Mercedes Benz Luxury Market

You often don’t see luxury brands include entry-level priced goods in their product categories, but Mercedes Benz has set a trend that other automobile companies may soon follow. As we all know Mercedes Benz is closely tied to the fashion industry, sponsoring Fashion Weeks yearly shows, so it wouldn’t be a surprise if luxury apparel markets were soon to follow this trend as well.


Mercedes Benz is a German manufacturer that produces luxury automobiles, buses, and trucks. The company was founded in 1926 by Karl Benz and headquartered in Stuttgart, Germany. Their lines expanded into the US market in 1957 and have had constant growth, with factories in over 25 countries. Mercedes Benz is one of the oldest automobile makers with over 200 models made. These models are categorized into Sedans, Coupes, SUVs, Wagons, Convertibles, and Roadsters. Their new entry-level model, the 2014 CLA250 is one that I want to focus on in this article.

Mercedes Benz offers their automobiles at a price point starting at $35,800 to $208,000. Their newest model, the 2014 CLA250- Class Coupe has a starting price of $29,900. The car features a new design with spacious seating, a newer and more powerful engine, and advanced technology that includes a navigation system as well as a traffic detector. Below are pictures of the exterior and interior features of the car.


So now that we see that this new Coupe has features just as good as its other high end products, what will steer customers to purchase higher priced items and what tactics are Mercedes taking so that it won’t mislead its target consumers and lose the value of its brand with a lower price point?

Luxury Daily states that, “Entry-level products help luxury brands establish life-long connections with consumers at a young age.” Mercedes Benz definitely targets a younger and newer market with their sporty, stylish and technology driven CLA250. With a price point that competitors can’t compete with, Mercedes wants to have their newly targeted audience grow with them so that they can create long lasting relationships with this new audience. When this audience’s incomes rise they’ll already have a relationship with Mercedes and will tend to buy more of their higher priced automobiles after their initial purchase. Mercedes focuses more on the long-term benefits of this newly marketed car than the sales of now. Luxury Daily states, “The millennial generation is a crucial target for fashion marketers as more brands revamp their strategies to gain new brand enthusiasts from this segment.” This statement can be used in all realms of the luxury market because luxury automobiles are a type of fashion that consumers will continue to make as a commodity.

With Mercedes brand history, value, and loyal customers, it won’t be hard for them to market new automobiles that are targeted at younger audiences while still retaining its older, more established audience. As long as Mercedes uses their style and innovation, they will be able to please both crowds and won’t diminish their brand’s value or image. With their new marketing strategies, Mercedes will always be a luxury brand that will be hard to compete with. Hopefully I’ll be able to get my hands on a CLA250 in the near future and become a loyal customer to Mercedes as well.


Works Cited

“CLA-Class.” Mercedes-Benz USA. MBUSA, n.d. Web. 17 Oct. 2013.

Ewing, Steven. “2014 Mercedes-Benz CLA250 Is an Entry-level “style Rebel”” Autoblog. AOL Autos, 13 Jan. 2013. Web. 17 Oct. 2013.

Shea, Erin. “Entry-level Products Can Attract Future High-end Luxury Consumers.” Luxury Daily RSS. N.p., 12 July 2013. Web. 17 Oct. 2013.

Images Cited

“CLA-Class.” Mercedes-Benz USA. N.p., n.d. Web. 17 Oct. 2013. <;.
Russo, Jaci. “Steven’s Ad of the Week: Mercedes Benz.” Russo RSS. N.p., 25 July 2012. Web. 17 Oct. 2013.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s