Mercedes Benz to Italy

Executive Summary

This report was examined the business plan of Mercedes Benz in order to export the product to Italy. Firstly, the background of Italy has been analyzed by using PESTEL strategies that are political factors, economic factors, sociocultural factors and technological factors in order to clarify factors that could have the impacts on Mercedes Benz when market the products in Italy. From the analysis of PESTEL, It could be seen that there are some obstacles that could prevent Mercedes Benz from doing market in Italy. For example, the recession of Italian’s economic in 2009, the problems of the government’s corruption, high unemployment rate, competitors and the Italian policy. However, there are more advantages than disadvantages for Mercedes Benz to market in Italy, for example, the stable of Italian’s politics, the support of Italian government, the potential of Italian customers. Next, this report also includes the marketing mix (4P) and competitive marketing strategy for Mercedes Benz to do the marketing and differentiate the brand from other competitors. Further, the recommendation has been given at the end of this report.

Introduction

Background of Mercedes Benz and products review

Mercedes Benz is a German automobiles’ manufacturer that was founded in 1886. Nowadays Mercedes Benz has more than 25 manufacturers around the world and there are several kinds of Mercedes Benz’s products, for example, passenger cars, trucks, buses and vans (Mercedes Benz, 2011). Mercedes-Benz has become one of the most well-known brand around the world that could maintain the reputation for its quality and durability. It could be seen by its dramatic improvement of the world’s highest quality car by climbing from 25th to 5th rank in 2007. Moreover, Mercedes-Benz received the Platinum Plant Quality Award for the Mercedes’ Sindelfingen from the Germany assembly plant (Bloomberg, 2006). Mercedes-Benz positions its products as a high quality, durability, luxurious and mature brand and focuses on an upmarket. These unique features could differentiate Mercedes Benz from other car’s brands. However, Mercedes-Benz also focuses on the new trend by adapting the market’s position in order to meet the needs of new customers and improve the sales, for example, focusing on fashion (Mercedes Benz, 2011).

Background of Italy

For the physical characteristics of Italy, Italy is located in Southern Europe which is in northeast of Tunisia and close to Mediterranean Sea. For the population of Italy, Italy has the population about 61.01 million people in 2011. For the age distribution of Italy’s population, there are 13.8 per cent of people whom have ages between 0 to 14 years old, 65.9 per cent for people whom have ages between 15-64 years old and 20.3 per cent of people whom