Mercedes, Volvo, BMW Give 'Lower Luxury' High Priority

[1931Chevy]

http://www.brandweek.com/bw/news/aut..._id=1003641348

September 17, 2007

By Steve Miller

DETROIT -- In an effort to expand their consumer bases, luxury carmakers are seeking to attract young buyers who have visions of owning high-end vehicles, but cannot yet afford to do so, by launching less-expensive "gateway" nameplates. The problem for such companies as Mercedes-Benz, Volvo and BMW, however, is maintaining their lofty images among core consumers while also appealing to a younger, edgier demographic.

To this end, Mercedes C-Class (MSRP starting at $31,975) and Volvo's C30 hatchback ($22,700) have taken opposite strategies in dealing with a category also known as "lower luxury." Mercedes calls this year's launch of its C-Class its biggest in the U.S. The company last week broke its first network TV in five years, "Why?" and "Why?/Performance," via Merkley+Partners, New York. The spots highlight engineering and handling, with no specific overtures to a younger demographic.

"This is not about fancy tricks or flash," said Steve Cannon, vp-marketing at Mercedes, Montvale, N.J. "We're telling the Mercedes-Benz story with a good targeted plan, with no [surprises] up our sleeve."

The seven-week launch includes a significant Web presence and a flurry of ride-and-drives. The C-Class targets men and women 30-45 with an average household income of $110,000. Mercedes spent $204 million on ads in 2006 and $75 million January-June 2007, per Nielsen Monitor-Plus.

Meanwhile, Volvo is airing 16 three-minute humorous Webcasts, Mr. Robinson's Driving School, to support the C30's October launch. The episodes, on MSN.com, feature Craig Robinson (from NBC's comedy The Office) "teaching" young adults how to drive a C30. Reveille, Los Angeles, which produced the series, handles marketing.

Volvo's irreverent approach could hurt the overall brand, though, if traditional current and potential owners see the automaker diluting its product, said analyst Wes Brown of auto marketing firm Iceology in L.A. "Something like this can cause a disconnect," he said. "Current owners are going to see this as a reflection of the brand they are driving. That's what any luxury carmaker has to be conscious of as it markets these gateway cars."

Volvo said a typical C70 driver likely wouldn't see the Internet ads for the C30. "We did the majority of our advertising on the Web because that's where the C30 customer lives," said James Hope, a rep at Volvo in Irving, Calif. The C30 push seeks males 28-38 making under $100,000. Volvo spent $105 million on ads in 2006.

[Bravada]

Volvo's irreverent approach could hurt the overall brand, though, if traditional current and potential owners see the automaker diluting its product, said analyst Wes Brown of auto marketing firm Iceology in L.A.

Excuse me? Volvo barely attained their "premium" status a moment ago, and the C30 is a Volvo no less than any other model in their lineup... Mercedes is another thing, with awful-looking and unreliable cars, as well as A- and B-Classes...

That said, a good strategy of avoiding brand dilution is building a Wartburg - click below to see!

[mini1]

If Mercedes would just go back to building the real Benz's again we would be all set! Why not bring the 190 series back as the entry level Benz? Get your electronics in order and stop making unreliable cars.

[Bravada]

Anything but the 190 please!



Nothing said "poor man's Mercedes" better than the 190, with the emphasis on "poor".

Even a Wartburg would be a better idea! See for yourself!

[cawimmer430]

Originally Posted by Bravada

Anything but the 190 please!



Nothing said "poor man's Mercedes" better than the 190, with the emphasis on "poor".

Even a Wartburg would be a better idea! See for yourself!

Oh please. There's was nothing wrong with the 190-Series.

At that time Mercedes needed a car that would attract younger and financially less powerful buyers in order to give them the taste of what it's like to be a Mercedes owner. The 190 was a huge success for the brand. It was just as safe and comfortable as a W126 S-Class at the time, except more economical.

It annoys me when people badmouth the 190-Series without really knowing anything about it.

And FYI the A and B-Class are rated as very reliable here. There's nothing wrong with an A or B-Class in Europe at all. Heck, these cars are even sold in Japan - where buyers are probably more image conscious than in the USA. To add to that, Mercedes sells some of their trucks (Atego, Econic, Actros etc.) in Japan and the Sprinter - and still the Japanese have a huge respect and desire for the MB badge.

[Bravada]

And FYI the A and B-Class are rated as very reliable here.

