Executive Summary

Mercedes is regarded as one of the popular automobile manufacturing organizations. It is a multinational firm, which is based in Germany. Recently, the organization has focused on the offering of car sharing services and launched a car sharing business in Munich, named Mercedes Croove. The company has a strong intention to expand its business reach in several developed and developing nations across Europe in order to penetrate the global market place and establish a strong customer base across the globe. Recently, the company has decided to enter in the potential French market considering the growing demand as well as effective customer satisfaction level. However, the macro external environmental factors are almost favorable for the management of Mercedes Croove in the French market. However, it would be better for the management of Mercedes Croove to adopt the Joint venture entry mode to enter into the potential and competitive car sharing industry of France,

The French industry has become highly competitive. Therefore, the company should adopt some unique competitive approaches in the business operation process for the better business growth. First of all, the company should try to consider both traditional and contemporary marketing activities to ensure a strong business growth. It will also assist the company to ensure strong brand awareness. Apart from these, the management of Mercedes Croove should also consider effective economic pricing for the services considering the affected economic environment. These will assist the company to ensure effective competitive advantages.

Selected Country: France

Now-a-days, French people have become more brand conscious comparing to the previous years. However, PESTLE analysis will be conducted below in order to analyze the national business environment and the impact of the macro external environmental factors on the business performance of the company.

PESTLE Analysis

It is an important macro external environmental analytical framework, which will assist the management of Mercedes Croove to determine the impact of the macro external environmental factors on the trade performance of the firms.

Political

French is politically stable country and the political environment is favorable for Mercedes Croove as the French government is supporting the trade operation process of the car sharing organizations as these firms significantly contribute towards the economic and social growth as well as sustainability of the country.

Economic

The economic environment is slightly challenging for Mercedes Croove as the recent European financial crisis affected the growth of the industry as well as economic sustainability of France. Growing unemployment rate, low purchasing power and low disposable income are the major consequences of this slowdown. Therefore, it can clearly state that the growth of the industry can get affected in this situation.

Social

The social environment is considered as a supportive factor for Mercedes Croove in France as the demand for quality, efficient and price effective car sharing service is significantly increasing in France. Hence, it is highly acceptable that the Mercedes Croove can gain effective social support from the French societies.

Technological

The technological environment is also supportive for Mercedes Croove in France. The management of Mercedes generally integrates advanced technological approaches in the operation management process for the better business growth. The technological development of France can support the trade operation process of Mercedes Croove.

Legal

The legal environment is slightly difficult for Mercedes Croove as the government of France has developed some strict and critical policies for the business organizations including trade environment policies and employment policies.

Environmental

The physical environment is also slightly challenging for the management of Mercedes Croove as the French government has developed some policies for the transport service providing companies to reduce the growing level of the environment sustainability.

France is an economically and socially developed European country. The demand for the road networking and transportation services has increased significantly across the world. Most importantly, the majority of the French individuals used to travel to different locations within the country due to the business, education, household, individual and other types of official requirement. Previously, the French individuals tend to be price concerned. The market size of car sharing industry is competitive and highly potential in nature due to the consideration of growing demand. The demand has grown by 4 percent in the year 2016 comparing to the year 2015. UBER, Le Taxi, Car2Go are the major competitors of Mercedes Croove in the French car sharing industry. Apart from it, the growing market demand also can motivate the management of the company to enter in the potential French car sharing industry.

Entry Mode Selection

It is already discussed that the French car sharing market is highly saturated and full of some potential competitors. The industry is dominant by several multinational and regional service providing organizations. Most importantly, all of these companies have a strong presence in the market place through the establishment of a potential target customer base. Hence, the management of Mercedes Croove needs to consider some important aspects before entering into the potential and competitive French market. Most importantly, the majority of the companies should adopt different types of foreign market entry modes, such as exporting, licensing, turnkey projects, franchising, wholly owned subsidiaries, strategic alliance, joint venture and acquisition. These all are important entry modes, which can be considered by the management of Mercedes Croove. Before entering into a market through a particular market entry mode, the management of Mercedes Croove needs to conduct an in-detailed market analysis to determine the actual number of target customers. However, this is an important aspect to express that the management of Mercedes Croove needs to adopt joint venture entry mode to enter into the potential French market considering the potentially and growth factors of the French market. There are five major objectives of the joint venture entry mode. These five fundamental objectives are risk or reward sharing, technology sharing, market entry, conforming to the regulations developed by government and collaborative product development activities. The management of Mercedes Croove needs to adopt the joint venture entry mode due to some advantages and positive characteristics of this particular market entry mode. These will be analyzed and discussed below.

