Daimler-Benz AG: The A-Class and the "Moose-Test" (Case #37, Notes)
Discussion Questions
1. As we saw in the case analysis, Mercedes-Benz reacted defensively to the apparent failure of the A-Class in the "Moose-Test". However, the company soon realized its fault and immediately instituted a revised marketing strategy that most observers would classify as a successful recovery. Nonetheless, can Mercedes truly qualify its crisis control strategy as a success, or did the giant car manufacturer lose out the opportunity to claim another segment of the increasingly competitive automotive market?
2. Mercedes cars have long been synonymous with the highest standards of quality, luxury and safety. Suddenly, Mercedes decided to enter into the lesser valued subcompact segment. As it may be expected, Mercedes was not able to provide the same level of comfort and equipment for its new A-Class subcompact as it does in the luxury line. This leads to the question whether Mercedes' intent to enter this market segment is appropriate for a company of its standing.
3. Currently, Mercedes' A-Class is present in continental Europe, Britain, Japan, and some selected countries in Asia. There are various features tailored to different international markets, but overall Mercedes used a uniform marketing strategy. In view of the Mercedes' A-Class plant operating in Brazil as of this year (1999), could the A-Class find its way to the United States? What product adjustments should Mercedes make if it plans to enter the US market?
4. Today's media seem to play perfectly the role of devil's advocate and guardian angel. Sometimes, journalists are hailed for their investigative genius. Oftentimes, we despise the fact that they permit themselves to attack our most cherished ideas, principals, and heroes. In the unfortunate experience of Mercedes and its A-Class, we saw how a single journalist opened the way for an avalanche of questioning, incriminating, and persecuting media campaigns against Mercedes Benz.
Now, we must ask ourselves the following important question. Has the media become overly powerful to such an extent where a previously untouchable institution can be ridiculed on the premises that a mistake had been made voluntarily?
5. After the "Moose-Test" fiasco, Mercedes has become every journalist´s favorite car to flip over. Everyone who had witnessed the giant´s flagrant arrogance in the year ahead had salivated an opportunity like this. Jokes did the rounds throughout Europe, and the only one not joining in the collective laughter was Mercedes itself. The question now is, has all of this joking and gloating from the media harmed the company´s reputation or added to it.