Min Soo Yoo's Blog

I just found a really interesting blog post, Mercedes-Benz Makes a Safe Bet on Teens. Mercedes-Benz is now launching teen-driving schools in United States. I really think it is an interesting b rand extension. The blogger said it would not attract the American teen but would be welcomed by parents. However, I think teens will be also interested.

In my opinion, both, parents and teens, will be attracted to the school more than other competitors. First, Mercedes-Benz is already known brand. They have brand association of safety and luxury. These brand association will influence teen-driving schools. Teen-driving schools by Benz will be more aware and gain image of safety and luxury even before they launched the school. Benz’s driving school will be differentiated from other normal driving school. So both teen and parents will trust the school more and will be popular as it was successful in U.K.

The only problem that I had while I was reading was Benz might get brand dilution. If student from Benz’s driving school have an accident or does not drive safely, it can negatively affect consumer’s perception about already existing brand, BENZ!

On the other hand, I think this brand extension can also strengthen Benz’s image ONLY if students from the driving school drive safely and have lower accident rate than from other driving school. However, it is difficult to do it since there will be a lot of teens attending Benz’s driving school.

In the end, I think Mercedes-Benz driving school will be profitable and popular but Benz should be careful not to brand dilute by educating the teens really well.

Here is the Benz’s safety commercial.