Luxury in Motion: How CMO Melody Lee is Steering Mercedes-Benz into the Future

[00:00:01] [SPEAKER_01]: It's incumbent upon us to figure out how we market generationally.

[00:00:05] [SPEAKER_01]: You don't do it in discrete moments only with a person that can buy your vehicle.

[00:00:11] [SPEAKER_01]: You have to balance between the long term of thinking about the next generations coming

[00:00:16] [SPEAKER_01]: up.

[00:00:17] [SPEAKER_00]: To thrive in a rapidly evolving landscape, brands must move in an ever-increasing pace.

[00:00:23] [SPEAKER_00]: I'm Matt Britton, founder and CEO of Suzy.

[00:00:25] [SPEAKER_00]: Join me and key industry leaders as we dive deep into the shifting consumer trends within

[00:00:30] [SPEAKER_00]: their industry.

[00:00:30] [SPEAKER_00]: Why it matters now and how you can keep up.

[00:00:33] [SPEAKER_00]: Welcome to the Speed of Culture.

[00:00:39] [SPEAKER_00]: Up today, we are thrilled to welcome an exceptional leader in the marketing

[00:00:43] [SPEAKER_00]: automotive industry, Melody Lee, who's a chief marketing officer at Mercedes-Benz USA.

[00:00:48] [SPEAKER_00]: Melody, so great to see you.

[00:00:50] [SPEAKER_01]: So glad to be here, Matt.

[00:00:52] [SPEAKER_00]: Absolutely. Such a cool setup you have there.

[00:00:54] [SPEAKER_00]: Do you have the Mercedes-Benz Studio because you do a lot of content?

[00:00:58] [SPEAKER_00]: Like give me the background behind the studio because it's not a normal thing

[00:01:01] [SPEAKER_00]: when I interview podcasts, yes.

[00:01:04] [SPEAKER_01]: No, it's really important to us that we stay in very close touch with everyone

[00:01:08] [SPEAKER_01]: with whom we work.

[00:01:09] [SPEAKER_01]: So whether that's Germany or our dealers, we use a studio to do big webcasts

[00:01:14] [SPEAKER_01]: or meetings to keep those communications lanes very clear.

[00:01:17] [SPEAKER_00]: Very cool.

[00:01:18] [SPEAKER_00]: It's crazy because in a pre-pandemic world doing a podcast like this

[00:01:22] [SPEAKER_00]: in a Zoom-like interface would have not been a normal thing.

[00:01:25] [SPEAKER_00]: And now it's the world we live in.

[00:01:28] [SPEAKER_00]: How do you think the automotive industry has changed in a post-COVID world?

[00:01:33] [SPEAKER_01]: We had this moment during COVID where we couldn't even supply enough cars

[00:01:38] [SPEAKER_01]: for the demand that was out there in the market.

[00:01:40] [SPEAKER_01]: Everybody suddenly had a need for mobility in a way that they hadn't before.

[00:01:45] [SPEAKER_01]: I was in New York City during that time and even New Yorkers who disavowed cars

[00:01:49] [SPEAKER_01]: and said, we'll never need a car again.

[00:01:50] [SPEAKER_01]: We're buying cars.

[00:01:51] [SPEAKER_01]: So you had this enormous demand.

[00:01:54] [SPEAKER_01]: You had all those supply chain challenges that were going on.

[00:01:58] [SPEAKER_01]: Cars were flying off the lots way above sticker.

[00:02:00] [SPEAKER_01]: It was just a really interesting time for the industry.

[00:02:04] [SPEAKER_01]: And at the same time, while all that's happening, we're introducing this new power train,

[00:02:08] [SPEAKER_01]: this new form of electrification in our vehicles.

[00:02:12] [SPEAKER_01]: So I often say that the pace of change over the last 10 to 15 years

[00:02:16] [SPEAKER_01]: has been much more than I would say even over the last 100.

[00:02:20] [SPEAKER_01]: And that's where we are at this moment.

[00:02:22] [SPEAKER_01]: And however, I will say this, Matt, I think that the fixation on powertrains is overblown

[00:02:27] [SPEAKER_01]: when it really comes down to it.

[00:02:29] [SPEAKER_01]: Mercedes-Benz is we need to make the right car with the right powertrain that a customer wants.

[00:02:35] [SPEAKER_01]: We need to give them the choice.

[00:02:37] [SPEAKER_01]: That's where we are at this moment in the industry.

[00:02:39] [SPEAKER_00]: Absolutely.

[00:02:40] [SPEAKER_00]: So let's rewind the clock a little bit to your career journey,

[00:02:43] [SPEAKER_00]: because obviously being the chief marketing officer of Mercedes-Benz is a very prestigious role.

[00:02:46] [SPEAKER_00]: It's an iconic brand and you didn't get there overnight.

[00:02:50] [SPEAKER_00]: What were some of the steps that you've taken along the way

[00:02:52] [SPEAKER_00]: through your career journey that you think were pivotal

[00:02:54] [SPEAKER_00]: and putting you in a position you are now?

[00:02:56] [SPEAKER_01]: Without a lot of risks along the way, there wouldn't have been the rewards that came along with them.

[00:03:02] [SPEAKER_01]: I would say that early on, I put my hand up for some of the most high stakes assignments.

[00:03:08] [SPEAKER_01]: I started my career on the agency side in PR.

[00:03:12] [SPEAKER_01]: And at that time, there's not a lot of people who put their hands up and say,

[00:03:16] [SPEAKER_01]: I'd like to specialize in crisis communications.

[00:03:18] [SPEAKER_01]: But I felt that in any moment it was like dog years.

[00:03:22] [SPEAKER_01]: I would learn more in just six hours than I would learn in six months.

