Scribd
Upload
146 views2 pages

Lexus Case - Emotional Price

Lexus struggled to gain traction in Europe's emotionally driven luxury car market despite its success in the more rational US market. While Lexus offered competitive quality and lower prices than other luxury brands, these rational factors were less influential than emotional connections with European buyers. To improve its performance, Lexus needs to better understand European customers' emotional needs and desires for luxury cars through market research and reformulate its pricing strategy to account for the emotional value customers place on luxury brands. The company must also strengthen its brand image and awareness in Europe to compete effectively against established luxury marques.

Uploaded by

Anonymous dUZFpCzL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
146 views2 pages

Lexus Case - Emotional Price

Lexus struggled to gain traction in Europe's emotionally driven luxury car market despite its success in the more rational US market. While Lexus offered competitive quality and lower prices than other luxury brands, these rational factors were less influential than emotional connections with European buyers. To improve its performance, Lexus needs to better understand European customers' emotional needs and desires for luxury cars through market research and reformulate its pricing strategy to account for the emotional value customers place on luxury brands. The company must also strengthen its brand image and awareness in Europe to compete effectively against established luxury marques.

Uploaded by

Anonymous dUZFpCzL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

Lexus Case - Emotional Price

1. 1. LEXUS &EMOTIONAL PRICECase study on how Lexus conquered United States rational
marketwhile struggling in Europe emotionally driven market.
2. 2. Lexus & Emotional Price SOMETHING ABOUT LEXUS The Relentless Pursuit of
PerfectionLexus is the luxury vehicle division of Japanese Since the 2000s, Lexus has
increased sales outside itsautomaker Toyota Motor Corporation. First largest market in the
United States through anintroduced in 1989 in the United States, Lexus is now ongoing
global expansion. The division inauguratedsold globally and has become Japans largest-
selling dealerships in Japans domestic market in 2005,make of premium cars. The Lexus
marque is becoming the first Japanese premium car marque tomarketed in over 70 countries
and territories launch in its country of origin. Further debuts inworldwide, and has ranked
among the ten largest Southeast Asia, Latin America, and other exportJapanese global
brands in market value. Its world regions have since followed.headquarters are located in
Toyota City, Japan, with The divisions lineup has also been expanded tomajor operational
centers in Brussels, Belgium, and reflect regional specifications in model andTorrance,
California, United States. powertrain configurations.Lexus originated from a clandestine
flagship sedanproject, code-named F1, which began in 1983 andculminated in the launch of
the original Lexus LS in1989. 1 of 13
3. 3. Lexus & Emotional Price WHAT HAPPENED WITH LEXUS..?Lexus strategy in the first
place was offering luxury carsin a lower price than the other luxury cars even it
hadcompetitive qualities to compete with them.This strategy worked well in United States
rationalmarket, but once it didnt in Europe emotionally drivenmarket.Emotional factor
affected its sales more than the lowerprice offered even so it had qualities. 2 of 13
4. 4. Lexus & Emotional Price LEXUS STRENGTHS Has competitive quality compared to
existing luxury cars A division of Japanese automaker Toyota Motor Corporation, strong in
technology and experienced Competitive price for United States rational market
characteristics 3 of 13
5. 5. Lexus & Emotional Price LEXUS WEAKNESSES Inexperienced new-comer in luxury car
industry Low brand-awareness Need improvement on their suspension and handling
Inappropriate pricing strategy over Europe emotionally driven market 4 of 13
6. 6. Lexus & Emotional Price LEXUS OPPORTUNITIES Strong Toyota fan-base
Opportunities to push market penetration and market development Awards received 5 of 13
7. 7. Lexus & Emotional Price LEXUS THREATS Unstable economic situation Perception over
car price in Europe market Increasing intensity of rivalry over luxury car industry 6 of 13
8. 8. Lexus & Emotional Price SWOT Analysiscan be very subjective..!!Use it as a guide and
not as a prescription.. 7 of 13
9. 9. Lexus & Emotional Price OUR SOLUTIONS Capitalize on strengths Overcome or
minimize weaknesses Take advantage of some new opportunities Respond to the threats 8
of 13
10. 10. Lexus & Emotional PriceSWOT MATRIX 9 of 13
11. 11. Lexus & Emotional Price Capitalize on strengths Continuously improving product quality
over competitors products Toyota is a well-known automaker that has strong technology
knowledge, technically experienced, environmently safe, reliable, durable, convenient
Propose a different value to rational customer and emotionally driven customer 10 of 13
12. 12. Lexus & Emotional Price Overcome or minimize weaknesses Conducting marketing
research that leads to fulfill customers needs, moreover their wants and desires over a
luxury car Developing strong distribution channel Working on brand awareness and brand
equity Continuously improving car comforts and its technical quality Reformulate pricing
strategy, emotional pricing plays a major role in calculating the value of luxury car because
the appeal of such car is highly emotional. 11 of 13
13. 13. Lexus & Emotional Price Take advantage of some new opportunities Maintain Toyota
fan-base Push market penetration by gaining competitors customers Gaining new
customers that hadnt have luxury car before through market development Capitalize awards
received as a competitive advantage empowering brand building 12 of 13
14. 14. Lexus & Emotional Price Respond to the threats Continuously seeking the most efficient
way in terms of product cost Strengthening brand image as a luxury car Sustainable
competitive advantage through innovation 13 of 13
d

You might also like