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C. F. Martin makes high-end acoustic guitars with good woods. It apparently has come out with a mid-priced model which contains plywoods and laminates, leading a purist to argue that this is the death of that brand.
I will merely state that taking a high-end trademark down market for a ‘budget’ line, is ‘tricky’ and leave the commentary to those in branding. The CEO of C.F. Martin gave an interview in 2003 and discussed this issue in passing.