[00:03:26] [SPEAKER_01]: And over a span of nearly a decade, starting my career that way,

[00:03:30] [SPEAKER_01]: I just learned a lot in really intense high stakes rooms, war rooms, parachuting into client

[00:03:36] [SPEAKER_01]: offices to help them manage through a crisis, a financial transaction, whatever it was.

[00:03:42] [SPEAKER_01]: Those were big risks for me.

[00:03:44] [SPEAKER_01]: Many times I got on airplanes not knowing how long I'd stay for a particular situation.

[00:03:49] [SPEAKER_01]: I took CEOs into Congress to testify.

[00:03:52] [SPEAKER_01]: There were just really moments where I definitely was just walking into rooms,

[00:03:55] [SPEAKER_01]: not knowing what was going to happen next.

[00:03:57] [SPEAKER_01]: And I would say in many ways that has paid off because I've adopted the same approach to my career.

[00:04:02] [SPEAKER_00]: And as you've gone throughout your career and you've gone from industry to industry,

[00:04:07] [SPEAKER_00]: how have you been able to kind of immerse yourself in each industry?

[00:04:10] [SPEAKER_00]: Obviously, starting off in the agency world is great because you get to kind of dive in

[00:04:13] [SPEAKER_00]: and out of multiple different categories, which kind of gives you more of a broader

[00:04:17] [SPEAKER_00]: worldview. But then as your career evolved, I see that you spent some time outside of

[00:04:23] [SPEAKER_00]: the auto industry before you dove into the auto industry. So tell us about the steps you've taken

[00:04:27] [SPEAKER_00]: when you've gotten into a world where you really immerse yourself?

[00:04:30] [SPEAKER_01]: I think I've learned this the hard way. If I'm being honest, Matt, I came into the job at

[00:04:34] [SPEAKER_01]: Cadillac actually a while back and I know you had a guest on from that brand recently.

[00:04:40] [SPEAKER_01]: I started in that role thinking I had all the answers and I could probably put people on the

[00:04:44] [SPEAKER_01]: record with you who would attest to this. So I would say I really came in guns of blazin'

[00:04:49] [SPEAKER_01]: say, and I know how to fix this. I can see from the outside exactly what's wrong,

[00:04:53] [SPEAKER_01]: what's needing fixing and how we're going to get there. And that's not the way to do it.

[00:04:57] [SPEAKER_01]: I think jumping industries requires an openness and a willingness to understand why things might

[00:05:04] [SPEAKER_01]: have been done a certain way before you start to say, okay, maybe there's a way we could

[00:05:08] [SPEAKER_01]: optimize and prove, try something new. I think I just never in the beginning took enough time

[00:05:14] [SPEAKER_01]: to do so. And as I've progressed through my career, I've learned the importance of really

[00:05:18] [SPEAKER_01]: slowing down to listen and to understand before coming in with solutions.

[00:05:23] [SPEAKER_00]: So what's different about the auto industry that maybe people don't know versus CPG or

[00:05:28] [SPEAKER_00]: tech or maybe other financial services, other categories that people might jump into for their

[00:05:33] [SPEAKER_01]: career? I love the automotive industry and the automotive business because as a marketer

[00:05:38] [SPEAKER_01]: in this business, you are putting in front of consumers one of the biggest and most

[00:05:45] [SPEAKER_01]: emotional purchases they're going to make. They're probably the biggest one being a home.

[00:05:49] [SPEAKER_01]: And after that, it's a vehicle and if it's a luxury vehicle, sometimes those cost as much as homes.

[00:05:55] [SPEAKER_01]: And you're buying this piece of metal, well now a piece of metal with a lot of computer

[00:06:00] [SPEAKER_01]: software technology behind it that is so precious to people that they end up naming it.

[00:06:06] [SPEAKER_01]: And there's just not that many products. You don't buy toothpaste and name it with all

[00:06:09] [SPEAKER_01]: due respect to my CPG friends. But you buy a car and it becomes something that you

[00:06:13] [SPEAKER_01]: have for a long time. In some cases, it becomes an heirloom that you pass on to the next generation.

[00:06:18] [SPEAKER_01]: There's just so much meaning that's ascribed to a vehicle and it also represents so much,

[00:06:24] [SPEAKER_01]: especially in the American market. It's much more than just a product. It's something that

[00:06:28] [SPEAKER_01]: represents freedom. It represents independence. The American road trip is so iconic as well.

[00:06:35] [SPEAKER_01]: So there's something about the automotive business that is just irresistible in that sense.

[00:06:40] [SPEAKER_01]: And the other thing that I think is really interesting and sets it apart from the other

[00:06:43] [SPEAKER_01]: industries that I've been a part of is a really long product development cycle.

[00:06:48] [SPEAKER_01]: It takes three to five years to develop a car. So as a marketer, you have to think about

[00:06:53] [SPEAKER_01]: building your plans around that in a completely different way than if you're launching

[00:06:57] [SPEAKER_01]: a lipstick, an eyeshadow or an Eames lounge chair like I did when I was at Herman Miller.

