Comparison Paper: Toyota VS Mercedes-Benz

Introduction

In the global automotive industry, Toyota and Mercedes-Benz stand as two well-known and stable brands, each with distinct marketing strategies that have contributed to their success. Toyota emphasizes practicality, affordability, and family appeal, while Mercedes-Benz focuses on luxury, status, and exclusivity. This analysis compares their approaches using the 4Ps of marketing—Product, Price, Place, and Promotion—and examines their campaign management strategies to understand the impact on overall marketing success.

1. Product

• Toyota’s product strategy focuses on reliability, efficiency, and safety for a broad range of customers. For example, the Toyota Corolla, one of Toyota’s bestsellers, reached 50 million units[1] sold in 2021, showing its popularity for being long-lasting, affordable, and fuel-efficient. Toyota offers fewer customization options, focusing on practicality and simple designs. This approach fits well with Toyota’s target audience, who value easy maintenance and functionality over luxury. Studies, like the one published in Harvard Business Review in 2018, show that people interested in practical benefits prefer fewer product options, which supports Toyota’s product approach (Whitley, Trudel & Kurt. 27 June 2018. Harvard Business Review: “How many versions of a product do consumers really want?.” https://hbr.org/2018/06/how-many-versions-of-a-product-do-consumers-really-want).
• Mercedes-Benz positions itself as a high-end brand, offering a wide range of options and customizations. Models like the S-Class, E-Class, and AMG are designed for customers who want luxury, performance, and high-quality materials. Mercedes-Benz offers advanced technology, premium interiors, and many trim options, allowing buyers to personalize their vehicles to a high degree. This appeals to customers who value exclusivity and status, making Mercedes-Benz synonymous with luxury and a premium lifestyle. 

2. Price

• Toyota: Toyota uses a competitive pricing strategy to attract middle-income consumers. By focusing on efficiency, large-scale production, and the Toyota Production System (TPS), Toyota can provide quality vehicles at affordable prices, making them accessible to a broad customer base. This practical approach appeals to people who prioritize ease of use and low maintenance costs over luxury.
• Mercedes-Benz: Mercedes-Benz uses a premium pricing strategy, which reflects its high-end brand image. The higher prices are justified by superior craftsmanship, advanced technology, and the brand’s prestige, which attracts customers willing to pay more for exclusivity. Mercedes-Benz offers various models with different levels of luxury and performance, allowing buyers to choose features and options that meet their needs.

3. Place (Distribution)

• Toyota: Toyota utilizes an extensive global distribution network, including dealerships, online platforms, and partnerships, to ensure widespread availability. Toyota also adapts its models' names for different markets, helping them fit specific cultural and market needs. This strategy improves Toyota’s accessibility and strengthens its image as a customer-oriented brand. 
• Mercedes-Benz: Mercedes-Benz maintains a selective distribution network with exclusive dealerships that provide a premium purchasing experience. The brand focuses on major city centers and well-developed regions, aligning with its luxury market positioning. Mercedes-Benz dealerships offer personalized service and attention, creating an atmosphere that reflects the exclusivity and luxury of the brand.

4. Promotion

• Toyota: Toyota’s promotional strategy targets families and practical-minded individuals. The company emphasizes reliability, safety, and value in its promotional campaigns. Campaigns often portray Toyota as a brand for everyday drivers, focusing on themes of family, sustainability, and trust. This promotional approach reinforces Toyota’s reputation for value and reliability, appealing to consumers looking for a functional, reasonably priced vehicle. Koji Sato, President of Toyota Global, highlighted this in 2023 during his speech at the meeting with Shareholders, saying, “We will continue to create ever-better cars that are safe, reliable, and fun to drive, while keeping in mind our carmaker origins.” (Toyota. 2023. Notice of Convocation General Shareholder’s Meeting. https://global.toyota/pages/global_toyota/ir/stock/2023_shareholders_meeting_convocation_en.pdf). Toyota’s environmentally friendly options are presented as practical choices rather than luxury features. Similar even exists if we look for Toyota's Integrated Report 2023. The report is straightforward, focusing on data and textual content with limited visual elements. This minimalist approach aligns with Toyota's brand image of practicality and reliability.
• Mercedes-Benz: Mercedes-Benz’s promotional strategy centers around status, luxury, and innovation. The brand leverages high-profile events, sponsorships, and collaborations to reinforce its premium image and connect with its target audience. The promotional messaging speaks to consumers seeking exclusivity and the high-status association that comes with owning a Mercedes-Benz. Ola Källenius, CEO of Mercedes-Benz group, as part of the Letter from the CEO stated “In 2023 we … achieved significant strategic progress. In addition, we can build on an outstanding brand and a powerful team. All of these are excellent prerequisites for our ongoing promotion of the profitable, all-electric and software-driven future of Mercedes-Benz.” (Mercedes-Benz. 2023. Annual Report 2023. https://group.mercedes-benz.com/documents/investors/reports/annual-report/mercedes-benz/mercedes-benz-annual-report-2023-incl-combined-management-report-mbg-ag.pdf). This shows Mercedes-Benz’s commitment to delivering the best customer experience, with environmental care as a positive outcome rather than the main selling point. If we look at the Mercedes-Benz Annual Report from a promotional view, it’s clear that the report is visually appealing, with high-quality images and attractive design that highlight the brand’s luxury image.

Campaign Management Strategies

• Toyota: Toyota implements integrated marketing campaigns that combine traditional advertising with digital marketing efforts. The company focuses on broad reach and engagement, utilizing data analytics to measure effectiveness and adjust strategies accordingly. Visiting toyota.com, the first slides highlight each model’s benefits and practical use cases, such as the current football season in the USA, with the slogan “Every fan. Every team. Every season. Wherever there’s football, there’s Toyota.” This message resonates with a target audience that values practicality, and the visuals effectively demonstrate how Toyota cars enhance everyday life. 
• Mercedes-Benz: Mercedes-Benz employs targeted campaigns that emphasize exclusivity and luxury. The brand often collaborates with high-end partners and sponsors, like its partnership with Moncler, which appeals to high-end audiences. Campaigns are well-planned and executed to maintain brand consistency and appeal to the luxury market segment. If we look at the official website, mercedes-benz.com, they use the slogan “Because it’s Mercedes-Benz.” This slogan underscores Mercedes-Benz’s aim to highlight its uniqueness and brand power. For the target audience, it implies that the company’s products are unique and self-explanatory. 

Impact on Marketing Success

• Toyota: The focus on affordability, reliability, and family-oriented messaging has resulted in a strong global market presence and high customer loyalty. Effective campaign management has enabled Toyota to maintain a positive brand image and adapt to changing market dynamics.
• Mercedes-Benz: The premium positioning and consistent emphasis on luxury and performance have solidified its status as a leading luxury car manufacturer. Strategic campaign management has reinforced brand prestige and attracted a dedicated customer base willing to invest in high-end vehicles.

Conclusion

Toyota and Mercedes-Benz have successfully leveraged their unique marketing strategies to establish strong market positions. While Toyota focuses on broad accessibility, reliability, and safety, Mercedes-Benz emphasizes luxury, performance, and exclusivity. Both approaches have proven effective in achieving their respective marketing objectives and sustaining long-term success in the high-competitive automotive industry.

[1] Toyota Times. 21 August 2021. “A Quick Look Back on the Corolla's 55-Year History with Over 50 Million Customers”. https://toyotatimes.jp/en/insidetoyota/164.html