Sunday, January 6, 2013

Mercedes – downgrading the elusiveness




Everyone feels the pinch of the downturn. Luxury brands feel them the most since they are conspicuous consumption. Luxury brands chose the communication of conspicuous consumption to stand apart and be a luxury brand. The secret of a luxury brand is to always remain aspirational and elusive. And yet have a target market to generate your profits. Louis Vuitton, Hermes, Gulfstream, Porsche, Gucci, Rolex, Jimmy Choo among others are brands who stand for absolute luxury.

These brands command a premium for the badge value. And the only way it is lost is if it becomes ubiquitous and thus loses the aspirational value. There is always the pull factor associated with such brands. They should never go for push. Discount, sale, freebies, value-for-money should never be associated with luxury brands. Mercedes was most luxurious known brand in India for a long time before Indians started knowing about BMW, Ferrari, Porsche, Rolls Royce. Having already lost this tag, Mercedes is doing itself no good by having the ad as above. Zero insurance cost, zero maintenance cost and zero interest cost seems like an ad by any of the other mid-level car brands such as Maruti or Tata or Hyundai. Anyone owning a Mercedes wouldn't just have that car but at least one more. Such costs wouldn't matter to the targeted audience. Reduction in these costs wouldn't be the deciding factor or compelling factor to buy a Mercedes. Although it seems that this ad hasn't been done by Mercedes but by the Distributor, Mercedes shouldn't have allowed it. Building a luxury brand takes eternity but losing it doesn't take more than an ad like this one.

Source: Times of India – Bombay Times – January 06, 2013 

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