Cannes Lions
OGILVY, Beijing / MERCEDES BENZ / 2023
Overview
Entries
Credits
Background
In 2015, the Chinese government provided subsidies and tax exemptions to new energy vehicle companies. Electric vehicle production in China has since surged, growing by 7300%, and China now boasts more than 50% of the global electric vehicle stock. Investment in China's new energy sector is 200% higher than in the United States. Over 50 Chinese electric car brands, mostly focused on technological innovation, have emerged, making it challenging for traditional car companies differentiate themselves in the market. Plus, Chinese consumers increasingly value advanced technological features over traditional luxury, causing them to underestimate luxury car models' ability to offer advanced technical capabilities.
Our mission is to navigate the complexities of China's challenging market and establish the EQE as a premium energy vehicle offering remarkable technological advancements, we aim to increase Mercedes-Benz's market share in the high-end energy vehicle sector during the release of the EQE in the fall of 2022.
Idea
In 2022, Mercedes-Benz made a strategic decision to move away from the traditional product launch event model that typically involves the brand's executives introducing the newest car model to the audience. Instead, we capitalized on China's high preference for AI in products and services, with a staggering 78% of the population embracing this technology. This inspired us to create a virtual, digital spokesperson named Mercedes, named after the girl who played a crucial role in steering Mercedes-Benz towards innovation 122 years ago.
Mercedes played a starring role in a microfilm to introduce the EQE model, highlighting the brand's technological capabilities, and appeared on stage at the Beijing, Chengdu, and Paris Auto shows. She was also active on various social media platforms, interacting with customers at dealerships. With Mercedes' engagement, we were able to shift potential customers' perceptions towards the brand's new energy vehicles as the fusion of technology and luxury.
Strategy
Despite an 11% YoY increase in advertising spending in China's domestic market for new energy vehicles, most brands are overemphasizing technological features and functional advantages leading to intense and vicious competition. However, Mercedes effectively targets high-income consumers with a spending power of at least 400,000 RMB, who prioritize luxurious driving experiences, high-quality interiors, and advanced technology.
This segment is largely comprised of educated individuals residing in first and second-tier cities, who prioritize environmental protection, eager to experience innovative products and services. Furthermore, younger consumers are also attracted to the superior handling and driving experiences of new energy vehicles.
Through various channels, including advertising, Mercedes subtly explores new technology and shares cutting-edge eco-friendly lifestyles, elegantly permeating the hearts of consumers with innovative content. This approach not only sets the EQ series apart from domestic new energy vehicle brands but also resonates with the intended consumer base and creates a lasting impression.
Execution
Despite an 11% YoY increase in advertising spending in China's domestic market for new energy vehicles, most brands are overemphasizing technological features and functional advantages leading to intense and vicious competition. However, Mercedes effectively targets high-income consumers with a spending power of at least 400,000 RMB, who prioritize luxurious driving experiences, high-quality interiors, and advanced technology.
This segment is largely comprised of educated individuals residing in first and second-tier cities, who prioritize environmental protection, eager to experience innovative products and services. Furthermore, younger consumers are also attracted to the superior handling and driving experiences of new energy vehicles.
On August 24, 2022, Mercedes held the EQE launch event entirely within a virtual world, providing viewers with an immersive experience that went beyond traditional car launch events that merely featured brand executives.
This approach increased engagement and boosted attendee participation, allowing everyone to learn about the exciting news and unique features of EQE. In addition to virtual events, Mercedes was also present at on-site events such as the Beijing and Paris Auto Shows, where she interacted with visitors as an event staff member, introducing brand leaders and showcasing the car's features.
Mercedes maintains an active social media presence and shares enjoyable content that resonates with followers, including OOTD (Outfit of the Day) posts and collaborations with the Virgil Abloh concept car, shared the concept of environmental symbiosis from Avatar 2. Finally, Mercedes assists sales staff in dealerships by showcasing car models and related products.
Through various channels, including advertising, Mercedes subtly explores new technology and shares cutting-edge eco-friendly lifestyles, elegantly permeating the hearts of consumers with innovative content. This approach not only sets the EQ series apart from domestic new energy vehicle brands but also resonates with the intended consumer base and creates a lasting impression.
Outcome
With Mercedes in the virtual car launch event garnering a record-breaking 71.8 million online views, making it the best in the Chinese auto industry that year. Moreover, the website received over 103,000 visitors, which is an outstanding accomplishment.
Additionally, the launch sales volume of the EQE model was 412% higher than the average of other Mercedes-Benz EVs, and its monthly sales volume in the EV segment of ¥450K and above was 113% higher than that of competing models. This shows that Mercedes-Benz has gained new momentum in China's EV market, and the brand's reputation for innovation and technology has firmly taken root in the minds of consumers.
Mercedes' exceptional marketing strategies were crucial to the EQ series' success in China's luxury EV market. By showcasing the car's unique features, establishing a strong brand image, and driving impressive sales figures, the EQ series has surpassed China's domestic new energy vehicles.
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