Lexus Imparting Value To Luxury And Luxury To Value

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Slide 3: Humaira Tanzila BBA 027 08012 Amina Sultana BBA 027 08038 Md. Ashraful Alam Khan BBA 027 07989 Arifur Rahman BBA 027 08076 Kh. Ahmed Imtiaz Mahmood BBA 027 07924

Slide 4: 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, Humaira Tanzila 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.

Slide 5: in durability in retention of customers in customer satisfaction in selling luxury brand Humaira Tanzila Current Presenter `

Slide 6: 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. 2 • Formulate the marketing research problem corresponding to the management decision problem you have identified in (1). BE 3 • Develop a graphical model explaining the consumer choice process for luxury cars. 4 • Identify two research questions based on the definition of the marketing research problem and the graphical model. 5 • Develop at least one hypothesis for each research question you have identified in (4). Humaira Tanzila Current Presenter

Slide 7: Management Decision Problem Asks what the decision Action Focuses on maker Oriented symptoms needs to do The decision problems (DP) that Lexus faced are: DP-1 “Should the price of Lexus be increased?” DP-2 “Should non-traditional advertising and promotion be used?” DP-3 “Should SUV of Lexus be targeted to the younger consumers?” DP-4 “Will Lexus be able to gain new customer and retain existing clients?” Kh A Imtiaz Mahmood Current Presenter

Slide 8: Marketing Research Problem Asks what information Focuses on is needed & Information underlying how to Oriented cause collect it DP-1: “Should the price of Lexus be increased?” Marketing Research Problem Broad Statement: “To determine the price elasticity of demand and the impact on sales and profits of increased price of Lexus” Specific Components: a) What is the overall effect of price increase of Luxury vehicle? b) What is the prospective consumers’ reaction toward the increase in price? Amina Sultana Current Presenter

Slide 9: Marketing Research Problem DP-2: “Should non-traditional advertising and promotion be used?” Marketing Research Problem Broad Statement: “To determine the effectiveness of the non-traditional advertising and promotion” Specific Components: a) Are non-traditional advertising and promotional programs accepted among potential consumers? b) Are non-traditional advertising & promotion programs effective in attracting new consumers? Amina Sultana Current Presenter

Slide 10: Marketing Research Problem DP-3: “Should SUV of Lexus be targeted to the younger consumers?” Marketing Research Problem Broad Statement: “To determine the preferences and purchase intention of young customer groups” Specific Components: a) What features younger consumers look for in luxury cars? b) What are the demographic and psychographic profiles of the young consumers? Amina Sultana Current Presenter

Slide 11: Marketing Research Problem DP-4: “Will Lexus be able to gain new customer and retain existing clients?” Marketing Research Problem Broad Statement: “To determine if customers will be loyal to Lexus in long term” Specific Components: a) Who are the customers? b) What is the extent of brand loyalty of the customers to Lexus? Amina Sultana Current Presenter

Slide 12: attitude variables (1) Reliability (2) Quality (9) Handling (10) Value (3) Durability (4) Safety (11) Style (12) Comfort (5) Security (6) Performance (13) Prestige (14) Status (7) Efficiency (8) Technology And (15) Visual Impact. Arifur Rahman Current Presenter

Slide 13: gRaphical model Luxury Vehicle’s Prospectiv Performance Visual Impact Efficiency Technology Handling Durability Status Security Comfort Safety Value Style Prestige Characteristics/ e Quality attitudes Reliability Features Consumers Prospectiv e consumers/ Purchasers Arifur Rahman Current Presenter

Slide 14: 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 Md. Ashraful Alam Khan Current Presenter Questions

Slide 15: thank Non-Traditional Promotion & you Advertising approach Customer need identification Are the keys