Bang & Olufsen Marketing TEST
1) Mercedes is installing its first Bang & Olufsen Audio Products in its cars in 2010.
Question: Account for Mercedes buying behavior back in 2010.
High risk and High involvement in decision making therefore I consider it to be 8 steps in the B.T.B buying behavior of Mercedes.
Recognition of a problem/need: Mercedes feels the need to improve/change their sound system.
Why did Mercedes decide to cooperate with Bang & Olufsen? It is a high involvement in decision making for a company to choose to cooperate with another company, especially when they both differentiating themselves by going for a relatively small market of the consumers, ...view middle of the document...
Finding B & O, and choosing them instead of competitors to B & O. considering if this is the right company for us, do they really fulfill our needs and match us in for example exclusivity and brand value? What will happen if they don’t?
Acquisition and initial analysis of proposals (samples) from supplier:
Mercedes chooses B & O and starts their cooperation. To make the sound system exclusive and to be sure that they got something as exclusive as their own brand they saw the opportunity in B&O. Communication and planning where Mercedes and B & O work together to make a plan for their cooperation and to see what is needed of them to create this sound system and fulfill the needs. A proposal is being delivered from B & O to Mercedes.
Evaluation of Proposal and selection: Mercedes evaluates the proposal and decides if it is a go or no go.
Selection of and order routine: How is the sound system going to be delivered?
Performance review: Getting feedback from costumers and critics and evaluating it to see if the cooperation has been a success or if there is something that needs to be improved. Does the cooperation satisfy Mercedes and their hopes and goals? . Considering that they still cooperate I would say that their installment must have pleased both companies. Even though the car market has been tough the last years the high income costumers are still going to look for cars that cost more than the average and when they do, they are going to look for the cars that has that little extra. The feedback received from both costumers, critics and competition must have been positive since they decided to continue cooperation in 2012 (Bang & Olufsen expands the
partnership with Mercedes-Benz ).
Mercedes probably saw the similarities in their products, both being high involvement and high class products that stands out and are considered classy. Therefor a cooperation between the two might make them even more exclusive and as they state on the B&O website “Create the perfect marriage of brands with an unrelenting focus on excellence and superior quality”. Considering that the target groups of both companies is high income people the focus on superiority to the expense of higher cost will fit Mercedes just fine. If they want to be perceived as one of the best they need other products from other companies that is considered to be one of the best in their business.
2) Bang & Olufsen is focusing a lot of resources on the Chinese market since 2011.
Question: Segment the market (3 segments) and select the primary target group for Bang & Olufsen on the Chinese Market.
| “in need of the best” | “ Coolio” | “to much money” |
Age | 25-65 | 25-40 | 40-70 |
Income | Higher middle - High income | Higher middle to highIncome | Very high income |
Lifestyle | Long evaluation, finding the best | Need to be recognized as hip and wealthy, following the brand. | Causal in buying...