MSN Money Looks At Sales Of The R-Mercedes Class
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[04/24/2006] MSN Money published an article today taking a look at the somewhat lackluster sales of the Mercedes R-Class "Grand Sports Tourer."
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MSN Money published an article today taking a look at the somewhat lackluster sales of the Mercedes R-Class "Grand Sports Tourer."
The article makes mention of the fact that DaimlerChrysler has been forced to offer dealers $5,000 to move the model, although many dealers opt to pass the money directly to consumers. In addition, the article also points out that thanks to the current crop of subsidized lease offers available for the four-wheel drive minivan, the monthly payments on the $48,775 R-Class are lower than several cheaper Mercedes models.
Despite the struggling sales, Mercedes has continued their commitment to the newly-introduced R. According to the company: "You have got a vehicle that is a whole new segment not only for us but for consumers as well. We are totally convinced that once it has recognition in the marketplace, it is a package that none of the competitors offer. We just need to get people in the car to experience it."
Is this the case? Are consumers worried about entering a new market segment?
I don't think so. I do, however, think the R-Class is the product of a marketing plan gone terribly awry.
After proclaiming the R-Class to be a Grand Sports Tourer, it appears Mercedes' marketing department has fallen victim to their own idea that the R is somehow not a minivan.
This fact has led Mercedes to inexplicably market the R-Class to senior citizens looking for a way to comfortably travel with six occupants... a gross misjudgment of who would actually purchase such a vehicle.
My recommendation, quite simply, is to tell the truth.
By stating the obvious, which is the fact that the R-Class is undoubtedly the finest minivan in the world, Mercedes will be able to recognize and appeal to the R's true market, i.e. those looking for a luxury minivan.
If, however, Mercedes continues to herald the R-Class Grand Sports Tourer as a bold attempt to reinvent automotive history, their delusion of creating a new market segment will follow the R-Class to its grave.
For more info, you can check out the full story on the plight of the R-Class over at MSN Money.
The article makes mention of the fact that DaimlerChrysler has been forced to offer dealers $5,000 to move the model, although many dealers opt to pass the money directly to consumers. In addition, the article also points out that thanks to the current crop of subsidized lease offers available for the four-wheel drive minivan, the monthly payments on the $48,775 R-Class are lower than several cheaper Mercedes models.
Despite the struggling sales, Mercedes has continued their commitment to the newly-introduced R. According to the company: "You have got a vehicle that is a whole new segment not only for us but for consumers as well. We are totally convinced that once it has recognition in the marketplace, it is a package that none of the competitors offer. We just need to get people in the car to experience it."
Is this the case? Are consumers worried about entering a new market segment?
I don't think so. I do, however, think the R-Class is the product of a marketing plan gone terribly awry.
After proclaiming the R-Class to be a Grand Sports Tourer, it appears Mercedes' marketing department has fallen victim to their own idea that the R is somehow not a minivan.
This fact has led Mercedes to inexplicably market the R-Class to senior citizens looking for a way to comfortably travel with six occupants... a gross misjudgment of who would actually purchase such a vehicle.
My recommendation, quite simply, is to tell the truth.
By stating the obvious, which is the fact that the R-Class is undoubtedly the finest minivan in the world, Mercedes will be able to recognize and appeal to the R's true market, i.e. those looking for a luxury minivan.
If, however, Mercedes continues to herald the R-Class Grand Sports Tourer as a bold attempt to reinvent automotive history, their delusion of creating a new market segment will follow the R-Class to its grave.
For more info, you can check out the full story on the plight of the R-Class over at MSN Money.
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