[00:07:03] [SPEAKER_01]: So you just have to think differently, change your mindset and plan on a completely different

[00:07:07] [SPEAKER_00]: horizon. Yeah, and also safety, right? Like we're talking right before the pod start at how

[00:07:12] [SPEAKER_00]: I was privileged to get a Mercedes SUV and I have small children and obviously safety is so

[00:07:17] [SPEAKER_00]: important when I remember I first drove the car off the lot. I'm thinking, is this car going to

[00:07:21] [SPEAKER_00]: keep my family safe if God forbid something bad should happen on the road? So even more so than

[00:07:26] [SPEAKER_00]: a home where you're probably not worried about the roof collapsing or a whole being in the

[00:07:30] [SPEAKER_00]: floor though, I'm sure that happens. But much more rarely, auto safety is a real thing

[00:07:35] [SPEAKER_00]: and a real concern. And I know that's been a big pillar of the Mercedes brand over the last several

[00:07:41] [SPEAKER_01]: decades. I would say that it's core to our brand promise. It's what we promise in the quality of

[00:07:46] [SPEAKER_01]: our products. And from a marketing perspective, we take every opportunity we can to talk about it,

[00:07:52] [SPEAKER_01]: promote it, communicate it properly. And one really great recent example of how we're taking

[00:07:57] [SPEAKER_01]: it to the next level, but putting in the context of social responsibility is

[00:08:01] [SPEAKER_01]: we just worked with the publisher Scholastic to bring and you have kids, Matt, so you'll get this.

[00:08:07] [SPEAKER_01]: You'll know exactly what I'm talking about. But we brought to life a Clifford book on car safety

[00:08:13] [SPEAKER_01]: and what's more iconic in the world of kids than that big red dog that he teaches. But we just

[00:08:19] [SPEAKER_01]: debuted this book. It features a car that looks reminiscent of the GLE SUV, one of our most

[00:08:24] [SPEAKER_01]: popular family SUVs. And it is our opportunity to say we represent safety from a product standpoint,

[00:08:32] [SPEAKER_01]: but for that next generation, we're also going to teach them about the principles of safety,

[00:08:37] [SPEAKER_01]: the right car seat, the way that you always need to buckle up or whatever it is. And we're

[00:08:42] [SPEAKER_01]: currently on a five city tour to promote that book and we'll be distributing 30,000 copies of it.

[00:08:47] [SPEAKER_00]: That's a great idea. So speaking of the next generation melody, I know that

[00:08:51] [SPEAKER_00]: for a long time, luxury brands were almost intentionally exclusive of a younger demographic

[00:08:57] [SPEAKER_00]: because maybe they thought if younger people had their brand or their car or whatever it may be

[00:09:02] [SPEAKER_00]: and this would be the similar conversation with America Express recently, then it showed

[00:09:06] [SPEAKER_00]: the luxury consumer that it wasn't really exclusive anymore. But that's sort of changed now. And

[00:09:10] [SPEAKER_00]: now, and I wrote about this in my book Youth Nation that youth culture is really driving

[00:09:14] [SPEAKER_00]: the broader culture and people want to act older in life. And as a result, younger people

[00:09:20] [SPEAKER_00]: driving Mercedes and athletes and celebrities, etc. is actually a good thing for their brand.

[00:09:24] [SPEAKER_00]: And I'm just curious as a luxury marketer now, how you look at that dichotomy of youth versus luxury?

[00:09:31] [SPEAKER_01]: You're exactly right, Matt. Everybody wants to be younger or feel younger or be seen as younger,

[00:09:37] [SPEAKER_01]: but it doesn't really work the other way around. And every good marketer, especially at

[00:09:42] [SPEAKER_01]: a heritage brand, and we've been around for almost 140 years, I think we're the original

[00:09:47] [SPEAKER_01]: heritage automotive brands for sure having invented the automobile back in 1886. It's

[00:09:53] [SPEAKER_01]: incumbent upon us to figure out how we market generationally. You don't do it in discrete

[00:09:58] [SPEAKER_01]: moments only with a person that can buy your vehicle. You have to balance between the long

[00:10:03] [SPEAKER_01]: term of thinking about the next generations coming up. Maybe Gen Z and Gen Alpha are not

[00:10:09] [SPEAKER_01]: quite at the point where they can purchase a Mercedes Benz, but we want them to dream about

[00:10:14] [SPEAKER_01]: the ability to be able to do so. I mean, I'll tell you a quick story. I have a 10-year-old at home

[00:10:19] [SPEAKER_01]: who's obsessed with cars and he has posters littering his walls. McLaren, Porsche, Mercedes Benz, of

[00:10:26] [SPEAKER_01]: course. And this morning, he had me bring in four of his Lego cars that he had built,

[00:10:31] [SPEAKER_01]: and he's so proud of them. They're all Mercedes cars, of course, and he wanted them

[00:10:34] [SPEAKER_01]: displayed in my office. That's why it's important to have things that resonate

[00:10:39] [SPEAKER_01]: with the next generations coming up, be it a Lego set, a poster, the F1 movie coming out next year

[00:10:45] [SPEAKER_01]: in which we'll have a big role. There's this huge rise of motorsports going on right now in the

[00:10:50] [SPEAKER_01]: United States. We have three grand prix here now from Formula One. So we have to think about,

[00:10:56] [SPEAKER_01]: as marketers, how we're capitalizing all these moments to reach the next generation,

[00:11:00] [SPEAKER_01]: even if they can't buy right now, they will one day.

[00:11:04] [SPEAKER_00]: Absolutely. And I think it was in the late 90s Mercedes did introduce the A-class

[00:11:08] [SPEAKER_00]: which right now is about $30,000, $34,000. So it is something that does provide the ability for

[00:11:15] [SPEAKER_00]: more younger consumers with an entry-level purchase that come into the Mercedes Benz fold.

[00:11:21] [SPEAKER_01]: That's right. Yes. And you're exactly right having brought up that point, Matt. It's also about

[00:11:24] [SPEAKER_01]: having the right product portfolio that allows someone entry into the brand. And that's why

[00:11:30] [SPEAKER_01]: CLA and GLA both do quite well for us here in the United States.

[00:11:33] [SPEAKER_00]: So as you continue to build the Mercedes brand amongst your core audience target,

[00:11:39] [SPEAKER_00]: you know, that luxury buyer, what are some of the tactics that may not work with a broader

[00:11:43] [SPEAKER_00]: audience that you're really focused on to make sure that you're hitting all the right notes?

