Mercedes and their Smart Cars, or the B-list.

A while back, we had an in-class discussion about whether Mercedes Benz was tarnishing its brand image by releasing a lower end model. My group member , Alice, whom I recently found out drives the same car as me (great taste!), seems to share the same opinion as I do, on the Benz matter as well. To quote her post,

“It’s the fact that Mercedes is now everywhere on the road that really turns me off.”

Couldn’t agree more. With the amount of Mercedes’ out on the streets now, it feels like they’re beginning to decline in their product life cycle. They’re starting to spit out anything they can (there’s now 14 different classes), and it’s getting repetitive. I mean, it’s not like they’re selling model after model of SLR McLarens. I’ve only seen 2 SLR’s over the past few years, and I see about 2 B-classes every 10 minutes driving in Vancouver and Richmond. I don’t find it prestigious nor perceive it to have a high value when I see it everywhere, every time. Nothing new.

Mercedes prides itself on luxury, and new technology. Neither of which I see any more. Unless I look at this:

but it’s not a Benz.  It’s the Hyundai Genesis, base cost of $40,000, is just $10,000 more than the B-class. The highest end of Hyundai vs. the Lowest end of Mercedes, A sports car vs. an “all around car”.

It’s just a matter of time that Hyundai will increase it’s perceived value, as long as it sticks true to its brand name and image – “Affordable New Cars”.

Like we’ve learned from the beginning, “your brand comes from the promises you keep”.

Mercedes may have then proceeded with “promises are meant to be broken”. Bold. Very bold, but not that smart. So much for Smart Cars..

The battle of the sodas.

I was reading Marketing Mag again, and another article caught my eye.

Coke vs. Pepsi.

We’ve always known the two soft drink powerhouses to be the first and second, but just recently, a change in the the US market has put both Coke, and now Diet Coke ahead of Pepsi.

AdAge, another of my favourite blogs also had a similar article.

Both Marketing Mag and AdAge questioned whether it was a smart move by Pepsi to suddenly drop from the loop of Super Bowl commercials this year. Instead, they chose to give $20 billion in grants to consumers as opposed to spending it on celebrity endorsements in the new Refresh Project. I personally had an encounter with the project since a friend of mine was working the promotion. In short, students were asked “what do you care about?” and then had the opportunity to take a picture, proudly holding their idea written on a whiteboard in front of a select background of their choice.

I must be perfectly honest, this push promotion strategy seemed to work at the time, and I was intrigued with the concept behind the project. But since the picture, I have forgotten about the project until now (that was in Oct.) and the picture is probably buried under some marketing notes in my room. In fact, when I think Pepsi, I think about this commercial:

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and not the project.

So perhaps a funny commercial with a well-known celebrity is a lot more long lasting? Especially since only a select few will have their Refresh ideas granted, as opposed to using a celebrity in a pull promotion.

Coke, the long leader seems to do this well. With a well-known product placement in popular reality singing competition – American Idol and its long-time sponsorship of the Olympics since 1928!

Roll out the change for roll up the rim!

I was driving home from lunch today and feeling a bit tired, I decided to grab a coffee on the way home since I still had an afternoon class. And then the little voice in my head kicked in and  I thought maybe I’d just save the extra drive (don’t even get me started on the gas prices these days) and make myself a coffee at home, or even better, hope that I still have an energy drink left in the fridge. And then it hit me…

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Rrroll up the rim.

Marketing Magazine reveals that Tim Horton’s has been keeping the success of the famous promotion on the down low. The main purpose of the promotion is to reward the loyal customers. Although redemption rates are said to be high, I must say I have been unsuccessful in winning anything so far: 0-1.

However, what attracts customers are the prizes. Like the article mentions, Napoleon, this year’s barbeque donor, admits that the brand recognition and brand awareness they are getting is huge. Their name is now plastered on who knows how many cups, and windows of Tim Horton’s all around the world-a lot of exposure for an Ontario based company. I can tell Napoleon that their partnership was well worth it. I will admit that I have never heard of the brand until I eagerly read my large double-double to see what kind of prizes I would be winning, and although I didn’t expect to win one of the bigger prizes in just one try (my Facebook updates tell me I’m about 20 or so cups behind winning even a coffee/donut), I now remember Napoleon, and I remember barbeques.

Toyota also comments on how the promotion allows them to better their perceived value.

Tim Horton’s and their partners:

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myself:

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