Car crisis and renewal: how Mercedes succeeded with the A-Class

摘要

In mature industries, downward vertical extension is now a popular strategy, especially for automobile manufacturers who want to expand their consumer bases and avoid competition in higher market segments. The authors analyze the story of the Mercedes-Benz A-Class car from inception to full acceptance, including a crisis along the way. This case study suggests that as top executives consider the trade-offs inherent to a down-market strategic move, marketing managers and their agencies need to participate fully in the plan to maintain the brand image while enticing a new customer segment.