Paper Example on Customer-Based Brand Equity

Brand equity is the way the customer takes a product in the market. The term refers to mean a situation in which customers attach more value to a well-established brand. Brand equity is when a supplier dealing with the most popular brand, can earn the highest amount of income. (Keller, 2003)

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A reliable trade name is a believable signal to consumers with less knowledge about the market. The super brand is the one that determines the price maximum. Other firms follow the decision made by the most prominent brand owner in price determination. The broad concept of based brand equity is instrumental in market research, as it helps us to understand the competitive structure of the market. Where there is competition, brand equity is usually the difference in the performance of individual brands. Sometimes, however, the price premium that is set by the firms might not reflect any performance-based superiority. The price premiums in such a market show the brand equity of the most esteemed firms. (Baltas & Freeman, 2001).

Consumer-based brand equity, abbreviated as CBBE is a model used to explain how the success of a given brand is directly associated with the attitude of the consumers towards the brand. Economist Kelvin Keller developed this model. Kelvin argued that markets favor a brand that customers are wholly positive about. In his model, Keller explained that customers first establish the desire for a product before they purchase it. Customers can even desire the product before they acquire knowledge about it. The attraction is due to the reputation of the brand. Businesses do brand management in four steps. The first step in strategic brand management is identifying and establishing brand positioning. The second important step is whereby a business plans and implements marketing programs for its brand. The next step is usually managing and interpreting the performance of the brand. Finally, the business has to grow and sustain the brand equity of its product.

Executive Summary

Mercedes-Benz Malaysia (MBM) is a car manufacturing company located in Kuala Lumpur, Malaysia. The firm is well known for producing some of the most prominent vehicles with the label Mercedes Benz. The Mercedes Benz is an international company that started in Germany. It was initially called Daimler, a name that they derived from the man who made the first fuel-based vehicle, Gottlieb Daimler. The multinational company has branches in different countries, including Malaysia.

MBM has severally been declared the best car producer in Malaysia for several years. The best performance by MBM was realized in 2017 when the company made the most significant number of car sales in Malaysia. The company has always been on the race to launch new cars. The products of MBM are still the best in terms of permanence and service. It is worth mentioning that the company does not paint their cars but dips them in permanent paint.

The success of MBM has been a result of the production of the best quality products. Another reason why the company enjoys significant brand equity is that they have created a lot of awareness of their product within the country.

Mercedes-Benz Malaysia has worked hard to ensure that they remain on the top of vehicle manufacturers.

Introduction

Automotive firms in Malaysia show an excellent demonstration of how customer-based brand equity comes. In Malaysia, Mercedes-Benz is the most admired car. Our research will lead us through the process through which the brand has established its brand equity. Mercedes-Benz Malaysia has a record of the best-selling luxury car brand in the country

Mercedes-Benz has a motto that says "das Beste oder nichts" which when translated to English, it says "best or nothing." Indeed the company offers some of the best products as their motto says. The vision of Mercedes-Benz is to become the world's most renowned center for customer service in the automotive sector. (Edward et al., 2019) The company can be said to be working to achieve both their motto and vision. Mercedes has produced some of the most luxurious products. The company has produced well-known products which range from luxury cars, Lorries, trucks, buses, coaches, and ambulances.

Some of the most popular products that have been produced by the Mercedes Benz include the SUV car. Products from Mercedes in the class of vehicles include the subcompact hatchbacks and sedans, the subcompact executive car, the full-size luxury sedan, the roadster, and the compact luxury class. The company, therefore, is the all-time leader in the automotive industry.

Mercedes Benz Company operates as a multinational organization. In Malaysia, Mercedes has become one of the most successful organizations. Brands from the Germany Company are competing favorably with other products sold in Malaysia.

The main objective of Mercedes Benz is to achieve sustainable, profitable growth. The company aims at being leaders in the various segments of their business. To achieve this goal, the company works to enhance the role of smart brands that will improve mobility. Mercedes further plans to maintain its position as the most successful business in automotive production.

Mercedes Benz also aims at being a leader in innovation. The company works to ensure that there is a high expansion in vehicle connectivity. Expansion of in-vehicle connectivity will, in return, result in value-added products that the company aims at giving to its customers. Mercedes also aims at using advanced technology, which will, in return, create new business opportunities. Advanced technology, as a goal of the company, will make the company offer the best products to their customers. It is the desire to produce better quality products that have made the company keep working on providing the best cars. The latest development has been launching of their first electric car in the year 2018. Mercedes is still working on expanding and strengthening its position as the best producer of vehicles and other automotive products. The company has been working on improving the security of the products they produce.

