PRODUCT- DAIMLER BENZ
Introduction
The product I researched on for this assessment is Daimler Benz in Germany. Daimler Benz is a German international company which is focused on manufacturing automobiles, motor vehicles and internal combustion.
Geographical setting
Germany is a country in west central Europe that stretches from the Alps, across the north European plain to the North Sea and Baltic Sea. Sharing borders with nine other European countries: Denmark in the north, Poland and Czech Republic in the east, Switzerland and Austria in the south, France in the Southwest and Belgium, Luxembourg and the Netherlands in the west makes it easier to transport the products. The territory of Germany covers consisting of of land and of waters. Germany has a temperate and marine with cold, cloudy, wet winters and moderate warm summers and in the south occasional warm fohn wind climate.
Description of Political System
Germany is generally a safe country with exceptional standard of living from analysis done by the organization of economic cooperation development (OECD) as compared to other European countries. Its political system is governed by a BASIC LAW which provides freedom and stability
Population and Demographics
Population of Germany was estimated to be 82,031,000 people living in the country. The population growth rate is 0.28% and the birth rate is 8.42 births/1000 populations, infant mortality rate is 3.46 deaths/1,000 live births. The percentage of people from other countries which constitute the population: 80% of indigenous German, 11.6% belongs to those from other European countries, 3.7% belongs to Turkish background, 1.7% Asians background, 0.7% African backgrounds, 0.5% American background, 1.8% others. According to organizational report, Christianity is the largest religion in Germany followed by Islam then followed by other religions.
Economic statistics and Descriptions
Germany is the largest economy in Europe and the fourth largest economy in the world with a gross domestic product (GDP) of $3.621 trillion in 2014. The country is ranked as the world’s third largest exporter with exports accounting for 41.7% of the total German economic input with an inflation rate of 0.5%. Manufacturing is the mainstay of the German economy, with the export sector dominated by automobiles and machinery. Germany’s exports of services are relatively underdeveloped and reform in the services sectors is relatively slow but new sectors like IT, biotechnology and renewable energy are growing markedly. Agriculture accounts for only one percent of GDP. Below shows the percentage share of each export category in terms of Germany’s overall exports
Vehicles: 17.7% of total exports
Machines, engines, pumps: 17.4%
Electronic equipment: 9.8%
Pharmaceuticals: 5.3%
Plastics: 4.7%
Medical, technical equipment: 4.5%
Oil: 3.1%
Aircraft, spacecraft: 3.1%
Iron or steel products: 2.3%
Organic chemicals: 2.2%
Language
German is the official and predominant spoken language in Germany.
Target Market
The traditional Mercedes Benz target market includes the upper-class consumers aged 40 and up who want a car with luxury level conveniences and a high end feel. Although Mercedes Benz continues to target many of its models to upper class, middle-aged drivers, some advertising campaign are focusing on different populations. Mercedes Benz is targeting middle class drivers with its lower priced but still luxury level, CLA sedan. Ads featuring the use of social media using several platforms such as Instagram, YouTube & Facebook, popular music and online activities draw in younger upper class buyers in an attempt to create a positive emotional connection between the Mercedes Benz brand and upper-class young adult aged 25 to 40
Availability of channels of distribution
Daimler Benz ships its product to authorized dealers at different locations where they can be accessed by retailers or consumers
Market conditions faced The condition which affects Daimler Benz