Marketing Strategy Mercedes Benz Should Employ In Oman (Case Study Sample)

Marketing Plan Task for Mercedes- Benz Oman
Name
Affiliation
Date
Executive Summary
ZTC is the leading automobile provider in Oman. The business has been in the industry since 1972 and specializes in second hand and new Mercedes brands. The business has two market segments that include the commercial and the personal users. The business faces critical challenges in the globalization that poses a potential risk of introduction of international automobile dealers and other competitive brands in the market. In addition, the consumer behaviour has shifted to more environmental friendly cars and the competitive alternative brands that offer similar values to Mercedes. To stay competitive, the business needs to introduce two market segments. The segments will include selling to business and the Government as the primary users of the automobiles. In addition, the organization needs to shift from the traditional brick and mortar business to embrace the current technology in marketing and operations. Digital decision-support technology is need to analyse the trends in the market and offer relevant information that can be employed for effective strategic decisions. Mash-up enterprise data systems will enable the business to analyse the market and make relevant marketing and operation changes. Increased online and physical visibility through social media and business virtual space will increase the appeal and customer satisfaction to the users.
Introduction
Zawawi Trading Company LLC (ZTC) is the leading automobile business in Oman. The organization has developed from humble beginnings from its establishment in the year 1972. At its establishment, the organization was dealing with typewriters, gas cookers, and air conditioners. The firm ventured into the automobile business through the acquisition of the Daimler AG towards the end of the year 1972. The acquisition introduced the firm to the dealership and distribution of Mercedes-Benz in the region. From that time, the business has developed over the years to be the leading automobile provider in Oman. The organization offers personal and commercial vehicles to the users. The business specializes in the new and the second hand Mercedes brands. Delivering the best quality cars to the users is the motivation and the principles of business operations at ZTC (Zawawigroup.com, 2016).
The business wishes to strengthen its leadership and market position in the area. Although the business has been developing significantly, the recent changes in the globalization poses a threat to new completion and possible changes in the consumer demand and market segmentation. In addition, the changes in the technology may affect the business operations and the demand of their products by the users. Economic, social, political, and Governance issues as well as the trade liberalization may influence the operations of the ZTC through influence on competition. The paper will analyse the environmental internal and external factors affecting the performance and operations of ZTC business. The analysis will be done with the objective of using the results to develop a competitive marketing g plan for the organization. The analysis will focus on the external and the internal environmental conditions.
Current market and company situational analysis
Current market and situational analysis will evaluate the internal strength, weaknesses, opportunities, and threats in the firm. The analysis will evaluate the social, political, legal, technological, and economic factors influencing the performance and operation of the business. The analysis will evaluate the consumer behaviour as well as the competition in the market sector. The findings will be employed to develop a competitive marketing plan for the firm.
Competition
The business is one of the leading automobile providers in Oman. Although the business has held a leadership position that has been developed over the years, the current globalization and trade liberalization poses a critical completion threat to the organization. The current globalization has enabled the introduction of the international players in the Oman market. In addition, the improved technology in the automobile industry has produced significant competition from other brands that offer qualities ad values offered by the brans provide by Oman. The other models have competed significantly with Mercedes, more significantly in the wake of the hybrid and electronic vehicles (Season, 2016).
Consumer Behaviour
The consumption of the cars in Oman have been influenced by the fuel prices, cost of maintenance of the cars, and the associated quality and value of the brand. The Mercedes brands offered by the ZTC have had significant demand since the prices of oil have been favourable in Oman. The brands have offered quality, durability, and prestige that was comparable to none other. However, with the introduction of the electric and hybrid cars as well as the development in the other brands to meet the qualities as offered by the Benz, the consumers have shifted their demand to other brands (Season, 2016, P. 4).
SWOT and/or PESTEL analyses
The business has reputation for the best customer service in the automobile industry. The organization has established and loyal consumer base built over the years. The organization is the sole-dealer in the World-known automobile brand. The business uses traditional marketing and selling designs that have been bypassed by time and events. The business employs uncompetitive supply chain and inventory management that reduces the ability of the business to deliver in a timely manner. The globalization has posed a critical completion threat through market entry of the international competitors. The economy of the region is high and stable suitable for the prestige automobiles business. The region has not embarked seriously in the green energy movement thus the electric and hybrid cars do not pose a critical completion challenge in the organization (Zawawigroup.com, 2016, P. 5).
The key political and Governance structure of the region recognizes the automobile organization and offers legal protection for the business. The Government policies cushion and protect the local ventures from stiff competition of the international players in the region through differential taxations. The business has the potential to increase its physical and online visibility in the neighbouring regions that form a common trading bloc. The organization has the potential to expand by focusing on current technology in the operations marketing, and developing a competitive supply chain (Season, 2016, P. 6).
Market Segmentation
The automobile industry in the region can be categorized into commercial, luxury, and family/personal transport. The family automobile sector is the leading in the cars business. The family users can be categorized to ordinary and luxurious consumers. The second largest category of the market segmentation is the commercial sector. The sector is characterized by heavy and high-load vehicles capable of transporting agricultural an industrial goods across the regional and national boundaries. The last sector is the luxurious automobile sector. The market segment controls the smallest of the market in terms of the units demanded but is almost similar to the family segment in the amount of the money utilized in the division (Season, 2016, P. 6).
Current and possibly new market segments for Mercedes-Benz Oman
Mercedes Benz Oman focuses on the sales of the personal and the commercial automobiles. The automobiles offered are new and second hand. The possible new market segments for the Mercedes Benz in the region are the corporate and the business sector. Most of the family cars are sold to the families and individuals for their use. However, the business may focus on selling the family and smaller vehicles to the businesses from the use by their executives. The many organizations present in the region will provide additional and broad market for the smaller new and second hand Mercedes Benz Brands. On the other hand, the Governments of most if the countries form the key consumer of the products of organizations. In the light if that, the organization should consider having the public sector as the key consumers of their products. The Government would purchase a significant portion of the new and second hand automobiles, both small, and for commercial purposes. The additional consumer would increase the volume of the sales significantly(Zawawigroup.com, 2016, P. 5).
Marketing Plan Objectives
The business aims to increase the volume of sales by 20% in two years. The marketing plan will be aimed to increase the volume of the business sales by 20 % in the next two years. In addition, the organization will aim to increase the current market control by 30 % in the next two ears. The marketing plan objectives will be aimed to improve the satisfaction and loyalty of the customers. The marketing plan will be aimed to increase the value of the customers by 25% in the next two years. The marketing plan will be aimed to increase the returns of the organization by 15% and acquire a financial improvement in growth and performance by 13% by the next two years. The marketing plan will be designed to improve the conversion rates of prospects to consumers by 12% (Zogjani and Raçi, 2015).
Marketing mix Strategy Recommendations
The business will employ digital decision-support systems such as the mash up data technology for effective production and marketing decision-making process. The technology will be used in determining and analysing the broad internal and external environmental factors that influence performance of the business and give results that can be used for competitive decisions. The business will introduce two market segments for effective competency and growth. The two will be focusing o...