Mercedes-Benz has released a new sedan, called Daimler, with a starting price under $30 000. Mercedes is using positioning by getting into the minds of their target audience. There upcoming ads are aimed towards a younger generation with a lower income. They are investing a lot of money to promote sports illustrated model Kate Upton in there new super bowl ad. I think advertising Kate Upton was a good marketing choice, because Mercedes is appealing to a young male audience.

(Earl 2013)

The advantage of making a more affordable car is that Mercedes can create customer loyalty at an early stage. When the younger target market furthers their careers, and earn a higher income, they can buy a more lucrative car from the company. Although this may seem like a good idea, there are some risks involved with taking a luxury car company and dipping into a lower priced market. Mercedes is at risk for loosing a pristine brand image and this could cause a decrease in sales from consumers who have more disposable income. However, it looks like Mercedes lower price, has not affected there image of wealth. Since there sales were up 6.7 percent in September and 12.2 percent in the first nine months of this year. (Stock 2013).

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Source

Earl. (n.d.). Video: Kate Upton Seduces the 2014 Mercedes-Benz CLA. GTSPIRIT – Daily Supercar and Tuning News. Retrieved October 3, 2013, from http://www.gtspirit.com/2013/01/25/video-kate-upton-seduces-the-2014-mercedes-benz-cla/

Stock, K. (n.d.). Mercedes CLA Sedan, With Budget Price, Outsells High-End Models in U.S. Debut – Businessweek. Businessweek – Business News, Stock market & Financial Advice. Retrieved October 3, 2013, from http://www.businessweek.com/articles/2013-10-02/mercedes-cla-sedan-with-budget-price-outsells-high-end-models-in-u-dot-s-dot-debut#r=hpt-lst