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Mercedes-Benz Consolidates Global Marcomms with Omnicom

The success of a business firm revolves around its marketing communication, which refers to the use of different marketing channels and tools to communicate with target markets. Also known as marcomm, it plays an important role in affecting a consumer’s purchase decision. Communication is vital to marketing because it brings everyone on the same page, by helping in moving products & services, and ideas from manufacturers to end-users and by building and maintaining relationships with customers, prospects, and other important stakeholders in the company.

Recently, the German luxury car manufacturer, Mercedes Benz consolidated its global marketing communications agencies, by awarding the American global media, Omnicom Group Inc., its account. Omnicom is headquartered in New York City and provides services in four disciplines: advertising, customer relationship management (CRM), public relations, and specialty services. These services mainly include media planning and buying, digital and interactive marketing, sports and events marketing, field marketing, and brand consultancy. Being recognized as one of the largest advertising agencies in the world, this company has a manpower of 77,000 employees with a network in 100 countries.

In the recent partnership, the advertising agency has created a unit called Team X, which will handle the brand and marketing activities of Mercedes, across all phases of the customer journey, which are mainly Awareness, Consideration, Purchase, Retention, and Advocacy. Team X will officially begin its operations in January 2022 and will be responsible for Mercedes business units in about 40 markets, highlighting the major hubs in China, Europe, and the US. With this, the team will look into adopting creative strategies to strengthen brand communication. Marketing strategies will also focus on creating a new style-defining appearance, to enhance brand-defining activity worldwide. The latest strategy will also provide Benz, a superior customer value among its customers. It will not only expand the product, but will also provide more competitive prices, increase communications within its target market, and improve customer service.

The new, fully integrated unit, will focus on providing consistent customer communication. Customer or client communication is important to establish trust between clients and businesses, as trust plays a major factor in maintaining brand loyalty. Apart from this, the vision of Team X is also to re-orchestrate all of the communication content across all channels of the German manufacturer, to deliver a data-driven, personalized, and seamless brand experience for customers at all touchpoints worldwide. The strategy which once focused on providing a safe and luxurious experience will now plan to create a more lifestyle-oriented and fun-loving approach, to showcase the energetic side of the brand.

The creation of Team X includes the acquisition of European agencies: Antoni, a Berlin-based, digitally-native advertising agency, and Oliver Schrott Kommunikation (OSK), a leading German public relations and communication agency, both of which have already worked with Mercedes-Benz. The group will be led and driven by Mercedes-Benz’s Vice President of Communications and Marketing, Bettina Fetzer to take it to the next level. Berlin-based, Antoni, was launched in 2015 by André Kemper, managing director and chief creative officer, and Tonio Kröger, as a German manufacturer, its founding client. Today the company has more than 170 people working with it, including brands such as Vodafone and Kärcher. On the other hand, OSK was set up in 1993, in Germany. This leading communications agency has operations across Germany, China, and the US. With the acquisition, OSK will now operate as a stand-alone brand within Omnicom Public Relations Group, under CEO Oliver Schrott. The agency's client portfolio includes prominent brands such as Harman, Siemens, and ZF.

This new marcomm strategy will prove to be a ladder for next-level development, as mentioned by Oliver Schrott, CEO of OSK.




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