MARKETING RESEARCH WRITEUP

Case3:- Lexus: Imparting Value to Luxury and Luxury to Value!

SUBMITTED TO:
Prof. Anil K Bhat

SUBMITTED BY:

Group – 5

Sashank Gupta - 2018H1490347P

Yash Agarwal - 2018H1490349P

Srinivas Darahaus Muddula - 2018H1490392P

Department of Management
BITS Pilani
Q1. Describe the management decision problem facing Lexus as it seeks to fight competition from other luxury
car manufacturers such as Mercedes, BMW and Jaguar as well as competition from the “near luxury” autos like
Nissan Maxima and Mazda Millennia.

Ans1 – Management decision problem faced by Lexus in this case is “What marketing strategy should they
employ which help them retain their present customers, as well as helps them to gain new customers?”.

Q2. Formulate the marketing research problem corresponding to the management decision problem you
identified in question 1.

Ans2 – The marketing research problems, “To understand the characteristics and needs of customers with age
group of 45 – 57, when they intent to purchase a luxury or near luxury car.”

Q3. Develop a graphical model explaining the customer choice process for luxury cars.

Ans3 –

Which car he/she can Evaluate the options present in

Which brand does fulfill
afford, e.g., Luxury, Near the market & what are his/her
his/her preferences?
Luxury etc. requirements

The model and brand which Checks the brand image,

satisfies him/her is what heritage and what models
he/she purchases available in the price range

Q4. Identify two research questions based on the definition of the marketing research problem and the graphical
model.

Ans4 –
 Can customers who buy Lexus can be segmented based on their income levels?
 Will the customers be loyal to the brand?
Q5. Develop at least one hypothesis for each research question you identified in question 4.

Ans5 –
 Hypothesis for Question 1: Lexus customers are loyal to brand due to the excellent features,
image it is trying to associate and customer support provided.
 Hypothesis for Question 2: What is the definition of Luxury and Near Luxury Cars in
perspective of the customers?

Q6. How would you conduct an Internet search for information on the luxury car market? Summarize the
results of your search in a report.

Ans6 –
 Internet Analysis can be done by using Google Ad words. Using this, Lexus can display the car
models on the pages which the customers visit and accordingly Lexus can determine the number
of people interested in Lexus.
 Through various other Digital Marketing media like Search Engine Marketing (SEM), Lexus can
get to know how many people are looking for the car and willing to know its features.
Accordingly, Lexus can go for new technological advancements.
 Through social media marketing, Lexus can come to know about the strategic changes of its
competitors and then can modify its own strategies.