Mercedes-Benz India targets major spending shift

Last year, around a third of the marketing spend in India by luxury car marque Mercedes-Benz went into digital channels, but this year it is aiming to increase that proportion to 55% and to hit 90% by 2024.

Background 

The brand says it is moving away from the “spray and pray” approach of TV campaigns to embrace the “sharper targeting” it can get on social media, where existing owners spend a lot of time posting about their experiences; it can also generate greater interaction and engagement this way.

Why it matters

A new campaign launching its AMG model exemplifies the shift in thinking and highlights the financial challenge for traditional media channels. 

“We are investing exactly the same amount of money on Instagram that we would on television for this campaign,” says Santosh Iyer, VP/sales and marketing, talking to Campaign India. “It’s not a cost exercise, it’s about getting the targeted reach.” He adds that “we are looking at influencers like how we viewed [TV] channels”.

Towards a new business model

It’s not just the marketing spend that is moving into digital: Mercedes-Benz is also embracing a direct-to-consumer sales model. With pricing and discounts set centrally, the role of dealers has changed to become agents assisting with test drives and documentation. This has meant a greater focus on customer experience and has resulted in shorter closure times.

Key quote

“Today, 20% of our purchases come online (booking amount paid online). This was unthinkable two years back. Customers are demanding it and we have to follow the digital transformation” – Santosh Iyer, VP/sales and marketing, Mercedes-Benz India.

Source: Campaign India [Image: Mercedes-Benz.co.in]