ABSTRACT
A billboard above a busy urban freeway depicts the Mercedes M-Class for around $30,000. TV commercials for the car have hip, edgy photography and music that is more Dave Matthews than Amadeus Mozart. In an effort to appeal to a younger, less affluent buyer, Mercedes has repositioned its product to reflect more of a metrosophisticate than a luxury profile. Mercedes has also introduced models that are smaller and less expensive than the company's traditional cars, and are meant to sharply alter customers' perspectives of the kinds of vehicles that Mercedes produces. In an effort to expand its market base and attract a more price-conscious customer, Mercedes plans to introduce its A-Class crossover vehicle in 2006 with a price tag of about $24,900.
