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Time will tell, but... Posted by Nick [Email]  (#227) [Profile/Gallery]
(more from Nick) on Mon, 3 Sep 2001 15:13:27
In Reply to: Re: You are all crazy!!!!, Mendel, Mon, 3 Sep 2001 10:28:00 Members do not see ads below this line. - Help Keep This Site Online - Signup |
Going beyond the textbooks of Marketing is real world consumer trends and product diversification. Mercedes already has an established market segment for it's $30k-$100k product line which, unlike Cadillac of the '80's, continues to offer the innovation, safety and prestige sought after by consumers. They'd be hard pressed to raise their brand like VW who had only up to go. By offering a quality product to a different segment of the car market Mercedes can expand sales to a new clientele which has the potential to upgrade into it's other more expensive products in the future. The small SLK sales remain constant even though it is on the low end of the Mercedes line-up. As Scott said, the 18-24 year old consumer is a viable segment of todays market. Daddy's money or not, they're buying a lot of new cars in the $18k-$26k price range.
Mercedes has the money, technology and vision to invest in such a market test, and if the quality, performace and consumer acceptance is there than it could have positive results. The Porsche Boxter is a good example of this strategy. Last year Boxters out sold 911's by 3/1. The BMW/Cooper Mini is another exapmle of a high end brand tapping into the lower market segment. Forcasts show a huge demand for that little car. A short term trend, maybe, but an exciting test of vision nonetheless. Just like the PT Cruiser... try and order one and you'll be on a long waiting list.
Again, only time will tell how consumers respond to the C-Coupe strategy, but with a quality product they may gain a new market share otherwise being exploited by competitors. Saab may have this potential a few years from now for product diversification, like the Sonnet, but that's only if the upcoming new models are succussful and GM allows for a proper (large) budget.
Regards,
Nick
posted by 66.27.1...
, Mon, 3 Sep 2001 12:59:04, Mon, 3 Sep 2001 17:02:36, Mon, 3 Sep 2001 15:13:27 <-- Viewing This Message, Mon, 3 Sep 2001 13:02:59, Sat, 1 Sep 2001 02:59:25, Fri, 31 Aug 2001 20:26:22
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