What started as one of the biggest and most expensive campaigns in the German automobile industry, almost ended in a disaster for the company. The result was the biggest crisis, a German automobile company had ever faced.
Mercedes-Benz is a high-class automobile company. Its products stand for luxury, reliability and dependability. But high-class cars are expensive and only affordable for the richer part of society. To keep pace with the fast developing automobile industry all over the world, Mercedes-Benz decided to invent car that reunites all three values, the company embraces. This car – the Mercedes-Benz A-Class – should have another important feature: It is affordable for the middle class.
With this car, Mercedes was approaching a new market segment and therefore new target audiences. A campaign, that fits the new car in the overall Mercedes image, was crucial. In May 1996 Mercedes Benz started its huge advertising campaign – almost one and a half years prior to the official product launch on October 18th 1997. More than 100 million Euro will this launching campaign cost the company. Despite that the campaign only ran in the European market, the Mercedes-Benz brand and this specific campaign caught international attention. Newspapers from all over the world accompanied the A-Class until its official launch. These newspapers were also there, when the crisis occurred, that almost harmed the company on a long-term basis.
Right after the launch, the car, that was supposed to be innovative, reliable and safe, failed in the so called “moose-test”. After almost two years of positive media coverage, a flood of criticism followed. Due to the high level of awareness for the car, the public was now also aware of the safety issues the Mercedes A-Class had. What followed was another campaign. The goals were to safe the image of the company, to deal with the crisis and to re-launch the A-Class half a year later.
The campaign analysis explains why Mercedes had to take the approach and step into the market segment of small cars. In addition, the launching campaign and its four phases: Big Bang, New Perspectives, New Choices, and New Experiences, will be explained in detail. The second part will cover the crisis that occurred after the launch of the A-Class and the re-launch in 1998. Finally, the analysis will show whether this incident harmed the image of the company on a long-term basis, and how advertising influenced this development.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 2 The Company Daimler-Chrysler – A Global Player
- 3 The Mercedes-Benz A-Class
- 3.1 Strategic Reasons for the Invention
- 3.2 The Launching Campaign
- 3.2.1 The Challenge
- 3.2.2 The Objectives
- 3.2.3 The Structure of the Launching Campaign
- 3.2.4 Phase 1 - "Big Bang"
- 3.2.5 Phase 2 "New Perspectives"
- 3.2.6 Phase 3 "New Choices"
- 3.2.7 Phase 4 "New Experiences"
- 3.2.8 The Results of the Launching Campaign
- 3.3 The Crisis
- 3.3.1 The "Moose-Test"
- 3.3.2 Media Reaction
- 3.3.3 Saving the Image
- 3.4 The Re-launching Campaign
- 3.4.1 Objectives
- 3.4.2 Phase 1 Inform the Public
- 3.4.3 Phase 2 - The A-Class is Safe
- 3.4.4 Phase 3 - Experience the Safety
- 3.4.5 Phase 4- The Re-launch
- 3.5 Results after the two Campaigns
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The main objective of this analysis is to examine the Mercedes-Benz A-Class launch campaign, its subsequent crisis, and the resulting re-launch campaign. The analysis aims to understand the strategic decisions behind entering a new market segment, the effectiveness of the marketing strategies employed, and the impact of the crisis on the company's image.
- Market expansion into the compact car segment
- The challenges of maintaining brand image while targeting a new audience
- The impact of a major product crisis on brand reputation
- Crisis management strategies in the automotive industry
- The effectiveness of multi-phased advertising campaigns
Zusammenfassung der Kapitel (Chapter Summaries)
1 Introduction: This chapter introduces the central theme of the analysis: how a large-scale marketing campaign for the Mercedes-Benz A-Class, intended to expand the brand into a new market segment, nearly resulted in a catastrophic crisis for the company. It highlights the contrast between Mercedes-Benz's traditional luxury image and its attempt to create an affordable car for the middle class, setting the stage for the analysis of the campaign's success and subsequent failure.
2 The Company Daimler-Chrysler – A Global Player: This chapter provides background information on Daimler-Chrysler, emphasizing its significance within the German and global automotive industry. It highlights the company's size, global reach, and its various brands, setting the context for understanding the scale and potential impact of the A-Class launch and subsequent crisis.
3 The Mercedes-Benz A-Class: This chapter forms the core of the analysis, detailing the strategic reasons behind the development of the A-Class, the extensive launching campaign, the crisis triggered by the "moose test," and the subsequent re-launch campaign. It serves as a comprehensive overview of the entire case study, weaving together the strategic decisions, marketing efforts, and the impact of the crisis on the company's image and future.
Mercedes-Benz A-Class Launch Campaign: FAQs
What is the main focus of this document?
This document provides a comprehensive analysis of the Mercedes-Benz A-Class launch campaign, the subsequent crisis caused by the "moose test," and the resulting re-launch campaign. It examines the strategic decisions, marketing strategies, and the impact of the crisis on Daimler-Chrysler's image.
What topics are covered in the analysis?
The analysis covers several key themes: market expansion into the compact car segment, the challenges of maintaining brand image while targeting a new audience, the impact of a major product crisis on brand reputation, crisis management strategies in the automotive industry, and the effectiveness of multi-phased advertising campaigns.
What is the structure of the document?
The document is structured into chapters: An introduction setting the scene, a background chapter on Daimler-Chrysler, and a central chapter dedicated to the A-Class, including its launch campaign, the crisis, and the re-launch campaign. A table of contents provides detailed navigation.
What are the key objectives of the A-Class launch campaign?
The primary objective was to expand Mercedes-Benz's market presence into the compact car segment, targeting a new, younger, and potentially more price-sensitive customer base while maintaining the brand's prestigious image.
What was the "moose test" and its significance?
The "moose test" refers to a series of tests conducted by a Swedish motoring magazine which revealed the A-Class's instability at high speed, leading to a major crisis for Daimler-Chrysler and negatively impacting its image for safety and reliability.
How did the company respond to the crisis?
Daimler-Chrysler initiated a comprehensive re-launch campaign following the crisis, focused on addressing safety concerns and regaining consumer trust. This campaign involved multiple phases aimed at informing the public, demonstrating improvements, and ultimately re-establishing the A-Class's market position.
What were the results of the initial and re-launch campaigns?
The document details the results of both campaigns, analyzing their effectiveness in achieving the initial objectives and the impact of the crisis and its resolution on the long-term success of the A-Class and Daimler-Chrysler's brand image. The full impact is explored in the final chapter.
What is the overall conclusion of the analysis?
While the document does not explicitly provide a single concluding statement, it aims to provide a detailed and comprehensive analysis of the entire process, allowing the reader to draw their own conclusions regarding the successes, failures, and long-term implications of the A-Class launch and subsequent events.
What type of audience is this analysis intended for?
This analysis is intended for an academic audience interested in marketing, crisis management, and the automotive industry. The structured approach and detailed information make it suitable for research and professional analysis.
- Quote paper
- Carolin Biebrach (Author), 2009, Mercedes Benz - How A Great Campaign Can Almost Kill A Company, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/129176
