What started as one of the biggest and most expensive campaigns in the German automobile industry, almost ended in a disaster for the company. The result was the biggest crisis, a German automobile company had ever faced.
Mercedes-Benz is a high-class automobile company. Its products stand for luxury, reliability and dependability. But high-class cars are expensive and only affordable for the richer part of society. To keep pace with the fast developing automobile industry all over the world, Mercedes-Benz decided to invent car that reunites all three values, the company embraces. This car – the Mercedes-Benz A-Class – should have another important feature: It is affordable for the middle class.
With this car, Mercedes was approaching a new market segment and therefore new target audiences. A campaign, that fits the new car in the overall Mercedes image, was crucial. In May 1996 Mercedes Benz started its huge advertising campaign – almost one and a half years prior to the official product launch on October 18th 1997. More than 100 million Euro will this launching campaign cost the company. Despite that the campaign only ran in the European market, the Mercedes-Benz brand and this specific campaign caught international attention. Newspapers from all over the world accompanied the A-Class until its official launch. These newspapers were also there, when the crisis occurred, that almost harmed the company on a long-term basis.
Right after the launch, the car, that was supposed to be innovative, reliable and safe, failed in the so called “moose-test”. After almost two years of positive media coverage, a flood of criticism followed. Due to the high level of awareness for the car, the public was now also aware of the safety issues the Mercedes A-Class had. What followed was another campaign. The goals were to safe the image of the company, to deal with the crisis and to re-launch the A-Class half a year later.
The campaign analysis explains why Mercedes had to take the approach and step into the market segment of small cars. In addition, the launching campaign and its four phases: Big Bang, New Perspectives, New Choices, and New Experiences, will be explained in detail. The second part will cover the crisis that occurred after the launch of the A-Class and the re-launch in 1998. Finally, the analysis will show whether this incident harmed the image of the company on a long-term basis, and how advertising influenced this development.
Table of Contents
1 Introduction
2 The Company Daimler-Chrysler – A Global Player
3 The Mercedes-Benz A-Class
3.1 Strategic Reasons for the Invention
3.2 The Launching Campaign
3.2.1 The Challenge
3.2.2 The Objectives
3.2.3 The Structure of the Launching Campaign
3.2.4 Phase 1 – “Big Bang”
3.2.5 Phase 2 – “New Perspectives”
3.2.6 Phase 3 – “New Choices”
3.2.7 Phase 4 – “New Experiences”
3.2.8 The Results of the Launching Campaign
3.3 The Crisis
3.3.1 The “Moose-Test”
3.3.2 Media Reaction
3.3.3 Saving the Image
3.4 The Re-launching Campaign
3.4.1 Objectives
3.4.2 Phase 1 – Inform the Public
3.4.3 Phase 2 – The A-Class is Safe
3.4.4 Phase 3 – Experience the Safety
3.4.5 Phase 4 – The Re-launch
3.5 Results after the two Campaigns
4 Conclusion
Research Objectives and Core Themes
This paper examines the marketing and crisis communication strategies employed by Mercedes-Benz during the launch and subsequent safety crisis of the A-Class. It explores whether the intensive pre-launch advertising campaign contributed to the severity of the crisis and how the company effectively managed the brand's reputation during the re-launch.
- Strategic expansion of Mercedes-Benz into the compact car market.
- Analysis of the four-phase launching campaign and its communication goals.
- Impact of the "Moose-Test" crisis on brand image and public perception.
- Crisis management strategies and the effectiveness of the re-launch campaign.
- Long-term brand evaluation and consumer response to the A-Class.
Excerpt from the Book
3.3.1 The “Moose-Test”
During a test-driving on September 27th, 1997 the A-Class showed first instabilities in taking turns on higher speed. The test driving was done by the judges for the award “Car of the year”. One day later, test drivers from the company repeated the test and the problems didn’t occur anymore. Mercedes-Benz did no further research and therefore underestimated the problem (Egle, 2003). If they would have taken the problem seriously, Mercedes-Benz might have prevented the upcoming crisis.
Three days after the launch of the A-Class, on October 21st, the Swedish journalist Robert Collin tested the car for the car-magazine “Teknikens Värld”. The motoring journalist flipped the A-Class on its lid during a routine swerve test at 60kmh to avoid an imaginary moose. The name “Moose-Test” was born (Green, 1997). Collin declared the car as a huge constructional defect.
When the crisis occurred, the Mercedes-Benz Board members and the company’s spokesperson were currently at a Motor Show in Tokyo, Japan. Shortly after they were informed about the incident, Wolfgang Inhester, spokesperson, said: “A board cannot make a statement, just because somewhere in the world a car tipped over”. Nevertheless, Mercedes-Benz will investigate the reasons, why the A-Class tipped over, the company stated (Rother, 2003, p. 104).
Summary of Chapters
1 Introduction: Introduces the background of the Mercedes-Benz A-Class, the marketing strategy, and the subsequent crisis that threatened the company's reputation.
2 The Company Daimler-Chrysler – A Global Player: Provides context on the automotive industry in Germany and the role of the Daimler-Chrysler corporation as a major global manufacturer.
3 The Mercedes-Benz A-Class: Details the strategic intent behind the development of the A-Class, the phases of the launching campaign, the emergence of the "Moose-Test" crisis, and the successful execution of the re-launch.
4 Conclusion: Synthesizes how the initial intense advertising campaign was a double-edged sword, and how transparent crisis communication successfully prevented long-term damage to the Mercedes-Benz brand.
Keywords
Mercedes-Benz, A-Class, Moose-Test, Crisis Communication, Re-launching Campaign, Automotive Industry, Brand Strategy, Marketing Strategy, Public Relations, Product Launch, Corporate Image, Sandwich-Concept, Safety Standards, Consumer Awareness, Crisis Management.
Frequently Asked Questions
What is the core subject of this study?
The study investigates the marketing and communication strategies surrounding the Mercedes-Benz A-Class launch, specifically focusing on the transition from a highly anticipated product to a crisis situation caused by the "Moose-Test".
What are the primary themes discussed in the work?
The central themes include corporate brand strategy, the risks of market expansion, the influence of media coverage on consumer perception, and the methodologies for effective crisis management in the automotive sector.
What is the main research objective?
The goal is to determine how the massive pre-launch advertising campaign influenced the public's perception during the safety crisis and to evaluate the effectiveness of the subsequent re-launch campaign in protecting the company's brand image.
Which scientific methodology is employed?
The research primarily utilizes a case study analysis approach, examining documented media reactions, company communication efforts, and public response data surrounding the A-Class event.
What is the focus of the main content?
The main part covers the strategic necessity for Mercedes to enter the compact car market, the four-phase launch strategy, the impact of the "Moose-Test" crisis, and the comprehensive efforts to restore brand trust through the re-launch.
Which keywords define this work?
Key terms include Mercedes-Benz A-Class, Moose-Test, crisis communication, brand management, and automotive marketing.
How did the media react to the "Moose-Test" incident?
The media reaction was initially critical and sensationalist, with many outlets highlighting the car's instability, which created a significant challenge for the company's reputation and luxury brand status.
How did Mercedes-Benz resolve the crisis?
Mercedes-Benz shifted to a transparent crisis communication strategy, recalled the vehicles, implemented technical improvements, and successfully engaged in a high-profile re-launch campaign that restored consumer confidence.
- Quote paper
- Carolin Biebrach (Author), 2009, Mercedes Benz - How A Great Campaign Can Almost Kill A Company, Munich, GRIN Verlag, https://www.grin.com/document/129176
