Interview with Frank Bernthaler, Director Sales and Marketing, Mercedes-Benz Cars, Daimler Middle East and Levant
Another in our series of interviews with senior car guys about the state of the industry as we head into 2012
By Shahzad Sheikh
Q. Whilst initial expectations for 2011 were optimistic, it appears to have been a case of a stalled recovery with political unrest across the region, a natural disaster in Japan severely impacting the car industry, and fears of a double dip recession causing buyers to put off purchases. Now in the final quarter, do you find things are better, worst or about what you expected for the year?
In spite of the numerous challenges all manufacturers have faced in 2011, Mercedes-Benz Cars Middle East is on track to deliver on our sales targets this year, buoyed by a strong September, our best month since September 2008 and a very positive October.
Q. What changes in strategy, if any, did you have to employ to cope with the changing situation and unsettling events of the 2011?
We have monitored the situation closely throughout the year and have focused on marketing led tactical campaigns that have given us positive sales results, especially on S-Class luxury sedan, ML-Class SUV and our GL seven-seater SUV.
Q. In the retail environment in the UAE what have been the major developments this year, particularly in light of the new finance rules requirement buyers to have a minimum 20% deposit on new car financing?
Though a new minimum deposit has been introduced, many of our customers already expect to put down deposits on new cars and therefore this has not been an issue in any way. The only area it has perhaps altered things is in the entry level segments but due to flexible finance options such as the Star Program on the C-Class 200 with AMG Sports Package, we have been largely unaffected by the new finance regulations.
Q. Has there been any apparent shift in the demands, needs and requirements of customers? Are they buying more used cars, are they chasing more incentives, are they negotiating more, are they playing hard to get?
Customers are certainly shopping around in more detail and are negotiating harder on services especially. When it comes to used cars, our Proven Exclusivity programme has seen fantastic success since its launch two years ago and is continuing to grow impressively. It is important to note that while our used car business is growing, our new car sales have also increased. Overall, our dealers have adapted quickly to market trends and customer needs to provide the right product with flexibility and service packages to meet every customer requirement.
Q. Is new product still helping you to get customers into the showrooms?
Mercedes-Benz has launched a number of exciting new products this year, including the second generation, segment creating CLS, C-Class sedan, C-Class Coupe and the third generation SLK Roadster with more products to come in the form of the jaw-dropping SLS AMG Roadster. With such a fantastic array of new vehicles, we have seen a great deal of customer interest and showroom visits.
Q. Have you had to work harder at marketing your products and brand this year? What’s been the most effective way to deploy your advertising spend this year?
2011 is celebratory year for Mercedes-Benz as it’s the 125th Anniversary since Karl Benz and Gottlieb Daimler built the first automobile, the Daimler Patent Wagen. This important milestone has been the foundation for our marketing activities and subsequent new vehicle launches and tactical marketing campaigns, which have helped contribute to our success.
We have seen the effectiveness of PR especially this year, ensuring our new products have the exposure they deserve, while social media activity has continued to excite and entice new customers to the Mercedes-Benz brand.
Q. Looking ahead, what are your realistic expectations for 2012?
Our 125th Anniversary year has been very positive in the region and we look forward to further driving our ambition for success into 2012. We have a very exciting product pipeline for next year and we have every reason to feel confident, whilst we remain fully aware of the global economic situation and are prepared to make plans for any eventuality. We have been growing profitably over the past few years and together with our partners here in the region, we will continue to deliver products that set the benchmark, coupled with top notch customer service – remember, our mantra at Mercedes-Benz is “The Best or Nothing.”
