Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Subject category: Marketing
Published by: Institute for Management Development (IMD)
Originally published in: 2007
Version: 20.06.2007
Length: 13 pages
Data source: Published sources

Abstract

In 2006, for the seventh consecutive year, Lexus was the largest selling brand of luxury cars in the US. But in Europe, Lexus was nowhere near as successful, having registered sales of just over 20,000 cars annually by 2003. Management realised that it had to establish its own heritage, not just chase after the market leaders like Mercedes Benz, BMW, and Audi - and thereby conform to the European concept of luxury. A market survey indicated that just over 1 in 20 luxury car buyers in Europe perceived Lexus to be a luxury automotive brand. It was clear that the American success formula of comfort, size, and dependability would need to be augmented by the European requirements of focus on detail and brand heritage. The case discusses the various alternatives in front of Lexus and poses the challenge for the reader as to how to proceed and make the brand a success in Europe. The learning objective is: to discuss innovation across product, service, and marketing segments while launching a new product in the marketplace.
Location:
Industry:
Size:
JPY21 billion
Other setting(s):
2006

About

Abstract

In 2006, for the seventh consecutive year, Lexus was the largest selling brand of luxury cars in the US. But in Europe, Lexus was nowhere near as successful, having registered sales of just over 20,000 cars annually by 2003. Management realised that it had to establish its own heritage, not just chase after the market leaders like Mercedes Benz, BMW, and Audi - and thereby conform to the European concept of luxury. A market survey indicated that just over 1 in 20 luxury car buyers in Europe perceived Lexus to be a luxury automotive brand. It was clear that the American success formula of comfort, size, and dependability would need to be augmented by the European requirements of focus on detail and brand heritage. The case discusses the various alternatives in front of Lexus and poses the challenge for the reader as to how to proceed and make the brand a success in Europe. The learning objective is: to discuss innovation across product, service, and marketing segments while launching a new product in the marketplace.

Settings

Location:
Industry:
Size:
JPY21 billion
Other setting(s):
2006

Related