Risk sharing can be regarded as the major advantage of joint venture. A joint venture is basically known as a strategic alliance between two or more than two entities or individuals to get involved in a particular project. The majority of the companies across the world try to adopt the joint venture approach in the business management activities in order to ensure risk sharing aspect. Effective risk sharing aspect can help the management of a company to share the challenges and risk factors with the other partners associated with the particular ventures, Different types of business management strategies are required to be implemented in the trade operation process. The risk sharing approach can help a company to get effective support from the business partners. This will also help the companies to reduce the possibilities business losses. Apart from the risk sharing activities, the majority of the companies also get help from the business partners regarding the strategy establishment process. The companies in the new market place can gain help regarding effective opportunity development process through the joint venture approach. Apart from it, the organizations need to adopt some unique strategic approaches to meet the demand of the target customers. Effective risk sharing approach and newly established opportunities can be enhanced in the international market place for the joint venture firms. These will significantly assist the companies to ensure positive business growth for Mercedes Croove in the French market place.

Apart from the effective risk sharing and opportunity development process, the companies can effective support regarding the resource allocation, resource implication and access to the advanced resources aspects through the joint venture entry mode. The consideration of the joint venture entry mode can significantly assist the companies to get access to the developed supply chain network of the business partners. Supply chain and distribution activities are considered as some important business operation activities in the operation management process of a company. Similarly, the operation management team of Mercedes Croove should also focus on the establishment of unique and efficient supply chain as well as distribution network. The majority of the companies in a joint venture mode seek for help from the business partners’ supply chain and distribution network. Similarly, the management of Mercedes Croove should get huge and effective support from the management of the business partners regarding the business partners and operation management activities. The majority of the companies can get effective help from the management of the business partners regarding the logistics activities too due to the consideration of the joint venture business mode. Overall, the joint venture market entry mode can ensure effective profitability and risk free business operation activities from the initial point of time.

The management of Mercedes Croove always believes in the utilization of the skilled human resources and advanced technological resources. The company management should consider the partnership with the companies, which is habituated in the implication of the advanced technological resources. It is already discussed that the French car sharing industry is highly competitive and potential. Most importantly, the companies within the French car sharing industry are trying to execute some important strategic approaches including advanced technological approaches and risk sharing approaches in the business operation activities for better business efficiency. The organizational management of Mercedes Croove should consider the implication of joint venture business entry mode in the French market and it is acceptable that the company will be successful regarding the access to the effective technology and skilled human resources quite effectively.

Last but not the least; the consideration of the joint venture market entry mode can assist the companies within the French car sharing industry to focus on some quality business management activities. The consideration of the joint venture entry mode will assist the management of Mercedes Croove to have access to the established customer base. This is an important consideration for the management of Mercedes Croove as the majority of the multinational organizations across the globe used to spend their time in establishing a potential customer base. This is acceptable that the majority of the companies will take care of the effective business growth through the aid from the business partners due to the developed resource base, employee base, supply chain network and customer base. These will assist in effective business growth. Hence, the consideration of the joint venture market entry mode is highly justified.

Target Market

Before considering the major target market analysis, the marketing department of Mercedes Croove needs to consider the target market segmentation. The marketing department of the company can adopt three types of segmentation strategies, such as demographic segmentation, geographic segmentation and behavioral market segmentation. In terms of the demographic segmentation, the marketing management of Mercedes Croove should target age, culture, income group and gender of people. In terms of age background, the marketing department of Mercedes Croove should target people men and women aged between 15 and 65. The major target customers will be belonging to the middle class, higher middle class and higher class income group. Households, young college students, business entrepreneurs and company executives are regarded as the major target customers. Most importantly, the company will target people of all the cultural background. In terms of geographic segmentation, the marketing management professionals should focus on the targeting of French people. Apart from it, this is a vital fact to acknowledge that people of different geographical background, which are staying in France; will be targeted by the marketing management professionals of Mercedes Croove. Apart from the geographic and demographic segmentation, this is an essential aspect to state that the marketing professionals should also adopt the behavioral market segmentation. According to this market segmentation approaches, the marketing management professionals should target the brand conscious people. This is acceptable that the brand conscious people used to select the brands with higher image. Mercedes Croove is a strong brand and this is acceptable that the behavioral segmentation is highly justified.

