If you’re thinking about rewarding yourself with a fancy new car, consider this:
Instead of paying more than $30,000 for a luxury sedan like the Mercedes-Benz C230, for the same amount you could buy a $15,000 Nissan Altima and a nice boat.
Nissan boldly suggested that idea in a recent advertising campaign that positioned the $14,990 Altima as an alternative to such toney sedans as the Mercedes C230 and BMW 318i.
If buying a compact family sedan such as the Altima instead of a Mercedes sounds like a stretch, even Nissan admits it doesn’t expect Mercedes owners to desert the German luxury brand.
“There’s no delusion they are going to be cross-shopping the Altima. The price positioning is clear,” said John Rinek, director of marketing communication for the Nissan and Infiniti brands.
By using the ads to drive home that the Altima has more horsepower, a roomier interior and bigger trunk than pricey luxury cars, Rinek said Altima comes across as a “smart buy” among shoppers considering the Honda Accord and Toyota Camry.
“The buyer in the $15,000 to $20,000 range is very, very practical and is looking for value, quality,” he said. “Their hot buttons are how well cars are built and the features they have. They see this kind of comparison and they think, it must be a hell of a value because it has a better engine than cars that are way up there.”
Nissan is not saying the Altima is better overall than the Mercedes C230, he added, only “as it relates to the specifics that we point out.”
For Mercedes, being the foil in comparisons with cars such as the Altima is nothing new. One of the first to do so was the 1975 Ford Grenada, which was styled to look like a Mercedes and marketed as a lower-cost American alternative. Several other American- and Japanese-made “Euro sedans” have targeted the German company since.
“We’ve always taken the position that it is somewhat complimentary if they look at our product as the benchmark,” said Ken Enders, Mercedes’ general manager of product marketing.
“For us, it’s almost like being a barometer. When people stop using us for comparisons, that’s when we’re going to be worried.”
Enders shrugs off the Altima ads, saying they don’t damage the image of the C230 or Mercedes.
“They’re two entirely different products. It’s a stretch to compare the two,” he said. “But if some other company wants to spend its money mentioning our product, that’s fine with us.”
Besides, “the shot of the C-Class in the Altima ad is a beautiful shot,” he noted.
Comparing Altima to pricier, more prestigious cars is nothing new for Nissan, either.
When the Altima was launched in 1993 as an “affordable luxury sedan,” Nissan imitated Lexus ads by rolling ball bearings along body seams to show its construction and stacking wine glasses on the engine to demonstrate its smoothness. The Altima was redesigned for 1998, and Nissan is using a similar strategy.
“We were taking on luxury icons from the beginning,” Rinek said. “It’s a continuation of a very successful launch strategy.”
Others argue that point. In a survey by CNW Market Research, only 17 percent of consumers thought the Altima versus Mercedes comparison was fair and 9.3 percent said it would affect their buying decision.
But Nissan’s comparisons raise other issues: What does a $30,000 luxury car have that a $15,000 Nissan, Honda or Ford doesn’t? Are people buying a superior product or paying more for a pedigree?
The C230 has more standard features than the Altima, including side air bags and anti-lock brakes. Side air bags are not available on Altima, and ABS is optional.
But “you can’t pull apart a car and compare it component to component,” Enders said. “If you pull out the air conditioner, the suspension, the sound system and laid out the parts, comparisons of the components aren’t valid.
“It’s how you put it all together in one package. Performance is not just acceleration. It’s how the car feels and sounds. It’s the quality of all the components. It’s being able to build more than just transportation.”
Buyers will pay more for the Mercedes brand because of its reputation for quality, durability and service, he said.
“The brand is a very powerful tool, and it is one of the most recognized in the world,” Enders said. “What develops the perception of the brand is the products. We are constantly under pressure to live up to the brand and make it better. It is the brand Nissan is associating with, not the product.”
Lexus, another frequent target of comparison ads, also takes it as a compliment.
“It’s nice to be held up as the standard when you’re a company that’s been in business only nine years,” said Mark Simmons, national brand strategy manager of Lexus.
Lexus buyers are drawn by the brand name and vehicles, Simmons said.
“Today’s luxury buyer is not only looking for the status of the badge. The brand is a shorthand for the level of quality, the materials used in the car, durability, having the latest technology.”
Simmons likens driving a luxury car to eating at a gourmet restaurant instead of a diner.
“They both have the same nutrition benefit, but how does eating at the fine restaurant make you feel? It’s nice to feel good about yourself. Driving a luxury car does impart some feeling of prestige.”
Lexus and Mercedes say buyers also are attracted by the higher level of customer service they provide. They cite free loaners or pickup and drop-off service when a car is serviced.
“We know that for the affluent customer time is probably the most precious commodity,” Simmons said.
Mercedes pioneered 24-hour roadside assistance and provides it to all owners even after the warranty has expired. Nissan does not offer roadside assistance.
Rinek acknowledged that the “luxury mindset” is part of what draws buyers to Infiniti, Nissan’s luxury division and a rival for Mercedes and Lexus.
“People who are buying a luxury car want that luxury nameplate,” he said. “It has to do with how they feel about themselves. Status is very important to people who buy luxury cars. They’re buying a great ownership experience.”
