With the release of the 2014 CLA compact sedan, Mercedes-Benz has broken into new ground by offering a luxury car with a starting price under $30,000. While Mercedes is worried that a cheaper model would put a blemish on its prestigious brand, the German automaker is betting the risk is worth the reward.
With the CLA, Mercedes is able to increase its consumer base by specifically targeting younger, less affluent consumers. Mercedes is creating brand loyalty among them, in hopes that consumers will switch to a higher end car as they move up the job ladder.
Sales for Mercedes has risen 6.7% during September, and they are bound to increase even more because they are building their brand image by forging relationships with consumers as early as possible. Mercedes is also the first luxury car brand to release this type of model, and based on Ries’ and Trouts’ product positioning, that automatically gives them the advantage of being first onto the market and into the consumers’ mind.
If Mercedes is able to target less-affluent consumers, as well as maintain the pristine reputation of the brand, then Mercedes is looking at a wealth of customers from all income levels. Cheap, luxury cars has the potential to be revolutionary, and Mercedes would be reaping the rewards of being the first to offer them.
Sleek, modern and stylish; all for the base price of a mere $29,900.
2013 Mercedes-Benz CLA Super Bowl Commercial
https://www.youtube.com/watch?v=gu8aT6bcjFY
Sources:
Stock, Kyle. “Mercedes’s Lower-Priced Sedan Draws Luxury Buyers on a Budget.”Companies & Industries. BloombergBusinessweek, 02 Oct. 2013. Web. 03 Oct. 2013.<http://www.businessweek.com/articles/2013-10-02/mercedes-cla- sedan-with-budget-price-outsells-high-end-models-in-u-dot-s-dot-debut>.