I don't know - maybe people can't operate them or what, but every long-term test I've read (and a few "short" ones) reported numerous build quality and reliability issues (moonroof not waterproof, numerous parts generating rattles and noises, flimsy controls, electrics and even engine failures). Taxi drivers who drive a lot of those in Warsaw curse them heavily.

There's nothing wrong with an A or B-Class in Europe at all. Heck, these cars are even sold in Japan - where buyers are probably more image conscious than in the USA. To add to that, Mercedes sells some of their trucks (Atego, Econic, Actros etc.) in Japan and the Sprinter - and still the Japanese have a huge respect and desire for the MB badge.

I don't think the Japanese public at large is aware of the A- and B-Classes. I would expect them to sell in really minuscule numbers there. The trucks are a different thing - Mercedes has a long tradition of building very good, reliable trucks, so they are a part of the Mercedes heritage. But ask yourself what happened to the Vaneo...

At that time Mercedes needed a car that would attract younger and financially less powerful buyers in order to give them the taste of what it's like to be a Mercedes owner. The 190 was a huge success for the brand. It was just as safe and comfortable as a W126 S-Class at the time, except more economical.

First off, the 190 looked hopeless. It has the same "we didn't have time for styling, we just cobbled the parts together" looks as the W124, but applied to an even less flattering size. I also don't believe it attracted that many younger buyers - to me, 190 drivers were Rentner who always wanted a Mercedes, but couldn't afford one with their retirement money, and then came the 190 to fulfill their compromised dream.

The car that actually did something to attract younger buyers to Mercedes was the A-Klasse actually. Though not many stayed with the brand after the experience, I've heard...

[Toto]

I love the 190. A friend bought one with over 200.000km on the odo and the car felt like new. No rattle, quit and even sporty (thus I felt it at that time).

But my first and only contact with the (old) A-Klasse was a disaster. My company had one for only a year and the car broke down several time (suspension, brakes, engine and endless rattle inside and outside). A typical Montagsauto. All other Mercedes (B-/C-/E-/S-Klasse) we have are reliable, only the M-Klasse had some problems.

[guitarlix]

The 190s are built like tanks. Great cars!

I'm not too impressed with MB's "lower luxury" offerings. The new C-class interior is really cheap.

[ChevroletRevived]

Originally Posted by guitarlix

The 190s are built like tanks. Great cars!

I'm not too impressed with MB's "lower luxury" offerings. The new C-class interior is really cheap.

It certainly didn't look very impressive in the photos. Were you able to sit in one yet? I saw the exterior of the C-Class in person. It was OK I guess. Better then the last one, definitely. You just know that in 2 years it's going to be everywhere though, like the current car.

[Bravada]

The 190s are built like tanks.

And look the part...

The new C-class interior is really cheap.

And rather disgusting...

[Quickening]

I was walking to my car in the school parking lot and on teh street was this brilliant red car. And at first I was like what is that? But it was the new C-Class. I was rather disapointed in the look. Once I got in my car, and I drove through the parking lot I found it and just kinda stopped and looked around. The rear is pretty ugly. The lower bumper area is just sticking out and the rest slopes back into the car. meh. The side mirros are tooo chunky for this car.

I was severly disapointed :/

[genjy]

Most PR shots and magazine photos don't show the side profile of the new C-Class.

The new C-Class has this weird, distorted proportion and shape.

[Quickening]

And see the rear doesn't look that bad in the picture, but in RL its more apparent. Meh I was just disapointed. And the big side crease going on..is sure nice except that the line goes no where in the front. Just kinda dies halfway into the wheel well. Just odd.

Anyways, I was looking at the girl driving more than the car. Hot.

[DuSpinnst]

Originally Posted by Toto

I love the 190. A friend bought one with over 200.000km on the odo and the car felt like new. No rattle, quit and even sporty (thus I felt it at that time).

But my first and only contact with the (old) A-Klasse was a disaster. My company had one for only a year and the car broke down several time (suspension, brakes, engine and endless rattle inside and outside). A typical Montagsauto. All other Mercedes (B-/C-/E-/S-Klasse) we have are reliable, only the M-Klasse had some problems.

Montagsauto... I haven't heard that in a long time!

[Bravada]

Originally Posted by genjy

Most PR shots and magazine photos don't show the side profile of the new C-Class.

The new C-Class has this weird, distorted proportion and shape.

You're so right!