Should Upmarket auto manufacturers also fall for the numbers game?

In an effort to expand their consumer bases, luxury car makers are seeking to attract young buyers who have visions of owning high-end vehicles, but can not 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.

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.

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 car maker has to be conscious of as it markets these gateway cars."

These automakers must also tread with caution by not overproducing or overselling their lower luxury products. Such hype could turn off an upscale, young buyer, said Simon Needham, co-founder at ad agency Attik, San Francisco. "These consumers [already] aspire to get into a BMW or a Mercedes. For these brands, once you've given them a product that is within reach, you don't have to do the weird, wacky stuff to appeal to that crowd.

Source:

Manufacturers these do seem to be unconcerned about the brands they have created and are more interested in the short term gains they are getting in these days of intense competition.