Marketing in Action Case- Lexus

by Alysha Creasy, June 2014

900 words

3 pages


Real Choices at Lexus

«For more than two decades, Lexus has redefined the meaning of luxury driving. It’s a story – and a journey – that has no end» (Source 1).

The main decision that Lexus is facing now is the possible change of their attitude to the customer: «has Lexus stepped away from its focus on consumer needs? » (Source 3). This is a very important issue for the company, as the whole success of Lexus intended to highlight the needs and requirements of customers, and the slightest discrepancy affects sales. This can be seen in the model 2007 Lexus LS 460 sedan. In this case we can say that the producers succumbed to the impact of new frills, ie to the creation of unnecessary features in the car, which only increases the cost, but not usability and convenience.

To understand the problem it is necessary to analyze the origins, namely the creation in LS 460 Advanced Parking Guidance System, which helps in parallel parking. But, at practice, «it must have a parking space considerably (about six feet) longer than the car so it isn’t useful in those tight city spots, and the system doesn’t work on downward inclines» (Source 3). The main factors that influenced the situation – an insufficient study of the new system in the car and of consumers needs.

The alternative in this case can be reviewed pricing for this model and an effective advertising (paying consumers’ attention to other features of the vehicle).

After studying the history and development of Lexus, can be traced incredible work that the employees of the company have done, especially in market research. Up to diving into this environment of luxury, because it is the only way you can determine what a man from this society wants and what he expects from the car. «We believe the programme is the only one of its kind to be offered by a prestige manufacturer and that it will yield important benefits in helping us develop even better and more efficient service to our customers» (Source 2). This approach helped Lexus in short term to conquer automotive segment of the worldwide market.

World-leading customer satisfaction, meticulous design, and engineering innovation were, by now, Lexus hallmarks, and rising global sales reflected that.

The Luxury of Lexus is different. At Lexus their aim is to be the benchmark of Progressive Luxury - measured not by the highest sales volume or market share, but by winning the hearts and minds of individuals. Their vision is not about being the largest, but about being the most special.

«Lexus will treat each customer as we would a guest in our home» (Source 4).

After studying this case study I can recommend Lexus do not change their basic principles, which have helped it to get such a success. I think the car - is like a good wine, it absorbs new ideas, discoveries, while not changing its main ingredients and tastes. And Lexus - is a brand that has established itself as a part of …

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