[00:11:47] [SPEAKER_01]: So I think one of the things that is also very important to us as a brand is not just

[00:11:53] [SPEAKER_01]: adding our brand equity to a partner but also putting equity back into society as well.

[00:12:00] [SPEAKER_01]: Let me give you a great example of that. The Masters Tournament is one of the most prestigious

[00:12:05] [SPEAKER_01]: golf tournaments in the world of sport and we've been a presenting sponsor of the tournament for

[00:12:10] [SPEAKER_01]: 17 years. And this year, we took a slightly different approach by bringing in a partner

[00:12:16] [SPEAKER_01]: called Eastside Golf. Eastside Golf, if you're not familiar with them, was started by two

[00:12:21] [SPEAKER_01]: alum of Morehouse College here in Atlanta. They both played on a winning team here.

[00:12:26] [SPEAKER_01]: They started Eastside Golf to bring inclusivity, diversity and access to the sport. Historically,

[00:12:33] [SPEAKER_01]: I don't know if you're a golfer or not. It's not the easiest sport to get into.

[00:12:36] [SPEAKER_00]: Not a good one.

[00:12:37] [SPEAKER_01]: Who is a good golfer? But it's a high barrier of entry to get into this sport. It's difficult

[00:12:43] [SPEAKER_01]: for underprivileged communities to buy a set of golf clubs, gain entry into a golf course,

[00:12:49] [SPEAKER_01]: and really start to begin to play the sport. Any side golf was created to bring these

[00:12:54] [SPEAKER_01]: opportunities. And so we're really proud of our partnership with them that brings more equity

[00:12:59] [SPEAKER_01]: to the game of golf and more inclusivity to the game of golf. We have a duty to do. We don't

[00:13:04] [SPEAKER_01]: get to just put our cars on the grounds of Augusta National and call it a day.

[00:13:09] [SPEAKER_01]: It's also responsible behavior of marketers to then also add something back.

[00:13:14] [SPEAKER_00]: Absolutely. So Melody, in terms of content that Mercedes-Benz produces because they know

[00:13:19] [SPEAKER_00]: that it leans into a lot of its own branded content, what are some of the strategies and I

[00:13:24] [SPEAKER_00]: guess content topics that you found to be most effective for your core audience?

[00:13:28] [SPEAKER_01]: We had a lot of success recently with a campaign that we colloquially call Pick Your

[00:13:32] [SPEAKER_01]: Power Train. But officially it's called the Trinity Campaign for our electric vehicles.

[00:13:38] [SPEAKER_01]: Pick Your Power Train was designed to be a campaign. It ran on air for two months,

[00:13:42] [SPEAKER_01]: but it was a 360-degree campaign that ran below and above the line.

[00:13:46] [SPEAKER_01]: Designed to say to our customer, it's not about electric versus ice or ice being internal combustion

[00:13:52] [SPEAKER_01]: engines for your listeners versus plug-in hybrid electric vehicles. It is about the luxury of choice.

[00:14:00] [SPEAKER_01]: And if you want a Mercedes-Benz, we're just going to have the right vehicle for you. So I

[00:14:04] [SPEAKER_01]: spoke about this a little bit as we were warming up up on this interview. But we have to provide

[00:14:10] [SPEAKER_01]: the right vehicle of choice for our customers wherever they live because conditions are different

[00:14:16] [SPEAKER_01]: everywhere. The electric infrastructure is different everywhere and people's preferences

[00:14:20] [SPEAKER_01]: are still shifting and changing. And the great thing is that there's no other brand out there,

[00:14:25] [SPEAKER_01]: but Mercedes-Benz if I can say this as a plug that has the width of a portfolio that we do,

[00:14:32] [SPEAKER_01]: that has the technologies that we do and have the powertrains that we do. And so this

[00:14:36] [SPEAKER_01]: campaign, I would say featuring Kelsey Asbel from the Yellowstone TV show by Taylor Sheridan

[00:14:43] [SPEAKER_01]: was a great success for us in that regard. We were very successful in communicating that

[00:14:47] [SPEAKER_00]: we have the powertrain of choice for you. Very cool. Yeah, I mean, I could see why a program

[00:14:52] [SPEAKER_00]: like that really appeals to the audience and really touches on the key pillars of the brand,

[00:14:57] [SPEAKER_00]: which is kind of like the needle you want to thread, so to speak, to make sure that

[00:15:01] [SPEAKER_00]: you're being not only effective in entertaining but to tie back to what matters most to

[00:15:05] [SPEAKER_00]: the brand, the drive volume to drive business results. Yes, absolutely.

[00:15:09] [SPEAKER_00]: We'll be right back with the speed of culture after a few words from our sponsors.

[00:15:13] [SPEAKER_00]: So let's talk about the category in general and obviously EV is huge and the shift to electric

[00:15:19] [SPEAKER_00]: is something, or frankly I would have thought we would be even further along by now 10 years

[00:15:23] [SPEAKER_00]: ago and I guess all these things always tend to take longer than what we think they will.

[00:15:28] [SPEAKER_00]: Where is Mercedes-Benz and the industry at large on the spectrum of the shift to

[00:15:34] [SPEAKER_01]: electric vehicles? I think it's safe to say that Mercedes-Benz probably had some of the most

[00:15:38] [SPEAKER_01]: ambitious stated goals when it came to the electric future. However, we also very carefully said that

[00:15:46] [SPEAKER_01]: it would depend on what market conditions were and there are so many factors that go into

[00:15:52] [SPEAKER_01]: you, Matt, driving an electric vehicle if you wanted to. As I just mentioned, the conditions

[00:15:57] [SPEAKER_01]: are different everywhere and they're very different from California to Texas to Wisconsin

[00:16:01] [SPEAKER_01]: to New York and we're very conscious of that. And so we treat the move to the electric future as

[00:16:07] [SPEAKER_01]: a marathon, not a sprint. I think often people think that it was some sort of light bulb on-off

[00:16:13] [SPEAKER_01]: moment where we would just all switch from internal combustion to the electric future.

