an estimate, Mercedes-Benz invested approximately 8.5 billion USD in 2022. It leads the luxury automobile brand to develop new market-competitive automobiles for the customers.

II-Electric Automotive

Speaking of product development and R&D, Mercedes-Benz invested approximately 11 billion USD in the development of electric vehicles and batteries. The automobile brand has shown a strong commitment to making its portfolio fully hybrid and electric in the next few years. However, some of the recently launched electric automotive models are as follows;

• EQS – For All
• EQS SUV – For Pioneers
• EQE – For All Senses
• EQA – Electric Athlete

Diversification Strategy of Mercedes-Benz

The diversification quadrant in the Mercedes-Benz Ansoff matrix business example as growth matrix strategy analysis has the highest risk rate of growth strategy than all three previous growth strategies. It is because here you launch a new automobile in a new customer market. You won’t know how your new market will react to the new items.

I-Horizontal Diversification

Mercedes-Benz has successfully launched new automobile models in the new markets over the years. It is a highly risky strategy, but the company has successfully done so in the past with its strong brand image and tech capabilities. The company plans to do the same in the upcoming years.

Conclusion: Mercedes-Benz Ansoff Matrix Company Example |Growth Matrix Strategy Analysis 

After an in-depth study of the Ansoff matrix of Mercedes-Benz; we have realized that Mercedes-Benz is the world’s leading luxury automobile brand. If you are learning about the Mercedes-Benz Ansoff matrix company example; then you should keep in mind the abovementioned four growth matrix strategy analysis quadrants; market penetration, product development, market development, and diversification.