Lexus Car

Published Date: 02 Nov 2017

In marketing, a product is anything that can be offered to a market that might satisfy a want or need, comparing this with Lexus we see that it applies to the Lexus form of production as tangible product that ideally satisfies a market's want or need.

In a meeting with top management, strategists, and engineers in August 1983, Toyota Motor Corporation Chairman, Eiji Toyoda posed a question to the group, "Can we create a luxury car to challenge the very best?" Their response was Lexus. Lexus is a segment of Toyota where their watchword is luxury; it specializes in the production of highly sophisticated luxury and executive cars.

Physical styling

Lexus uses unique term in defining their products, normally categorized by Alphabet and number nomenclature, production models are named alphanumerically using two-letter designations followed by three digits. The first letter indicates relative status in the Lexus model range (ranking) and the second letter refers to car body style or type, The three digits indicate engine displacement in liters multiplied by a factor of one hundred (e.g. 350 for a 3.5 L engine).A space is always between the letters and numbers. The same letter may be used differently depending on the model; 'S' can refer to 'sedan' or 'sport while 'X' refers to 'luxury utility vehicle' or SUV. On hybrids, the three digits refer to the combined gas-electric output. For certain models, a lower case letter placed after the alphanumeric designation indicates power plant type ('h' for hybrid, 'd' for diesel), while capital letter(s) placed at the end indicates a class subtype (e.g. 'L' for long-wheelbase, 'C' for coupe, 'AWD' for all-wheel drive). On F marque models, the two-letter designation and the letter 'F' are used with no numbers or hyphens (e.g. IS F)

Product Line-up

The Lexus lineup comprises of Sedans, Luxury Utility (SUVs), Convertibles, Hybrid and F Performance

Sedans

A sedan or saloon car is a passenger car with two rows of seats and adequate passenger space in the rear compartment for adult passengers. The vehicle usually has a separate rear trunk for luggage, The Lexus sedans comprises of the LS, ES, GS, and IS.

Lexus LS is a full-size luxury sedan, the original Lexus LS 400 is the first Lexus to be developed which has a strong sales and has won major awards since its introduction in 1989. And now has four generation since its lunch in 1989.

Lexus ES is a mid-size luxury sedan sold since 1989, it looks lot like the Toyota Camry model, five generations of this model has been produced till date with an emphasis on its interior amenities, quietness, and a smooth ride.

Lexus GS was introduced in 1993 in the United States, Europe and some areas in Asia as series of mid-size luxury sports sedans / executive cars designed to fill the gap between the ES and LS, J.D. Power and Associates awarded the GS series the best midsize luxury car in initial quality for 2002, 2003, 2004, and 2005

Lexus IS is an entry-level luxury cars / compact executive introduced in 1999, the IS stands for Intelligent Sport, it is one of the Best-Selling Luxury Cars in USA (Dan Lienert, 2006)

SUVs

A sport utility vehicle (SUV) is a generic marketing term for a vehicle similar to a station wagon, usually equipped with four-wheel drive for on- or off-road ability, LX, RX, GX are Lexus model we can find in this category,.

Lexus LX the largest and most expensive luxury utility vehicle by Lexus, is a full-size sport utility vehicle sold since 1996 by Lexus, the first generation LX 450 was the first to enter the SUV market all based heavily on Toyota's Land Cruiser series of SUVs, the latest two generation of Lexus LX has the capacity of eight passengers also, the largest and most expensive luxury utility vehicle.

Lexus RX is a luxury crossover SUV introduced since 1998 to combine the functional characteristics of an SUV and features of a luxury sedan, Lexus RX is in it's third generation, it has been the best-selling crossover luxury SUV on the US market since its introduction and has ranked as the best-selling luxury vehicle in the United States.

Lexus GX is a mid-size luxury-type sport utility vehicle sold by Lexus since 2002 Targeted initially for the North American market, The GX exterior looks like that of Toyota Land Cruiser Prado, it is situated between the entry-level crossover RX and the full-size LX characterized as focused on blending both on-road and off-road capabilities in a single vehicle

Convertibles

A convertible is a type of automobile in which the roof can retract and fold away, converting it from an enclosed to an open-air vehicle. Lexus have many styles that are manufactured and marketed in convertible form

Lexus IS C is another body styling of the regular IS in convertible form introduced to the market On 2 October 2008, the latest IS convertible features a three-piece aluminum hardtop that can retract in 21 seconds.

Lexus SC series is a personal luxury coupe sold since 1991, for Lexus the C signifies ether coupe or convertible, the Lexus SC has a front engine, rear-wheel drive design and seating for up to four passengers which usually comes in either convertibles or sedan coupe(Two doors car).

Hybrids

A hybrid vehicle is a vehicle that uses two or more distinct power sources to power the movement of a vehicle, It is most commonly referred to as hybrid electric vehicles (HEVs), which combine an internal combustion engine and one or more electric motors, Lexus HS, RX Hybrid, GS Hybrid, and LS Hybrid falls into this category.

Lexus HS (Harmonious Sedan) is the first dedicated hybrid vehicle introduced as a new entry-level luxury sedan in 2009, and unlike other Lexus vehicles it is a front-wheel drive car in the Lexus lineup, According to division officials, the HS was produced in response to consumer interest in dedicated hybrid models.

