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Mr Chan Fok You

In: Business and Management

Submitted By toxicblue
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This report is an analysis of the luxury car brand Mercedes-Benz based on its business in Hong Kong.


Mercedes-Benz is a German luxury vehicle manufacturer with a long history of more than 125 years. Its distribution penetrates in more than XX countries in the world.

Mercedes-Benz, in Hong Kong, is imported by Mercedes-Benz Hong Kong Limited and retailed to consumers by Zung Fu Company Limited. Together with smart and Maybach, Mercedes-Benz contributes to the wide-range portfolio of Daimler’s passenger car division.

Model Range
The model range of Mercedes-Benz is wide enough to cover from small compact car to large sedan, from family car to SUV and even super sports car. With the introduction of compact car sector, i.e. A-Class and B-Class, Mercedes-Benz converted many Japanese car owners or those from other lower-priced European brands.

Marketing strategy
Mercedes-Benz aims to maintain its luxury image and


Strong brand image
Mercedes-Benz is well known of its luxury and safety, also, the brand has a very strong association with a prestige status where “only wealthy people could own a Mercedes”.

Customer loyalty
For those customers whose purchase consideration is based on the brand’s prestige image, they tend to repeat purchasing the same brand, either stay with the same model or upgrade to a higher one.

Wide product range
As discussed above, Mercedes-Benz offers a wide range of models, in terms of price and car type. From around HKD300,000 to more than 3 million. This results in a very comprehensive customer profile.

Old brand image
Although the brand image is perceived as very luxurious, the brand is considered as a “daddy’s car” brand. As the flagship S-Class is very popular among the upper class and usually it is the boss in the car, not much young people would consider…...

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