Mercedes has a goal of improving its customers. The company has always been working to make products that people will still be dreaming of acquiring. The company has always been keen to add more value to its Superior products. The improvement in the value of the products has seen the company in a better position than its competitors. To get better, Mercedes takes customer data with a lot of seriousness. Every feedback from customers is supposed to be taken seriously in the company as it is key to making the company more competitive than other firms producing similar products.

Mercedes further aims at developing the entity to make it more successful. The company seeks to employ the most qualified personnel. A combination of most talented individuals, most passionate employees, and the use of advanced technology will put the company in the forefront. To make the employees more productive, the company puts employee motivation at the top of the priority list. A motivated employee is likely to deliver the best quality output. Knowledge of the importance of motivation has seen Mercedes attempting to become the best employer there is.

Mercedes Benz is doing great in the automotive industry in Malaysia. They have been declared the best automotive company in the country. A significant rise in the profitability of the company can be associated with an increase in customer brand equity for Mercedes products. Every person dreams of one day owning a Mercedes car, a Mercedes bus, or a Mercedes truck. Mercedes-Benz Malaysia has recently announced the launch of its newest generation of the locally assembled brand of SUV, Mercedes-Benz GLC 200, and Mercedes-Benz GLC 300 4MATIC. Launching of these new brands has seen the company remains the leader in making of the SUV premium cars in Malaysia.

Marketing and Branding Objectives.

Mercedes-Benz Malaysia has taken marketing as a c thing. Their objectives of widening the market have been analyzed and put down clearly.

One of their primary marketing objectives has been to increase sales. The company has the aim of increasing sales by 9%. The leading car manufacturer in Malaysia works on improving the size of transactions to realize their goal of profitable growth and higher value of the company.

Mercedes also aims at being the leading player in the vehicle-making industry. Their goal is to take over the world of car manufacturers. The company has a prime objective of becoming the leading manufacturer of trucks and vans in the world. In Malaysia, the company has overruled all the other carmakers and is on the verge of achieving this objective. An extension to the world will see the company being the global leader of automotive production (Norman, 1999)

Mercedes Company has a project called Daimler finance, whose main aim is to create a strong base for investment in the global company. Daimler's financial service aims at improving its return on sales by 17%. The company expects an increase in sales to result in a rise in its monetary value.

The Mercedes Company aims at being the leader in each of its fields. The company has five sections, which are connectivity, autonomous driving, mobility service, and electric mobility. In the area of vehicle connectivity, Mercedes aims at increasing the value of their products to the customers. To achieve an increased amount of the products, the Daimler company aims at using the most advanced technology. By using modern technology, the company will be able to come up with the best models of cars, buses, trucks, public service vehicles, and cargo transport vehicles.

Under the goal of autonomous driving, the company aims to come up with the best vehicle model that will inspire the customers. The company is also working on achieving their goal of mobility service. In mobility service, Mercedes aims at improving its automotive products to the best level. In cooperation with all their partners, Daimler's mobility works on making the future of automotive a great success.

Another marketing objective of Mercedes Benz has been to create the best electric vehicles. Electric cars are more conducive and productive than the existing fuel-based automobiles. The company is working on launching more electricity-driven in Europe and America. In line with the goal of electric mobility, Mercedes Benz launched its first electric car in 2018.

The company aims at widening its market. The company aims at getting more and more customers to achieve its objective of increasing sales by 9%. The firm, therefore, aims at creating more brand awareness to attract more customers from around the globe. Mercedes-Benz Malaysia also aims at launching more new car brands, as this will increase brands available in the market.

The Germany based company further aims at coming up with more new markets. The new markets will mean an increase in the number of customers and therefore increased sales. Growth in the volume of sales will make the company realize an increase in their profit. Daimler company also aims at coming up with ways of improving interactions with its stakeholders. The increase in communication will make the business able to get feedback from different players and therefore increase the productivity of the firm.

The company also has the objective of entering into new markets within the country and around the globe. To enter new markets, Mercedes-Benz aims at creating new factories all around the world. The expansion will enable the company to diversify the economy and therefore increase the volume of sales.