Lexus RX hybrid is a full hybrid crossover SUV sold since 2005 which combines a V6 gasoline engine with electrical motors, This feature gave it a high recognitions as an environmentally friendly transportation, the original RX 400h became the first luxury hybrid and was named SUV of Texas at the 2005 Texas Truck Rodeo awards

Lexus GS Hybrid is the third generation of the regular GS which premiered globally for the 2006 model year comes in both V6, V8, and hybrid versions, The Lexus GS 450h was named the winner of the 2007 IF product design award from the International Forum Design group in Hannover, Germany.

Lexus LS Hybrid is a gasoline-electric hybrid version of the Lexus LS sold in major global markets like North America, Asia, and Europe. At its introduction, the LS 600h L turned the most expensive luxury vehicle produced in Japan, with a price of approximately $125,000.

F Performance are special products from Lexus combined with advanced racetrack technology, they are most time referred to as sport cars, the Lexus LFA and IS F belongs to this category of cars.

OtherProducts

Lexus have other products like "Build your Lexus" and "Future/Concept cars". As for the Build your Lexus, customers can specify on special features or attributes wanted in their car after choosing a particular model, features like Navigation System, Smog-sensing automatic recirculation mode for climate-control system, High-Intensity Discharge (HID) headlamps with Adaptive Front Lighting System (AFS), Heads-up Display, Intuitive Parking Assist and Wood- and leather-trimmed steering wheel and shift knob can be chosen.

The Future/Concept cars are concept vehicle or show vehicle made to showcase a concept, new styling, technology and more. They are most time shown at motor shows to know customer reaction to new design which may or may not be produced, an example is the 2011 Lexus CT 200h seen at the 2009 Frankfurt Motor Show which will enter production at the end of 2010, Other examples are LF-a Roadster, LF-X, LF-S, LF-C

PRODUCT POSITIONING

According to Subash Jain "Positioning refers to placing a brand in that part of the market where it will have a favorable reception compared to competing brands". There are lots of ways to differentiate a product. Lexus products can be positioned by Attributes/benefits, by price/quality, by usage or application, by users, and also by product class.

Positioning by attributes/benefit

Lexus is known for producing high quality/durable cars as the product must look "Luxury" ,these attributes make Lexus product attractive to the customers, Consumer ratings firm J.D. Power and Associates has named Lexus the most reliable brand in the U.S. fourteen times(WESTLAKE VILLAGE, Calif.: 7 August 2008).

Positioning by Price/Quality

Luxury cars which is the focus of Lexus are usually expensive Lexus planned to target this segment by creating a car that matched Mercedes on the performance criteria but was priced much more reasonably, providing consumers the value they desired, and making them feel that they were smart buyers

Positioning by usage or application

Lexus have wide range of models with different functionality, LX SUV which is designed for on and off-road function is an example, the luxury sedans that feature a four seating are usually a family or executive compact cars, Lexus don't have models of pickup, Lorries of trucks as they don't belong to the luxury family.

Positioning by users

Luxury cars are usually for high class people, Lexus is faced with the challenge of aiming at younger consumers, which is as a result of price and size , the full-size luxury are usually too big for people in Europe, they prefer smaller cars with lower fuel consumption because of their small road and high fuel price.

Positioning by product class

Lexus brand is the leading super-premium car in America, Lexus known for solid luxury has for eight consecutive years been the highest ranking brand by J.D. Power and Associates, Lexus is positioned as a lower cost with high quality car compared to the European competitors.

Lexus brand strategy

Branding strategy is the marketing practice of creating a name, symbol or design that identifies and differentiates a product from other products.

The name ''Lexus'' has been attributed to the combination of the words "luxury" and "elegance'' and another theory claims it is an acronym for "luxury exports to the U.S.'', According a the group that formed the brand name Lexus called "Team One" from the Toyota advertising agency the name has no specific meaning and simply denotes a luxurious and technological image. The original Lexus logo featured a stylized "L" within an oval; according to Lexus the name simply denotes a luxurious and technological image and they also have a slogan "The Relentless Pursuit of Perfection."(Dawson, Chester (2004). Lexus: The Relentless Pursuit. NJ: Jon Wiley & Sons. ISBN 0-470821-10-8.)

People want to buy brands name and not just vehicles, in the case of Lexus qualitative analysis often play greater role than engineering because competition is carefully considered, Lexus has adopted more than 500 unique product quality standards, known as Lexus Musts, regarding all development aspects, from quantitative performance to the actual experience of quality, "Lexus Musts" are fulfilled through the realization of a concept that was first set forth by Ichiro Suzuki, chief engineer of the first Lexus which are the ''YET'' statements by harmonizing ecology with emotion

• Great high-speed handling/stability yet pleasant ride


• Fast and smooth ride yet low fuel consumption


• Super quiet yet light weight


• Great high-speed stability yet low friction (C sub d)


• Elegant styling yet great aerodynamics


• Warm yet functional interior

The above statements were formed after a market research was done by comparing some luxury brand before entering the luxury market