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Mercedes, Audi October sales provide ray of hope for luxury industry

November 4, 2011

Mercedes C-Class helped drive sales

With Audi and Mercedes-Benz both boasting their highest October sales in history, luxury marketers from all industries could stand to learn a thing or two from the rivals.

Both Mercedes and Audi posted sales increases of more than 25 percent year over year last month. The high sales in the luxury auto world may be a good sign for the luxury industry as whole.

“On the Mercedes-Benz passenger cars and trucks side, it was the best month ever since the recession,” said Mike Slagter, vice president of sales at Mercedes-Benz, Montvale, N.J. “We typically always have a very strong fourth quarter at Mercedes and new products and better availability were a big help to us.

“[Additionally], the marketing efforts have never been stronger, between focusing on what makes the Mercedes brand, such as safety and engineering, and the events that we are a primary sponsor of such as the U.S. Open and Fashion Week,” he said. “So we are on a pretty good roll right now.”

Speeding up
Mercedes sold 24,449 vehicles last month, marking last month the highest sales October in the company’s history.

The highest performers during October were the C-Class, E-Class and M-Class model lines, according to the automaker.

C-Class sales were up 87.9 percent year-over-year, due largely in part to the new 2012 model.

The E-Class and M-Class models were responsible for 4,516 sales and 4,091 sales, respectively.

The Mercedes E-Class

Additionally, the 2012 CLS-Class posted a 192.3 percent increase for the month.

“All in all, the market is getting a little better and things seem to be improving, although not as quickly as we would like to see,” Mr. Slagter said. “[But] we are competing really, really well.”

Indeed, luxury automaker competitor Audi also had a very successful sales month.

Audi saw an increase of 25.8 percent in October sales year over year, and sold 10,225 vehicles.

Similar to Mercedes, Audi stated that the release of new models 2012 A6 and A7 contributed to last month’s growth.

For example, A6 sales rose 43.9 percent.

Additionally, Audi TT October sales increased 133.7 percent year-over-year.

“With the brand’s entries in the top premium vehicle segments – the Audi A6, A7, A8 and Q7 – making up more than a quarter of overall sales in October, it’s clear that Audi is on a roll in the U.S.,” said Andrew Lipman, communications manager of Audi of America, Herndon, VA.

“Consumers are not only ready to get back into luxury cars, but are opening their eyes and their wallets to Audi,” he said.

Driving sales
Both automakers pointed to their recent marketing campaigns as fueling the increase in sales.

Audi’s Mr. Lipman pointed to its multichannel A6 campaign that coined the phrase, “making the road a more intelligent place.” The campaign was implemented on television, print and online channels (see story).

The Audi A6 campaign

Indeed, Mercedes also pointed to its TV commercials, bringing to light the M-Class and C-Class 30-second commercial video spots.

Given the success that automakers have seen with location-based and nationwide television advertising, other luxury marketers may want to consider stepping up their TV marketing.

Additionally, there are a few other marketing and public relations strategies that luxury marketers may want to borrow from automakers, according to Ron Kurtz, president of the American Affluence Research Center, Atlanta.

For example, automakers excel in emphasizing the importance of product value and enhancements.

Additionally, after-the-sale service often helps luxury automakers increase customer loyalty and allows automakers to continue pushing branded content, per Mr. Kurtz.

The increase in luxury auto sales may hold a ray of hope for all luxury industries.

“Strong sales of luxury cars are good indicators of potential strength in the sales of other luxury products,” Mr. Kurtz said. “The consumers are similar.

“[It shows] the affluent consumer is feeling more confident about their financial situation and is more willing to spend,” he said.

Final Take
Kayla Hutzler, editorial assistant at Luxury Daily, New York

Kayla Hutzler is an editorial assistant on Luxury Daily. Her beats are automotive, consumer electronics, consumer packaged goods, financial services, media/publishing, software and technology, telecommunications, travel and hospitality, real estate, retail and sports. Reach her at kayla@napean.com.