Mercedes and the Relaunch of Maybach: Reviving a Heritage Automobile Brand

Anat   Keinan; Klaus  Heine; Marie-Cecile  Cervellon; Sandrine  Crener

Case | HBS Case Collection | June 2019

Mercedes and the Relaunch of Maybach: Reviving a Heritage Automobile Brand

by Anat Keinan, Klaus Heine, Marie-Cecile Cervellon and Sandrine Crener

Abstract

The case traces the growth of Maybach from its origins as a pioneer in car manufacturing to its relaunch by parent company Mercedes Benz AG (now Daimler AG). It covers the relaunch strategy implemented by the German car manufacturer and examines the challenges of reviving a prestigious but dormant brand in an increasingly competitive luxury market. In a fast-paced, globalized and ultra-competitive environment, Mercedes is facing a complex set of challenges and needs to find the right strategy to make the Maybach heritage brand desirable and relevant to today’s demanding luxury customers.

Keywords: heritage brand; relaunch; Brands and Branding; Luxury; Product Launch; Strategy; Auto Industry;

Language: English

Format: Print

19 pages

Educators

Citation:

Keinan, Anat, Klaus Heine, Marie-Cecile Cervellon, and Sandrine Crener. "Mercedes and the Relaunch of Maybach: Reviving a Heritage Automobile Brand." Harvard Business School Case 519-099, June 2019.

Luxury and sustainability are often perceived as incompatible and contradictory. However, as the concept of luxury and our understanding of conspicuous consumption are evolving and need to be revisited—from conspicuous to conscious consumption—the book chapter explores novel research opportunities and investigates how new consumption trends can further promote sustainable and environmentally responsible consumption.

The present research proposes that luxury consumption can be a double-edged sword: while luxury consumption yields status benefits, it can also make consumers feel inauthentic, because consumers perceive it as an undue privilege. As a result, paradoxically, luxury consumption may backfire and lead consumers to behave less confidently due to their undermined feelings of self-authenticity. Feelings of inauthenticity from luxury consumption are less pronounced among consumers with high levels of chronic psychological entitlement, and they are reduced when consumers’ sense of entitlement is temporarily boosted. The effects are robust across studies conducted in the lab and in field settings such as the Metropolitan Opera, Martha’s Vineyard, a luxury shopping center, and the Upper East Side in New York, featuring relevant consumption contexts and participant populations including luxury target segments.

Faculty & Research

Mercedes and the Relaunch of Maybach: Reviving a Heritage Automobile Brand

Abstract

Citation:

More from these Authors