L E X U S= L U X U R Y T O V A L U E


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L E X U S= L U X U R Y T O V A L U E

  1. 1. LEXUS=VALUE TO LUXURY <ul><li>PRESENTED BY: </li></ul><ul><li>MONIKA SHARMA </li></ul><ul><li>NAVEEN KUMAR BB </li></ul><ul><li>NAYEEM-ZIA </li></ul>
  2. 2. Toyota introduced the LEXUS in 1989. Next to Mercedes with the headline “The first time in history that trading a $73,000 car for a $36,000 car could be considered trading up”
  3. 3. <ul><li>Toyota planned to target the luxury cars market by creating a car that matched Mercedes on the performance criteroia. </li></ul><ul><li>It was priced much more reasonably, providing consumers the value they desired & making them feel they were smart buyers. </li></ul>
  4. 4. HOW LEXUS IS BETTER THAN MERCEDES……. <ul><li>Toyota sent a 12 minute video to their potential customers. </li></ul><ul><li>Showed that when a glass of water was placed on the engine block of Mercedes & a Lexus, water shook on Mercedes while the glass remained virtually still on Lexus. </li></ul><ul><li>This brought them success. </li></ul>
  5. 5. MANAGEMENT STRATEGIES <ul><li>Decided to raise the price of their vehicle. </li></ul><ul><li>This did not work. </li></ul><ul><li>Hence they turned to a new advertising campaign to inspire an emotional response to its cars. </li></ul><ul><li>Campaign was exceptionally powerful. </li></ul>
  6. 6. COMPETITORS <ul><li>Nissan Maxima </li></ul><ul><li>Mazda Millennia </li></ul><ul><li>BMW-BMW 3 Series </li></ul><ul><li>Mercedes-Mercedes C Class </li></ul>
  7. 7. <ul><li>In the response to the competition, Lexus emphasized on NON-TRADITIONAL ads and promotion, in addition to more mainstream luxury car ads. </li></ul>
  8. 8. <ul><li>Continues to show the automobile industry and its current customers that it is building vehicles with luxury, performance and style. </li></ul><ul><li>2001- JD Power & associates ranked it no.1 in durability. </li></ul><ul><li>Again, was ranked no. 1 in retention of customers. </li></ul><ul><li>Also ranked no.1 in customer satisfaction. </li></ul>
  9. 9. CHALLLENGES <ul><li>Aiming to draw the attention of younger customers. </li></ul><ul><li>Retain the present clients. </li></ul>
  10. 10. <ul><li>To attract the younger customers, they sponsored a skiing event in Colorado, which included an invitation to all Lexus owners to spend a luxurious all-expenses paid weekend in the mountains </li></ul>
  11. 11. THANK YOU