[00:16:18] [SPEAKER_01]: I think it's two curves kind of moving together and we're watching how those curves are

[00:16:22] [SPEAKER_01]: changing over time. Mercedes continues to do extremely well when it comes to electric

[00:16:26] [SPEAKER_01]: future vehicles. We have six models now out there that we're selling that are fully battery

[00:16:31] [SPEAKER_01]: electric but later this year, we're bringing to market the GLC plug-in hybrid for those who are

[00:16:38] [SPEAKER_01]: not quite ready for the fully electric future but are ready for a plug-in and to give it a try.

[00:16:43] [SPEAKER_01]: So it's kind of the best of both worlds but at the same time, we have millions of cars

[00:16:47] [SPEAKER_01]: out there in what we call the car park. Many Mercedes-Benz that's out there and a lot

[00:16:52] [SPEAKER_01]: of those are internal combustion engine cars and they're still popular for those who want to buy

[00:16:57] [SPEAKER_01]: them. And again, I come back to the point that that means we just have to provide what people need

[00:17:02] [SPEAKER_00]: and what they want. And what do you think is holding up, I guess, the demand from reaching a

[00:17:06] [SPEAKER_00]: tipping point? Is it range anxiety and the infrastructure of charging stations? What do

[00:17:11] [SPEAKER_00]: you think those things that are driving any level of hesitancy with the consumer?

[00:17:15] [SPEAKER_01]: It's still such a new technology. Infrastructure is a huge part of it. I think we've seen

[00:17:21] [SPEAKER_01]: it roll out in varying stages of progress across the United States. I think that's why it's really

[00:17:27] [SPEAKER_01]: important for Mercedes-Benz to do its part. It's why Mercedes has its own high-powered charging network.

[00:17:33] [SPEAKER_01]: It plans on rolling out 2,500 chargers and 400 locations over the next few years.

[00:17:40] [SPEAKER_01]: We're also in a partnership with seven other automakers to establish a charging network as

[00:17:46] [SPEAKER_01]: well. So we look around and we see that we also have to do our part and not just rely on public

[00:17:52] [SPEAKER_01]: entities to do their work or local entities to do their work. If we are to start to drive the future

[00:17:59] [SPEAKER_01]: of electric as we think it is important for us to do as the inventor of the automobile, then we

[00:18:05] [SPEAKER_01]: know we have to help contribute towards the infrastructure as well. So I think that's a big

[00:18:08] [SPEAKER_01]: part of it. Education is a huge part of it as well. I think there's just a lot of still

[00:18:13] [SPEAKER_01]: lack of understanding or knowledge about batteries. What's a lithium ion battery? What does it mean?

[00:18:20] [SPEAKER_01]: How is it different? Can I park it inside? What can I do? So I think that a big portion of the

[00:18:26] [SPEAKER_01]: marketing of electric vehicles is actually educational. Yeah, just getting consumers comfortable.

[00:18:31] [SPEAKER_00]: And it's a big choice if you're leasing a vehicle. So the three to four-year commitment,

[00:18:36] [SPEAKER_00]: I mean, I guess you could technically return it, but people look at it as, am I really ready

[00:18:39] [SPEAKER_00]: for this? And what is my lifestyle and will it support an electric vehicle? And my hope is

[00:18:44] [SPEAKER_00]: my next car is electric. I feel like this was my last non-electric car, and I think many consumers

[00:18:51] [SPEAKER_00]: feel that. So we'll see where we are three to four years ago because as you mentioned earlier,

[00:18:55] [SPEAKER_01]: the rate of change is only accelerating. Let me reassure you as someone who is a little scared

[00:19:00] [SPEAKER_01]: and nervous about driving an electric vehicle, and I have now driven one for the last year.

[00:19:05] [SPEAKER_01]: I drive an AMG EQE SUV. Not only is that car incredibly fun to drive, that instant torque

[00:19:11] [SPEAKER_01]: is something you just can't get in an internal combustion engine with the way that it's powered.

[00:19:16] [SPEAKER_01]: My fears were totally elated as I drove that car over the last year. And yes,

[00:19:20] [SPEAKER_01]: we've taken road trips in it. I failed to mention earlier, and I should mention this

[00:19:23] [SPEAKER_01]: because we actually took advantage of this on our last road trip as a family. Mercedes

[00:19:27] [SPEAKER_01]: has also partnered with Buckeys, and I don't know how much you know about Buckeys. I'm

[00:19:35] [SPEAKER_01]: partnered with Buckeys to install charging stations there where we just announced a partnership with

[00:19:39] [SPEAKER_01]: Starbucks, where you can go in and get a cup of coffee and let your car charge up as well.

[00:19:44] [SPEAKER_01]: And that's going to be along the iPhone corner over in the West. It is much easier than people

[00:19:49] [SPEAKER_01]: think. I think there is a fear of the unknown, and that range anxiety is real. I won't deny that,

[00:19:54] [SPEAKER_01]: but we make it so easy with the technologies we have. With Mercedes, we connect our app.

[00:19:59] [SPEAKER_01]: You can look up exactly where you need to charge on your route, and it works beautifully.

