IMD-5-0727 © 2007
Kazuo; Ichijo, Atul, Pahwa
In 2006; for the seventh straight year; Lexus was the biggest selling brand of luxury cars in the US. But in Europe; Lexus was successful having documented revenues of just over 20,000 automobiles per annum by 2003. Management recognized that it had to create not only chase after the market leaders like Mercedes Benz; its own tradition; BMW; and Audi —and therefore conform to the European notion of extravagance. A market examination pointed to that just over 1 in 20 luxury car buyers in the Europe perceived Lexus to be a luxury automotive product. It was clear the American success convention of size; relaxation; and dependability would have to be augmented by the European demands of focus on brand and detail tradition. Learning objectives: To discuss initiation across service; merchandise; and advertising sections while establishing a brand new product in the market.
Toyota Motor Corporation Building The Lexus Brand In Europe Case SolutionSubjects: Innovation; Automotive; Product launch; Marketing; Luxury brand
Settings: > 21 billion Yen; Automotive; Europe; 2006
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