Lexus is now having a difficult time with their domestic sale. It is already 3 years passing since Toyota has launched Lexus in Japan, Lexus is still no match for foreign brands. Here, “foreign” means “German” such as Mercedes-Benz, BMW, and Audi.
Like Koreans, Japanese seems to have a negative impression or prejudice on their home-made cars. In the article, one interviewee said “If you ask me whether I'd buy Lexus, the answer is no. Foreign brands have more individuality." He said like this because Lexus is too Japanese for his taste.
80 percent of Lexus users were Toyata drivers. Only 5 percent came from Mercedes or BMW. This statistical data shows there are no high opinion of Japanese luxury car maker. To Japanese, Japan made car is suitable for a mid-low class car, not a luxury class. Germans are suitable for expensive, high brand value car.
In this situation, Lexus’ first step to breakthrough this problem is “positioning.” Lexus got into the luxury car market so late, it must perform an aggressive strategy. The strategy Lexus have done before is useless. Because they had no regard for Japanese’s preconception.
First of all, Lexus should investigate the “5 percent” customers who came from Germans. After analyze them accurately, Lexus could have user’s attributions and characteristics. When they figures out the these “core customer’s” most important kernel, they can start positioning their brand image to the consumer properly.
20400520 Jeon Keong Won
reference: http://www.businessweek.com/magazine/content/08_13/b4077072420049.htm?chan=rss_topStories_ssi_5
Like Koreans, Japanese seems to have a negative impression or prejudice on their home-made cars. In the article, one interviewee said “If you ask me whether I'd buy Lexus, the answer is no. Foreign brands have more individuality." He said like this because Lexus is too Japanese for his taste.
80 percent of Lexus users were Toyata drivers. Only 5 percent came from Mercedes or BMW. This statistical data shows there are no high opinion of Japanese luxury car maker. To Japanese, Japan made car is suitable for a mid-low class car, not a luxury class. Germans are suitable for expensive, high brand value car.
In this situation, Lexus’ first step to breakthrough this problem is “positioning.” Lexus got into the luxury car market so late, it must perform an aggressive strategy. The strategy Lexus have done before is useless. Because they had no regard for Japanese’s preconception.
First of all, Lexus should investigate the “5 percent” customers who came from Germans. After analyze them accurately, Lexus could have user’s attributions and characteristics. When they figures out the these “core customer’s” most important kernel, they can start positioning their brand image to the consumer properly.
20400520 Jeon Keong Won
reference: http://www.businessweek.com/magazine/content/08_13/b4077072420049.htm?chan=rss_topStories_ssi_5
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