Premium Segment Communication Analysis 2007by BBDO Moscow for Mercedes-Benz
May 2008
Introduction
• In this presentation we review the communication delivered by the main competitors in the premium segment of the car market in 2007
• Each brand is analyzed by the values it communicates, and especially by the efficiency of such communication; the values we chose come from print ads deployed by the manufacturers and thus represent the consumer's view on the market
• Each of the brand's communication analysis is divided into two parts:– elements of the communication illustrating the values
represented by the brand which are divided into four groups: brand positioning/slogan, brand lines, body copy and BTL
– pros and contras of the brand's communication with commentary• In the final part we discuss Mercedes-Benz communication
and make recommendations on 2009 strategy• Please use buttons where available
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INNOVATION
SPORT
LEADERSHIP
Values
INNOVATION
SPORT
LEADERSHIP
Communication Pros
not just brand communication but rather brand
experience communication touching upon a wide variety of
topics
S-models emphasize sport dimension of the brand and
serve as locomotives for respective model lines
supporting consumer loyalty via corporate
magazine ads
communication of brand values via service ads
distinctive dealer template differs markedly from brand's campaigns
(red line in the bottom, print structure)
special package ads featuring appropriate visual support (e.g., DTM
Edition) accentuate both brand values and package's essence
Communication Pros
Communication Cons
most of the stories are simply dull
excessive amount of idle pompous phrases in body
copy looks fossil and annoys
Sales
C+ D+ E+ F+ Roadster Coupe Halo Fullsize SUV
Audi A3 (32%) A4 (25%) A6 (25%) A8 (15%) TT (63%) A5 (18%) R8 94% Q7 (40%)
15313 1683 4025 3719 1048 444 283 81 3341
C+ D+ E+ F+
Roads
ter
Coupe
Halo
Fullsiz
e SUV
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Audi
Сегмент (6 брендов)
Mercedes
Innovation
Sport
Leadership
EMOTIONS
INNOVATION
SPORT
DESIGN
Values
EMOTIONS
INNOVATION
SPORT
DESIGN
accented aesthetic value of executions
emphasizes the premium qualities of
the brand
different 'driving pleasure' concept interpretation depending on carline
contributes to communication consistency
Communication Pros
utilization of the Formula 1 halo vehicle
emphasizes sporty character of the brand
original spare parts and service promotion makes
the brand experience more attractive
international awards emphasize status of the cars and their owners
and serve as additional RTB
Communication Pros
communication based mostly on product attributes, not the
consumer values
unwitty attempt to turn product weakness (lack of
localized GPS) into advantage – as a result even those who didn’t know about it do now
tonality of a number of executions is vague
and inconsistent
Communication Cons
Sales
C+ D+ E+ F+ Roadster Compact coupe Coupe Compact SUV Fullsize SUV
BMW 1 (21%) 3 (17%) 5 (20%) 7 (11%) Z4 (20%) 3 Coupe (75%) 6 (41%) X3 (100%) X5 (32%)
14008 1089 2653 2963 772 143 1159 402 2118 2709
C+ D+ E+ F+
Roads
ter
Compa
ct co
upe
Coupe
Compa
ct SUV
Fullsiz
e SUV
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BMW
Сегмент (6 брендов)
Mercedes
Emotions
Innovation
Sport
Design
PERFECTION
INNOVATION
Values
PERFECTION
INNOVATION
aggressive promotion of
hybrid engines accentuates innovative
qualities of the brand
template update (‘innovations belt’ in the top of the print) softens the
overall 'sterility' of the messages
Communication Pros
monochrome color scheme of executions prevents them from standing out of the
clutter
Communication Cons
excessive amount of text in body copy looks fossil
Sales
D+ E+ F+ Coupe Midsize SUV Fullsize SUV
Lexus IS 15% GS 13% LS 20% SC 6% RX 37% LX 8%
13148 2450 1981 1407 63 6575 672
D+ E+ F+ Coupe Midsize SUV Fullsize SUV0
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Lexus
Сегмент (6 брендов)
Mercedes
Perfection
Innovation
CHEERFULNESS
SAFETY
Values
CHEERFULNESS
SAFETY
dedicated attention to safety (while almost all
the new cars get at least 4 EUROCAP stars)
emphasizes brand heritage
C30 campaign not only made the model one of
the most successful in its class but also updated
brand perception by the young people due to its provoking executions
Communication Pros
Dima Bilan as a C30
spokesperson made the
campaign more expressive
lifestyle communication focusing on certain
human values makes the campaigns more relevant for the TA
