Luxury has traditionally been seen as something exclusive, but that definition is changing, according to Mercedes-Benz US CMO Melody Lee.
“In the past, there’s been a certain inaccessibility to luxury,” she tells Marketing Week.
That’s something she believes is changing with new generations and more diverse communities coming into the luxury market. For Mercedes-Benz, it’s absolutely essential that these new luxury consumers see themselves represented by the brand.
“It’s not about being woke or being perceived a certain way, it’s about business strategy and business growth for Mercedes in the United States,” she says.
The vast majority of population growth within the US is coming from ethnic minority communities, she notes. Indeed, it’s been projected from the US census that by 2045, people from ethnic minority backgrounds will become the majority.
Luxury has traditionally been seen as something exclusive, but that definition is changing, according to Mercedes-Benz US CMO Melody Lee.
“In the past, there’s been a certain inaccessibility to luxury,” she tells Marketing Week.
That’s something she believes is changing with new generations and more diverse communities coming into the luxury market. For Mercedes-Benz, it’s absolutely essential that these new luxury consumers see themselves represented by the brand.
“It’s not about being woke or being perceived a certain way, it’s about business strategy and business growth for Mercedes in the United States,” she says.
The vast majority of population growth within the US is coming from ethnic minority communities, she notes. Indeed, it’s been projected from the US census that by 2045, people from ethnic minority backgrounds will become the majority.
We have to be speaking to them in a way that does not pander, but in a way where they can see themselves as part of the brand.
Melody Lee, Mercedes-Benz
When it comes to building a strong brand for generations to come, speaking to that growing audience is essential.
“It’s a very simple marketing equation, where’s the growth going to come from? Who is that person, and how do we speak to that person with the right messages in the right place at the right time?” Lee says.
The past 12 months has seen lots of much documented backlash against so-called “woke” marketing, particularly in the US. Luxury car brand Jaguar came in for heavy criticism after revealing its controversial rebrand last year. President Donald Trump even weighed in on the discussion this month when the brand’s parent company appointed a new CEO, terming the Jaguar campaign “stupid” and “woke”.
From Target to Bud Light, plenty of brands have been the subject of criticism and even boycotts from American consumers for perceived wokeness. Both Bud Light and Target saw sales decline following their respective woke controversies, evidence that backlash can hit brands’ toplines as well as their reputations.
While there is a balance to be struck, Mercedes-Benz is not looking to be inclusive because it’s “trendy”, Lee says, but rather because it’s good for business.
Product at the centre
Mercedes-Benz is clear that it makes sense to speak in a way that appeals to audiences that may have felt excluded from the luxury sector in the past, and it is also clear on how it wants to communicate with those groups.
“We have to be speaking to them in a way that does not pander, but in a way where they can see themselves as part of the brand,” Lee says.
While it’s speaking to new audiences, Mercedes-Benz still looks within its own 140-year history for storytelling, with Lee stating there’s plenty of gold it can “mine” when reaching out to different audiences in its advertising.
The brand is seeking to broaden its appeal but not lose sight of its product focus.
“The thing that will always be true about Mercedes-Benz is that the car is at the centre of everything we do,” Lee says.
“For example, telling the story of the Mercedes-Benz that my father bought as an immigrant, as a symbol of success, as a marker of achievement, as an “I’ve made it” moment, those are the stories we tell through the lens of our products,” she says.
Changing luxury codes
With an eye on future growth, Mercedes-Benz is looking to engage younger audiences.
Many young people may not be in a position to buy into a luxury brand like Mercedes just yet, but Lee says the brand is focused on ensuring that when they are, they see the brand as being desirable.
Luxury “codes” are changing, she notes, particularly for younger generations.
“The younger generations are showing us that their codes for luxury are very different, they don’t want logos everywhere, necessarily,” she says. “There’s a more of a push towards quiet luxury.”
Reaching younger audiences also means thinking about media mix carefully. The business is looking to be where its consumers are. When thinking about younger people, those audiences are much less likely to be watching traditional channels like broadcast TV, and instead on short-form and social channels like TikTok.Mercedes-Benz CMO on luxury brands earning their ‘intangible premium’
“We need to meet our consumer where they’re looking,” says Lee. “It doesn’t matter where they are in the marketing funnel, they could be at the very top of it, still trying to learn, they could be at the very bottom of it, ready to purchase, we’ve got to meet them where they are.”
The brand has also got to “crosscheck” that with the generation someone is from and how they’re consuming media to ensure it meets them in the right places. The brand utilises lots of data to help it make those decisions.
Mercedes-Benz is not eschewing traditional media, however.
“We still need to stop some eyeballs during really big moments of live television watching, because that’s still a very effective way to generate awareness,” Lee says.
