BMW fails the test with the 1-Series while Mercedes catches up

By now we’ve all seen the ridiculously way-too-wordy print ads for the new BMW 1-Series. The TV buy is minimal, and BMW is instead trying to garner interest via social networking  sites like Facebook. It also claims that this is its biggest Web buy yet, with nearly 50% of it's spend going to the Internet.
This is, presumably, to nab some of those younger buyers with less cash.
One problem, and this is a big one – the 1-Series is no bargain and fails miserably in its allure to younger buyers compared to the entry level offerings of brands like Volvo with its snappy C30 and Mercedes venerable C-Class offerings.
The Web has given luxury brands a venue to ply its smaller vehicles, but if someone has the time to engage in such simpleton endeavors like a “design your own car,” the chances are they don’t have the cash for a 1-Series. And it doesn’t come cheap.
While an uncritical look at the pricing may find that, sure, the 1-Series has a relatively low base price, Car and Driver recently crunched the numbers and found that “The price spread from a base $29,375 128i to a larger 328i is $6700, and the $35,675 turbo 135i is just a $5900 saving over a 335i coupe.”
Further, the 135i, with a few features, comes in “at a breathtaking $42,895 and still not at full froth…just $5400 less than the comparably optioned 335i. Some back-of-the-napkin calculations on a 36-month lease put the monthly payment difference at $90 to $100, assuming all terms are equal. The world may have tilted, but BMW dealers will need well-lubricated tongues to steer buyers into the 1-series.”
It was crucial that BMW come out with a strong campaign for the 1, because there aren't going to be a lot of them on the road, which is huge for selling these pricey beauties; One dealer told us that there will be only 40,000 1-Series shipped to the US this year.
We are fans of BMW for the most part, but its snooty marketing is wearing us out. (As we have noted before, in the interest of full disclosure, we are a two-BMW family here.)
BMW seems to feel that when it arrives with a car, everyone cares and no one even dare look at a Mercedes or, God forbid, an Audi. We love Audi's idea of redefining luxury in order to take it out of the country club snobbery arena and into the hipster lounge. Who would mind pulling up to the tavern in their A6, popping back a couple of drafts and moving on? Doesn't feel quite as right in a 3-Series.
We should also look at BMW’s tenuous grasp on 2nd place in the luxe category, behind Lexus, whom no one is catching any time soon.
BMW sales in Q1 were down 13.4%, with Mercedes up 2.9% and behind BMW by 709 sales. Mercedes has trailed BMW in sales for years, finishing behind by 42,000 vehicles as recently as 2005. Stronger marketing, a more varied lineup and better quality ratings have brought Mercedes within striking distance of BMW, and this could well be the year it moves into the #2 spot.

While we're here, the notion of allocating more ad bucks to the Web is hardly significant. The new Dodge Journey campaign will put 29% of its adspend into Web-based platforms, trumping its previous high of 24% for the Jeep Liberty. And recall when Pontiac in 2006 opted to launch its G5 online exclusively. What a bust – the car sold 27,928 last year. We’re pretty sure a mix is a good idea.