cultural activities help to make the new
positioning (‘Life is beautiful…’) more
consistent and contribute to core TA’s
loyalty
Communication Pros
brand values communication
inconsistency (both fragments belong to one
ad)
incomprehensible stories and headlines of
the messages
Communication Cons
Sales
C+ D+ E+ Coupe Midsize SUV
Volvo C30 (34%) S60 (22%) S80 (18%) C70 (100%) XC90 (34%)
21077 1796 3537 2669 52 6159
C+ D+ E+ Coupe Midsize SUV0
2000
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Volvo
Сегмент (6 брендов)
Mercedes
Cheerfulness
Safety
EMOTIONS
DESIGN
LUXURY
SPORT
Values
EMOTIONS
DESIGN
LUXURY
SPORT
unique color themes and
titles intended to differentiate
car models from each other
large part of the communication dedicated to cars’ interior
emphasizes luxurious qualities of the brand
Communication Pros
communication is overweighed with different values (even within one model) making brand image
vague for the consumer
most of the communication is executed in the
tonality of a brochure
Communication Cons
Sales
D+ E+ Midsize SUV Fullsize SUV
Infiniti G35 (5%) M (8%) FX (19%) QX (2%)
5540 834 1172 3355 179
D+ E+ Midsize SUV Fullsize SUV0
2000
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Infiniti
Сегмент (6 брендов)
Mercedes
Emotions
Design
Luxury
Sport
SUCCESS
COMFORT
DESIGN
Values
SUCCESS
COMFORT
DESIGN
Communication Pros
consistent visuals: print structure,
color scheme, etc
high recognition rate of the
type helps to identify the
brand instantly
high production value of
illustrations contributes to
building a premium
perception of the brand
starting from the E230 campaign
lifestyle storytelling
principle has been used in
virtually all print ads
AMG models advertisements
serve as an additional tool
for accentuating premium
qualities of the brand
insufficient convincing power of
the cross-carline campaigns: the
brand tries to hold conversation with
multiple fundamentally
different audiences at once
dealerships' print formats often do not correspond
with the status of the car
some of the executions' metaphors
lack precision
Communication Cons
excessive volume of text in the body
copies
too many values discussed within one
message
Communication Cons
Recommendations
1. In 2008 we should proceed with communicating our brand values, namely 'respect' and 'fascination', in a consistent and focused way:• in addition to product advertisements, to consider
applying more efforts through-the-line to cover various dimensions of Mercedes-Benz brand experience – special events, service, etc. (e.g., through some special projects in glossy magazines)
• to conduct a research into trends evolving in luxury categories (i.e., 'minimalistic luxury' as opposed to 'dynamic luxury' currently dominating in the segment) and to find a way to reflect them in the communication (in visual concepts and storytelling)
• to encourage dealerships to announce events like seasonal test drives as important luxury lifestyle happenings for their regions
• to consider putting more focus on our ‘halo’ carlines (such as CL, SL, AMG, McLaren Mercedes F1)
2. We should also try our best to correct current communication flaws:• to stick to the 'one ad – one car' principle and avoid bulk
advertisements speaking of several models at once
• to remain focused on values attributed to a certain model (in accordance with the principles stated in 2008 Communication Strategy), and do not make the consumer think out messages like puzzles
• to pay more attention to dealerships' communication and to exert influence on print format choice by giving recommendations on size, structure, etc. and indicating those to be avoided
• to avoid increasing the body copy volume in executions
Recommendations
CLS under attack
Two major launches from key competitors scheduled for 2009: BMW CS (reported to be the new 8-Series) and Audi A7 –
newcomers in the niche created and so far occupied solely by CLS-Class
• Presumably, these expressive and innovative cars will be used to the full in competitors' communication to attract more attention to their brands
• We should consider different ways of defending our position in the segment in 2009:– to focus consumer's attention on CLS (both in ATL and
BTL) by arranging an individual campaign for it– to utilize CLS as an effective image builder for Mercedes-
Benz brand using suitable media (i.e., large formats of OOH)
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Recommendations
THANK YOU
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Success
Comfort
Design