Lexus in Europe :

A Bumpy Ride
EMBA B 39 Marketing
Global Marketing - Group 2
● Adhi Nugroho
● Calysta Merina
● Fedora Calista
● Muhammad Samanhudi
● Kafian Dimas Triyoga
 Case Overview
Lexus as a luxury trademark brand from Toyota has conquered The United States Market
since it was released to public in 1989 and has been praised for its quality, performance
and fuel economy. Lexus’s annual sales in The United States has been risen significantly to
more than 320,000 units, it makes Lexus be the number one selling luxury brand in the
world’s largest automotive market for seven years in a row.

On the other hand, Lexus has a hard time to conquer Europe Market. Different from its
success in The U.S., Lexus’s sales in Europe is not as bright as in The U.S. with only 54,000
units sold in the region in 2007. Lexus still find a way to conquered Europe Market and
reached its targeted sales in Europe.
 Question 1 : Why did Lexus fail miserably in Europe?

First of all, Lexus tried to touch Europe market as luxury

automobile brand. However, Europe was already
dominated by domestic goliaths; BMW, Mercedes-Benz,
Audi and Porsche .
Second of all, despite being originally luxury brand, the design from Lexus was pretty
much limited. They offered one type of diesel engine whereas Europeans had shown
they prefer diesel-fueled engines.
Third, because it is designed based on the American market, the Lexus car is too
American and doesn’t appeal European market. Compared to its competitors, Lexus
design was too boxy in that year.
Question 2 : Is there still hope for Lexus to recover in Europe? Are the
changes announced in 2007 enough or is more drastic action needed?

No, it wouldn't be enough if they fully depend on 2007’s innovation of focusing

hybrid-cars. As mentioned in the market share, HEV (Hybrid) engines is still massively
beaten by Diesel and Petrol. They need more drastic action.
Question 3 : Will Nissan’s Infiniti luxury brand be more successful? Why or
Why not?

Yes, Infiniti could be considered as more successful as they offered more diverse options of cars.
Infiniti launched in Europe in 2008. Infiniti had experienced fast growth in North America and demand
for premium cars was soaring in Europe. The initial offering included the midsize sedan G37, the G37
coupe and the SUVs EX and FX.