From the above mentioned market segmentation, it is clearly identified that majority of the target customers are from France as the marketing department of Mercedes Croove is focusing on the targeting of people of different cultural, religious and geographic background, who are staying in France. Apart from it, the marketing management professionals of Mercedes Croove should also target both male and female target customers. Hence, this is crystal clear that the company will target the customers irrespective of different caste, culture, religion and gender identity. Majority of the companies generally give importance and value to the age group of people before developing the target customers. This is important to mention that the people aged between 15 and 65 are the major target customers. The management of Mercedes Croove always believes in higher quality services at the reasonable price level. In addition, the majority of the target customers of the car sharing services also focus on the integration of safety and higher functionality aspect before selecting a particular car sharing process. Most importantly, the safety and functionality concerned people are the major target customers of Mercedes Croove as it is crystal clear that the management of Mercedes Croove is always concerned about the quality of the services. In addition, people of higher income background, middle class income background and the higher middle class income background are the major target customers. Business professionals, executives and young adults are also regarded as the important target customers.

Marketing Objectives

Marketing objectives can be considered as an important and vital integral part of the marketing plan of any company. The marketing management professionals should consider some important marketing objectives in order to develop a potential and quality marketing plan.

First of all, the marketing management professionals of Mercedes Croove need to avoid some vague aspects in the marketing objectives. First of all, the marketing management professionals need to give effective value to the target customers. Most essentially the satisfaction level and the needs of the target customers should be taken care of by the marketing management professionals. Effective safety and efficiency of the vehicles used in the Mercedes Croove services should be taken care of by the management of the company. In addition, this is also an essential consideration to sate that effective location of the adopted and implemented strategies is an important criteria. The majority of the companies should adopt some essential business management approaches in order to ensure quality business growth. The appropriate establishment of the unique strategic approaches in the business operation management process can cause a significant business process outcome. Hence, consideration of the safety, security and time efficiency aspects are regarded as some important aspects. These aspects need to be considered by the management of Mercedes Croove.

Some important and actionable strategic objectives need to be established by the management of Mercedes Croove. First of all, the successful fulfillment of a marketing objective significantly depends upon the quality marketing and promotional activities. Most importantly, this is an essential aspect to acknowledge that the marketing management professional of Mercedes Croove should adopt two types of media platforms to promote the products and services. First of all, this is acceptable that the marketing management professionals of Mercedes Croove should consider the implication of the traditional media platforms in order to improve the brand awareness of the products. Apart from the traditional platforms, such as news papers, hoardings and word of mouth; the marketing management professionals of Mercedes Croove should also consider the contemporary marketing and promotional platforms to create significant brand awareness of the offered services. Hence, the strong brand awareness can be considered as the major marketing objective of Mercedes Croove.

Apart from the customer satisfaction and customer awareness, profitability as well as market share growth including sales volume also can be regarded as important business management approaches. The marketing management professionals of Mercedes Croove should consider the implication of a strong and effective business management approaches to increase the profitability of the firm in the next quarter. Apart from it, this is acceptable that the marketing management professional of Mercedes Croove should focus on increase of market share growth rate by 20 percent in the next three years. Most importantly, the management of the company should also focus on the earning of 15 percent return on investment in the third year of business operation process. These are some important marketing objectives, which need to be prioritized by the management as well as marketing department of Mercedes Croove.  

Marketing Strategies to Meet Marketing Objectives

4Ps of marketing mix strategy can be executed by the marketing professional of Mercedes Croove in order to meet the developed marketing plan quite successfully. Marketing mix framework is regarded as the important and valuable strategic marketing framework, which will assist the marketing management of Mercedes Croove develop effective product, pricing, distribution and promotion strategies in order to meet the developed objectives.

Product Strategies

Previously, the management as well as marketing managers were focused on the use of the Mercedes cars. However, later the company management has decided and allowed that cars of all the brands will be considered under the registration process in order to bring an effective diversity within the industry. Apart from it, the research and development team of Mercedes Croove has incorporated several unique strategies in the business operation process for the better business growth. In terms of the consideration of the adoption of products, the management of the company has adopted some unique aspects. First of all, the marketing department as well as management of the company as ensured the safety and security aspect of the cars as the management does not consider cars under this service offering process old than 15 years. This is an important approach. This is also an essential consideration that the management of the particular company focuses on the functionality aspects according to the demand of the target customers. In terms of the superiority of the competitors’ products and services, this can be accepted that the management of the company has strongly adopted high quality and superior business management and pricing activities integrating safety and sustainability aspect.