[00:20:05] [SPEAKER_00]: Absolutely. And let's talk about in terms of the adoption curve, obviously, the EV categories

[00:20:11] [SPEAKER_00]: of one level adoption curve. And now we have driverless vehicles, which is something that people

[00:20:16] [SPEAKER_00]: are very fascinated with. And in markets like San Francisco and Los Angeles, there's Waymo,

[00:20:20] [SPEAKER_00]: which is gaining popularity, or it's an Uber-like system that people are jumping in

[00:20:24] [SPEAKER_00]: without a driver. And it's pretty jarring the first time you see it. But the people that

[00:20:28] [SPEAKER_00]: ride in it say, it's great. And they learn to trust it. What is your thoughts on the driverless

[00:20:34] [SPEAKER_00]: vehicle evolution? And when do you think Mercedes is going to really lead into that area?

[00:20:40] [SPEAKER_01]: Well, actually, I'm happy to tell you that Mercedes is ahead of every automaker in

[00:20:44] [SPEAKER_01]: this regard. We were the first OEM to announce level three. So this is the SAEs,

[00:20:49] [SPEAKER_01]: Society of Automotive Engineers Rating System, a level three certified autonomous driving

[00:20:55] [SPEAKER_01]: in Nevada and California. And we launched that at the end of last year. So it's already out there

[00:21:00] [SPEAKER_01]: in two states, and we're working on certification in more states. We also just announced level four

[00:21:05] [SPEAKER_01]: autonomous in China. So we are ahead of the pack in this regard when it comes to autonomous

[00:21:11] [SPEAKER_01]: driving. And I'll tell you this too, I think what is maybe not known to a lot of people is that

[00:21:17] [SPEAKER_01]: a lot of cars out there already have technology that is semi-autonomous. I drove to work today

[00:21:22] [SPEAKER_01]: with level two ADOS that's assisted driver systems. The car drove itself. It changes lanes for you when

[00:21:30] [SPEAKER_00]: you put on your blinker. We just scared the first time it changed lanes for you. There has to be

[00:21:35] [SPEAKER_00]: a moment where you're like, am I really going to trust this car to change lanes for me? Maybe I'm

[00:21:39] [SPEAKER_01]: just too anxious. There was a moment and then once it does it for the first time, you realize

[00:21:44] [SPEAKER_01]: you can trust this vehicle because it's a Mercedes Benz. Just like you trust to keep

[00:21:48] [SPEAKER_01]: your kids safe, you realize after one time that this car is going to drive itself for you and it does.

[00:21:55] [SPEAKER_00]: So how much longer is it going to be until there's more cars without drivers on the road

[00:22:00] [SPEAKER_00]: than there are cars with drivers? And your prediction? If I knew the answer to that Matt,

[00:22:05] [SPEAKER_00]: I would be off on a private island somewhere. Five years, 10 years, 20. Can you give us a range?

[00:22:10] [SPEAKER_01]: I really don't know. And I think it's honestly kind of dangerous sometimes to prognosticate

[00:22:15] [SPEAKER_01]: because then what happens is that they'll say Mercedes Benz got this totally wrong or something

[00:22:20] [SPEAKER_01]: along those lines. And that's just not the truth. The truth is that every new technology

[00:22:24] [SPEAKER_01]: has an adoption curve and that curve is going to go steep and hockey stick for a bit

[00:22:29] [SPEAKER_01]: and then it might flatten and then it might take a life of its own again as infrastructure

[00:22:33] [SPEAKER_01]: develops. And so I think that when I first entered the automotive industry, we were talking

[00:22:37] [SPEAKER_01]: about cars going totally driverless by 2025. I don't think that's going to happen anymore

[00:22:43] [SPEAKER_01]: but we're so very well on our way when it comes to electric vehicles and autonomous cars.

[00:22:50] [SPEAKER_00]: And there's so many factors to your point in terms of what's going to drive that total

[00:22:54] [SPEAKER_00]: comfort and adoption amongst consumers. So it is really hard to predict for sure.

[00:22:59] [SPEAKER_00]: So you'd mentioned earlier in terms of the development cycle and its four to five years

[00:23:04] [SPEAKER_00]: before you start thinking about the next model that you're pushing out and obviously one

[00:23:08] [SPEAKER_00]: technology that has really taken over the lexicon of consumers at AI. What role does AI play in the

[00:23:16] [SPEAKER_00]: automotive industry and how are you looking at AI in terms of your future strategies both on the

[00:23:20] [SPEAKER_01]: product and the marketing side at Mercedes? AI is threaded through every conversation I would

[00:23:26] [SPEAKER_01]: say everything that we do from aiding our customer assistance center to better be able

[00:23:32] [SPEAKER_01]: to service our customers. Let me give you an example as cars get more and more complex and

[00:23:37] [SPEAKER_01]: more software based. It becomes more complex to train our customer assistant agents on how they can

[00:23:45] [SPEAKER_01]: help a customer that needs a quick answer if they call in. AI gives us the ability to access

[00:23:51] [SPEAKER_01]: that information quickly and helps our agents have that at their fingertips so they can help

[00:23:56] [SPEAKER_01]: our customers and serve our customers better. Same thing in the dealerships. AI is driving

[00:24:00] [SPEAKER_01]: a different way of being able to configure shop and buy a car and our dealers are actively

[00:24:06] [SPEAKER_01]: testing a lot of those technologies in store. We are thinking about the integration of AI into

[00:24:12] [SPEAKER_01]: our vehicles. You may have read that Chad GPT is also integrated into Mercedes Benz vehicles as a

[00:24:17] [SPEAKER_01]: beta test. I'm actively part of that beta right now in the car and I can say it's really fascinating.

