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Published by:
IBS Center for Management Research (2021)
10 pages
Data source:
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The case study 'Mercedes-Benz India - Targeting a Younger Segment Without Diluting the Brand' describes how Mercedes-Benz India Pvt Ltd (Mercedes-Benz India) regained its leadership position in the luxury car segment in India. Mercedes-Benz entered India in 1994, the first luxury car brand to do so. Despite this, Mercedes-Benz India fell behind BMW and Audi, its fellow German luxury car brands, in terms of volume sales between 2009 and 2014. The primary reason for the dip in sales was the company's image as a luxury brand for the rich older man. The case looks at how the company took various initiatives to attract the younger demographic audience and reinvented its brand image to regain and consolidate its leadership position. The case study details the various targeting strategies that Mercedes-Benz India adopted including revamping its product portfolio with compact and sporty models, introducing customer-friendly in-house finance schemes to prospective younger customers, and using an omni-channel approach to promotion. The case also focuses on how Mercedes Benz India made use of digital technologies in its product, service, and marketing to offer enhanced personalized services to its customers, especially the younger segment. These included the launch of an e-commerce website for online sales of used and brand new cars; equipping vehicles with connected features, a digital sales program, and introduction of a contactless vehicle service and repair program. The case ends with a look at the company's plans to grow by expanding its target segment to include women customers, looking at the opportunities in tier II and III cities, and focusing attention on the retail experience online and offline in relatively untapped markets.

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.


Brand strategy; Customer relationship management; Personalized services; Marketing communications; Customer experience; Digital technologies; Segmentation strategy; Brand building; Product launch; Brand repositioning; Consumer attitudes; Purchase behaviour


The events covered by this item took place in 2015-2020.

Geographical setting


Featured company

Company name:
Mercedes-Benz India Pvt Ltd
INR 63.143 billion

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