How to create value through price?

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A premium strategy is an approach based on the belief that a higher price means higher quality and prestige. A perfect example is the Mercedes-Benz brand, which is building its position on premium values ​​by offering luxury cars at high prices.

The benefits of this strategy include higher profit margins, as the company generates more profit per unit thanks to high prices. Customers who value quality are more loyal to premium brands, leading to italy phone number data long-lasting customer relationships and stable revenues. As the leader in the luxury segment, Mercedes-Benz is focusing on product development in the most profitable market segments, as demonstrated by its plans to increase premium car sales by around 60% by 2026.

However, the premium strategy also poses challenges . The need to invest in quality is crucial, as the product must meet the highest standards in order to maintain a high price. Mercedes-Benz plans to spend 75% of its investment on the development of luxury models and technological innovations, which requires significant financial resources. In addition, the limited target group of the premium strategy is aimed primarily at wealthier customers, which naturally limits the size of the market.

In a context of increasing competition from young companies offering innovative models at significantly lower prices, Mercedes-Benz must continuously maintain its premium brand image. These activities include not only product development, but also the personalisation of the user experience and sustainable development that is becoming increasingly important for today's consumers. In this way, Mercedes-Benz intends to maintain its leadership in the luxury segment and continue to increase profitability in the coming years.