Marketing Strategy and SWOT Analysis of Lexus
About 30 years ago, Japanese engineers decided to launch a new luxury brand – Lexus. It was born into the automotive world with the hope and promise of becoming one of the best Japanese brand cars. Today, Lexus is a high-end automobile manufacturer. The cars are safe, comfy, and have a smoother ride than the competition. Lexus vehicles are fuel-efficient, eco-friendly, and have a high resale value. This blog will do Lexus’s marketing and SWOT analysis to learn more about its path to success.
We are going to start with the Mission and Vision statements of Lexus.
As the manufacturer of Lexus is Toyota Motors, we will analyze their Mission and Vision Statements.
Mission statement:
The mission statement is:”to make ever-better cars, to build a future where everyone has the freedom to move.” This mission statement combines the company’s stated declarations about its corporate purpose: “to create a future where everyone has the freedom to move” and “to manufacture ever-better automobiles.” Lexus’s corporate mission statement includes the following essential aspects that describe the company’s mission and goals:
Vision Statement:
The vision statement is: “The company will lead the future mobility society, enriching lives around the world with the safest and most responsible ways of moving people. We strive to exceed expectations and be rewarded with a smile through our commitment to quality, ceaseless innovation, and respect for the planet. We will meet challenging goals by engaging the talent and passion of people who believe there is always a better way“.
This vision encompasses industry leadership and the company’s many values and goals for ensuring the competitiveness of its automotive goods. The following main parts of Toyota’s corporate vision represent the company’s future strategic direction:
Now, it’s time to look at the positioning strategy of Lexus:
Lexus cars have consistently been recognized for their excellent comfort and ergonomic design.
Lexus aspires to provide the most significant premium automotive experience possible, with the human aspect at its core. A balance of form and function must be achieved within the cabin to maximize comfort and efficiency. From navigation to temperature control to entertainment, only the finest materials are utilized to provide great seats, stunning decor, and intelligent, intuitive technological features. Every aspect of the driving experience is scrutinized and fine-tuned, with the location, appearance, feel, shape, and size of every amenity taken into account for maximum comfort and efficiency.
However, the perfectionism of the company does not seem to have any limits. They always seek to create something new and more unique.
Thus, we can say that the Lexus belongs to Ruler Brand Archetype.
Desire: supremacy.
Goal: make a successful and prosperous family, business, or community.
Strategy: bring leadership into play
What we should know about the Ruler brand archetype?
Level One: a scarcity of resources, a lack of order, or harmony.
Level Two: assuming responsibility towards your own life’s circumstances.
Level Three: assuming leadership responsibilities in your family, community, company, or workplace.
Level Four: establishing yourself as a leader in your neighbourhood, profession, or society.
If your company has the following characteristics, the Ruler identity could be suitable for you:
- a high-status item that influential people use to increase their authority;
- an item that aids in the organization of people;
- a product or service that comes with a lifetime warranty;
- services that provide technical support or knowledge to help maintain or improve power;
- a body that has a regulatory or protective role to play;
- a product with a price range of moderate to high;
- a brand that wants to stand out from the crowd or is the apparent market leader;
- in a chaotic environment, a reasonably stable sector or a product that guarantees safety and predictability.
Next, we will do a SWOT Analysis of Lexus.
Strengths:
Toyota’s Brand. Toyota has long been associated with cutting-edge technology and manufacturing processes. Toyota vehicles are popular because of their steady performance and durability.
Technology from Japan. Japan has long been a trailblazer in automotive technology, and Japanese automobiles are extensively used worldwide due to their outstanding design, great dependability, and adherence to strict quality standards.
The car’s feature set is extensive. Lexus has long been associated with automobiles that provide a wide range of amenities, including cutting-edge technology, unsurpassed safety, high-end aesthetics, and great driving comfort.
Concentrate on new ideas. Toyota has long prioritized innovation, directing research in self-driving automobiles, alternative energy vehicles, and networked traffic and safety systems, to mention a few.
A diverse range of products is available. Lexus offers a wide range of vehicles, including sedans, coupes, and SUVs (Sport utility vehicles).
Weaknesses:
Late arrival on the scene. Toyota arrived late in the luxury automobile market, dominated by German and Italian companies that had already established a strong presence. Lexus had a serious flaw in this area.
Diesel engines are available in a limited number of configurations. In comparison to competitors, Lexus has a limited selection of diesel engines. There is just one petrol engine variant of the GS. The E Class and the 5 Series, two of this variant’s main competitors, have two diesel engine options: a four-cylinder and a six-cylinder.
SUVs have insufficient alternatives. While competitors such as Audi and BMW provide a variety of SUVs, the Toyota Lexus lineup just offers one SUV, which may not be enough to win the competitive race.
