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Mercedes-Benz Daimler AG, the Maker of Mercedes-Benz Automobiles, Is Planning to to Launch

question 104

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Mercedes-Benz
Daimler AG, the maker of Mercedes-Benz automobiles, is planning to launch a new line of downsized luxury vehicles in the United States by 2012. Daimler has experienced a recent drop in global sales attributed to its product mix that focuses on larger luxury automobiles. With increasing fuel prices and stricter U.S. fuel-economy standards coming down the pipeline, Daimler doesn't want to be left behind. Daimler is behind its competition, though. Its German rivals, Audi and BMW, have been relatively successful in the U.S. BMW"s Mini Cooper, demanding as much as $34,000, has already driven away with some of Daimler's potential sales. While Daimler already offers the Smart car in the U.S., the new offerings will not be going after the same consumers.
-Refer to Mercedes-Benz.Baby boomers have money to burn and will be the primary target for the downsized,luxury vehicles offered by Mercedes. Many of them will want this type of car to feel young again. This group is considered a _____.

Definitions:

Advertising Budget

The amount of money allocated for promoting products or services through various media channels.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Sales Units

The number of individual items or units a business sells within a specific period.

Variable Expenses

Expenses that change in proportion to the activity of a business such as production volume or sales.