The luxury automobile company Mercedes recently launched it’s new sedan, CLA 250, with a starting price under $30,000.

The CLA is an all-new model in an all-new segment for the automaker. Now you can get into a Mercedes for the price of a well-equipped Honda Accord.

“We weren’t sure how luxury buyers would react.” said an analyst for Kelley Blue Book.

The price of this new model of Mercedes is much more affordable relatively to the other models of this luxury brand. However keep up with the affordable market is a threatening thing for luxury car company. One of the reasons for that is that their Blue-chip customers’ opinions about the company have a potential to get damaged and this would worsens brand’s image and respect directly.

On the other hand, CLA 250 is calling for the new customer segment which is young drivers. With the aid of the Super Bowl advertisement, they clearly show that they are especially calling out young-male drivers. The famous singer, Usher and sexy actress Kate Upton are appealing the targeted audience. So one of the biggest advantage of the affordable price would be the fact that they will start to create customer loyalty on young people.

Sources

http://www.businessweek.com/articles/2013-10-02/mercedes-cla-sedan-with-budget-price-outsells-high-end-models-in-u-dot-s-dot-debut