[00:24:23] [SPEAKER_00]: What are some of the use cases on how you apply that? Your kids would love this if your kids

[00:24:28] [SPEAKER_01]: are like my kids but they love messing with the Mercedes MeConnect system. Did you know

[00:24:32] [SPEAKER_00]: you can ask it to tell you a joke? I knew you could ask Chad GPT to tell you a joke but

[00:24:37] [SPEAKER_00]: you're telling me you can ask your car to tell you a joke? Next time tell your kids or they'll

[00:24:41] [SPEAKER_01]: love it if you do this with them but in the car. Okay. Your GLS system, you say hey Mercedes tell

[00:24:46] [SPEAKER_01]: me a joke but we have already some of that basic software built into our systems but now

[00:24:50] [SPEAKER_01]: we're adding that layer AI to help answer questions or to layer on so one of those use

[00:24:55] [SPEAKER_01]: cases could be asking the system to tell you a little bit more about how the car was built

[00:25:01] [SPEAKER_01]: or something like that or giving you more information about where you're going. Maybe

[00:25:05] [SPEAKER_01]: previously the system could just tell you the address or input the address through voice

[00:25:10] [SPEAKER_01]: recognition but now maybe it'll tell you about what it's like to go to New York City or what's

[00:25:14] [SPEAKER_01]: available there so AI is a big part of the conversation I think again it is one of those

[00:25:19] [SPEAKER_01]: things that we want to treat seriously and think about how it can actually improve the

[00:25:25] [SPEAKER_01]: lives of our users and our drivers and not just do it because everyone's doing it.

[00:25:30] [SPEAKER_00]: Yeah it just makes so much sense in terms of bringing your car to life in a lot of ways.

[00:25:34] [SPEAKER_00]: You were saying earlier people name their cars but now they can actually talk to their cars and

[00:25:38] [SPEAKER_00]: personify it in a lot of ways. Yes absolutely. So as you look at your role as a CMO you obviously

[00:25:45] [SPEAKER_00]: always need to be focused on your team and making sure that you're bringing in the next

[00:25:51] [SPEAKER_00]: group of leaders who can help you because obviously you're not going to be able to

[00:25:54] [SPEAKER_00]: manage such a big brand with some initiatives on your own. What are some of the things that you

[00:25:58] [SPEAKER_00]: look for when bring on younger professionals that you think could be future stars at Mercedes?

[00:26:04] [SPEAKER_01]: I think it's really important for me not to have the ideas necessarily. I think it's

[00:26:10] [SPEAKER_01]: important to champion the ideas of those who are around me and on my team. The people who

[00:26:15] [SPEAKER_01]: work on my team are younger, cooler, much more in touch with culture. They're the

[00:26:20] [SPEAKER_01]: ones that should be coming up with the ideas and then it's my job to help evaluate or ask

[00:26:25] [SPEAKER_01]: the right questions to get to the idea that wins and then enable the idea to actually come to life

[00:26:31] [SPEAKER_01]: and come off the page. That's the role of this job. I would also say that in terms of what we

[00:26:37] [SPEAKER_01]: look for here we look for an ability to see around a corner, to think about the future,

[00:26:44] [SPEAKER_01]: to think creatively, not just about a campaign or about a piece of content or about a partnership

[00:26:50] [SPEAKER_01]: or collaboration but about how a process could be improved. Creativity can take many forms.

[00:26:58] [SPEAKER_01]: I think it's really important for people to understand that if they join the marketing

[00:27:01] [SPEAKER_00]: team at Mercedes-Benz USA. What are some of the things you think young professionals should

[00:27:05] [SPEAKER_00]: be doing to put themselves in the position to be able to see around the corner?

[00:27:09] [SPEAKER_01]: Keep in touch with culture. It doesn't mean that you have to watch every movie or listen

[00:27:13] [SPEAKER_01]: to every album that comes out or whatever it is. But keep a finger on the pulse of what's going on

[00:27:18] [SPEAKER_01]: out there. This is a funny part of my background. I was raised in a very strict immigrant religious

[00:27:24] [SPEAKER_01]: household where I was not allowed any pop culture and I caught myself up in college, don't worry.

[00:27:31] [SPEAKER_01]: But after that I developed such an insatiable curiosity for what was going on around the

[00:27:36] [SPEAKER_01]: world and I think marketers need to have that frame of reference. If you are working as a

[00:27:41] [SPEAKER_01]: marketer or a communicator for a brand, especially one that has to stay relevant,

[00:27:46] [SPEAKER_01]: then that means staying relevant in pop culture or in culture. The best brands are not just staying

[00:27:52] [SPEAKER_01]: relevant. They're creating culture and they're pushing it forward. How do you know that if

[00:27:56] [SPEAKER_01]: you're not in touch with it? So I think that's also very important.

[00:27:59] [SPEAKER_00]: Absolutely. So shifting gears we wrap up here and focusing on you and how you spend your

[00:28:04] [SPEAKER_00]: time. There's a lot of mystique about the CMO role and given how iconic the Mercedes-Benz brand is,

[00:28:12] [SPEAKER_00]: that's even amplified when it comes to you. And I'm just curious in terms of how you spend your

[00:28:16] [SPEAKER_00]: time. What does the pie chart of a day or a week look like in the life of Melody?

[00:28:21] [SPEAKER_01]: We're still in German companies so there's a lot of meetings.