Pricing Strategies

Similar to the product strategy, pricing strategy also can be regarded as an important activity under a marketing strategy. The success of a particular product or service always depends upon the effective pricing approaches. This is an important consideration that the management of Mercedes Croove used to adopt and execute the cost based pricing approach in the trade management activities to offer the products as well as services to the target customers. Most importantly, it can be accepted that the company always focus on the establishment of a pricing approach without compromising the quality and functionality of the products. Most importantly, the company management used to follow the customer satisfaction and customer safety as major priority works. Focusing on these specific aspects, the organizations used to develop the pricing approaches.

Apart from the cost based pricing of the offered Mercedes Croove services, the marketing management professionals of the company also focus on offering of the discounts. For example, the management of the company offers free ride and membership services to the first and premium customers. This particular discounted pricing service actually can help a particular company to enhance the effective customer loyalty aspect. In addition, this particular aspect also can assist the organizations to focus on the unique business management activities.

In terms of comparison with the price level of the competitors, it is quite transparent that the Mercedes Croove services are available in the premium price level comparing to the services of the potential competitors. It is acceptable that the competitors can get a significant competitive edge comparing to the services of Mercedes Croove.

Promotion Strategies

Similar to product and pricing strategies, this is an important consideration for the management of the Mercedes Croove to accept that the marketing and promotional activities are considered as the important business operation activities. Effective and unique promotional and marketing activities can assist the companies to create a strong brand awareness of the products and services among the target customers.

This is acceptable that the majority of marketing management professionals of Mercedes Croove have adopted the combination of both the traditional as well as contemporary marketing activities. In terms of the traditional Medias, the marketing management professionals have used news papers and hoardings to reach out to the target customers. In terms of the contemporary promotional media, the management of the particular company including the marketing professionals have adopted several unique digital media platforms, such as mobile application based promotion, online social media promotion, company website promotion and television promotion to create a strong brand awareness. Apart from these particular aspects, this is also essential to state that effective sales promotion method and public relationship approaches have been used by the organizational management for the better business growth.

Apart from these promotional activities, the sales executives will also adopt the personal selling activities. Consideration of the personal selling activities will help the company to develop a strong relationship with the target customers.

Last but not the least; the management of the company should strongly adopt and implement some unique approaches. In terms of the promotional activities, the competitors also mainly focus on the strong contemporary promotional activities for the better business management and brand awareness aspects. Majority of the companies should seek for better competitive advantages through the promotional activities, similar approach should be considered by the management of Mercedes Croove for better brand awareness.

Distribution Strategies

In terms of the distribution activities, the operation management professionals of Mercedes Croove will adopt the roadways mode of transport network. In terms of the distribution network, the company management team will consider the implication of the close ended centralized distribution network in order to keep entire control over the logistics, supply chain and distribution management activities. Majority of the companies or the competitors within the French car sharing industry has adopted and implemented some unique strategic approaches for better business growth. The competitors are mostly habituated with the decentralization in the distribution network. The consideration of the strong and adequate centralized distribution approach will assist the management of Mercedes Croove to ensure cost and time effective distribution approaches.

Final Recommendations

From the above discussed and analyzed facts, it has been identified that the French car sharing industry is considered to be saturated. In addition, majority of the potential competitors are also concentrated on the implication of some unique strategic approaches in the business management activities for the better business growth. The organizational management and marketing department of Mercedes Croove should consider the following activities in order to meet the developed objectives quite effectively.

First of all, pricing would be an important business operation aspect. Effective pricing strategy should be considered by the management of the company in order to ensure effective customer loyalty. It is already identified that the management and marketing management professionals of Mercedes Croove have adopted and implemented the cost based pricing for the Mercedes Croove services. Considering the growing competition and economic slowdown of European countries, it can be recommended that the management of Mercedes Croove should adopt and implement economic pricing approach for the services. Consideration of the cost leadership business level strategy will assist the management of the organization to offer products at the economic price level. The adoption of the cost leadership approach will significantly assist the management of the company to take care of the cost reduction in the business management activities. These specific aspects will also assist the company to offer services at lower possible pricing.

Last but not the least; the management of the company should also consider the implication of the environmental sustainability approaches in the business operation process for the better business growth as this particular environmental sustainability aspect will assist the company to take care of the growing carbon emission level and emission level of the other green house gases. These will significantly assist the company to take care of the effective ecological balance and environmental sustainability.