The luxury car company, Mercedes-Benz, has announced that it will be marketing an affordable car for less-affluent buyers. The CLA Sedan (price starts at just $31,000), which is marketed straight towards more middle-class populace, is set to be a hit in the general automobile market.

Although the new marketing strategy of being inclusive to less-affluent populace is hailed positively in perspective of simply increasing sales, I believe that this can really diminish the company’s image. Much similar to other luxury brands, Mercedes-Benz is a brand of exclusivity. As much as the pricey automobiles it makes are a barrier for the company to broaden its target audience, they are also the crucial factor of the company’s ability to maintain a stable relationship with its core high-class customers. In producing less-costly CLA250, Mercedes-Benz is risking diminishing the desirability and significance its cars otherwise possess. Ultimately, Mercedes-Benz may not be facing the challenge of successfully launching it’s new affordable model, but facing the challenge of maintaining it’s majesty as one of the most luxurious car brand of all times.

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

Figure 1:

http://www.caranddriver.com/news/2014-mercedes-benz-cla250-photos-and-info-news