[00:28:25] [SPEAKER_01]: I get the most energy though when I do get to walk down the hall and just see the team

[00:28:29] [SPEAKER_01]: doing what they do best because I can see how much they're creating at their fingertips and

[00:28:34] [SPEAKER_01]: really again my job is just to and I know this has become cliche but it is to remove the obstacles,

[00:28:40] [SPEAKER_01]: stand in their way of creativity and bringing the best ideas to life and smoothing the path for

[00:28:45] [SPEAKER_01]: them to become born. There's not that much mystique I have to say. We just have to be

[00:28:49] [SPEAKER_01]: very confident in being the voice of the customer, returning it always to what we think the

[00:28:55] [SPEAKER_01]: customer needs because marketing may be mysterious to a lot of people but what it is is

[00:29:01] [SPEAKER_01]: acquiring and retaining customers. That's all the deals and we have to remember that by putting

[00:29:06] [SPEAKER_01]: the customer at the center of everything we do. If it's the website that we manage here in marketing

[00:29:11] [SPEAKER_01]: an email that goes out to them, a campaign that runs during college football,

[00:29:16] [SPEAKER_01]: CSR partnership that's out there, we just have to think about what the customer needs.

[00:29:20] [SPEAKER_00]: And I know that what the customer needs obviously changes over time. What are some

[00:29:25] [SPEAKER_00]: of the things that you do to make sure that you have the finger on the pulse of the

[00:29:29] [SPEAKER_00]: customer as you continue to listen to them and obviously drive that long-term loyalty?

[00:29:33] [SPEAKER_01]: Talk to them directly. And not just talk to them directly but spend time with our dealer.

[00:29:37] [SPEAKER_01]: So as you're well aware and maybe most of your listeners are as well, Matt, we're in a three

[00:29:43] [SPEAKER_01]: tier system here when it comes to selling cars in the United States and our dealers are not

[00:29:49] [SPEAKER_01]: just an important they are as important as we are to this puzzle of selling cars and

[00:29:55] [SPEAKER_01]: talking to our dealers and understanding what they're seeing on the ground is really important.

[00:30:00] [SPEAKER_01]: Getting out there, visiting their stores, talking to the customers that are coming in and out,

[00:30:04] [SPEAKER_01]: getting that firsthand knowledge of what's going on with our products and whether or not

[00:30:09] [SPEAKER_01]: our campaigns are resonating, that's really important. Yeah, I mean they're a critical

[00:30:13] [SPEAKER_00]: part of the product and the product experience. I mean they're sort of the first line of defense

[00:30:17] [SPEAKER_00]: if you want to purchase or lease a Mercedes and if you're interacting with them is great.

[00:30:21] [SPEAKER_00]: It's going to obviously give you a lot of tailwinds in terms of making that purchasing,

[00:30:25] [SPEAKER_00]: bringing somebody into the fold. Exactly. Absolutely. So finally here, Melody, I mean

[00:30:30] [SPEAKER_00]: obviously it's not easy to end up where you are and we've talked earlier about some of the risks

[00:30:35] [SPEAKER_00]: you've taken but when you look back at your career there are other things that you focused on

[00:30:40] [SPEAKER_00]: or kind of critical decisions that you've made that allowed you to be such a well-rounded

[00:30:45] [SPEAKER_00]: professional and again put you in a position where you are today. I'll give you one piece

[00:30:50] [SPEAKER_01]: of advice that somebody gave me a long time ago but this was in any meeting and any setting

[00:30:57] [SPEAKER_01]: if you're being asked as a leader to evaluate anything from a memo to an idea to a creative concept,

[00:31:04] [SPEAKER_01]: ask yourself the question, am I making this different or am I making this better before

[00:31:11] [SPEAKER_01]: saying anything? And I thought that was the best piece of advice ever and I've tried to apply

[00:31:16] [SPEAKER_01]: that in everything that I do because that really creates a different culture and environment in

[00:31:23] [SPEAKER_01]: which the best ideas really are shared, shaped and then win. Yeah and it's also about just not

[00:31:31] [SPEAKER_00]: filling the empty void with hearing yourself talk, I think. It also opens up the path

[00:31:36] [SPEAKER_00]: for you to listen more because you're not always ready to just jump in and add something

[00:31:39] [SPEAKER_00]: if you're not improving whatever the conversation is about. Exactly. Absolutely. So finally here,

[00:31:45] [SPEAKER_00]: Melody, is there a quote or mantra that you live by that kind of drives your professional career?

[00:31:50] [SPEAKER_01]: I've said this one a lot but it really does encompass the way that I hope to lead and hope

[00:31:55] [SPEAKER_01]: to continue to lead. My job is to make those around me successful and I need to regardless of

[00:32:03] [SPEAKER_01]: who they are, what level they are, whether they're my peers, people on my team or my boss,

[00:32:08] [SPEAKER_01]: I need to make them successful. If I make them successful, I make the organization successful

[00:32:12] [SPEAKER_01]: in the end and for me, maybe personal success comes as a result of that as well but I don't

[00:32:17] [SPEAKER_01]: worry about that part of it. So I really focus and it's even on my resume to be honest with you.

[00:32:22] [SPEAKER_01]: So I guess it is a quote that I like but I see my ethos as one of making those around me successful.

[00:32:29] [SPEAKER_00]: I love that. Well, I have no doubt you're going to continue to do that in your journey at Mercedes

[00:32:33] [SPEAKER_00]: and I just want to thank you for taking time out of your busy schedule to talk with us today.

[00:32:37] [SPEAKER_01]: Thank you so much, Matt. Appreciate the time. Absolutely. On behalf of Susan and

[00:32:41] [SPEAKER_00]: Adweek team, thanks again to Melody Lee, CMO of Mercedes-Benz USA for joining us today.

[00:32:45] [SPEAKER_00]: Be sure to subscribe, rate and review the Speed of Culture podcast on your favorite podcast

[00:32:49] [SPEAKER_00]: platform. Until next time, see you soon, everyone. Take care. The Speed of Culture is brought to

[00:32:57] [SPEAKER_00]: you by Susie as part of the Adweek Podcast Network and A-Gas Creator Network. You can

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[00:33:22] [SPEAKER_00]: thanks for listening.