Mercedes Benz moves into Experiential Marketing


For luxury brands, traditional advertising formats – Press, TVCs are falling into the  trap of  ‘Law of diminishing returns’, I guess.

Target consumers are aware of the brand benefits  of these luxury  brands as they have been around for decades but are seeking to ‘experience ‘the difference rather than ‘know’ the difference. "Let me experience it first-hand " is what they seem to be telling the luxury brand marketers. Hotels, retail stores have this advantage, as there is a ‘touch and feel’ for this luxury experience. What does an established luxury automotive brand like Mercedes do?

Welcome to Mercedes Benz World. The Mercedes Benz World will become a premiere leisure destination as it houses a five star hotel & spa, a cafe & a restuarant,  exhibition & conference facilities,  kidszone and of course a retail showroom and service centre. It also has 2.5 Km circuits for test drives and also a 100 acre off road course!

Mercedes Benz World is coming-up in Brooklands, which has a historic  motor racing circuit and will be open next year.

It’s a great idea.

The questions that came to my mind:

  1. How does one work the ROI for such  marketing investments as returns don’t justify quarterly expectations of analysts?
  2. As we move into a new marketing world order of "experience extensions" not just "brand extensions", are alliances, franchising and affiliations with related categories better or does one have to build from scratch?

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