Branding is minimal. Even though luxury automobiles are not widely marketed in the mainstream media, a significant amount of money is spent on marketing and new debuts. Compared to industry leaders, Toyota’s Lexus ad costs are minimal, resulting in a lack of mileage and exposure.
There is a lack of enthusiasm. Luxury automobiles always offer unique and thrilling driving experiences. Contrary to popular belief, Lexus is regarded as a light vehicle with few attractive driving opportunities.
Opportunities:
In emerging economies, there is a growing demand for premium vehicles. The market for luxury automobiles is predicted to expand in emerging nations, resulting in a rapid expansion of several European car companies in these countries.
An increase in the number of wealthy individuals. There has been significant growth in spendable income in India and China. In China, for example, the number of millionaires is predicted to increase by 10% in the next two years.
Macroeconomic considerations that are favourable. In the Middle East and Asia, macroeconomic variables such as unemployment, inflation, savings, investment, and disposable income are all favourable to buying luxury automobiles.
Mechanics. Toyota has always been at the forefront of future-oriented research. Robot-driven automobiles, alternative energy vehicles, and networked traffic and safety systems are only a few important research topics.
The market for alternative and green energy vehicles. Toyota has led research on green and hybrid cars and has long been a proponent of hybrid technology. This industry is expected to develop at a rapid rate.
Threats:
Reduce the obstacles to admission. Today’s vehicle market has few substantial entry barriers, resulting in increased competitiveness.
The competition is fierce. The luxury automotive industry is fiercely competitive nowadays, with European manufacturers such as BMW, Mercedes Benz, and Audi dominating.
Costs of fuel are rising. Customers prefer alternative energy or green automobiles as petroleum prices rise.
The cost of raw materials is increasing. The price of raw materials such as steel is also rising rapidly, making pricing challenging for manufacturers.
And now let’s find out the target audience of Lexus.
To understand whom Lexus sees as their customers, we will watch one of their advertisements.
In this video, we saw the advertisement for Lexus LX. The commercial’s main idea was to show people that it absolutely doesn’t matter what type of road it has to go through for this car. The engineers have worked hard on creating all the necessary options for safe travelling by this car. It includes not only exterior features but also inside (e.g., GPS, navigators and so on).
So, basically, Lexus LX can be described as a car where cutting-edge design meets cutting-edge engineering. The beautiful appearance of the Lexus LX is complemented by a highly intense driving experience.
This car is for people who like travelling with the whole family. Whether it’s just an ordinary road or a mountainous place, they want to ensure the vehicle is safe enough for that place.
Also, they don’t like wasting their time and prefer working everywhere, even if they are travelling somewhere by car.
As we can see from the commercial, Lexus LX has all the necessary features for the Balancers ➡ audience targeted by Lexus.
Some interesting facts that we should know Balancers.
Personality and Emotions:
They like a challenging lifestyle in which they are open to new experiences and enjoy diversity. They are drawn to the numerous parts of life that it has to offer, and they will go out of their way to pursue them.
They are relatively anchored by their desire for control, even when they seek out new things in their lives. They want to be in charge of all of the resources they require. Their unpredictable and hectic existence provides them with a feeling of security and stability.
Almost any Balancer will tell you that you should always be honest to yourself. They’ve gone through a lot and don’t want to deceive themselves or anybody else. A good path ahead is, to be honest and keep accurate and grounded.
Education and Career:
They have a well-balanced demeanour, focusing both on others and on themselves. They can operate independently or as part of a group. They’ll aim to balance being inclusive in the decision-making process and making the necessary judgments when a process needs to go forward. Because of this balance, they are well-liked by their coworkers.
They prefer to work for organizations that are more socially conscious and give back to the community. This is consistent with their contemporary approach to business and their job as a parent in the grand scheme of things.
Hobbies:
They could try to do two things at once if it’s possible. They enjoy the outdoors and spend their weekends visiting national parks and other comparable locations as a family program. This provides them with some time off and a special family occasion.
They like doing something soothing and tranquil whenever they can have a guilt-free minute for themselves (which is seldom). Football is a terrific way to spend time alone with old acquaintances and companions. They relax and unwind by reading (newspapers and interesting articles) and watching television.
Media Usage:
Traditional media outlets (TV, newspapers) are primarily consumed by balancers daily. TV commercials may be beneficial if relevant to them. Still, it’s crucial to remember that they watch TV in the evenings when they’re more relaxed.
About half of the population reads newspapers every day and finds them insightful and knowledgeable. They like reading about sports and watching their favorite sport (mainly football) on television. They’re being followed by a growing number of people online.
To conclude, we analyzed Lexus’ marketing approach in depth and conducted a SWOT analysis. The target market for the firm and its capabilities, weaknesses, and threats were emphasized. I suppose you now know everything there is to know about Lexus.
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