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Lexus Imparting Value To Luxury and Luxury To Value 1203351732435218 3
Lexus Imparting Value To Luxury and Luxury To Value 1203351732435218 3
Lexus Imparting Value To Luxury and Luxury To Value 1203351732435218 3
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Md. Faizur rahman
BBA –MBA
Barun singh
Alham zaidy
CASE SUMMARY
In the 1980s, Toyota developed a concept of their new car
Lexus that was destined to be success based on a large and
affluent market for cars with exceptional performance. However,
the market was unwilling to pay the expensive price that
Mercedes charged for their kind. Toyota targeted this market &
introduced the Lexus in 1989 along with clever advertising. Lexus
Current Presenter
included with all the features that Mercedes had but in addition
Toyota focused on the performance & stability of the car. As
success continued, Lexus raised its price but unexpectedly it
didn’t work well. New advertising Campaign was then involved to
gain emotional response toward Lexus. Lexus sponsored a “New
World of Luxury” sweepstakes on the TiVo promotional page.
in durability
in retention of
customers
in customer
satisfaction
in selling
luxury brand
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`
Questions
1 • Describe the management decision problem facing Lexus as
TO
it seeks to fight competition from other luxury car
manufacturers, such as Mercedes, BMW, and Jaguar, as well
as competition from “near luxury” autos like the Nissan
Maxima and the Mazda Millennia.
BE
3 • Develop a graphical model explaining the consumer choice
. process for luxury cars.
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Management Decision Problem
Asks what
the decision Action Focuses on
maker Oriented symptoms
needs to do
Asks what
information Focuses on
is needed & Information underlying
how to Oriented cause
collect it
Specific Components:
Specific Components:
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Marketing Research Problem
Specific Components:
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Marketing Research Problem
Specific Components:
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attitude variables
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gRaphical model
Luxury Vehicle’s
Prospective Visual
Performance
Durability
Handling
Technology
Efficiency
Security
Status
Prestige
Safety
Value
Comfort
StyleImpact Characteristics/
Consumers Quality
attitudes
Reliability
Features
Prospective
consumers/
Purchasers
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HYPOTHESIS
Research PROBLEM
“To determine if customers will be loyal to Lexus in long term”
Research QUESTIONS
[ i ] Are the Lexus customers loyal to the brand?
[ ii ] Can the Lexus customer be segmented?
HYPOTHESIS
[ i ] Lexus consumers are loyal towards the brand.
[ ii ] There are distinct segments of Lexus customers
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Questions
thank
Non-Traditional Promotion &
you
Advertising approach